News

 

Profitable Growth Highlights Synergy's 2014 Financial Year

February 19, 2015

Synergy Holdings, LLC announced strong profit and growth for the year ending December 31, 2014 resulting in after tax net income of $4.5 million. Strong underwriting results were produced through lower-than-expected loss and loss adjustment expense while the Company continues its plan to diversify premium writings by state. In addition, the Company's large deductible product expansion that began several years ago is now favorably influencing both profitability and growth.

Financial Highlights

Synergy Coverage Solutions (Servicing Provider)

  • Policy year written premium for the service company increased 15%.
  • Premium growth occurred in all core operating states except one.  Illinois, Indiana, and Georgia led growth while North Carolina experienced premium decrease due to consolidation and unfavorable rate environment for hospital risks. Policies written outside of North Carolina now represent 40% of premium written vs. 27% in the prior year.
  • Service commission income from Premier programs increased due to favorable prior year loss development.

Synergy Insurance Company

  • 2014 combined ratio was 74% compared to 73% in 2013.
  • Combined ratio was comprised of a 52% loss ratio and a 22% expense ratio.
  • Prior year loss development trended favorably and the current accident year experience contributed to the strong results.
  • Policyholder surplus increased by 21% over the prior year-end.
  • Direct premium writings (excluding the effects of policy assumptions and loss portfolio transfers in 2013) increased to $29.4 million from $20.6 million in the prior year.