Stability: Our History
Chartered by the General Assembly
under the laws of Rhode Island and Providence Plantations on October 27, 1800,
The Providence Mutual Fire Insurance Company was founded by more than one
hundred concerned private citizens of Providence as the "Fire Society." The
founding fathers, many of whom are immortalized in early history books and on
Providence's street signs today, joined together to establish New England's
first fire insurance company "for our own mutual security, for the common
security and advantage of our neighbors and fellow citizens, and with a view to
promote the insurance of houses and other property, from loss by fire, upon the
most equal terms, and without any view of private or separate gain or interest.
. . It is therefore of the greatest importance to the happiness and security of
private families that their property may be insured against fire."The Providence was modeled on the same principles as those of the earliest colonial insurance companies, the very first established in Charles Town, (Charleston,) South Carolina in 1732, and in 1752 in Philadelphia. A "Friendly Society," The Providence was founded on the mutual principle-"whereby every man might help another without any disservice to himself"-so eloquently stated by Benjamin Franklin on the founding of the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire.
The company was originally founded to
insure homes and manufacturing concerns in Providence against the ravages of
fire-all within a ten-mile radius of what was then a village of seven to eight
thousand people. During its earliest years, The Providence insured a number of
New England's most outstanding landmarks, including the steeple of the First
Baptist Church of America, homes on Benefit Street in Providence-later the
birthplace of the Preservation Movement in the United States-and Slater Mill,
birthplace of America's Industrial Revolution.By 1808, "gentlemen" in East Greenwich and in Bristol, Rhode Island, were appointed as agents to transact business, establishing The Providence's long-standing tradition of writing business exclusively through professional agents. By 1809, business had also expanded to New Bedford and Nantucket, Massachusetts. A committee was formally appointed in
1881 to consider the advisability of
"insuring in cities having a good water supply outside the limits of the
State." As a result, that committee recommended that The Providence
continue to expand its business in Massachusetts and Connecticut.
However, it was not until January, 1893, that a vote was passed authorizing the
officers of the company to "apply for the admission of this company to any
state in which they may deem it desirable for its best interests to
enter." Throughout the last decade of the 19th century and the
early decades of the 20th century, business expansion continued
throughout New England, New York and New Jersey.
It was also during its early years
that The Providence established a number of principles to which the company has
adhered over the centuries:
- A conservative basis of underwriting selected risks;
- The tradition of writing policies through loyal, professional independent agents;
-
The tradition of meeting every proven loss in full;
- The payment of dividends to policy- holders;
- The importance of the creation and maintenance of a surplus to safeguard the financial security of its policy holders;
- Support and appreciation for Volunteer Fire Companies' efforts to safeguard life and property.
The Providence has continued to grow in strength and prosper while adhering to these principles. In addition, strategic mergers and affiliations have enhanced the company's strength. In 1965, the Mutual Fire Assurance Company of Springfield, Massachusetts, was merged into The Providence. In 1986, an additional property/casualty company, The Providence Plantations Insurance Company, was formed as a wholly owned subsidiary of The Providence, and commenced business activities in May 1988. In July 1994, Grange Mutual Insurance Company of New
Hampshire became an affiliate of The
Providence and was merged into The Providence Mutual Group in 2002.
Today, The Providence Mutual Group-including The Providence Mutual Fire
Insurance Company and The Providence Plantations Insurance
Company-provides personal and commercial protection, written exclusively
through more than 300 professional, independent agents to more than 75,000
policyholders in New England, New York and New Jersey.In the year 2000, The Providence, New England's first property insurance company, proudly celebrated its bicentennial anniversary. The Providence is one of only five property insurance companies in the country to achieve this milestone. Steeped in the traditions of the past and committed to meeting the challenges of the future, The Providence remains true to its mission-continuing to insure the stately residences on historic Benefit Street in Providence, while safeguarding the financial security of all its policyholders, residential and commercial, regionwide.
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