Page 11 - LARM LIfe Summer 2020

LARM Financials

Mark Weaver, Director of Financial Reporting for Sedgwick Services, presented a
report of LARM’s current nancial position to the LARM Board at its February 2020
board meeting. LARM is in a stable and growing nancial situation as shown by

performance measurements using common insurance industry ratios.

Serving Nebraska communities since 1989

Long term risk management solution

Strong Financial Position
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Serving only Nebraska

Comprehensive property valuations

Competitive pricing

Governed by LARM members

Self-Insured Loss and LAE* to

Retention to Surplus Contributions

The Self-Insured Retention to The Loss and LAE incurred in
Surplus Ratio shows the ability of a 2018-2019 was $4,515,051. The
pool to withstand large claims. The Contributions were $8,328,448. The
industry standard goal for this Ratio Ratio of Loss and LAE to
is to be less than 25%. Contributions as of 9-30-2019 was
54.2%. The industry standard goal
The largest retention for LARM is
T is to be less than 45%.
$750,000. The Surplus as of
T
9-30-2019 was $9,869,559. The Ratio The Loss Ratio was higher than the
as of 9-30-2019 of Self-Retention to goal in 2018-2019 due to severe
Surplus was 7.6% - well within the weather events during 2019.
goal of less than 25%.
*LAE means Loss Adjustment Expense 11
Photos taken in David City, Emerson, Trenton and Neligh, NE