To Our Policyholders and Friends:
Much like 2016 and 2017, because of the heavy storm activity, 2018 was another challenging year for both Loudoun Mutual and the insurance industry. During 2018, as a result of multiple serious storm events, Loudoun Mutual had the opportunity to help more than twice as many of our policyholders as we do in a normal year. Historically, 4% to 5% of Loudoun Mutual’s policyholders have a claim during the year. In 2018 over 9% of Loudoun Mutual’s policyholders incurred a loss. This is why Loudoun Mutual exists and this is our purpose as an organization – to pay our policyholders’ claims fairly and promptly. Looking back on 2018, Loudoun Mutual employees worked extremely hard to fulfill that purpose by putting in many long hours, including nights and weekends processing claims.
Despite the third consecutive year of record storm activity, Loudoun Mutual’s financial and operational position remains very strong. The Company continues to maintain a highly liquid and conservative balance sheet and the Company remains on target to implement and complete many of the major strategic initiatives outlined in its business plan. Financially, AM Best, one of the leading insurance industry rating firms, showed continued confidence in Loudoun Mutual by affirming the Company’s A rating in late 2018. Operationally, the Company made substantial progress in implementing a new policy administration system to better serve our policyholders and agents. As part of this project, we encourage our policyholders to go to www.loudounmutual.com to check out and sign up for the Company’s updated policyholder customer service portal.
Looking forward to 2019, the 170th anniversary of the founding of Loudoun Mutual, we pledge to maintain our tradition of service and financial security. Loudoun Mutual is a mutual insurance company; we are owned by and operated for the benefit of our policyholders. This means we focus on long term stability and security rather than worrying about meeting a quarterly earning target. At Loudoun Mutual we exist to pay policyholders’ claims rather than return profits to stockholders.
To our existing policyholders – THANK YOU! We sincerely appreciate your business and we pledge to continue our tradition of service to you. We encourage you to contact your Loudoun Mutual agent to have your policy reviewed. Regular review of your insurance policy ensures we are doing everything we can to properly serve you and you are receiving the best value for your premium dollar.
If you are a new policyholder to Loudoun Mutual - WELCOME! We hope to establish a tradition of service with you, demonstrating the longterm value, stability and security of placing your insurance with a mutual company.
Thank you for allowing us to serve your insurance needs.
Christopher G. Shipe, AIT, CPCU
For the Year Ended December 31, 2018