CPA-focused liability insurance carrier Camico said it earned 1.44 million in net income for 2011, an increase of $495,000, or 52 percent, over the $945,0000 in net income for 2010.
The company noted that it also posted a gain of $2.2 million in policyholders’ surplus for the year ended Dec. 31, 2011.Total policyholder surplus for 2011 was $37.4 million, up 6 percent from the $35.2 million posted in 2010.
In 2011, as in every year since 1992, the number of Camico policyholders continued to grow. At year end, nearly 8,000 CPA firms nationwide were Camico policyholders, an increase of approximately 2.5 percent over the number of policyholders in 2010. The policyholder renewal rate was 92.4 percent for 2011.
“This continuous growth and high renewal rate reflects strong policyholder loyalty in response to the Camico experience—providing comprehensive risk management expertise tailored to CPA firms, meeting policyholder needs, and solving their problems,” said Camico chairman Louis J. Barbich, CPA, in a statement.
The company’s strengthened financial position resulted partly from actions taken by the company to further enhance its operating structure in 2009, and from the return to more predictable claims patterns during 2010, which continued during 2011.
The current operating structure consists of two main components: Camico Mutual Insurance Company, which has been insuring CPA firms since 1986 and continues in that role; and Camico Insurance Services, which uses strategic partnerships to provide CPA firms with a comprehensive suite of product offerings and solutions.
Camico’s loss prevention department handled more than 8,300 advice line calls in 2011. The number of incident or pre-claim advice calls has been trending downward from a high of 2,566 in 2008 to 1,900 in 2011. The four-year reduction in pre-claims calls is an indication that claims are returning to more predictable patterns in the wake of the recession.
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