Weaver's charts and PPT presentation on PDF is available here

A recording of Weaver's presentation is here

A very favorable financial review of LARM was presented by Mark Weaver of York Services to the LARM Board of Directors at their April 24, 2019 board meeting.

Weaver presented industry ratio tests, ten year trend graphs and a cost structure analysis to the board which all showed that LARM is in a healthy financial position.

He said that York measures financial performance using common industry ratios including: loss reserves to surplus; contributions to surplus; self-insured retention to surplus; loss and LAE to contributions; and liquid assets to liabilities.

The goal of loss reserves to surplus which show ability to withstand adverse claim development should be below 100% and LARM is well within that range at 37.2%.

The goal of contributions to surplus which shows flexibility to increase retention, increase membership or return dividends should be less than 300% and LARM is at 75.4%.

Self-insured retention to surplus which shows ability to withstand large claims should be less than 25% and LARM is at 6.8%.

Loss and LAE to contributions which shows profitability and must also be able to cover non-claim expense should be at or below 45% and LARM is at 44.6%.

The ratio of liquid assets to liabilities which shows liquidity needed to pay existing liabilities should be greater than 100% and LARM is at 196.2%.

Weaver, referring to 10 year trend graphs, said that Contributions, Net Losses, Net Loss as Percentage of Contribution, Reinsurance Cost, Reinsurance Cost as Percentage of Contribution, Other Expenses, Other Expenses as Percentage of Contribution and Year-End Surplus all showed that LARM is stable and growing.