2025 Annual Report to the Policyholders
A TRADITION OF PROTECTION: 40 YEARS STRONG
Dear Valued Lawyers Mutual of Kentucky Policyholders,
With tremendous pride in what we do, I am pleased to report that the state of your insurance company is strong. Thank you for choosing Lawyers Mutual of Kentucky as your trusted legal malpractice insurance provider and partner. As our 40th anniversary approaches, we remain committed to serving the legal community of Kentucky, insureds and non-insureds alike. Almost all of our resources are available to every lawyer in the Commonwealth. Our local expertise, personal service and proven claims management set us apart from other providers of legal professional liability coverage in Kentucky.
In the fall of 1986, Lawyers Mutual of Kentucky was incorporated. In the fall of 1987, the first policy was written. We are honored that 83 of the original firms/solos are still insured with Lawyers Mutual of Kentucky today. We are so grateful to Lawyers Mutual of Kentucky’s founders. They were thought leaders and innovators who recognized the need for Kentucky lawyers to have better professional liability protection. We work hard every day to execute their vision and mission. In March of 2025, Lawyers Mutual honored four of its long-time former board members who were instrumental in guiding the Company through much of its 40- year history. Congratulations to Ruth H. Baxter, John G. Prather, Jr., Daniel P. Stratton and David L. Yewell, Lawyers Mutual’s newest Directors Emeriti.
Yes, we are celebrating the nearly 40 years we’ve served the lawyers of the Commonwealth of Kentucky. But we continue to look forward and explore ways to evolve and improve so that we can continue that service for 40 more years and beyond. In 2025, we added two new partners to the Lawyers Mutual of Kentucky team of vendors. These new partners help us serve you better. Juniper Re, our new reinsurance broker ushered us through some changes to our reinsurance program that greatly reduces the variability in our predictive modeling. PNC Institutional Asset Management, our new investment partner and fiduciary, has already strengthened our investments functions resulting in increased surplus. For the first time in Company history, Lawyers Mutual of Kentucky surpassed $17.5 million in surplus to close out 2025.
The practice of law has changed dramatically over the past 40 years since our inception. Technology, particularly artificial intelligence (“AI”), is transforming how lawyers work. Cybersecurity threats, particularly wire fraud, are alive and well. In recent months, a handful of our insureds experienced significant disruption to their practices due to cybersecurity challenges. As such, we have continued our conversations with you, both via the monthly LMICK Minute and the CLEs we present, about the ethical implications around the use of AI in legal practice and ways to reduce and minimize cybersecurity risks. We don’t anticipate the need for those conversations to wane over the next year. Let us know if you are affiliated with a group who would benefit from presentations on these topics.
Lawyers Mutual of Kentucky’s operational departments are functioning well and looking ahead to ways to improve our engagement with and service to you, our insureds.
CLAIMS: Again, please join Lawyers Mutual in celebrating Jane Long who retired from LMICK at the end of 2025 after a long and successful career. Our organization is stronger because of Jane’s contributions. Jared Burke joined our team in late 2024 serving in both engagement and claims roles. He brings a wealth of experience to Lawyers Mutual, including prior claims handling experience, service as a Deputy Bar Counsel, civil practice in insurance defense, criminal prosecution and criminal defense.
Lawyers Mutual saw a bit of an increase in claims activity in 2025, but outcomes have been largely favorable. Importantly, claims severity in 2025 is lower than in the preceding two years. AI is impacting claims in that we are experiencing an uptick in pro se claimants, bolstered by AI, alleging legal negligence and asserting bar complaints.
We are providing claims data below showing which practice areas generate the highest number of claims. This data enables us to better assist in managing and mitigating risk. Lawyers Mutual’s claims team has over 100 years of collective experience in practicing law and/or managing claims. We are honored to work with you to protect your practices.
In November of 2025, one of Lawyers Mutual’s reinsurance partners conducted a claims audit. I am pleased to report that Lawyers Mutual received a very favorable audit report. The results of the audit highlight Lawyers Mutual’s strong claims handling practices and results.
UNDERWRITING: A hallmark of Lawyers Mutual’s 40-year success is disciplined and fair underwriting principles. Our growth is driven by exceptional policy loyalty as evidenced by a 93% insured retention rate. Additionally, the new business activity in 2025 was strong. At the end of 2025, Lawyers Mutual insured nearly 2,250 Kentucky lawyers.
The underwriting team moved the internal underwriting function “paperless” and are now exploring the possible implementation of a client/insured portal. Improving ways to serve our insured is always a priority.
Emma Lyons joined the underwriting team in 2025. She serves as our Office Manager, but greatly supports the underwriting function. Emma was born and raised in Belgium and speaks Dutch/Flemish and French in addition to English. She is an invaluable member of our team and is likely the first voice you hear when you contact our offices.
MARKETING and ENGAGEMENT: Our Marketing Director and Board of Director’s Marketing Committee are exploring ways to celebrate the upcoming 40th year milestone. We remain committed to offering risk management resources to assist you in avoiding claims and protecting your practices. We continue to support legal organizations and bar associations in their work to support lawyers. We value these partnerships and collaborations that help us fulfill our mission of service to lawyers across the Commonwealth.
FINANCES: None of the work I’ve described in this message would be possible without a strong financial foundation. Accompanying this message are financial statements that demonstrate the financial stability of Lawyers Mutual. Steady and strong premiums and a healthy surplus permit Lawyers Mutual to stand in the breach with you when trouble comes knocking at your doors. We are very proud of our financial condition and operating results.
For more information about Lawyer’s Mutual’s activities in 2025, please see the following reports.
Again, thank you for the trust that you put in us. As you grow and evolve, so will we. Onward – together.
Angela Logan Edwards/President and CEO