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Commentary On 2007 Results We are
pleased to report that the health of the Quincy Mutual Group continues
to be strong as we review year-end 2007 results. Policyholder surplus
increased to $ 759 million and remains a key factor in evaluating
our financial strength and claims paying ability. Overall profitability
also remained positive with a combined ratio of 97.2%. We are reviewing
enterprise risks which have an impact on both of these important
metrics. The company continues to seek prudent long term growth,
however, we reduced premium in 2007 in order to position ourselves
to generate profitable results in each of our key markets. Assets
remain quite strong at over
$1.2 billion.
Last year we told you that the property and casualty industry had
enjoyed its best year in a quarter century. Sustaining that is problematic
with industry wide pressures to address competitive markets in personal
lines, a softening commercial rate environment, continuing high
reinsurance expenses and financial markets with an unclear horizon.
We are better prepared than most to address this environment and
our confidence in charting a course which will continue to strengthen
the Group is high.
Of particular note, 2008 will usher in a new Massachusetts automobile
insurance plan introducing competition for the first time since
1977. This historic development presents us with an opportunity
to further enhance our writings in this line and more closely align
our existing strong market share of homeowners business with new
automobile accounts. Our rate filing places us as the best of the
agency writing companies and our agents now have an excellent opportunity
to provide their customers with outstanding premium savings by combining
their policies with us.
As in prior years, we are diligent in pursuing initiatives to make
us better. We continue to develop automated solutions to enhance
connectivity with our agents, provide new billing options for customers,
new product enhancements, and continuing our efforts to be the best
in customer service and settling claims in an efficient and thoughtful
manner.
We understand that the A + rating we have earned from A.M. Best
for more than 70 consecutive years is not achieved without much
hard work and dedication to do what is best for our key constituencies
- our policyholders, our agents and our employees. we appreciate
the contributions of our employees at Quincy Mutual, Patrons Oxford
and in our New Jersey Office. Our Independent agents are business
partners, a valued asset and a key to our success. To all who assist
us along the way, we extend our deepest appreciation.

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