Table of Contents About our theme and cover: The theme for FCCI’s 2022 Annual Report is Exceeding Expectations. It’s a powerful and actionable statement. A call to every teammate:

1 Exceeding Expectations: A message from Cina Welch

18

Breaking Barriers at the Special Olympics

2 FCCI’s Board of Directors

20

Supporting our Communities Through our Eighth Pillar

22

Our Local Presence

28

Chairman’s Club

29

Executive Club

30

How FCCI Reached 1 Billion in Direct Written Premium

32

Investment in Technology for Better Service

34

On the Horizon

To do what we say we’ll do. This is what our agency partners and policyholders count on. It's what makes FCCI unique in the insurance marketplace and earned our reputation for going above and beyond to serve our customers. As you’ll read in this report, our teammates exceed expectations every day. Whether processing claims quickly and fairly, delivering creature comforts after a hurricane, or supporting our communities through our eighth pillar. It's also how our financial strength provides policyholders the coverage they need to help protect their businesses. And, since 1959, it's how we've kept our promise to our customers and each other to always put people first.

3 FCCI’s Officers 4 Corporate Overview 5 Financial Snapshot 6 From Catastrophe to Recovery. How a Hurricane Produced a Rapid Claims Response. 12 Delivering Comfort in the Wake of a Weather Catastrophe 16

The Meaning of Respect, Inclusion & Opportunity at FCCI

36 Where We Write Business

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

Exceeding Expectations A message from Cina Welch, President & CEO On behalf of FCCI’s board of directors, officers and 830 teammates, we value your partnership and loyal support. Fittingly, our 2022 theme was Exceeding Expectations. It was a challenging year due to the financial landscape along with weather-related catastrophes. Nevertheless, many businesses, including FCCI, overcame these obstacles with exceptional resilience. In fact, FCCI reached a historic milestone surpassing $1 billion dollars in direct written premium by the end of 2022. Such a momentous achievement could not have happened without the hard work of our teammates, and the trust and belief our agent partners and policyholders have placed with us. While core insurance operations continued to produce profits, we experienced a net loss of $4.1 million in 2022 mainly due to a decline in investment portfolio market values. Notwithstanding this decline, our investments and cash continued to exceed $2 billion buoyed by $81.9 million of positive cash flow from operations, and our GAAP members’ equity remained solid at $852.5 million. When Hurricane Ian hit Southwest Florida, it was reported by NOAA as being the third most costly hurricane on record. We were there for our

policyholders – “Doing what we said we’d do.” By year-end, we closed an impressive 87% of all Ian-related claims. Collectively, FCCI closed 100.1% of all lines of business claims. FCCI took progressive steps toward addressing the talent shortage in the insurance industry. In 2022, we hired 160 new teammates. This top talent brought additional expertise and outstanding customer service skills. FCCI maximized its commitment to recruitment by growing our Underwriter and Claim Trainee programs, nurturing our relationships with schools and enlisting the help of teammates, especially our Young Professionals. We are proud to say that 30% of all new hires came from teammate referrals. We also made a significant commitment and investment in technology. Four percent of our direct written premium dollars were dedicated to enhancing our infrastructure, security and resources. Specifically, FCCI launched new IT systems including Claims, Surety, Agency Management, Policy Decisions and Customer Communications. These platforms empowered our teammates and allowed for better service to our agents and policyholders.

We remain committed to respect, inclusion and opportunity. Diversity of thought makes us one team. Our unique perspectives make us stronger, smarter and well-positioned for success. We value and rely on the collective voices of our teammates, customers and community to help guide us. FCCI shares a sense of belonging, social cohesion and purpose – the essential elements to flourish, be authentic and integrate our cultures. On behalf of all of our teammates who choose to be part of this amazing team, we strive to exceed your expectations every day. We are grateful for the opportunity to serve you by being accessible, responsive and following through. It’s our promise to be there when needed most. Thank you for putting your trust in FCCI.

Cina D. Welch, Esq., CPCU President & CEO

FCCI’s Board of Directors

Recognizing 30 years of service. Robert “Bob” Flanders retired from FCCI’s Board of Directors in November 2022. He stands apart as someone special and with a visionary spirit. He has the gift of being an innovative thinker, a collaborative communicator and a hard worker, all of which he applied during his 30 years as an FCCI Board Member.

John Joseph “Jack” Cox Chair of the Board Director since 2012

Lisa Krouse, Esq., SCP, SPHR Vice Chair of the Board Director since 2016

Robert W. Flanders Director since 1993

Roy A. Yahraus Director since 2007

During that time, Bob was a driving force behind FCCI’s transition from a Florida Workers’ Compensation self-insurance fund to providing coverage in more than 20 states, including all Property and Casualty lines and Surety. As President of Quality Walls Enterprises, Inc., a masonry and lathing contractor, from 1974 to 2016, he was also a policyholder. Bob not only embodied FCCI’s core values, but he also lived one of our pillars – charitable giving. He is a caring person with a generous heart for his colleagues, friends and family. For many years, Bob has been committed to Sarasota’s Suncoast Charities for Children and the Suncoast Foundation for Handicapped Children.

James Michael “Mike” Welch Director since 2017

2

Christina "Cina" D. Welch, Esq., CPCU President & CEO Director since 2020

Tom Koval, Esq. Director since 2022

Charles R. Baumann, CPA, CFF Director since 2004

From all your teammates, past and present, we extend a heartfelt thanks for being a wonderful influence and a true asset to FCCI.

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

FCCI’s Officers

Back Row (L to R): Duane Padgett, VP, Marketing & Communications and Product Management; Michelle Jalbert, SVP, Controller & Assistant Treasurer; Mark Kwiatkowski, VP, Claims; Courtney Hart, SVP, Mid-Atlantic Region; Greg Kramer, SVP, Midwest Region; Bryan Bogardus, VP, Georgia Branch Office; Scott Paice, SVP, Surety; Nick Smith, VP, Claims; Rob Davis, VP, Actuary Middle Row (L to R): Patrick Watland, VP, E&S Underwriting & Premium Audit; Dave Patel, SVP, Chief Information Officer; David Leblanc-Simard, SVP, Chief Actuary; Tracy Stoeckel, SVP, Agribusiness; Tiffany Hawkins, SVP, Gulf-Coast Region; Jessica Markun, AVP, Risk, Audit & Administration Services; Joe Powers, AVP, IT Services Delivery; Tracey Pfab, EVP, Chief Regional Officer Front Row (L to R): Lisa Conley, SVP, General Counsel; Rick Piedra, SVP, General Counsel; Garth Crow, EVP, Chief Claims Officer; Chris Shoucair, EVP, CFO & Treasurer; Cina Welch, President & CEO; Richard Rueger, SVP, Corporate Underwriting, PA & UW Systems; Mike Noble, SVP, Florida-Georgia Region; Ann Driscoll, SVP, Human Resources (Absent, joined in 2023, Kevin Stockton, VP, Southwest Region)

3

Corporate Overview How we add up

160 575 4,054 15,000 830 A NEW TEAMMATES

APPOINTED PRODUCERS

CONTRACTED AGENCIES

POLICYHOLDERS

(Excellent)

TEAMMATES

A.M. BEST RATING

Our balance sheet has never been stronger and our conservative approach ensures we will have the financial resources to meet our obligations as needed. Chris Shoucair, EVP, CFO & Treasurer 4

2.8 $2.0 $1.0 $852.5 $792.4 $4.1 $42.8 $

Billion Total Assets Billion Investment Portfolio

Billion Direct Written Premium

Million GAAP Members’ Equity Million Statutory Surplus Million Policyholders’ Dividends Paid Million Statutory Net Income

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

Financial Snapshot FCCI Mutual Insurance Holding Company and Subsidiaries Summarized Balance Sheet Information (in thousands) ASSETS Total Investments

Summarized Statements of Income Information (in thousands) 2022

$

Cash and cash equivalents

1,954,114 $

2021 2,200,123

REVENUES Net premiums earned

47,262

42,766

Amounts due from policyholders, net

405,493

365,559

Change in unrealized gain on common stocks

Amounts recoverable from reinsurers

110,137

106,350

Net realized gain (loss)

61,366

55,599

Service fees and other income

192,704

121,225

Total revenues

Land, building and equipment, net Other assets Total assets

$

2,771,076 $

2,891,622

2022 $

Net investment income

942,030 $

2021 882,887

73,229

63,011

(76,565)

49,283

(7,203)

12,518

2,411

2,161

$

933,902 $

1,009,860

$

COSTS AND EXPENSES

LIABILITIES AND MEMBERS’ EQUITY

Loss and loss adjustment expenses incurred

646,108 $

581,442

Liabilities

Policy acquisition expenses

179,138

169,935

General, administrative and other expenses

132,685

127,349

Loss and loss adjustment expenses

$

Unearned premiums

1,177,191 $ 459,492

1,137,748 420,789

Policyholder dividends

Debt

131,750

131,750

Total expenses

Other liabilities

150,110

188,045

Income (loss) before income taxes

1,918,543

1,878,332

852,533

1,013,290

Total liabilities Members’ equity Total liabilities and members’ equity

$

2,771,076 $

2,891,622

As of December 31, 2022 and 2021, policyholders’ surplus of the Company’s insurance subsidiaries as determined in accordance with statutory accounting practices was $792,404 and $819,504, respectively.

Income tax expense (benefit) Net income (loss) attributable to members

3,908

4,845

961,839

883,571

(27,937)

126,289

(23,842)

26,005

$ (4,095) $ 100,284

The summarized financial information of the Company is derived from financial statements prepared in conformity with accounting principles generally accepted in the United States of America and are subject to audit by an independent public accounting firm annually. Our audited report and financial statements are available on our corporate website.

5

From catastrophe to recovery.

how a hurricane produced a rapid claims response.

W

hen Tropical Storm Ian formed innocently in the Caribbean Sea on Monday, September 19, 2022, little did we expect the mass devastation and turmoil that followed. On Saturday, September 24, the National Hurricane Center changed its forecast to a potentially catastrophic, Category 4 hurricane with winds between 130-156 miles per hour. A state of emergency was declared for Florida. Hurricane Ian was gaining intensity and was projected to make landfall near Tampa, Florida, on Wednesday, September 28. People on Florida’s Southwest Coast quickly prepared and anxiously waited as Ian barreled toward them. 6

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

FCCI delivered on its promise to policyholders despite uncertainty and devastation. 7

CAT plan is ready, and teams are prepared for a catastrophic event As a commercial insurance carrier with experience in catastrophic weather events, FCCI knows that preparation is critical. To ensure its teammates were safe and operations were ready to help customers, the company implemented its formal Business Continuity Plan. FCCI’s senior leadership team activated its CAT plan and mobilized five catastrophic event and support teams to respond to imminent claims.

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FCCI was poised and ready to assist our agency partners and policyholders, particularly in the Florida-Georgia, Gulf Coast and Mid-Atlantic regions and the Sarasota home office. “Catastrophic weather events are when we put our promise into action,” said Nick Smith, Vice President of Claims. “We work with our partners internally to estimate the volume and location of claims, ensure we have the resources to deploy, plan travel and book hotels. Our trusted adjusters and vendors understand our expectations and requirements.” FCCI teammates are dedicated to initial contact and triage, file setup and coverage verification, allowing the adjusters to be in the field, assessing the damage, and getting the necessary funds to the insureds as soon as possible. “This allows us to help our policyholders move forward, put the event behind them, and focus on their businesses,” said Nick.

FCCI’s CAT team comprises about 30 employees, including executive, regional, claim leaders and others. The Property Claims Department, led by Director of Property Claims Mark Winters, and the Claims Technical Unit are responsible for maintaining and executing the CAT plan. “The claim department meets annually and reviews the CAT plan each spring before hurricane season. We update volunteer lists, training materials, workflows and schedules, and finalize vendor agreements with our independent adjusters who are critical to the plan,” said Mark. The CAT plan is a playbook for how FCCI handles a catastrophic event. That could include hurricanes,

tornadoes, storms, natural disasters, or accidents. In this case, the CAT team started tracking the storm ten days in advance and met daily four or five days out. “At that point, we get a better picture of the hurricane’s direction and intensity. We start seeing the cone and where it might impact land. Then we can take specific actions,” said Mark. The CAT team also gets valuable input from Home Office Underwriting, which forecasts the number of potential claims and how many adjusters will be needed. FCCI has an experienced team of internal adjusters and established independent adjusters ready to deploy on location. “It’s important to match the right adjuster to the right claim to ensure we have the most qualified

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

FCCI was poised and ready to assist our agency partners and policyholders, particularly in the Florida-Georgia, Gulf Coast and Mid-Atlantic regions and the Sarasota home office. to business,” said Mark Kwiatkowski, Vice President of Claims. FCCI teammates answer the call Executing FCCI’s CAT plan is a team approach where everyone pulls together to answer the call when agents and policyholders need us.

person on each case. We also use specialty adjusters who focus on agriculture and farm claims,” said Mark. Hurricane Ian hits Southwest Florida Ultimately, Ian arrived as a Category 4 Hurricane – roaring ashore at 150 mph shortly after 3:00 p.m. ET on Wednesday, September 28, 2022. But rather than striking Tampa, it struck further south on the barrier islands of Captiva, Sanibel, Pine and the mainland of Fort Myers Beach. Dozens of other Florida cities and towns were severely impacted. Winds, storm surges, building collapses, trees falling and flooding caused 144 deaths, destroyed

This includes teammates in claims, risk control, business development and underwriting. About twenty-five volunteers from various departments also worked many hours on the event while performing their regular jobs.

or damaged 35,000 homes, knocked out power to 2.7 million people and disrupted businesses and infrastructure across the state. When the winds and rain subsided, the total financial impact was estimated at over $50 billion in insured and uninsured losses in what would be the costliest Florida weather disaster in recorded history. FCCI responded immediately after Hurricane Ian. “Our top priority is ensuring our CAT team is staffed, and everyone knows their role regardless of department. Our goal is to pay what we owe quickly and fairly to our policyholders and get them back 9

Numerous teammates contributed to FCCI’s Hurricane Ian response. The sub-teams assembled to execute the CAT plan were first contact, policy retrieval, notice of loss reporting, claim services, adjusting and recovery. “Our team collaboration allows us to respond faster than our competitors and resolve claims quickly, restoring our policyholders so they can get on with their business. The fact that FCCI claims stayed under $30 million is impressive and a testament to our catastrophe modeling used by underwriting to keep business

concentrations to acceptable levels,” said Garth Crow, Executive Vice President and Chief Claims Officer. Claims adjusters respond with speed and results FCCI deployed five adjusters to handle Hurricane Ian claims. Alec Harmer, Mike Roeper, Chuck Street, Matt Raab, and Montie Smith were the faces of FCCI on location, meeting with policyholders, assessing damages, and starting the recovery process. For the first couple of weeks, this included working seven days a week for up to 12 hours daily to get the job done.

Alec Harmer recounts that claims were coming in steadily throughout October. FCCI used independent storm adjusters, engineers, and other experts to manage the increased volume. “We also had internal teammates triaging the losses before being dispatched to the adjusters. Those first few days were a balancing act between assessing damage, assigning resources, making contact and helping insureds understand their coverage,” said Alec. Mike Roeper commented that policyholders were prepared to wait for damage assessments but were glad to see FCCI arrive early and get to work. “They were surprised to see us so soon conducting our inspections. We listened and assured them we would help get their businesses up and running. It’s what we do every day. By being local, we quickly responded to our customer’s needs,” said Mike. Chuck Street traveled from Texas to work onsite in Florida. His contacts were amazed that FCCI was setting up appointments so soon after the storm. Some insureds said they had not heard from their homeowners or flood carriers. “We met with agents at the more significant losses who were amazed that I had the authority to direct contractors to start the needed work,” said Chuck. One of the insureds even called to thank Chuck after their settlement payment was hand delivered

10

by an FCCI employee rather than by mail. Chuck said the most rewarding experience was being part of a team with the same goal — to get those businesses back to pre-loss conditions. “Even through all the chaos, we kept our promise,” he said. Several independent adjusters were enlisted to assist with the cascade of claims. One, in particular, was Eric McGehee, Partner at Midwest Claims in Lexana, Kansas. “Safety is critical during initial inspections. “You need

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

We listened and assured them we would help get their businesses up and running. It’s what we do every day. Mike Roeper, Senior Claim Adjuster to assess the damage and salvage equipment or inventory, but you must also be aware of the building and surroundings to ensure everyone’s safety. The policyholders appreciated

that we got there fast to assess the situation,” said Eric. “Working with FCCI is more of a friendship than a business relationship. The big thing that sets FCCI apart from other carriers is

communication and teamwork. FCCI’s communication is second to none.” According to Mark Winters, FCCI sent enough resources to the affected areas to handle claims quickly. Each adjuster had fewer claims than most carriers, allowing for faster resolutions. “One of the most rewarding aspects of an adjuster’s job, especially with an event like Hurricane Ian, is to meet with the insured, talk to them, listen to their stories, understand their challenges and solve their problems with a quick and appropriate settlement,” said Mark. Exceeding expectations in many ways The scars of Hurricane Ian are still visible today on Florida’s Southwest coast. And for many residents and businesses, the wounds are still healing. The weather can be a fierce and uncontrollable force. But how we react to it is entirely within our control.

Ian demonstrated that we were more than prepared and able to handle this catastrophic weather event. The numbers speak for themselves: FCCI opened 722 Hurricane Ian-related claims (507 property and 215 autos) for $25.4 million in Q4 2022. Amazingly, 633, or 88% of those claims, were closed by year-end 2022, with none in litigation. By comparison, the rest of the insurance industry closed an average of only 33% of Ian’s claims by year-end 2022. Hurricane Ian highlighted many ways FCCI exceeded expectations for our agents and policyholders. Whether establishing personal connections, getting there fast, being visible, assessing damages quickly and fairly, hand-delivering payment checks, or showing care and compassion, these actions made all the difference to those who matter the most. It was comforting to know that FCCI guided our insureds through one of the worst disasters they may ever face as a business owner. Any carrier can write policies and collect premiums, but at FCCI, it always comes down to keeping and fulfilling our promise to be there when our policyholders need us.

FCCI’s careful planning and human response to Hurricane 11

Delivering Comfort

in the wake of a weather catastrophe 12

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

FCCI teammates demonstrate concern and compassion for customers affected by Hurricane Ian A ll successful businesses operate to generate revenue and profit. It’s the engine that makes our economy grow and prosper. The insurance industry and FCCI are no different. But beyond the financial statements, balance sheets and operations is another critical component for success — personal engagement.

FCCI teammates take unselfish action This quality was on full display in Southwest Florida immediately following Hurricane Ian. FCCI’s Lauren Sellitti has been a Senior Business Development Specialist with FCCI for 11 years. Her territory covers Manatee County down to Collier County, placing her clients directly in the path of Hurricane Ian. On Thursday morning, September 29, immediately after the storm, Lauren began contacting her agents. She also called her manager, Director of Business Development Chris Kaczmarek for permission to purchase

food and supplies for several affected agency partners. His answer was a resounding yes! Lauren remarked, “I wanted to ensure everybody was safe and let them know FCCI was here if they needed anything. I kept calling until I could confirm everybody was safe. As power was gradually restored, agencies reopened and the staff was back in their offices, taking calls from policyholders.

Mindy Felicien is FCCI’s Manager of Risk Control for Florida. Mindy consults with policyholders to help businesses reduce risk exposure and minimize claims. Over her six years at FCCI, Mindy has nurtured relationships with agents to deliver good results when bad things happen. On Tuesday, October 4, less than a week after the storm, Lauren and Mindy set out to provide much-needed food and supplies. They delivered items to four agencies and a policyholder overwhelmed with work. “They were taking and processing claims at a rate never seen before. We wanted to see them in person to let them know FCCI cares,” said Mindy. Dynamic Insurance, Punta Gorda Started by Dave Ivankovic and

his wife, Toni, in 2003, Dynamic Insurance in Punta Gorda became an FCCI-appointed agency in 2004. They also are an FCCI policyholder. “We took precautions with our staff to avoid the office. We watched the forecast on TV, and when The Weather Channel’s Jim Cantore reported live from Punta Gorda, we knew trouble was brewing,” said Dave.

Dave and Toni returned to the office to find a 50-foot oak tree on their roof and no power. Dave contacted Lauren to see if FCCI could help. The next day FCCI Claim Specialist Matt Raab delivered a generator and tarp to provide electricity and some normalcy to the agency. Matt also arranged to remove the fallen tree from the roof. The staff returned to work and continued talking to policyholders and submitting claims. Lauren and Mindy’s first delivery was to Dynamic Insurance, providing the team with food, water and supplies. “The employees were glad to see us, and gave them a morale boost,” said Lauren. “We’ve been fortunate to have excellent FCCI underwriters and business development specialists. One of those stars is Lauren. She understands

the agency side and adds value to our relationship. Lauren and Mindy represent FCCI very well,” said Dave. The first month after the hurricane was physically and mentally exhausting. “Thanks to FCCI, my staff didn’t hear any complaints from FCCI policyholders about their claims. Everyone from FCCI was responsive, efficient, helpful and empathetic. The entire experience was far better than with other carriers,” said Dave. Lashley’s Crab House, Punta Gorda The next stop was Lashley’s Crab House, owned by Smuggler’s Enterprises in Punta Gorda. Smuggler’s is a client of Dynamic Insurance and an FCCI policyholder. Mindy wanted to visit the waterfront restaurant as their risk control consultant to see the damage. Smuggler’s Vice President Kelly Evans said that an FCCI claims adjuster had already been there to provide an assessment and start the recovery process. “Kelly asked me to take additional photos of the damage for the adjuster.  We also discussed what would be included in the claim. Our visit was productive and gave everyone peace 13

after Ian in the field, assessing damage and helping agents and policyholders in any way possible. “Infrastructure was down and chaotic, but Risk Control met with FCCI insureds. They were glad to see us and surprised that we got to them so quickly,” said Rob.

of mind knowing that FCCI was working the case.” said Mindy. Along the way to their next stop, Lauren and Mindy contacted other policyholders to ensure they were safe and offered assistance. AWA Insurance, Fort Myers AWA Insurance of Fort Myers is a second-generation family business founded in the 1980s. President Jeff Williams credits FCCI as a big part of his agency’s success since teaming up in the 1990s. Jeff has been through plenty of storms but nothing of this magnitude. “Suddenly, it seems like 14

every customer has a claim. Several carriers were supportive, but FCCI stood above them all,” said Jeff. While the AWA staff were busy taking claims, Lauren, Mindy and Rob Lenihan, now an FCCI trio, brought food and supplies. “They graciously cared for my staff and kept the office morale high.” Rob is an FCCI Senior Risk Control Consultant whose territory covers Charlotte County to Collier County. In his five years with FCCI, the damage he witnessed from Hurricane Ian was eyeopening. Rob spent the days and week

Another agency partner and FCCI Chairman’s Club Member, Mike Rodgers from Associates Insurance in Tampa, went above and beyond to help AWA. Mike graciously opened his home and office for several AWA employees to work from Tampa until AWA resumed operations. Mike also delivered a generator and 500 gallons of fuel for AWA employees. Yet another FCCI policyholder, Guys Hauling in Sarasota, brought 150 gallons of diesel fuel and 150 gallons of gasoline to AWA. “We filled up our cars at the office without having to wait in long gas lines. Once we got back on our feet, we filled the gas cans and donated

them to one of my customers in Captiva. That's people helping people,” said Jeff. Jeff received hundreds of claims, mostly from flooding and wind damage. During the cleanup, cars and trucks were towed to open fields that became auto graveyards. A big part of the agent’s job is to guide the insured through the claim process. It’s common for policyholders to get frustrated and impatient. “The fact that we didn’t have problems with FCCI insureds is a testament to their claim department,” said Jeff. He was grateful for the help he received from FCCI and others to get his business back up and running quickly. Five County Insurance, Fort Myers The FCCI trio made their next stop to Five County Insurance in Fort Myers. The agency started in 1982 and is run by brothers Mike and Steve Dannenhauer. Mike is the agency’s President and is proud to call FCCI part of the Five County family. “FCCI is a carrier you can count on to care for their agents and policyholders. We think of them as an extension of our team,” said Mike. That was never more evident than in the wake of Hurricane Ian. Mike met with FCCI’s inspector when the storm subsided to assess their building damage. “The adjuster was remarkable, and the entire claims process was smooth,” said Mike. Rob Lenihan also worked closely with Mike on his claim. “Rob is the best loss control

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

professional in the business. Thankfully, we have the proper policies and procedures in place because of Rob.” Catastrophes often bring out the best in people. FCCI’s Lauren, Mindy and Rob delivered food and comfort to Five County’s office staff so they could continue processing customer claims. “FCCI was a savior,” said Mike. Another example of how the

that we're there for our customers when a catastrophe strikes,” said Lauren. Delivering on our promise to policyholders Within a week of the hurricane and for the next month, Rob and Mindy personally delivered claim checks to policyholders. FCCI received a fantastic response from businesses who couldn’t believe how fast their claims were

the damage, triage claims and follow through with guidance. They were among hundreds of FCCI teammates who exceeded expectations and delivered on their promise to help agencies and policyholders when they needed it most — before, during and after Hurricane Ian.

The fact that we didn’t have problems with FCCI insureds is a testament to their claim department. Jeff Williams, President, AWA Insurance best of humanity emerged during this crisis was when FCCI policyholder Merrick Seafood in Cape Coral lost power to its refrigerators. Rather than feeling victimized and throwing out the food, the owner selflessly cooked the inventory and fed local first responders. “It truly is a community of togetherness,” said Mike. Brown & Brown Insurance, Fort Myers The productive October day continued as Lauren and Mindy visited Brown & Brown Insurance in Fort Myers. They talked to account managers who appreciated the food FCCI provided. “They have a mess at home while working crazy hours, so it’s imperative

settled. “We paid and closed claims before other carriers even arrived. FCCI did it better than everybody else,” said Mindy. As a lifelong Floridian, Rob advises everyone never to assume the storm will not hit their area. Secure your property and evacuate if necessary. “Everybody went to sleep the night before, thinking the hurricane was hitting Tampa. If you didn’t prepare, it was too late. Preparation is paramount,” said Rob. While FCCI is proud to highlight Lauren, Mindy, Rob and Matt’s efforts, they were only a few of FCCI’s boots-onthe-ground meeting with affected agencies and policyholders to assess 15

The meaning of

Respect, Inclusion & Opportunity at FCCI Building a culture of empathy, acceptance and understanding

A

t FCCI, we focus particular attention on the journey we take together every day. It’s a continual state of being. It involves actions, behaviors, practices and a sincere commitment to building a work environment that is welcoming and encouraging for all team members. It’s a special feeling of belonging and knowing there’s always opportunity ahead. Our board of directors and 16

leadership team are dedicated to fostering and maintaining a culture where everyone is treated with respect and where diversity is sought, accepted and valued year-round. In 2020, when Cina Welch became FCCI’s President & CEO, she increased companywide awareness of causes, cultures and celebrations often unfamiliar to many in our workforce. In January 2021, teammates volunteered to collaborate with Human Resources and Marketing & Communications to

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

develop and implement appropriate monthly initiatives across our five regions. Shown here are graphical representations of the 2022 initiatives. The deeper messaging includes background, perspectives, resources and events related to each topic. This content is featured on our website, as well as our Intranet, where teammates are encouraged to participate by sharing

their stories, comments, ideas, photos, videos and experiences. Previous celebrations are archived for future reference on the company Intranet. They can also share sentiments on FCCI’s LinkedIn and Facebook social media platforms. In addition, teammates can download themed images for their computer screensaver, virtual meeting background and email signature. Digital media boards are displayed in the lobby throughout our home office, regional offices and branches. The objective is for every teammate to engage in the topic and learn something new. This ongoing practice supports FCCI’s commitment to building a culture of respect, inclusion and opportunity.

17

BREAKING BARRIERS

at the Special Olympics

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EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

I

n 1946, the Joseph P. Kennedy Jr. Foundation was established to address the neglect of people with intellectual disabilities (ID). This overlooked population often faced discrimination and exclusion from the public eye. One of the Foundation’s leading figures, Eunice Kennedy Shiver, personally identified with its mission to improve society’s association with citizens who had intellectual disabilities – one of them was her sister, Rosemary.

that are held annually: basketball, figure skating, golf, judo, and snowboarding just to name a few. Millions of young athletes with ID have been given the chance to break stigmatized barriers around the world. But not without help. To ensure each of its 33,000 competitions run smoothly, this global non-profit depends on the aid of over half a million volunteers, monetary donations and corporate sponsorships.

In 1962, Shriver created a summer camp in her Washington D.C. backyard and welcomed dozens of young people with ID to take part in various sports. By 1968, that local camp had grown to a national scale, known today as the Special Olympics. This unique athletic opportunity was fueled by one amazing idea, “Through sports, children with intellectual disabilities can realize their potential for growth.” In the decades since, participation in the Special Olympics has exploded to an international level. The Special Olympics now includes over 30 individual and team sport competitions

FCCI sponsors Special Olympics soccer tournament in Orlando In 2022, FCCI Insurance Group proudly sponsored one of the summer’s tournaments comprising four soccer

games. Eager to offer additional support, a dozen FCCI teammates and their families filled the seats as ‘fans in the stands’ for every soccer player in the tournament. Equipped with homemade signs, applause and supportive cheers, teammates and their kids volunteered to help encourage the athletes and their families – the experience exceeded their expectations. “What was amazing was the kids,” remarks Kelly Magyar, an FCCI Sr. Associate Underwriter from the Orlando Branch Office, “You could see the joy and excitement in their faces. They could put their inabilities to the side that day and just be athletes. It was a natural experience. Even when we could see rain storms approaching in the distance, the athletes and the fans wanted to stay.”

this experience so they won’t discriminate as they grow up in life.” When Kelly was asked what made their volunteer opportunity unique from the rest, she answered, “We got to bring our kids. They got to experience something larger than life – something they’ll carry with them forever.” What began in a backyard is now an international mission. Shriver’s idea of fostering healthy and inclusive communities is a legacy that FCCI teammates are eager to support. “At the end of the day,” says Victor, “We’re all kids playing. The Special Olympics unites us; those with and without disabilities.”

Just as Shriver intended, the games not only teach young people with ID their potential, they remind society of how much they are capable of achieving. Victor Ramos-Diaz, an FCCI Agribusiness Underwriter among the volunteers that summer day remembered, “Two years ago, I was introduced to the world of disabilities through a fellow volunteer who has a child with special needs. It was very eye opening. I wanted to give that opportunity to my kids; to see that kids with disabilities are just like us. My kids were cheering them on instead of asking questions. They will remember

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Supporting our Communities Through our Eighth Pillar T

he FCCI Charitable Foundation was established in the spring of 2019. It affirms our long-term commitment to charitable giving – FCCI’s eighth pillar. The FCCI Charitable Foundation is administered by the Gulf Coast Community Foundation, a highly efficient and cost effective way to operate. For every $1 collected by the foundation, more than 99 cents is made available to donate to worthy organizations. 20

FCCI and its teammates support numerous organizations encompassing a wide range of needs. In 2022, the foundation selected food insecurities as its annual focus. Thanks to our

teammates’ and community partners' generous contributions throughout the year, the foundation was able to make donations to the following organizations focused on addressing food insecurities.

Georgia Branch Office The Quinn House

$10,000

Gulf Coast Region Extra Table

$10,000

Mid-Atlantic Region Feed More

$10,000

Midwest Region Midwest Food Bank

$10,000

Southwest Region North Texas Food Bank

$10,000

Sarasota All Faiths Food Bank

$40,000

In addition, the foundation donated $11,200, along with carloads of supplies to Volunteer Florida for Hurricane Ian relief in November, bringing FCCI’s total giving to $101,200.

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

Marcie Luhigo, Executive Director, Midwest Food Bank, Indiana wrote, “Thank you so much for your generous donation to Midwest Food Bank. We are committed to using it wisely, as we work to alleviate hunger and provide relief from disaster.”

In Florida’s Desoto and Sarasota Counties, All Faith’s Food Bank goes beyond providing food for residents in need. In 2022, almost 30 million pounds. of food were collected, sorted and delivered. The organization prioritizes meal distribution to the most vulnerable individuals first, such as children, veterans, and seniors. Additionally, they work to help people acquire long-term food security and self-sufficiency. To help make these efforts possible, FCCI teammates volunteered numerous hours assisting in the food bank’s warehouse. In addition to volunteering time, the FCCI Charitable Foundation donated $40,000 to the Floridian food bank. “Our efficiency is multiplied by their efficiency,” Cina Welch, FCCI President & CEO, points out, “All Faiths spends only 7-8% of their total revenue to pay for overhead.” The FCCI Charitable Foundation awarded another $50,000 in donations to five more food banks across the company’s footprint.

It’s great to have a dedicated focus where we know we can make a difference. Combatting food insecurities throughout all of our regions is just one way to show we care. And it’s immediate.

FCCI Cares is powered by the FCCI Charitable Foundation, it represents our culture of giving back to the communities where we live and work. Each year, teammates have up to eight hours of company-paid time to volunteer at a charity of their choice. While teammates spent the bulk of their hours in 2022 volunteering at food banks, multiple other worthwhile causes like the ones below were beneficiaries of the company’s goodwill. Habitat for Humanity is an international organization that has assisted over 39 million people in the last 47 years by building safe and affordable homes for qualified applicants. In 2022, FCCI committed to sponsoring its eighth Habitat home by providing $160,000 in financial support and 64 volunteers who dedicated 337.5 hours. Cina comments “Anybody who does that kind of volunteer work wants to go back and do it again because they know that it truly matters.” Suncoast Charities for Children (SCC) is another cause that has been close to FCCI’s heart. SCC supports infants, children, teens, and adults with special needs by raising funds at annual events that help to support seven local agencies offering programs critical for

overcoming physical and cognitive challenges. FCCI teammates have volunteered at SCC events like Thunder by the Bay Music and Motorcycle Festival and Summerfest. “Our teammates do lots of things in the community outside of FCCI’s volunteer program. They have causes that are important to them which they support. That’s one of the things that makes FCCI so special,” Cina adds. The teammates of this multi-regional insurance carrier dedicate themselves to providing humanitarian care that makes an indelible impact 365 days a year. "That we can get resources where they're needed, quickly is what's important to us," Cina continued, "We don't need thanks or recognition. "Just knowing that we helped, that we made a difference – that's thanks enough for us."

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Our Local Prese Regional Leadership Spotlights

FLORIDA-GEORGIA REGION was also looking to write more than $50 million for the third year in a row (an FCCI record).

Michael S. Noble Senior Vice President, Florida-Georgia Region

A year of coming together 2022 was a challenging year for the Florida-Georgia Region in many ways. The effects of COVID were still being felt, and the new norm, post-COVID, started to settle in. Florida had just finished three successful years in a row with solid production and profitability. Florida was looking to turn an underwriting profit (under 100% combined ratio) for the fourth year in a row in 2022. The state 22

The year started off very well for Florida in the 1st Quarter of 2022. Early in the 2nd Quarter, the state of Georgia was added to the old Florida Region to form the Florida-Georgia Region. FCCI needed to re-focus and re-align efforts in Georgia, the second-oldest state in FCCI’s footprint. The company is very committed to Georgia. A plan was set up to rebuild the leadership in Georgia and regain the trust of our agency partners in the state. As 2022 went on, the state of Florida continued to exceed plans in written premium, new business and loss ratio. Our valued agency partners gave us their best business, and the momentum continued throughout the year. Florida ended 2022 with a new FCCI record of just over $327M in written premium

and $51.5M in new business. The new business number completed the third straight year of over $50 million in new business. This was another record for FCCI. Despite one of the largest storms in United States History, Hurricane Ian (which hit in FCCI’s own backyard), the state made an underwriting profit for the fourth year in a row. The accomplishments were amazing and a tribute to an excellent FCCI Team and valued agency partners. FCCI shined in the aftermath of the Hurricane with best-in-industry claims handling. Staffing had been an issue in Georgia for some time, and we were able to fully staff the state by the end of the year. This included adding two new leaders in the Branch, Bryan Bogardus (Vice President of the Georgia Branch) and William Cooper (Underwriting Director.) These two gentlemen were added to the Georgia leadership team that already

included Jennifer Thompson, Business Development Director for Georgia. The Georgia Branch goes into 2023 with a great deal of optimism. The new Florida-Georgia Region is ready to break more records in 2023. We are excited to partner with our valued agency partners to write your best business and take care of their customers, the insureds, better than anyone else in the industry. The FGR is poised to pass the $400M mark in 2023 and is well-positioned to get to the coveted half-billion mark in the next few years. The future is very bright!

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

ence GULF COAST REGION

Tiffany C. Hawkins Senior Vice President, Gulf Coast Region

Improving visibility, building trust and keeping promises 2022 turned out to be a record-breaking year for the Gulf Coast region. After a slow start, the Regions visibility strategy propelled them to exceed new business goals. The year-end Direct Written Premium total of $146.2 million is the most ever for the region. The Gulf Coast Region also achieved a 50% calendar year loss ratio.

The success of our visibility strategy started with leading by example and getting our leadership team in the field. With many of our agencies working from home, our teammates had to get creative in order to collaborate with our customers. As these efforts compounded, we began to see the results through increased submissions in Q3 and Q4.

states and a continued commitment to profitable growth. To do so, our team introduced Agency Partnership Principles (APP), where we looked at how to become better partners for our agents and be better prepared for our visits. We are committed to doing what we say we’ll do and to the mutual success of FCCI and our agency partners.

The underwriting team focused on Brand Awareness and building trust throughout our Regional footprint. Our Risk Control team also held a crucial role holding events, conducting training and promoting company-wide safety initiatives. I am proud of everyone for getting out there and making a difference.

One of the secrets to the Gulf Coast success is our commitment to Teammate Investment. We continue to ask ourselves how to elevate the Region and grow stronger together.

The Gulf Coast Region covers Alabama, Arkansas, Tennessee, Louisiana and Mississippi. Our team is committed to growing our market share in all five

Looking ahead to 2023, the region’s focus is to “leave no doubt”. No doubt that we will do what we say we’ll do. No doubt that we will keep our promises, and no doubt we are committed to being a consistent market for our agency partners.

The success of our visibility strategy started with leading by example and getting our leadership team in the field. 23

AGRIBUSINESS

Tracy L. Stoeckel Senior Vice President, Agribusiness

Growing together with a united vision and common goals I’m proud to mark my fifth year leading the FCCI Agribusiness team. Together we produced historical results. However, the primary reason for our success continues to be the impressive growth and development of the entire Agribusiness team. Over this time, our team has grown, finishing the year at 45-strong. We continued to hire top talent while promoting from within. We added two new underwriting supervisors and a Business Development supervisor that participated in FCCI’s Emerging Leaders Program. With this solid foundation, we focused on career development, coaching and mentoring. Several experienced and dedicated teammates earned well-deserved promotions.

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We further bolstered the team with additional trainees and a summer intern.

results through the efforts and support of our agency partners.

The Ag team works in 20 states demonstrating high skill, expertise and engagement. Clear communication and close collaboration among teammates are vital, given our geography. One way we remain cohesive is through our monthly meetings. In our Teammate Connections, we feature two teammates and get to know them even better personally. This year we also held two unique Appreciation Days to celebrate the talents of our associate underwriters and underwriting technicians.

This strong performance came with some challenges. The Ag business is particularly vulnerable to weatherrelated damages from wind, hail, tornadoes and hurricanes. While Hurricane Ian impacted the results, fortunately, only a few policyholders sustained damage. The Ag claims and underwriting teammates were out on day one, assessing damage, doing cleanup work, and providing muchneeded comfort and support.

The succession planning and onboarding programs that we developed are delivering results. Our teammates are learning, enabling them to produce quality work early in their careers. We’re all growing together under a united vision and common goals — a major success for 2022. Financially speaking, 2022 was a banner year for Agribusiness. We hit a record $129 million in direct written premium, exceeding our goal by $9 million. Of that amount, $15 million was generated from new business, topping our goal by $3 million. We achieved an exceptional 92% retention rate for policy renewals. We could only have attained these

FCCI is recognized in the Agricultural industry as a leading provider of specialty insurance. Growers, packers, shippers, farms, dairies, suppliers and more trust our Ag team to protect their businesses and livelihood.

The Ag team works in 20 states demonstrating high skill, expertise and engagement. Clear communication and close collaboration among teammates are vital, given our geography.

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

MID-ATLANTIC REGION Ultimately, we ended with direct written premiums of $111.1 million. In addition, our claim team performed exceptionally for our policyholders, paying 2,123 claims totaling $29.8 million and achieving a closing ratio of 100.4%

Courtney V. Hart Senior Vice President, Mid-Atlantic Region

Building a strong and connected team In May 2022, the Mid-Atlantic Region extended its footprint to include North and South Carolina (formerly part of the Southeast Region) to better support our teammates and serve our agents. We brought seasoned leadership to a team that had seen recent turnover and worked quickly to get to know them, understand their challenges, and connect them to an established group already serving Virginia, Maryland, Pennsylvania, and Washington, D.C. The results were outstanding. After a slow start in 2022, the Carolinas and the entire Mid-Atlantic team rallied in the last six months of the year to deliver production that was consistently above our goals as we increased our number of opportunities, won larger new business accounts, and restored confidence in our agency partners.

We also set up our region for continued success by significantly growing our opportunities in our newest expansion state of Pennsylvania which gives us great optimism going into 2023. We hired six new teammates in 2022, bringing our Mid-Atlantic family to 56 strong. We continued to hire the best people that fit our region’s culture and who follow the work ethic of “we do what we say we will”. We’ve built a high-performing team that our agency partners know and trust and who continue to provide value to our customers through creative underwriting and by out-servicing the competition. We also added 11 new agency partners which now number 197. The strength of our success has always been attributable to the relationships we have with our agents and we were fortunate to connect with not only our newly appointed agents but with our key partners throughout the territory. While many companies have eliminated outside events, the Mid-Atlantic Region hosted five successful agency events across our whole footprint in

2022. These put our team face-toface with customers to nurture those lasting relationships. The feedback was overwhelmingly positive as they appreciated FCCI taking the initiative to connect in person and it paid off through unique business opportunities and a noticeable lift in premiums. While technology can be efficient and effective, we cannot understate the value of meeting our customers person-to-person. Sadly, in July we lost a dear member of our regional family with the sudden death of Claims Manager Jack Sowers. It was a gut-wrenching shock to teammates in our region, our agency partners and the insurance industry throughout Virginia. Jack’s passing had a profound impact, both personally and professionally, on the co-workers, agents and policyholders he served throughout his career. Everyone who knew Jack respected and admired his friendship, dedication, experience and support. In his memory, the break room in our Mid-Atlantic office now bears a plaque in tribute to Jack. He will always be with us! Looking back on 2022, I can confidently say that our region finished strong and proud. We have solid leadership and phenomenal teammates in place to serve our customers and succeed in 2023. 25

MIDWEST REGION The Midwest Region appointed ten new agencies, increasing the total to 128.

Gregory L. Kramer Senior Vice President, Midwest Region

Achieving excellence by bringing us back together … teammates, agency and association partners Emerging from the pandemic in early 2022, the Midwest Region faced a delicate balance between personal impact and professional responsibilities. Visiting agencies in our states was still rare — but we did it. Our customers were ready to get together and talk business. So much of what we do is based on deepening those relationships. It’s a key differentiator for us, and it paid off with big returns. We ended 2022 with $113.8 million in direct written premium, the highest in our region’s history. Meanwhile, we shared over $1.2 million in profit-sharing checks among 41 agency partners for their strong profitability performance. 26

FCCI’s culture emphasizes that we are “better together.” Thankfully, 2022 presented opportunities to come together to renew and strengthen relationships with our agency and association partners. The Midwest Region held events that clearly impacted our success. We hosted a signature agency appreciation event at the Indianapolis Motor Speedway, a bourbon trail experience in Kentucky and other association events that brought FCCI teammates and our customers together. We consistently heard that FCCI was engaging with customers in person much more than other carriers. The ability to reunite in person with Midwest teammates was equally critical to our region’s success. In early 2022, we had teammates from our six states — Illinois, Indiana, Kentucky, Michigan, Missouri and Ohio come together for the first time in two years for a Town Hall “Hoops & Hoopla” event. Seeing everyone in the room feeding off each other’s energy set the tone for a banner year. Another team-building engagement was held at the Indianapolis Indians minor league baseball park.

The Midwest Region comprises the most teammates in the Young Professionals Group at FCCI. It’s refreshing to see the enthusiasm they display daily. At the same time, I can’t give enough praise to our seasoned professionals for the difference they make in mentoring and coaching these rising stars. I am optimistic about the future and our ability to grow and provide measurable results for the company. We met with students from local universities to support our internship and trainee programs which were essential in building our bench strength and developing the next generation of insurance industry professionals. In 2022, the Midwest added eight new teammates, bringing the region’s total to 46.

underwriting, strong pricing and making sound risk decisions. Finally, we’ll focus on making our agency visits more productive and valuable while respecting our customers’ time. I applaud the team’s resiliency and perseverance in overcoming the pandemic’s lingering effects and the aftermath of catastrophic storms. The challenges that they faced and overcame have been amazing and inspirational. MWR Peeps Rock!

2023 will be about continuing the momentum we started in 2022 and helping each other grow while producing profitable results. We will accomplish this through diligent

Emerging from the pandemic in early 2022, the Midwest Region faced a delicate balance between personal impact and professional responsibilities.

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

SOUTHWEST REGION

SURETY

Scott G. Paice Senior Vice President, Surety

Our most successful year ever for Surety 2022 was a record year for FCCI Surety! That’s been the case every year since we started writing surety bonds on January 1, 2011. We benefited from a good construction economy and carried that momentum throughout the year. 2022 marked our 12th full year of operations and was our most successful year yet. We wrote 7,808 bonds for nearly $35 million in direct written premiums. That was up 28% over 2021, including solid growth in all regions. More importantly, we finished the year with a 5% direct loss ratio attributed to discipline underwriting and excellent claims handling by our surety claims professionals. In 2022, we executed a plan to upgrade our Surety technology. I’m pleased to report that we successfully launched the

new Express Surety platform during Q4. We continue an initiative to import more data into the system for improved management reporting and analysis. Thanks to those teammates and our vendor, Tinubu, for their time and effort. This positions us well for future state expansion and growth. Surety onboarded seven new teammates in 2022, bringing the total to 29 at year-end. One of those new hires in Q4 was an experienced territory manager who will lead FCCI into the Surety market in Colorado. This person will be responsible for developing the territory, marketing and underwriting new business. We plan to make similar hires in the Northeast and Northwest, along with strengthening our presence in the Mid-Atlantic, in preparation for writing Surety bonds in 46 states by the end of 2023. We are very proud of our 2022 results and cautiously optimistic for 2023. We realize the continued strong headwinds in our industry as we face continued pressures from inflation, labor shortages and supply chain issues. Our success has been, and will always be, the product of our outstanding teammates and strong FCCI agency relationships. Thank you all for your continued trust and support!

now employs over 60 underwriting, risk control, claims and IT professionals – a great success story, indeed!

Kevin Stockton Regional Vice President, Southwest Region

A Great Success Story I had the pleasure of joining FCCI in early 2023, and becoming part of a great success story. A little over ten years ago, FCCI’s Southwest Region expansion into Texas became a reality with the issuance of our first policy on October 1, 2012.

We will thoughtfully expand our distribution in a manner that still protects the FCCI brand and franchise value our agency partners have come to know and appreciate. We look forward to the next chapters as we build an even stronger sense of community and celebrating our successes together as we continue exceeding expectations.

That success began with Jim Harms at the helm, accompanied by a handful of employees. By adding the state of Texas to our footprint, we set out to build a region that could become a another anchor for FCCI alongside our home state of Florida. I am so happy and proud to say we have made excellent progress. From that small group of teammates with no premium in 2012, we finished 2022 with nearly $130 million in premium from our commercial, agribusiness and surety operations. The Southwest Region

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Chairman’s Club FCCI’s top agency partner members Welcome to the Club!

Florida-Georgia Region

Gulf Coast Region

Southwest Region

The FCCI Chairman’s and Executive Clubs

Acrisure, LLC/Gulfshore Insurance

Fisher Brown Bottrell Insurance, Inc.

K&S Insurance

Naples, FL

Oxford, MS

Rockwall, TX

These two preeminent clubs comprise our most distinguished agency partners who demonstrate superior levels of performance and professionalism. They are committed to providing exceptional customer service to their policyholders and recognize FCCI’s appetite, service and expertise as foremost. Club members enjoy enhanced benefits and profitable growth with FCCI.

Arthur J Gallagher Risk Management Services, LLC

SouthGroup Insurance & Financial Services

Naples, FL

Ridgeland, MS

Associates Insurance Agency, Inc. Temple Terrace, FL

Ben Brown Insurance Agency, Inc. Sarasota, FL Clearwater, FL

Brown & Brown of Florida, Inc. Fort Myers, FL

Frank H Furman Insurance Pompano Beach, FL

Insurance Office of America, Inc. Altamonte Springs, FL Altamonte Springs, FL

Stahl & Associates Insurance, Inc.

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St. Petersburg, FL

AssuredPartners Great Plains, LLC/AG Marysville, OH

Marsh McLennan/Rutherford​

Brownlee Agency, Inc.

Richmond, VA

Tifton, GA

Bouchard Insurance

Sihle Insurance Group

List current as of March 31, 2023

Mid-Atlantic Region

Agribusiness

Midwest Region Energy Insurance Agency Lexington, KY

EPIC Insurance Midwest Indianapolis, IN

First Mid Insurance Group, Inc. Forsyth, IL

Gibson South Bend, IN

CHAPP, Inc. Dundee, FL

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

Executive Club FCCI’s premier agency partner members Florida-Georgia Region

Gulf Coast Region

Atlas Insurance Agency

Fitts Agency

Sarasota, FL

Tuscaloosa, AL

Baldwin Krystyn Sherman Partners

HUB International Midwest

Tampa, FL

Memphis, TN

Bateman Gordon & Sands, Inc.

McDaniel-Whitley, Inc.

Lighthouse Pt, FL 

Germantown, TN

Brown & Brown of Florida, Inc./ Central Florida

Ross & Yerger Insurance

Maitland, FL

Brown & Brown of Florida, Inc./ Fort Lauderdale

Jackson, MS

Higginbotham Insurance Agency/ Insurance & Risk Managers Brookhaven, MS

Fort Lauderdale, FL

Scott Insurance Lynchburg, VA

Towne Insurance Agency, LLC Norfolk, VA

Southwest Region INSURICA TX Insurance Services, Inc. Richardson, TX

Marsh McLennan Agency, LLC Dallas, TX

Upshaw Insurance Agency Amarillo, TX

Gil Garden Avetrani Insurance Group, LLC

Mid-Atlantic Region

Miami, FL

Consolidated Insurance Center, Inc.

​Keyes Coverage, LLC

Owings Mills, MD

Tamarac, FL

First Citizens Bank & Trust Co.

Lumbra Risk Advisors, LLC

Raleigh, NC

Maitland, FL

The Jacobs Company

M E Wilson Company, LLC

Columbia, MD

Tampa, FL

Propel Insurance Agency

Sutter, McLellan & Gilbreath, an AleraGroup Company

Columbia, SC

Listening to our agents We invite feedback from our agents through regional Agents’ Advisory Councils, Agency Partnership Conferences, new agents’ meetings, regional principals’ meetings and agency visits. We believe exceptional service for policyholders starts with a great relationship between FCCI and our agents. To each of our valued agency partners and appointed producers, thank you for your partnership. We look forward to continuing to create meaningful relationships in the coming years.

Buford, GA

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How FCCI Reached

BILLION

in Direct Written

PREMIUM

F

CCI was founded in Sarasota, Florida, on April 1, 1959. It was borne out of necessity by a group of local construction company owners who wanted to save money on the cost of workers’ compensation insurance. The fund was called the Florida Contractors and Construction Industries Self-Insurance Fund, or FCCI.

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EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

To be eligible for membership, a company had to be in the construction business as a contractor or supplier. In addition, they had to be a Sarasota General Contractors Association member or an allied affiliate member. From April 1, 1959, to April 1, 1960, the number of contractors insured by FCCI reached 28, generating $52,079 in direct written premiums (gross). Although the fund, described by T.T. Watson, one of the founding trustees, as having “started on a shoestring,” by 1962, it recorded its first profitable year in the amount of $2,322. Notably, by 1969, on FCCI’s 10th anniversary, the direct written premium had grown to just shy of $1 million. In 1976 FCCI sought state permission to expand the workers’ compensation market to businesses that were in industries outside the construction marketplace. Once approved, FCCI changed its name to Florida Construction, Commerce and Industry to better reflect the broader reach. Another trajectory-changing decision occurred in the 70s. FCCI made an agreement with the Independent Insurance Agents (IIA) of Florida to help sell its workers’ compensation product. That decision would mark one of the most successful and lasting changes in the company’s history. Just a few months after FCCI’s 25th anniversary, the adopted changes

helped mark a milestone on July 19, 1984, when FCCI wrote $1.3 million in direct written premium in one day. By the end of that year, FCCI wrote over $44 million in direct written premium – writing more workers’ compensation premium than the large national insurance companies. FCCI was listed as Florida’s 106th largest private company at that size. The growth continued, reaching a staggering $226 million in direct written premium just five years later in 1989. In 1994, after filing with the Florida Department of Insurance, FCCI transitioned from the largest selfinsurance fund into a mutual insurance company, another pivot that continues to serve the organization well. One year later, in 1995, work began on a strategic plan to expand the workers’ compensation product to other states, followed by plans in 1996 to expand into other property and casualty lines of business. Those changes prompted another move in 1998, morphing FCCI into a mutual holding insurance company. This creation was the first in Florida and the first in the nation for a property and casualty insurance company. It provided the company’s management with the ability to look at strategies on a long-term basis. Many of our competitors had to use short-term views, especially those that were stock companies. This gave FCCI

a competitive advantage then, and continues today. FCCI expanded its geographic footprint into Georgia first, then Mississippi, where Brierfield Insurance Company was created in 1999, then acquired Monroe Guaranty Insurance Company in 2000 for Midwest states, and the march for growth and other lines of business took hold. In 2009, on FCCI’s 50th anniversary, the direct written premium reached $472 million, and just thirteen years later celebrated another milestone, more than doubling the total to over $1 billion dollars. As 2022 came to a close, Cina Welch, President & CEO said, “This remarkable achievement of surpassing $1 billion dollars in direct written premium could not have happened without the partnership of our independent agencies and the trust they and the policyholders have placed in FCCI to provide them with products and services that meet their needs. We continue to look for other opportunities to broaden our footprint through state expansion and products in the near future. FCCI’s legacy and journey continue.”

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Investments in technology for better service F

or FCCI, 2022 was a critical SWOT year for identifying strengths, weaknesses, opportunities and threats in the rapidly changing domain of Information Technology (IT). Three specific corporate initiatives were outlined — how to grow the business, how to make it easier to actually do business and how to transform in certain

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areas, mainly those where operational efficiencies could be improved. Equally important, the company acknowledged the vital necessity to stay in front of fast, continually approaching advancements in technology that are happening almost daily, where one missed step or one unexpected delay could put FCCI (or any organization) into an untenable position.

In 2022, FCCI made it crystal clear — the insurance leader was investing in technology more than ever before. It was all about having the vision to see what was coming, calculating what could be done, figuring out the gaps in the company’s legacy IT systems and moving as fast as possible to get ahead of the curve. “Technology is investment,” declares Dave Patel, Senior Vice President and

Chief Information Officer. “Technology will always be continuous because things are changing so fast. There is no alternative and no easier way. If you don’t keep up, then within six months, you’ll fall behind and you may never catch up.” Since joining FCCI in January 2021, Dave has brought a determined approach to the IT department with an eye on the fastest, most efficient path forward.

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

Two of his main objectives from Day One — identifying the gaps that have creeped into some of FCCI’s legacy systems, and quickly focusing on the myriad ways that IT can expedite growth for the company. “We began by asking ourselves the question — what can we (IT) do to enable business growth in terms of product, coverages, distribution and geographical expansion?” “In 2022, we delivered the e-Surety platform upgrade in Q1 and then completed IT’s role in the Surety state expansion in Q3,” he explained. “With that, the Surety business is expected to expand into 46 states by the end of 2023.” In addition, the IT team addressed a number of vendor challenges within the commercial property and casualty business and conducted an underwriting survey, particularly on underwriter sites and field offices. The feedback they received showed that FCCI teammates had a genuine desire to always meet customers’ needs, but were sometimes getting frustrated with inefficiencies in certain systems, applications and processes. “We saw that IT needed to quickly turn around the problems they were having by addressing issues like equipment breakdown and cyber liability. Now teammates can focus on continuously

booking their business, servicing their customers and making significant headway toward more growth,” Dave emphasized.

One of FCCI’s core beliefs is that the process of “doing business” should be made as easy as possible for everyone involved, especially its teammates.

Some of the technological improvements that IT made in 2022 were not only for the internal FCCI teammates, but also for agents and their customers. Ultimately, the corporate initiative was to help the business process become more effortless for all concerned.

To that end, the IT department brought in Advance Identity Access Management and Single Sign-On capability, granting ready access to the tools that a teammate needs so they don’t have to log in repeatedly to multiple applications. Again, this is made possible through the Cloud.

Also in 2022, FCCI had the foresight and commitment to update its Agency Distribution Management platform by switching to the Cloud. This has enabled Agent / Agency appointments, Just-in-Time appointments and Agency agreements to all be handled electronically. The benefits are already being seen by the Agent / Agency Licensing and Management team, and have made it possible for seamless experiences with external producers and agents.

Another way of making it easier to do business involves Customer Communication Management. The digital SMARTCOMM platform was identified as the right solution to consistently manage FCCI’s documents and templates. Teammates are now ensured that a document gets generated from one place rather than embedded into every Claim Center application. Also implemented for the Agency Distribution Management and Claim Center was an eSignature platform.

“Look at our 2022 growth initiative,” said Dave, “and you’ll see that we really embraced the Cloud as our go-forward platform. Practically everything we’re doing now is in the Cloud.”

A third corporate initiative for IT in 2022 fell under the category of transformation. The IT department’s transformative work on the Claim Center Cloud implementation included rewriting all

Technology is investment. Dave Patel, Senior Vice President and Chief Information Officer

of FCCI’s existing integration, while redoing nearly 500 documents and 300 reports. By having this in the Cloud, IT can now continuously upgrade with all new releases and seamlessly connect to all third-party integrations. In 2022, FCCI’s billing system began migrating to the new Guidewire BillingCenter Cloud platform, while the company also continued its Data Retention and Anonymization project (an ongoing compliance initiative). At this point, Dave believes FCCI’s IT efforts are on the right track to meet its business needs, as long as the company continues to consistently invest in technology as it did in 2022. But there is still a lot to be done. “I believe that we have now set the foundation and we have set the correct pace,” he says. “We have the mindset for execution and delivery of the business needs. I’d say that we successfully achieved 90%, maybe 95%, of what was planned for 2022. I’m talking about the corporate business initiatives. But at the same time, IT was also doing a vast list of tasks that are required to simply keep FCCI functioning technologically on a daily basis.” Dave adds with a smile, “I tell people that this is how IT must work every day, in and out. There are no free lunches. There is no time to sit back and relax. If that is the case, then you shouldn’t be in IT.” 33

on the

HORIZON The continued expansion of FCCI’s Surety Team

W

hen it comes to underwriting risk with Surety bonds in 2023, FCCI is currently focusing on something it does well in the industry — recruiting the right teammates, especially in the places where they’re needed most. This is a strategy that makes perfect sense for Surety, considering that after several years of significant growth, the department is closer than ever to achieving its longtime goal of expanding the Surety team nationwide. “We expect to be in 46 states by the end of 2023,” says Scott Paice. “To do that, we

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have to hire the right people that can build those relationships or already have relationships in place. We’ll be introducing FCCI’s Surety to states that don’t know us yet. We're working to bring in the right teammates to nurture those locations.” Scott is the Senior Vice President of Surety and has been with FCCI since 2010. At that time, the company held only a small book of commercial bond business in Mississippi. But on January 1, 2011, it expanded into Contract Surety and all of the existing FCCI operating states, and has continued to grow ever since. “2022 was our best year yet, as we rounded $35 million, and ended up growing 28%,” says Scott.

“Our goal for 2023 is 10% growth, mainly because we're expecting a slowdown from the economy because of interest rates going up. You’re not going to see as many new buildings going up, although there is a lot of federal money coming out, we're not sure how much may trickle down to our size of accounts. I am expecting things to slow a bit this year.” A Contract Surety bond guarantees to the owner of a construction project that the contractor will perform the work specified by the contract and pay its subs and suppliers. This accounts for roughly 90 to 95% of what FCCI’s team handles, with the remainder in commercial.

EXCEEDING EXPECTATIONS | THE FCCI 2022 ANNUAL REPORT

Contractors are required to post Surety bonds on all federal or state projects, and for most local public projects as well. They often tend to travel to wherever the work needs to be done. According to Scott, that’s probably the biggest reason why FCCI is getting into more states with Surety — it’s important to be available where needed. “It kind of feels like we’re starting another phase, which is very exciting,” he enthuses. “It’s invigorating to be expanding so much, at least geographically. Again, on the premium side and it’s going to take time to build those relationships in the new states. But just the thought of FCCI going from 20 states to 46 states is really something to be proud of. We currently don't have plans to go into New York, California, Alaska and Hawaii.”

the underwriting appetite, things like that. But the secret with FCCI is that we’ve always been a great business that has built its success on relationships.” “In these new states where they don’t know us yet, we’ll have to prove ourselves by servicing the heck out of everything

and being totally responsive, like we currently do in our existing states,” Scott emphasizes. “We’ll work harder than anyone else to meet people, build trust and stay visible. But fortunately, those are the things that FCCI is known for doing anyway.”

To get to this point, FCCI has had to get the licensing, rates and technology all worked out in advance. But being this close to completion means that Scott is now bringing in new teammates to those new relationships. “Talent acquisition,” he nods. “That’s a key part of my job at the moment. Just trying to get the right teammates in place to be able to build the business. It all starts with people.” “Everybody charges pretty much the same rates in the Surety business. It’s more about the selection process,

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Where We Write Business FCCI writes commercial property and casualty insurance coverage in 20 states plus Washington, D.C. and 46 states for commercial and contract surety coming in 2023. FCCI is rated A (Excellent) by A.M. Best Company, and has regional and branch offices in Florida, Georgia, Indiana, Mississippi, Texas and Virginia.

Corporate Headquarters/ Florida-Georgia Regional Office 6300 University Parkway Sarasota, FL 34240

Gulf Coast Regional Office 1020 Highland Colony Parkway Suite 800 Ridgeland, MS 39157

Mid-Atlantic Regional Office 10900 Nuckols Road Suite 220 Glen Allen, VA 23060

Midwest Regional Office 13000 N. Meridian Street Suite 200 Carmel, Indiana 46032

Southwest Regional Office 2435 North Central Expressway Suite 1000 Richardson, TX 75080

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Orlando Branch Office

Georgia Branch Office

400 Colonial Center Parkway Suite 370 Lake Mary, FL 32746

1755 North Brown Road Suite 400 Lawrenceville, GA 30043

Thank you to the 830 teammates, especially the FCCI Finance Department, valued agency partners, policyholders and vendors who contributed to the FCCI 2022 Annual Report. The FCCI 2022 Annual Report was produced by the Marketing & Communications team: Lisa Adamaitis Director, Marketing & Communications

Michael Brown Visual Design Project Manager

Elizabeth Lockhart Production Coordinator

Richard Marinelli Corporate Communications Specialist

Maria-Francesca Massaro-Guglielmo Graphic Designer

Duane Padgett Vice President, Marketing & Communications

© 2023 FCCI Services Inc. 041423