2008 TMLT Annual Report

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PRESIDENT’S MESSAGEBOB R. FIELDSPresident and CEOMany will remember 2008 as the yearour economy suffered its worst collapsesince The Great Depression. Billions ofdollars were lost in the stock market,millions of workers lost their jobs andunprecedented government bailouts wereneeded to prevent several huge companiesfrom failing. It was a year that separatedthe weak from the strong, the companieswith proactive vision from those withreactive leadership.At TMLT we have long believed ina conservative investment philosophy,keeping our investments in equities insmall percentages of our overall investmentportfolio. Some of our competitors werewilling to take greater risks for higher gainsand experienced substantial capital lossesby year-end. Their balance sheets sufferedfrom their lack of respect for risk.Our good news to policyholders is that,despite the economic challenges of 2008,TMLT was successful in increasing itsprofit from last year and building policyholdersurplus for the seventh straightyear. By controlling our claims and underwritingcosts, by achieving excellent policyholderretention, and by continuing to writenew business, TMLT was able to produceoutstanding results again in 2008. Thissuccess enabled the Trust to finalize conversionto a new, state-of-the-art softwaresystem. It also enabled us to purchase, forthe first time in our 30-year history, our ownoffice building. TMLT is now the proudowner of the 120,000 square foot, five storybuilding shown on the front cover of thisannual report.During 2008, we were once againpleased to announce an average 4.7%rate reduction for 2009, our sixth straightrate reduction since 2003 tort reform. Inaddition, we announced our fourth consecutivedividend for 2009. A credit of 22.5%will be applied to renewing policies. Theresult of all those cumulative rate reductionsand dividends means that a renewingpolicyholder in 2009 will be paying about50% of what he or she paid for medicalliability insurance in 2003. What otherproduct or service can you purchase athalf the 2003 cost? Obviously, tort reformworks—not only for the benefit of physicians,but also for their patients throughgreater access to healthcare.One of the keys to our organization’ssuccess is our unique structure. We area self-insurance trust owned by physiciansand governed by physicians. Ournine physician governing board members,elected by the policyholders of TMLT, areclosely involved in all major decisions ofthe Trust. These include claim philosophyand defense of Trust members; underwriting2008 Executive TeamBob R. FieldsPresident and CEOJohn AlexanderSr. Vice President - Underwriting ServicesRay DemelSr. Vice President - Chief Financial OfficerGail NicholsVice President - Human Resources& Admin. ServicesJane HolemanVice President - Risk ManagementJill McLainSr. Vice President - Claim OperationsDon ChowSr. Vice President - Sales & MarketingTreg RussellVice President - Management InformationSystemsDana LeidigVice President - Communications & Advert.4
and sales; risk management; rate settingand dividend approval; donations by theTrust; and, protecting tort reform.Another key to TMLT’s success hasbeen the talent and performance of its165 member staff shown on the last pageof this report. Many of these outstandingemployees have been with the Trust forover twenty years and serve as leadersand key members of our team. It hasbeen through the efforts of our dedicatedstaff, coupled with the support of ourphysician board members, that TMLThas achieved its leadership position inthe Texas market. I have worked withthese employees for many years, I havewitnessed their creativity and drive, andI am exceedingly proud of their contributionsto our company.In our organizational model, whichhas stood the test of time, profit is notour main objective. Providing the highestquality insurance coverage for the lowestpossible price is our number one goal,year in and year out. The preservationof your livelihood and reputation is whyTMLT was created and wrote its firstpolicy on January 1, 1979.History shows that some of ourcompetitors will distribute excessearnings and profits to stockholders orinvestors. TMLT uses excess earningsto lower rates and expand coverage forits physician members.During the first five months of 2009,our TMLT legislative team will beworking closely with our friends at TMAand the Texas Alliance for Patient Access(TAPA) to protect our hard-fought gainsin 2003 tort reform. In addition, we wantto keep the regulation of TMLT withinthe hands of our physician membersand governing board. They have done awonderful job of overseeing the managementof the Trust for 30 years and there isno need to make any changes now.As you read the rest of this annualreport and learn of our successes achievedin 2008, I hope you will be proud of theorganization your physician colleaguescreated long ago. They had a specialdream of founding an organization thatwould insure doctors in all specialties andterritories in Texas and that would standstrongly behind doctors even during yearswhen the business climate was unfavorable.With your help, together we havemade their dream come true.Bob R. FieldsPresident & CEOBack row (l-r): Jane Holeman, Treg Russell, Gail Nichols, Jill McLain, John Alexander, Dana Leidig, Don Chow.Front row (l-r): Bob R. Fields, Ray Demel.5
Page 4 and 5: CHAIRMAN’S MESSAGEDAVE W. KITTREL
Page 8: Claim OperationsJill MclainSr. Vice
Page 11 and 12: # of ParticipantsOnly 56 physicians
Page 13 and 14: April 5, 2002Texas Governor Rick Pe
Page 15 and 16: that augments lasting financial sta
Page 18 and 19: SUPPORT SERVICESGAIL NICHOLSVice Pr
Page 20 and 21: MESSAGE FROM THE CFORAY DEMELSr. Vi
Page 22 and 23: FINANCIALSCondensed Consolidated Fi

2008 TMLT Annual Report

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