Atlantic Mutual Reduces Deductibles By 10% Each Year for Home, Auto Customers

NEW YORK, NY, July 21, 2004 -- Atlantic Mutual Insurance Co. today announced that it will reduce home and auto insurance policy deductibles by 10% for many customers each year they are claim-free — providing long-term savings.

"So many of our customers take good care of their homes and cars, and this innovative feature rewards them for being good personal risk managers," noted Dan Olmsted, the company's president.

Atlantic Mutual homeowners policyholders with a $2,500 deductible or more receive a 10% credit in their "deductible reserve" for every year they are loss-free. Auto insurance policyholders with a $1,000 deductible or more also qualify for the 10% credit.

When customers do have a claim, the amount they have built up in their "deductible reserve" effectively reduces the out-of-pocket deductible they must pay.

Here is an example of how the feature works:

  • An Atlantic Mutual homeowners insurance customer chooses a $2,500 deductible for his/her $750,000 home. (The policy premium is $470 less than if the customer chooses a $500 deductible, generating immediate savings.)
  • Each year the customer is claim-free, 10% of the deductible amount is credited to his/her "deductible reserve" — in effect, reducing the deductible by $250 each year.
  • Suppose the customer made a claim in the 5th year. The “reserve” (growing by $250 each year for 4 years) would reduce the deductible from the initial amount of $2,500 to $1,500. After 10 claim-free years, the deductible would be $0.

Since insurance industry statistics show that homeowners, on average, file a claim on a covered loss only once every 11 years, there is a good chance that their deductible will be practically eliminated.

The 10% deductible reserve is available in most states where Atlantic Mutual operates except New York. Consumers can contact any Atlantic Mutual agent for information. A list of agents by state & city is available at www.atlanticmutual.com.

About The Atlantic Companies

The Atlantic Companies, also known as Atlantic Mutual, is a group of diversified financial services companies with a Wall Street heritage dating back to 1842. The group is widely known for the Atlantic Master Plan insurance program, which is designed specifically for affluent individuals and sold through a select group of independent agents. The Atlantic Companies acts as a property-casualty insurer, manages claims for commercial insurance, and helps other business partners target profitable niches in the insurance marketplace. Additional information about The Atlantic Companies and the Atlantic Master Plan can be found at www.atlanticmasterplan.com.


Contact: Peter G. Scott
Corporate Marketing & Communications
973-408-6044