During challenging times, staying true to core values is essential. Experience also teaches us that obstacles and turmoil are nothing new.
At Armed Forces Insurance, we understand our mission, our values and our objective – Our Mission is You. We faithfully protect those who protect our nation by providing quality insurance products and services to our members. That is what we do, it is all we do.
In 2025, despite the challenging insurance environment, we have strived to keep our core values top of mind as we helped our members navigate catastrophic losses, inflationary pressures and insurance availability issues.
Many insurance companies are, quite honestly, struggling in this dynamic environment and are making reactionary decisions that excessively impact their customers. One of the benefits of working with Armed Forces Insurance is that, with 139 years of experience, we have a longer-term perspective and more experience managing insurance in environments that throw a curveball.
After all, Armed Forces Insurance has faithfully served our members through every war since the Spanish-American War, and we’ve survived everything from stagflation to shrinkflation.
That perspective enables Armed Forces Insurance to mitigate the negative impact on our members in ways that only an experienced hand with a longer-term outlook can envision.
As I look back on 2025, one reality stands out clearly: it was certainly an interesting year.
I will honestly say that the January California Palisades and Eaton Wildfires were simply horrific on so many fronts. Rest assured that Armed Forces Insurance took care of our impacted members, but it was a rough way to start 2025.
On the other hand, 2025 was the first year since 2015 that no hurricanes made landfall in the continental United States – a nice respite for our hurricane-weary members.
Core inflation in the United States slowed, but the average cost to repair damaged homes (our biggest expense) increased by over 8% due to inflationary pressures and increased construction labor costs.
Financially, it was closer to a “normal” year, with the Exchange producing a small profit and rebuilding our reserves, but geographic moratoriums and limitations remain an obstacle to “business as usual”.
In 2025, we added new insurance options for members with properties in areas where insurance options are limited. This key achievement provides greater flexibility for our members. Finding new options for our members when others are limiting options is part of our mission.
We also upgraded some of our key infrastructure, successfully completing our homeowners’ policy upgrade and improving our online member service portal.
Please check out our new Upgraded AFIConnect Member Service Portal at aficonnect.afi.org.
Overall, it was an interesting but productive year. An AI tool suggested that I end my letter with the statement:
“In the midst of volatility, our organization demonstrated resilience, discipline and the ability to adapt with purpose. The challenges of 2025 did not slow us—they sharpened our focus and strengthened our commitment to delivering value, serving our members and preparing for a future that demands agility.”
It’s not a bad close, but when I asked one of our Dedicated Agents what we accomplished in 2025, they said, “We stayed focused on helping our members”.
Indeed – core values, what an excellent close.
Thank you for your continued trust in Armed Forces Insurance.
Our Mission is You.®
Arlen L. Briggs
President & Chief Executive Officer