To Our Policyholders and Friends:
The year 2019 marked Loudoun Mutual’s 170th year of service to the policyholders of Virginia. Despite the continued increase in storms, we’re thankful to report after three years of record storm activity, 2019 claims returned to more manageable levels. The ongoing storm activity required Loudoun Mutual to adjust rates, particularly for our homeowners’ policyholders. We did not take this action in haste, but needed to do so to help maintain the Company’s financial security. As a result of the rate adjustments and moderation in storm activity during 2019, these actions led the Company to a modest underwriting profit. An underwriting profit is earned when the premiums taken in exceed the losses and expenses paid for the year. The underwriting profit coupled with the good performance of the Company’s investment portfolio allowed Loudoun Mutual to strengthen policyholder surplus and the Company’s overall financial security in 2019.
Despite the moderation in claims activity, operationally, 2019 was another very busy year for Loudoun Mutual. During the year we successfully completed the implementation of a new policy administration system. The new system allows us to better and more efficiently serve the policyholders and agents. As part of this project, we encourage our policyholders to go to www.loudounmutual.com, click on the “My Policy” tab to check out and sign up for the Company’s updated policyholder customer service portal.
Another significant operational initiative in 2019 was the implementation of a lockbox for premium payments. Policyholders will note that premium payments are now processed in Pittsburgh, PA. We chose to go to the lockbox system to streamline premium processing, enhance security and to help plan for future growth.
In many ways, 2019 was a year which focused on strengthening the foundation for Loudoun Mutual’s ongoing commitment to our policyholders. Building on the strong foundation from 2019 and looking forward to 2020, 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 give back to the communities we serve and focus on long-term stability and security. 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 look forward to continuing 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 long-term value, stability and security of placing your insurance with a mutual company that exists to serve you.
Thank you for allowing us to serve your insurance needs.
Christopher G. Shipe, AIT, CPCU, President
For the Year Ended December 31, 2019