My name is Peter Feeney and I work with the great team that administers HealthCap Insurance and Risk Management. I am going to speak about how we did in 2016 and how HealthCap continues to adapt to meet and exceed the expectations of our member-owners.
Insurance market conditions have remained relatively consistent with a core group of carriers writing senior living liability and a few new entrants joining the competitive fray and several wounded competitors leaving each year.
HealthCap has used these market conditions to build on what we started fifteen years ago. We continue to refine our risk management and it paid off again. Our members continue to have 30% fewer claims than the rest of the industry. We continue to refine our claims approach in a shifting tort environment. When our members have a claim, we settle their claims for half the industry average.
Lower loss costs translate into lower future premiums.
We are happy with our investment performance in 2016 which was aided by our conservatively constructed, investment grade portfolio as well as limited exposure to the equity markets which finished the year strongly.
Despite head winds in the bond market and continuing competitive pressure, HealthCap was again profitable in 2016. We finished the year with over $42 million in gross written premium down from $44 million in 2015.
We made conscious decisions about the premium adequacy of a few larger accounts that had deteriorating risk profiles. Other insurers are often attracted to large accounts and why not, but there does have to be a point where your underwriting discipline indicates that you have crossed a line. The trick for insurers is know where the line is and then obey the boundary. We did that in 2016.
We are a senior living industry solution to an insurance problem.
We don’t just make one improvement in one area and become satisfied. We seek to continuously improve in every area.
In underwriting, we apply data and analytics like never before and like nobody else in the industry.
In risk management, we coach quality and our members deliver with improving star ratings and the lowest claim frequency.
We have a great board of directors made up of our member owners and we appreciate our affiliation with the American Health Care Association. AHCA is a world class organization that we attempt to model in terms of focus and passion.
Our mission is to protect the people who provide the care. HealthCap identifies and manages risk for the senior living industry to ensure that our members’ residents and their families receive world-class care.
We believe the best claim is the claim that never occurs. Consequently, we dedicate experienced industry insiders to the task of preventing claims. We visit virtually every member every year. On site. Up close and personal.
We resolve claims for the lowest cost possible led by the most experienced, most capable team in the industry.
We get involved early, as in immediately, often landing on our member’s door step right after an incident occurs.
We continue to Learn. Apply. Share. Repeat. With the best team and the best partners in the industry.
Rest? We don’t rest.
Pressure? We don’t feel pressure. We apply pressure.
HealthCap members have fewer claims and when they do, we settle them for less.
As they say, friends don’t let friends put their insurance with mediocre companies.
HealthCap has been the most persistent solution for the senior living industry for over fifteen years and 2017 will be our best year ever.
Thank you for your support.