Loudoun Mutual's 173rd Year of Service to Our Policyholders

To Our Policyholders and Friends:

2023 begins Loudoun Mutual’s 174th year of service to our policyholders. Since 1849, Loudoun Mutual has demonstrated a well-established tradition of taking care of our policyholders when they have a claim and serving the needs of our policyholders by maintaining a local presence throughout the Commonwealth. Reviewing the Company’s response to 2022’s record breaking claims activity clearly demonstrated the value of having insurance with Loudoun Mutual.

Loudoun Mutual’s financial results for 2021 and 2022 varied widely. The Company experienced a very successful year in 2021, but 2022 was extremely challenging. In 2022, severe weather events and volatile financial markets had a serious impact on the insurance industry. Loudoun Mutual’s results in 2022 were similarly impacted by multiple devastating weather events and an extremely difficult investment environment. During 2022, Loudoun Mutual employees worked diligently to fulfill the Company’s purpose of taking care of our policyholders when they experienced a claim. The claims staff put in many long hours, including nights and weekends, helping our policyholders. Despite the record claims activity, the Company remains financially secure through prudent and conservative investments. Strong financial results from 2021 helped Loudoun Mutual successfully navigate the challenges of 2022.

The ever-increasing frequency and severity of storms has been very challenging for the insurance industry and Loudoun Mutual. Despite this fact, Loudoun Mutual continues to commit to caring for and serving our policyholders and their communities. Our culture of caring combined with our tradition of service guide us to address challenges proactively and diligently. To help mitigate the effects of elevated storm activity, Loudoun Mutual has increased the use of weather analytics to assist in underwriting and pricing of policies. The Company has affiliated with and assumed control of Community Insurance in Pennsylvania to help with diversification. In addition, we have increased our writings of lines of business less sensitive to weather. While we have a long tradition of providing high-touch personal service, we also continue to enhance our high-tech capabilities with increased online customer service options, including a recently introduced mobile app. As Loudoun Mutual moves forward into 2023, we remain firmly committed to providing long-term stability and security for our policyholders and the communities we serve. We pledge to maintain our culture of caring with our unwavering commitment to fulfilling our purpose of serving our policyholders when they have a claim.

To our policyholders – THANK YOU! We sincerely appreciate your business and are grateful for your ongoing trust. We encourage you to contact your Loudoun Mutual agent to review your policy. In this time of inflation and changing building costs, regular review of your insurance policy with your agent ensures we are doing everything we can to properly insure your property and give you the best value for your premium dollar.

Once again, thank you for allowing us to serve your insurance needs.

Christopher G. Shipe, AIT, CPCU, President