Insurance Group 2020 A nn u al R e p o r t | 2 President’s Message In January of 2020 we began the year with an ambitious plan to move the company forward into the next decade. All plans are built on a set of assumptions; our plans did not include a global pandemic that would alter nearly everything we consider normal! In mid-March, based on state and federal guidance, we abruptly migrated 90% of our team members to a work from home strategy focused on maintaining operations on a temporary basis to ensure service to members. As the virus raged on, temporary became long-term, and we ended the year working primarily from our homes. In spite of these obstacles, I’m pleased to say that Goodville remains resilient, strong and focused on serving members into the future! Goodville was formed just eight years after the Spanish Flu pandemic that ravaged our country in 1918. Since that time the company has lived through the Great Depression, World War II, The Cold War, the Civil Rights conflict, the financial crisis of 2008 and now the COVID-19 pandemic. Through every crisis point and cultural change, Goodville has adapted and continued to meet its purpose – providing stability and support to members who experience financial loss or hardship. Mutual insurance, built on the concept of members supporting members, continues to provide a sustainable and valuable role for our communities! There were many challenges to the past year, but there were also opportunities. Driving habits were disrupted as a result of the pandemic, significantly reducing the number of miles driven by many of our members. We recognized early in April that with reduced miles driven there would also be a reduction in auto accident frequency. We understood that some of our members were experiencing financial hardship, while others were not materially impacted. These realizations led us to an opportunity – one that uniquely fit Goodville’s sense of mission and purpose. Rather than simply refund premium to members, we offered you the opportunity to donate your refund to support others in need. Of the $1.75 million refund provided, the Goodville community donated $110,000 to support those in crisis and Goodville matched those gifts with an additional $100,000 of extra charitable giving. An inspiring example of the original mission and purpose of mutuality! Reduced accident frequency continued throughout the balance of the year, and the communities we serve were fortunate to miss much of the impact of the severe weather that plagued many parts of the country. The combined results of improved property and auto experience from the prior year provided a strong underwriting gain. After the previous year, marked by negative experience in the auto sector and the impact of extreme weather in our coverage areas, these results provide welcome relief and allow us to moderate member premiums as we blend experience over time. Strong underwriting discipline, along with prudent investment practices and expense management continue to be recognized by external rating organizations. The “A”, Excellent rating with AM Best was extended for both Goodville and Reamstown and the company was included in in the country for the 11th consecutive year! The past year has demonstrated that the ability to adapt and change to the world we live in is critical to our success. Our long-term commitment to our guiding principles of Enduring Relationships, Outstanding Service, Competitive Products, and Financial Stability keep us grounded to what has made us successful for nearly a century. But the ability to change and adapt, with a focus on being member centric in every part of business, is what will make us sustainable into the next 100 years. Our plans have adapted continuously as the year developed, but at each point our focus remained on keeping our staff and agents safe and healthy, while maintaining exceptional service to our members. Those efforts have been rewarded with another successful year and a third consecutive year of our team members naming Goodville as one of Pennsylvania’s Best Places to Work! As we begin another year, we all hope for a return to normal. That desire is completely understandable, but we should also take time to be grateful for the blessings of 2020. In every year there is both adversity and opportunity. May we continue to adapt creatively and focus on the opportunities before us, as we build on the values and foundation of our past! David Gautsche – President & CEO3 The Four Pillars Guiding Us In a unique and challenging year, we continued to deliver on initiatives that improve and deliver on our guiding principles of Enduring Relationships, Competitive Products, Outstanding Service, and Financial Stability. Enduring Relationships Changes in driving habits and resulting reduction in accident frequency provided welcome relief to loss ratios in our automobile lines of business, providing an opportunity to moderate auto rates for our members. Providing a safe working environment for our growing team of committed professional staff has been a critical priority during the pandemic. Enabling our team to work remotely, supported by a core group who continued to operate essential functions from the office, allowed us to serve our agency network and members without interruption. We saw steady growth with our agency network, even during the pandemic. In 2020 we partnered with 11 new agencies who align with Goodville’s guiding principles and will deliver excellent service for our members. Investments in Underwriting and Field Marketing resources provided greater support for our growing group of independent agencies serving our members and communities. Goodville was recognized as #1 in the medium business category for the LNP Best Workplaces in Lancaster County, and named as one of Central Penn Business Journal Best Places to work in PA for the third year. Feedback from the surveys indicate that employees feel cared for and have an ongoing appreciation for the culture, as well as overall compensation and benefits provided. Competitive Products Two new church endorsements, Violent Incident Expense Coverage and Religious Expression Coverage are now available to member congregations. Commercial Umbrella cross sell features were added to gBiz to reduce the steps necessary for an agent to offer a commercial umbrella quote. Progress on improvements to Reamstown Mutual product offerings continued, including compliance with state filings, pricing adequacy, and better defined coverage/ underwriting guidelines. Expansion of R eamstown contracts to selected agencies in Pennsylvania to improve spread of risk. We continued to enhance our existing range of commercial coverages with a focus on broadening of our commercial lines appetite and making it easier for agencies to process business quickly and efficiently. Improved access to a two year history of policy documents now available through gBiz. Outstanding Service We continued our technology transformation and made significant investments to move to a more digital infrastructure. Our Claims department was chosen as the first total transformational initiative, with a goal of providing members and agents with industry leading claims service. Our new system will enable us to streamline the process and pay claims quickly and transparently, while maintaining our commitment to compassionate service, which speaks to who we are as a company. Features include automated status messages to alert agents & members of the progress of a claim and providing options for delivery of claim payments Financial Stability Through continued underwriting discipline, strong expense management and prudent investment practices we improved our financial position based on our key indicators. Inclusion in the W ards Top 50 property casualty companies in the country for the 11th consecutive year recognizes the financial stability and long-term view of how our business is managed. AM Best (A) Excellent rating for Goodville Mutual and Reamstown Mutual as external validation of the financial strength of the Goodville Mutual Insurance Group. #1 for medium business4 COVID-19 Pandemic Goodville’s Pledge to Help Our lives have been forever altered by the impact of the Coronavirus Pandemic. And our business, especially the personal lines automobile business, experienced changes never seen before in our company history. To recognize reduced risks associated with fewer miles driven we applied a premium credit, or refund, for all personal auto policyholders. However, we didn’t feel good about simply issuing refund checks and going back to running the business. After careful consideration of how best to support our policyholders (members) and their communities through and beyond the crisis, we looked to our company’s roots for guidance. Goodville was founded on the principle of bearing one another’s burdens and being socially responsible. Our compassion for others and desire to help took us to a conclusion unique to the insurance industry. 1. All personal auto members received a premium credit, or refund, of 15% of two months premium ($1.75M in policyholder relief) 2. If fortunate enough to be in a position to be charitable, members donated their refund to those in need. 3. Donations were directed by the member to local food banks, first responders, or international relief. 4. Goodville pledged and matched the first $100,000 committed to charity on behalf of our members. 3,956 remarkable, charitable, caring Goodville members donated their premium refunds for a total of $110,325! Goodville fulfilled its commitment to match the contributions – a grand total of $210,325 was delivered to charities and service providers proven to be essential during the pandemic. We purposely made sure all member directed donations to local food banks were allocated within the state the member resides. For more details, visit our webpage at REGIONAL FOOD BANKS $133,500 FIRST RESPONDERS / HEALTHCARE WORKERS $46,8625 FIRST RESPONDERS / HEALTHCARE WORKERS $46,862 INTERNATIONAL RELIEF $30,000 Addressing the growing international hunger crisis due to COVID-19 with help and guidance from the Mennonite Central Committee Our Values Compassion Integrity Financial Stability Commitment to our Communities6 PENNSYLVANIA OHIO INDIANA ILLINOIS KANSAS OKLAHOMA VIRGINIA DELAWARE Headquarters Great Lakes Branch Office New Holland, PA Napoleon, OH Our Independent Agents By State We partner with independent agencies who are active in their respective communities, selective in risk selection and are a good cultural “fit” for Goodville. Below we show our agency coverage across our footprint and highlight new agency appointments (blue) in 2020. PA OH KS VA OK IN IL DE Premium Written By State in 2020 DELAWARE: $5,599,424 Number of Agencies: 6 ILLINOIS: $6,013,681 Number of Agencies: 17 New Goodville Agents in 2020: Equity Insurance Group, Inc. INDIANA: $6,619,445 Number of Agencies: 15 KANSAS: $18,444,330 Number of Agencies:17 OHIO: $38,523,459 Number of Agencies: 51 OKLAHOMA: $9,950,929 Number of Agencies: 6 PENNSYLVANIA: $98,451,154 Number of Agencies: 74 Goodville / 96 Reamstown New Goodville Agents in 2020: Artman Agency Daubert Shannon & Associates, LLC Domino Insurance Agency, Inc. E.K. McConkey & Co., Inc. Earley-Polli Agency, Inc. Insurance Services United, Inc. VIRGINIA: $15,627,075 Number of Agencies: 26 New Goodville Agents in 2020: Adams Insurance Agency, Inc. Integrity Insurance Group LLC Simple Blessings Insurance Agency The Insurance Marshall, LLC7 Our 2020 Partnership Council looked a little different as with most events throughout the year. We hosted a virtual event, over three days, beginning with a one to one with David Gautsche, President/CEO providing an update on 2020 results, industry trends and a lively Q&A. Our guest speaker, Spencer Houldin, presented his take on “Transforming Your Agency After COVID”. And our agent feedback sessions were packed full of good suggestions related to our products, the future of Personal Auto, and dialogue on Farm and Commercial Lines. This feedback guides us in our future direction and helps to shape our projects and initiatives. We closed out the Partnership Council with a virtual celebration announcing the winners of our GALA (Goodville Achievement & Leadership Appreciation) awards in seven categories, recognizing the highest achievements within this group of top performers. This year’s event was void of handshakes, high-fives and hugs but provided a virtual connection to the Partnership Council agents that is so important to the continued success of our company. Partnership Council Gala Award Winners New to Partnership for 2020 Lehman Insurance Agency, Inc. Rodney Lehman — PA Most New Commercial Lines Policies Written Most New Personal Lines Policies Written Kyle Champ Portland Insurance Agency, Portland, IN Clapper Insurance Agency, Inc. — PA Most New Farmowners Policies Written Nathan Sprunger Sprunger Insurance Agency, Inc., Pandora, OH Sprunger Insurance Agency, Inc. — OH Nathan Sprunger Largest Premium Growth <$1.5M Lowest 5 Year Uncapped Loss Ratio Keith Moyer Moyer Insurance, Inc. New Alexandria, PA (Also pictured: Lynn Simms and Brian Moyer) Loman-Ray Insurance Group LLC — IL Brian Loman Largest Premium Growth >$1.5M Troy Suter LD&B Insurance & Financial Services, Harrisonburg, VA Balsbaugh Insurance Agency, Inc. — PA Mike Landis and Mike Balsbaugh Longest Continuous Period of Partnership Status Earned Partnership Council by Zoom OKLAHOMA: $9,950,929 Number of Agencies: 6 PENNSYLVANIA: $98,451,154 Number of Agencies: 74 Goodville / 96 Reamstown New Goodville Agents in 2020: Artman Agency Daubert Shannon & Associates, LLC Domino Insurance Agency, Inc. E.K. McConkey & Co., Inc. Earley-Polli Agency, Inc. Insurance Services United, Inc. VIRGINIA: $15,627,075 Number of Agencies: 26 New Goodville Agents in 2020: Adams Insurance Agency, Inc. Integrity Insurance Group LLC Simple Blessings Insurance Agency The Insurance Marshall, LLC8 Employee Milestone Anniversaries 45 Years Jerry Goodpaster VP of Underwriting / Personal Lines Underwriting Manager - Mar 3 35 Years Jan Humphrey Commercial Lines Underwriter- Apr 28 25 Years Anne Weaver Personal / Commercial Underwriting Processor II - May 8 20 Years Neil Giffey Loss Control Inspector & Facilities Maintenance Operator - Apr 10 Susan Vernot Senior Farm Underwriter - Jun 26 Sarah Sweet Personal Lines Underwriter - Aug 29 Kimberly Menzel Senior Personal Lines Underwriter / Processor Supervisor - Sep 20 Missy Montgomery Product Owner - Oct 3 Linden Sommers Assistant Marketing Manager - Oct 16 15 Years Ryan Eberly Software Development Supervisor - Apr 11 Jeff Kennedy Field Marketing Representative - Aug 1 10 Years Rosie Martin Office Specialist - Mailing - Nov 29 5 Years David Gautsche President / CEO - May 1 Wesley Litton Software Web Developer- June 8 Jackie Shirk Underwriting Processor I / Office Specialist - Mailing - Oct 26 Judy Nguyen Claims Staff Assistant & CSR - Oct 26 Mark Van Scyoc Scrum Master - Nov 16 Celebrating 45 Years Celebrating 35 Years Celebrating 25 Years Celebrating 20 Years Celebrating 15 Years Celebrating 10 Years Celebrating 5 Years9 45 Years Jerry Goodpaster VP of Underwriting / Personal Lines Underwriting Manager - Mar 3 35 Years Jan Humphrey Commercial Lines Underwriter- Apr 28 25 Years Anne Weaver Personal / Commercial Underwriting Processor II - May 8 20 Years Neil Giffey Loss Control Inspector & Facilities Maintenance Operator - Apr 10 Susan Vernot Senior Farm Underwriter - Jun 26 Sarah Sweet Personal Lines Underwriter - Aug 29 Kimberly Menzel Senior Personal Lines Underwriter / Processor Supervisor - Sep 20 Missy Montgomery Product Owner - Oct 3 Linden Sommers Assistant Marketing Manager - Oct 16 15 Years Ryan Eberly Software Development Supervisor - Apr 11 Jeff Kennedy Field Marketing Representative - Aug 1 10 Years Rosie Martin Office Specialist - Mailing - Nov 29 5 Years David Gautsche President / CEO - May 1 Wesley Litton Software Web Developer- June 8 Jackie Shirk Underwriting Processor I / Office Specialist - Mailing - Oct 26 Judy Nguyen Claims Staff Assistant & CSR - Oct 26 Mark Van Scyoc Scrum Master - Nov 16 TOP ROW FROM LEFT TO RIGHT: Vince Zaffiro, Chief Information Officer; Bruce Brizzi, Vice President Marketing, Kevin Filler, Vice President Underwriting SECOND ROW FROM LEFT TO RIGHT: Maryfrances Cooper, General Counsel; Kathy Good, Director of Product Development BOTTOM ROW FROM LEFT TO RIGHT: Philip Shirk, Chief Financial Officer; David Gautsche, President & CEO; Michael Zimmerman, Vice President Claims FRONT ROW FROM LEFT TO RIGHT: James M. Harder, Chairman, Bluffton, Ohio, Miriam E. Shirk, Goshen, Indiana, Carlton L. Miller, Vice Chairman, Boalsburg, Pennsylvania, David C. Gautsche, President/CEO, Lancaster, Pennsylvania, Glennys H. Shouey, Mt. Crawford, Virginia, Lori B. Miller, Archbold, Ohio, Jeremy C. Shue, Goshen, Indiana. SECOND ROW FROM LEFT TO RIGHT: Donald L. Nice, Perkasie, Pennsylvania, Scott Miller, Defiance, Ohio, John L. Frankenfield, Secretary, Harleysville, Pennsylvania, Allon H. Lefever, Treasurer, Lancaster, Pennsylvania, A. Pete Wyse, Wauseon, Ohio, Andrew Dula, Lancaster, Pennsylvania. THIRD ROW FROM LEFT TO RIGHT: Sanford L. Alderfer, Harleysville, Pennsylvania, Gregory A. Edwards, Napoleon, Ohio. * photo was taken Dec 2019 President’s Team Board of Directors Early in 2020, Kevin Filler stepped into the role of Vice President, Underwriting. In September we welcomed Vince Zaffiro as Chief Information Officer, a new role added to the President’s Team, indicating the importance of the IT function to the continued success of our business. Kevin Filler Vice President Underwriting Vince Zaffiro Chief Information OfficerNext >