American Family 2011 Annual Report Download - page 10

AMERICAN FAMILY INSURANCE | 2011 ANNUAL REPORT
Our hearts go out to the victims of the damaging and
deadly tornado in Joplin, Mo., and others who had to
rebuild their lives afer similar events.
My role as chief financial ocer is to provide
leadership and coordinate the incredibly talented
teams that manage American Family Insurance’s
finances. That’s how we care for our customers – by
making sound decisions and looking for ways to
serve them even better.
American Family incurred a record $1.2 billion in
storm and catastrophe losses in 2011, which means
many of our customers depended on us to help them
get back on their feet.
How did we do that, while still adding $277 million to
policyholder equity?
For one thing, our investing philosophy serves us
well. American Family invests for the long term and
takes steps to reduce volatility during market crisis
Daniel J. Kelly
Chief Financial Ocer
periods. As responsible stewards of our policyholders’
money, we closely monitor our investments and
maintain a balanced, diversified porfolio.
We’ve also made a significant commitment to
reinsurance programs, which substantially oset
the past year’s record storm payments. Think of
reinsurance as insurance for insurance companies
– we work with specialized insurers to help manage
the potential for excessive insurance losses.
When you consider our outstanding customer
service, highly ecient operations and commitment
to new and evolving delivery channels, in addition
to our financial strength, there are pretty good
reasons to do business with us.
2011 WAS A YEAR
FOR THE RECORD BOOKS
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