2020 Annual Report
Leading the way
Across the board, MagMutual is outperforming the industry. As the market shifts and the healthcare environment grows more volatile, the strength, stability and focus of your healthcare liability insurance company matters. You need a strong company supporting you.
MagMutual is that company.
2020 Combined Financials1
| (DOLLARS IN THOUSANDS) | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| Gross Written Premium | $275,530 | $301,939 | $339,121 | $362,520 | $425,067 |
| Net Income before dividends and income tax | $52,781 | $61,834 | $83,865 | $56,770 | $79,039 |
| Total Loss and LAE Reserves | $523,720 | $544,725 | $577,340 | $638,475 | $777,945 |
| Capital & Surplus2 | $781,771 | $831,053 | $815,376 | $877,288 | $951,353 |
| Total Admitted Assets | $1,641,381 | $1,704,903 | $1,694,078 | $1,843,148 | $2,254,195 |
| Policyholder Financial Rewards3 | $29,856 | $31,973 | $41,907 | $40,961 | $30,668 |
1 Reflects MagMutual Holding Company combined financial statement results.
2 Proforma excluding the impacts of COPIC for 2016
3 Includes dividends, Owners Circle payouts and UpToDate subscriptions. Dividends and Owners Circle allocations are declared at the discretion of the MagMutual Board of Directors and are subject to eligibility requirements.
Despite an unusually arduous year for the healthcare industry, we grew stronger and maintained our ability to back the promise we’ve made to protect you.
Our path is clear
We always put our PolicyOwners first and support them in the challenges faced. Not only did we prove that in 2020 with our response to the global pandemic, but we continued to push ourselves to develop better, more intuitive ways to understand and manage their risks.
Because of this, we are seeing more people choosing MagMutual and more people staying. As one of the largest malpractice providers in the USA, we insure over 30,000 healthcare providers and organizations nationwide, and that number continues to grow.
NAIC data pulled from S&P Market Intelligence. MagMutual results are inclusive of MagRe and IHC. Peer group includes top 10 medical professional liability companies as listed by S&P Market intelligence listed except MagMutual.
CUMULATIVE GROWTH (2016-2020)
MagMutual Peer Group
as we remain steady in our momentum
Our expense, loss and operating ratios are outperforming the industry average – meaning we're efficiently managing our PolicyOwners' company and accurately projecting financial performance.
Our strong financials allow us to make record investments on our PolicyOwners’ behalf - ensuring we meet their needs today, while protecting their tomorrow.
and continue to stay the course
Over the past 20 years, the average indemnity payment has increased by over 50% because of claims severity. We've responded with better risk analysis, consistent financial returns and innovative measures and strategic investments that have led to prudent growth in our assets and capital & surplus. All of this helps to lessen the current environment's impact on premium and sets us apart in the industry.
ASSETS (2016-2020)
MagMutual Peer Group
SURPLUS (2016-2020)
MagMutual Peer Group
While other insurers are leaving the market, struggling or suffering downgrades, MagMutual is staying put, thriving and improving our outlook. This has given us the opportunity to go beyond expectations – rewarding healthcare providers and finding smart new ways to evaluate, mitigate and manage their risks.
We are expanding and responding faster
MagMutual has been gradually and judiciously expanding our geographic footprint, bringing exceptional products and services to healthcare providers in every state. In addition to our nationwide expansion, we’ve added more product offerings in response to our growing PolicyOwner community. With our focus squarely on you, we’re able to quickly provide support as your needs continue to change.
building on our foundation
Last year we established two important partnerships in our already strong company portfolio. We acquired West Virginia Mutual Insurance Company. With a similar mission to ours, WVMIC is a natural addition to the MagMutual Family of Companies. We also established a new relationship with CAPAssurance, which strengthens our growing national presence and provides a stronger reputation in our western states.
and innovating towards a better future
MagMutual is working to help PolicyOwners overcome the challenges of their environment. Our ground-breaking approaches to reducing risk, helping to pick the right protection and improving the chances of favorable claims outcomes, empowers PolicyOwners while positively affecting patient outcomes and insurance premium.
Putting our PolicyOwners first
Our exceptional performance is evident in every aspect of our financials, but, perhaps the most impactful measurement of our fortitude, is the consistent, industry-leading dividends we have returned to PolicyOwners year-after-year. Our record shows a 22-year history of rewarding our PolicyOwners for the success of their company, 14 years in a row of payouts and over $315 million returned since inception.
$30.7M
Financial rewards returned in 2020
$175.4M
Financial rewards returned
over the past 5 years
$315M+
Financial rewards
returned since inception
A Excellent
AM BEST RATING
A rating maintained for the past 22 years
DIVIDENDS - 5 YEAR AVERAGE (2016-2020)
MagMutual MPL Peer Group*
*MPL Peer Group Dividend pulled from AM Best Market Segment Report
In every way, MagMutual is leading the industry and focusing on what matters.
From our data-driven tools and methodologies, to our industry-leading benefits, comprehensive protection and incomparable strength, our focus is on you, and we'll be there when you need us.
Thank you for choosing MagMutual.