Letter from the Chairperson

The Board of Directors of the Ohio School Plan (the "Plan") is pleased to present the Plan's annual financial results. 2010 marked the Plan’s ninth year of providing best in class service along with innovative coverage solutions.

Highlights from fiscal 2010 are as follows:
Welcome to the Ohio School Plan community colleges! In 2010, Ohio's community colleges were deemed eligible to participate in the Plan. Due diligence performed by the Board, Plan Counsel, and Plan Administrator verified that community colleges qualified under Ohio Revised Code 2744. Furthermore, their risk profile met with underwriting guidelines. The Plan welcomed two community colleges in 2010 and looks forward to welcoming more in 2011.

Plan surplus increased 10% or $194,276 in 2010. Surplus as of December 31, 2010 stands in excess of $2.1 million. By continuing to build surplus, the Plan puts itself in a better position to provide additional member benefits and services. Further to this point, the Plan’s surplus-to-retention ratio is approximately 14 to 1, which exceeds the Board's benchmark goal of 10 to 1. This means the Plan is retaining risk equal to its capital structure.

Overall Plan operations provided cash flow of $247,072 and increased assets 5% or $197,283 during 2010.

Notable expense changes center around loss and loss adjustment expenses ("LAE"). Loss and LAE increased approximately $350,000. The change is related to an increase in the Plan's aggregate property retention. In 2010, the Plan's property aggregate stands at $1.2 million.
Revenues exceeded expenses by $194,276.

While 2010 was a positive year in terms of growth in surplus and Plan assets, challenges still lie ahead. Looking forward, recent property losses experienced by the Plan, coupled with the property losses experienced in Japan, Australia and New Zealand will put pressure on property programs in Ohio and globally. The Board and Plan Administrator will continue to monitor market conditions to ensure program stability, while continuing to provide innovative solutions to meet our members’ needs.

We know schools. Our board and our members are exclusively educational entities, boards of developmental disabilities and community colleges. In addition to traditional coverage, we have been able to meet member insurance needs by developing specialized coverage, such as violence and fiduciary.

Nearly 10 years later, with approximately 250 members and $2.1 million in equity, we are able to provide consistent pricing through alternating market cycles while maintaining excellent service. Concentrating on long-term member benefits versus short-term profits allows the Ohio School Plan to align our interests with our members' interests.

Sincerely,
Megan Williams
Ohio School Plan Board Chairperson
Treasurer, Scioto Valley Local School District