2021 was not only a year of continued financial success for The Concord Group, but also a year of lasting adjustment to the changing world around us.  The worldwide pandemic remained an influence on our Company in many ways, most notably around work environment and culture.  Employees and leaders adjusted to a more sustained hybrid work model splitting time between work in the office and from home, while upholding our commitment of providing exceptional products and services to our agents and policyholders.

In this light, the roll-out of our new multi-variate homeowner product was completed with launches in the states of Massachusetts and Vermont.  While conversion to this new, more analytic, data driven model is somewhat disruptive in the short-term, we are very confident in the profit and growth consistency this product will provide us in the longer-term.  Similar product adjustments are occurring within our remaining personal and commercial product lines, with the assistance our affiliated partner, Auto-Owners Insurance Company.

While profit results were excellent in aggregate, due to a benign winter season and fewer overall claims compared to pre-pandemic levels, the severity of losses notably increased across all lines of business, suggesting that claim behavior is also changing with the world around us.  The impact of inflation and supply-chain shortages clearly contributed to this change and it can be expected that these influences will continue to impact our business into the future, thus hardening the Insurance market.

Despite these challenging times, the Company grew written premium by over $8 million to $229.7 million, with the addition of approximately $28 million in new business, delivering an increase of 3.8%.  This profitable growth is a continued demonstration of the Company’s perseverance and commitment to delivering positive results in times of substantial change and uncertainty, further bolstering policyholder and agent confidence in the future of our Organization.

Overall financial results were stellar for the year, generating just under $15.7 million in underwriting profit and over $18 million in realized investment gains.  These earnings combined to produce an 11.6% increase to surplus for a year-end figure of just over $441 million, ensuring our sustained ability to grow, invest in the business, and successfully manage the changing world around us into the future.

Additionally, A.M. Best reaffirmed the “A+” (Superior) Financial Strength Rating of The Concord Group, confirming the success outlined above and continued confidence in our Organization’s ability to lead and manage through trying times.

I am thrilled to share that several outside organizations recognized The Concord Group in 2021 for various accomplishments within our communities and Company.  The Granite United Way presented us with the “2021 Give Award” for outstanding volunteerism and charitable support.  The NH Governor’s Council recognized us with the State Wellness Award for related programs run within the Company.  The Maine Insurance Agents Association selected us as the “Company of the Year” for superior service and overall company-agency relations, and our own associates formally recognized the Company as a “Great Place To Work,” through an in-depth survey and certification process conducted by the Great Place To Work Institute. 

These accomplishments are a direct testament to the care and effort our associates put into their jobs every day, and the positive environment our leaders have been building over the past few years within the Organization.  I am privileged and honored to work with such a group of special people.

I want to thank the Independent Agents we do business with.  They, too, continue to experience the challenges that we do, and they do it with grace and compassion as they support our policyholders.  Lastly, I want to thank our directors and policyholders themselves for their steadfast confidence in our Company.  I look forward to a successful 2022, and our ability to continually adapt and flourish in the changing world around us.