Financial

Commentary on 2016 Results for Quincy Mutual Group

What a difference a year makes! After significant losses from ice dams and other extreme winter weather during 2015, Quincy Mutual Group returned to profitability in 2016. Underwriting income of $33 million and a combined ratio of 90.2% represent our second best results in the last 25 years. Worldwide assumed catastrophe reinsurance again this year contributed significantly to the Group’s results. With excellent underwriting results, diversified investment income and significant unrealized capital gains, our Policyholders’ Surplus increased more than $102 Million during 2016 and now stands at $1.079 Billion.

Quincy Mutual has a $1.3 billion investment portfolio in publicly traded securities in addition to $100 million allocated to real estate, insurance agencies, and other investments. Our strong capital position and low leverage enables us to invest in a prudent and diversified fashion across market sectors. Notwithstanding lower bond yields, this approach produced nice rewards in 2016 as our $600 million equity portfolio returned 16%, much of this in the form of capital gains.
Our substantial Policyholder Surplus ensures excellent security for all insureds who place their trust in us. Since 1934 we’ve been continuously honored with a rating of A+ (Superior) from A.M. Best. While proud of this recognition of our superior financial strength and stability, we continually challenge ourselves to allocate and utilize our human and financial capital to attain a positive record of accomplishment.

During 2016 we gave thoughtful consideration to our company philosophy, and arrived at a phrase that captures the way we think and do business, “Our Future Depends on the Choices We Make Today”. Whether in our planning, underwriting, claim and policyholder services, product and system development, or management; making ethical choices which allow us to become a better and stronger risk-bearing organization is crucial to future corporate success and the protection of all policyholders, no matter what the future holds. Equally central to our corporate identity is a wide-spread commitment to charitable giving and community support in ways large and small by the Quincy Mutual Charitable Giving Fund and our generous agents and employees.

A particular strength of Quincy Mutual, we believe, is the personal touch points we have with all our constituents. To emphasize this we are introducing a digital/print campaign under the headline To Insure Is Human. We hope to highlight not only what we do, but also to showcase the inherent advantage of doing business with independent agents and our staff, all of whom are
committed to delivering personalized service for policyholders.

2017 begins with much promise with multiple initiatives underway. Product enhancements in our personal lines and commercial lines will be welcomed in the market as will a new look to our web site and agency interface to provide a better user experience. Our newly formed Agent Council will offer added insights and benefit our operating plan. We look forward with eager anticipation to the opening of our new Patrons Oxford Insurance Company office in Portland, ME. Their new location, new logo and continuing enthusiasm foreshadow an exciting period in their history.

The value of our enterprise is supported by the efforts and devotion of all our employees, agents, and business partners. As we look forward, technology and analytics will continue to influence our business with opportunities and challenges. We extend our appreciation for the diligent and conscientious efforts of our employees, our insurance agency partners and business associates who continuously demonstrate their commitment to Quincy Mutual’s policyholders and the communities in which we all live and work. “Our Future Depends on the Choices We Make Today”.

 

2016 Financial Results