The growth of the company can be attributed to many reasons. The most notable reasons for growth would be the company's appointment of independent agents to represent the company; expanded coverages provided to policyholders; the introduction of reinsurance for the purpose of increasing the company's capacity to write larger accounts; mergers; and technology.

The growth of our independent agency force throughout New York State has increased steadily to provide the company's insurance coverages to individuals and businesses outside the original geographical area. Although most of the business of the company is in the western and central parts of the state, our presence in eastern New York State continues to expand. Currently our agent appointments number approximately 255, with some of those agents having multiple locations to further increase the company's penetration throughout the state. The company today remains a niche company used by independent agents to place insurance not readily available through larger companies in rural upstate New York.

As an assessment co-operative company, the company is limited by law as to the kinds of insurance it can write. From the original fire and lightning policy coverages, the company expanded coverages to include many perils needed by policyholders today. The major lines of insurance the company writes today are fire, homeowners, farmowners, commercial packages, mobile homeowners and landlords. The company writes liability insurance associated with these coverages, but cannot write other coverages such as life, disability, health, auto, umbrellas or workers compensation.

The introduction of reinsurance, an insurance company's insurance company, allowed Erie and Niagara to write more business while passing along some of the risk to the reinsurer. Reinsurance is a flexible contractual arrangement between the company and the reinsurer that allows the company to develop a program to fit its individual loss experience and financial needs. This arrangement helps stabilize earnings from year to year.

Three mergers in the company's history have also contributed to our growth. Ashford Mutual Insurance Association in Delevan with 1,000 policyholders joined Erie and Niagara on November 1, 1958. Amherst Clarence Insurance Association joined Erie and Niagara on January 1, 1982. One year later on January 1, 1983, Cattaraugus Allegany was the last to join Erie and Niagara. Today, our policyholder count exceeds 70,000. Although not merging with Erie and Niagara, Cherry Valley Cooperative Insurance Company affiliated itself on July 1, 1990 with Erie and Niagara. Cherry Valley is an advance premium cooperative. Cherry Valley writes similar coverages but because of its corporate structure writes personal and farm umbrellas.

Throughout the company's history, the company grew from county to county. It was not until 1982 the company was licensed to write in all of New York State except in the boroughs of Bronx, Kings, Nassau, New York, and Queens. The growth of Erie and Niagara has really taken place in the last 14 years. Whereas it took 120 years for the surplus level to reach $16,000,000, the last 14 years has seen the surplus more than quadruple to $70,000,000. Direct premium likewise has grown in the last 14 years from $16,500,000 to approximately $51,000,000. Assets of Erie and Niagara were $118,500,000 at year-end 2009.

Erie and Niagara prides itself in keeping abreast with technological advances and pursues the use of technology to service its policyholders utilizing low cost methods. All functions of the company are performed at this home office.

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