Celebrating Success October 1, 2024, was a day to remember. After three years of planning and hard work, we officially launched our E&S business on schedule and with incredible momentum in Florida, Georgia and Texas. Within hours, we were quoting our first submissions. On October 2, we bound our very first policy with Eldridge Equipment Repair in Brooksville, Florida, through Agent Brian Tomlinson of Lumbra Risk Advisors in Orlando, FL. Kudos to Senior E&S Underwriter Bridget McDermott who not only wrote that first Florida policy but also wrote our first E&S policies in Georgia and Texas. It was a triple crown moment for FCCI Specialty and the perfect kickoff to an incredible company-wide effort.

Financial Highlights Our financial performance tells a compelling success story across all metrics. The region surpassed our premium goal by $14.4 million, with strong retention and profitability. We're especially proud to report over $29 million in new business, the largest ever for the region, all while staying committed to disciplined underwriting.

Celebrating Success Change is never easy, but it often paves the way for growth. Our biggest win this year? Crafting and executing a revised underwriting strategy that sets the stage for a stronger future. By carefully reducing exposure in vulnerable property lines and stepping away from historically unprofitable classes, we built a foundation for sustained success. But we didn’t do it alone. With our agency partners by our side, we have made significant progress—progress that positions us as a competitive player in the AG market today and tomorrow. To keep our teammates and partners engaged, we made it a priority to connect through agent visits, events and team gatherings. Highlights included a Midwest baseball game sponsorship, Florida theme park outing for the holidays and celebrating the 25th Anniversary with our partners at CHAPP. These moments reminded us that resilience and teamwork shine brightest when times are tough.

Financial Success Numbers don’t lie, and ours tell a story of progress. By strategically reducing our AG direct written premium, we improved our overall loss ratio and contributed to FCCI’s earnings every quarter of 2024. Despite a reduction of over $3 billion in insured values critical during a busy hurricane season, our AG operations remain robust, with over $120 million in farm and commercial AG premium. Submission activity and new business stayed strong, too, keeping us right on track. It’s proof that sometimes taking a step back strategically allows us to leap forward.

Overcoming Challenges Of course, the road wasn’t without its bumps. Managing the pace of change while keeping everyone informed and aligned was a significant task. From updating teammates on territory and policy adjustments to constant communication with agents and policyholders, we kept the lines of communication open. Collaboration wasn’t just a strategy; it was our lifeline.

Fostering Relationships We leaned into relationships, launching programs like our Premier Partner Training, Next Level Producer initiative, and a pilot of the FAST FARM program. These efforts weren’t just about business; they were about building trust and creating opportunities with both existing and new partners. Expanding into untapped states and targeting segments like row crops and growers/packers/shippers set the stage for future growth.

Team Success Our people are our greatest asset. This year, we focused on growing and promoting our AG teammates, adding new roles, and offering training opportunities. From expanding leadership to supporting teammates in earning their AFIS designation, we’re building a team equipped for the future. Promotions within our ranks highlighted the talent we’re fostering, and new team members brought fresh perspectives to the table.

Innovation in Action The FAST FARM program was a game-changer this year, allowing us to compete with competitors' online rate, quote and bind programs. By finding the right agency partners and streamlining the submission process, we set the stage for faster, more efficient service. The results are promising, and we’re eager to see what 2025 brings.

Giving Back Our AG teammates’ hearts are as big as their ambitions. This year, they focused their volunteer efforts on food and animal initiatives, from working at food banks to caring for animals on farms and ranches. A standout effort was their participation in the peanut butter donation drive by Peanut Proud in Georgia. These moments of giving reminded us of the deeper purpose behind what we do.

Looking Ahead As we head into 2025, our focus is clear: grow with intention, build stronger partnerships, and take time to celebrate every step forward. Together with our teammates and agency partners, we’ll face challenges head-on, innovate with purpose, and embrace the opportunities that lie ahead. Sunny days are on the horizon—we’re ready to make the most of them.

Celebrating a Milestone On October 1, we celebrated 12 years of serving the Loan Star state and Southwest Region. We made the day special by launching FCCI Specialty with balloons and cookies to share the excitement with our team. Our agents embraced the new E&S division by wrangling in seven policies in its first month—a fantastic start to a promising venture.

To recognize these accomplishments, we held quarterly celebrations, with a stand-out, mid-year event where every teammate received a banner featuring the “Heart of FCCI” logo. And guess what? We’re gearing up for a massive celebration in early 2025 to honor this incredible streak.

Celebrating Success Let’s start with the numbers: Surety grew by an impressive 37% with $59.8 million in written premium. And it’s not just about growth; it’s about doing it profitably. With a direct loss ratio of just 13%, Surety continues to be one of FCCI’s highest-yielding lines of business in return on equity. This success spans all regions, including new expansion states, in contract and commercial surety lines. In 2025, we’ll gather for our annual team meeting in Sarasota to celebrate these achievements together.

Meeting Challenges with Discipline Inflation posed a challenge this year, increasing the size of the bonds we wrote but also driving up claims costs. Fortunately, we do not have many claims, but the margin for error is tighter than ever. Our team handled it with disciplined underwriting, meticulous attention to detail and honest conversations with our agents and accounts. This transparent approach has been key to maintaining our exceptional loss ratio.

Building Long-Term Relationships In the world of contracting, a bond line is more than a number—it’s a lifeline. That’s why we prioritize long-term relationships with agents and our bonded principals. Meeting face-to-face lets us see the story beyond the financial statements. These connections become even more critical during tough economic times or when an account hits a bump in the road. Our commitment to these relationships ensures we’re there for our partners when they need us.

A Close-Knit, High-Performing Team One noticeable characteristic about the Surety team is our unique culture. We’re a close-knit group where everyone has a voice, and collaboration is at the heart of everything we do. Our robust intern and trainee program exposes new talent to every facet of our business. We're preparing the next generation of Surety professionals to succeed with resources like the NASBP Surety Bond Schools and in-house training.

Strategic Growth and Collaboration 2024 was marked by unprecedented collaboration with FCCI’s divisions and regions. By working closely with business development specialists, our underwriters have strengthened long-term agency relationships and created cross-sell opportunities that benefit the entire company. As we continue Surety state expansion, our ongoing success could pave the way for broader corporate initiatives, such as E&S.

Driving Innovation This year, we streamlined operations by introducing Adobe Sign electronic signatures for general indemnity agreements. This secure, efficient process saves time for agents and customers. We also rolled out an upgraded surety system, underwriting dashboards and enhanced management tools, allowing our underwriting decisions to be more precise and informed.

Giving Back Surety isn’t just about business—it’s about community. Our teammates contributed time and resources to various organizations like Habitat for Humanity, positively impacting the communities we serve.

Lessons Learned 2024 reinforced a simple but powerful truth: success breeds success. Our momentum results from staying focused, disciplined and committed to what works. While celebrating our achievements, we remain cautious, ensuring we’re well-positioned for sustainable growth in the years ahead.

Looking Ahead to 2025 The plan for 2025 is clear: stay the course. We’ll continue leveraging our new systems, pursuing growth opportunities in existing and expansion states and deepening relationships with agents and club agency partners. Building bench strength and planning for succession will remain priorities to sustain our long-term success. Here’s to another year of growth, collaboration and excellence in FCCI’s Surety operation—where strong bonds, literally and figuratively, drive everything we do!

Celebrating Success

We received nominations and awards that spoke volumes about our collective efforts. The CPCU Society of Indiana crowned FCCI’s Midwest Region as their Company of the Year. Big I Indiana named us a finalist for Company of the Year. And let’s not forget our move to a new regional office location in 2023. We held a grand opening celebration in 2024, bringing together teammates from across our region and senior leadership from Florida.

Financial Success The Midwest Region grew direct written premium by 7% and new business by 19%. These achievements were fueled by our teammates’ engagement, consistent communication and strong agency relationships. A unified approach between Risk Control and Underwriting helped us pre-survey over 85% of new business, ensuring informed risk selection. This teamwork, along with Claims and others, led to improvements in our Calendar Year and Accident Year loss ratios.

Challenges and Opportunities While we celebrated many milestones, 2024 was also bittersweet. Eight long-time teammates retired, leaving significant roles to fill. Fortunately, our succession planning prepared us well. The retirements opened doors for promotions and leadership growth. Our internship and trainee programs also provided new talent to carry us forward. Change may be challenging, but it’s also an opportunity we embraced wholeheartedly.

Agent and Policyholder Engagement FCCI’s “better together” mantra was at the heart of our customer engagement. From hosting agent appreciation events on The Kentucky Bourbon Trail and at The Indianapolis Motor Speedway, to sponsoring golf outings and more, we reinforced our commitment to mutual success. Our TeamWorks visits brought together policyholders and agents with Underwriting, Claims, Risk Control and others to deliver tailored solutions for stakeholders.

Team Success and Professional Growth Continuous engagement and clear communication fostered professional growth and team collaboration. We held regular check-ins to discuss our goals and the importance of working together. Teammates took charge of their professional development through self-reviews and growth plans.

Strategic Goals and Innovation Teammate investment, agency partnership, profitable growth and key initiatives set the tone for 2024. Teamwork strengthened our book of business, while new product development and Workers’ Comp initiatives supported growth. Midwest Underwriting and the School of Excellence organized the first Premier Partner Training program. Midwest hosted four of the 18 agent participants in the rigorous eight-month program.

We listened to teammates and agents through surveys and advisory councils, spurring innovations like the 360Value property valuation tool. These efforts are already driving engagement and results.

Charitable Giving and Community Spirit Generosity and volunteerism shone brightly. From food drives for displaced veterans to volunteering at Children’s TherAplay and supporting disaster relief, our Midwest teammates went above and beyond. Their efforts raised record funds making a meaningful impact on our communities.

Lessons Learned and Looking Ahead Humility, respect and kindness define Midwest culture. Our agency reviews offered valuable insights, helping us to align resources with partners who share our values and vision for success.

In 2025, we will work closely with our agency partners to drive growth, profitability and a spirit of improvement that sets FCCI apart. Thank you for your trust and confidence in us. And to our Midwest teammates, your commitment to excellence inspires us every day!

Celebrating Success

It’s my honor and privilege to serve as Vice President, following Courtney Hart who retired in 2024 after leading the region since its start in 2016. Our growing team is ready to achieve our ambitious goals, and I am dedicated to leading with energy and vision.