The Property & Casualty industry underwent significant transition in 2025. Early in the year, inflation, extreme weather, and liability claims costs impacted pricing; however, overall market conditions ultimately stabilized. Additionally, artificial intelligence revolutionized underwriting and claims techniques, and numerous consolidations continued to alter the independent agency channel.
Consistent investment in our systems and processes, combined with our people-first culture, positioned us well to meet these challenges.
FINANCIAL RESULTS
We achieved an outstanding Net Combined Ratio of 95.2%, making 2025 one of the most profitable years in Arbella’s history with a net income of $87.5 million. Our surplus grew to more than $1.1 billion, while investments exceeded $2 billion.
In February 2026, AM Best reaffirmed Arbella’s Financial Strength Rating of A (Excellent) with a stable outlook, reflecting our strong operational efficiency and strategic foresight.
NOTABLE ACHIEVEMENTS
In 2025, we launched new coverages to respond to evolving customer needs. We refined our risk management and underwriting strategies to address the impacts of climate change
and legal system abuse. And to ensure we continue to deliver exceptional customer experiences, we implemented several transformational system upgrades.
Throughout these transitions, our agents and customers reported that our employees supported them with transparent, responsive, and solution-oriented communications. Our world-class service center received industry-wide recognition for its superior results.
HERE. FOR GOOD.
None of these accomplishments would have been possible without our people. We continued to put them first, proudly upholding our commitment to employee engagement, professional development, and diversity and inclusion. Our employees voted us a Boston Business Journal Best Places to Work company for the 17th consecutive year, an achievement unmatched by any other company.
The Arbella Insurance Foundation celebrated 20 years of positive community impact in 2025. Through its $20K for 20 initiative, a commitment to give $20,000 to 20 local nonprofits, the Foundation, along with Arbella employees and agents, donated $400,000 to charities addressing homelessness, addiction, domestic violence, and more.
A TRIBUTE TO JOHN DONOHUE, OUR CO-FOUNDER AND FORMER CEO
In June 2025, our co-founder, John Donohue, retired from his position as President and Chief Executive Officer after more than 30 years leading the company. Under his leadership, Arbella achieved significant financial success while building the award-winning, relationship-driven culture that defines us today. Although this chapter of his career has come to a close, John will continue in key leadership roles as Chairman of Arbella’s Board of Directors and as Chairman and Chief Executive Officer of the Arbella Insurance Foundation. The core values established by John and the late Frank Bellotti, former Vice Chairman of Arbella’s Board, remain firmly in place, and our employees, agents, customers, and communities will continue to be at the center of everything we do.
LOOKING AHEAD
In 2026, our focus continues to be on profitably growing our business. The challenges we face are ever evolving, but our strategy of putting people first will never change.
Thank you for your partnership and continued support.
Paul J. Brady, President & Chief Executive Officer, Arbella Insurance Group
SERVICE
Theculmination of several large-scale technology initiatives resulted in significant improvements to the service we deliver to our customers and independent agents. In the past few years, we reduced the duration of our contact center calls by 15-45 seconds per call, resulting in shorter queue times.
We enhanced self-service options that let customers complete routine tasks quickly, enabling employees to focus on moments that require deeper insight, expertise, and care. Both our customers and agents reported consistently positive interactions with our employees, stating they were knowledgeable, reliable, and kind.
The International Customer Management Institute recognized this transformation by awarding Arbella the prestigious Customer Service Innovation Award, citing our exceptional dedication to new strategies and technologies that elevate the service experience.
Our agents rely on us for operational tools and resources in their efforts to support customers. Last year, we implemented a new digital connectivity platform that improves communication with agents and modernizes policy and billing processes. Through strategic business transfers, agents placed thousands of new policyholders with us, expanding our footprint and ensuring uninterrupted coverage and service continuity.
The Arbella Service Center (ASC) is a specialized contact center delivering personalized customer service to policyholders on behalf of a select group of our agents. We continued to expand the ASC in 2025, and once again, agents reported that their customers received superior service.
These achievements have positioned Arbella as future ready. And although several technology improvements have made it possible for us to remove barriers and eliminate pain points, we could not have done it without our dedicated group of employees who always put our customers first.
“The Arbella Service Center has been a great partner to our team and our clients. They are responsive, easy to work with, and consistently take good care of our insureds.”
– Arthur Romanov, Partner, New England Insurance Group
PERSONAL LINES
The personal insurance market continued to stabilize in 2025 as profitability improved and premium increases subsided. After several years marked by persistent inflation and rising loss costs, the industry pivoted from a hard market to one that called for growth.
Arbella’s disciplined underwriting performance enabled us to adapt seamlessly to market challenges. Strategic underwriting and pricing actions early in the year strengthened our competitive position and drove increased new business in the second half. We also launched our new homeowners platform that transformed the agent experience, modernized our systems, and accelerated product innovation.
Our ability to respond to changing market conditions resulted in Direct Written Premium growth of 5.2% to $895.9 million, and a strong, diversified book of business. We ended the year with a Direct Loss/ALE Ratio of 52.9% and a Net Combined Ratio of 93.7%.
Our performance reflects the strength of the relationships we maintain with our independent agents. The skill and responsiveness of our teams, combined with prompt and transparent communication regarding pricing, underwriting practices, and systems enhancements, reinforced our standing as an industry leader in service and capability.
Last year’s transformational changes introduced meaningful challenges across the organization, and our employees responded with resilience, agility, and unwavering commitment. They remained trusted, strategic partners to our agents while successfully managing increased new business volumes and redesigning critical system workflows and processes.
Liability exposure, loss trends, and the growing impact of extreme weather will continue to shape our industry. Arbella Personal Lines is well-positioned to navigate these challenges, grow profitably, and remain the go-to insurance market for our agents and policyholders.
“In the independent agent system, relationships are paramount. Arbella gives us confidence that this system can continue to work. They communicate openly and honestly and listen to the agent’s perspective, even in challenging times.”
– Stephen Connulty, President & CEO, Paul & Dixon Insurance
COMMERCIAL LINES
In 2025, the commercial insurance industry faced several significant market constraints. Elevated loss exposures, rising liability and litigation costs, and shifting pricing dynamics contributed to a rapidly changing environment. Arbella Commercial Lines continued our focus on rigorous underwriting, advanced risk modeling, and fair, disciplined pricing, which led to outstanding business results.
We maintained profitability and growth, delivering an 8.4% increase in direct voluntary premium, driven by a healthy balance of high customer retention and nearly $36 million in new business. Our continued focus on growing our business in New Hampshire led to an increase in revenue, customers, and brand exposure in that state.
These achievements, combined with our strategically diversified book of business and the favorable weather, resulted in a direct voluntary Loss/ALE Ratio of 54.5% and Net Combined Ratio of 99.2%.
Listening and responding to independent agents is always critical, but particularly in 2025, as we experienced shifts in liability loss trends. Arbella’s sustained growth is the direct result of the collaborative, trusting relationships we’ve built with our agents. They once again reported
that our employees were consistently attentive, skilled, and resourceful.
In 2025, market conditions improved in commercial property insurance. However, liability lines continued to face pressure from high severity verdicts and the challenges associated with legal system abuse. Historically concentrated outside New England, these trends have intensified in all states in which Arbella operates. In response, we expanded our risk management and loss control capabilities to help customers identify and mitigate exposures before they result in claims. Our team provided targeted education and communication to agents and policyholders on market shifts and outlooks to strengthen decision-making and reduce losses, particularly with respect to general liability and commercial automobile.
Addressing extreme weather and climate change remains a priority for the commercial property industry. Our Product and Loss Control teams continued to distinguish us in the market through on-site analyses and the use of technology to assist customers in strengthening their weather resilience. These initiatives resulted in both high levels of customer satisfaction and reduced losses.
Rising liability costs and severe weather events will continue to challenge the industry, but we remain committed to growth. Building on the momentum we achieved in 2025, we will continue to grow profitably with the support of our agents and the trust of our customers.
“We’ve had a relationship with Arbella for over 30 years. While some of the people have changed, the service they provide has always been exceptional. There’s no one at the company who we can’t call.”
– Larry Hall, Principal, Owner, Segreve & Hall
CULTURE & BRAND
Arbella experienced meaningful change in 2025. As we successfully navigated market fluctuations, we also marked an important leadership transition: the retirement of John Donohue and the promotion of Paul Brady. This ushered in a new chapter of Arbella’s journey.
The company was well prepared for this moment. Guided by our unwavering commitment to our people, we successfully executed on our succession plan that had been thoughtfully developed over the years. This foresight ensured leadership continuity and reinforced our adherence to our core values and people-first culture, enabling a smooth transition while preserving strategic focus and organizational stability.
Central to this success was the talent, dedication, and expertise of our employees. We supported their continued growth by investing in executive development, management training, coaching, and guiding our employees through organizational change. Our ongoing commitment to building and sustaining our diverse and inclusive culture was evident by the increased number of diverse employees hired throughout the year. We strengthened awareness through educational and cultural events to foster understanding to ensure that all employees feel valued and supported. This sustained commitment to culture and development was
recognized by our employees, who once again voted Arbella a Boston Business Journal Best Places to Work company for an unprecedented 17th consecutive year.
Arbella’s values shape how we engage our customers and communities, and in 2025, we connected through both new brand campaigns and enduring strategic media partnerships.
Our fully integrated advertising campaigns emphasized Arbella’s brand promise to deliver outstanding, personalized service to customers throughout New England. Our established partnerships with local sports teams and media networks increased our regional visibility, with prominent displays at Bruins, Celtics, Patriots, and Free Jacks games.
Our long-standing partnership with Special Olympics Massachusetts (SOMA) was also recognized by the Boston Business Journal with the Community Collaborator Award.
Our industry is evolving as are the needs of the people and communities we serve. Arbella will continue to empower our teams, strengthen our partnerships, and serve our customers with care—we are Here. For Good.
“I’ve spent most of my 18-year career at Arbella in Claims. In 2024, I was eager to expand my skillset and had the opportunity to train in the Customer Service department, which led to a promotion. Arbella’s focus on career development, as well as its amazing culture, make it a great place to work.”
In 2025, the Arbella Insurance Foundation celebrated— with gratitude—20 years of strengthening the communities we serve. Together with Arbella employees and independent agents, the Foundation has donated $49.5 million to thousands of nonprofits and built enduring community impact.
In recognition of this achievement, the Foundation launched its $20K for 20 initiative, an opportunity for 20 Arbella employees and agents to nominate a charity of their choice for a $20,000 donation from the Foundation. Together, we donated $400,000 to community charities throughout New England.
Last year, many nonprofit organizations faced financial challenges due to reductions in federal and state funding. Through it all, the Foundation continued to be a trusted and reliable partner.
In response to rising levels of food insecurity, we launched our annual Let’s Drive Out Hunger campaign earlier than usual and kept it open throughout the year to provide sustained support to those in need. In total, Arbella employees, agents, and our Foundation donated $214,000 to local food pantries.
1,700 $49.5 million $20,000 employee volunteer hours donated to 34 organizations, including the Greater Boston YMCA, New England Wildlife Center, and Quincy Public Schools.
was donated to thousands of organizations over the past two decades. was donated to 20 charities chosen by employees and agents to celebrate our 20 years of giving back to the communities we serve.
Arbella employees and agents maximized their financial impact, utilizing the Foundation’s Matching Gift Program for a total donation of $376,000 to the community organizations that are most important to them.
Arbella employees also donated more than 1,700 volunteer hours to 34 organizations, including the Greater Boston YMCA, Catie’s Closet, and Rosie’s Place. They also participated in the Stop the Stigma 5K, The Jimmy Fund Walk, and The Walk to End Alzheimer’s.
One of the key differentiators of the Foundation is our commitment to helping our nonprofit partners build capacity within their organizations so they can effectively achieve their missions. This includes providing consulting on their strategic planning, fundraising, and board development.
The challenges our communities faced in 2025 were and will continue to be complex. The Arbella Foundation remains a supportive and steadfast ally to the organizations and individuals driving positive change.
“We are so grateful to have been one of the Arbella Insurance Foundation’s $20K for 20 recipients. With this donation, we were able to more than double the number of families we support through our Forget-Me-Not Initiative, which provides financial assistance to families impacted by substance use disorder.”
– Joanne Peterson, Founder and Executive Director, Learn to
Cope
FINANCIALS
“Arbella’s profitability in 2025 is the result of our thoughtful, strategic approach to addressing the headwinds of the personal lines industry in recent years.”
–
Chris Hall, Chief Financial Officer, Treasurer & Executive Vice President, Arbella Insurance Group
BALANCE SHEET (reported in thousands)
Arbella sells property and casualty insurance products through independent and other local agents in Massachusetts, Connecticut, New Hampshire, and Rhode Island.*
$1,288,007
OUR VISION
Arbella’s vision is to be the best property and casualty company in the Northeast.
OUR MISSION
Arbella’s mission is to be a recognized regional leader in the property and casualty insurance industry. We will achieve this by maintaining financial strength, providing excellent service and products, and staying true to our core values.
OUR CORE VALUES
EMPLOYEES
We encourage a culture that supports the balance between personal interests and professional goals and development.
DIVERSITY AND INCLUSION
We are committed to building a more diverse, supportive, and inclusive workplace where all individuals are valued for their talents and are empowered to reach their full potential.
CUSTOMERS
We maintain the highest levels of customer service and treat all customers with honesty and fairness.
TRUST
We maintain positive and enduring relationships with all those who rely on our service. We keep our word and act with honesty and integrity.
PERFORMANCE
We always seek new ideas, opportunities, and methods of doing business because we strive for excellence. We aim to outperform the industry in every way. We are resilient and passionate about what we do.
CITIZENSHIP
We engage in activities that have a positive impact on the people and organizations within our communities.
BOARD OF DIRECTORS
JOHN F. DONOHUE
Chairman
THOMAS S. CARPENTER
ANNE M. DEFRANCESCO
WILLIAM H. DUMOUCHEL
AISHA FRANCIS, PH.D.
ANDREA W. GARGIULO
THOMAS R. KILEY
ELIZABETH K. KIM
JOSEPH G. MURPHY
BRIAN J. O’DWYER
JEANNETTE M. ORSINO
AARON R. THOMAS
OFFICERS OF THE ARBELLA INSURANCE GROUP
PAUL J. BRADY
President & Chief Executive Officer
ROBERT BIZAK
Executive Vice President, Sales & Marketing
JANET R. CORCORAN
Executive Vice President & Chief Operating Officer
GAIL EAGAN
Executive Vice President, General Counsel & Corporate Secretary
CHRISTOPHER E. HALL
Executive Vice President & Chief Financial Officer, Treasurer
JAMES S. HYATT
Executive Vice President & Chief Underwriting Officer
GAYLE O’CONNELL
Executive Vice President & Chief Marketing Officer
