Fremont Michigan InsuraCorp (fka FMMH)

[MikeDDKing]

Here are some interesting notes from the 10-K:

Web-based Rating and Automation. Major emphasis is occurring within the Information Technology area to develop and implement the Fremont Complete web-based rating and underwriting applications. During 2006 our business owners and personal automobile lines were converted to the Fremont Complete platform with very good success. By mid 2007 the homeowners, mobilowners and marine lines will be fully operational with Fremont Complete. This will include the capability for agents to make on-line endorsement and improve the ease of doing business with Fremont Insurance.

Management of Lines of Business. A primary strategy is to closely monitor and manage the profitability of each of our lines of business which include personal, commercial, farm and marine. The allocation of resources and capital to each of these categories is much like asset allocation strategy within an investment portfolio. The growth and profit opportunity of each line shifts with time and often do not move together. Strength in one category offsets weakness in another to assist in maintaining good operating results. Our product categories are broad enough to meet the overall property and casualty needs of our agents.

The strongest growth line of business in 2006 was our personal automobile area. It grew at an annualized rate of over 24%. The Company expects this rate of growth to continue during 2007. The shift in property risk associated with automobile is viewed favorably by the Company as risk balancing.

Mike