Bell-PDAIS
Insurance Finances
FROM GIL DAVIS, PRESIDENT AND CEO
OUTLOOK
SUMMARY
Fiscal 2017 was another year of progress for the Bell-PDAIS Agency. We continue
to make great strides in delivering on the strategic initiatives that we have been
working towards. Since the acquisition, we have worked to improve the operations,
products and services we offered to our customers and PDA members for more
than three years. We continue to pride ourselves on delivering competitive products
and superior service to our clients. Overall, the company’s operations, competitive
posture and foundation for profitable growth are all stronger today than a year
ago. Bell-PDAIS exists to provide competitively priced, quality insurance products
to its clients, employees and families, as charged through the endorsement of the
Pennsylvania Dental Association. This annual report will highlight in abbreviated
fashion the accomplishments of the past 12 months.
As the health care industry still remains
uncertain, we believe the worst is behind
us. Our main goal is to continue to grow
the agency in every facet of the business,
by focusing on growing the property
and casualty business that is more stable.
With the new processes that have been
implemented, we are positioned for positive
growth in the future. We currently have
a strong income statement, but until we
pay off the acquisition debt we will need
to continue to be disciplined in managing
our operational expenses and continue
effective strategies that will increase sales.
2017 Highlights
PRODUCTS/GROWTH:
• 35 employees
• Six offices - corporate office Harrisburg, Chambersburg, Hanover,
Shippensburg, Greencastle, and Mercersburg.
• Licensed in PA, NJ & MD.
• Book of Business: 39% personal lines - 45.5% commercial -
15.5% benefits.
• Combined written insurance premium $36,043,155
• 2017 gross earnings: $4,126,669.
• 2017 Gross net profit: $177,752.
• Obtained combined increase of a little over 2.5% in new written
premium growth. (TDIC granted PDA and NJ dentist policy holders a
dividend of 2% for the 13th consecutive year.)
• Received “Best in Class” award, from the Eastern Alliance Insurance
group for the fourth consecutive year.
• Continued to have a very good combined loss ratio with our top tier
property and casualty carriers.
• Showed a slight increase in new business sales and total written
premium despite health insurance industry challenges. With the
future of the individual marketplace still in turmoil we continue to see
an increase and a shift back to small group medical coverage.
• Maintained steady growth in the Affinity Personal Lines Program
through Donegal Insurance Company. (This provides all member
dentists a 5% discount on auto and home owners Insurance.)
• Maintained an overall retention of 88%.
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2018 Annual Report | Pennsylvania’s Dental Meeting
COMMITMENT
• PDAIS completed its seventh year managing the PDA Endorsed
Vendor Program, which experienced a 17% decrease in royalty
revenue. The total revenue in 2017 was $93,398 vs. $110,725 in 2016.
This is due to the termination of Bank of America Practice Solutions
Program, in Q4 2016. With the new agreement with Centric Bank, we
will see an increase in non-dues revenue for 2018.
• Added two premier companies PureLife (Amalgam Separators) and
Centric Bank (practice financing), to our Endorsed Vendor Program.
We are excited about these partnerships and the value they will bring
to PDA members.
• Bell-PDAIS continued to provide non-dues revenue to the PDA and
local dental societies with a total of $50,500.00 for a 17-year total of
$2,937,340.
• Bell-PDAIS sponsored and/or attended 37 CE, study clubs, etc.
throughout the commonwealth and 11 programs in NJ.
• Performed significant marketing campaigns and performed risk
management presentations all in the attempt to increase sales and
educate our clients.
FINANCIAL STATEMENTS
Revenue $4,126,137
Expense $3,949,385
Profit before income tax
$176,752
Income tax expense
$204,403
Net profit after income tax
(27,651)