Preferred Mutual

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Decrease in natural disasters leads to increased profit margin

by: Jill Kraft

In the insurance industry, as times change so do the variables that can create losses or gains.

According to Robert Wadsworth, chairman of the Board of Directors and Chief Executive Officer for Preferred Mutual, the company gained significantly in 2007.

Although finalized figures have not yet been computed, Wadsworth predicts 2007 premium revenues will be approximately $208 million. Wadsworth said property and casualty insurance companies were very profitable in 2007, which led to a highly competitive marketplace. He said the industry has seen a slight decline in premium growth, but Preferred was able to counter the trend, showing positive growth and continuing to be a leading source for insurance.

“We expect to post positive earnings for the year,” he said, adding, “It was a pretty good year for us.”

The company, which Wadsworth explained is owned by its 250,000 policyholders, is projected to carry a policyholders’ surplus of approximately $133 million. “The company’s total assets are $370 million,” he said.

Preferred Mutual operates in four states: New York, New Jersey, Massachusetts and New Hampshire.

Preferred Mutual has also been updating its technology capabilities. “We would like to continue to enhance our technology platform with the intended purpose of making it easier for our independent agents to do business with us,” said Wadsworth. This, he says, will make the agents more efficient and drive operating costs down, which, in turn, will make the company more competitive in the growing marketplace.

Wadsworth says he has seen a lot of change in the insurance business in the last 12 years that he has been leading the company. “I have seen continuous change and a lot of growth,” he said.

Preferred was honored in 2007 in a survey by the Professional Insurance Agents of New York State (PIA) for being one of the top five of insurance companies operating in the state in the past five years. “We were also honored in 2007 for being in the top 10 companies operating in the state for generating the fewest automobile claim complaints for automobile insurance carriers. This shows the commitment our employees have to providing the highest level of service to our independent agents and policyholders,” he said.

Preferred Mutual’s main office is located in New Berlin with its data center located in Norwich. Between the two facilities, Preferred Mutual has approximately 242 employees.

As the largest employer in the New Berlin area, Wadsworth says the majority of Preferred’s staff live in close proximity and devote significant time and effort to the service of their communities.

“We try to show our commitment to the community financially and through other means,” said Wadsworth.

Throughout 2007, Preferred employees took part in many community activities, and the company surpassed its Chenango United Way 2008 campaign goal. Preferred is also a corporate sponsor for Gus Macker, takes part in blood drives, participates in the American Cancer Society Heart/Run Walk, holds dress down days for charity every month and is a main sponsor of the New Berlin Youth Days.

“We sold Sno-Kones for 50 cents each and all the proceeds were given back to the New Berlin Youth Days,” said Preferred employee Jamie Moore. Moore says each year Preferred has a corporate float with a theme. For 2007 the theme was the “S.S. Preferred Mutual.” “We always try to gear our float themes to be kid-friendly, because after all, that’s what Youth Days is all about,” she said

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