Alliance Mutual Insurance Company
ALLIANCE MUTUAL INSURANCE COMPANY
1000 Revolution Mill, Studio 1
Greensboro, NC 27405
+1 (336) 855-6884
Alliance Mutual Insurance Company was founded in 1976 in North Carolina as a mutual insurance company, specializing in providing protection for farmowners, homeowners, commercial property, dwelling fire and liability, mainly to residents of North Carolina. The company has 20 employees, all based in North Carolina.
It is undeniable that the recent global financial crisis has adversely affected a lot of businesses all over the world. Alliance Mutual Insurance Company was not spared from such vulnerability to the changing and fluctuating markets. Due to the shifts in the global market, Alliance Mutual had to rethink their management strategy to maintain its operations.
The most significant paradigm shift was to diversify the company’s investments through reduction in non-privately held equity holdings. This move and other adjustments in investments were designed to cushion the blow of the dwindling economic situation of the United States and the plunge of equity markets.
Alliance Mutual Insurance Company’s management is determined to protect its clients from further blows from the fluctuating investment markets by closely monitoring fixed income markets to scout possible investment opportunities that will prove beneficial to the company’s financial standing.
Aside from the financial crisis that began in 2008, Alliance Mutual Insurance experienced more tumultuous times when the Alamance Farmers Mutual Insurance Company was converted to a statewide charter from a county farm mutual charter in October 2008. Because of the conversion, Alamance Farmers Mutual was now able to underwrite casualty hazards for its policyholders, which used to be protected by Alliance Mutual. This was a significant reduction in revenues from premiums and memberships.
To add insult to injury, eight out of nine mutual companies of the county farms shifted their casualty perils insurance to Alamance Mutual from Alliance Mutual Insurance Company. Despite these beatings, Alliance Mutual maintains its composure and is prepared to absorb the revenue losses from premium payments which could reach 16.7% of the total revenues as well as loss of about 60% of its members.
Alliance Mutual Insurance Company began its operations streamlining in November 2008 and continues to do so to ensure providing quality services at least cost to minimize operating expenditures and maximize revenue.
The company’s financial rating according to Demotech is A’ or “Unsurpassed Financial Stability”, which means that Alliance Mutual is well-positioned to provide quality service to its client base.
Part of its steps to further increase stability and infuse capital, Alliance Mutual forged an alliance with GMAC Insurance Companies for its personal automobile insurance ventures. In addition, it also signed an agreement with The Colonial Group in March 2009 to serve as the Group’s agent and take advantage of its automated systems to improve service delivery and response. The Colonial Group will market Alliance Mutual’s services through its network.
These business moves are expected to reduce non-commission operational expenses by about 10.8% by the end of 2010. This reduction in expenditures is part of the company’s bid to continue its growth over the next five years. The road towards expansion will not come smoothly, as stated by the company’s President in his 2009 message. But he assures clients that the company is resolved to overcome these stumbling blocks.