EX-99 2 dex99.htm SLIDE PRESENTATION Slide Presentation
1
The
Midland
Company
The Midland Company
The Midland Company
March 5, 2007
Exhibit 99

2
The
Midland
Company
Forward Looking Statements
Certain
statements
made
in
this
presentation
are
forward-looking
and
are
made
pursuant
to
the
safe
harbor
provisions
of
the
Securities
Litigation
Reform
Act
of
1995.
These
statements
include
certain
discussions
relating
to
underwriting,
premium
and
investment
income
volume,
business
strategies,
profitability
and
business
relationships,
as
well
as
any
other
statements
concerning
the
year
2007
and
beyond.
The
forward-looking
statements
involve
risks
and
uncertainties
that
may
cause
results
to
differ
materially
from
those
anticipated
in
those
statements. 
Factors
that
might
cause
results
to
differ
from
those
anticipated
include,
without
limitation,
adverse
weather
conditions,
changes
in
underwriting
results
affected
by
adverse
economic
conditions,
fluctuations
in
the
investment
markets,
changes
in
the
retail
marketplace,
changes
in
the
laws
or
regulations
affecting
the
operations
of
the
company
or
its
subsidiaries,
changes
in
the
business
tactics
or
strategies
of
the
company,
its
subsidiaries
or
its
current
or
anticipated
business
partners,
the
financial
condition
of
the
company's
business
partners,
acquisitions
or
divestitures,
changes
in
market
forces,
litigation
and
the
other
risk
factors
that
have
been
identified
in
the
company's
filings
with
the
SEC,
any
one
of
which
might
materially
affect
the
operations
of
the
company
or
its
subsidiaries.
Any
forward-looking
statements
speak
only
as
of
the
date
made.
We
undertake
no
obligation
to
update
any
forward-looking
statements
to
reflect
events
or
circumstances
arising
after
the
date
on
which
they
are
made.

3
The
Midland
Company
Midland At-A-Glance
•
Specialty P&C insurance company
(American Modern Insurance Group)
•
Short-tail lines experts
•
$850
million
market
cap
(MLAN
-
Nasdaq)
•
Founded 1938, As Auto Finance Co.
•
Based in Cincinnati, active countrywide
•
1,200 associates
•
Ratings and Recognitions
•
“A+”
(Superior) A.M. Best Rating
•
Ward’s Top 50 P&C Insurance Co’s
•
Forbes’
“200 Best Small Co’s”
Book Value Per Share
“Building Shareholder Value”
$17.59
$20.18
$22.98
$25.54
$29.90
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
'02
'03
'04
'05
'06

4
The
Midland
Company
Specialty Product Platform
Manufactured Housing - $337.8
Site-Built Dwelling Fire - $105.5
Motorcycle - $35.7
Watercraft - $22.1
Recreational Vehicle - $24.8
Collector Car, Snowmobile, Etc. - $11.6
Mortgage Fire - $61.6
Collateral Protection - $46.3
Credit Life & Debt Cancellation - $60.9
Excess & Surplus Lines - $66.5
All Other - $59.0
Property, Casualty and Life
Direct & Assumed Written Premium
($ in Millions)
Residential Property
(53%)
Recreational Casualty
(12%)
Financial Institutions
(20%)
Other Specialty Products
(15%)
Full Year 2006
Residential
Property
All
Other
Financial
Institutions
Recreational 
Casualty
$831.8 Million
Total Premiums

5
The
Midland
Company
Essential Product Characteristics
Specialty / Niche
Fragmented/Unfocused Competition
Non-Cyclical
Low Severity
Short Tail
Property Bias
Predominantly Personal Lines
Product, Underwriting and Claims Expertise
Systems/Technology Excellence Provides
an Edge
Residential
Property
Recreational
Casualty
All
Other
Financial
Institutions

6
The
Midland
Company
Why Midland?
Proven Ability to:
Build Shareholder Value
Produce Underwriting Profits
Grow Revenues . . . Profitability!
Master New Product Lines
Future Growth Enabled by:
Broad and Deep Specialty Product Offering
Technological Superiority
Distribution “Omnipresence”

7
The
Midland
Company
Periods Ending December 31, 2006                               
(MLAN $41.95)
An Elite Performer: Annualized Total Return
FIVE YEARS
14.8%
6.2%
10.2%
11.5%
0%
5%
10%
15%
20%
25%
The Midland Company
S&P 500
S&P P&C
Russell 2000
TEN YEARS
21.8%
8.4%
8.9%
9.5%
0%
5%
10%
15%
20%
25%
The Midland Company
S&P 500
S&P P&C
Russell 2000
FIFTEEN YEARS
14.8%
10.6%
10.8%
9.9%
0%
5%
10%
15%
20%
25%
The Midland Company
S&P 500
S&P P&C
Russell 2000
TWENTY YEARS
15.8%
11.8%
9.2%
0%
5%
10%
15%
20%
25%
The Midland Company
S&P 500
Russell 2000

8
The
Midland
Company
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
CAGR (12/31/06)    1 Yr.       5 Yr.      10 Yr.     25 Yr. *
Market Value        16.4%     13.9%      20.7%     14.4%
Book Value           17.0%     12.6%       13.1%     11.2%
5/87 2 for 1
split
5/98 3 for 1
split
7/02 2 for 1
split
* Split Adjusted
* Split Adjusted
Consistent Value Appreciation:
Book and Market Value Growth

9
The
Midland
Company
Consistent Dividend Growth
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
'88
'89
'90
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
Midland is one of only 150 public companies that has increased its
annual dividend for 20 years or more consecutively.
10 Year CAGR = 13.1%

10
The
Midland
Company
Financial Objectives
12%-15% Return On Beginning Equity
95.5% Combined Ratio
2.3:1 Premium To Surplus Ratio
Double Digit Top-Line Growth
Double Digit Growth in Book Value Per Share
Double Digit Growth in Operating Earnings Per Share
“Defy Insurance Industry Cyclicality”

11
The
Midland
Company
Mission
“To
enhance
shareholder
value
by
being
an
Indispensable
Partner
to
customers
in
chosen
markets
by
providing
value
adding
specialty
insurance
products
and
services.”

12
The
Midland
Company
People
People
Core Operating Strategies
“Compete on Value,
Not on Price”

13
The
Midland
Company
Profit Strategy
Product Design and Pricing Expertise
Portfolio Underwriting Process
Proactive Risk Management
Claims Mastery
Prudent Expense Management
Technological Superiority
Policyholder Retention
Business Partner Selection and Management
“Compete on Value, Not on Price”

14
The
Midland
Company
96.6%
104.1%
American Modern
P&C Industry
A Tradition of Profitable Underwriting
Outperformed
P&C Industry
by almost
8 Points!
Source:  A.M. Best Company
Through December, 2006
10-Year Average Combined Ratio
100%

15
The
Midland
Company
20-Year Combined Ratio History
70%
75%
80%
85%
90%
95%
100%
105%
110%
87
88
89
90
91
92
93
94
95
96
97
98
99
'00
'01
'02
'03
'04
'05
'06
20-Year Non-Catastrophe Combined Ratio = 91.5%
20-Year Catastrophe Combined Ratio = 6.1%
20-Year Combined Ratio = 97.6%
A Tradition of Profitable Underwriting

16
The
Midland
Company
Proactive Risk Management
Reduces
Earnings
Volatility
Qualitative and
Quantitative
Analysis
Extensive
Catastrophe
Modeling
Disciplined
Exposure
Management
Expertly
Managed
Reinsurance
Structure
Diversified
Specialty
Product Offering
Rigorous Business
Partner Selection /
Management
Processes

17
The
Midland
Company
•
160 employee field claims staff adjusters
•
90% of claims settled by company employees
•
10% lower average adjustment cost per claim by staff
•
90+% of property claims closed within 30 days of report
Unique In-House Staff Adjuster Training Program
Claims Mastery Enables Underwriting
Profit

18
The
Midland
Company
People
People
Core Operating Strategies
“Target Niches Where
Competition is
Fragmented/Unfocused”

19
The
Midland
Company
Growth Strategy
Product Offering Breadth
Product Offering Depth
“Point and Click”
Easy to Use Technology
Multi-Faceted Distribution
Growing Producer Base
Enhanced Market Awareness
Retention of Existing Policyholders
Focused Acquisition Appetite
“Target Niches Where Competition is Fragmented/Unfocused”

20
The
Midland
Company
$92
$143
$387
$556
$781
$50
$150
$250
$350
$450
$550
$650
$750
$850
'86
'91
'96
'01
'06
P&C Direct and Assumed Written Premium
20 Year CAGR = 11.3%
A Tradition of Top-Line Growth

21
The
Midland
Company
11.3%
5.3%
0%
2%
4%
6%
8%
10%
12%
20-Year Compounded Annual Premium Growth Rate
Industry Source:  A.M. Best Company
American Modern
P&C Industry
Outpacing Industry Growth
Through December 31, 2006

22
The
Midland
Company
Delivering “Point and Click”
Ease of Use
Computerworld Best In Class Award Winner
A.M. Best E-Fusion Award Winner
Omnipresence: Own Our Share of Every Producer’s Desktop

23
The
Midland
Company
Lender -                          11%
Point of Sale -                 20%
General Agents -            29%
Independent Agents -      6%
Specialty Agents -            6%
Financial Institutions -   23%
All Other -                               6%
Property & Casualty and Life
Direct & Assumed Written Premium
Multi-Faceted Distribution
December 31, 2006
2006
Strategically Matching Distribution
to Product and Marketplace Opportunities

24
The
Midland
Company
An Ever-Expanding Distribution Platform

25
The
Midland
Company
Product Offering Transformation
From: A Mobile Home
Insurance Company
MH =
65%
All
Other
= 3%
MH =
97%
All
Other
= 35%
MH =
40%
All Other
= 60%
All
Other
= 65%
MH =
35%
1999
2006
To: A Specialty P&C
Insurance Company
Percent of
Profit from
Premium Flow
Percent
of Total
Premiums

26
The
Midland
Company
Expanded Market Potential
From:
$5 Billion
To:
$30 Billion
2000
2007
Expanded Specialty
Product Offering
“Necessity = Opportunity”

27
The
Midland
Company
People
People
Core Operating Strategies
“Attract + Align + Invest = Retain”

28
The
Midland
Company
People Strategy:
“Attract, Align, Invest, Retain”
Over 1,200 Associates and Growing!
Leadership Team Averages 20 Years Industry Experience
Low
Associate
Turnover:
7.5%
-
3-Year
Average
Core Values:
Integrity
Win/Win
Team
Midland University: 165 Designations in 2006!
Humility
Personal Growth
Creativity
Propriety
Sharing/Caring
Strong Work Ethic

29
The
Midland
Company
PROFIT:
Superior Underwriting; 96.6% 10-Year Combined Ratio
Earnings Strength; Record Results for the Last Three Consecutive
Years
Broad Platform; All Product Groups Contributing to 93.8% 2006 Combined Ratio
Investment Income; 8.2% 10-Year CAGR
GROWTH:
Impressive Growth; 11.3% 20-Year P&C Premium CAGR
Significant Market Potential; Expanded From $5 Billion to $30 Billion
Diverse Distribution; 45,000 Points of Production and Growing
STRENGTH:
Ratings; A+ (Superior) Rated by A.M. Best
Recognition; Ward’s Financial Top 50 P&C Insurance Companies
VALUE:
Growth In Annual EPS (Before Capital Gains); 18.1% 5-Year CAGR
Growth In Book Value; 12.6% 5-Year CAGR
Growth In Market Value; 13.9% 5-Year CAGR
CONSISTENCY:
Book Value Per Share has Increased 19 of Last 20 Years
Total Revenue has Increased 19 of Last 20 Years
Produced a Net Profit in Each of the Last 20 years
Good People.  Better Results.
TM

30
The
Midland
Company
Building Shareholder Value
Broad
Specialty
Product
Offering
Strong
Balance
Sheet
Multi-
Faceted
Distribution
Indispensable
Partnerships
Deep and
Talented
Team
Superior
Operating
Results
Award-
Winning
Technology
Profit
Discipline
Positioned
for Growth
Underwriting
and Claims
Expertise

31
The
Midland
Company
The Midland Company
The Midland Company
Thank You
Thank You
7000 Midland Boulevard 
Amelia, Ohio  45102-2607
(513) 943-7100   Fax (513) 943-7111
Mailing Address: P.O. Box 1256
Cincinnati, Ohio 45201-1256
www.midlandcompany.com
Investor Contact: 
W. Todd Gray
Executive Vice President and
Chief Financial Officer
(513) 947-5637   Fax: (513) 943-7111
e-mail: todd_gray@amig.com

32
The
Midland
Company
Record Full Year 2006 Results
Record earnings for third consecutive year
Double-digit
property
and
casualty
premium
growth
–
up
11.9%
over
2005
Record Book Value Per Share -
$29.90, up 17.1% from prior year
*Non-GAAP
Finance
Measure
-
Net
income
before
realized
capital
gains
is
a
non-GAAP
measure.
Items
excluded
from
this
measure
are
significant
components
in
understanding
and
assessing
financial
performance.
The
company
believes
that
this
non-GAAP
financial
measure
provides
a
clearer
picture
of
the
underlying
operating
activities
than
the
GAAP
measure
of
net
income,
as
it
removes
potential
issues
such
as
timing
of
investment
gains
(or
losses)
and
allows
readers
to
individually
assess
these
components
of
net
income.
Diluted Earnings Per Share
2006
2005
Net Income Before Capital Gains*
3.31
$     
3.16
$     
Net Realized Capital Gains
0.29
0.21
Net Income
3.60
$     
3.37
$     

33
The
Midland
Company
Midland’s Investment Portfolio
At 12/31/06
•
Market Value of $1.0 billion
•
78% fixed income ($802 million)
“AA”
average quality
5.0 years average duration
•
22% equities ($227 million)
17%
12%
5%
22%
40%
4%
Equities
Tax exempt municipals
U.S. government bonds
Mortgage backed bonds
Corporate and other bonds
Short-term investments
High Quality Diversified Portfolio