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COMPANY PROFILEFounded in 1981 in Crossville, Tennessee, The Plateau Group,Inc. is an underwriter of payment protection products and adistributor of related financial products and services throughout the United States and South Pacific Islands. Plateau servesclients in the banking, consumer finance, automotive, creditunion and retail industries. The company is considered oneof the premier providers of products and services to financialinstitutions.Plateau also holds a national reputation as aprovider of reinsurance and reinsurance accounting.AUTHORIZED STATES2The Plateau Group, Inc.

FINANCIAL PERFORMANCEFinancial Performance Resultsfor 2018 Include: Pretax income of 2,899,358 compared to 2,936,431 for2017; a decrease of 1.26%. Net after tax income of 2,216,478 compared to 2,743,244for 2017; a decrease of 19.2%. Net income per share of 1.84 compared to 2.31 for 2017; adecrease of 20.3%. Shareholders’ equity at year-end 2018 of 29,522,292( 24.55 per share) compared to 28,245,086 at year-end 2017( 23.69 per share); an increase of 4.5%. Return on equity of 7.8% for 2018 compared to 10.3% for2017. Collected insurance premium of 112,976,355 compared to 112,180,589 for 2017; an increase of 0.71%. Cash and Invested Assets at year-end were 67,959,550 compared to 69,583,526 at 2017. Investment Income of 1,209,302 compared to 1,359,164 for2017; a decrease of 11.0%. Commissions and Fee Income of 4,939,441 compared to 4,871,901 for 2017. Ratio of Operating Expenses to Operating Revenue decreasedto 26.08% in 2018 compared to 26.89% in 2017.NOTE: Total revenues, cash and invested assets and investment income used in this presentation may not coincide with theenclosed balance sheet and income statement because certain components are reclassified for GAAP presentation. The numbersdiscussed in the Letter to Shareholders and in the Analysis of Premium Section are used consistently for planning and comparison.TABLE OF CONTENTSLetter to Shareholders.4Marketing/Sales Photos.7Management Photos .8Consolidated Balance Sheet.9Consolidated Earnings.10Your ϔirst choiceShareholders’ Equity.11Plateau Associates.12Executive Committee.15Board of Directors.15Associates by Department.163

LETTER TO SHAREHOLDERSDick WilliamsPresidentTo our:Shareholders, Customers, and Prospective Customers:Plateau’s gain in net worth for 2018 was 1,277,206 which amount increased the total net worthof the Company by 4.5% to 29,522,292. Net incomefor 2018 was 2,216,478 compared to 2,743,244for 2017 a decrease of 19.2%. In comparing 2018net income to 2017, a more realistic comparison isto compare pre-tax income for each of these yearsbecause 2017 after tax earnings were bolstered by afavorable tax adjustment when Congress rewrote theU.S. Tax Code. This adjustment allowed Plateau toreduce its deferred tax liability by 458,000. Pretaxincome for 2018 was 2,899,358 compared to 2,936,431 for 2017, a decrease of 1.26%. We willnow discuss the performance of our main revenuesources for comparisons, as well as reviewing theexpense components.Collected insurance premiums were a record 112,976,355 although it was a record by the smallmargin of 0.71%. Three (one million dollar plus)producers discontinued sales of our products fordifferent reasons between 2017 and 2018. However,we attracted enough new production during42018 to end up ahead for the year by 795,766.Premiums by Market Segment and the changes for2018 are illustrated in the chart on page five (5).Underwriting income is the contribution to incomefrom these premiums less claims, commissions andpremium taxes. Underwriting income, which was 12,029,884 in 2017, fell to 11,071,137 in 2018, adecline of 958,747. Eighty percent of the declinein underwriting profits was attributable to a spike indisability claims as compared to 2017.Plateau’s second largest source of incomeis commissions and fee income. Some of ourunderwritten products such as extended servicecontracts and debt protection include fees in additionto the insurance premiums designed to generateincome to cover administrative costs. A larger portionof this source is commission income recognized fromsales of brokered products primarily in the bank andautomobile market segments. The total of this incomefor 2018 was 4,939,441 compared to 4,871,901 for2017. Plateau’s marketing team is focused on crossselling these brokered products in existing accountsand marketing them to prospects where we do nothave our basic credit insurance products in place.Investment income, our third source ofincome, is generated by investing our equity andinsurance reserves in marketable security instruments.At year-end 2018 our investment portfolio totaled 67,959,550 compared to 69,583,526 at year end2017. The reduction in invested assets was primarilyrelated to a 1,090,000 reduction of our notes payableduring 2018. Investment income generated by theinvested assets for 2018 was 1,209,302 comparedto 1,359,164 for 2017 where much of the declinewas attributable to the debt reduction, which in turnreduced the investment income from those borrowedfunds no longer invested. On the expense side, we nolonger have the interest expense on those borrowedfunds which was greater than the rate at which wecould invest those funds. More than ninety-fiveThe Plateau Group, Inc.

percent of our portfolio is invested in short termcertificates of deposit and fixed income governmentbonds. The average yield on our investments for 2018was 1.8% as we continued our conservative investmentportfolio.Technology investments and regulatory andcompliance costs have increased rapidly in the lastfew years for Plateau. At the forefront of the digitaltransformation is the safety and security of ourcustomer information. Financial Institutions sellingour products are now required to take steps to makesure we meet their regulatory requirements throughdue diligence reviews, some of which are requiredto make on-site inspections.Ultimately Plateauis required to engage an outside vendor to performtesting on our data security and provide us a writtenannual report of findings, referred to as a SOC 2,Type II, which we then provide to our customers.Even considering the rising costs of doing business,Plateau has reduced its ratio of Operating Expenses toOperating Revenue from 26.89% in 2017 to 26.08%for 2018. Many of the costs, as mentioned above,are out of our control but a reduction in the overallratio indicates we have been successful in managingthe costs within our control. Our stated goal for thisratio is 25%. We believe we can achieve this targetin the next couple of years. The revenue componentof the ratio includes our underwriting margin andthe commission and fee income but does not includeinvestment income. The expense component includesall general overhead and interest expense, but does notinclude commissions paid, claims or premium taxesas they have been included in the calculation of ourunderwriting margin.The financial insurance services market is ina challenging environment. Diversification, bothgeographically and through products, is increasinglyimportant for Plateau. Our product mix has shiftedfrom the majority being life and disability productsto the majority being property and casualty insuranceproducts. To illustrate the shift, our life company,Plateau Insurance Company (PIC) produced over 55.3 million of premium in 2015 compared toproperty and casualty premiums at Plateau CasualtyInsurance Company (PCIC) of 44.6 million the sameyear. In 2018 PCIC produced 64.3 million comparedto 48.7 for PIC.Your ϔirst choiceCredit life and credit disability haveexperienced the greatest decline for PIC. Automobiledealers, commercial banks and other sales financeoutlets (Recreational Vehicles, marine, furniture stores)are selling these products at much lower levels than inprior years. This reduction is industry wide. Banksare making far fewer consumer loans where the creditproducts are offered and on the loans that are eligiblefor these products, the products are not offered to thedegree they were in the past. Automobile dealers haveshifted to other products including extended servicecontracts, GAP waivers and other vehicle protectionproducts which we also offer. Consumer financecompanies continue to sell credit life and disabilityalong with property products just as they have donefor many years.PIC has experienced growth in a couple of“monthly pay” products. When Transamerica exitedthe payment protection business in 2016 it had severalmillion dollars of Group Mortgage premium on itsbooks. For PIC to obtain that business, the creditorshad to agree for PIC to execute a takeover and replacethe Transamerica certificates with PIC certificates. Wehave replaced about 2 million of that business in thelast two years and have identified approximately 1.5million more and we are discussing with the creditorsto move the business to PIC. The other monthlypay product is accidental death insurance which isoffered by one of our vendors on deposit accountswith commercial banks where we have replaced anexisting underwriter. During the fourth quarter of2018 and the first quarter of 2019, we have taken overapproximately 2.5 million in annual premium of thisbusiness, the majority of which will be recognized in2019.5

PCIC’s premium grew 4.5 million in 2018and 19.7 million since 2015. The combined growthof premium of PIC and PCIC has been 13 millionsince 2015. The majority of the business opportunitiesour management team has reviewed in the past fewyears have required property and casualty productswith the primary product being a contractual liabilityinsurance policy (CLIP).CLIP’s are issued toassume the contractual obligations of debt protection,GAP waivers, and extended service contracts. Theseentities often seek PCIC, as a company rated A- orbetter by A.M. Best Company, to issue a CLIP toa third-party administrator (TPA) who providesproduct administration, including adjudicatingclaims. We collect premium to ultimately insurethe product or the performance of the administrator.These arrangements allow us to recognize incomeas the ultimate underwriter but with less demand forincreased staffing and associated expenses at our homeoffice. In these arrangements we review the actuarialsoundness of the product and its rates and perform adue diligence review on the TPA. Both PIC and PCIChave some of these business arrangements in placebut the majority we have reviewed have required aCLIP policy from PCIC. A TPA agreement typicallyproduces less income thereby putting downwardpressure on our insurance margin, but which shouldnot have an unfavorable impact on our ratio ofoperating expenses to operating revenue since we arenot providing administration.In 2018, with a need to provide extendedservice agreements in Florida, we formed a newsubsidiary of PCIC called Plateau Warranty Company(PWC). PWC is a Tennessee corporation holding whatis called a 634 license in Florida. The requirementsto provide service agreements in Florida are unique,and state specific, requiring us to hold this licenseto compete therein. We expect to report successfulproduction for PWC during 2019.6On a regular basis we witness our associatesputting forth extraordinary efforts to provide customerservice. We continue to emphasize the criticalimportance of understanding our customers and theirneeds, which is the essence of superior customerservice. We now have about eighty-five associatesat our Crossville headquarters and there are twentyphotos on our entry wall of associates who have beenwith Plateau at least twenty-five years. These photosconfirm that our associates believe Plateau is a goodplace to spend their working hours. I thank them forbeing committed to our culture.I would like to recognize and thank JimEngland and David Williamson for their yearsof service to Plateau by serving on our Board ofDirectors. Jim served two periods of time on ourboard, from 1988 to 1994 and again from 2009 to2019, taking a break while he served as Chairman ofthe Tennessee Bankers Association and having othertime commitments. David has served for 14 years(2005-2019). Each has other commitments now andare not up for re-election. Jim and David have beenvaluable resources for Plateau. I appreciate theircontributions.I offer a sincere thanks for your continuedpartnership, trust and investment in our Company, ourculture and our people. We look forward to workinghard in 2019 and in the years to come to deliver thevalue and service you have come to expect fromPlateau.Regards,PresidentThe Plateau Group, Inc.

MARKETING/SALES DEVELOPMENTReed GassChief Marketing OfficerThom HaganMiddle TennesseeDavid GreeneWest TennesseeDoyle KellySoutheastGreg JanssenIndianaBob JoyceNortheastDave KarrFinancial InstitutionsAndrea BowerKansasTony SnowIndianaMelody Williams, PhDDirector of TrainingBill ElliottClient ManagementJohn KellySoutheast AgentYour ϔirst choiceCameron RogersEast TennesseeMichael BoozerSouth Carolina Agent7

MANAGEMENTDavid Hardegree, CPAChief Financial OfficerExecutive Vice PresidentEuretha RobertsSr. VIce PresidentOperationsMike GrahamSr. Vice PresidentReinsurance AccountingEric ShaverSr. Vice PresidentInformation TechnologyMichael Ramsey, CPAVice PresidentTreasurerSkip DavisSr. Vice PresidentProducts/MarketingSteve DouglasVice PresidentGeneral CounselElaine Pelletier, FSA, MAAASr. Vice PresidentActuarySharon Tabor,Vice PresidentProperty & CasualtyTerri HammonsVice PresidentAgent Services8Shelia NewberryVice PresidentTitle InsuranceSissie TurnerVice PresidentGroup Mortgage/MOBSandy WhitsonVice PresidentPremium ProcessingDeedy AdamsVice PresidentComplianceDoris DavisVice PresidentCredit ClaimsJudy HicksVice PresidentAccountingJoy WhitedVice PresidentUnderwritingThe Plateau Group, Inc.

CONSOLIDATED BALANCE SHEETYour ϔirst choice9

CONSOLIDATED EARNINGS10The Plateau Group, Inc.

Your ϔirst choice11CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

PLATEAU ASSOCIATESApril Fagan, AVPCredit ClaimsRenee HolbrookCredit ClaimsKimberly VincentCredit ClaimsErin Young, AVPCredit OperationsVictoria SteppCredit ClaimsJessie WalkerCredit ClaimsPamela JonesCredit ClaimsMollie SmithCredit ClaimsJo ReaganCredit OperationsTonya IlesCredit OperationsBrandy FlynnCredit OperationsSarah RaryCredit OperationsLeanne LandersCredit OperationsJoshua VanWinkleCredit OperationsTasha HigdonCredit OperationsTiffany ThompsonCredit OperationsCassie IlesCredit OperationsJackie WilbanksGroup Mortgage/MOBShaina HardyGroup Mortgage/MOBKelley MillerGroup Mortgage/MOBHannah LauGroup Mortgage/MOBSandra BradberryUnderwritingBecky JohnstonUnderwritingMeredith MullenUnderwriting12Dana RedwineUnderwritingBre WeidnerCredit OperationsBrandy AdkinsUnderwritingThe Plateau Group, Inc.

PLATEAU ASSOCIATESKeli SmithAgent ServicesMargaret MullinaxAgent ServicesMelissa DyerTitle ServicesMary Franc GrahamComplianceDaniel CareyInformation TechnologyJoAnn RamseyInformation TechnologyLeeAnn Roberts, AVPP&C/AutoYour ϔirst choiceHeather JohnsonP&C/AutoAmanda DyerAgent ServicesAndrew EllerAgent ServicesJessica HawnLicensingMegan SherrillLicensingAlexis DeiblerComplianceBeverly JollyComplianceJames HallComplianceEric Shaver IIInformation TechnologySecurity OfficerTroy BolenInformation TechnologyWhitney HenryP&C/AutoSkye PearsonJulie HowardGreg BaughmanInformation Technology Information Technology Information TechnologyCammie ElmoreP&C/AutoBrandi WyattP&C/AutoCindy Guerin-CouchP&C/Auto13

PLATEAU ASSOCIATESVicki MasonGeneral ServicesTracy Graham, AVPAccountingVicki CarlsonGeneral ServicesStephanie CareyGeneral ServicesBrett SuggsGeneral ServicesLaura LooneyGeneral ServicesGlenna JacksonGeneral ServicesMargaret SmithAccountingLynette DurantAccountingChristy ReedAccountingMichele StandeferAccountingScarlett Sapp-HolmesAccountingNick DonathanReinsuranceJohnnie WhittenburgReinsuranceKaye BarnettReinsuranceHannah VanWinkleReinsuranceCrystal DavidsonReinsuranceMartha LindsayPlateau WestAndrea ShumatePlateau WestNatasha CollinsPlateau WestTamara BurtonPlateau West14The Plateau Group, Inc.

EXECUTIVE COMMITTEESteve Miller, ChairmanThe Plateau Group, Inc.Crossville, TNJohn BrunoBrentwood, TNDick Williams, PresidentThe Plateau Group, Inc.Crossville, TNWib Evans, PresidentFirst Bank VenturesLexington, TNJohn Barker, CEOCitizens Tri-County BankDunlap, TNJohn HaileCleveland, TNBOARD OF DIRECTORSDavid Barnes, PresidentBank of FrankewingFrankewing, TNRandy Graham, President, CEOFirst National Bank of TennesseeLivingston, TNAndy Nash, EVPThe Farmers BankPortland, TNBill Bates, CEOBank of Perry CountyLobelville, TNDavid Hardegree, CFOThe Plateau Group, Inc.Crossville, TN 38555David Williamson, President, CEOBank of Putnam CountyCookeville, TNJames England, ChairmanDecatur County BankDecaturville, TNMark Hayes, Chairman, CEOFirst National BankPulaski, TNChad Wilson, PresidentFoundation Bank/McKenzie Banking Co.Jackson, TNCraig Fitzhugh, Chairman, CEOBank of RipleyRipley, TNWright Hickerson, III, DirectorFCB CorporationManchester, TNYour ϔirst choice15

ASSOCIATES BY DEPARTMENTCorporateAgent ServicesComplianceDick WilliamsDavid Hardegree, CPAEuretha RobertsMike GrahamEric ShaverSkip DavisElaine Pelle er, FSA, MAAASteven Douglas, ATTYBill EllioTerri HammonsKeli SmithMargaret MullinaxAmanda DyerAndrew EllerJessica HawnMegan SherrillDeedy AdamsBeverly JollyAlexis DeiblerMary Franc Graham, ATTYJames HallMarke ng StaffReed GassThom HaganDavid GreeneCameron RogersDoyle KellyBob JoyceGreg JanssenTony SnowAndrea BowerDave KarrMelody Williams, PhD, TrainerMarke ng AgentsJim SmarHank LovedayDonna BrownMichael BoozerJohn KellyInforma on TechnologyEric ShaverJoAnn RamseyDaniel CareyTroy BolenEric Shaver IISkye PearsonGreg BaughmanJulie HowardGarre DavisGroup Mortgage/MOBSissie TurnerJackie WilbanksShaina HardyKelley MillerHannah Lau16Credit Opera onsSandy WhitsonGeneral ServicesVicki MasonVicki CarlsonStephanie CareyLaura LooneyBre SuggsCraig WyaJewell SelbyGlenna JacksonCorporate Accoun ngMichael Ramsey, CPAJudy HicksMargaret SmithTracy GrahamChristy ReedLyne e DurantScarlet SappMichele StandeferReinsurance Accoun ngMike GrahamJohnnie Whi enburgKaye BarneHannah VanWinkleCrystal DavidsonNick DonathanP & C / AutoSharon TaborLeeAnn RobertsHeather JohnsonWhitney HenryCammie ElmoreBrandi WyaCindy Guerin-CouchErin YoungJo ReaganJoshua VanWinkleTasha HigdonTonya IlesBre WeidnerSarah RaryTiffany ThompsonBrandy FlynnCassie IlesLeanne LandersHenri CalahanUnderwri ngJoy WhitedSandra BradberryBecky JohnstonMeredith MullenDana RedwineBrandy AdkinsCredit ClaimsDoris DavisApril FaganKimberly VincentVictoria HoustonJessie WalkerRenee HolbrookPamela JonesMollie SmithPlateau WestMartha LindsayNatasha CollinsTamara BurtonAndrea ShumateTitle InsuranceShelia NewberryMelissa DyerThe Plateau Group, Inc.

PLATEAU CUSTOMERSPLATEAU CORPORATE OFFICECrossville, TennesseeYour ϔirst choice17

18The Plateau Group, Inc.

to the majority being property and casualty insurance products. To illustrate the shift, our life company, Plateau Insurance Company (PIC) produced over 55.3 million of premium in 2015 compared to property and casualty premiums at Plateau Casualty Insurance Company (PCIC) of 44.6 million the same year. In 2018 PCIC produced 64.3 million compared

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