Board of Directors
Patricia W. Chadwick
President, Ravengate Partners, LLC
Age 72. Director since 1992. 1 (Chair), 3
Jeffrey P. Aiken, J.D.
Attorney-at-law
Age 74. Director since 1993. 1, 2
Ronald K. Machtley
President, Bryant University (Retired)
Age 72. Director since 1999. 1, 4 (Chair)
Barry G. Hittner, J.D.
Attorney-at-law
Age 75. Director since 2000. 1, 3 (Chair)
Michael D. Jeans
President, New Directions, Inc. (Retired)
Age 72. Director since 2001. 1, 3, 4
Donald Julian Reaves, Ph.D.
Chancellor and Full Professor; Chancellor Emeritus,
Winston-Salem State University
Age 74. Director since 2004. 1, 2
Robert A. DiMuccio
Chairman, President and
Chief Executive Officer, Amica Insurance
Age 63. Director since 2005. 1
Debra A. Canales
Executive Vice President and
Chief Administrative Officer, Providence
Age 59. Director since 2012. 1, 4
Jill J. Avery
Senior Lecturer, Harvard Business School
Age 53. Director since 2015. 1, 2 (Chair)
Debra M. Paul
President and Chief Executive Officer,
Fellowship Health Resources, Inc.
Age 57. Director since 2019. 1, 2
Peter M. Marino
President and Chief Executive Officer,
Neighborhood Health Plan of Rhode Island
Age 52. Director since 2019. 1, 3
Diane D. Souza
Chief Executive Officer, UnitedHealthcare Specialty Benefits (Retired)
Age 68. Director since 2019. 1, 4
1 Investment Committee 2 Audit Committee 3 Governance and Nominating Committee 4 Compensation Committee
Reflecting on 2020
Financials
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Service
Service
Kindness
Kindness
Financial Stability
Financial Stability
Amica Values
Amica Values
Welcome
Reflecting on 2020
Financials
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Welcome to the 2019 Amica Annual Report
Robert A. DiMuccio
Chairman, President and Chief
Executive Officer
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Copyright © 2021 Amica,
100 Amica Way, Lincoln, RI 02865
When we look back on the events of 2020, certain words naturally come to mind: unprecedented, isolating, overwhelming. It would be easy to remember the year this way after all we went through.
However, I believe experiencing such challenging times can also emphasize important things in our lives that we tend to take for granted – things so ordinary we sometimes overlook them. For me, in 2020, that thing was trust.
I’ve found comfort knowing that trust remains at the center of every relationship at Amica. We strive to build on it during each interaction with our customers, our employees and our communities. And if ever there were a year when trust mattered most, it was 2020.
In this Annual Report, we’ll highlight some of the stories that stand out to me from a year riddled with uncertainty. I hope they’ll allow you to remember 2020 as a year when trust – in a purpose that’s worthwhile, in the goodness of others and in the support of those who truly care – guided you through the toughest of times.
Above all, I’d like to express my sincere gratitude to our policyholders. We’re humbled that you’ve placed your trust in us, and our commitment to you will never waver.
Robert A. DiMuccio
Chairman, President and Chief Executive Officer
TRUST
When
MatterS Most
Welcome to the 2020 Amica Annual Report
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When
Trust
Matters Most
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Reflecting on 2020
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Reflecting on 2020
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Service
Service
Kindness
Kindness
Financial Stability
Financial Stability
Amica Values
Amica Values
Amica Values
Service
Kindness
Financial Stability
Welcome to the 2019 Amica Annual Report
Robert A. DiMuccio
Chairman, President and Chief
Executive Officer
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Claims are processed quickly to make you whole again.
From there, our ability to serve you was the result of having the right technology, but more importantly, having the right culture. A culture where, even when separated, we support each other and make use of every available tool to fulfill our promise to you.
The most valuable tools this year were those that allowed us to safely and effectively serve you from a distance. Many of them, fortunately, were already in our toolbox. Our systems were configured to support remote work, allowing us to seamlessly answer your calls even though we weren’t physically in our offices. Through the functionality on Amica.com and our online self-service tools, we could correspond with you and issue payments without exchanging physical documents. And we were able to ramp up the use of our digital collaboration tools to view damage to customers’ homes and cars through video or pictures captured by the customers themselves. This allowed us to inspect and resolve many claims without risking in-person exposure.
A Worthwhile Purpose
Through the years, we’ve built partnerships with many trusted nonprofit organizations across the country. And in talking to them, we knew community assistance would be even more important during the pandemic. In response, we increased our giving throughout the year so these support services and relief efforts could further assist those in need. While we’re proud to be part of the wonderful work done by hundreds of organizations, we’d like to share a few examples that stick out to us from 2020:
Protecting those on the front lines
Medical professionals regularly do heroic work providing care to patients in life-threatening situations. But what happens when hospitals are overwhelmed with sick people in the midst of a pandemic, and those professionals don’t have the basic personal protective equipment (PPE) to safely do their jobs?
We saw this scenario unfolding right in our backyard and sought a way to help. While PPE was in short supply everywhere, we were able to find a producer of medical-grade face shields and purchased a supply to give to the facilities facing shortages in our area. We also had a stock of rain ponchos, which we donated to a local hospital that had run out of medical gowns. While these gestures were small, they allowed the individuals putting their own lives at risk to continue caring for those with COVID-19 during the early and chaotic stages of the pandemic.
We also discovered that our neighbors at Honeywell, a fellow Rhode Island business located just down the street from our corporate office, had transitioned its typical production to manufacture much-needed N-95 facemasks. We were thrilled to provide a meal to their employees on all three shifts as a small gesture of our appreciation and a reminder that we’re all in this together.
An annual tradition, a new approach
While hunger is a serious problem many Americans struggle with regularly, the number of families not knowing where their next meal would come from skyrocketed during the pandemic. In 2020, approximately 50 million Americans experienced food insecurity. The increased demand resulted in food banks that were overwhelmed and long lines of vehicles waiting to receive groceries in many cities.
Access to healthy food is a basic need that’s close to our hearts at Amica. Each November, our employees participate in a countrywide food drive in the weeks leading up to Thanksgiving. But with COVID-19 making it impossible to host an in-person event, we decided to host a virtual food drive for Feeding Children Everywhere – and we invited the public to join us.
With a dollar given for each share of our 50th Thanksgiving card through Amica.com, and a dollar-for-dollar match for online donations, the campaign raised over $60,000. That led to more than 151,000 servings of shelf-stable food and over 10,000 pounds of fresh produce for families facing hunger over the holiday season.
Home sweet (new) home
We often take for granted having a roof over our heads at the end of a long day. But what if the place you called home was suddenly destroyed?
All Hands and Hearts (AHAH) is a volunteer-powered organization that addresses the immediate and long-term needs of communities impacted by natural disasters. Amica was proud to partner with AHAH in 2020, which included $250,000 in grant funding.
While disaster preparation and immediate response are crucial, we really love the organization’s focus on long-term recovery and resilience. It aligns perfectly with Amica’s charitable giving mission – to harness the power of enduring relationships to help individuals, families and communities become economically independent and strong.
Part of our grant funding went to an AHAH program to help Florida residents who suffered serious losses in 2018’s Hurricane Michael. Michael was the strongest storm to make landfall in the continental United States since Hurricane Andrew in 1992. Homes in the area required major repairs from AHAH – including installing insulation, hanging drywall and laying down flooring – and, in some instances, full rebuilds. One of our favorite parts of the program includes an initiative to replace trailers badly damaged in the storm with full houses, leaving the structure much more resistant to future damage.
Empowering our employees
At Amica, we want our employees to support the causes close to their hearts. We rely on them to recognize the needs within their own communities, and offer programs to maximize their giving. We match their donations to qualified nonprofits at a rate of 175%, and provide grants in the name of employees and their spouses who actively volunteer with nonprofit organizations. Each employee also receives paid time off to volunteer in their community.
Giving is in our nature
We’re strong believers in the value of communication – both as a way to stay connected and to create shared understanding. When the COVID-19 pandemic struck, one of our main goals was to provide you with regular communication and access to information about what was happening at Amica and how we were working to assist you.
Early on, we created a COVID-19 Resource Center on Amica.com that included timely alerts, state-specific policy information and FAQs. Our CEO created several messages that were sent over the course of the year. We also regularly shared information, helpful tips and updates through our social channels. If you haven’t already, we’d love it if you joined us on Facebook, Instagram, Twitter and YouTube. And last, but certainly not least, our representatives across the country were the best at providing individual attention and service tailored to your needs.
Whether you had reason to call upon us in the past year or not, please know that we’re always here and our support is something you can count on.
Keeping you informed
The pandemic caused many people to experience unexpected financial hardship. That’s why one of the first steps we took was to offer leniency to our Mutual and Life policyholders who were unable to pay their premiums on time as a result of COVID-19. This involved stopping the cancelation of policies to provide additional time. We value our relationships and didn’t want to see anyone's insurance protection lapse. Over the course of the year, we had thousands of conversations with customers to adjust policy coverages and create repayment plans to keep insurance protection in place.
Financial assistance and premium relief programs
At Amica, we know the value of peace of mind. It’s our mission
to provide it to our customers, and we do so by assuring you
that we’ll protect the important parts of your life and help when things go wrong. A number of events that occurred in 2020 deteriorated peace of mind for many by creating uncertainty,
fear and worry. Prolonged periods of isolation, divisive rhetoric and violence had negative effects on many of us. As your insurance company, we aim to be a steady and reliable source
of support, providing you with reassurance during difficult times.
Here’s a look back on some of the ways we tried to help last year.
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Financials
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Purpose
A Worthwhile
Goodness
The
of Others
Support
The
of Those
Who Truly Care
At Amica, our core purpose is very clear. We exist to protect important parts of our customers’ lives. We prepare for the worst-case scenarios so we’re ready to assist you when the unexpected happens.
Despite all of the planning we do, the circumstances we encountered in 2020 were unforeseen. The speed at which the global pandemic came down upon all of us required quick and decisive action. It was at this critical time that the strength of our core was most evident.
In order to be there for you when you need us most, we rely on the significant knowledge of our employees. That’s why it’s always a top priority to take care of them. Beginning in mid-March, we transitioned thousands of our people to working from the safety of their homes. We’re incredibly thankful for the resilience of all our employees, including our IT group, whose expertise allowed us to get up and running from so many locations across the country in a short amount of time.
2020 PBN Best Places to Work in Rhode Island
2020 Exemplary Worksite Health Award
On March 1, 2020, Amica celebrated its 113th anniversary. We feel incredibly fortunate and honored to have served our customers for so long, and it’s not an achievement we take for granted. If we’d known then what 2020 had in store for us, however, we probably would’ve lingered a bit longer in the conference room, and perhaps had another slice of cake.
It’s well-documented that the average lifespan for a U.S. corporation is rapidly declining, and that companies disappear every day. Thankfully, Amica has stood strong through many challenges since our founding – stock market crashes, wars, health crises and many changes in national leadership.
A Harvard Business Review article titled “How Winning Companies Last 100 Years” considered why some companies survive and others don’t. The first factor identified was that at the heart of long-lasting organizations is a stable core. The second factor was that these organizations value disruption as a catalyst for change and constant improvement.
We’re also continuously working to make our products and service better, and to develop new offerings that fit your needs. And despite the unprecedented challenges in 2020, we were able to offer a new product and improvements to the customer experience.
We were also very excited to introduce customers to AVA, the Amica Virtual Assistant. AVA helps visitors to Amica.com with product information, self-service functionality and common questions. This digital tool can be accessed through the orange "Need Help?" icon anchored to the bottom-right corner of all Amica.com pages. By clicking the icon and entering your question, AVA will quickly answer or guide you to key information to assist you. And if AVA doesn’t have the answer, it will point you in the right direction. The best part is that AVA learns from the questions asked and expands its knowledge over time. At year-end, AVA had successfully answered more than 70% of inquiries to the customer’s satisfaction.
The tragic losses that impacted so many during the pandemic reminded us all how fragile life can be. A result of that was increased recognition of the importance of life insurance. Our teams in Amica Life made great progress in 2020 to enhance our customer service. With refreshed resources that simplify product options and the application process, it’s never been easier to get the coverage you need to protect those you love.
As always, providing you with world-class products and service remains our focus.
Through a partnership with Embrace Pet Insurance, we can now help you protect other very important members of your family: your cats and dogs. Based on the results to date, there’s a great deal of interest in the product, and our customers enjoy the convenience of handling pet insurance at the same time as their other insurance needs.
If you missed the initial announcement, here are some benefits of pet insurance with Embrace:
Coverage levels vary and can be personalized.
You have round-the-clock access to Pet Pros for pet health-related questions, including diet, wellness care and even emergency situations.
You’re covered at any licensed vet in the U.S.
U.S. Property Claims Satisfaction Study
Named a “Best Homeowners Insurance Company of 2020”
U.S. Auto Insurance Study, New England Region
2020 was challenging for everyone, but it hit the most vulnerable populations hardest of all. Many individuals and families were directly impacted by COVID-19, and others were indirectly harmed as their situation was made worse by the pandemic. Our duty and privilege as a good corporate citizen was to provide support to those in need.
We were so grateful that you joined us in this worthwhile endeavor. The impact of the campaign and the generosity of our employees and policyholders was undeniable. Among the individuals we heard from were a man who previously skipped meals so his family could eat, and a couple who could now pay for medical bills with money that would’ve gone to putting food on their table.
As March turned to April and fewer miles were driven as a result of the pandemic, we recognized a reduction in auto losses.
On April 9, we launched the COVID-19 Auto Premium Relief Program. Through this program, Amica customers who had an automobile policy at the time received a 20% credit on their
auto premiums for two months.
In the months that followed, we saw an increase in the number
of auto losses as restrictions eased and drivers returned to the roads. Despite that, our losses for the year remained lower than what we had planned. That’s why, on June 25, we launched a second round of support for customers through the COVID-19 Auto Refund Program.
This program refunded up to 10% of your monthly auto premium each month for a period of four months. Together, these programs provided up to six months of relief and put nearly $90 million back into our policyholders’ pockets. We hope it eased some of the financial burden when you needed it most.
Visit Amica.com
Copyright © 2021 Amica,
100 Amica Way, Lincoln, RI 02865
In all, Amica gave:
5M
$
over
to nonprofits
to COVID-19 causes
M
$
including
1
Photo taken February 2020
Protecting your pets
Introducing AVA
Amica Life
REFLECTING ON
2020
The Amica Annual Report
Reflecting on 2020
2020 PBN Diversity & Inclusion Award
in Insurance/Financial Services category
from Blue Cross & Blue Shield of Rhode Island and Greater Providence Chamber of Commerce
by U.S. News & World Report
2020 marked the 50th year of our longstanding tradition of sending Thanksgiving cards to our customers as an expression of gratitude for their loyalty. For half a century, each card has featured a unique and colorful painting by a talented artist that captures the essence of this season of thanks. To learn more about this time-honored holiday tradition, watch our video.
50 years of sending thanks
Highest ranking in two 2020 J.D. Power studies:
and Recognitions
Awards
Through a partnership with Embrace Pet Insurance, we can now help you protect other very important members of your family: your cats and dogs. Based on the results to date, there’s a great deal of interest in the product, and our customers enjoy the convenience of handling pet insurance at the same time as their other insurance needs.
If you missed the initial announcement, here are some benefits of pet insurance with Embrace:
We were also very excited to introduce customers to AVA, the Amica Virtual Assistant. AVA helps visitors to Amica.com with product information, self-service functionality and common questions. This digital tool can be accessed through the orange 'Need Help?" icon anchored to the bottom-right corner of all Amica.com pages. By clicking the icon and entering your question, AVA will quickly answer or guide you to key information to assist you. And if AVA doesn’t have the answer, it will point you in the right direction. The best part is that AVA learns from the questions asked and expands its knowledge over time. At year-end, AVA had successfully answered more than 70% of inquiries to the customer’s satisfaction.
Through the years, we’ve built partnerships with many trusted nonprofit organizations across the country. And in talking to them, we knew community assistance would be even more important during the pandemic. In response, we increased our giving throughout the year so these support services and relief efforts could further assist those in need. While we’re proud to be part of the wonderful work done by hundreds of organizations, we’d like to share a few examples that stick out to us from 2020:
Medical professionals regularly do heroic work providing care to patients in life-threatening situations. But what happens when hospitals are overwhelmed with sick people in the midst of a pandemic, and those professionals don’t have the basic personal protective equipment (PPE) to safely do their jobs?
We saw this scenario unfolding right in our backyard and sought a way to help. While PPE was in short supply everywhere, we were able to find a producer of medical-grade face shields and purchased a supply to give to the facilities facing shortages in our area. We also had a stock of rain ponchos, which we donated to a local hospital that had run out of medical gowns. While these gestures were small, they allowed the individuals putting their own lives at risk to continue caring for those with COVID-19 during the early and chaotic stages of the pandemic.
We also discovered that our neighbors at Honeywell, a fellow Rhode Island business located just down the street from our corporate office, had transitioned its typical production to manufacture much-needed N-95 facemasks. We were thrilled to provide a meal to their employees on all three shifts as a small gesture of our appreciation and a reminder that we’re all in this together.
We often take for granted having a roof over our heads at the end of a long day. But what if the place you called home was suddenly destroyed?
All Hands and Hearts (AHAH) is a volunteer-powered organization that addresses the immediate and long-term needs of communities impacted by natural disasters. Amica was proud to partner with AHAH in 2020, which included $250,000 in grant funding.
While disaster preparation and immediate response are crucial, we really love the organization’s focus on long-term recovery and resilience. It aligns perfectly with Amica’s charitable giving mission – to harness the power of enduring relationships to help individuals, families and communities become economically independent and strong.
Part of our grant funding went to an AHAH program to help Florida residents who suffered serious losses in 2018’s Hurricane Michael. Michael was the strongest storm to make landfall in the continental United States since Hurricane Andrew in 1992. Homes in the area required major repairs from AHAH – including installing insulation, hanging drywall and laying down flooring – and, in some instances, full rebuilds. One of our favorite parts of the program includes an initiative to replace trailers badly damaged in the storm with full houses, leaving the structure much more resistant to future damage.
At Amica, we know the value of peace of mind. It’s our mission to provide it to our customers, and we do so by assuring you that we’ll protect the important parts of your life and help when things go wrong. A number of events that occurred in 2020 deteriorated peace of mind for many by creating uncertainty,
fear and worry. Prolonged periods of isolation, divisive rhetoric and violence had negative effects on many of us. As your insurance company, we aim to be a steady and reliable source of support, providing you with reassurance during difficult times.
Here’s a look back on some of the ways we tried to help last year.
The pandemic caused many people to experience unexpected financial hardship. That’s why one of the first steps we took was to offer leniency to our Mutual and Life policyholders who were unable to pay their premiums on time as a result of COVID-19. This involved stopping the cancelation of policies to provide additional time. We value our relationships and didn’t want to see anyone's insurance protection lapse. Over the course of the year, we had thousands of conversations with customers to adjust policy coverages and create repayment plans to keep insurance protection in place.
As March turned to April and fewer miles were driven as a result of the pandemic, we recognized a reduction in auto losses. On April 9, we launched the COVID-19 Auto Premium Relief Program. Through this program, Amica customers who had an automobile policy at the time received a 20% credit on their auto premiums for two months.
In the months that followed, we saw an increase in the number of auto losses as restrictions eased and drivers returned to the roads. Despite that, our losses for the year remained lower than what we had planned. That’s why, on June 25, we launched a second round of support for customers through the COVID-19 Auto Refund Program.
This program refunded up to 10% of your monthly auto premium each month for a period of four months. Together, these programs provided up to six months of relief and put nearly $90 million back into our policyholders’ pockets. We hope it eased some of the financial burden when you needed it most.
In the months that followed, we saw an increase in the number of auto losses as restrictions eased and drivers returned to the roads. Despite that, our losses for the year remained lower than what we had planned. That’s why, on June 25, we launched a second round of support for customers through the COVID-19 Auto Refund Program.
This program refunded up to 10% of your monthly auto premium each month for a period of four months. Together, these programs provided up to six months of relief and put nearly $90 million back into our policyholders’ pockets. We hope it eased some of the financial burden when you needed it most.
We’re strong believers in the value of communication – both as a way to stay connected and to create shared understanding. When the COVID-19 pandemic struck, one of our main goals was to provide you with regular communication and access to information about what was happening at Amica and how we were working to assist you.
Early on, we created a COVID-19 Resource Center on Amica.com that included timely alerts, state-specific policy information and FAQs. Our CEO created several messages that were sent over the course of the year. We also regularly shared information, helpful tips and updates through our social channels. If you haven’t already, we’d love it if you joined us on Facebook, Instagram, Twitter and YouTube. And last, but certainly not least, our representatives across the country were the best at providing individual attention and service tailored to your needs.
Whether you had reason to call upon us in the past year or not, please know that we’re always here and our support is something you can count on.
Visit Amica.com
Copyright © 2021 Amica,
100 Amica Way, Lincoln, RI 02865
Download PDF
Financials
Reflecting on 2020
Welcome
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Download Full Report
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Welcome
Reflecting on 2020
Financials
Download Full Report
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Welcome
Reflecting on 2020
Financials
Download Full Report
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Our financial strength allows us to continue providing our customers with peace of mind. As always, we’re dedicated to serving you. Thank you for being part of the Amica family.
AM Best Company, Feb. 3, 2021. For the latest rating, access
ambest.com.
1
insurance rating agency and the nation’s authority on insurance company financial stability.
a leading
1
Amica Mutual and Amica Life once again received “Superior” financial strength ratings of A+ from AM Best,
AM Best renews ratings
for Amica Mutual, Amica Life
in surplus
$3 billion
in assets
$5.7 billion
At the end of the year, we had $5.7 billion in assets and crossed the $3 billion threshold in surplus. This surplus provides an important safety net to fulfill our commitment to our policyholders.
Strong balance sheet
in net income
$178 million
Net income for 2020 was $178 million, with income from investments totaling $174 million. Net income was helped by improved operational efficiency, while our high-quality investment portfolio also kept us on firm financial ground.
Solid investment performance and net income
2020
98.8%
2019
102.9%
2018
103.9%
2020 marked the fourth consecutive year we’ve seen an improvement in our combined ratio. We ended the year at 98.8%, and that includes the nearly $90 million in COVID-19 premium relief we paid back to customers.
More specifically, our auto loss ratio was down more than 16 points to 47.3%, which was the result of our improved book of business and a reduction in loss frequency with fewer miles being driven. Our home loss ratio increased a little more than 5 points to 59.1% due to higher weather-related losses.
Continued improvement of combined ratio
Visit Amica.com
Copyright © 2021 Amica, 100 Amica Way, Lincoln, RI 02865
Our focus is on maintaining long-term financial stability so we can be there when you need us.
Below, you’ll find some of the financial highlights for 2020.
new policies
in force
7,330
in new life premium
and annuity revenue
$7.4 million
in coverage in force
$46.3 billion
In 2020, Amica Life Insurance Company continued to grow, with new life premium of $7.4 million dollars and 7,330 new life policies issued. Amica Life surplus was also up by $16.6 million dollars, while total coverage in force grew to $46.3 billion.
Growth of Amica Life
OF MIND
PEACE
PROVIDING
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Reflecting on 2020
Financials
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insurance rating agency and the nation’s authority on insurance company financial stability.
Visit Amica.com
Copyright © 2021 Amica,
100 Amica Way, Lincoln, RI 02865
Download PDF
Financials
Reflecting on 2020
Welcome
Download Financials
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Welcome
Reflecting on 2020
Financials
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