ANNUAL REPORT 2023We Keep Our Promises To be an uncommonly different insurance company, known for serving our employees, members, agents, and community with fairness and compassion. Provide an Exceptional Experience We know our members: We act with fairness, integrity, and compassion to provide comprehensive service to agents, members, and our community. We anticipate member needs and sustain a positive member-centric environment that supports a fair and timely resolution of all transactions. We leverage agent and member feedback to enhance operations. We make service a market differentiator. Attract, Retain, and Develop Exemplary Talent We value and care about our employees: We develop deep technical expertise, nurture positive interactions, align skills with responsibilities, while empowering leaders who support strategies that ensure “right people - right roles - right time.” We invest in our employees to create satisfying careers within the company. Maintain Financial Stability We are fiscally responsible: We create consistent stakeholder value and maintain capital at or above target levels required to sustain appropriate ratings. We invest wisely in the business to ensure adequate return on surplus while optimizing product mix, coverages, and superior customer service levels that support the attraction and retention of profitable business. Align Products and Services with Member Expectations We exist to serve our members: We identify and develop competitive products that satisfy members’ current and prospective needs. We create a competitive advantage by successfully leveraging data, management information, and technology to drive innovative business decisions. Create and Sustain a Dynamic Workplace We value and invest in our workplace culture: We maximize our organization’s effectiveness by leveraging the unique talents of each team member. We create an atmosphere for constructive problem solving and encourage appropriate risk taking. We respectfully hold each other accountable. Exhibit Operational Excellence We prioritize operational effectiveness: We maintain a forward-looking, continuous improvement mindset driving consistent and efficient workflows and processes across all lines, functions, and operations. We look for ways to test change, vary methodologies, and otherwise learn and adapt to ensure all activities align with the current and prospective needs of our members, agents and business partners. Technology Supports Our Mission We value and adapt with technology: We utilize technology across all lines to streamline workflows and business processes, while enabling effective interactions with members and agents. We capture critical business information needed to enable effective data driven business decisions. MISSIONVISION OUR GUIDING PRINCIPLES Working to Earn Your Trust Every Day Our mission is to provide comprehensive property and casualty insurance products of the highest quality and to conduct our business by biblical principles of love, justice and integrity. PAGE 2 GOODVILLE MUTUAL INSURANCE GROUPGoodville has always focused on being an effective underwriting company, which requires being selective about what risk we assume and carefully matching risk and rate. The disruptive events of the past year required us to increase our focus on underwriting and rate adequacy. Despite our efforts, the Group will experience its first underwriting loss in over 20 years. Improved investment results will reduce the underwriting loss, but not enough to maintain profitability. On a positive note, our member base grew at a rapid pace, providing increased scale to support our long-term sustainability. Despite the year’s challenges, Goodville remains financially strong and prepared to serve our members well into the future. AM Best reaffirmed our “A” rating for another year, along with the Wards Group listing Goodville in the nation’s Top 50 Property & Casualty companies, recognizing our long term consistently superior financial performance for the 14 th consecutive year! We continue to invest in the future with a keen focus on the member experience. Our teams remain focused on serving our members and agents alike and we are committed to our mutual success! David C. Gautsche – President & CEO The role of a mutual insurance company is to pool the risk of members and absorb the volatility of claim events, spreading those costs over a time that is manageable for the members. We embrace that mission and purpose and consider it our reason for existence! Last January we launched the year with an abundance of optimism! As we moved through 2023, normal work routines returned, but the negative financial impacts of the pandemic and the disruption of our industry was only beginning! Significant headwinds, caused by increasing frequency of catastrophic weather events, rising reinsurance costs and dramatic loss cost inflation, created an insurance market unlike anything we have seen in decades. Goodville is fortunate to be strong financially and organizationally, and well prepared to adapt to a dynamic marketplace. While the industry reacted quickly and aggressively, we chose to take a long-term view and remain committed to our Guiding Principles and historical values by continuing to provide capacity to our agency partners and adjusting rates at a slower pace to allow our members time to adjust. In addition to facing these challenges, we also took significant steps to ensure our growth and sustainability well into the future: • In January, De Smet Farm Mutual of South Dakota and its affiliate joined the Goodville Group through affiliation. You will find additional information about this exciting event later in the report. • Our Farm and Commercial segments continued to grow – through the affiliation and organically – which improves the diversification of our member base. • We invested in our growing and talented team of employees to ensure that we have the technical skills to compete and the capacity to deliver a positive member experience. 2010 - 2023 PRESIDENT’S MESSAGE PAGE 1PAGE 2 GOODVILLE MUTUAL INSURANCE GROUP Goodville’s focus has consistently been on serving our members and agents with a high level of service and consistent capacity, and the result has been steady, organic growth. Periodically our industry experiences events that impact individual companies and the entire industry as a whole. In May of 2022 a derecho swept through eastern South Dakota and bordering states, causing widespread damage to every property in its path, and ultimately brought De Smet and Goodville together through affiliation. De Smet Farm Mutual of South Dakota was formed in 1916 by a group of nine farmers who saw a need in their community. Eastern South Dakota is a rural, agricultural community and was not well represented by the insurance carriers of the day. With a Farm Mutual structure they were able to form a member focused company with a unique understanding of the needs of the Ag community. That focus continues to this day! Goodville has served the agricultural community since its founding in 1926 and our business plan has been focused on growing this segment for some time. The storm event created a need for De Smet and the affiliation of the companies aligned with a strategic goal for Goodville’s growth. The addition of De Smet to the Goodville Mutual Insurance Group not only provides growth in the farm segment, but also adds additional geographic diversification which benefits both companies. Even more importantly, the values and culture of De Smet are well aligned with Goodville’s mission and vision. Over the coming years the management teams will work to find additional efficiencies that will benefit the members of all the companies within the Group. DE SMET FARM MUTUAL INSURANCE COMPANY OF SOUTH DAKOTA Mt. RushmoreDe Smet Headquarters PAGE 3 Badlands National Park Sioux Falls 55 Employees at De Smet Farm Mutual 33,984 Policies in force $62,739,504 Direct Written Premium 39% Personal Auto 37% Farmowners 24% Homeowners 72 Agencies P r e m i u m Br e ak d o w n b y L i n e o f B u s i n e s sThe sense of mutuality continues to be embedded in the culture of Goodville. Shaped by organizational values and the collective efforts of its people, in 2023 we made a significant investment in the culture and employee development with the launch of Goodville University. This new initiative and dedicated space within the New Holland office, serves as a hub for continuous learning, fostering both individual and group experiences and to enhance employee well-being and development. Under the “Good You” umbrella, a range of initiatives, including the Summer Internship, Career Pathing Project, Change Management, Training Video Project, and “You Belong” for Diversity, along with Goodville Athletics, form the foundation of Goodville University. These offerings provide a comprehensive platform for personal and professional growth, emphasizing our commitment to collective development. The pinnacle of 2023 featured a significant collaboration with LinkedIn Learning, providing instant access to over 15,000 online courses taught by industry-leading professionals. This strategic partnership positions Goodville University to substantially contribute to the holistic development of our employees. Looking ahead, this foundation of success promises to foster a more fulfilling work environment for our remarkable employees. Goodville University is not merely an initiative; it embodies a steadfast commitment to the ongoing success and well-being of our Goodville family. INVESTING IN PEOPLE AND THE GOODVILLE CULTURE 2023 GOODVILLE MUTUAL INSURANCE GROUP PAGE 4Employee Milestone Anniversaries 45 35 30 25 20 15 10 5 Employee Retirements YEARS Gary Simmons Miriam Bracken – Phyllis Knape – Product and Compliance Support – Julie Stoltzfus – Senior Product Owner – Kevin Miller – Senior Systems Administrator – John Cascarella – Senior Claims Representative II – Sue Kuzniar – Senior Underwriter I – Nate Waite – Director of Architecture and Cyber Security – Alice Heaps – Office Services Specialist – Nancy Tonjes – Underwriting Support Specialist I – JB Martin – Senior Claims Representative I – Jim Tobias – Field Property Claims Representative – Karl Browning – Cyber Security Analyst – Deb Schaffner – Scrum Master I – Angie Howard – Underwriter II – Cathy Gardner – Personal Lines Underwriting Manager – Emily Hertzler – Executive Assistant – Ranee Zimmerman –Underwriting Support Specialist II – Dawn Cogswell – Senior Software Developer I – Beth Carson –Assistant Underwriter – Bruce Brizzi – Vice President of Marketing – Andrew Hostetler – Underwriter II – Eddie Zayas – Product Owner II – Janis Yoder – Claims Rep II – Tom Reimer – Facilities Manager New Holland – Wayne Hohler – Project Portfolio Manager – Ryan Sheckler – Controller - Accounting – Mark Troyer Senior Commercial Lines Underwriter 35 years of service - February 3 rd Gary Simmons Senior Commercial Auto Underwriter 45 years of service - June 16 th Susan Brendle Personal Auto Underwriting Processor Group Leader 20 years of service - April 28 th LeAnn Hartzler Senior Agent & Member Support Specialist 16 years of service - September 1 st Neil Giffey Loss Control Inspector – Napolean, OH 23 years of service - September 30 th Phyllis Knape Product and Compliance Support 35 years of service - June 1 st PAGE 5PENNSYLVANIA OHIO 52 INDIANA 29 ILLINOIS 16 KANSAS 21 SOUTH DAKOTA 72 OKLAHOMA 5 VIRGINIA 37 DELAWARE 6 86 124 GMCC LMIC CHARITY OF CHOICE Total of $33,000 donated to essential community resources Our Charity of Choice campaign is dedicated to supporting local community resources through the collaboration of independent agents in their area. The primary objective is to secure funds for the communities where our members reside, and our agents serve. The 2023 Charity of Choice initiative once again connected our Partner and Preferred agents to over 30 charities in their local communities, donating over $30,000 to vital services such as food banks, shelters and child and family services. We extend our gratitude to our participating agents and helping Goodville reach those vital resources in your communities. Direct Written Premium by State for 2023 Pennsylvania $13O,238,474 South Dakota $62,739,5O4 Ohio $47,467,782 Kansas $26,223,15O Virginia $23,222,455 Oklahoma $13,174,113 Indiana $1O,83O,715 Illinois $8,O5O,163 Delaware $8,O49,8O4 NUMBER OF AGENCIES BY STATE FOR THE GOODVILLE GROUP DSFM Headquarters De Smet, South Dakota Headquarters New Holland, Pennsylvania Napoleon, Ohio Regional Office Green: Goodville Mutual Casualty Company operating states Orange: Goodville Mutual Casualty Company & Lancaster Mutual Insurance Company operating state Blue: De Smet Farm Mutual Insurance operating state GOODVILLE MUTUAL INSURANCE GROUP PAGE 6Lowest 5yr Uncapped Loss Ratio NDB Insurance Largest Premium Growth <$1.5M Clapper Insurance Agency Inc. Our Annual Partnership Council event took place in October at the Chesapeake Bay Beach Club on Kent Island, MD. We spent several days together with our Partner level agents and invited guests, starting with morning business sessions that covered updates from various Goodville departments, including insights from our President & CEO, David Gautsche. The second day focused more on available agency resources and featured external speakers that sparked engaging conversations on a variety of topics, from AI (Artificial intelligence) to agency staffing. Our afternoons included team events and a range of fun activities, including a culinary challenge and splash golf on day one. Fishing, golf, and a sightseeing boat tour were options on day two. The event wrapped up with a memorable GALA Awards Dinner, where we celebrated the agents who truly shined in the past year, as well as agencies on a trajectory to earn honors next year! We appreciate the engagement of this group, including their honest feedback, great conversations, and collaboration to keep Goodville on the path to profitable growth in the future. PARTNERSHIP COUNCIL 2023 Agents New to Partner Level in 2023 Roehrs-McMillen, Inc. Mike Menzel Agency Principal The Hess Agency, Inc. Jerry Heilner, Commercial Insurance Rep. Straley Insurance Services, LLC Jill & Dan Straley Agency Owners 2023 Gala Award Winners Fun Activities L – R Chad Yoder, Franconia Insurance & Financial Services – PA: Longest Continuous Period of Partnership Status Earned Rodney Lehman, Lehman Insurance Agency, Inc. – PA: Most New Commercial Lines Policies & Most New Personal Lines Policies David Gautsche, President / CEO of Goodville Mutual Insurance Group Matt Bernier, ECBM - Weaver Insurance Associates – PA: Most New Farmowners Policies & Largest Premium Growth >$1.5M 2023 Underwriters Choice Award Meeks Insurance – Brad and Beth Meeks, Agency Owners Business Sessions PAGE 7Next >