Financial Highlights
| For the year ended December 31, 2008 | |
| (in thousands) | |
| Gross premiums written | $768,319 |
| Gross premiums earned | $765,477 |
| Net premiums earned | $755,954 |
| Net investment income | $37,460 |
| Other income | $112 |
| Claim benefits paid and incurred | $489,916 |
| Underwriting expense | $192,085 |
| Dividends to policyholders | $166,239 |
| Provision for uncollectible premiums | $475 |
| Net loss | ($55,189) |
| At December 31, 2008 | |
| (in thousands, except number of policyholders and employees covered) | |
| Admitted assets | $3,403,558 |
| Liabilities | $2,478,669 |
| Policyholders’ surplus | $924,889 |
| Number of policies in force | 47,947 |
| Number of employees covered on policies in force | 924,545 |
| Key indicators, year ended December 31, 2008 | |
| Incurred loss ratio * | 64.0% |
| Statutory combined ratio | 90.2% |
| Combined ratio including dividends | 112.1% |
| Premiums written to surplus ratio | 0.83:1 |
| *Ratio calculated as a percentage of gross premiums earned |
Note: Previously, Texas Mutual produced financial statements on both a Generally Accepted Accounting Principles (GAAP) basis and on a Statutory Accounting Principles (STAT) basis. In order to avoid confusion and to facilitate better comparability, the Company has chosen to publish only financial statements based on Statutory Accounting Principles, which are used by all insurance companies.
The enclosed financial report presents the Company’s financial position and results of operations for 2008 and 2007, prepared in accordance with Statutory Accounting Principles. Statutory financial statements for years earlier than 2007 are available upon request.