Financial Information

Through conservative investing and careful management, SFM remains debt-free and a consistent market presence despite swings in the economy.

SFM's financial highlights

• Conservative, high quality investment portfolio
• Financial stability
• Consistent, reliable coverage for employers
• Fair pricing, matched with the risk
• Careful loss reserving philosophy
• Customer retention unmatched in the industry
• Sensible, steady underlying business growth
• Surplus strength for the unexpected
• Industry leadership as one of the largest writers of workers' compensation in the Midwest

2008 financial results

Unlike many insurance companies, SFM did not have exposure to the stock market in 2008. So far, SFM’s fixed income investment portfolio (rated AA+ overall) has survived the financial crisis in good shape.

Careful management of expenses and a small decline in claim frequency allowed SFM to add nearly $5 million to policyholder surplus in 2008, a 7 percent return on equity. This was accomplished while reducing the average price of coverage by 4 percent for renewing policyholders.

View full details in SFM's annual review 

AM Best rating

AM Best designates SFM as NR-5 (not formally followed). This means that SFM chooses not to purchase a financial rating from AM Best. With a strong track record of financial performance, SFM instead offers full disclosure of the financial results of the company. SFM retains outside firms to independently evaluate claim reserve adequacy and provide annual audits of financial statements. SFM also purchases reinsurance to protect against the risk of large losses.

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