By Matthew White
Sun Staff Writer
mwhite@evesun.com
NEW BERLIN – Given the nature of the insurance industry, it's easy to forget that they play an integral role on the local economy since they are a service provider. Unlike businesses in the manufacturing sector, where measurables are easily detected, the product of the insurance industry is invisible.
As one of the largest employers in Chenango County, The Preferred Mutual Insurance Company prides itself on service and value, which equates to increased sales and profitability through customer satisfaction.
In Strategic Study conducted in 2013 entitled "Growth and Profit Leaders in Personal Lines Insurance," Conning, Inc. – an investment management company for the global insurance industry – determined that Preferred Mutual Insurance Company was one of only 18 companies in the United States that outperformed peers from both a growth and profitability standpoint over a 10-year period.
Conning's strategic studies are based on proprietary insurance research, data, forecasts and models; insurance industry knowledge; ongoing surveys of key industry executives; and analysis of insurance industry performance data.
According to the Study, although the 10-year period (2003-2012) was marked by a recession and elevated catastrophe activity, 18 companies were identified as growth and profitability leaders out of the 241 insurance companies with at least $20 million in personal lines Direct Written Premium in the United States. The 241 personal lines insurance companies represent 98.8 percent of the personal lines direct premium volume market.
The Conning study found that many of the personal lines insurance companies that grew profitably were able do so by specializing in a specific product, customer or geographic niche, regardless of the sales channel. Conning Inc. identified seven groupings for personal lines insurance companies; Preferred Mutual was categorized into the Multiline Regional Agency grouping.
The New Berlin based Preferred Mutual was identified as a regional company that has demonstrated growth and profitability over both the short (5-year) and long (10-year) terms, by providing insurance through an independent agent distribution channel throughout New York, New Jersey, Massachusetts and New Hampshire.
In 2012, Preferred Mutual wrote more than $185 million in personal lines Direct Written Premium at a 10-year combined ratio of 98 percent. Personal lines premiums represent 71 percent of Preferred Mutual's total Direct Written Premium. The company's compounded annual growth rate grew by 6.2 percent over the 10-year period, while the industry grew at a compound annual growth rate of 2 percent.
Preferred Mutual Insurance Company provides property and casualty insurance coverage to more than 250,000 individual and business customers through a network of more than 450 independent agents throughout New York, New Jersey, Massachusetts and New Hampshire. The mutual insurance company, in business since 1896, employs more than 260 employees and is headquartered in New Berlin, New York. The company is rated "A" (Excellent) by A.M. Best.