By Suzan Fenner, Chair of the TLIE Board of Directors.
I am honored to be writing you this year as Chair of the Board of TLIE. I had big shoes to fill, following Tom Hanna, and before him, Jim Lovell, both Texas legal legends. I am happy to report that the past year has been very favorable for TLIE and its insureds, and one of the key reasons for TLIE’s recent strong performance is historically low claim frequency. While other insurance companies may have a different experience, TLIE’s insureds just aren’t being sued with the same frequency seen in earlier periods. As a result of this historically low claim frequency, as well as success in resolving several claims very favorably for our insureds, we were able to return $5,000,000 to our insureds in policyholder distributions while also increasing our policyholder surplus. A.M. Best, the insurance company rating agency, affirmed TLIE’s financial strength rating of “A” (Excellent).
TLIE’s success is no accident. We adhere to strict underwriting guidelines and maintain prudent claim reserves. We are committed to providing high quality service to our insureds, including a broad range of risk management services. We have a unique understanding of the judicial climate and how law is practiced in Texas. All of the officers of TLIE are licensed Texas attorneys. TLIE values highly the relationships developed with our members, and we believe our responsibilities extend beyond collecting premiums and paying claims to serving as a resource for education and assistance both before and after problems arise.
Lawyers professional liability insurance tends to be a cyclical business, but if claims frequency increases as it has in the past, TLIE’s strong policyholder surplus will ensure that we will be able to continue offering top quality, fairly priced professional liability insurance coverage and outstanding service to our members.
Fundamental differences exist between TLIE and commercial carriers that periodically offer to insure Texas lawyers. TLIE is owned by our member insureds and governed by a Board of Directors comprised of member insureds. In years when the premiums we collect exceed the claims we pay, we return “profits” to our members. The $5,000,000 policyholder distribution in December 2015 was TLIE’s 19th consecutive policyholder distribution, bringing the total amount returned to members to $41,550,000.
In May 2015, TLIE celebrated its 36th anniversary. When TLIE was formed in 1979, Texas lawyers faced substantial difficulty buying legal malpractice coverage at any price. TLIE was founded with the mission of providing a stable source of professional liability insurance to Texas attorneys at a financially responsible price during all market conditions. TLIE’s mission and operating philosophy have remained unchanged for over 36 years.
Thank you for your continued support in TLIE. We look forward to serving you for many years to come.
Note: Original message updated to include 2015 distribution.