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.