Rachael O'Donnell
Habitational Insurance: Will We Still Need It ...

The effects of COVID-19 have seeped into the lives of rental property owners & renters. The question is, is Habitational Insurance Coverage still needed?

Frederick Mutual Group, Inc. Announces Closing of Investment by Mutual Capital Investment Fund, LP

January 8, 2024

Frederick Mutual Group, Inc. (“Frederick Mutual”) is pleased to announce that it has raised significant long-term capital from Mutual Capital Investment Fund, LP (“MCIF” or the “Fund”) that will be used to augment Frederick Mutual’s surplus and support its commercial lines business. As part of the transaction Frederick Mutual has made the strategic decision to exit personal lines entering into a renewal rights agreement related to that line of business. Frederick Mutual, founded in 1843 and one of the country’s oldest insurance companies, will remain an independent mutual insurance company with Nancy Newmister as its Chief Executive Officer.

“It has been a pleasure to work with MCIF on this transaction. As the Board of Directors considered alternatives it quickly became clear that partnering with MCIF was in the best interests of the company and its constituents. The MCIF team demonstrated an understanding of our business and culture which makes sense since MCIF was founded by a mutual insurance company. Although Frederick Mutual has faced challenges on many fronts over the past few years, the MCIF team recognized Frederick Mutual’s value and its potential,” said Nancy Newmister.

Jason Wolfe, President and CEO of the Fund’s management company, Mutual Capital Investment Advisors, LLC stated, “We are excited to provide capital to Frederick Mutual at this critical time and look forward to being a part of Frederick Mutual’s future.” In addition to his role with the Fund, Mr. Wolfe is the lead independent director of Forge Group, Inc. and became the Chairman of Frederick’s Board of Directors upon the closing of MCIF’s investment in the company. Mr. Wolfe further noted, “I’m looking forward to working with Nancy and her team as Frederick Mutual focuses on its commercial lines business. MCIF is continuing to execute its mission of providing patient, mutual-friendly capital to insurance companies and is well-positioned to provide substantial capital to other mutual insurance companies.”

Founded on December 15, 1843, Frederick Mutual has continuously operated for 181 years as a mutual insurance company serving policyholders, initially in Maryland, and subsequently expanding the operating territory into Pennsylvania, Virginia, Delaware, D.C., North Carolina and South Carolina. We work with respected local independent agents who share our values of delivering innovative and competitive products to our policyholders.

In 2022, Frederick Mutual Insurance Company reorganized from a mutual insurance company to a mutual insurance holding company structure, in accordance with Maryland law and pursuant to policyholder and board approval. Through the reorganization, Frederick Mutual Holdings, Inc., a mutual insurance holding company, and Frederick Mutual Group, Inc., an intermediate holding company, were formed. Frederick Mutual Insurance Company became a direct

subsidiary of Frederick Mutual Group and a wholly owned indirect subsidiary of Frederick Mutual Holdings. Under the new mutual insurance holding company structure, all existing and future policyholders of Frederick Mutual Insurance Company retain their mutual ownership rights and automatically become members of Frederick Mutual Holdings.

Mutual Capital Investment Fund, LP was formed to provide mutual insurance companies with a capital source that is generally more ‘mutual-friendly’ than other options. MCIF is sponsored by Mutual Capital Group, Inc. (“MCG”) based in Wyalusing, Pennsylvania. Mutual Capital Group, Inc. has a mutual insurance heritage that spans almost 150 years, and brings a level of understanding, experience, and support to clients that is beyond compare. As a result of being formed by, and having MCG as its parent, the Fund has insights into the challenges and opportunities mutual insurers face today, with the ability to partner with companies it invests in, while appreciating their culture and independence.

Frederick Mutual Announces New Hire of Gary Barkman, AVP & Head of Claims

An insurance professional with over 25 years in the industry, Gary’s leadership experience spans small commercial claim handling, large loss & complex property claim adjusting, loss prevention, and claim quality outcomes. Most recently, Gary was the Property Manager in the Major Case Unit for The Hanover Insurance Group. Frederick Mutual is honored to have Gary on the team.

 

Frederick Mutual Insurance Company was founded in 1843, is the 3rd oldest insurance company in Maryland, the 9th oldest in U.S and we are celebrating 181 years in 2024!

 

57 Thomas Johnson Drive

Frederick, Maryland 21702

www.frederickmutual

(301)663-9522

Frederick Mutual’s Recent Hire of Evan Krozy, Chief Operations Officer Elevates Commercial Lines Focus

An insurance professional with over 20 years of experience, Evan comes to Frederick Mutual with a vast array of industry experience. His career has included commercial lines underwriting, portfolio management, product development, compliance, operations, and working closely with claims and loss control. Evan’s expertise in property underwriting has led to his diligence with CAT monitoring and facultative reinsurance. With this breadth of property knowledge and navigating hard markets, Evan will help advance Frederick Mutual’s pursuit of greater expertise in our Frederick Mutual Secure Businessowners markets. With his hire, alongside of Frederick Mutual’s recent investment in transforming its multi-state product offerings and automated processes, we believe that Frederick Mutual’s Secure Businessowners® product will continue to outperform commercial lines market results in Maryland, Virginia, Pennsylvania, Delaware, and North Carolina!

Employee Spotlight of the Month: James Verby

James is being recognized for going above and beyond for both his co-workers and agents. James emulates Frederick Mutual’s core value in being results driven through his excellent work ethic and organizational skills.

James has been in the insurance industry since 2022 when he joined Frederick Mutual as an Underwriting Assistant. He graduated from The Catholic University of America with a degree in Business management, strategy, and operations.  James lives in Frederick and enjoys golfing, swimming, and playing the piano in his free time. 

Frederick Mutual Introduces Risk Management Software for Businessowners: HELIXintel

Frederick Mutual recently launched its new risk management software service: HELIXintel! HELIXintel provides a simple and intuitive digital platform which assists businesses of any size or industry to organize, track, and care for their facilities and equipment. Accessible anywhere, the platform proactively monitors equipment status and performance. By recording, tracking, and analyzing procurement, maintenance and repair data, equipment owners are now better able to control their facilities’ maintenance, increase operational efficiency and improve risk management. The platform also matches businesses with qualified manufacturers, suppliers, and contractors to ensure they have access to the best pricing and service available, nationwide.

Learn more by visiting our HELIXintel page here!

Frederick Mutual Community Spotlight!

For the months of August and September Frederick Mutual is supporting The Arc of Frederick County! The Arc of Frederick County provides, “professional assistance to help children and adults with developmental disabilities by building networks of supports so they can safely and successfully live, work, go to school and be meaningfully included in their communities.” Learn more about this worthy cause here! The Arc of Frederick County, Maryland (arcfc.org)

Housing Contractors Continually Needed!

The United States Census Bureau released new residential construction statistics for May 2023, reflecting positive indications regarding building permits, housing starts, and housing completions. With increased business demands, Contractors of all types need to ensure they have the appropriate coverage. Frederick Mutual offers comprehensive, competitive coverage for qualified Artisan Contractors Frederick Mutual offers insurance for homeowners and businessowners in the Mid-Atlantic! For more information on housing market stats reported by the US Census Bureau please read here
https://lnkd.in/eEPbJiY

Frederick Mutual Introduces New Product for Businessowners: Employment Practices Liability

There are ample opportunities to build camaraderie, trust, and equal playing fields between your staff and clients! However, when unforeseen or uncontrollable events arise, Frederick Mutual’s Employment Practice Liability coverage can kick in to protect your business or establishment.

Here is an example of when a landlord at an apartment building faced an EPL lawsuit.

The insured received a notice of the claim from the state Commission on Human Rights and Opportunities alleging familial status discrimination and pregnancy discrimination. The charge alleged discrimination based on familial status when they declined to rent an apartment to the insured. An initial demand of $40,000 was presented. A settlement was reached between the two parties involved through mediations.

 

As a landlord and/or a businessowner we know you work diligently to serve your employees and tenants. Frederick Mutual is here to provide you peace of mind with our new EPL coverage to help your business defend against employment claims that allege age, gender or race discrimination, sexual harassment, or other unlawful employment acts or practices.

Employee Spotlight: Brian, IT Systems Developer

This month Frederick Mutual would like to spotlight Brian, our IT Systems Developer. Hear what fellow staff members have to say about Brian!

"Brian is a talented software developer who is always eager to learn new and better ways of accomplishing tasks. He has demonstrated this by creating the software that has facilitated the homeowners conversion process and rated thousands upon thousands of policies in BriteCore. Brian manages to do amazing things while maintaining humility and a sense of humor.  He is a collaborator who shares his insights and ideas to help make Frederick Mutual a better place for all. And he has an adorable daughter!"

Press Release: 2023 Frederick Mutual Financial Rating Update

Frederick Mutual Insurance Company: May 1st, 2023

Frederick, Maryland

Frederick Mutual is celebrating 180 years in business throughout 2023!

The executive management team and Board of Directors are actively pursuing strategic initiatives to strengthen our financial position and provide flexibility to thrive in today’s dynamic and competitive environment. The Company recently reorganized to a mutual insurance holding company structure. Building on this momentum, Frederick Mutual’s leadership is taking meaningful steps toward a range of opportunities that will ensure the Company’s long-term success.

Frederick Mutual holds a Financial Stability Rating (“FSR”) of “A, Exceptional” with Demotech, Inc. This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves, and realistic pricing. Major real estate, financial and agency E & O contracts also recognize the Demotech FSR rating.

It is important to note that FMIC maintains a conservative investment portfolio; and a high-quality reinsurance program is in place to mitigate the impact of frequent and severe weather-related events on policyholder surplus.

Please note, the Company has withdrawn from the rating process with AM Best.

Thank you for doing business with Frederick Mutual Insurance!

Frederick Mutual Financial Standing Press Release

Frederick Mutual Insurance Company: April 21st, 2023

Frederick, Maryland

Dear Agents,

The year 2022 was not without major challenges across the entire property and casualty insurance industry, particularly in the personal lines sector. Higher than normal weather catastrophe activity, ongoing economic challenges with interest rate changes, inflation, and stock market volatility have also significantly impacted the industry as well as Frederick Mutual’s operating results and policyholder surplus.

Frederick Mutual maintains a Financial Stability Rating (“FSR”) of “A, Exceptional” with Demotech, Inc. This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves, and realistic pricing.

It is important to note that FMIC maintains a conservative investment portfolio; and a high-quality reinsurance program is in place to mitigate the impact of frequent and severe weather-related events on policyholder surplus.

The executive management team and Board of Directors of Frederick Mutual Insurance Company are actively pursuing strategic initiatives to strengthen Frederick Mutual’s financial position and operating performance. To provide flexibility to thrive in today’s dynamic and competitive environment, Frederick Mutual recently reorganized to a mutual insurance holding company structure. Building on this momentum, Frederick Mutual’s leadership are taking meaningful steps toward a range of opportunities that will improve balance sheet strength and ensure the Company’s long-term success.

Thank you for doing business with Frederick Mutual Insurance!

Frederick Mutual Makes Easter Baskets for Salvation Army!

At Frederick Mutual, stewarding relationships within our local community is a core value. This month our staff collected items for Easter Baskets for the Salvation Army for Easter Baskets. Our faithful staff assembled 30 baskets and will be delivering them to the Salvation Army today! We look forward to the smiles on the children’s and family’s faces who will receive these baskets this Easter! 

Frederick Mutual Employee Spotlight: Lisa Snowden

This month Frederick Mutual would like to spotlight Lisa Snowden, Office Administrator. Lisa joined Frederick Mutual in March of 2015 after working in the mortgage industry for 20 years.  

 

“Lisa’s daily actions reflect the love of Christ and her devotion to soul care for those around her.  She selflessly ensures work priorities are handled with grace, accuracy, and timeliness. Lisa leads the weekly morning prayer time before the workday begins.”

 

Lisa lives in Frederick Country, MD and is married with three handsome sons, which includes a set of identical twins, and a beautiful daughter. Lisa loves God, her family and helping others.  

The Demotech Difference

For five years, Frederick Mutual has partnered with Demotech, Inc. for our annual Financial Stability Rating® (FSR). Frederick Mutual has trusted the reliability of Demotech, Inc. due to its sound and pragmatic rating practices. In 1989, Demotech, Inc. became the first to review and rate independent, regional and specialty insurance companies. Excerpts from an analysis by Michael Cohen, Principal, Cohen Strategic Consulting, previously a vice president at A. M. Best, summarize The Demotech difference:

 

There are three major factors that differentiate Demotech’s approach to ratings from those of the other rating agencies:

 

1.      Demotech calibrates its opinion to the likelihood of an insurer having positive surplus 18 months out … other agencies use less specific, subjective adjectives to describe claims paying ability (i.e. “strongest”, “very strong”, “strong”, “adequate”, etc.).

2.      Demotech does not view an insurer’s size as an explicit rating factor. Their view is based on their research indicating that when insurers with manageable operating leverage and a conservative investment strategy secure appropriate reinsurance, smaller size does not correlate with increased risk of potential impairment.

3.      Consistent with its perspective on size, Demotech views an appropriate reinsurance program as an integral component of an insurer’s business model and plan. In contrast to the larger rating agencies which often view reinsurance as the “cession of potential profit,” Demotech views reinsurance and the concurrent protection of carrier surplus as a necessity for independent, regional and specialty insurers to execute their business plans.

 

With more than 460 insurers reviewed and rated country wide, as of 7/11/2022, Demotech, Inc. is registered with the U.S.Securities and Exchange Commission (SEC) as a national recognized statistical rating organization (NRSRO) in the class of ratings for insurance companies. Visit www.demotech.com for additional information.

 

With 180 years in business, and an A, Exceptional FSR, Frederick Mutual believes in the robust, thorough and objective review that Demotech, Inc. provides for insurance companies. Frederick Mutual believes in the Demotech difference.

Frederick Mutual Employee Spotlight: Kris Bapistellar

Frederick Mutual Employee Spotlight!

Kristine A. Bapisteller has been in the insurance business for over 18 years. Kris joined Frederick Mutual Insurance Company in December 2004 as a contractor and permanently joined the company in March 2005. Kris assumes the responsibilities of providing support to FMIC employees, agencies and policyholders. She currently serves as FMIC’s primary help desk team member!
 
Kris lives in Taneytown with her husband where she was born and raised on a farm. 
She enjoys vacations, road trips, flower gardening, taking care of her cats, and spending time with her family. 

Frederick Mutual's Community Partners in 2022

Frederick Mutual Gives Back in 2022!

Frederick Mutual continues to be committed to the company’s ministry of care.

In 2022, Frederick Mutual donated $33,978!
Below are some of the non-profit organizations that the company donated to:

Frederick Rescue Mission
Heritage Frederick
FCC Foundation
United Way of Frederick County
Purple Heart Foundation
St. Jude’s Children’s Research
East End Pregnancy
Susan G. Komen
Boys & Girls Club of Frederick County
Frederick County Animal Control
Mental Health Association

Frederick Mutual remains dedicated in giving back to non-profit organizations both local and nationwide.

"Frederick Mutual goes where the need is greatest for the community supporting their needs through donations, sponsorship, and outreach."  ~ Nancy Newmister, CEO & President

(301) 663-9522 | (800) 544-8737

5280 Corporate Drive, Suite A270, Frederick, MD 21703.  

© 2024 Frederick Mutual Insurance Co.  All Rights Reserved.