Wheatland Mutual Insurance Association

Rose Boedeker

109 N. Main, P.O. Box 100

Wheatland IA 52777

Iowa Company Number: 0041

December 31, 2016 - Annual Statement

0041

DECEMBER 31, 2016

1. Ledger Assets, D ecember 31 of previous year, Total column 1, page 4 ................................

INCOME - INCREASES IN LEDGER ASSETS

PREMIUMS (1 ) (2) (3) (4)

Reinsurance Specific Net Direct Premiums Reinsurance ~~emium4~

Premiums Assumed Premiums Ceded 1+2-3=4

2. Fire .. .... .... .. .. .... .. . $ 317,440 $ $ $ 317,440

3. Windstorm .......... 267,329 267,329

4. Crop HaiL .......... ..

Homeowner 5. Assumed .......... .. XXXXXXX 6. Totals ................. . $ 584,769 $ $ $ 584,769

7. Aggregate excess loss reinsurance paid .. .. ... ....... ... .......... .............. 263343

8. Total net assess lent, premiums and fees (line 6, col. 4 - line 7 = line 8) .. ... .. ..... ........ .........

9. Net interest receiv, ,d on bonds .................................................................. 3,681

;tment of bonds 108, less 10. Increase in adju 765 . decrease in adjustment of bonds ................................. (657)

11 . Dividends receiv ~.............. .. ............................ ••.... 2

12. Interest received on bank deposits (schedule C-2, column 7) ............ .... 12.356

13. Interest received on mortgage loans (schedule D, column 6) .. .... .. .. ...... .

14. other interest... . ............................ ......... , ... ............. ............. ..................

15. Profit on sale of lVestment. ......................................... ...........................

16. Rents received" , .. , .. ,' .. , .......... , ......... , .•..•....•..•...• " .........•. , .. " ..... " ........... 9,725

17. Total income fro , investments (items 9 through 16) ............ .. .. ...... .. .. .. ..... .. ....... .... .... ......

18. Borrowed money ......... . .......... . ............................. .. .. ... ...........••... ........ . .. .

19. Premiums collec ed for other companies (less refunds) ....... .. ............ .. .. 68,785

20. Checks charged Jff .......................................... .. .......... .. ........... .. .............

21. Increase in ledge . liabilities ......................................................................

22. Underwriting exp lOse reimbursement. .... ...... ... .... ............ ...... ...... ...... .....

23. Federal income t IX refund ....... .... .......... .... ........... ............. .. .. ..................

24. Miscellaneous in :ome ... ............................. ......... .. ........ .... .......... .... .... .... 262

25. Crop Hail Contin ency Commission ................... ............ .........................

26. . ....................................... , ....... .....................................

27. Total (items 18 th rough 26) .................. ........... .. ........... .. ........................................................

28. Total income (ite ns 8, 17, and 27) ...... .................. ...... .............. ......... .. ... ........ ... ........ ... .... .. ..

29. Total assets and ncome (item 1 plus item 28) ........................................ .. .......... .. .. ...... .. .... ..

'Includes $7,800 for association's occupancy of its own buildings.

2

$ 1,171142

$ 321426

$ 25.107

$ 69,047

$ 415580

$ 1,586,722

0041

DECEMBER 31, 2016 1. Amount brought forward from line 29 page

$ 1,586722

DISBURSEMENTS - DECREASES IN LEDGER ASSETS

LOSSES (3)

Specific Reinsurance Recovered

7. Received from aggregate excess loss reinsurance .............................................................. .

8. Total of all net losses (line 6, column 4 - line 7 = line 8) .. ............. .................................. .

OPERATING EXPENSE 9. Loss Adjustment Expenses ......... .. ............ ..... ... ..... .......... ......••...... •. ••••••••••••••.•

10. Commissions ............................................................................... .................................... .

11. Advertising ........................................................................................................................ .

12. Boards, bureaus and associations ............................................... .

13. Inspection and loss prevention ................ .

14. Salaries of officers .••.••.••••.•.•••. ,

15. Expenses of officers •.••.••••••••..•••••••••••.•....•.•.••••••••••••••••••....

16. Salaries of office employees .................................................... .

17. Employee welfare ..........•...................................................................................................

18. Insurance.. .... • ••• ••••. •.•.•..• ••••••••• .• .•.. •.••..••••••.••.••••••••.••.

19. Directors' compensation ....................... .

20. Directors' expenses ................ ........... ............................. ............ .... ... ................................ .

21. Rent and rent items ........................................................... .

22. Equipment. .....................•....................

23. Printing, stationery and supplies .................................................. .

24. Postage and telephone

25. Legal and auditing .............................................................. .

26. State insurance taxes (March 1, 0 ) (June 1, 2,740 ) (August 15, 2,869 ) 27. Insurance Division licenses and fees ..

28. Payroll taxes ....... . ..... ........ .................... ... ... .. ................ .

29. All other taxes (excluding Federal income) •.••••••.•••.•.•• .• .• .•••••••••••••

30. Real estate expenses ........................................................... ... ............. ... .. .. .. ... .. ... . .. ......... .

31. Real estate taxes ............................................................................................... .

32. Interest on borrowed money ................................................... .. ............................. .

33. Miscellaneous ..................................... .

a. Annual Meeting .................................................... ............................................ . b. Donations/Contributions ....................... .. .. .. ................................................ . c. Travel and Travel Items ......................................................................................... . d. Over and Short ..................................................................................................... .

34. 35. Total operating expense (items 9 through 34) .............................. .

NON-OPERATING EXPENSE 36. Borrowed money repaid •.••••••••••••••••••••••••••••••.•.......••••••.••.•••••

37. Depreciation on real estate ....... ..... ..... .

38. Loss on sale of investments ............................................. .

39. Federal income tax Prior year, 0 Current year, o 40. Premium collections transmitted to other companies •••••••••••••

41. Commission paid agents for other companies ................................ .

42. Decrease in ledger liabilities •••••.•••••••.•••.••••••••••••••..•.•••••••.••••.•...

$

(4) Net Losses Paid

1+2-3=4'

212,961

41,693 ,

~$ 5183

95,381

5,761 3177

42.857

945 32910

13480

4,995

2,197

7,800

8793

7395 5,747 7295

5,608

100

§.Q§1

ll1l 2,456

984

1,632 1,818

60

..... .. ..........•. ~$ 2.382

57.011 9.794

171.268

266.174

43. Federal income tax penalty/interest. .................................................................................... LI =======-j 44. Total non-operating expense (items 36 through 43) ................ ......... .. . 69.187 45. Total disbursements (items 8, 35, and 44) . • . •••.•• .••••••••••••......•••...••... • , $ 506629 46. Balance - ledger assets, December 31 5t must agree with Line 22, Column 1, Page 4 •. $ 1.080.093

3

. . , . - ~~ -.. ----~ .,-.,,~ .~~- -~.-'.-,,-

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ASSETS - DECEMBER 31, 2016

(1) (2) (3) (4) (5) Non-ledger including Assets not admitted Current Year Prior Year

including excess of Net Net excess of market book over market Admitted Assets Admitted Assets

Ledger Assets (or amortized) over or amortized values (1+2-3=4) book value

1. 'Bonds (schedule A-part 1 ) .......... . $ 175,755 $ $ $ 175,755 $ 71,334

2. Stocks (schedule A-part 2) .......... . 12,243 27,591 39,834 33,868

3. Bank Balances

3.1 Subject to check(C-I). 23,191 23,191 41,516

3.2 On interest (C-2) .................. . 798,269 798,269 969,638

4. Mortgage loans (schedule D)

4.1 First liens ............................ .

4.2 Other than firs!.. ................ ..

5. Collateral loans (schedule E) .. .. .. .

6. Real estate (schedule F) ............ .. 67,349 67,349 69,732

7. Cash in office .............................. .

8. Unpaid Premiums

8.1 Due before November 1 ...... . XXXXXX XXXXXX

8.2 Due after November 1 ........ ..

9. Bills receivable .......................... .. XXXXXX XXXXXX

10. Agent's balances ............ .... ...... ..

11 . Reinsurance receivable on paid losses ..................................... .

12. Accrued interest... ..................... .. xxx XXX 4,892 4,892 4,385

13. Accrued rent due ..................... .. XXXXXX

14. Equipment and furniture .......... .. 2,276 2,276 XXXXXX XXXXXX

15. Supplies .................................... .. xxx XXX XXXXXX

16. Automobiles ............................... . xxx XXX xxx XXX

17. Cash surrender value of life ins.

18. Federal Inc. tax recoverable .....

19. Electronic data processing equipment. ................................ . 1,015 1,015 3,455

20. Service fees & misc receivables ..

21 . Prepaid Reins. & other assets .. ..

22. Totals ...................................... . $ 1,080,098 $ 32,483 $ 2,276 $ 1,110,305 $ 1,193,928

'Bonds are amortized through 12/31/16.

4

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LIABILITIES - DECEMBER 31, 2016r-, __ -----, __ -----,

1. Unpaid claims (reported) ................................ .... .......... .... ............ .. 11.169

2. Unpaid claims (incurred but not reported) ........................................ .

3. Total unpaid losses ..... .. .... ....... ........ ............................ .... ............ .. 11 .169

4. Less: reinsurance recoverable on unpaid losses ........ .. .. .................. .

5. Net unpaid claims ........................... .

6. Unpaid adjusting expenses .................................................................................. ..

7. Ceded reinsurance balances payable .................................................................... .

8. Unpaid salaries and commissions .. .

9. Borrowed money ............ .. ........ ...... ..

10. Interest due on borrowed money .. .

11. Amounts withheld for the account of others .......... .

12. Taxes payable: Real estate ....................................................... .. ......... .. ............ ..

Federal Income ... ...... .. ............. ........................ .. ............ .. .

Premium ..... .. ... ... ..

Other ......... ........................... . ..

13. Other unpaid expenses .............................................................. .. .................... .

14. Premiums collected for other companies - not remitted ........................................ .

15. Premiums received in advance .... .......... .. ........ .. .. ......... .. ........... .......................... .

16.* Unearned premium reserve ......................................... ............................ ........... ..

17. Service Fees and Employee Benefits Payable .... .. ....... .. .... .. .... ... .. ....... .. .. ... .. .... ... .

18. Miscellaneous Liabilities ............... ..

19. Total liabilities .............. .. ........ .. ......................................................................... .

20. Surplus ..................................................................................... .

21 . Total liabilities and surplus .... .. ..... .. ................. ... .... .......... ......... ............. .... .. ...... .

(line 21 must agree with line 22. column 4, and page 4)

*Method of calculation: 40% method.

5

Current Year

11.169

223

21.936

10.829

1.694

111

130

1.738

4.469

232.000

Prior Year

1.552

21.918

12.467

1.524

132

255

4.846

228.000

1.932

284.299 272 626

826.006 921 302

1,11 0,305 I"'-...... ~_

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HISTORICAL INFORMATION

2016 2015 2014 2013 2012

Gross Premium Fire ........................................................... 317,440 311,401 317,470 291,143 288,013 Windstorm ............................................... 267,329 262,307 269,134 243,889 241,766 Crop HaiL ................................................... 0 0 0 0 0 TotaL .......................................................... 584,769 573,708 586,604 535,032 529,779

Net Premium Written Fire ............................................................ 317,440 311,401 317,470 291,143 288,013 Windstorm ................................................. 267,329 262,307 269,134 243,889 241,766 Crop Hail .................................................... 0 0 0 0 0 Total .... ....................................................... 584,769 573,708 586,604 535,032 529,779 Total Net of Agg ........................................ 321,426 311,100 320,301 330,020 384,396

Gross Losses Paid Fire ..... ....................................................... 68,082 207,046 204,266 183,964 318,618 Windstorm .......... ...................................... 144,879 168,556 153,131 252,857 61,647 Crop HaiL ......................................... ......... . 0 0 0 0 0 TotaL ........................................................ 212,961 375,602 357,397 436,821 380,265

Net Losses Paid Fire .. .... ...................................................... 68,082 207,046 204,266 162,729 318,618 Windstorm ................................................. 144,879 168,556 153,131 252,857 61,647 Crop Hail .................................................... 0 0 0 0 0 TotaL ... ....................................................... 212,961 375,602 357,397 415,586 380,265 Total Net of Agg ........................................ 171,268 193,061 269,521 124,927 297,682

Loss Percentage !Directl Fire Losses/Fire Prem ............................... 21 % 66 % 64 % 63 % 111 % Windstorm LosseslWindstorm Prem ....... 54 % 64 % 57 % 104 % 25 %

Crop Hail Losses/Crop Hail Prem ............ 0% 0% 0% 0% 0% Total LosseslTotal Prem ............................ 36 % 65 % 61 % 82 % 72 %

Loss Percentage {Net} Fire Losses/Fire Prem ............................... 21 % 66 % 64 % 56 % 111 % Windstorm LosseslWindstorm Prem ...... 54 % 64 % 57 % 104 % 25 %

Crop Hail Losses/Crop Hail Prem ............ 0% 0% 0% 0% 0% Total LosseslTotal Prem ........................... 36 % 65 % 61 % 78 % 72% Total Net Agg LosseslTotal Net Ag Prem 53 % 62 % 84 % 38 % 77%

Balance Sheet Items Total Admitted Assets ................................ 1,110,303 1,193,927 1,328,048 1,500,516 1,532,187 • Liabilities .................................................... 284,299 272,627 276,987 266,735 251,104 Surplus .................................................... 826,004 921,300 1,051,061 1,233,781 1,281,083 Bonds ... ..................................................... 175,755 71,334 71,621 0 0 Stocks ....................................................... 39,833 33,868 30,193 24,052 20,333 Real Estate ............................................... 67,349 69,732 72,114 74,497 73,891 Unpaid Premium(line B.1) .......................... 0 0 0 0 0 Unpaid Premium(line B.2) .......................... 0 0 0 0 0 Agent·s Balances ....................................... 0 0 0 0 0 Unearned Premium ................................... 232,000 228,000 233,000 213,000 210,000

Balance Sheet Percentages Bonds/Admitted Assets ............................. 16 % 6% 5% 0% 0% Stocks/Admitted Assets ............................. 4% 3% 2% 2% 1 % Real Estate/Admitted Assets .................... 6% 6% 5% 5% 5% Unpaid Prem (line B.2)/Admitted Assets. 0% 0% 0% 0% 0% Agents' Balances/Admitted Assets ......... 0% 0% 0% 0% 0%

Income/Disbursement Items Total Income ............................................. 415,580 405,953 414,026 424,518 489,287 Total Disbursements ................................ 506,627 523,379 613,004 453,757 615,787 Operating Expense .................................... 266,172 266,648 278,595 265,217 263,165 Commissions ............................................ 95,381 94,355 94,040 95,709 90,804 Investment Income ............. ....................... 25,107 25,565 24,894 32,713 45,389 Salaries (lines 14-17) ................................. 76 ,712 71 ,821 73,562 68,279 57,144

Other Gross Risk in Force ..................... 151,957,995 158,179,974 155,653,464 150,630,352 134,911,590 Number of Policies .................................... 813 806 819 780 741 Operating Expense/Net Premium .............. 83 % 86 % 87 % 80 % 68 %

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