personal lines W


hile much of the industry faced auto profitability challenges, Personal Lines finished the year with an


outstanding combined ratio of 93% and loss ratio of 51.4% due to a well-managed profitable growth strategy.


Our independent agents provided insight into the challenges they faced after our difficult decision to increase pricing in 2016, which led us to return to the steady state approach to pricing for which we have become known. Tese pricing adjustments helped us to achieve outstanding growth in the second half of the year; voluntary Massachusetts auto new business grew by 26% over the first half of 2017 and homeowners new business grew by 53%.


Our underwriting team did an outstanding job of balancing the need for flexibility with the discipline required to maintain a steady, profitable book of business. Our agents appreciate the ongoing opportunity for dialogue about their customers’ policies, and that trust and communication played a key role in our mutual success.


In the fall, we introduced several new homeowners product enhancements to respond to the increased construction of larger, high-value homes. Arbella now offers a complete suite of products for all types of homes, empowering our agents to personalize homeowners coverages as an additional step toward writing profitable accounts.


We added our Home Systems Protection endorsement to the successful Triple Play campaign, which has resulted in more than $11 million sold. More important than premium sales, however, is ensuring that our customers have the best coverages possible, which will continue to play a key role in our retention strategy.


While many of our competitors are now raising prices, Arbella’s rates will continue to remain very competitive in 2018. We’re excited to roll out additional homeowners coverages, including a new cyber product and enhancements to improve the ease of doing business.


“Last summer, Arbella invited all agency staff on a wonderful boat cruise around Boston Harbor. We felt so appreciated! Arbella truly values their agency partners and their pricing has been very competitive. I look forward to writing more business with Arbella.”


– Erika Gilbert, Morse Insurance, Easton MA


2017 AN N U AL R E P O RT


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