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By PBN Staff
LINCOLN – Despite a second consecutive year of “historic catastrophic claims,” the Amica Mutual Insurance Co. saw its bottom line increase 14.6 percent year over year in 2012.
The insurance company reported net income of $71.03 million in 2012, an increase of more than 14 percent from the $61.98 million reported at the end of 2011.
“Sandy will go down as one of our costliest catastrophes,” Amica President, Chairman and CEO Robert A. DiMuccio said in a statement. “Amica opened more than 13,000 claims and incurred roughly $66 million in losses from Sandy, with the vast majority already paid and resolved. I am very proud of the service we provided our customers.”
The company said that its focus on risk management reduced losses from Sandy to a “moderate earnings impact.” Thus, in spite of the storm damages, Amica saw its assets increase 6.5 percent and its surplus increase 5.2 percent year over year.
“Our emphasis on growing the business, appropriate pricing and controlling expenses, when coupled with improved loss results, provided us with a satisfying net increase in our bottom line of about $9 million for 2012 compared to 2011,” DiMuccio said.
According to results released at the company’s annual meeting on Feb. 14, highlights for 2012 included policy growth of nearly 22,000 policies and “unprecedented growth and sales” for Amica Life. The company attributed Amica Life’s success to “a concerted effort to market life products to the general public.”
Life insurance policies in force at the end of 2012 amounted to nearly $31 billion, an increase of 7.4 percent from 2011, according to a release.
New business at the life insurance unit totaled $2.9 billion in 2012, nearly a 49 percent increase from 2011 figures.
In a separate release, Amica announced that the Amica $75,000 Community Challenge, a month-long charity event partnering the insurance company with the Rhode Island Community Food Bank, United Way of Rhode Island and Crossroads Rhode Island, raised roughly $162,000.
The results, announced on Thursday, surpassed the initial goal of $150,000. According to a release, the challenge encouraged people and businesses around Rhode Island to make donations to the three charitable organizations from Jan. 14 to Feb. 15. Amica guaranteed to match those donations, dollar-for-dollar, up to $25,000 per charity.
“We’re proud to have worked with these three outstanding organizations to make a difference in the community,” Vince Burks, communications director at Amica, said in a statement. “Thanks to everyone who donated during the challenge – your generosity is greatly appreciated during these difficult economic times.”