Both Insurers Were Founded in Massachusetts in the 1800s
Two of the Commonwealth’s oldest insurers announced a new Strategic Collaboration Agreement to create “…a pathway to innovation, security, and stability.” Effective as of January 1st of this year, the new agreement will allow the companies to pursue mutual benefits, while remaining separate and operating independently of each other. The formal Agreement will help the insurers sustain this shared mission.
New Agreement Will Sustain and Strengthen Shared Mission
As Doug Briggs, Executive Chairman of Quincy Mutual explained, he has “known and respected the leadership team at Barnstable for many years.” Echoing his comments, John DeMello, CEO of The Barnstable noted that he is “excited to explore ways our companies can work together for the good of all our stakeholders.”
To this end, Quincy Mutual has agreed to help enhance The Barnstable by injecting additional capital into the company’s already strong balance sheet via a surplus note. This infusion of capital, along with other operational support, will provide The Barnstable with an opportunity to diversify and innovate. Similarly, it also will aid the insurer’s return on capital as well as in managing risk more cost effectively.
In addition to the infusion of capital, Quincy Mutual’s size will provide The Barnstable with ‘economies of scale’, allowing it to access and enjoy the benefits of a larger organization, while helping the insurer to grow its geographic footprint and diversify its product offerings. Each company will benefit from added management depth and the collaboration of leadership with decades of demonstrable success.
Over 365 Years of Combined History in the Massachusetts insurance industry
The founding of each company during the mid-1800’s underscores the companies’ cultural alignment and shared vision with The Barnstable founded in 1833 and Quincy Mutual in 1851. Looking ahead the insurers believe the new Strategic Collaboration Agreement will serve as a foundation to build a lasting association between these companies with deep ties to their insureds, agents, and employees.
“Our vision,” emphasized DeMello, ” is that, ultimately, the two teams of employees, the Quincy Mutual team and The Barnstable team, will work as one team operating both businesses. This agreement is the first step in turning that vision into reality.”
