Since 1915 NIE has been devoted solely to insuring dry cleaner and coin laundry businesses

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FREE 2008 Annual Report

A Letter From Our Chairperson

Dear Fellow Fabricare Business Owners:

To our fellow fabricare business owners: On behalf of the entire Advisory Committee, I am pleased to report that:

National Fire and Indemnity Exchange continues to be rated A- Excellent by A.M. Best, and

The Exchange's 12/31/2008 financial ratios continue to beat insurance industry averages:

Assets to liabilities: 1.84
Invested assets to liabilities: 1.64
Surplus to Net Premiums Written: 1.22
Surplus to Loss Reserves: 1.70

We are disappointed that the Exchange did not generate a profit in 2008. For only the 3rd year since 1915, there is no March 2009 profit distribution to policyholders. The two biggest factors that combined to prevent the Exchange from generating a 2008 profit were:

Hurricane Ike claims: $572,000
Unfavorable development on old claims: 625,000

Aside from Hurricane Ike, the Exchange's loss experience on our current policyholders continues to be good. We believe our policyholders are good risks that will generate good results.

These are challenging times for all businesses in all industries. Now, more than ever, fabricare businesses need a knowledgeable friend in the insurance industry.

Reciprocal exchanges have no stockholders. The Exchange exists to meet the insurance needs of its policyholders as professionally and efficiently as possible. We are honored to help the Exchange accomplish that by serving as Advisory Committee members.

Sincerely,

Jeanne Wolf
Advisory Committee Chairperson

A Letter From Our Chairperson

Dear Fellow Fabricare Business Owners:

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