Commentary on 2018 Results for Quincy Mutual GroupOur 2018 results, in many ways mirror our 2017 performance. The core book of Northeast Property and Casualty business produced an underwriting profit with a 97% combined ratio. Assumed reinsurance, as described below, produced an underwriting loss for the second straight year, and the Group finished the year with a combined ratio of 103%.
The Group continues to diversify outside of its core Northeast region with a book of worldwide assumed reinsurance. This business can be subject to large swings in both premium volume and profitability. We increased our premiums by $120 million in the calendar year, however, a series of catastrophic events including Hurricane Michael, Typhoon Jebi, and the California wildfires likely each produced an industry loss in excess of $10 billion. We will continue to leverage our financial strength through our relationship with reinsurance partners to diversify our geographic concentration. While the 2018 assumed reinsurance financial results were disappointing, we have produced a solid underwriting profit on this business since inception in 2009.
The investment portfolio produced a modest loss due to the stock market decline in the fourth quarter. We continue to look for ways to diversify our investment portfolio. In particular, we have invested in a series of alternative energy partnerships such as wind turbines and solar arrays that are producing a very nice return. As a corporate citizen, we are committed to improving the environment, and these investments will assist in reducing our carbon footprint.
We are very proud of our Agent Advisory Council, and thank them for their time and advice. Following their recommendations, we have instituted a number of operational and underwriting changes that have streamlined our processes and improved the “ease of doing business.” We are committed to continually improve the customer experience by offering quality products and services at competitive prices.
As we enter 2019, we are pleased to have rolled out “Businessowners Straight-Through Processing”, a streamlined application and policy issuance system that is already receiving positive reviews from our agents. We have also introduced Dwelling Fire to Quincy Online, which is simplifying the application and endorsement process for agents and staff. While the enhanced use of analytical tools imbedded in underwriting is assisting us in improving pricing and risk selection, we are committed to maintaining the personal service we offer to our agents and customers every day by demonstrating our tag line “To Insure is Human.”
We would like to take the opportunity to thank our staff, our agents and other business partners for their continued hard work and professionalism in delivering the best services to our policyholders.
On a personal note, we would like to recognize Kevin Meskell, Executive Vice President and Jim Moran, Executive Vice President and General Counsel who retired at year-end. We thank them for their many years of counsel and wisdom, and wish them well in their retirement. Lastly, we are pleased to announce that Tom Harris has been promoted to President and Chief Operating Officer.
K. Douglas Briggs, CPCU Thomas A. Harris
Chairman & CEO President & COO
2018 Financial Results
Click here to view our 2018 Financial Statement.