CORE VALUES
To deliver unparalleled insurance service and coverage value while fostering trust and security for our policyholders and independent agent partners through a relentless commitment to integrity, community, and excellence.
OUR VISION
To be the most trusted and respected mutual insurance carrier by setting the standard for service excellence and superior coverage.
PRESIDENT’S LETTER
The U.S. property and casualty insurance industry experienced a pivotal year in 2024, with improved financial performance driven by premium growth, underwriting discipline, and strong investment returns. Despite ongoing external pressures from natural catastrophes, regulatory changes, and social inflation, the industry showed greater resilience and stability, leading to its first underwriting profit since 2020.
The Andover Companies saw a marked turnaround in 2024, delivering strong results across key financial and operational metrics. Net written premium rose 16.5% year-over-year to a record $992.9 million, reflecting disciplined pricing and sustained demand. Underwriting performance improved significantly, driven by sound risk selection and portfolio management. We reported a net underwriting profit of $50.3 million and a net combined ratio of 91.5%, outperforming the industry by 5.1% and improving year-over-year by 13.9%. We continue to see strong customer loyalty, with policyholder retention holding steady at an impressive 91.0%.
Favorable investment results and continued profitability in assumed reinsurance further contributed to a strong financial result. Net investment income grew to $113.7 million, an increase of $14.4 million or 14.5% over 2023. Our assumed reinsurance portfolio delivered a net profit of $58.6 million in 2024, a 6.7% increase from the prior year.
Operating profit surged to $182.7 million, supporting a year-end policyholder surplus of $2.7 billion—an all-time high and a 15.2% increase over 2023. Total assets grew 6.2% to $4.3 billion. Our net operating ratio dropped below 80% for the first time since 2016 to 77.8%, underscoring the strength of our core insurance operations.
Our Mission—to deliver unparalleled insurance service and coverage value while fostering trust and security for our policyholders and independent agent partners through a relentless commitment to integrity, community, and excellence—guided each decision we made. As we continue to pursue our Vision to be the most trusted and respected mutual insurance carrier by setting the standard for service excellence and superior coverage, we remain steadfast in our dedication to these principles.
Looking ahead, we remain committed to the continuous evolution of our company, guided by our Core Values: Be a Champion, Value Everyone, Be an Expert, and Rise to the Occasion. With the unwavering support of our agents, policyholders, reinsurance partners, board of directors, and employees, we will embrace new opportunities and continue to excel together.
It is an honor to serve our policyholders and communities.
Charles J. DiGrande, CPCU, ARe, AIM President & Chief Executive Officer
As filed with the Massachusetts Insurance Department. As of December 31, 2024.
503,429,484
627,268,417
2,683,600,902
36,768,134
186,438,437
10,268,215
270,769,686
1,614,980,147
2,703,563,128
4,318,543,275
SERVICE AND PROTECTION
PERSONAL LINES UNDERWRITING
STRENGTHENING SERVICE INITIATIVES
The Personal Lines Underwriting team commits the company to billions of dollars of liabilities each year. The team evaluates risk, supports agents in placing business, and upholds the highest standards of service while navigating ongoing market challenges.
Over the past three years, the team has responded to higher inflation and rising catastrophe reinsurance costs by focusing on adequate insurance to value and proper rate levels. Rate adjustments included the introduction of coastal surcharges and increases to rate relativity factors for higher-valued homes. A more granular pricing strategy has led to enhanced accuracy in premiums for all policyholders and protected our core inland book of business. In addition, the team adjusted deductible credits and added $5,000 and $10,000 deductible options, making higher deductibles more attractive to policyholders.
With improved profitability in 2024, efforts turned toward building an underwriting dashboard to support the team. The dashboard consolidates internal data from our Business Intelligence team and external third-party data in one location, enabling underwriters to evaluate risks and make informed decisions more effectively. Additional initiatives include partnering with an outside vendor to manage the thousands of monthly mortgagee inquiries we receive and developing an electronic Umbrella Renewal Questionnaire that policyholders will submit through our customer portal. This tool is planned for release in 2025 and will reduce processing time and help eliminate an inefficient paper-based process.
COMMERCIAL LINES UNDERWRITING
IMPLEMENTING STRATEGIC ENHANCEMENTS
The primary mission of the Commercial Lines Underwriting team is to collaborate with our agency partners to deliver superior protection for our policyholders at a fair and responsible premium. This principle guided several strategic initiatives in 2024 aimed at improving operational efficiency and expanding product offerings.
One of the key actions was the adjustment of coastal pricing, ensuring premiums accurately reflect true exposure levels. This adjustment helped align pricing with actual risk factors, providing a more equitable approach for policyholders in coastal regions. The team also launched an efficiencyenhancement project designed to optimize operations and streamline internal processes and workflows.
Building on these efforts, the team made significant strides in the continued rollout of a new excess liability product with a modernized form and limits now up to $5,000,000. This ongoing effort has enabled the team to better meet the evolving needs of policyholders and provide them with necessary coverage solutions. Additionally, the team continued to improve its automated inspection management tool, streamlining the inspection process, enhancing workflow efficiency, and providing advanced reporting capabilities for better tracking and management of inspections.
CLAIMS
FULFILLING ANDOVER’S PROMISE
At Andover, the Claims Department handles thousands of claims each year and treats each as if it were the only one, understanding the significant impact it can have on those involved, regardless of its size. From the first notice of loss to the final resolution, the team provides ongoing guidance and support to policyholders for as long as they need.
To ensure it continues to meet this standard, the Claims Department has maintained a strong focus on customer-centric training for team members. Over the past several years, it has refined both quantitative and qualitative measures to improve claim efficiency and accuracy.
This work continued in 2024 through advancements in the Claims Excellence Initiative, a strategy aimed at continuous improvement across the department. The department expanded after-hours services, streamlined adjustment capabilities, enhanced digital communication with policyholders, and strengthened data and information management practices. Additionally, it made significant investments in quality assurance and staff development.
Claims Excellence is more than just a program; it is a mindset that shapes the department’s priorities and drives its commitment to excellence in every aspect of claims handling. This approach enables the team to remain flexible, responsive, and supportive in an ever-changing claims environment, ensuring the Claims Department continues to fulfill the promise Andover has made to policyholders for nearly 200 years.
LOSS CONTROL
ENHANCING PROPERTY PROTECTION
The Loss Control team conducts thorough loss control evaluations with its dedicated team of highly trained inspectors. With diverse backgrounds in engineering and fire science, the team brings extensive expertise to perform inspections, assist our Underwriting teams, and set reconstruction costs as accurately as possible in a market experiencing significant fluctuations in construction rates.
This past year, the team worked with hundreds of policyholders to reduce or eliminate fire and liability hazards, conducting over 11 thousand loss control surveys and inspecting more than 48 million square feet of building space. Through these in-depth surveys and inspections, the team identified and resolved numerous immediate hazards, including leaking propane tanks, active plumbing leaks, and staircases in danger of collapse.
The Loss Control team works closely with agents and policyholders to improve property safety and will continue strengthening these efforts in 2025.
11,413
LOSS CONTROL SURVEYS
48,990,249
SQUARE FEET OF BUILDINGS INSPECTED
INVESTING IN OUR FUTURE
In 2024, The Andover Companies proudly achieved a record year for hiring, with 57 professionals joining our team, underscoring our focus on future growth and strengthening our workforce. As market demands continually change, we recognize that attracting new talent is essential to our continued success. This year, we welcomed a talented group of skilled professionals, enhancing our capabilities and driving innovation across our core functions. By prioritizing talent acquisition and investing in technology and data analytics, we are cultivating a culture of adaptability and sustained growth across the organization.
34 promotions 57 new hires GROWTH HIGHLIGHTS
YEARS
24 employees with 20-29 years
OF SERVICE
24 employees with 30-39 years
4 employees with 40+ years
EXPANDING OUR IMPACT
The Andover Companies Charitable Foundation continues to evolve in ways that emphasize our commitment to the communities we serve. Over the past year, we have increased philanthropic efforts by funding key projects, empowering underserved populations, and forming enduring relationships with local nonprofits.
To further our mission, we have expanded the Agency Impact Grant Program, allowing agency partners to directly support the nonprofits that matter most to them. Together, we are strengthening communities and creating a lasting legacy of support and service.
VERIFIED FOR GOOD
The Andover Companies is proud to be one of the first businesses verified as a BBB4Good Business by the Better Business Bureau (BBB). Launched in 2024, the BBB4Good program recognizes purpose-driven companies dedicated to ethical practices and community engagement. Being a BBB4Good company demonstrates our dedication to integrity, social responsibility, and our mission of driving meaningful change. It is an honor to be part of the program’s inaugural year, and we look forward to making significant positive impacts that will help us maintain this recognition for many years to come.
PROUD TO SUPPORT
OFFICERS & BOARD OF DIRECTORS
2024 OFFICERS
Charles J. DiGrande, CPCU, ARe, AIM President and Chief Executive Officer
Paul R. Nadeau, CPCU, ARe Executive Vice President—Underwriting and Business Intelligence
Stephen E. Randall Senior Vice President—Claims and Innovation
Amy L. DiPerna, CPA Vice President and Treasurer—Accounting
Justin H. Libbey, CPCU, ARe Vice President—Field/Marketing
Kevin A. McNamara Vice President—Information Technology
Kevin J. Ouellette
Vice President, Secretary, and General Counsel—HR and Administration
Ian M. Edwards, CPCU, ARe Regional Vice President—Field/Marketing
Stephen J. Zazzaro, CPCU Regional Vice President—Field/Marketing
Joseph M. Cataldo, Jr. CPCU Assistant Vice President—Claims
John F. Cole, CPCU, ARe Assistant Vice President—Underwriting
Dale M. Earnest Assistant Vice President—Information Technology
Timothy L. Sherrill, CPCU, ARe, AIM Assistant Vice President—Underwriting
Shawn M. Tisbert, CPCU, AIS, AU, AIAF, ARC, AINS, API, AIC, ARe Assistant Vice President and Assistant Treasurer—Accounting
Andrew A. Hayes, CPCU, AIC Secretary—Claims
2024 BOARD OF DIRECTORS
John Appleton
Retired Senior Vice President
Fidelity Investments
Merrimack, Cambridge, Bay State
Malcolm W. Brawn
Retired Chairman and Chief Executive Officer
The Andover Companies
Merrimack, Cambridge, Bay State
David F. Dietz
Retired Partner
Goodwin Procter LLP
Merrimack, Cambridge, Bay State
Charles J. DiGrande, CPCU, ARe, AIM
President and Chief Executive Officer
The Andover Companies
Merrimack, Cambridge, Bay State
Amy L. DiPerna, CPA
Vice President and Treasurer
The Andover Companies
Bay State
Thomas J. Hollister
Retired Chief Financial Officer
Harvard University
Merrimack, Cambridge, Bay State
Paul J. Jacques
Vice President, Pharmacy Administration
CVS/Omnicare
Merrimack, Cambridge, Bay State
Amy A. Latimer
Executive Vice President and Chief Operating Officer
Delaware North
Merrimack, Cambridge, Bay State
Justin H. Libbey, CPCU, ARe
Vice President
The Andover Companies
Bay State
Kevin A. McNamara
Vice President
The Andover Companies
Bay State
Paul R. Nadeau, CPCU, ARe
Executive Vice President
The Andover Companies
Merrimack, Cambridge, Bay State
Kevin J. Ouellette
Vice President, Secretary, and General Counsel
The Andover Companies
Bay State
G. Quinn Landers, JD Secretary—Claims Excellence
David T. Wilson, CPCU, AIC Secretary—Claims
Jennifer L. Cannata, CPCU, ARe, AIC Assistant Secretary—Claims
Craig M. Doyle, CPCU Assistant Secretary—Underwriting Product Development
John S. Louison Assistant Secretary—Claims
Catherine A. MacGilvray, SHRM-SCP, PHR, CEBS, JD
Assistant Secretary, Director, and Associate Corporate Attorney—HR and Administration
Karyn E. Polito Principal
Polito Development Corporation
Merrimack, Cambridge, Bay State
Stephen E. Randall
Senior Vice President
The Andover Companies Bay State
David A. Splaine President
Spinnaker Associates
Merrimack, Cambridge, Bay State
The Andover Companies consists of Merrimack Mutual
FIELD REPRESENTATIVES
NEW ENGLAND TERRITORY
Maine, Massachusetts, New Hampshire, and Rhode Island
Ian M. Edwards, CPCU, ARe
Regional Vice President
Joseph R. Corcoran III, CPCU, AU
District Manager
Southeastern Massachusetts and Rhode Island
Peter Dube
District Manager Maine
Emma G. Lewis, CPCU, ARe
District Manager North Shore Massachusetts
CENTRAL TERRITORY
Daniel M. Valeri, CPCU, CIC
District Manager
New Hampshire
Daniel M. Barone, CPCU, ARe
Executive Special Agent
Eastern Massachusetts
Karli D. Loiselle
Special Agent
Central and Western Massachusetts
Connecticut, Illinois, New Jersey, and New York
Stephen J. Zazzaro, CPCU Regional Vice President
Fred Brambila, CIC
District Manager Illinois
Scott A. Brekne, CPCU, CIC District Manager Metro New York and Long Island
Ryan G. Cass District Manager Northern New Jersey
Patrick M. Doherty**
District Manager Southern New Jersey
Scott D. Durham*
District Manager Southern New Jersey
Robert E. Knightly, CPCU, CIC District Manager Upstate New York and Westchester County
Christopher G. Perrini, CPCU, AU District Manager Connecticut
BUSINESS DEVELOPMENT
Daniel J. Findley, CPCU, ARe, MS
Director of Business Development & National Partnerships
FIELD SERVICES
Patricia N. O’Connell
Director of Field Services
ADM Product Owner
*Retired in 2024
**Joined in 2024
