These are unprecedented economic times making this report on our year end 2008 results that much more important. Our Direct Written Premium stands at $285 million and is supported by $620 million of Policyholder Surplus. This ratio of premiums to surplus places the Group in a position of superb financial strength. When combined with our reinsurance program our claims paying ability is very secure. Assets remain above the $1 billion level and overall profitability, as measured by the combined ratio, is very solid at 98.05%.

The Group was not spared from the downturn in the financial markets. In particular, our investment results suffered in line with the broader market with bonds generating a -1% return and the stock portfolio decreasing by 33%. Our approach to enterprise risk management includes an assessment of factors such as this which can have an adverse effect on our results. The current financial environment and a spectrum of natural catastrophes are high on that list and we manage our business with a keen awareness of those exposures.

An important development during last year was the introduction of managed competition in the Massachusetts private passenger automobile line. Our aggressive posture to secure a larger share of that market was successful as we packaged a competitive auto/homeowner product benefiting policyholders. We rolled out new automation capabilities to our independent agents and continued our strategic goal to have the Quincy Group remain a preferred carrier for both personal and commercial lines of business.

Our A.M. Best rating remains A+, continuing a historic pattern placing us among an elite group of insurance companies. Not only have we sustained that rating for nearly three quarters of a century, less than 10% of all insurer groups in the country qualified for that rating over the past year.

Within the new Congress discussions have already begun on the need to examine and perhaps reform the regulation of financial institutions as a means of addressing systemic risk in the financial services industry. Most observers, however, agree that the property and casualty industry has not been a contributing factor to this crisis. Any new reforms should be carefully calibrated to avoid unnecessary burdens on the ability of our industry to conduct our business as we have in the past.

Our employees, agents and business partners contribute much to our success. We extend our appreciation to them for the value they add to the Quincy Group.