Mr. Steve D. Clark This is Me

 Web References

1. 1. Michigan Chamber of Commerce -- Leadership Michigan

   www.michamber.com/ne/lm/grads. - [Cached]

   Published on: 5/13/2006   Last Visited: 8/10/2007

   Mr. Steven D. Clark, Controller, Accident Fund Insurance Company of America, Lansing

2. 2. Agent News Story

   www.accidentfund.com/news/1201 - [Cached]

   Published on: 8/3/2001   Last Visited: 8/3/2001

   Steve Clark , Accident Fund's Finance Department Manager , answered questions about this key financial measure.
   
   What does our policyholder surplus mean to agents when they're selling the stability of Accident Fund Company.
   
   Clark : While assessment of an insurer's financial condition requires careful analysis of all relevant financial information , policyholder surplus is a key financial measure. Policyholder surplus is the amount by which an insurer's reported assets exceed reported liabilities. It represents the net financial resources available to an insurer to protect its policyholders from business risk to which all insurance companies are subject. Generally , the greater an insurer's surplus , both in terms of total dollars and relative to the scope and magnitude of its business risk , the more likely the company will be able to meet current and future financial obligations.
   
   Accident Fund Company , as of September 30 , 2000 , exceeded the NAIC's risk based capital authorized control level by 10 to 1 and the company action level by 5 to 1. How does this illustrate the Company's stability.
   
   ...
   Clark : Risk based capital is a methodology that establishes the minimum capital appropriate for an insurance company to support its overall business operations given the scope and magnitude of its business risk. Company action level risk based capital is the first threshold at which regulatory action is initiated. Accident Fund's surplus as of September 30 , 2000 was five times higher than the company action level risk based capital requirement. This means the Company could lose 80% of its surplus before it would be subject to the first level of regulatory concern and scrutiny.
   
   Why have we seen 150% surplus surge over the past six years.
   
   ...
   Clark : A hardening market is generally triggered by a contraction in surplus. Less surplus means insurers have less capacity to provide insurance which means there is less supply. Accident Fund's surplus has not contracted , but rather has grown. Accident Fund's solid underwriting performance and strong investment income is the reason surplus has grown 150% over the past five years. The Company has been able to maintain profitability despite rate decreases and competitive pressures.