ANNUAL REPORT 2022GOODVILLE MUTUAL INSURANCE GROUP a year’s overview PRESIDENT’S MESSAGE Goodville has always focused on being an effective underwriting company, which requires being selective and carefully matching risk and rate. Based on the diligent efforts of our underwriters and agents, we expect to make a reasonable underwriting gain each year, allowing us to continue to invest in the business. We also hope for income on the invested reserves of the company. In some years, both work to our benefit and occasionally headwinds create obstacles in both areas. This was one of those difficult years, resulting in a very modest underwriting gain of $2.1M and investment losses based on the current economic climate. Despite the year’s challenges, your company remains financially strong and prepared to serve our members well into the future. As a result, our “A” rating from AM Best was reaffirmed, along with earning our 13th consecutive year on the list of Ward’s Top 50 Property & Casualty companies in the nation. This honor recognizes Goodville’s financial stability, consistency, and superior financial performance over the longer term. We continue to invest in the future with a keen focus on your experience as a member. In the following pages, you will find more detail on these initiatives. Our committed teams focus on serving our members and agents alike and are committed to achieving our mutual success! David C. Gautsche – President & CEO Looking back on 2022, I’m reflecting on the opportunities and challenges the year provided. Life began to return to normal, but we also were forced to recognize the lingering impacts of the global pandemic that will be with us well into the future! Goodville is fortunate to be strong financially and organizationally and well prepared to adapt to a dynamic marketplace. Our mutual structure allows us to remain focused on the long-term mission and purpose of the company – serving our members within the context of our historical values. Early in the year, our Board of Directors and leadership team updated our Vision and Mission statements and supporting Guiding Principles, all of which assist with key strategic decisions. Our Charity of Choice campaign is a great example of how we are trying to honor organizational values. I encourage you to read more about these important foundational statements and the Charity of Choice program later in this report. Our teams made significant progress on many important projects over the year. I’ll highlight two of them here: • After two years of analysis and planning, we implemented an updated personal auto rating plan which fundamentally changes how we price this product. The changes make this product affordable and competitive in the marketplace, addressing changes in vehicles and driving patterns and creating a sustainable path for the next decade. • In 2019 Goodville affiliated with Reamstown Mutual Insurance Company to expand the range of coverages we offer to our members. In April, our Marketing team took to the road and relaunched the company as Lancaster Mutual Insurance Company, introducing a new, redefined brand for the future with plans to expand distribution beyond Pennsylvania. 2010 - 2022We Keep Our Promises To be an uncommonly different insurance company, known for serving our employees, members, agents, and community with fairness and compassion. Working to Earn Your Trust Every Day Our mission is to provide comprehensive property and casualty insurance products of the highest quality and to conduct our business by biblical principles of love, justice and integrity. PAGE 01 OUR GUIDING PRINCIPLES Provide an Exceptional Experience We know our members: We act with fairness, integrity, and compassion to provide comprehensive service to agents, members, and our community. We anticipate member needs and sustain a positive member-centric environment that supports a fair and timely resolution of all transactions. We leverage agent and member feedback to enhance operations. We make service a market differentiator. Attract, Retain, and Develop Exemplary Talent We value and care about our employees: We develop deep technical expertise, nurture positive interactions, align skills with responsibilities, while empowering leaders who support strategies that ensure “right people - right roles - right time.” We invest in our employees to create satisfying careers within the company. Maintain Financial Stability We are fiscally responsible: We create consistent stakeholder value and maintain capital at or above target levels required to sustain appropriate ratings. We invest wisely in the business to ensure adequate return on surplus while optimizing product mix, coverages, and superior customer service levels that support the attraction and retention of profitable business. Align Products and Services with Member Expectations We exist to serve our members: We identify and develop competitive products that satisfy members’ current and prospective needs. We create a competitive advantage by successfully leveraging data, management information, and technology to drive innovative business decisions. Create and Sustain a Dynamic Workplace We value and invest in our workplace culture: We maximize our organization’s effectiveness by leveraging the unique talents of each team member. We create an atmosphere for constructive problem solving and encourage risk taking. We respectfully hold each other accountable. Exhibit Operational Excellence We prioritize operational effectiveness: We maintain a forward-looking, continuous improvement mindset driving consistent and efficient workflows and processes across all lines, functions, and operations. We look for ways to test change, vary methodologies, and otherwise learn and adapt to ensure all activities align with the current and prospective needs of our members, agents and business partners. Technology Supports Our Mission We value and adapt with technology: We utilize technology across all lines to streamline workflows and business processes, while enabling effective interactions with members and agents. We capture critical business information needed to enable effective data driven business decisions. MISSIONVISIONPAGE 02 GOODVILLE MUTUAL INSURANCE GROUP Supporting local community resources with the help of local independent agents describes our Charity of Choice campaign. The goal is to get funding to the communities in which our members live and our agents serve. Born out of our Safe@Home initiative during the pandemic, 2022 was our second year of Charity of Choice with more funding allocated and additional agents involved, including the first year for Lancaster Mutual agents! Charity of Choice increases awareness and supports community resources vital to all of us. Many thanks to our participating agents who direct funds to the organizations providing services critical to our communities. 43 Agents connecting with their Charity of ChoicePAGE 03 Charities helped across 5 states: Delaware, Kansas, Ohio, Pennsylvania and Virginia Total of $43,000 donated to essential community resources Food Pantries, Retreat Centers, Family Support Centers, Ministry Services, Worship Centers, Homeless Shelters, Women’s Centers, Outreach Programs, Refuge Ministries, Public Libraries.PENNSYLVANIA 81 OHIO 53 INDIANA 26 ILLINOIS 16 KANSAS 20 OKLAHOMA 5 VIRGINIA 32 DELAWARE 6 PAGE 04 GOODVILLE MUTUAL INSURANCE GROUP Indiana Short Associates, Inc. Indiana Capitol Insurance Indiana Countryside Insurance Agency, Inc. Indiana Hostetler & Young Ins Virginia Don Hodson Insurance Associates, Inc. Virginia Brian Noegel’s Blue Ridge Insurance Services, Inc. Virginia Hanckel Citizens Insurance Corporation Ohio Heydinger Insurance Group, Inc. Ohio Suracy Insurance Agency, Inc. Pennsylvania Hawk Insurance Agency LLC Pennsylvania Exchange Underwriters, Inc. Kansas Tri-County Insurance, LLC NEW AGENCIES ADDED IN 2022 Headquarters Regional Office New Holland, Pennsylvania Napoleon, Ohio Direct Written Premium by State for 2022 Delaware $6,690,375 Illinois $6,725,409 Indiana $7,880,817 Kansas $21,305,701 Ohio $40,814,333 Oklahoma $10,972,208 Pennsylvania $103,858,209 Virginia $18,422,070 NUMBER OF GOODVILLE AGENCIES BY STATEPAGE 05 Re-birth of a Lancaster County Mutual Company Following the affiliation with Reamstown Mutual Insurance Company in 2019, our team went to work on products, pricing, and profitability while maintaining the history and traditions of a local company founded in 1895. Reamstown was established as a local insurance company to protect neighbors’ homes and businesses that established insurance companies could not or would not insure. History tells stories of the company officers paying customers’ claims with their personal savings, waiting to recover their costs from the annual assessment levied upon policyholders. Today, we continue the tradition of writing harder-to-place risks (but not paying claims from the officers’ pockets ������ ) with this newly branded company. On April 5, 2022, we revealed the new company name and brand for Lancaster Mutual Insurance Company! An all-out marketing blitz followed the big reveal with in-person visits to existing Lancaster Mutual agencies in Pennsylvania. Armed with a “swag bag” and underwriting appetite guides the mission was to highlight the advantages of the new company’s affiliation with the Goodville group of companies, new product offerings, and the future direction of Lancaster Mutual. With three consecutive years of profitability and 23 newly appointed agencies in 2022, we’re prepared to grow Lancaster Mutual in Pennsylvania, with expansion plans for other states within the Goodville footprint. With a new name and identity, and the tradition of helping neighbors and local businesses insure their properties, Lancaster Mutual offers agents substantial breadth in the marketplace along with the support and stability of the association with the Goodville Mutual Insurance Group. New Lancaster Mutual Agencies in 2022 Annie W Metzler Insurance Agency, Inc. Quarryville B. Titus Rutt Agency, Inc. Mount Joy Balsbaugh Insurance Agency, Inc. Schaefferstown C. McMath Insurance Group, Inc. Orbisonia Central Insurers Group Inc Lewistown Cocoa Associates, Ltd Hershey Colonial Park Realty Co Harrisburg ECBM, LP Quarryville Gilmartin Insurance Agency LLC Scranton Montgomery & Weigle Insurance, Inc. Gettysburg Murray Insurance Associates, Inc. Lancaster Pepper Insurance and Fin. Services, LLC Pennsdale Philip Baker Insurance Services, Inc. Blandon Purdy Insurance Agency, Inc. Sunbury Runkle Agency, LLC Mifflinburg Rupert Insurance LLC Lewistown S C Miller Agency, LLC Meadville SW Troutman Enterprises, Inc. Millersburg Mosholder Insurance Agency Somerset The Warren A Gingrich Agency, Inc. Altoona Univest Insurance, LLC Intercourse Weaver Insurance Group, Inc. Mount Joy Westmor Insurance, LLC ScottdaleThe 2022 Partnership Council was held at the Boar’s Head Resort, situated in the foothills of the Blue Ridge Mountains outside of Charlottesville, Virginia. Twenty agencies were represented, with a mix of new and returning agents and their spouses/guests. The venue was perfect for renewing long-term relationships and getting to know those new to the event. This year’s agenda looked different from recent years, with afternoon excursions and an agent-focused education session on the final morning. The main business session on Monday morning offered updates on the Goodville Personal Auto product, a demo of the new Claims system, including the agent portal, and ending with a popular feature, the Agent Forum. The Forum is a chance for agents to have small group discussions with Goodville leaders discussing product development and commercial appetite, concluding the morning with a Q&A session with David Gautsche, President/CEO. Tuesday, the group split in two. The first visited the Insurance Institute of Highway Safety (IIHS) facility to understand their meaningful work, which supports and improves vehicle and road safety, including a live crash test! The second group visited the historical Monticello, the home of Thomas Jefferson from 1770 until he died in 1826. This group experienced the beauty of this site, originally built as a plantation, and the impact of its owner, author of the Declaration of Independence and third President of the United States. The group came together to celebrate the GALA Awards on Tuesday evening, along with the awards presentation and special agent recognition. An agent education session was the main topic for the final morning, an informative session from industry experts David Tralka and Scott Freiday from Insurbanc. The topic, “Getting Your Financial House in Order,” was an informative session designed to help agents prepare their agency for growth and/or best position for perpetuation, or a successful exit by understanding the market and drivers of agency value. PARTNERSHIP COUNCIL GALA AWARD WINNERS Rodney Lehman Lehman Insurance Agency, Inc. – PA Most New Commercial Lines Policies Most New Personal Lines Policies Matt Bernier ECBM - Weaver Insurance Associates – PA Most New Farmowners Policies Sandra Haynes Blough Insurance Agency, LLC – PA Largest Premium Growth <$1.5M Joe Gast Avery W Hall Insurance Agency, Inc. – DE Largest Premium Growth >$1.5M Jonathan Lindsay LD&B Insurance & Financial Services – VA Lowest 5 Year Uncapped Loss Ratio Jim McMichael Franconia Insurance & Financial Services – PA Longest Continuous Period of Partnership Status Earned PAGE 06 GOODVILLE MUTUAL INSURANCE GROUPEmployee Milestone Anniversaries 45 40 35 25 20 15 10 5 Employee Retirements YEARS 45 Years Donna Townsend – Casualty Claims Manager - May 18 Kathy Good – Vice President Product Development - Jun 1 40 Years Keith Martin – Financial Systems Analyst - Aug 19 35 Years Mark Troyer – Senior Commercial Lines Underwriter - Aug 17 25 Years Jim Martin – Senior Personal Lines UW and Marketing UW Rep - Jan 24 20 Years Phil Shirk – Chief Financial Officer - Feb 11 Susan Brendle – Personal Auto Underwriting Processor Group Leader - Oct 25 15 Years Rodney Eberly – Lead Software Developer - Jun 13 Kylene Martin – Commercial Lines Underwriter - Oct 15 Jackie Diem – Accounts Receivable CSR Clerk - Dec 3 10 Years Barb Beining – Commercial Lines Underwriting Supervisor - Feb 13 Heather Witmer – Farm Underwriter/Processor - Apr 2 Andy Rader – Senior Claims Representative II - Jul 13 Tracy Stark – Claims Representative III - Sep 24 5 Years Sheila McEvoy – Subrogation Specialist - Jan 16 Eric Stapler – Director of Innovation & Business Processes - Apr 10 Joetta Zumfelde – Business Analyst - May 23 Mark Brier – Software Development Manager - June 15 Lisa Hertz – Claims Representative II - Aug 14 Brooke Ciervo – Personal Lines Underwriter - Oct 30 Amanda Meyer – Claims Representative II - Nov 6 Jeff Kennedy Field Marketing Representative, Ohio 16 years - March 31st Barb Dessen Office Specialist – Mailing 45 years - April 1st Deb Damman Personal Lines Underwriting Processor I 18 years - August 5th PAGE 07Next >