Commentary on 2019 Results for Quincy Mutual Group
Quincy Mutual Group produced an underwriting profit and recorded strong surplus growth in 2019. Direct business, written in the northeast, produced an excellent 93% combined ratio and a $16 million underwriting profit. Direct results have continued to improve with pricing and underwriting discipline, though we also enjoyed notably mild weather in 2019. Weather also contributed to the modest underwriting loss on our world-wide reinsurance portfolio. Typhoons Hagibis and Faxai each made landfall in heavily populated areas south of Tokyo, Japan causing severe economic damage. Our world-wide business will continue to produce volatile results but we believe it will be profitable and benefit our financial strength in the long run. The Group produced an overall underwriting profit of $10 million and a combined ratio of 98.5%. Our financial strength continues to improve to the benefit and security of our policyholders. Quincy Mutual Group Surplus increased $126 million, or 11%, for the year, helped by strong investment returns of 15% overall.
We introduced several initiatives to benefit our agents and insureds in 2019. We partnered with the technology firm “Hi Marley” to provide an efficient platform to settle claims using text messaging. Customers have reported high satisfaction rates and the product has reduced the average time to settle a claim by more than 20%. Our EFT (electronic funds transfer) program has been enhanced to allow customers the flexibility to choose their own due day to ensure they always know when their bill is due. Commercial Lines agents have taken advantage of our “Straight-Through-Processing” platform for Businessowners accounts. We will continue to enhance the straight-through platform, as agents have greater pricing flexibility in offering competitively priced quick quotes.
The momentum to improve the customer experience continues in 2020. In 2019, 60% of property claims settled with a payment of $5,000 or less. We are implementing technology to help settle smaller claims faster. For example, smaller wind claims, which previously averaged 19 days, are now averaging only six days to payment. The accelerated settlements align with rising customer expectations of the claims process without sacrificing quality.
Management and staff at Quincy Mutual Group are proud of our standing in the community. Our employees have generously supported charities with their volunteer time and financial contributions to worthy causes such as the United Way campaign, Friday Jeans Days, and the “Share the Warmth” coat drive for Father Bill’s & MainSpring in Quincy.
We remain committed to protecting our planet for future generations through our green initiatives and improved energy efficiency. In our Home Office, we have installed water filling stations. To date, we have eliminated the waste of over 18,000 plastic bottles. Faucets have been updated with low aerators to conserve water usage and new LED fixtures to reduce energy usage have been installed. In 2020, we will begin receiving 50% of our electricity from renewable energy sources. Our commitment to renewable energy goes beyond our Home Office. Quincy Mutual is now a majority owner in partnerships that include three acres of solar panels and seven wind turbines.
Finally, we are proud of the role our employees play in the American economy. We provide a product that allows people to take out a car loan or mortgage on a home. We allow entrepreneurs to start a business and provide a backstop to help businesses grow and thrive. We try not to think in terms of winners or losers but in terms of people and organizations coming together. We thank our customers, agents, vendors, and employees for “coming together to the benefit of all.”
Thomas A. Harris
2019 Financial Results
Click here to view our 2019 Financial Statement.