Last year was challenging for the insurance industry and for Auto-Owners Insurance Group. Continued inflationary pressures, along with escalated weather-related losses, impacted our financial experience. These headwinds led to an unprofitable year.

The underwriting loss caused a decline in our policyholder surplus of approximately $390 million. Still, we remain financially solid with nearly $14.3 billion in policyholder surplus. We continue to have the capacity needed to support all of the good business agents have to place with us in 2024, and for years to come.

Even with these challenges, Auto-Owners had much to be proud of in 2023. Our associates continued to use our simple human sense® approach to provide excellent service to our agents and our policyholders.

We remain focused on our strategies for profitable growth. We experienced our largest ever annual increase in premium of over $1.8 billion. We were fortunate to receive a mixture of personal and commercial lines business from our outstanding independent agents.

In-force policy count grew by over 353,000 policies, bringing the total number to 5.95 million. Auto-Owners Life Insurance Company had another excellent year as well.

All three of our affiliates enjoyed another outstanding year:

• Atlantic Casualty Insurance Company (our excess and surplus lines subsidiary) had another banner year with profitable growth, which is its 10th consecutive year with an underwriting profit.
• Concord General Mutual (our affiliate operating in the four northern-most New England states) continued to experience solid growth, but was challenged with weather activity in the Northeast.
• Capital Insurance Group (our subsidiary in the five Western states) had its third consecutive year with profitable growth.

We remain dedicated to the independent agency system. Our hard-working associates are committed to providing the service our independent agency partners and our policyholders expect and deserve.

Jamie P. Whisnant, Chairman & CEO