Cumberland Insurance Group Remains Strong in the Face of Financial Downturn

CUMBERLAND COUNTY, NJ: With the torrent of bad economic news sweeping Wall Street and Main Street, businesses and individuals are justifiably nervous about the ability of their insurance company to protect their assets. According to the Boston-based insurance consultant Celent, “This crisis is sure to affect insurers the world over for years to come. Although the unprecedented breadth and intensity of issues currently facing the industry will constrain future growth, they also represent opportunities for carriers that position themselves correctly.”

“The dynamics of the current marketplace provide The Cumberland Insurance Group with opportunities, as more and more of our agency partners look to the Company to answer the needs of the insurance buyer,” said Leo T. Hogan, Cumberland Insurance Group Chairman and CEO. “As a result of strategies we have followed over the last decade, The Cumberland Insurance Group remains strong in the face of this worldwide financial downturn.”

“Over the last ten years, The Cumberland Insurance Group has achieved record direct written premiums and policyholders’ surplus,” said President Robert P. Brady. “In fact, in a most recent comparative analysis of current financial responsibility by Standard Analytical Service, Inc. of fifteen leading Property and Casualty companies, Cumberland Insurance outperformed the aggregate average in all categories.”

“However, in order to remain a premier mutual insurance company, we must continue to evaluate our existing products and develop new products and technology to meet the need of our customers,” Brady said. “Through our Information Technology and Research and Development Departments we are developing valuable innovations, ideas, and practical applications which will be a source of value when it comes to gaining a competitive advantage in the marketplace.”

According to Celent, “Carriers will need to reexamine their IT projects against a combination of strategic goals, including getting smarter by making better use of their market data and developing more robust analytic and modeling capabilities.”

“With the wisdom and guidance of our Board of Directors, The Cumberland Insurance Group has taken great strides to better serve our customers by maintaining the Company’s focus on tradition while welcoming innovation and growth,” said Richard M. Ritter, Cumberland Insurance Group Executive Vice President. “By continuing to evaluate our current product offerings and developing new products and technologies, we enhance our ability to increase our book of business.”

“In the face of current financial conditions, The Cumberland Insurance Group remains a well-capitalized company whose surplus exceeds its written premiums, ensuring that we have the financial strength to aggressively compete for new business,” said Paul J. Ritter, III, Senior Vice President, CFO, and Secretary to the Board. “Furthermore, our commitment to Enterprise Risk Management initiatives ensures our safety and soundness in these uncertain financial times.”

“The attention to detail in all aspects of our business helps separate us from other insurance companies. It is a legacy of service and financial strength that is reflected in our day-to-day operations. We are proud to say that for over 163 years we have been there when it counts, meeting the needs of our policyholders with competitive and innovative products and exceptional customer service. As we navigate the current market conditions and look to the future, we will continue to deliver the products, services, and technology that make The Cumberland Insurance Group the best solution for our agents and policyholders.”

The Cumberland Insurance Group was established in 1844 and currently serves over 134,000 policyholders in the states of New Jersey, Pennsylvania, Delaware, and Maryland. In 2007, the Company had Total Admitted Assets of $322,267,129 and a Policyholders’ Surplus of $140,387,741. For more information about The Cumberland Insurance Group, please visit www.cumberlandgroup.com.

For more information about this press release, please contact Lee Tofanelli at 856-691-3113.