Dear Policyholder Annual Report now available as a pdf.  go...

2008 continued the trend of profitability and financial stability for FHM. The combination of less severe claims experience during the year and the decrease in IBNR (Incurred But Not Reported) reserves allowed FHM to recognize $4.8 million in Net Income for the year, which increased our surplus to $53 million.

During 2008, we continued to work on diversifying our policyholder base by expanding our horizons into other states. By year end, FHM was approved to write business in South Carolina. During the first quarter 2009, FHM was also approved in North Carolina. FHM has begun writing business in South Carolina and anticipates writing business in North Carolina by mid-year. This means FHM is now licensed in Florida, Georgia, Alabama, North Carolina and South Carolina.

We are pleased to report our Georgia book of business has grown steadily since our entry into that state in 2007. Our partnership with the Restaurant Owners’ Safety Association remains strong and our efforts to increase our relationships in Georgia continue as our experience in that market grows.

In 2008, FHM continued to make significant advances in technology. We introduced a completely redesigned web site with increased information and functionality for policyholders and agents. We also introduced FHMconnect, a new web site tool that provides access to up-to-date information and reports policyholders need to effectively manage their workers’ compensation program. The new website and FHMconnect, coupled with the power of the Tropics system, mean FHM now has a solid technological base that will allow us to continue enhancing the tools available to policyholders and provide access to real-time information whenever and wherever needed.

In keeping with our commitment to enhance services to policyholders, 2008 saw the introduction of a streamlined Payroll Audit Process that consolidated the quarterly audit package to a pre-filled, one-page form. This process is now far less time consuming for policyholders and gives FHM the advantage of having a more accurate picture of a policyholder’s payroll throughout the policy period.

The end of 2008 saw us once again preparing for a rate decrease in Florida. As in years past, we responded to the anticipated rate decrease by developing a strategy to ensure we identify and capitalize on opportunities to enhance our book of business with quality accounts while maintaining our strong financial position.

The October 2008 Florida Supreme Court ruling against Mariners Health in the Murray vs. Mariners Health case, which opened up the Statute to allow attorneys to advocate on behalf of injured workers with few restrictions on fee awards, reinforced our belief that establishing a good working relationship with injured workers can help to hold the line on increases in claims costs due to attorney involvement. Our WECARxE program remains one of the major strategic advantages we provide to policyholders by focusing on establishing contact with injured workers within 24 hours of the report of an injury and maintaining open lines of communication until the case is resolved.

We appreciate your continuing trust and confidence in us, and we want you to know we stand firm in our commitment to “A Policy To Do More” as the way we do business.

Sincerely,