We are thankful that we have invested in the information age that fundamentally changed our society. We continue this investment as it is the basis for the future. We have staying power in the changing market and plan to be there precisely when you need a solid mutual company whose philosophy is based on the principles of corporate integrity and service with policyholder focus at the heart of our operation.
2000 marked the beginning of a new decade that began with the fear of Y2K that never materialized and, a year later, the never to be forgotten day of September 11, 2001, an incredible event that shook the nation with an impact from which we are still recovering. At the end of the decade we faced a historic recession that has affected all Americans. Fortunately, with the strong stock market recovery in 2009, the economic outlook is brighter than anticipated a year ago; however, our economy remains challenged.
The 2009 Lititz Mutual balance sheet represents financial integrity with Assets of $196 million and Policyholders’ Security Account at $129 million. Operating results show an underwriting loss of $1.5 million, producing a respectable combined loss and expense ratio of 103.5%, compared to 106.9% in '08. Thanks to a rock-solid investment portfolio, our Policyholder Surplus was enhanced $9.4 million, representing an 8% increase. Our goal in 2010 is to restore underwriting profitability.
We are optimistic about our future, even in these difficult times. We are working diligently today to assure a successful tomorrow. Our professional independent agents and client-centered staff are committed to caring and responsive service.
At Lititz Mutual we recognize the importance of having faith that "the best is yet to come" as we venture forth in 2010. We are confident that our faithful agents have the ability to stay focused and adjust to the challenging economy, promoting our quality products, offering value to our policyholders, and finding new opportunities, one at a time.
Lititz Mutual's respected reputation is its strongest framework. We see ourselves as a most fortunate Mutual Company, thus, the reason we are centering our attention on "SHARING IN OUR MUTUAL SUCCESS ... TOGETHER," with you, our agents and policyholders.
