Despite continued pressure from other carriers and mixed claims results, SFM again had a successful year in 2025.

Being the leaders in workers’ compensation means striving to provide unparalleled service, working to keep employees safe and helping clients reduce their experience modification factor. We do that through our dedication to customer service – building and maintaining relationships with agencies and ensuring policyholders get everything they need from their work comp partner.

A few notable highlights from the past year include:

• Surpassing $1 billion in assets
• Upgrading our internal systems to better serve agents and policyholders
• Developing enhanced systems for agents to get quotes faster
• Improving claims handling in core and non-core states

Service excellence is the foundation that supports our success. That philosophy helps us retain policyholders, generate new business and build agency relationships now and in the future.

Additional highlights from 2025 include:

• SFM’s policyholder retention level of 93%, demonstrating our industry-leading customer loyalty
• Continued growth in our newer markets, particularly Indiana and Tennessee
• A banner year for new premium in Wisconsin
• Policyholder surplus growth larger than premium growth
• Projects to enhance our online portals – the SFM Agency Manager (SAM) and MyPayroll premium audit process – to make our systems more intuitive and user-friendly

Another item I’d like to share from last year was the promotion of Amanda Aponte to Executive Vice President.

She has been an integral part of SFM’s growth during her two decades with us. She has helped guide our investment strategy, bolster our enterprise risk management processes, and perform insightful business intelligence analysis.

Amanda, who started as an intern at SFM, is a sterling example of what can happen when we give people the space to fulfill their potential. Her financial acumen and vision have been critical to SFM’s success, and her leadership will help position us for the future.

As we move into the new year, we want our agent partners to know how much we appreciate their trust. Let’s continue to write more business and build on the momentum we’ve generated over the years. When you select SFM for your policyholders’ work comp coverage, we understand you are choosing to resist pressure from package insurance lines and recognize the value of our dedication and service.

SFM realizes that strong financial results are necessary for the success of our stakeholders. We also know our staunch commitment to focusing on our customers is the backbone of what we do and how we will continue to grow moving forward together.

Thank you for your continued support and partnership! We look forward to sharing success with you and your clients for many years to come.

Read more Agent Agenda articles

Building on its status as the No. 1 workers’ compensation carrier in Minnesota, SFM had another strong year in 2025, with gains in newer markets, as well.

“About half of SFM’s business is now from states outside of Minnesota,” said Shawn Miner, VP of Regional Business. “In addition to maintaining the lead we’ve held in Minnesota for over 20 years, it’s fantastic to see strong growth coming from our other core states.”

Also of note, in 2025 SFM moved claims handling in-house in Indiana and Tennessee, which is expected to provide better service for policyholders and bolster SFM’s reputation in these states. This change allowed SFM to increase its appetite and write business for accounts larger than $25,000 in Indiana and Tennessee.

“We’re excited to add employees in our newer states as our footprint continues to grow,” said Cody Allen, SFM Territory Manager. “With claims handling coming in-house and our standing in new core states expanding, we are looking forward to increasing our presence and, in turn, our market share.”

Wisconsin, specifically, had an excellent 2025, with a record for new business premium.

“Our passion for providing the best work comp service is resonating with agents and policyholders,” said Rick Spaulding, a Wisconsin Team Business Leader. “They invest in a relationship built on trust.”

Highlights from 2025 include:

• 93% policyholder retention rate
• Total written premium of just over $253 million for 2025
• New business premium of $28.4 million
• Added 6,071 new business policyholders
• Another year of an A- rating from AM Best
• SFM Foundation awarded 19 new scholarships, bringing the total to $4.7 million
• Ongoing member of Keystone Program, donating 2% of pre-tax profits to charity

SFM partners with thousands of independent agents and serves more than 50,000 policyholders. In addition, SFM’s portion of the Wisconsin Workers’ Compensation Assigned Risk Plan is increasing from 20% to 25% this year.

“We have seen steady growth, despite rising claims and medical costs, and our overall trajectory is strong,” Steve Sandilla, Senior VP and Chief Business Officer. “While we have long been a work comp leader in the Midwest, the success of this latest round of expansion is a sign that we will continue to capture more market share in the years to come.”

Read more Agent Agenda articles

We have worked to make SFM Agency Manager (SAM) as easy to use as possible, including streamlining the underwriting process.

SFM writes business in more than 400 class codes – key industries such as construction, healthcare, manufacturing, hospitality, social services and nearly any other “main street” business you can think of.

The following lists of our top 20 new business class codes by policy count and premium will give you an idea of where we’re seeing the most success.

Top 20 class codes by policy count

This shows SFM’s top new business class codes by policy count over the past three years.

1. 5645 – Carpentry – Resident Dwelling
2. 8835 – Home, Public & Traveling Healthcare
3. 8810 – Clerical Office Employees NOC
4. 8868 – Colleges Or Schools 
5. 9015 – Bldg or Prop M – Ops By Owner
6. 8842 – Group Homes – All Employees
7. 9082 – Restaurant NOC
8. 5474 – Painting Or Paper Hanging NOC
9. 8017 – Store Risks Retail NOC
10. 8832 – Physicians 
11. 0006 – Farms No Inservants
12. 9084 – Bar, Discotheque, Lounge, Nightclub
13. 0037 – Farm NOC
14. 8742 – Salespersons Or Messeng-Outsid
15. 8380 – Automobile Service Or Repair
16. 9063 – YMCA, YWCA, YMHA Or YWHA
17. 9014 – Buildings Operation By Contractors
18. 8869 – Child Day Care Center – Professionals
19. 8824 – Group Homes – All Employees
20. 5190 – Electrical Wiring-Within Buildings

Top 20 class codes by premium

This shows our top new business class codes by premium size over the past three years.

1. 8868 – Colleges Or Schools
2. 8824 – Retirement Living Centers Healthcare
3. 8842 – Group Homes – All Employees
4. 8835 – Home, Public & Traveling Healthcare
5. 5645 – Carpentry – Resident Dwelling
6. 8833 – Hospitals Professional Employes
7. 8832 – Physicians 
8. 7382 – Bus Co: All Other Employees & Drivers
9. 8829 – Nursing Or Convalescent Home
10. 0006 – Farms No Inservants
11. 9082 – Restaurant NOC
12. 8864 – Social Service Organization
13. 7219 – Trucking NOC
14. 5221 – Concrete or Cement Work-Floors
15. 8380 – Automobile Service Or Repair
16. 9012 – Building or Property Mgmt-C&S
17. 0037 – Farm NOC
18. 3632 – Machine Shops NOC
19. 8017 – Store Risks Retail NOC
20. 9015 – Bldg or Prop M – Ops By Owner

Read more Agent Agenda articles

It was a busy 2025 for SFM in terms of claims handling.

At the beginning of May, SFM began addressing Indiana claims internally rather than through a third-party administrator. The change did not impact how policyholders report injuries, but is aimed at improving the experience for injured workers by utilizing SFM’s claims expertise.

“SFM is known for its outstanding capability in claims handling. By taking on these claims in-house, we can provide a higher level of customer service and a better experience for policyholders and injured workers,” said Angie Andresen, Vice President of Claims.

That change coincided with expanding SFM’s book of business in Indiana and opened the door to write policies for accounts larger than $25,000 in annual premium.

A similar change was made in December for claims in Tennessee. SFM is now handling those claims directly and also began writing business with mid-market employers in the state.

“Our relationships with agency partners in our newer states continue to build with each passing year,” said Mike Happe, Senior Vice President and Chief Marketing Officer. “SFM’s standing as the work comp experts has helped us develop, retain and grow business in these markets, and we’re excited to handle claims ourselves and expand our book of business in these states.”

New claims handling in non-core states

SFM in 2025 also changed its third-party administrator (TPA) for claims handling in non-core states to CBCS .

The company began handling claims in SFM’s non-core states beginning in December 2025. CBCS’ approach is similar to SFM’s — a focus on customer service and doing right by both policyholders and injured workers. The company boasts a 99% client retention rate over the past decade and is committed to the client experience.

As a refresher, SFM’s core states include:

• Minnesota
• Wisconsin
• Iowa
• Nebraska
• South Dakota
• Indiana
• Tennessee
• Kansas

“We put a great deal of thought into making the decision to change our TPA for claims handling in non-core states,” said Sarah Hunter, VP Operations. “SFM conducted extensive research before landing on CBCS as the best claims partner for us moving forward.”

SFM alerted policyholders with legacy claims about the change, and CBCS reached out to injured workers on all applicable open claims and provide new claim and contact information.

“We’re excited to partner with a company that shares SFM’s commitment to service excellence,” Andresen said.

Read more Agent Agenda articles

It’s that time of year again…

With winter in full swing — and the upcoming thawing and refreezing cycles in the months ahead — workplace safety should be paramount.

Be sure to remind your policyholders that just because spring is on the horizon, it doesn’t mean they can be any less vigilant about workplace safety.

Slips, trips and falls – the bottom line

Slips, trips and falls are a leading cause of workplace injury. They can be severe, leading to fractures, head trauma or worse.

The costs of covering these claims gets expensive. Not only can it negatively influence the employer’s experience modification factor, but it also impacts agency and carrier results. SFM estimates the average winter slip-and-fall lost-time claim to be between $50,000 and $55,000.

Weather is a major factor in workers’ compensation. Slipping and falling because of snow and ice is one of the most common workplace injuries.

Resources for policyholders

With a few reminders and some common sense, policyholders can help employees stay safe and reduce the potential for claims.

A few basic tips for you to pass along include:

• Properly maintain your parking lot and walking areas
• Encourage employees to wear appropriate shoes for the weather
• In the case of a snowstorm, let employees work from home or reschedule if possible
• Manage snow piles near walkways to avoid melting snow refreezing to ice

Policyholders should educate their employees about other winter safety measures, such as walking like a penguin, salting slippery areas, avoiding shortcuts, and stepping down, not out, of vehicles.

If you are looking for additional resources to help in these efforts, check out what’s available on our website or contact your underwriter.

View more Agent Agenda articles

SFM is planning to participate in several industry events in the coming months, including:

• Jan. 21-22 — Rural Agents Conference, Des Moines, Iowa
• Feb. 3-5 — KAIA Annual Convention, Wichita, Ka.
• March 5 — Farm Ag Conference, Lafayette, Ind.
• April 29-30 — MN Big I Annual Convention, Prior Lake, Minn.

Read more Agent Agenda articles

Here’s a look at the latest promotions and accomplishments for SFM’s underwriting staff over the past several months.

• Tamara Flanagan was promoted to Underwriting Technical Support Representative and transferred to the Underwriting Tech team.
• Tracy Johnson was promoted to Senior Underwriter.
• Janice Fisher joined SFM as a Marketing Underwriter on the Iowa/Nebraska/Kansas Accounts team.
• Alex Johannes joined SFM as a Marketing Underwriter on the South/Metro Accounts team.

Also of note for SFM in 2025:

• Shannon Nelson joined SFM as Senior Defense Counsel with Schmidt, Scharfenberg & Hollick.
• Executive Services welcomed Associate General Counsel John Marsalek.
• Colton White joined SFM as a Business Development Rep for Indiana agencies.
• Former company President and CEO Pat Johnson was inducted into the Minnesota Insurance Hall of Fame.

Read more Agent Agenda articles

When it comes to workers’ compensation insurance, agents count on SFM for several reasons: unparalleled service, consistent results, support for injured workers and ease of doing business.

“Agents know that when they place a client with SFM, they’re choosing a carrier that prioritizes safety, empathy and long-term outcomes,” said Steve Sandilla, Senior Vice President and Chief Business Officer. “That’s why we continue to see growth in our core states as our reputation spreads among agents and policyholders.”

SFM has maintained its industry-leading client retention rate over the years. An annual policyholder retention rate of over 95% means that policyholders consistently choose to stay with SFM.

Results from a recent Agency Partner Survey showed that nearly all respondents were satisfied with SFM (93% “extremely” or “moderately” satisfied). And 91% said SFM is “easy” or “very easy” to do business with.

Agents most often cited SFM’s customer service and user-friendliness for their ratings, and the relationship underwriting staff was also regularly mentioned as a reason for overall satisfaction. SFM’s website, processes and technology were noted as strengths by those who completed the survey, as well.

“By working with an insurer specifically dedicated to work comp, agents have access to the tools they need to streamline their processes and better serve their clients,” said Mike Happe, Senior Vice President and Chief Marketing Officer. “For agents, SFM is more than a carrier – we’re a collaborator. With fast response times, superior medical outcomes, and cost controls that reduce e-mods over time, SFM delivers what agents need most: confidence, clarity and care for injured workers.”

Why work with The Work Comp Experts

There are numerous benefits to working with a carrier dedicated solely to workers’ compensation, especially considering some of the industry developments in recent years. Some concerning trends carriers are watching include:

• Higher claims severity
• Aging workforce
• Rise in workplace violence claims
• Mental health issues
• Increase in litigated claims
• High rates of injury frequency among newer employees
• Medical inflation

Multi-line carriers often lack the expertise it takes to tackle these issues and address the concerns of policyholders and agents.

That’s why SFM’s dedication to work comp has resulted in steady growth in its core states. The 2024 market share numbers released this spring showed SFM continues to garner more business. SFM’s carrier ranking in its top five states, based on 2024 written premium:

• Minnesota – 1
• South Dakota – 3
• Iowa – 6
• Nebraska – 7
• Wisconsin – 10

Also, SFM’s 2024 market rank increased in its three newest states: Kansas, Indiana and Tennessee. SFM hit a new milestone by making the top 10 in Wisconsin, and SFM’s 2024 market rank increased by four spots in Kansas, eight in Indiana and 11 in Tennessee.

“We’re very much guided by our mission: protecting workers from harm and helping the injured recover,” Happe said. “That mission drives every claim, every premium audit and every conversation.”

Next webinar: The SFM Difference

Join us for our next educational webinar as we discuss the features and services that make SFM a premier workers’ compensation partner.

Set for 10-11 a.m. Wednesday, Dec. 3, the webinar will bring together SFM experts to share:

• SFM’s philosophy on service to our partners
• Our focus on injury prevention and returning injured employees to work
• How our unique company structure and departmental expertise benefit our partners
• Our customer-centered approach to premium audits
• How our medical services team supports injured workers’ recovery
• Much more, including a question-and-answer session at the end

Register now

Read more Agent Agenda articles

SFM is making two significant enhancements to its workers’ compensation operations in Tennessee.

Starting Dec. 1, SFM will begin writing business with Tennessee mid-market employers, further expanding SFM’s presence as it continues to gain a greater portion of the state’s market share. At that time, SFM will also start handling Tennessee claims in-house.

“We’re excited about these coming developments and our commitment to Tennessee,” said Cody Allen, SFM Territory Manager. “The agents we work with know about SFM’s work comp expertise and our reputation for exceptional customer service. Soon, that will extend to a larger pool of clients.”

SFM’s 2024 share of the market in Tennessee jumped 11 spots from the previous year, and starting Dec. 1, agents can expect SFM to be available to write business for accounts larger than $25,000 in annual premium, said Mike Happe, Senior Vice President and Chief Marketing Officer.

“Our relationships with agency partners in our newer states continue to build with each passing year,” Happe said. “SFM’s standing as the work comp experts has helped us develop, retain and grow business in these markets, and we’re excited to expand our book of business in Tennessee.”

Claims handling

Starting Dec. 1, SFM will begin handling Tennessee claims through its in-house team.

Injuries that occur on or after that date will be addressed by SFM claims personnel directly, rather than through a third-party vendor. Open claims will be shifted to SFM staff at that time, as well.

Policyholders will see no change in how they report claims – they can still call the SFM Work Injury Hotline, report online through SFM’s website or use the CompOnline portal.

“With SFM’s extensive knowledge of claims handling, it makes sense for us take on those duties. By taking these claims in-house, we will provide better customer service and an improved experience for policyholders and injured workers,” said Angie Andresen, Vice President of Claims.

Read more Agent Agenda articles

Starting Oct. 30, users of SFM web portals will log in with their email addresses rather than usernames.

The change will allow those with multiple accounts to access all of them with just their email address and a password, and users will no longer have to remember usernames to log in.

Users will complete one-time setup process

The first time customers log in after the change, they will need to complete a one-time setup process where they’ll verify any multi-factor authentication methods they’ve established, change their passwords and verify their contact information.

They’ll enter their email address and the password they had previously established to start the process. (If they have multiple accounts, they can use the password associated with any one of their accounts.)

Users who have chosen to keep their mobile number hidden from their account team during their previous multi-factor authentication setup will have another chance to either confirm their choice, or share their number with their account team.

After they get logged in, users will have access to a new “hub” area where they can manage their login and communication settings.

SFM began sending web application users emails Oct. 1 to let them know the change is coming. Another email will be sent the day of launch.

The change is not expected to be to be too disruptive to users, but it will take a little extra time to log in that first time after the change. Also, they may need to change their password manager or autofill settings to start entering their email address rather than their username.

Following the launch, SFM will have a group ready to support users who have issues.

As a reminder, SFM has several online portals to make the work comp process easier:

• SFM Agency Manager (SAM)
• CompOnline
• ePay
• Claim Connection
• SFM’s certificate portal
• Provider Connection

Contact information becomes separate from log in information

One change rolling out with universal login is that users’ contact email addresses and login email addresses can be different, if desired. This allows users to have a unique log in email, but still have communication directed to a shared email inbox if they’d like.

In the new system, each person must have a unique email address to log in.

Read more Agent Agenda articles