A Message from Our President and CEO

                                                                                                                                               MATT LUPINO FOR EDITING

To Our Agents and Customers:

On behalf of all of the FHM team members, we hope that this message finds that you, your family members and your employees are safe and healthy.  There is no doubt that the past few months have brought about significant changes to nearly every aspect of our lives.  Perhaps more unnerving is that we do not yet know which of these changes will be temporary or which changes will be more permanent in nature.  Amidst all of this change, there is one thing that has not changed, FHM’s commitment to providing our customers and their agents with the great service they deserve.

In the early days of the COVID-19 crisis, FHM shifted to a remote service model that would allow for uninterrupted service to our customers, but also protect the health and safety of our team members.   The business continuity plans we originally designed for hurricanes and other disasters were easily adjusted to accommodate the challenges created by COVID-19.  Rest assured our operation is fully functional and capable of delivering the high level of claims and policy service you have come to expect from FHM.

As part of our commitment to service, over the past months, we have worked with many of our policyholders to provide them guidance on how to manage the many challenges presented by COVID-19.  The crisis continues to evolve and we will continue to provide access to important information on the COVID-19 resources section of our website.  This information can be accessed at https://www.fhmic.com/covid-19-information/.

COVID-19 impacts have been felt in virtually all sectors of the economy including the insurance industry.  As most of you know, FHM has a long history of service to the hospitality industry.  There is no doubt that no industry has suffered more during the COVID-19 crisis than the hospitality industry.  The downturn in economic activity has reduced payrolls which in turn has reduced workers’ compensation premiums.  Offsetting the reduction in premiums is a diminished number of newly reported claims.  It is unclear exactly what the cumulative effect of all of these impacts will be on our economy and the insurance industry as a whole.

You should know that FHM Insurance has the capital strength to weather the COVID-19 crisis.   In the past week, A.M. Best has affirmed the strength of FHM’s capital position by updating their calculation of FHM’s BCAR (Best’s Capital Adequacy Ratio) score.  As of 12/31/2019 FHM Insurance Company’s Var 99.6 BCAR score is 48.9 indicating that Best’s current assessment as to the adequacy of our capital position continues to place FHM in their “Strongest” category.  I have pulled a chart from A.M. Best’s website which shows Best’s assessment categories for a company’s VaR 99.6 BCAR score. You will note that a score greater than 25 generates the “Strongest” assessment.

Source: http://www3.ambest.com/ambv/ratingmethodology/OpenPDF.aspx?rc=197686

Simply put, FHM Insurance Company is in an excellent position to meet its financial obligations.

We continue to value your ongoing support and belief in FHM. I wanted to personally reach out to you to make sure you had this important information so that you can remain confident in your choice of FHM to serve your clients. Please share this with your staff as you see fit.

I commit to you that we will continue to work very hard to provide the high level of service that you have come to expect from FHM. It is after all “Our Policy To Do More”.

If you have any questions regarding any of this material, please feel free to contact me.

With sincere appreciation,

Matthew J. Lupino, CPCU
President and Chief Executive Officer

Jacksonville 904-854-2777
Orlando 407-373-6247
Mobile 904-463-3234

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