To the Fore

Document Sample
To the Fore Powered By Docstoc
					       Annual Report 2007

Amica Insurance:
 To the Fore
                                                                                                               Financial Highlights
    President’s                            Even if 2007 had not included an historic milestone for
                                         Amica, it still would be remembered as a dynamic year for
                                                                                                              Net premiums written
                                                                                                              Underwriting gain           238,700
                                                                                                                                                 2007   2006
                                                                                                                                       $1,319,478 $1,337,656 	

                                                                                                              Investment gain (less              	          	 	
                                         the company and the insurance industry. I’d like to highlight          capital gains tax)        156,436    153,535 	       2,901
                                         some of the good things that came our way during this past year:     Dividends to policyholders 122,723     129,302 	      (6,579)
                                                                                                              Net income                  257,693    255,318 	       2,375
                                           • The March 5 issue of BusinessWeek magazine featured              Total assets              4,094,711 3,908,917 	      185,794
                                             a cover story, “Customer Service Champs,” naming                 Cash and invested assets 3,607,353 3,431,155 	       176,198
                                             Amica as one of the country’s 25 very best “client-pleasing”     Loss reserves                      	          	 	
                                                                                                                (including loss                  	          	 	
                                             providers of customer service.                                     adjusting expenses)       902,109    928,008 	     (25,899)
                                                                                                              Surplus                   2,289,876 2,090,496 	      199,380
                                           • A.M. Best Company affirmed Amica’s financial strength

                                                                                                              Policies in force         1,170,090 1,140,971 	       29,119
           e have great memories of          rating of A++ (Superior).                                        Reported claims:                   	          	 	
                                                                                                                Automobile                230,763    226,458 	        4,305
           Amica’s 100th anniversary                                                                            Homeowner and
                                           • Amica served as Title Sponsor of Amica Insurance Tall              related coverages          26,882     28,974 	        (2,092)
    year. In fact, I think we squeezed       Ships Rhode Island 2007 in Newport, Rhode Island.                                                550        824 	          (274)
    every celebratory moment we could                                                                         All dollar amounts in thousands.
                                           • Amica was honored by the Wellness Councils of America
    out of our centennial, making it         (WELCOA) with a Platinum Well Workplace Award.
    one that we’ll never forget.
                                           • For the eighth consecutive year, Amica ranked
                                                                                                            Leadership and Teamwork at Amica
                                             “Highest in Customer Satisfaction Among National
                                             Auto Insurers” in the J.D. Power and Associates 2007             Amica has proven itself time and again as a skilled and
                                             National Auto Insurance Satisfaction StudySM.*                 knowledgeable leader in the field of customer service. But
                                                                                                            we know we can’t be capable leaders without capable teams
                                           • Amica received the 2007 Pro Patria Award from the              of employees. To illustrate this idea, Paul Pyne, Amica’s
                                             Rhode Island Committee for Employer Support of                 Superintendent of Claims, explains how Amica teamwork
                                             the Guard and Reserve for demonstrating exceptional            comes to the fore whenever we deal with catastrophic losses:
                                             support and adopting “above and beyond” pay and                   “Responding to a CAT involves more than just Claims
                                             benefit policies for deployed guard and reserve members.       employees. For example, PLPD employees call insureds in the
                                                                                                            geographic area impacted by a CAT to determine if those insureds
                                           • J.D. Power and Associates announced that Amica                 sustained damage. CIS employees make sure our computer
                                             ranked “Highest in Customer Satisfaction Among                 systems are working properly during increased demand and
                                             National Homeowners Insurers” for the sixth                    produce scans that are essential to manage our response to the
                                             consecutive year.*                                             CAT and to respond to internal and external reporting needs.
                                                                                                            Meanwhile, Accounting employees respond to an increased
                                           These honors recognized Amica not only as a leader in            demand for claim card accounts, travel advances, making travel
                                         the insurance field, but also in the areas of human resources,     arrangements for employees, reinsurance-related issues, and
                                         health and wellness, and civic involvement. They represent         data calls from insurance departments. Marketing updates the
                                         our efforts not only to serve our policyholders, but to serve Web site; Corporate Communications issues press
                                         our employees and our community to the best of our ability.        releases to the media; and Corporate Services coordinates
                                         These honors recognize our abilities as leaders today and          after-hours building access and postal needs.”
                                         our possibilities to grow in the future.
                                                                                                              This example points to Amica’s strength – the teamwork
                                                                                                            and leadership that underpins our excellent customer service
                                                                                                            when needed most. Of course, this teamwork takes place
                                                                                                                                                           continued on page 16

2                                                                                                                                                                               3
       At Amica, quality service means exceeding         you say you will do. Every day and every time.
    customer expectations. Period.                          That’s why we consider the independent
       In 2007, Amica received two more J.D. Power       J.D. Power and Associates studies to have such merit.
    and Associates awards for ranking “highest in        Our results are based solely on the responses of the
    customer satisfaction” among auto and homeowner      people who count the most — Amica policyholders.
    insurers. This brings our total number to 15            Attaining and, even more important, maintaining
    J.D. Power and Associates awards over the past       our service edge is critical. We know that. We
    eight years – something no other insurer in this     make it our objective to hire and train employees
    country, large or small, can say.                    who can take our company’s deep-rooted ideals
       To be recognized as a leader in customer          of service off the page and into their interactions
    satisfaction is no small feat when every service     with policyholders.
    provider is staking its claim to be the best. How       We encourage our policyholders to let us know
    can you know who really backs their promises?        how we’re doing. Your letters and e-mails to Amica
       At Amica, we know service is much more than       employees are read and passed on — they have
    awards or pledges of assurance. We know it’s about   become the strong mast for the principles we first
    people and their actions. It’s about doing what      raised more than 100 years ago.

                                       “Well done is better than well said.
                                                               — Benjamin Franklin

4                                                                                                                5
       Careful and ethical decision-making has always       in the United States started as mutual organizations.
    been an essential part of Amica’s financial strength.   Today, the vast majority are stock companies,
    This conservative position is what makes Amica          owned by stockholders, who expect a financial
    a stable company with a strong capital position,        return on their investment.
    increased assets, consistent growth, and financial         This shift is significant: While mutual
    gains year after year. More simply put, it means        organizations operate with a long-term view to
    security for our customers.                             create enduring stability for the policyholders, stock
       In fact, in 2007, A.M. Best Company, a leading       companies must weigh the needs of policyholders
    insurance industry analyst, once again awarded          against the bottom line and stockholder gains.
    Amica Mutual Insurance Company its highest                 Due to its continuing status as a mutual insurer,
    rating, A++ (Superior).* Amica Property &               Amica policyholders maintain the right to vote
    Casualty Insurance Company and Amica Lloyd’s            for Amica’s Board of Directors and (in many states)
    of Texas were also assigned this rating, which is       to receive dividends. Amica continues to be directly
    only merited by companies that have on balance          responsible to its policyholders.
    superior financial strength, operating performance,        Amica’s role as a leading insurance provider
    and market profile. This means, according to            takes on even greater importance during these
    A.M. Best, that Amica has a very strong ability         volatile times. As we look ahead, we are committed
    to meet ongoing obligations to our policyholders.       to maintaining our mutual structure and financial
       Another source of Amica’s financial strength         stability — which, when woven together, provide
    is its structure as a mutual insurance company,         exceptional security for you.
    meaning that those who need insurance protection
                                                            *A.M. Best Company. 23 May 2007.
    (policyholders) also have “ownership” in the
    company. Historically, most insurance companies

                  “Weave me a rope that will pull
                   me through these impossible times.
                                   — Tim Finn, singer/songwriter

6                                                                                                                    7
      In a world of complicated corporate strategies       after some 35 years with the company, this is
    and company mission statements, Amica’s way of         what one veteran training specialist had to say
    doing business can be stated quite simply:             about Amica’s strong recruitment practices and
                                                           training programs:
      • Always drop what you’re doing to help
        a policyholder.                                      “I really feel the future of Amica is secure because
                                                           we have the best people out there, both experienced
      • Always do the right thing.                         and new people. You can see how much veteran
                                                           employees, along with our new employees, care and
      This “Amica way” has been passed down to             believe in what they’re doing.”
    new employees both formally, in training classes,
    and informally, in daily interactions large and          In 2007, Amica’s 100th anniversary was
    small. It is the common link for 3,000 Amica           dedicated to its employees and pensioners, who
    employees — from all walks of life and all over        represent a living network of past and present
    the country — who work seamlessly together in          experience. One special project, a commemorative
    a unique, customer-focused company that makes          brick walkway at the company’s corporate
    a difference in people’s lives.                        headquarters, recognized all Amica employees
      This can be seen much more clearly through           with 25 years of service throughout the company’s
    the eyes of someone who trains new Amica               existence. The memorial is an elegant testament
    employees on a daily basis. On the verge of retiring   to teamwork — a lasting tribute to individuals.

          “The leaders who work most effectively . . .
           don’t think ‘I. They think ‘we’; they think ‘team’.”
                                      — Peter Drucker, management consultant

8                                                                                                                   9
         “Don’t just talk the talk, walk the walk.”           consistent ethical standards in everything it does.
         This common saying may sound a bit informal          In fact, everyone at Amica has a role to play.
      in today’s corporate world, but it states an everyday      That’s why individual Amica employees are
      goal at Amica that begins with ethical leadership       also encouraged to volunteer their time through
      and filters throughout the organization.                the Amica Citizenship Grant Program. Employees
         From its corporate headquarters to its branches      apply for grant money and, based on their personal
      across the country, Amica has put community service     commitment, Amica’s grant committee awards
      into action, from local efforts in neighborhood         varying amounts to nonprofit organizations in
      schools to national fundraising initiatives. In 2007,   employees’ names. Needless to say, Amica’s
      the company’s charitable arm, Amica Companies           support of its employees’ own personal causes
      Foundation, awarded $1.3 million to a variety of        has a powerful impact at both personal and
      qualified 501(C)(3) organizations. In addition,         community levels.
      the company sponsored numerous events,                     With this moral compass providing direction,
      organizations, and local initiatives.                   Amica’s commitment to corporate citizenship
         Playing a dynamic role as a good corporate           and service translates into a strong work-life
      neighbor is more than an “extra” at Amica.              balance that is essential in today’s world.
      It represents the company’s belief in applying

        “Conscience is our magnetic compass, reason our chart.
                             — Joseph Cook, sixth Prime Minister of Australia

10                                                                                                                  11
                 Amica Mutual ranks highest in the J.D. Power and
               Associates 2006 Collision Repair Satisfaction Study.

                 Amica expands its Matching Gift Program to match an
               unlimited number of employee gifts to non-educational, non-
               profit organizations that are tax-exempt under 501(c)(3) status.

     in 2007
                 Amica celebrates 100 years of doing business and receives
               special congratulations from the state of Rhode Island’s
               General Assembly.
                 The March 5 issue of BusinessWeek magazine features a cover
               story, “Customer Service Champs,” naming Amica as one of
               the 25 very best “client-pleasing” providers of customer service.

                A.M. Best Co. affirms Amica’s financial strength rating of
               A++ (Superior) and the A+ (Superior) rating for Amica Life.

                Amica serves as title sponsor of Amica Insurance Tall Ships
               Rhode Island 2007 in Newport, Rhode Island.

                Amica is honored by the Wellness Councils of America
               (WELCOA) with a Platinum Well Workplace Award.

                 For the eighth consecutive year, Amica ranks “Highest in
               Customer Satisfaction Among National Auto Insurers” in the
               J.D. Power and Associates 2006 National Auto Insurance StudySM.

                  Amica receives the 2007 Pro Patria Award from the Rhode
               Island Committee for Employer Support of the Guard and
               Reserve for demonstrating exceptional support and adopting
               “above and beyond” pay and benefit policies.

                 J.D. Power and Associates announces that Amica ranks
               “Highest in Customer Satisfaction Among Homeowners
               Insurers” for the sixth consecutive year.
                 The Amica Insurance Breakers Marathon 2007 attracts
               some 900 runners and members of relay teams in Newport,
               Rhode Island.

                 Amica sends policyholders its specially commissioned
               100th Anniversary Thanksgiving Card by painter and muralist
               Harley W. Bartlett.

                  All employees and pensioners receive copies of Amica’s
               illustrated biography, A Century of Service: 1907-2007.
12                                                                          13
     Dear Amica,
       January 19, 2007
       One Sunday night [I was in an accident] on the Ohio Turnpike. The car, later totaled, was a mess, but thanks
       to seatbelts, I was uninjured. Over several following days, I received an astonishing amount of help [from] the
       Cincinnati Amica Office. I was told what to expect under the terms of my policy and was guided throughout on
       what I needed to provide and what Amica would do. . . . my gratitude to all those at Amica who were so helpful.
                                                                                                     William M., Virginia

       June 14, 2007
       I have been involved in the claims business for 25 years — as a field adjuster, supervisor, analyst, and most
       recently as claims manager. . . . It is without reservation that I can say I have never experienced the level of
       professionalism, courtesy, and kindness equal to that provided by your claim and underwriting staff. . . . It has
       been a real pleasure doing business with Amica.
                                                                                                     Stephen J., Louisiana

       August 18, 2007
       What is wrong with Amica? 1. You don’t outsource. 2. You answer your phones with living, caring people.
       3. You are efficient. 4. You do follow-up. 5. You are helpful and fair. 6. You are not bureaucratic. . . . I guess
       I’ll stick with you because your methods have kept you successful for 100 years.
                                                                                                   Dolores W., California

       September 4, 2007
       On February 17, 2007, we experienced a kitchen fire which put us out of our house for more than three months.
       This letter is to thank you and your company for immediately taking action to get our house, clothes, etc., back
       to a clean and livable condition. . . . We wish to especially thank you for employing such considerate and
       knowledgeable people who guided us through the whole process to a successful conclusion.
                                                                                                  Ralph W., Rhode Island

     “Dealing with your company has been the longest, most
      pleasant business relationship we have ever had.
                                                         — Robert B., North Carolina

14                                                                                                                           15
President’s Message
continued from page 3

every day. That’s why we can operate so seamlessly during         The Challenges of 2007                                            Financial Results for 2007                                       Surplus: Policyholder surplus on December 31, 2007,
a catastrophic event and why we can be there for our                                                                                                                                                 amounted to $2,289,876,053, an increase of $199,380,368
                                                                    Despite predictions of persistent and extensive storm           Net Income: Total net income, including realized capital
policyholders when they need us most.                                                                                                                                                                from year-end 2006.
                                                                  patterns, we watched another hurricane season slip quietly        gains, for Amica’s property and casualty operations was
                                                                  away. There’s no doubt another catastrophe the size of            $257,693,233 in 2007. This compares to $255,318,364
A Look at 2007 Initiatives                                                                                                          in 2006.
                                                                                                                                                                                                     Fiscally Sound: One of the best measurements of Amica’s
                                                                  Katrina will occur; it’s just a matter of where and when as
                                                                                                                                                                                                     financial health comes from the A.M. Best Company,
  Within the framework of the workday, 2007 was an                we continue to plan for the worst and hope for the best.
                                                                                                                                                                                                     which has once again awarded Amica Mutual its highest
exciting time for Amica. Efforts to keep our customer service       2007 presented challenges for Amica and the insurance           Net Income for Life Operations: Our wholly owned life
                                                                                                                                                                                                     rating, A++ (Superior). This rating reflects our superior
at the forefront – by expanding service through new               industry. While our exposure to hurricanes was limited, we        insurance subsidiary, Amica Life Insurance Company, ended
                                                                                                                                                                                                     capitalization, solid operating performance, and strong
technologies, employee training and development, and              did experience a very active wildfire season in Southern          the year with net income of $10,051,233, as compared to
                                                                                                                                                                                                     market presence as one of the 60 largest property/casualty
enhanced workflows – continued to be our focus. In fact,          California. Considering how widespread these fires were,          $11,410,080 in 2006.
                                                                                                                                                                                                     insurers in the country.
2007 saw initiatives that impacted all areas of the company:      Amica was very fortunate, with limited claims activity
                                                                  reported. This is a credit to our fine underwriting practices.    Loss Ratio: In 2007, our losses incurred totaled $649,723,544,
                                                                                                                                                                                                     Community/Charitable Endeavors: We are proud to be
  • Our Service Center Operations – East and National Sales       In typical Amica fashion, our claims staff quickly and            which was 49.1 percent of premiums earned, compared to
                                                                                                                                                                                                     actively involved in our communities and to support programs
    Center were updated, giving customer representatives          skillfully responded to policyholders’ needs.                     47.1 percent in 2006.
                                                                                                                                                                                                     that directly impact the lives of our neighbors. In 2007, the
    faster access to policyholder files to better serve             Meanwhile, squalls continued to intensify in the legislative
                                                                                                                                                                                                     Amica Companies Foundation awarded $1,283,553 to a
    our customers.                                                arena in many states. That’s because most major insurers          Expense Ratio: Other underwriting expenses decreased
                                                                                                                                                                                                     variety of qualified 501(C)(3) organizations.
                                                                  have re-evaluated their coastal exposures and risks from Texas    by $14,609,922 to $291,138,965 in 2007. The other
  • Our “paperless” claim file system and customer                to Massachusetts and have stopped writing or renewing             underwriting expense ratio of 22.0 percent is down from
    management application were introduced on a limited           homeowner insurance in these high-risk areas. Due to Amica’s      22.6 percent in 2006.                                            Looking Ahead
    basis. With full implementation expected later in             history of prudent containment of exposure to risk, it has                                                                           We are thankful to have had the opportunity to celebrate
    2008, this also means a “greener” Amica.                      not had to take such action.                                      Combined Ratio: At the end of 2007, our combined ratio           100 years of service and to reflect on Amica’s strengths in
                                                                    Rate decreases and a softer market also meant intensified       on an earned basis was 91.2 percent, which is up from 89.7       2007. We are proud to work in an industry that supports
  • We continued to refine our rating plan – an endless           competition among insurers for new policyholder business.         percent in 2006.                                                 the everyday dreams of so many Americans.
    task of fine-tuning the right price for each risk in an       One indicator of increased competition was advertising                                                                               We look forward to the new opportunities and challenges
    ever-changing world.                                          expenditures, which rose at record rates, according to the        Leverage Ratio: Amica’s net premiums-written-to-surplus          that the next 100 years will present and pledge that customer
                                                                  Insurance Information Institute.                                  ratio at year-end was .58:1, compared to .64:1 in 2006 –         service will remain at the heart of our endeavors.
  • We implemented effective advertising campaigns by               Although Amica is still relatively new to the advertising       an indication of Amica’s superior financial strength.
    incorporating a memorable brand image and introducing         arena, we’re learning how expensive it is to play this game.                                                                          Respectfully submitted,
    Amica to more potential customers in key markets.             No doubt the costs will keep rising as industry powerhouses       Investment and Stock Portfolio: Amica’s investment
                                                                  wield their large budgets and talented creative teams. In fact,   income for 2007 was $126,272,981, compared to $123,879,675
  • We successfully launched a completely revamped                insurance has now become an innovative force on the               in 2006. In addition, realized capital gains for 2007 were in December that provides our customers             national advertising scene.                                       $47,567,404 as compared to $42,098,671 in 2006.
    with information about Amica, their personal claims,            If you’ve watched our competitors’ advertising, you’ll notice                                                                       Robert A. DiMuccio
    and their billing information right at their fingertips.      their emphasis on service: the new customer programs with         Liabilities: Liabilities totaled $1,804,834,729 at the end          President and Chief Executive Officer
                                                                  trendy names, the surprised consumer who gets the VIP             of 2007. Loss and loss-adjusting expense reserves were
  As we look ahead, we will continue to work on these             treatment, or the focus on 24/7 availability. They even have      $715,816,908 and $186,291,844 respectively at the close
                                                                                                                                                                                                     * Amica received the highest numerical scores in the proprietary J.D. Power and Associates 2000-2007
initiatives. We can also mark another milestone, this time at     a catchy name for it — the “customer experience.”                 of 2007 – a combined decrease of $25,899,462 from 2006.           National Auto Insurance Satisfaction StudiesSM. 2007 Study based on 16,012 responses from
Amica Life, which turns 40 years old. Once considered a             They’re promoting a service concept that has been               The reserve for unearned premiums decreased to $684,984,754       policyholders of 26 insurance carriers, who were surveyed from March-April 2007 about their
                                                                                                                                                                                                      experiences and perceptions. Amica received the highest numerical score in the proprietary J.D.
youthful offshoot of Amica, Amica Life has proven to be a         considered a staple all along at Amica. That’s why it’s now       at December 31, 2007, from $688,419,511 a year earlier.           Power and Associates 2002-2007 Homeowners Insurance StudiesSM. 2007 Study based on 10,903
cornerstone in our efforts to provide a full range of insurance   more important than ever to get our message out, and why                                                                            responses from policyholders of 23 insurance carriers, who were surveyed from April-June 2007
                                                                                                                                                                                                      about their experiences and perceptions.
products to our policyholders.                                    we will continue to search for new creative venues.                                                                                 Visit

16                                                                                                                                                                                                                                                                                                  17
 Board of Directors                                                                                                                                 Senior Staff
                                                                                                                                                      1. Robert A. DiMuccio
                                     Patricia W. Chadwick                                 Jeffrey P. Aiken                                               President and Chief Executive Officer
                                     President, Ravengate Partners, LLC              Attorney at Law, Whyte
                                     Age 59. Director since 1992.                    Hirschboeck Dudek S.C.
                                     1, 3                                       Age 61. Director since 1993.
                                                                                                1, 4 (Chair)
                                                                                                                                                      2. M. Stuart Towsey, Jr.
                                                                                                                                                         Executive Vice President

                                                                                                                                                      3. Mary Q. Williamson
                                                                                                                                                         Senior Vice President and Treasurer                            1    2

            Thomas A. Taylor                                                                                     Ronald K. Machtley
    President and Chief Executive                                                                                President, Bryant University         4. Robert K. Benson
          Officer (Retired), Amica                                                                                Age 59. Director since 1999.            Senior Vice President and Chief Investment Officer
    Age 65. Director since 1994.                                                                                 1, 2, 5
                             1, 2
                                                                                                                                                      5. James E. McDermott, Jr.
                                                                                                                                                         Senior Vice President and Amica Life General Manager

                                                                                                                                                      6. Robert K. MacKenzie                                       3    4    5
                                     Andrew M. Erickson                             Barry G. Hittner, J.D.
                                     Senior Executive Vice President      Of Counsel, Cameron & Mittleman LLP                                            Vice President and Secretary
                                     (Retired), Amica                           Age 62. Director since 2000.
                                     Age 68. Director since 2000.                      1, 2 (Chair), 5 (Chair)
                                     1, 3 (Chair)                                                                                                     7. Robert P. Suglia
                                                                                                                                                         Vice President and General Counsel

                                                                                                                                                      8. Helen A. MacNeil
                                                                                                                                                         Senior Vice President – Personal Lines Product Division
            Cheryl W. Snead                                                                                      Michael D. Jeans
    President and Chief Executive                                                                                President, New Directions, Inc.                                                                   6    7    8
 Officer, Banneker Industries, Inc.                                                                               Age 59. Director since 2001.
   Age 50. Director since 2000.                                                                                  1, 2                                 9. Louis P. Peranzi, Jr.
                             1, 3                                                                                                                        Senior Vice President – Corporate Information Systems

                                                                                                                                                     10. Paul A. Pyne
                                                                                                                                                         Senior Vice President – Claims

                                     Donald Julian Reaves, Ph.D.                     Robert A. DiMuccio
                                     Chancellor, Winston-Salem                           President and Chief                                         11. Kathleen F. Curran
                                     State University                                Executive Officer, Amica                                            Vice President – Rating Information Systems
                                     Age 61. Director since 2004.               Age 50. Director since 2005.                                                                                                       9    10   11
                                     1, 2                                                           1 (Chair)
                                                                                                                                                     12. Theodore C. Murphy
                                                                                                                                                         Vice President – Claims

                                                                                                                                                     13. Stephen F. Dolan
                                                                                                                                                         Vice President – Accounting
Richard A. Plotkin, CPA/PFS                                                                                      Edward F. DeGraan
          Shareholder, Tofias PC                                                                                 Vice-chairman—Gillette (Retired)
    Age 65. Director since 2005.                                                                                 Age 64. Director since 2006.        14. Jill H. Andy                                              12   13   14
                            1, 4                                                                                 1, 4                                    Vice President – Human Resources

  Committees of the Board of Directors
  1 Finance Committee 2 Audit Committee 3 Nominating Committee 4 Executive Compensation Committee 5 Audit Committee—Amica Pension Fund
  18                                                                                                                                                                                                                              19
     Financial Summary                                                                                                                    Statutory Statements of Income
                                                                                                                                          Years Ended December 31, 2007 and 2006

                                                                                                                                          Underwriting Income:
                                                                                                                                            Premiums earned

                                                                                                                                                                                                                                     $ ______________

                                                                                                                                                                                                                                                           $ ______________

     Combined P&C Operations                                                                                                              Underwriting Expenses:
     Statutory Statements of Assets,                                                                                                        Losses incurred                                                                               649,723,544	      	 637,568,821
     Liabilities, and Surplus to Policyholders                                                                                              Loss expenses incurred                                                                        143,349,735	      	 140,190,682
     December 31, 2007 and 2006                                                                                                             Other underwriting expenses                                                                   291,138,965	
                                                                                                                                                                                                                                        ______________          305,748,887
                                                                                                               2007            2006            Total underwriting expenses                                                               1,084,212,244	        1,083,508,390

     Bonds and debt securities                                                                  $ 2,018,681,991 $ 1,962,426,581                Net underwriting gain                                                                      238,700,448	
                                                                                                                                                                                                                                        ______________          269,009,761
     Common stocks                                                                                 1,444,865,913	 	 1,348,994,453
     Real estate                                                                                      61,454,979	 	     61,191,663        Investment and Other Income:
     Cash and short-term investments                                                                  41,827,774	 	     32,992,670          Net investment income, including real estate income                                           128,895,578	      	 126,435,801
     Other invested assets                                                                            40,455,086	 	     25,550,115          Net realized capital gains less capital gains tax                                               27,540,077	     	     27,098,990
     Receivable for securities                                                                            66,985	 	 ______________
                                                                                                                                 -          Other income, net                                                                                3,280,417	
                                                                                                                                                                                                                                        ______________      	 ______________
                                                                                                                                               Total investment and other income                                                          159,716,072	
                                                                                                                                                                                                                                        ______________          156,507,240
       Total cash and invested assets                                                              3,607,352,728	 	 3,431,155,482

     Investment income due and accrued                                       25,448,056	                               	     23,954,276   Income before dividends and before Federal income taxes                                          398,416,520	     	   425,517,001
     Premiums receivable                                                   377,833,864	                                	 382,535,605
     Reinsurance recoverable on paid losses and loss adjustment expenses      7,153,698	                               	     10,172,303   Dividends to policyholders                                                                      122,722,662	
                                                                                                                                                                                                                                        ______________      	 ______________
     Federal income tax recoverable                                          18,075,016	                               	     16,987,196
     Deferred tax asset                                                       2,265,613	                               	      1,752,634   Income after dividends but before Federal income taxes                                           275,693,858	     	   296,215,500
     Amica Companies Supplemental Retirement Trust                           30,601,510	                               	     23,578,624
     Equities and deposits in pools and associations                         22,240,713	                               	     18,586,743   Federal income taxes                                                                              18,000,625	
                                                                                                                                                                                                                                        ______________      	 ______________
     Other assets admitted                                                    3,739,584	
                                                                         ______________                                         193,648
                                                                                                                                               Net income                                                                                257,693,233
                                                                                                                                                                                                                                     $ ______________
                                                                                                                                                                                                                                       ______________          255,318,364
                                                                                                                                                                                                                                                           $ ______________
       Total assets                                                                                4,094,710,782
                                                                                                $ ______________
                                                                                                  ______________         3,908,916,511
                                                                                                                      $ ______________

     Liabilities and Surplus to Policyholders:
                                                                                                                                          Statutory Statements of Surplus to Policyholders
     Reserves for losses and loss adjustment expenses                                           $      902,108,752 $ 928,008,214          Years Ended December 31, 2007 and 2006
                                                                                                                                                                                                                                                    2007             2006
     Reinsurance payable on paid losses                                                                  5,996,000	 	      4,757,000
     Accrued other expenses                                                                             37,612,901	 	     49,734,070      Surplus	to	policyholders	at	January	1	                                                         2,090,495,685
                                                                                                                                                                                                                                     $	 ______________        1,796,166,098
                                                                                                                                                                                                                                                           $ ______________
     Deferred tax liability                                                                            106,300,209	 	     85,174,852
     Reserve for unearned premiums                                                                     684,984,754	 	 688,419,511         Net income                                                                                      257,693,233	      	 255,318,364
     Dividends payable to policyholders                                                                  8,586,965	 	      8,893,055      Net change in unrealized capital gains                                                            55,747,485	     	     88,590,321
     Ceded reinsurance premiums payable                                                                  6,344,171	 	      5,597,891      Change in net deferred income taxes                                                              (15,307,081)	    	    (48,461,482)
     Reserve for non-qualified pensions and deferrals                                                   31,131,459	 	     26,904,943      Other surplus adjustments                                                                        (98,753,269)	
                                                                                                                                                                                                                                        ______________            (1,117,616)
     Other liabilities                                                                                  21,769,518	
                                                                                                    ______________        20,931,290
                                                                                                                    	 ______________           Change in surplus to policyholders                                                         199,380,368	
                                                                                                                                                                                                                                        ______________          294,329,587
       Total liabilities                                                                             1,804,834,729	 	 1,818,420,826
                                                                                                                                          Surplus	to	policyholders	at	December	31	                                                       2,289,876,053
                                                                                                                                                                                                                                     $	 ______________        2,090,495,685
                                                                                                                                                                                                                                                           $ ______________
       Surplus to policyholders                                                                      2,289,876,053	
                                                                                                    ______________        2,090,495,685

       Total liabilities and surplus to policyholders                                              4,094,710,782
                                                                                                $ ______________         3,908,916,511
                                                                                                                      $ ______________

     Note: Certain reclassifications have been made to prior year amounts to conform to current year presentation.                        Note: Certain reclassifications have been made to prior year amounts to conform to current year presentation.
     Please visit to review all statutory financial statements and accompanying notes.                                          Please visit to review all statutory financial statements and accompanying notes.
20                                                                                                                                                                                                                                                                              21
Privacy Policy
                                                                         • Consultants or other service providers that perform business
                                                                           functions for us, for example mailing or marketing services;
                                                                         • Our reinsurance companies;
                                                                         • Businesses that conduct research, including actuarial or
                                                                           underwriting studies;
                                                                                                                                                Amica Offices                                           To reach the Amica office nearest you,
                                                                                                                                                                                                        call 800-24-Amica (800-242-6422).

  For over 100 years, consumers have trusted Amica with their            • Other insurance companies;
nonpublic personal information (“NPI”). We take our responsibility
to protect your NPI seriously. This notice explains what NPI we
                                                                         • Consumer reporting agencies (Information that we share with          Corporate Office                            Massachusetts                                  Oregon
collect, how we collect it, and how we protect it.
                                                                           consumer reporting agencies, including your claims history           Amica Center                 800-652-6422   Central Massachusetts 888-702-6422             Oregon Regional            800-882-6422
                                                                           with us, may be maintained by the consumer reporting agency          Amica Life                   800-234-5433   John S. Reichley, CPCU, Resident Vice          Scott R. Berard, Branch Manager
                                                                           and disclosed to others as permitted by law);                                                                    President/Branch Manager
Summary of Amica’s Privacy Policy                                                                                                                                                                                                          Pennsylvania
                                                                         • Insurance support organizations;                                     Offices by State                            Southeastern
  • We collect NPI about you from your application and from                                                                                                                                                                                Philadelphia Regional          888-628-6422
                                                                                                                                                                                            Massachusetts                800-592-6422
    third parties as permitted by law;                                   • Medical care institutions and medical providers;                     Arizona                                                                                    William H. Huling, III, CPCU, Branch Manager
                                                                                                                                                                                            Anthony Noviello, III, Branch Manager
                                                                                                                                                Phoenix Regional           888-892-6422                                                    Pittsburgh Regional         888-672-6422
  • We use your NPI only to service your policies and claims and         • State insurance departments, police, or other governmental                                                       Western Massachusetts 888-532-6422
                                                                                                                                                Michael A. Funaro, Branch Manager                                                          David J. Bennett, CPCU, Branch Manager
    to underwrite and price insurance products that meet your              authorities; and                                                                                                 LuAnn T. Trigo, Branch Manager
    needs as you have described them to us;                                                                                                     California                                                                                 Rhode Island                800-622-6422
                                                                         • Persons as ordered by subpoena, warrant, or other court                                                          Michigan
  • We do not share your NPI with nonaffiliated third parties              order or as required by law;                                         Northern California         888-846-6422                                                   Mark D. Harrison, CPCU,
                                                                                                                                                                                            Michigan Regional           800-452-6422
    other than as necessary to service your policy or claim;                                                                                    Jeffrey D. Teece, Branch Manager                                                           Underwriting Manager
                                                                                                                                                                                            Daniel F. Field, CPCU, Branch Manager
                                                                                                                                                                                                                                           Lisa C. St. Onge, Claims Manager
  • When we disclose your NPI to third parties to perform services
                                                                       How We Safeguard NPI                                                     Southern California         888-660-6422
                                                                                                                                                Robert W. McGirr, Regional Vice President   Minnesota                                      National Sales Center     866-342-6422
    for us, we require that they protect the NPI and use it only         Amica maintains physical, electronic, and procedural safeguards                                                    Minneapolis Regional       888-844-6422        Mark Myrick, CPCU, Sales Manager
    for the purpose it was disclosed;                                  to keep your NPI secure. We limit access to employees who                Colorado                                    Janet Bellows, CPCU, Branch Manager
                                                                       “need to know” to service your policy or claim. Also, we have an         Denver Regional             800-572-6422                                                   Service Center
  • We do not sell your NPI to third parties;                                                                                                                                                                                              Operations–East             800-752-6422
                                                                       employee Code of Ethics and Confidentiality Policy that require          Tracy S. Engelbert, CPCU, Branch Manager    New Hampshire
  • We maintain physical, electronic, and procedural safeguards        employees to keep confidential all NPI obtained in the course of                                                     Concord Regional           800-925-6422        Lee Valentini, CPCU, Assistant Vice
    to protect your NPI.                                               our business.                                                            Connecticut                                 Thomas M. Barry, Regional Vice President/      President–Director of Voice and Service
                                                                                                                                                Danbury Regional             800-772-6422   Branch Manager                                 Center Operations
NPI We Collect About You                                               Your Rights                                                              John S. Maley, Jr., CPCU, Branch Manager
                                                                                                                                                                                                                                           South Carolina
                                                                                                                                                Hartford Regional            800-382-6422
                                                                                                                                                                                            New Jersey
  • We get most NPI directly from you on the application or in           You have the right to know what NPI we have about you and                                                          Northern New Jersey        800-762-6422        Greenville Regional        800-342-6422
    discussions with you during the application process, for example                                                                            Catherine A. Franks, CPCU,                                                                 Richard M. Tierney, CPCU, Branch Manager
                                                                       to receive a copy upon request. Because of its legal nature, NPI                                                     David M. Gattuso, CPCU, Branch Manager
                                                                                                                                                Resident Vice President
    your name and address, Social Security number, type of vehicle,    obtained when settling claims or defending lawsuits need not be                                                      Southern New Jersey        888-592-6422
    and information about other drivers in your household.             shared with you.                                                                                                                                                    Tennessee
                                                                                                                                                Florida                                     Glenn D. Ashton, CPCU, Branch Manager          Knoxville Regional         888-814-6422
  • We may ask a consumer reporting agency for a report about            Within thirty (30) business days of receipt of your written request,   Orlando Regional             800-662-6422                                                  David C. Kleinschmidt, Branch Manager
    you, for example: a credit-based insurance score; a report         we will disclose to you the NPI about you in our files. You may          James D. Teevin, CPCU,                      New York
    about your coverage and claims history with other companies;                                                                                Regional Vice President                     Albany Regional            800-732-6422        Texas
                                                                       receive a copy at a reasonable charge. We will tell you with whom
                                                                                                                                                                                            Thomas S. Colehour, Regional Vice President    Dallas Regional             800-962-6422
    motor vehicle records; or reports that identify other drivers      we have shared your NPI within the past two years, or for the time       Tampa Regional              800-672-6422
    in your household. In limited circumstances, we may request        period required by state law, and we will give you the name and          Daniel J. Lynch, CPCU, Branch Manager       Long Island Regional        800-742-6422       Sean P. Cahill, CPCU, Branch Manager
    an investigative consumer report, which means that the             address of any consumer reporting agency that gave us a report                                                       James M. Lynch, CPCU,
                                                                                                                                                                                                                                           Houston Regional             800-532-6422
    consumer reporting agency will ask others about you, for           about you. Medical records and details about our decisions regarding     Georgia                                     Senior Regional Vice President
                                                                                                                                                                                                                                           Robert R. Foss, Jr., CPCU, Branch Manager
    example about your habits or finances or if you take part in       those records will only be released to your physician or a physician     Atlanta Regional            800-282-6422    Rochester Regional        800-852-6422
    hazardous activities.                                              qualified to interpret them.                                             Brian E. Norton, CPCU, Branch Manager       James F. Murphy, CPCU, Resident                Virginia
                                                                                                                                                                                            Vice President                                 Richmond Regional          800-392-6422
  • For life insurance, we may obtain information about your health      You may contact Amica if you believe your file should be               Illinois                                                                                   A. Taylor Quarles, Branch Manager
    from medical providers and the Medical Information Bureau.         corrected. Within thirty (30) business days, we will make the            Chicago Regional           800-874-1611     North Carolina
                                                                       change or provide an explanation of our refusal to do so. If we do       Marvin S. Konkle, CPCU, Branch Manager      Charlotte                   877-278-0740       Washington
How We Use and Disclose NPI                                            not make the change, you may send a statement for insertion in                                                       Dwight D. Durrell, CPCU,                       Seattle Regional        888-626-6422
                                                                       your file. Minnesota residents may file an appeal with the Insurance     Indiana                                     Regional Sales Executive                       S. Shameem Awan, Branch Manager
   Amica uses and discloses your NPI only as permitted by law and                                                                               Indianapolis Regional     888-664-6422
                                                                       Commissioner. If you ask us to, we will notify persons with whom we                                                  Raleigh Regional          800-892-6422
as necessary to conduct business. For example, we may use your                                                                                  James M. O’Connor, CPCU, Branch Manager                                                    Service Center
                                                                       have shared your NPI of the change or your statement. With any                                                       Frank Hribar, Branch Manager                   Operations–West          877-638-1859
NPI to: service products you have applied for or purchased; process
                                                                       subsequent sharing of NPI, we will include a copy of your statement.
claims; offer you other Amica products; protect against fraud; and                                                                              Maine                                                                                      Adam R. Hudson, CPCU, Manager
comply with legal requirements. For these purposes, we may share                                                                                Maine Regional             800-255-3833     Ohio
                                                                         This policy applies to prospective, current, and former customers
                                                                                                                                                                                            Cincinnati Regional            888-648-6422    Wisconsin
your NPI with:                                                         of the following Amica Companies:                                        John A. Martin, Branch Manager                                                             Madison                     877-278-0739
                                                                                                                                                                                            R. Clinton Dailey, Jr., CPCU, Branch Manager
  • Claims adjusters, appraisers, auto repair shops, investigators,                                                                                                                                                                        Erin M. Wery, Regional Sales Executive
                                                                         • Amica Mutual Insurance Company                                       Maryland                                    Cleveland Regional          888-816-6422
    and attorneys;                                                                                                                              Baltimore Regional         800-682-6422     Gregory C. O’Brien, CPCU, Branch Manager       Milwaukee Regional          888-646-6422
                                                                         • Amica Life Insurance Company                                                                                                                                    Virginia T. Spicka, Branch Manager
  • Your agent;                                                                                                                                 James M. Mulholland, CPCU, Branch Manager
                                                                         • Amica Property and Casualty Insurance Company
  • Your mortgagee;
                                                                         • Amica Lloyd’s of Texas, Inc.
  • Our affiliated companies;
22                                                                                                                                                                                                                                                                                 23
                                                                    About our photos
                                                                    The striking photos in this year’s Annual
                                                                    Report were taken at Amica Insurance
                                                                    Tall Ships Rhode Island 2007 in Newport,
                                                                    Rhode Island, this past summer. Amica
                                                                    was proud to sponsor this elegant event
                                                                    in honor of its 100th anniversary and
                                                                    as a special gift to the company’s home
                                                                    state of Rhode Island.

                                                                    Photographers: Michael Walsh,
                                                                    Michael Scott, and Anne-Marie Silvi
                                                                    Designer: Andrés Sarmiento
                                                                    Writer: Julia Simpson

                     Corporate Office
                     One Hundred Amica Way, Lincoln, Rhode Island
                     Mail: PO Box 6008, Providence, RI 02940-6008                                                PRESORTED
                     Web site:                                                                      STANDARD
                                                                                                                U.S. POSTAGE
                                                                                                                BROOKLYN, NY
                                                                                                                 PERMIT # 529
10070-007 CCD 8596

Shared By: