2009 Annual Report 2009 Annual Report : Page 15
Increasing Visibility: GrOwth full steaM ahead Partnering with leaVitt in western states When The Main Street America Group appointed independent agency network the Leavitt Group to be its exclusive representative in three new Western states – Arizona, Utah and Nevada – it envisioned great opportunities to profitability grow our company’s premium in several new markets including Las Vegas, Phoenix, Salt Lake City and Tucson. Koty-Leavitt was one of the drivers of our Western success as it generated approximately $1.8 million in Main Street America business in its first year of representing us, the most of any Arizona customer. Koty-Leavitt, incorporated in 1990 but with roots dating back to 1940, has 50 employees in its Tucson office and positions itself a generalist agency. It is one of Tucson’s largest independent agencies and wrote approximately $35 million in premium last year – 85 percent commercial lines, 15 percent personal lines. “ Our partnership works so well because we are a ‘Main Street’ writer of business and a perfect fit with Main Street America’s niche.” – Lloyd Koty y This partnership is off to a great start as our 40 new Leavitt customers generated nearly $6 million in new premium in 2009, distributing Main Street America’s full line of commercial products to its customers, including our new Main Line BOP as well as commercial auto, workers’ compensation and umbrella products. “I put a high value on being appointed as an exclusive Main Street America agent in the Tucson market,” said Lloyd Koty, principal of Koty-Leavitt Insurance. “Over all of the years I have done business, I have never had a relationship with a carrier that is exclusive. I view this as a significant competitive advantage and it is something I want to foster, grow and reward.” “We wrote four times as much new business with Main Street America in 2009 as with any other carrier we represent. Our goal is to have Main Street America get a look at every account that fits what they write, since what they write is the majority of the standard lines business that we write.” Main Street America also feels the relationship is working well and will continue to prosper. “We are very pleased with our 2009 results in the Western states and look forward to profitably growing our book of business with our Leavitt customers in 2010 and beyond,” said Doug Eden, Main Street America’s senior vice president of field operations. suCCessful integration of great lakes Casualty in MiChigan Significant results were generated during the first full year with Great Lakes Casualty Insurance Company operating as a Main Street America company. Acquiring this Michigan-domiciled carrier, in the fourth quarter of 2008, marked our initial entry into the Midwest. Profitability was the No. 1 priority for Great Lakes Casualty in 2009 and it delivered in a big way. The carrier recorded a 92.7 combined ratio. This profitable result was driven by the restructuring of its book of business through the introduction of insurance scoring, improved claims management and favorable loss severity. In May, we introduced our Personal Auto MVP multivariate product and in July, we rolled out our full line of commercial products, including Main Line BOP. We also provided our Michigan customers with our Main Street Station commercial lines policy processing system and our Main Street Connection personal lines system. In mid-2010, our Michigan customers will begin to sell Main Street America homeowners coverage to their customers with our new Homeowners MVP. This will be the first group of Main Street America agents who will be able to offer this unique product that improves segmentation through a sophisticated multivariate pricing approach. continued on next page the Main street america group 2009 annual repor t 15
Full Steam Ahead
Partnering with leaVitt in western states When The Main Street America Group appointed independent agency network the Leavitt Group to be its exclusive representative in three new Western states – Arizona, Utah and Nevada – it envisioned great opportunities to profitability grow our company’s premium in several new markets including Las Vegas, Phoenix, Salt Lake City and Tucson.
This partnership is off to a great start as our 40 new Leavitt customers generated nearly $6 million in new premium in 2009, distributing Main Street America’s full line of commercial products to its customers, including our new Main Line BOP as well as commercial auto, workers’ compensation and umbrella products.
“I put a high value on being appointed as an exclusive Main Street America agent in the Tucson market,” said Lloyd Koty, principal of Koty-Leavitt Insurance. “Over all of the years I have done business, I have never had a relationship with a carrier that is exclusive. I view this as a significant competitive advantage and it is something I want to foster, grow and reward.” Koty-Leavitt was one of the drivers of our Western success as it generated approximately $1.8 million in Main Street America business in its first year of representing us, the most of any Arizona customer. Koty-Leavitt, incorporated in 1990 but with roots dating back to 1940, has 50 employees in its Tucson office and positions itself a generalist agency.
It is one of Tucson’s largest independent agencies and wrote approximately $35 million in premium last year – 85 percent commercial lines, 15 percent personal lines.
“We wrote four times as much new business with Main Street America in 2009 as with any other carrier we represent. Our goal is to have Main Street America get a look at every account that fits what they write, since what they write is the majority of the standard lines business that we write.” Main Street America also feels the relationship is working well and will continue to prosper.
“We are very pleased with our 2009 results in the Western states and look forward to profitably growing our book of business with our Leavitt customers in 2010 and beyond,” said Doug Eden, Main Street America’s senior vice president of field operations.
SuCCessful integration of great lakes Casualty in MiChigan Significant results were generated during the first full year with Great Lakes Casualty Insurance Company operating as a Main Street America company. Acquiring this Michigan-domiciled carrier, in the fourth quarter of 2008, marked our initial entry into the Midwest.
Profitability was the No. 1 priority for Great Lakes Casualty in 2009 and it delivered in a big way. The carrier recorded a 92.7 combined ratio. This profitable result was driven by the restructuring of its book of business through the introduction of insurance scoring, improved claims management and favorable loss severity.
In May, we introduced our Personal Auto MVP multivariate product and in July, we rolled out our full line of commercial products, including Main Line BOP. We also provided our Michigan customers with our Main Street Station commercial lines policy processing system and our Main Street Connection personal lines system.
In mid-2010, our Michigan customers will begin to sell Main Street America homeowners coverage to their customers with our new Homeowners MVP. This will be the first group of Main Street America agents who will be able to offer this unique product that improves segmentation through a sophisticated multivariate pricing approach.
Midwest exPansion with grain dealers Mutual We continued to grow our Midwest presence by forming an affiliation with Indianapolisbased Grain Dealers Mutual Insurance Company that closed in November 2009.
This will enable us to enter two new states in 2010 – Indiana and Mississippi – as well as to expand operations in our shared states North Carolina, Oklahoma and Tennessee.
Grain Dealers, founded in 1902, has a strong franchise and will maintain its brand name.
A key component of the affiliation is Grain Dealers will pool its premium, losses and underwriting expenses with other Main Street America companies. Over time, Grain Dealers will gain access to our products, technology and infrastructure. We are providing management oversight to Grain Dealers.
For the long haul babe ruth hit his 500th career home run, the first academy awards ceremony took place and JCPenney became a national retailer. The year was 1929 and despite the crash of financial markets worldwide, some lucrative business deals were still being made, including a new partnership between the Main street america group and our longest appointed agency that still represents us today.
Jay byrnes, president of the byrnes agency in dayville, Conn., said since his grandfather founded the agency, much has changed about the way other carriers do business. However, one thing has remained constant with Main street america – our focus on maintaining strong relationships.
“we are a long-standing agency with a long tradition,” Jay said. “and part of that tradition and success is because of our relationship with Main street america.” Charlie Mcgill, Main street america’s field marketing representative in Connecticut, has served as the byrnes agency’s company rep for more than 20 years. He agrees the 80-year partnership has remained solid because of our commitment to the independent insurance agent and our ability to work closely with our customers.
“time and time again, customers reference the reason they do business with us is because of our people,” Charlie said.
Jay added, “we’ve always had this relationship – it is multi-generational here, as well as multi-generational there. So it’s engrained upon us that Main street america has always been an important part of our agency.”
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