Capital Insurance Group – 2019 Annual Report

The Road Ahead – A Message from CIG’s President & CEO

CIG’s journey over the last 120+ years has been a remarkable one, with many twists, turns, peaks, and valleys along the way. But never before has the road ahead been as wide and as clear as it is now.

2019 was a transformative year, as CIG joined the Auto-Owners Insurance family. Transitioning from the role of a small, privately-held organization, CIG now has a broader horizon of opportunity. With over $12.4 billion in surplus, Auto-Owners has given us the strength and stability needed to make further strides towards being recognized as the premier independent agency carrier in the West. With no speed limit or detours in sight, the road ahead is paved with opportunity.

CIG’s mission to Protect and Restore defines the quality of our policyholder promise, the value of our agency commitment, and the investment we make in our local communities. We believe that our obligation goes far beyond writing a check, and requires continual improvements in our products and processes; this can be seen in the progress made in each of our core product lines:

Commercial Lines

In 2019, we completed the introduction of our Multivariate, By-Peril Businessowners platform in all our operating states. Developed in collaboration with
our Product, Technology, Actuarial, and Data & Analytics teams, this rating model allows us to surgically select and price in a manner that competitively reflects true, inherent exposures. This exciting introduction is just the beginning. On the road ahead, we intend to deliver sophisticated product and pricing refinements, along with intelligent platform enhancements, to improve the agent experience and straight-through processing capabilities.

Personal Lines

Our Multivariate Homeowners model is now in place in all our operating states, with introductions in Washington and Oregon taking place in 2019. Property concentrations remain at the top of the list for anyone doing business in the West. Fortunately for CIG, 90% of our operating territory is wide open for business and not impacted by property concentration management.

Agriculture Lines

2019 marked the highest growth year for our Agriculture Lines and remains in focus as our single largest growth opportunity. With a geographic focus in eastern Washington and Oregon, along with the Central Valley of California, our regional expertise in this segment is unmatched. Our underwriters live and work in these areas, and no one knows the needs of farmers in the West like we do.

CIG employees continued to make an impact in their communities in 2019, giving over 600 hours of their time through our company-sponsored Paid Volunteer Time (PVT) program. Through partnerships with local chapters of the American Red Cross and SafeKids International, we also hosted regular blood drives and a free car seat safety event, doing our small part in ensuring that our neighbors are protected and prepared.

I’ll conclude by recognizing the incredible group of employees I am privileged to work with each day. The natural disasters in the West over the last few years have been demanding, but, in the face of extraordinary challenges, every member of the CIG team has remained resolutely focused on the road ahead. With renewed strength and support, the rewards of this commitment will be evident to every employee, agent, and policyholder as we continue our journey together.


L. Arnold Chatterton, CPCU

President & Chief Executive Officer
Capital Insurance Group