In 2018, that trust resulted in the highest direct written premium in FCCI’s history. We wrote $837.5 million, an increase of nearly $16 million over the previous year. Our GAAP equity and statutory surplus totaled $740.9 million and $598.5 million, respectively. Our investment portfolio remained steady at $1.8 billion despite the turbulent market, and our total assets were $2.4 billion. We earned a profit of $31.6 million and achieved a combined ratio in line with plan at 102.5%, including four points of weather-related losses. 2018 brought with it Hurricanes Florence and Michael. Our response to the resulting claims — and to all the others during the year — is the real measure of our success. I believe our Claims teammates are second to none, and it shows in their compassion and dedication to doing the right thing, in the speed in which we close claims compared to many of our peers and in the overall satisfaction of our policyholders with our claim service. In this report, you’ll read about our catastrophe planning process and how we responded even more efficiently in 2018, taking care of those in need when it counts. You’ll also read about our 2025 strategic planning process. We spent a great deal of time in 2018 envisioning how we can best serve our customers in the changing commercial insurance marketplace, while keeping relationships at the core of our business. We remain solely committed to distributing our coverage through independent agents, and we believe they serve a critical role as trusted advisers for their clients. Regardless of continued growth, mergers, acquisitions and digitization in the marketplace, we will continue to earn business through relationships, trust and integrity. In 2018, we also committed to building and strengthening the FCCI brand, and we took steps toward doing that by launching a new FCCI website and investing in technology that will increase efficiency and improve our customers’ experience. In addition, we reaffirmed our focus on local presence, decision making and accountability by shifting some of our organization to align claims, risk control, premium audit and policyholder services at the regional level. We further strengthened our commitment to giving back. Our teammates volunteered 2,648 hours to charitable organizations in 2018, honoring the promise in our eighth pillar: Charitable Giving. FCCI teammates have graciously served more than 13,000 hours to assist those in need in our communities since 2012. Lastly, FCCI teammates are proud of and take ownership in our company’s performance and the continuation of our charitableness. Our 850 teammates fully understand that we would not exist without our precious agency partners and policyholders. Providing exceptional customer service is one way to maintain trust and grow relationships. We look forward to many more mutually prosperous years together. We will continue to work hard to earn and retain your business. Thank you for being part of our FCCI family.

Chairman of the Board, President and Chief Executive Officer