The geographic diversity of the alliance's customer base to enable the combined entity to spread its risk and mitigate the impact of large losses
Rockingham Group and Norfolk & Dedham Group, which comprise mutual
insurance companies, have formed an alliance to improve their collective competitiveness and benefit from their shared resources while maintaining company autonomy and identity.
Rockingham expects that the geographic diversity of the alliance’s customer base enables the organization to spread its risk and mitigate the impact of large losses like those associated with weather-related catastrophes. Another primary goal of the alliance is to create a more diverse organisation utilising efficient and streamlined business processes. Due to the efficiency of both existing organizations, no staff reductions are planned.
Rockingham Group has said that policyholders will benefit from a vital organisation that is positioned to withstand losses and maintain its financial integrity. It has added that new products and services will be introduced, and the alliance will provide an environment to attract and retain the individuals needed to effectively service its over 170,000 policyholders.
Neal Menefee, president and CEO of the Rockingham Group, said: “For far too long many mutual insurance companies have not recognized and adapted as quickly and effectively as they should have to changing market conditions. Those companies that not only understand, but also take action to deal with the dramatic changes occurring in the business, will be in a better position to take care of their customers’ future needs.
Timothy Hegarty, president and CEO of The Norfolk & Dedham Group, said: “Our Alliance demonstrates how two mutual insurance companies with long-standing traditions can demonstrate farsighted thinking in preparing themselves to prosper in a more competitive and changing business environment.”
Virginia-based Rockingham Group consists of Rockingham Mutual Insurance Company, Rockingham Casualty Company, and Rockingham Mutual Service Agency. Massachusetts-based The Norfolk & Dedham Group consists of Norfolk & Dedham Mutual Fire Insurance Company, Dorchester Mutual Insurance Company, and Fitchburg Mutual Insurance Company.