2020 Annual Report

At Our Best

A Message from Rich and Kristen

Utica National CEO, Rich Creedon and President, Kristen Martin

“We’re at our best when you need us most.”

Never did those words ring true more for our company than in 2020. While each year presents us with its own unique challenges, the COVID‑19 pandemic has challenged the entire world – our industry included – and we’re pleased to report that by working together we really were at our best.

This has been something beyond simply “doing business.” It has meant being there on a more personal level for our customers, agents, team members, and the community whenever and however they have needed us.

Our Customers

  • Offering policyholders a one-time Personal Auto Rate Relief Payment Benefit
  • Offering a grace period on payments that were due and spreading the amount owed across remaining payments
  • Waiving late fees for all policies and suspending the fee for taking payments over the phone
  • Accepting photo inspections in lieu of on-site inspections

Our Agents

  • Delivering all customer-service facing services to our agents from remote locations with no interruption
  • Providing continuous communication updates to keep them informed
  • Hosting live webinars featuring senior leaders to provide insights into our COVID‑19 response and creating an online COVID‑19 Hub for important communications and resources

Our Team Members

  • Helping to move 90% of our team to a remote working environment to ensure their safety
  • Giving back to our employees to help pay for unexpected childcare expenses due to school closures
  • Providing frequent updates on the state of the company by our senior leaders
  • Deep cleaning of our corporate headquarters and regional offices to keep those safe who are coming in

Our Community

  • Donating over $325,000 to local nonprofits to help feed the needy and keep restaurants in business
  • Providing over 106,000 medical masks to our agents and essential policyholders
  • Partnering with the Freedom Writers Foundation to provide a virtual learning curriculum for schools

Despite all that challenged us in 2020, our team and our company were able to weather the storm, resulting in many successes, including:

  • Net Written Premium of $1,192,725,496
  • Combined Ratio of 94.4, 2 points better than Plan
  • Growth of 5.4%, compared to a projected industry average of 2.5%
  • Utica Mutual Insurance Company and its affiliates earning an A.M. Best Financial Strength Rating upgrade to A (Excellent)
  • Our company being named a Top Insurance Workplace by Insurance Business America magazine for the third straight year
Utica National CEO, Rich Creedon and President, Kristen Martin

As with each year, in addition to the challenges, there were opportunities – with always more to do to build upon the excitement and success of the previous 12 months. This means that we will continue to strive to be at our best when we’re needed most – for our customers, agents, team members, and community.

Richard P. Creedon, Esq.
Chairman of the Board and CEO

Kristen H. Martin
President and COO

Making a Positive Impact

A Foundation of Helping Others

Hungry families. Restaurant owners and staff affected by business shutdowns. Youngsters enjoying fun and friendly athletic events. Students needing a hand paying for college. And many others...

These are examples of the folks that area nonprofits assist as a part of their mission. Since the Utica National Group Foundation was founded in 1987, in advance of our company’s 75th anniversary, as a part of our mission, children, adults and families have gotten a helping hand during times of need – through the good work of hundreds of causes and organizations which have benefited from millions of dollars in grants.

As our company’s philanthropic arm, the Foundation awarded the following grants in 2020:

General Community

ACR Health

$1,000

Boilermaker Road Race

$15,000

Boilermaker Road Race

$15,000

Central Association for the Blind & Visually Impaired

$500

The Community Foundation

$250,000

The Community Foundation

$50,400

The Community Foundation

$10,000

The Community Foundation

$1,500

Compassion Coalition

$20,000

Cystic Fibrosis Foundation

$1,000

Empowered Pathways

$1,200

For The Good, Inc.

$1,500

Habitat for Humanity Richmond Metro

$500

Hope House

$25,000

The Keys Program

$1,500

MVHS Foundation

$200,000

On Point for College Utica

$25,000

Operation Sunshine

$1,000

The Root Farm

$25,000

Sitrin Foundation

$500

Special Olympics

$500

United Way of the Valley & Greater Utica

$5,000

YMCA – Northwestern CT

$2,500

Zonta Club

$275

Subtotal

$653,875

United Way Contributions

Long Island United Way

$7,500

United Way of Buffalo & Erie County

$2,250

United Way of Central Ohio

$4,500

United Way of Greater Richmond

$4,500

United Way of Massachusetts Bay

$4,500

United Way of Metropolitan Atlanta

$4,500

United Way of Metropolitan Chicago

$1,500

United Way of Metropolitan Dallas

$4,500

United Way of the Valley & Greater Utica

$80,000

United Way (to cover employee contributions)

$160,243

Subtotal

$273,993

Matching Gifts to Colleges

Fellowship Christian School

$2,000

MVCC Foundation

$1,050

St. Bonaventure University

$1,000

St. Lawrence University

$100

University of Rochester

$1,000

Utica College

$1,800

Subtotal

$6,950

Total General Fund: $934,818

Who We Are and What We Do

Utica National is headquartered in New Hartford, NY, and began in 1914 with the founding of its principal company, the Utica Mutual Insurance Company, as a workers' compensation carrier. 2020 marked the company’s 106th anniversary of helping individuals and businesses feel secure, appreciated and respected, while offering a wide range of commercial insurance products, as well as home and auto insurance.

Utica National headquarters, New Hartford, NY

The company is a nationally recognized insurer for various specialized markets, including coverages for small business, educational institutions, volunteer fire departments, and many others. Utica National’s Agents’ Errors & Omissions (E&O) program, providing professional liability coverage for insurance agents and brokers, is one of the largest and longest-running E&O programs in the nation.

The company employs more than 1,300 people countrywide and sells its products through more than 2,500 independent insurance agents around the country. The Utica National companies are rated “A” or “Excellent” with a stable outlook by the A.M. Best Company, one of the premier insurance rating organizations in the United States.

Utica National headquarters, New Hartford, NY

A Team Effort

3 in a row.

Top Insurance Workplace Awards: 2018, 2019, and 2020

Among the accomplishments achieved by working together in 2020 included being named a Top Insurance Workplace for the third straight year by Insurance Business America magazine. Utica National was 1 of 67 companies nationwide to achieve the honor, and 1 of only 9 in the 500+ Employees category. A group of team members filled out an anonymous form evaluating our workplace on a number of metrics, including benefits, compensation, culture, and employee development. Team members also spoke out about which company strategies and initiatives have been particularly effective, including health and family leave benefits, diverse hiring practices, supportive cultures, and how operations have been handled during the COVID-19 pandemic.

Top Insurance Workplace Awards: 2018, 2019, and 2020

Earning an “A.”

A Rated by AM Best

The A.M. Best Company, rater of insurance companies’ financial stability, upgraded our financial strength rating (FSR) from “A-” to “A.” To say that this was years in the making is no exaggeration. It’s been a multi-year effort to achieve this historic result, through a strategy that has included every project, every sale, and every team member – living our values and mission together to achieve success. This upgrade reinforces our strength, credibility, and reliability as a regional carrier to everyone we work with. For the latest rating, access www.ambest.com.

A Rated by AM Best

By the Numbers

Financial Highlights

3.5

Assets

1.2

Direct Written Premium

1.3

Policyholders' Security Fund

12

Dividends to Policyholders

2.3

Liabilities

0.95

Ratio of Premium to Surplus

Comparison of 2020 and 2019

2020

Net Premiums Written $1,192,725,496
Admitted Assets $3,536,117,793
Policyholders' Security Fund $1,256,682,068
Net Premiums Earned $1,151,971,889
Ratio of Losses Incurred to Premiums Earned 49.03%
Ratio of Loss Adjustment Expenses Incurred to Premiums Earned 11.30%
Ratio of Underwriting Expenses Incurred to Premiums Written 33.00%
Ratio of Dividends Incurred to Premiums Earned 1.00%
Combined Underwriting Ratio 94.33%
Underwriting Income $63,204,337
Net Investment Income (Including Realized Capital Gains or Losses) $82,080,665
Dividends to Policyholders $11,924,103
Net Income before before Federal Income Taxes $130,026,044
Federal Income Taxes $26,225,384
NET INCOME FROM OPERATIONS $103,800,660
Gain to Policyholders' Security Fund $115,926,654

2019

Net Premiums Written $1,131,096,524
Admitted Assets $3,258,095,152
Policyholders' Security Fund $1,140,755,414
Net Premiums Earned $1,076,282,143
Ratio of Losses Incurred to Premiums Earned 50.10%
Ratio of Loss Adjustment Expenses Incurred to Premiums Earned 11.92%
Ratio of Underwriting Expenses Incurred to Premiums Written 33.26%
Ratio of Dividends Incurred to Premiums Earned 1.33%
Combined Underwriting Ratio 96.62%
Underwriting Income $32,478,852
Net Investment Income (Including Realized Capital Gains or Losses) $93,455,003
Dividends to Policyholders $14,359,239
Net Income before before Federal Income Taxes $111,424,037
Federal Income Taxes $27,520,251
NET INCOME FROM OPERATIONS $83,903,786
Gain to Policyholders' Security Fund $119,878,222

Providing Guidance and Leadership

Boards of Directors

Utica Mutual Insurance Company

Richard P. Creedon, Esq. * ≠

Chairman of the Board and Chief Executive Officer

Kristen H. Martin

President and Chief Operating Officer

Russell A. Acevedo, M.D., FACP, FCCM, FCCP ≠ ͽ

Medical Director of Intensive Care; Crouse Hospital, Syracuse, NY

C. William Bachman * ** † ‡ ♢ ͽ

Retired; Cohber Press, Rochester, NY

Donald P. Cardarelli ** ‡

Professor of Management Practice, Syracuse University, Whitman School of Management

Paul A. Hagstrom, Ph.D. ** †

Professor of Economics; Director of the Arthur Levitt Public Affairs Center; Hamilton College, Clinton, NY

Gregory M. Harden * ** † ‡ ♢ ͽ

Retired; Harden Furniture Company, McConnellsville, NY

Zelda J. Holcomb, Ph.D. * † ♢ ≠ ͽ

Retired; Holcomb Associates, LLC, Educational Consulting Group, Columbia, MD

Peter J. O’Neill ** ‡

Retired; Agway, Inc. DeWitt, NY

Timothy R. Reed * † ‡ ♢ ≠ ͽ

Consultant; Utica, NY

Linda E. Romano, Esq. * † ♢ ≠ ͽ

Attorney at Law; Bond, Schoeneck & King, Utica, NY

Eric K. Scholl ** ͽ

Private Investor/Consultant; Anna Maria, FL

* Executive Committee Member
** Finance Committee Member
† Personnel, Compensation and Benefits Committee Member
‡ Audit Committee Member
♢ Nominating and Corporate Governance Committee Member
≠ Enterprise Risk Oversight Committee Member
ͽ Strategic Planning Oversight Committee Member

Advisory Board

Alfred E. Calligaris, CPA
Roy A. Cardia
Jerry J. Hartman
Nicholas O. Matt
J. Douglas Robinson
John R. Zapisek

Republic-Franklin Insurance Company

C. William Bachman
Richard P. Creedon, Esq.
Paul A. Hagstrom, Ph.D.
Gregory M. Harden
Zelda J. Holcomb, Ph.D.
Kristen H. Martin
Peter J. O’Neill
Linda E. Romano, Esq.
Eric K. Scholl

Graphic Arts Mutual Insurance Company

Richard P. Creedon, Esq.

Chairman of the Board and Chief Executive Officer

Kristen H. Martin

President and Chief Operating Officer

Russell A. Acevedo, M.D.
C. William Bachman
Gregory M. Harden
Zelda J. Holcomb, Ph.D.
Nicholas O. Matt
Timothy R. Reed

Founders Insurance Company

Mark R. Angelucci, CPCU, ARM
Paul L. Cohen, FCAS
Richard P. Creedon, Esq.
Steven P. Guzski, CEBS
Shannon M. Harjer, MA, CPCU, AIC, ARM
Kristen H. Martin
Armando Martinez
Timothy M. Olson, CPCU, CLU

 

Utica Mutual Insurance Company

Richard P. Creedon, Esq. * ♢

Chairman of the Board and Chief Executive Officer

Kristen H. Martin * ♢

President and Chief Operating Officer

Joseph J. Meyer * ♢

Senior Vice President and Personal Lines Segment Leader, Utica National; President and Chief Operating Officer, Founders Insurance Company

Brian W. Miller * ♢

Vice President – Chief Financial Officer & Treasurer

Louisa S. Ruffine, Esq.

Assistant Vice President – Associate General Counsel, Compliance Officer and Secretary

Executive Vice President

Steven P. Guzski, CEBS * ♢

Senior Vice Presidents

Mark R. Angelucci, CPCU, ARM
Mark C. Askins
Brion Burris
Jolene M. Casatelli, Esq. * ♢
Paul L. Cohen, FCAS * ♢
David B. Gilmet, CPCU, CIC
William K. King, MBA, AU
Brian K. McCulloch, CPCU
Joseph J. Meyer * ♢
Shannon C. Peck, AU, AIS * ♢
Christopher J. Piela, CPA
Brian D. Saville
Bernard J. Turi, Esq. * ♢
Thomas A. Weigand
Michael S. Wolfe, CPCU, CIC, CRM, AU
Franklin E. Zurschmit

Vice Presidents

Ajaz M. Akhtar
Steven D. Alcott, CPCU, ARP
John M. Anderson, CPCU
Steven E. Barry, CPCU
Timothy W. Carlson, MBA
Cheryl Ann DeAngelo, CPCU, AU, ARM, AMIM, AIM, AINS
John H. Eckmair, MBA, CPCU, AU, ARM, ARe, AIC, AINS, AIS * ♢
Michael S. Evolo, CPCU, ARe
Samuel J. Gourley * ♢
Adam M. Kelly, Esq.
Sarah Mariani-Hinman * ♢

Assistant Vice Presidents

David J. Bathrick
Mason J. Bradley, MBA, AU, ARM, CRIS, CPCU
David T. Brown, CPCU, AU
Valerie T. Brown, AU, AINS
Michael J. Buttimer, AIC
Genevieve R. Cahill, CPCU, AIC-M, SCLA
Richard S. Crandall, ACAS
Jacob W. Cundiff, CPCU
Crystal A. Dorn
Andrew J. Feuker, MBA
Sandra J. Giehl, AIAF, IAS
Ryan G. Gifford
Kevin N. Grenier, CPCU
Christopher J. Grisham
Daniel J. Hammond, MS, JD, CPCU, ARe
Patricia S. Healey, AU, CIC
Scott D. Holler, MS, CPCU, SCLA, AIC, ARM
Michael S. Hughes
Jamal Kader
Andrew O. Kimball
Catherine S. Lambert, CPCU, AU
Karen A. LaPlante, CEBS, SPHR, SHRM-SCP
Robert F. Manfredo, CPCU
Christy L. McFadden, CISA
Kimberly A. Meola
Stephen J. Mraz
Stephen T. Orsino
Joanne L. Rankins
Robert R. Skrzypinski
Barbara M. Stacer
Tracy S. Thompson, INS, AU
Kenneth E. Turnipseed
Nancy C. von Glahn
Steven E. West

Founders Officers

Richard P. Creedon, Esq.
Steven P. Guzski, CEBS
Shannon M. Harjer, MA, CPCU, AIC, ARM
Cindy M. Mathes
Armando Martinez
Joseph J. Meyer
Brian W. Miller
Timothy M. Olson, CPCU, CLU
Louisa S. Ruffine, Esq.
Bernard J. Turi, Esq.

* Management Committee Member
♢ Operating Committee Member

Where to Find Us

Home Office:

180 Genesee Street
New Hartford, New York 13413

Agents’ Errors & Omissions Insurance

180 Genesee Street
New Hartford, New York 13413

Eastern Regional Office

180 Genesee Street
New Hartford, New York 13413

Founders Insurance Company

1350 East Touhy Avenue, Suite 200W
Des Plaines, Illinois 60018

Middle Atlantic Regional Office

110 Boulders Parkway, Suite 300
Richmond, Virginia 23225

New England Regional Office

201 Edgewater Drive, Suite 295
Wakefield, Massachusetts 01880

New York Metropolitan Regional Office

1000 Woodbury Road, Suite 400
Woodbury, New York 11797

Republic-Franklin Regional Office

2 Eason Oval, Suite 225
Columbus, Ohio 43219

Southeastern Regional Office

3237 Satellite Boulevard
Building 300, Suite 450
Duluth, Georgia 30096

Southwestern Regional Office

2435 N. Central Expressway, Suite 400
Richardson, Texas 75080

District Claims Office

130 John Muir Drive
Amherst, New York 14228