Commentary On 2015 Results

In early 2015 we reported that the Quincy Mutual Group had a very successful year in 2014 with superior underwriting results and favorable financial markets combining to improve our policyholder surplus to a new record level.  We cautioned that the late January blizzard would partially tell the tale for the next edition of this report but what occurred in the months that followed could not have been predicted.  The aftermath of record snowfall, ice dams and freezing weather made for the worst first quarter underwriting result in company history.

As the year progressed we rebounded but the damage had been done.  For the calendar year our combined ratio was 115% and policyholder surplus slipped to $976 million.  Our balance sheet remains strong with assets of $1.5 billion and it is the strength of that balance sheet which is so important when we have catastrophic events such as we did this past year.  Despite those events we were once again pleased to have our A+ rating affirmed by A.M. Best.

While we endeavor to do all we can to properly service our policyholders, we were no prouder of that responsibility than when we received so many acknowledgements of appreciation for the stellar handling of so many claims from the winter events.  The entire company pulled together to deliver on our promise and along with our independent agents we truly met the challenge.

On the operating front we surveyed our partner agents on how to improve “ease of doing business” with Quincy Mutual.  We have already introduced significant work-flow changes and will be doing more.  We look ahead to embracing new technology and more opportunities to build our brand to reflect our heritage and forward progress.  It is essential that we emphasize the importance of the independent agent, the value we can provide to policyholders and continue to have a workplace where our employees are proud of what they accomplish.  Along with our Maine company, Patrons Oxford, we are committed to doing what is right in all we do.

Finally, on a sad note, we acknowledge with much gratitude the passing of our former President and Chairman Karl Briggs.  For 58 years Karl was at the forefront of leading Quincy Mutual and we accomplished much during his years at the helm of our company.  He leaves a legacy of integrity, service and dedication which we can all admire and try to emulate.


2015 Financial Results

2015 Financial Statement

Cash & Short Term Investments $41,672,893 $57,162,673
Bonds (Amortized Value)  624,169,485 616,703,821
Stocks (Market Value) 642,287,691 689,636,517
Real Estate (Home Office) 9,396,083 9,555,990
Other Invested Assets 85,564,596 59,383,615
Premium Receivables 57,320,801 57,489,759
Accrued Interest & Dividends 6,142,290 6,423,664
Other Assets 36,785,274 41,953,080
Total Assets $1,503,339,113  $1,538,309,119


Unpaid Losses & Loss Adjustment Expenses $1203,691,018 $193,485,437
Unearned Premiums 143,695,506 143,344,404
Federal Income Taxes 86,328,185 91,349,711
Other Liabilities 92,641,949 115,418,527
Total Liabilities $526,356,658 $543,598,079
Policyholders' Surplus $976,982,455 $994,711,040
Total Liabilities & Surplus 1,503,339,113  $1,538,309,119


2015 Statement of Income and Surplus

Underwriting Income
Premiums Earned $310,727,744 $306,704,420
Losses Incurred 213,236,379 116,278,566
Loss Adjustment Expenses Incurred 35,222,151 27,688,508
Underwriting Expenses Incurred 111,075,281 117,610,959
Underwriting Gain / (Loss) ($48,806,067) $45,126,387
Investment Income
Net Investment Income 31,045,335 25,909,063
Net Realized Capital Gains 26,454,416 23,471,873
Total Investment Income $57,499,751 $49,380,936
Other Income $2,659,817 $1,732,753
Net Income Before Taxes 11,353,501 96,240,076
Federal Income Taxes (3,958,175) 21,065,076
Net Income Gain / (Loss) After Taxes $15,311,676 $75,175,000
Beginning Balance $994,711,040 $927,134,985
Net Income 15,311,676 75,175,000
Unrealized Capital Gains / (Losses) After Taxes (33,981,802) (5,805,231)
Change in Net Deferred Income Taxes 6,413,612 (761,624)
Other Changes (5,472,071) (1,032,090)
Increase / (Decrease) for Period (17,728,585) 67,576,055
Ending Balance $976,982,455 $994,711,040