BRAND NEW ENERGY.
SAME BIG HEART.
ANNUAL REPORT 2015
1635 West National Avenue • Milwaukee, Wisconsin 53204
414/383-1234 • 800/837-7833
badgermutual.com
PRESIDENT/CEO
(31 years of service)
Since 1887, Badger Mutual has been providing quality
insurance and superior customer service. As a mutual
insurance company, we value the relationships we have
with our policyholders and agents.
Our employees possess qualities that make our agents
want to work with us. They genuinely care about our
agents, insureds, community, and each other. Our
employees’ hearts have always been big, demonstrated
by our longtime relationships with our independent
agency force, our insureds, and our community partners.
2015 was a year of re-energizing—we’re using this energy
to make the best decisions for our company, agents,
insureds, and employees. We launched a new logo and
tagline, continued hiring recent college graduates, began
the programming of a new technology system, and
introduced several new underwriting initiatives. There’s an
entirely new vigor and liveliness that streams through our
office. Our level of teamwork, accountability, dedication,
and enthusiasm is infectious—and why we’ve been able
to establish and genuinely enjoy the strong relationships
we have with everyone who does business with us.
From NOVICE TO SEASONED
GARDENERS
, employee
volunteers plant flowers on our
properties and TAKE A WEEKLY
TURN
picking up debris. I’ve seen
MANY CHANGES THROUGH
THE YEARS
and clearly we’re
ENERGIZED BY NEW
EMPLOYEES
who are eager to
learn, and
OLDER EMPLOYEES
WHO EMBRACE CHANGE
.
t
LAURA MICHNA
Assistant VP of Administration
(13 years of service)
COMMITTEE MEMBERS PICTURED (L-R): Guadalupe Magana, Daliborka Kojic, Patty Allender,
Chris Klemens, Diana Kirk, Andy Steeno, Julie Bender, Laura Michna
COMMITTEE MEMBERS NOT PICTURED: Cassandra Kirk, Pam Heidenreich, Anna Bruders, Mark Zierer
THE GREEN TEAM
INFORMATION TECHNOLOGY & MARKETING
BRAND NEW ENERGY.
DAVID M. KANE
I LOVE WORKING for Badger Mutual
thanks to my coworkers and our office
environment—and we have a BRAND
NEW HEALTH CLINIC here on-site.
t
GUADALUPE MAGANA, Accounts
(8 years of service)
To me, THE THEME means that we’ve
made several changes recently to make us a
BETTER COMPANY, which allows us to
better meet the needs of customers. We are
MOVING IN THE RIGHT DIRECTION.
t
JENNIFER ZUBEK, Receptionist
(15 years of service)
“BRAND NEW ENERGY, SAME BIG
HEART” says we’re a 125-year-old plus company
CONTINUING TO COMPETE for business
with all types of other carriers—we ADAPT to
what consumers and agents want and need.
t
CHRISTOPHER KLEMENS, Senior Claims Examiner
(5 years of service)
BOARD OF DIRECTORS
(L-R)
COMMERCIAL LINES
Thomas A. Kaupp, President
Image Makers Advertising, Inc.
Bartley L. Munson, Actuarial Consultant
Munson & Associates
Seated: Stuart H. Warrington
Retired Insurance Systems Executive
Vincent P. Lyles, President/CEO
Boys & Girls Clubs of Greater Milwaukee
John R. Linscott Jr., M.D.
Board Certified Family Medicine
David M. Kane, President/CEO
Badger Mutual Insurance Co.
D. Lisa Graff, Retired Corporate Counsel
Dematic Corp.
Steven C. Klima, CPA
Financial Consultant
David L. Springob, Retired Chairman/CEO
Catholic Family Life Insurance
Seated: Robert W. Smith, Retired Asst.
Corp. Controller, Johnson Controls, Inc.
Roy R. Bubeck, Retired Chairman/CEO
Badger Mutual Insurance Co.
Santino R. Cicero, Retired Senior VP
BMO Harris Bank
PERSONAL LINES
CLAIMS
CLAIMS
OFFICERS
(L-R)
Dan Nigro, Vice President IT/Marketing and Secretary
Laura Michna, Assistant Vice President Administration
Darrin Groendal, Vice President/Chief Financial Officer
David Kane, President/CEO
Karen Kirk, Vice President Human Resources
Kathy Bubeck, Vice President Claims
Brian Wiza, Vice President Underwriting
Top reasons consumers and businesses CHOOSE
BADGER MUTUAL
are our competitive rates
and overall customer SERVICE—including
direct communtication with a REAL PERSON
FROM THE FIRST CALL.
t
JAMES KAUFMAN, Retired VP of Administration
(20 years of service)
I am still impressed by the CLOSE-KNIT
FAMILY atmosphere at Badger Mutual. The theme
says we CARE FOR OUR CLIENTS THAT
SAME WAY—the way we always have—but with
NEW FACES AND POSITIVE CHANGES.
t
TYLER PROTZ, Account Underwriter
(1 year of service)
One of the top reasons our customers choose
Badger Mutual Insurance? They know that they’ll
get the coverage they need from a local company
that
GOES ABOVE AND BEYOND
STANDARD CUSTOMER SERVICE.
t
JEFF SLADKY, President/Owner,
Capital Insurance Agency of WI Inc
Brookfield, WI (since 1977)
Sean Costello, Regional Manager (IL, MI, IA, UT, ID, and WY)
Jim Serpe, President Serpe Insurance Agency (Chicago, IL)
Mike Haeger, Regional Manager (Milwaukee & Green Bay, WI and MN)
Brian MacGillis, President MacGillis Insurance Agency Inc. (Fredonia, WI)
Brian Baker, Owner Red Rock Insurance Agency (Las Vegas, NV)
Joe Eden, Partner Giese & Eden Insurance Group LLC (Flagstaff, AZ)
Jeff Limberg, Regional Manager (AZ and NV)
Bruce Barlow, President Barlow Insurance Agency (Bloomer, WI)
David Wade, Regional Manager (Northern Wisconsin)
BMI MEETS WEST/MIDWEST: PARTNERSHIPS PERFECTLY ALIGNED FOR PERSONAL CUSTOMER CARE
TOP REASONS CUSTOMERS CHOOSE BADGER MUTUALBRAND NEW ENERGY?
Badger Mutual is a ROCK-SOLID COMPANY—
with people who are there when you need them
most. Their reps are awesome and their
underwriters are a great bunch to work with as
well.
YOU CAN’T PUT A PRICE ON THE
COVERAGE OPTIONS AND PLANS THEY
GIVE TO ME AND MY AGENCY.
They are
loyal to their customers and agents, and they’re
not into ‘price gouging’ our clients. Thank you,
Badger Mutual, for all you do for the clients,
the agents, and our communities.
t
DAVID EILER, Owner, Eiler Insurance Agency LLC
Fairwater, WI (since 1998)
I have always thought of Badger Mutual as having
energy. And as for the BIG HEART—no question.
Having been with Badger Mutual for seven years,
I have always thought they have been very supportive
and willing to work with my agency. With very
competitive prices and quick responses on quotes,
I can get back to a potential customer and show
him our
DEDICATION TO CUSTOMER
SERVICE
. These are only a few of the many
ways that Badger Mutual Insurance continues to help
not only my agency, but all of Badger’s agencies.
t
MICHAEL ANDERSON, President, MEA Insurance Agency
Finland, MN (since 2008)
COST, EASE, SPEED, PEACE OF MIND
that everything is covered, and security of personal data.
t
STEVE LADD, President, Ladd Agency
Menomonee Falls, WI (since 1993)
It all STARTS WITH OUR AGENCY FORCE.
They are the frontline professionals who communicate
the BMI brand message: WE ARE A
FINANCIALLY SECURE INSURANCE
COMPANY WITH HOMETOWN VALUES.
t
BRIAN WIZA, Vice President Underwriting
(corporate, 13 years of service)
Badger Mutual is STEADFASTLY COMMITTED
TO THE INDEPENDENT AGENT
. At all levels,
executives and staff are approachable and
considerate. On those rare occasions when justified
change of direction is needed, Badger Mutual
communicates clearly with its agents, working in
true partnership.
IN AN INDUSTRY WHERE
COMPETITORS ARE GROWING EVER
MORE IMPERSONAL, BADGER MUTUAL
STANDS OUT FROM THE COMPETITION.
It is a privilege for us to represent Badger Mutual.
t
WES THEW, President, Flagstaff Insurance Inc
Flagstaff, AZ (since 2007)
Make-A-Wish has provided nearly 5,000
Wisconsin children and families with
life-threatening medical conditions the
gift of a wish. In the 2015 Walk & Run for
Wishes, our company raised over $11,500
to help grant wishes for two more
children—this brings our grand total
to 67 wishes granted!
The Sixteenth Street Community Health
Center offers quality healthcare and
health education to underserved patients
throughout Greater Milwaukee. In 2015,
we received the Community Impact
Award for our participation in the Girls
on the Run event which promotes
self-esteem and positive thinking.
United Way is a nonprofit organization
that unites partners from various
organizations to work toward common
goals to better the community. Our
employees donated $23,042.90 to
the United Way campaign in 2015—
the company matched that for a total
donation of $46,085.80.
At Badger Mutual, I see a company that
does more than make a donation. We’re
a CIVIC LEADER in Milwaukee,
dedicated to programs that benefit
the city. Our business is
EQUALLY
COMMITTED to doing what’s best
for the city—and those who trust us
with their property and security.
t
JOHN GAW, Claims Consultant
(6 years of service)
ACCOUNTING
Boys & Girls Clubs of Greater Milwaukee
is the largest youth-serving agency in
the city, promoting academic and career
success for every member. Each year, our
company wraps and donates Christmas
gifts for those in need. We collected
over 120 gifts in 2015—and Santa and
Mrs. Claus even made an appearance.
The United Community Center (UCC)
provides personal development pro-
grams to area residents of all races
and ages in education, cultural arts,
recreation, community development,
and health and human services. We
partner with UCC to honor outstanding
achievements by the community’s youth.
This Badger Mutual Insurance Women’s
Amateur Golf Tournament is one of
the largest in our area and benefits the
nonprofit social service agency My
Home, Your Home and the Sojourner
Family Peace Center, a nonprofit
provider of domestic violence
prevention.
Why did I choose to work at Badger Mutual?
The
CULTURE and atmosphere made it
a clear decision. HR made me feel very
comfortable, reassuring me that I would
be working with a GOOD-NATURED
COMPANY. Dedication to community
speaks to the COMPANY’S GOOD
WILL— that’s important for me.
t
DAN MCNEELY, Claims Examiner
(1 month of service)
ADMINISTRATIVE & HUMAN RESOURCES
STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31
Longtime and loyal customers and
businesses
CHOOSE US because
we have
COMPETITIVE RATES,
offer discounts, and we have a good
loss history. Staff is
EASY TO
CONTACT
, and changes and claims
are handled quickly. We are
USER-
FRIENDLY
so customers can pay
and review their accounts online.
t
RHONDA PARYS
Personal Lines Senior Account Underwriter
(19 years of service)
Premiums Written ................................................................... $98,626,959 .............$100,737,883
Change in Unearned Premiums ................................................. 270,968 ...................(398,066)
Reinsurance Ceded .................................................................... (7,671,944) ................ (7,740,968)
Premiums Earned .............................................................. $91,225,983 ............$92,598,849
Losses Incurred ........................................................................ $54,407,750 ..............$58,343,768
Loss Adjusting Expenses Incurred ........................................ 9,042,888 ................... 10,355,136
Underwriting Expenses Incurred .........................................26,059,628 .................26,262,332
Underwriting Gain (Loss) .....................................................$1,715,717 ........... ($2,362,387)
Net Investment Income ..............................................................$1,976,123 .................$4,356,074
Other Income ..................................................................................... 502,628 ...................... 545,664
Dividends to Policyholders ...........................................................(99,127) ...................... (53,925)
Federal Income Taxes ........................................................................ 54,535 ..........................54,014
Net Gain (Loss) .................................................................. $4,040,808 ................$2,431,412
Net Premium/Surplus Ratio .................................................................. 1.42 ................................1.50
Percentage Growth in Premiums Written ................................. -2.25% ..............................1.15%
STATEMENT OF INCOME 2015 2014
OPERATING RESULTS
Cash & Short-Term Securities ................$11,577,246 ..........$18,170,745
Bonds (Amortized Cost) ......................... 117,423,563 ........ 109,183,445
Stocks (Market Value) ..................................9,594,158 ............6,326,586
Mortgage Loans ............................................... 2,110,395 ............ 2,867,506
Real Estate ...........................................................7,151,449 .............. 7,636,174
Accrued Investment Income .........................701,010 ................876,985
Premium Balances ......................................14,806,743 ...........14,953,387
Company Owned
Life Insurance .................................................4,353,541 .............4,198,564
Deferred Taxes/
Federal Taxes Receivable ...................... 6,064,526 .............3,777,544
Loss Recoverable
from Reinsurers ..................................................48,482 ................103,409
Computer Hardware ........................................233,536 ................... 57,355
Total Assets .........................................$174,064,648 ..... $168,151,700
ASSETS 2015 2014
Reserves for Losses
& Adjusting Expenses ..........................$54,673,878 ........ $53,667,513
Reserve for Unearned Premiums .........41,906,528 ...........42,177,496
Reserve for General Expenses .............. 4,609,600 ............5,058,892
Reserve for Premiums
Paid in Advance .............................................1,316,207 .............. 1,280,199
Reinsurance Payable ........................................ 845,919 .............1,080,876
Reserve for Federal
Income Taxes ................................................................. 0 .................. 53,984
Reserve for Pension Benefits .................... 5,910,722 ............. 2,236,651
Reserve for Other Liabilities ........................646,669 ................690,247
Policyholder Surplus ....................................64,155,125 ..........61,905,842
Total Liabilities & Surplus ................$174,064,648 ..... $168,151,700
LIABILITIES & SURPLUS 2015 2014
SAME BIG HEART.
It seems like yesterday that I started working at
Badger Mutual Insurance Company. And it’s true—
time flies when you enjoy what you’re doing. A
special part of my journey has been the relationships
that I have made, which have made the past 29 years
of my career so incredibly rewarding.
RETIRED CHAIRMAN/CEO
Chairman/CEO 2012-2015 and President 1998-2012
(29 years of service)
To me,
OUR THEME means that while we continually
adapt to changes in our industry and society, the
COMPANY’S DEDICATION to its policyholders, agents,
community, and employees
REMAINS THE SAME.
t
DAVID WADE, Regional Manager (34 years of service)
ROY R. BUBECK
