STRATEGIC ALLIANCES
Who We Are
Strategic Alliances’ primary solutions are medical stop loss and direct first dollar benefits. Employers and health plans use stop loss coverage as a risk management tool to mitigate catastrophic risk. Employers offer our direct benefits to employees as an affordable way to support their individual health insurance needs. In addition to our direct-to-market stop loss model, Strategic Alliances maintains distribution and operating relationships with a variety of excellent insurance marketing and administrative partners. We also participate in the growing market for Medicare Supplement insurance.
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2017 ACCOMPLISHMENTS
2017 marked the initiation of our AF Direct stop loss sales and operation model. Commencing with our first sale in the second quarter we progressed to exceed our target premium levels for the year. This success reflected our team’s initiative and focus on key TPA and broker distribution relationships. These distribution partners are aligned with our market strategy to bring stable, value-added solutions to employers that complement the partner’s core competencies. Although our Managing General Underwriter (MGU) production declined in 2017 as the result of many factors, we are pleased that we maintained stop loss distribution relationships with a number of quality MGUs. Total earned premium for all products exceeded our budgeted level by 3.3 percent, a reflection of our successful roll out of AF Direct stop loss, continued MGU support and increased sales of Medicare Supplement coverage.
2018 GOALS
In 2018, our earned premium target is an increase of 11.8 percent. We anticipate consistent strong growth from our direct stop loss sector, supported by continuing growth from our Medicare Supplement programs and independent distribution partners. Within AF we are continuing to build on distribution relationships with AWD and AFES that have promise for future collaboration.
Our move to the direct stop loss model affords us improved loss ratio management, underwriting control and expense ratio management. These are essential components in 2018. Market movement to more rational pricing and continued market exit of some quality competitors will also strengthen our earnings position. Our anticipated earned premium growth will enhance our excellent expense ratio, contributing to improved margins.
As always 2018 will remain a dynamic legislative and regulatory period. Our division Colleagues, with the support of our outstanding corporate resources, will continue to respond effectively to client needs as
they evolve. We look forward to our ability to leverage the unique qualities of AF in creating prompt solutions for our partners and clients.
Marc Marion
Strategic Alliances Chief Operating Officer
