Civic Intelligence

Hills Insurance Company Inc C/O Franciscan Alliance Inc

EIN 03-0372512 • 501(c)3 • Mishawaka, IN

Profile

Organized and operated as a captive insurance company to issue policies of professional and general liability and other property and casualty insurances to franciscan alliance, inc. And affiliates.

1515 Dragoon TrailMishawaka, IN 46544

n/A

Siviq Scores

Precomputed percentiles relative to similar nonprofits. These scores are descriptive rather than judgmental.

Liabilities / Assets

70th percentile

0.55x

Higher debt load relative to assets than 70% of similar nonprofits.

501(c)3 • $250M-$1B nonprofits • Source year 2024

Liabilities / Revenue

91st percentile

3.80x

Higher debt load relative to revenue than 91% of similar nonprofits.

501(c)3 • $250M-$1B nonprofits • Source year 2024

Net Margin

89th percentile

37%

Higher net margin than 89% of similar nonprofits.

501(c)3 • $250M-$1B nonprofits • Source year 2024

Top Officer Pay

89th percentile

$3,036,555

Higher top officer pay than 89% of similar nonprofits.

Top officer pay equals 8.3% of source-year revenue.

501(c)3 • $250M-$1B nonprofits • Source year 2024

Asset Growth

63rd percentile

8.8%

Faster asset growth than 63% of similar nonprofits.

501(c)3 • $250M-$1B nonprofits • Annualized from 2023 to 2024

Revenue Growth

96th percentile

122%

Faster revenue growth than 96% of similar nonprofits.

501(c)3 • $250M-$1B nonprofits • Annualized from 2023 to 2024

Assets

Up

$255,927,701

Up $20,781,912 (+8.8%) from 2023

Liabilities

Up

$139,760,528

Up $2,391,402 (+1.7%) from 2023

Net Assets

Up

$116,167,173

Up $18,390,510 (+19%) from 2023

Revenue

Up

$36,784,851

Up $20,252,139 (+122%) from 2023

Expenses

Up

$23,229,689

Up $14,108,658 (+155%) from 2023

Net Income

Up

$13,555,162

Up $6,143,481 (+83%) from 2023

Trend Graphs

Balance Sheet Trend

Grouped bars show assets, liabilities, and net assets across loaded filings.

$300M$200M$100M$0Assets 2010: $152,428,021Liabilities 2010: $112,240,583Net Assets 2010: $40,187,4382010Assets 2011: $167,673,522Liabilities 2011: $125,266,527Net Assets 2011: $42,406,9952011Assets 2012: $180,445,283Liabilities 2012: $126,591,497Net Assets 2012: $53,853,7862012Assets 2013: $192,064,948Liabilities 2013: $128,740,537Net Assets 2013: $63,324,4112013Assets 2014: $195,582,938Liabilities 2014: $129,869,111Net Assets 2014: $65,713,8272014Assets 2015: $187,040,439Liabilities 2015: $142,358,804Net Assets 2015: $44,681,6352015Assets 2016: $183,351,444Liabilities 2016: $136,161,200Net Assets 2016: $47,190,2442016Assets 2017: $191,768,271Liabilities 2017: $126,369,662Net Assets 2017: $65,398,6092017Assets 2018: $179,155,934Liabilities 2018: $124,213,552Net Assets 2018: $54,942,3822018Assets 2019: $191,452,751Liabilities 2019: $118,698,852Net Assets 2019: $72,753,8992019Assets 2020: $217,921,652Liabilities 2020: $134,377,519Net Assets 2020: $83,544,1332020Assets 2021: $233,016,594Liabilities 2021: $146,468,566Net Assets 2021: $86,548,0282021Assets 2022: $209,929,373Liabilities 2022: $146,885,527Net Assets 2022: $63,043,8462022Assets 2023: $235,145,789Liabilities 2023: $137,369,126Net Assets 2023: $97,776,6632023Assets 2024: $255,927,701Liabilities 2024: $139,760,528Net Assets 2024: $116,167,1732024

Highlighted filing

2024

Assets$255,927,701
Liabilities$139,760,528
Net Assets$116,167,173

Operations Trend

Revenue, expenses, and net income by year, with the latest filing highlighted.

$50M$0-$50MRevenue 2010: $24,203,170Expenses 2010: $14,619,968Net Income 2010: $9,583,2022010Revenue 2011: $23,375,141Expenses 2011: $17,023,768Net Income 2011: $6,351,3732011Revenue 2012: $22,802,561Expenses 2012: $16,621,945Net Income 2012: $6,180,6162012Revenue 2013: $13,217,824Expenses 2013: $11,648,001Net Income 2013: $1,569,8232013Revenue 2014: $16,710,211Expenses 2014: $16,581,259Net Income 2014: $128,9522014Revenue 2015: $19,230,563Expenses 2015: $29,222,472Net Income 2015: -$9,991,9092015Revenue 2016: $17,214,422Expenses 2016: $21,453,523Net Income 2016: -$4,239,1012016Revenue 2017: $20,076,579Expenses 2017: $11,770,763Net Income 2017: $8,305,8162017Revenue 2018: $23,974,960Expenses 2018: $18,076,848Net Income 2018: $5,898,1122018Revenue 2019: $20,860,819Expenses 2019: $16,332,280Net Income 2019: $4,528,5392019Revenue 2020: -$25,103,631Expenses 2020: $18,470,184Net Income 2020: -$43,573,8152020Revenue 2021: $7,136,194Expenses 2021: $30,886,332Net Income 2021: -$23,750,1382021Revenue 2022: $29,753,708Expenses 2022: $12,510,739Net Income 2022: $17,242,9692022Revenue 2023: $16,532,712Expenses 2023: $9,121,031Net Income 2023: $7,411,6812023Revenue 2024: $36,784,851Expenses 2024: $23,229,689Net Income 2024: $13,555,1622024

Highlighted filing

2024

Revenue$36,784,851
Expenses$23,229,689
Net Income$13,555,162

Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024Facts available. Structured filing facts are available, but richer extracted sections are limited.$256$140$116$36.8$23.2$13.6
2023Detailed filing. Detailed filing data is available for this year.$235$137$97.8$16.5$9.12$7.41
2022Detailed filing. Detailed filing data is available for this year.$210$147$63.0$29.8$12.5$17.2
2021Detailed filing. Detailed filing data is available for this year.$233$146$86.5$7.14$30.9$23.8
2020Detailed filing. Detailed filing data is available for this year.$218$134$83.5$25.1$18.5$43.6
2019Detailed filing. Detailed filing data is available for this year.$191$119$72.8$20.9$16.3$4.53
2018Detailed filing. Detailed filing data is available for this year.$179$124$54.9$24.0$18.1$5.90
2017Detailed filing. Detailed filing data is available for this year.$192$126$65.4$20.1$11.8$8.31
2016Detailed filing. Detailed filing data is available for this year.$183$136$47.2$17.2$21.5$4.24
2015Detailed filing. Detailed filing data is available for this year.$187$142$44.7$19.2$29.2$9.99
2014Detailed filing. Detailed filing data is available for this year.$196$130$65.7$16.7$16.6$0.13
2013Detailed filing. Detailed filing data is available for this year.$192$129$63.3$13.2$11.6$1.57
2012Summary only. Only limited summary data is available for this year.$180$127$53.9$22.8$16.6$6.18
2011Summary only. Only limited summary data is available for this year.$168$125$42.4$23.4$17.0$6.35
2010Summary only. Only limited summary data is available for this year.$152$112$40.2$24.2$14.6$9.58
Latest Filing Detail
Jump To
Filing Snapshot
Filing Period
Jan 1, 2024 to Dec 31, 2024
Signed
Nov 17, 2025
Return Version
2024v5.2
Gross Receipts
$184,131,018
Mission and Program Overview

Mission

Organized and operated as a captive insurance company to issue policies of professional and general liability and other property and casualty insurances to franciscan alliance, inc. And affiliates.

Providing self-insurance to hospitals owned and/or controlled by its member, franciscan alliance, inc.

Balance Sheet Detail
LineBeginningEndChange
Assets
Investments in Publicly Traded Securities$144,079,090$173,536,535▲ $29,457,445
Investments Other Securities$40,911,233$45,120,701▲ $4,209,468
Accounts Receivable$20,359,079$20,020,977▼ $338,102
Savings and Temporary Cash Investments$28,046,701$12,825,247▼ $15,221,454
Prepaid Expenses and Deferred Charges$0$745▲ $745
Cash and Non-Interest-Bearing Accounts$0$0→ $0
Other Notes and Loans Receivable, Net$0$0→ $0
Pledges and Grants Receivable$0$0→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Program Related$0$0→ $0
Land, Buildings, and Equipment, Net$0$0→ $0
Intangible Assets$0$0→ $0
Inventories for Sale or Use$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$235,145,789$255,927,701▲ $20,781,912
Other Assets Total$1,749,686$4,423,496▲ $2,673,810
Liabilities
Other Liabilities$137,068,659$139,163,238▲ $2,094,579
Accounts Payable and Accrued Expenses$300,467$401,096▲ $100,629
Deferred Revenue$0$196,194▲ $196,194
Grants Payable$0$0→ $0
Mortgage Notes Payable Secured by Investment Property$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$137,369,126$139,760,528▲ $2,391,402
Net Assets / Fund Balance
Net Assets Without Donor Restrictions$97,776,663$116,167,173▲ $18,390,510
Net Assets With Donor Restrictions$0$0→ $0
Total Net Assets Fund Balance$97,776,663$116,167,173▲ $18,390,510
Total Liabilities and Net Assets / Fund Balance$235,145,789$255,927,701▲ $20,781,912

Asset Categories

AssetBook ValueDepreciationBasis
Other Securities$45,120,701--
Compensation and Service Providers

Employees

NameTitleOtherTotal
Michael NorthInterim Vice President$63,274$63,274

Board Members and Trustees

NameTitle
Kevin D LeahyDirector/president/chair
Daniel ConnerFormer Vice President
Sister Jane Marie KleinDirector
Russell a YoungDirector, Assistant Secretary
Sister Lethia Marie LeveilleDirector, Secretary
Sister M Ann Kathleen MagieraDirector, Treasurer
Chase KunkelFormer Admin Director

Highest Paid Contractors

ContractorServicesLocationCompensation
Milliman INCConsulting Services71 S WACKER DR 31ST FL, Chicago, IL 60606$126,900
Revenue and Support

Revenue Composition

Contributions and Grants
$0
Program Service Revenue
$17,802,641
Investment Income
$18,982,210
Other Revenue
$0
Change in Net Assets
$13,555,162

Audited Revenue Reconciliation

Revenue per Audited Statements
$36,176,817
Revenue Not Reported on Financial Statements
$608,034
Revenue Not Reported on Form 990
$4,835,348
Total Revenue per Audited Statements
$41,012,165
Total Revenue per Form 990
$36,784,851
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$23,229,689
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0
Salaries, Compensation, and Employee Benefits$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Fees for Service Investment Mgmnt Fees-$608,034-$608,034
Other Expenses$270,971-$0$270,971
Fees for Services Accounting-$209,747-$209,747
Fees for Services Management-$64,606-$64,606
Fees for Services Legal-$6,100-$6,100
Total Functional Expenses$22,341,202$888,487$0$23,229,689

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Form 990$23,229,689
Expenses per Audited Statements$22,621,655
Total Expenses per Audited Statements$22,621,655
Expenses Not Reported on Financial Statements$608,034
International Activity

International Summary

Spending
$2,612,742

International Compliance

Activity in boycott countries
No
Foreign corporation ownership
Yes
Foreign partnership interest
No
Interest in foreign trust
No
Passive foreign investment company interest
Yes
Transfers to foreign corporations
No

International Activities

RegionActivityServicesOfficesEmployeesSpending
Central America and the CaribbeanInvestments---$2,612,742
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Fundraising Direct Expenses$0
Fundraising Gross Income$0
Gaming Direct Expenses$0
Gaming Gross Income$0
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Insider Transactions and Loans

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Loss and Loss Adjustment Expenses$138,379,822
Claims Payable to Member$783,416
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Business relationship with 35% controlled entity
No
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
No
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
Yes
Management duties delegated
Yes

Governance Explanations

Form 990, Part VI, Section A, Line 3

Strategic risk solutions (srs), an approved vermont captive management company, provides accounting, financial reporting, and regulatory compliance services to hills insurance company, inc. Per contract for $64,606.

Form 990, Part VI, Section A, Line 6

The organization's sole member is franciscan alliance, inc.

Form 990, Part VI, Section A, Line 7A

The sole member, franciscan alliance inc., elects all directors.

Form 990, Part VI, Section A, Line 7B

Vermont law requires some transactions to be approved by the member and as a captive insurance company, the vermont department of financial regulation must approve the business plan, changes to that and any dividend payments.

Form 990, Part VI, Section B, Line 11B

The information to prepare the form 990 of hills insurance company, inc ("hills") is gathered by finance staff and provided to its accounting firm who prepares the return. Senior management then reviews the return prior to filing. The form 990 is also made available to hills' board of directors prior to filing.

Form 990, Part VI, Section B, Line 12C

The corporation and/or its affiliate requires annual conflict of interest statements from each director, principal officer and members of committees with board designated powers which affirms they have received, read and understand the conflict of interest policy and have agreed to comply with the policy. In connection with any actual or possible conflict of interest a director, principal officer or member of a committee with board designated powers must disclose the existence and nature of the financial interest to the directors and members of committees with board delegated powers considering the proposed transaction or arrangements. After disclosure of the financial interest, the director, principal officer or committee member shall leave the board or committee meeting while the financial interest is discussed and vote taken.

Form 990, Part VI, Section B, Line 15A

Hills insurance company, inc. Does not compensate its president.

Form 990, Part VI, Section B, Line 15B

The member and directors discuss this issue annually - as is common practice for many vermont captive insurance companies, only the outside director receives any compensation and that is a nominal amount paid by the captive manager.

Form 990, Part VI, Section C, Line 19

The organization makes its governing documents, conflict of interest policy, and financial statements available to the public from the vermont department of financial regulation.

Filing and Contact Details

Filer

Filer Name
Hills Insurance Company Inc
EIN
03-0372512
In Care Of
% KAREN MAHONEY
Phone
5742563935
Address
1515 DRAGOON TRAIL, MISHAWAKA, IN 46544

Signing Officer

Name
Sister Lethia Marie Leveille
Title
Secretary
Phone
5743476418
Signed
2025-11-17
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Kevin D Leahy
Formed
2002
Legal Domicile
Vt
Voting Board Members
5
Independent Board Members
4
Employees
0
Volunteers
0

Preparer

Firm
PwC US Tax LLP
Address
2001 MARKET ST SUITE 1800, PHILADELPHIA, PA 19103
Preparer
Eric M Mcneil
Phone
2673303000
Supplemental Narrative

Financial Statement Notes

Schedule D, Part X, Line 2

On november 8, 2004, the company received a tax determination letter from the department of treasury, internal revenue service, granting hills tax-exempt status under section 501(c)(3) of the internal revenue code. Accordingly, the company does not accrue for current or deferred federal income tax liabilities. Management has concluded that hills has properly maintained its tax exempt status and has not taken any uncertain tax positions which could jeopardize its federal income tax exempt status.

Raw XML AppendixShowing 400 of 802 raw XML fields

This appendix keeps the raw XML leaves available for debugging and edge-case review. The human report above is the primary experience.

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IRS990/Desc0FRANCISCAN ALLIANCE, INC. IS A NOT-FOR-PROFIT CORPORATION WHICH PROVIDES HEALTH CARE AND RELATED SERVICES TO THE COMMUNITIES IN WHICH IT OPERATES. THE SPONSORSHIP OF FRANCISCAN ALLIANCE, INC. IS UNDER THE GOVERNANCE OF THE SISTERS OF ST. FRANCIS OF PERPETUAL ADORATION. HOSPITALS OWNED AND/OR CONTROLLED BY FRANCISCAN ALLIANCE, INC. ARE NOT-FOR-PROFIT HEALTH CARE PROVIDERS ESTABLISHED TO MEET THE HEALTH CARE NEEDS OF AREA RESIDENTS. THE HILLS INSURANCE COMPANY, INC. IS A WHOLLY-OWNED SUBSIDIARY OF FRANCISCAN ALLIANCE, INC. FORMED TO PROVIDE SELF-INSURANCE FOR FRANCISCAN ALLIANCE, INC. IN THIS REGARD, THE HILLS INSURANCE COMPANY, INC. PROVIDES PROFESSIONAL AND GENERAL LIABILITY INSURANCE COVERAGES TO ITS MEMBER, FRANCISCAN ALLIANCE, INC., AND THE HOSPITALS OWNED AND/OR CONTROLLED BY FRANCISCAN ALLIANCE, INC.
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IRS990/Form990PartVIISectionAGrp/TitleTxt5DIRECTOR, ASSISTANT SECRETARY
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IRS990/MissionDesc0ORGANIZED AND OPERATED AS A CAPTIVE INSURANCE COMPANY TO ISSUE POLICIES OF PROFESSIONAL AND GENERAL LIABILITY AND OTHER PROPERTY AND CASUALTY INSURANCES TO FRANCISCAN ALLIANCE, INC. AND AFFILIATES.
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IRS990ScheduleD/SupplementalInformationDetail/ExplanationTxt0ON NOVEMBER 8, 2004, THE COMPANY RECEIVED A TAX DETERMINATION LETTER FROM THE DEPARTMENT OF TREASURY, INTERNAL REVENUE SERVICE, GRANTING HILLS TAX-EXEMPT STATUS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. ACCORDINGLY, THE COMPANY DOES NOT ACCRUE FOR CURRENT OR DEFERRED FEDERAL INCOME TAX LIABILITIES. MANAGEMENT HAS CONCLUDED THAT HILLS HAS PROPERLY MAINTAINED ITS TAX EXEMPT STATUS AND HAS NOT TAKEN ANY UNCERTAIN TAX POSITIONS WHICH COULD JEOPARDIZE ITS FEDERAL INCOME TAX EXEMPT STATUS.
IRS990ScheduleD/SupplementalInformationDetail/FormAndLineReferenceDesc0SCHEDULE D, PART X, LINE 2
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