Mutual Benefit Group2015 Annual Report

“Inside my empty

bottle I was constructing a lighthouse while all the others were

making ships.” - Charles Simic

409 Penn Street ● Huntingdon, Pennsylvania 16652www.mutualbenefitgroup.com

Timothy I. HaviceChair of the Board

Steven C. SliverPresident Chief Executive Officer

Kevin M. O’BrienSenior Vice Presidentof Insurance

Peter M. McManamonSecretary

Robert R. PackerVice Chair of the Board

Joseph L. SloanVice PresidentTreasurerChief Financial Officer

Directors

Officers

John D. Coursen Huntingdon, PA

Mark R. CumminsGreen Lane, PA

Debra A. Goodling-KimeDover, PA Timothy I. HaviceLewistown, PA

Janis HerschkowitzHummelstown, PA

Judy LoyPort Matilda, PA

Peter M. McManamonHuntingdon, PA

Robert R. PackerClymer, PA

Steven C. SliverHuntingdon, PA

Leadership

• Rated A- (Excellent) by A.M. Best Company, the leading independent analyst of the insurance industry.

• Represented by more than 250 independent insurance agents throughout Pennsylvania and Maryland.

• Providing prompt, efficient claims service to nearly 75,000 policyholders through full-time staff adjusters and independent adjusting specialists.

• Offering a full line of personal and commercial insurance coverages, including homeowners, automobile, commercial package plans, workers’ compensation, inland marine, and umbrella through Mutual Benefit Insurance Company and Select Risk Insurance Company.

• Named one of the Best Places to Work in PA for six consecutive years (2009-2014).

Company Overview

Assets (000’s) 2015 2014Cash in Bank $ 4,756 $ 4,528Bonds (Amortized) $143,659 $142,380Stocks (Market) $ 29,865 $ 28,993Real Estate $ 6,717 $ 6,850Accounts Receivable $ 26,216 $ 22,717Reinsurance Recoverable $ 1,532 $ 1,003Accrued Interest $ 1,645 $ 1,826All Other Assets $ 392 $ 281

$214,782 $208,578

Liabilities (000’s) 2015 2014Reserve For Unearned Premium

$ 51,635 $ 48,913

Reserve For Loss and Adjusting Expense

$ 67,512 $ 70,379

Reserve For All Other Liabilities

$ 10,154 $ 7,888

Policyholder Surplus $ 85,481 $ 81,398$214,782 $208,578

Financial StrengthA ship versus a lighthouse. One carries you off into the unknown. The other guides you home to safety. I am proud to say that the MBG light shone ever more brightly during this past year for our policyholders, a beacon of security and economic well-being for those who have trusted their insurance needs to this fine company over the past 108 years.

Watching some of our larger competitors’ TV commercials, I am reminded of a carnival cruise or an ark replete with comedy floor shows and animal acts. Amusing yes, but we’ve never thought that it should be amusing to ensure your safety and security. We see that responsibility as a sacred charge upon which we shine our light daily. Our growth rate through time and the strong approval ratings we get from our customer satisfaction surveys illuminate our strategic path forward as we strive daily to deliver an experience to you that will be easy, expedient, and rewarding.

Our agent partners are critical to our success in delivering The MBG Experience to you. We work just as diligently to support them with a similar level of excellent service as they work with you to secure the fairly priced, excellent coverage your family or business requires. Like a team, the agent as harbor master and MBG as the lighthouse work together to bring your family or business “ship” safely to shore even through the roughest of storms. I am proud to tell you that the agents in Pennsylvania and Maryland ranked us second in a recent company satisfaction survey.

After several years of stormy weather throughout our territories, 2015 produced more normal weather patterns and less claim activity. Accordingly, our financial performance was one of the brightest we’ve enjoyed. We realized record premium production and achieved an all-time high in policyholder surplus. You can rest secure knowing that your insurance protection is built on a rock-solid financial position with MBG, just as a lighthouse shines forth from its mount on the securest of foundations.

As a mutual insurance company we serve you, our policyholder, with undivided interest. We exist only for your benefit. Our light shines forth at your frequency to ensure that you enjoy the best experience available as you navigate the risks and perils of life. We were privileged to be your insurance company of choice during 2015. We would be pleased to be your insurance company of choice for many years to come.

Your future is bright with Mutual Benefit Group.

Steven C. SliverPresident and CEO

From the President

180.2189.1 194.2 207.9

214.8

0255075

100125150175200225

2007 2009 2011 2013 2015

Assets (millions)

99.1  

105.4  

109.2  

106.2  

112.3  

90  

95  

100  

105  

110  

115  

2007   2009   2011   2013   2015  

Premium Writings (millions)

62.8   61.7   62.3  

81.5  85.5  

0  

20  

40  

60  

80  

100  

2007   2009   2011   2013   2015  

Policyholder Surplus (millions)