Springfield-based ANPAC thrives as quiet success

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What may be Springfield's best-kept secret is located in Corporate Center at the corner of Glenstone Avenue and Sunshine Street. American National Property and Casualty Company, sole owner of Corporate Center, has been operating in the city for 29 years.|ret||ret||tab|

The organization has seen phenomenal growth since its incorporation in 1973, and, in fact, was ranked 24th among Springfield's top 30 employers in a recent Springfield Area Chamber of Commerce listing.|ret||ret||tab|

Eight employees were on board at the time ANPAC was incorporated. Now, the company employs more than 700. On average, five new positions are added each month, said ANPAC President Greg Ostergren.|ret||ret||tab|

ANPAC was formed in Springfield as a subsidiary of American National Insurance Company of Galveston, Texas. The company's official incorporation date was Oct. 1, 1973, and the first policy was written in February 1974 on an Opal GT owned by one of the company's masterminds, E. E. "Johnny" Johnson. The automobile sits in the executive office area at ANPAC today.|ret||ret||tab|

ANPAC offers a broad array of personal insurance lines including auto, home, boat, personal umbrella, rental owner packages, a program for motorcycle owners and a specialty car program.|ret||ret||tab|

The organization made its first acquisition in April 2001, acquiring Farm Family of Albany, N.Y., introducing a full array of farm owners packages. |ret||ret||tab|

"It brings us into northeast states we were not in before and also into the agribusiness place we were not in before," Ostergren said.|ret||ret||tab|

The $280 million acquisition will allow ANPAC to expand into rural areas the company hasn't previously tapped, he said.|ret||ret||tab|

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Growth|ret||ret||tab|

Even before the acquisition, ANPAC was one of the fastest growing companies in the United States. The company is in every state except for Alaska, Hawaii, Michigan and North Carolina. "But at some point, I'm sure we'll go into those as well," Ostergren said.|ret||ret||tab|

Since its beginning, ANPAC has seen a regular increase in growth to its annualized level of about $600 million in premiums, he said.|ret||ret||tab|

Ostergren attributes the company's success to a very focused strategic plan. "We know exactly what we want to accomplish, and we stick to it," he said. |ret||ret||tab|

ANPAC refers to its employees as team members, and Ostergren said each team member knows how he or she fits in and knows the company's goals and "works toward that end, and that's key."|ret||ret||tab|

Technology|ret||ret||tab|

Many of ANPAC's processes are automated, Ostergren said, which helps keep the expense ratio down. In fact, he said the company has the lowest expense ratio of any insurance company in the United States. "That gives us a strategic expense advantage," he said.|ret||ret||tab|

Twelve years ago, when Ostergren became ANPAC's president, it would take three to four weeks from the time an application for insurance came in to the time the policy was issued. |ret||ret||tab|

That same process today takes about one day. The company's automated underwriting system automates 80 percent of its business. The other 20 percent is sent for further handling by ANPAC's underwriters, Ostergren said.|ret||ret||tab|

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Refund program|ret||ret||tab|

An unusual program that attracts new customers to the organization and retains existing ones is the "CA$HBACK from ANPAC" program, which rewards customers for taking steps to prevent loss. Customers who have both auto and homeowners insurance with ANPAC and who remain claim-free for a period of three years receive a refund of 25 percent of their combined first-year premiums. Since the program began in l993, ANPAC has refunded $29 million nationwide. Last year, the company refunded $773,419 in Missouri. Another $34 million remains in reserves to be refunded, and that amount continues to grow each month, Ostergren said.|ret||ret||tab|

"We're constantly looking at ways to get safety information to customers and ways to reward them for taking loss mitigation actions and being claim-free," he said.|ret||ret||tab|

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Customer education|ret||ret||tab|

ANPAC makes educating its customers about how to prevent loss a top priority. The company's Web site offers helpful safety hints such as information from the Highway Loss Data Institute on the type of car to buy for safety. |ret||ret||tab|

ANPAC partnered with Better Homes and Gardens to publish a booklet, "Home Safe and Sound Your Guide to Protecting Your Family," which offers advice on fire extinguishers, electrical safety, locks for various types of windows, securing a garage and other security issues. |ret||ret||tab|

"We consider ourselves partners with our customers for loss mitigation," Ostergren said.|ret||ret||tab|

ANPAC has achieved its growth while maintaining a strictly low-key presence, with most business coming from word of mouth.|ret||ret||tab|

"I think a lot of people recognize the name ANPAC, but I'm not sure they have a good idea yet of what we do," said Debi Harper, ANPAC's director of marketing services. "Obviously, brand awareness is important to everybody, but also more so for us is that satisfied customer and the customer that wants to have that lifetime relationship with one of our agents, and then we continue to provide our products and services to their family and friends and several generations, we hope."|ret||ret||tab|

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Mail call|ret||ret||tab|

Another unusual fact about ANPAC: the company has its own ZIP code 65899. In fact, ANPAC is the largest first-class mailer in Springfield with an annual postage budget of $2.5 million. In July, the ANPAC mailroom averaged 18,000 pieces of first class mail per day, and the mailroom handled approximately 1.74 million items that month. On average, more than 5,000 pieces of mail are received each day. "I've heard we're second only to Bass Pro Shops in the amount of mail that comes through our operation," Ostergren said.|ret||ret||tab|

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Community support|ret||ret||tab|

ANPAC, with a strong employee base, has a large impact on the local economy. "We recruit a lot of college students out of SMS and Drury, particularly," Ostergren said. The post office gets a lot of business from ANPAC, and "we have within the banking community one of the largest accounts, if not the largest," Ostergren said.|ret||ret||tab|

Charitable organizations in Springfield also benefit from ANPAC's presence. ANPAC holds a car show each year to benefit children. This year, the show raised more than $10,000 for children's charities served by the United Way of the Ozarks. The company was ranked third last year in United Way giving and second the year before, according to Harper.|ret||ret||tab|

"We very much support our team members in efforts to support the community," Ostergren said. "We try in every way to be a good corporate citizen of the community."|ret||ret||tab|

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