LINCOLN, RI – Amica Mutual Insurance Co. reported positive financial results in 2012, despite a second consecutive year of historic catastrophic claims mainly due to Superstorm Sandy, an extremely competitive insurance market and a flat economy.
Highlights for 2012 include policy growth of almost 22,000 policies, an increase in net income to $71 million and positive results for Amica Life, which saw unprecedented growth and sales due to a concerted effort to market life products to the general public.
Robert A. DiMuccio, president, chairman and CEO of Amica Mutual Insurance Co., shared those highlights during the company’s annual meeting at its corporate headquarters earlier today.
"Sandy will go down as one of our costliest catastrophes,” DiMuccio said. “Amica opened more than 13,000 claims and incurred roughly $66 million in losses from Sandy, with the vast majority already paid and resolved. I am very proud of the service we provided to our customers.”
The company’s focus on risk management reduced losses from Sandy to a moderate earnings impact, and its financial position improved with a 6.5 percent increase in assets and 5.2 percent increase in surplus compare to 2011.
"Our emphasis on growing the business, appropriate pricing and controlling expenses, when coupled with improved loss results, provided us with a satisfying net increase in our bottom line of about $9 million for 2012 compared to 2011,” DiMuccio said.
One of the highlights of 2012 centered on Amica Life, Amica’s wholly owned subsidiary that sells life insurance and annuity products. Once a company that solely provided life products for Amica Mutual customers, Amica Life set new competitive rates on its term life products, increased its advertising and set aggressive sales goals for 2012.
DiMuccio reported that life insurance in force at the end of 2012 amounted to nearly $31 billion, an increase of 7.4 percent from 2011. In addition, new business issued in 2012 totaled $2.9 billion, which is nearly a 49 percent increase over new business issued the prior year.
"This unprecedented growth in our life business is partly due to our excellent reputation in the marketplace. But it also represents the hard work at Amica Life. We are especially proud of their successes.”
Amica Mutual Insurance Company, the nation's oldest mutual insurer of automobiles, was founded in 1907. The company, with corporate headquarters in Lincoln, RI, is a national writer of automobile, homeowners, marine and personal umbrella liability insurance. Life coverage is available through Amica Life Insurance Company, a wholly owned subsidiary. Amica employs more than 3,100 people in 40 offices across the country.
CONTACT: Vince Burks, Corporate Communications, 50 Amica Way,
Lincoln, RI 02865-1155, 800-652-6422, ext. 24563
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