Here Today

In the late 1970’s, the North Carolina Bar Association was faced with the realization that the lawyers professional liability insurance market was unstable, that premium costs would continue to rise, and that the commercial insurance market for lawyers professional liability insurance was dominated by a handful of companies having no commitment to the legal profession. In January 1977, the Chairman of the North Carolina Bar Association's Insurance Committee and its Executive Director met with members of the North Carolina Insurance Commission to discuss the feasibility of organizing a mutual liability insurance company, the first such company for lawyers in the country.

The support of the Association's members was overwhelming. The Association's members, attending its annual meeting in Asheville, approved the formation of a lawyer-owned insurance company on June 15, 1977. Lawyers Mutual was chartered in September of 1977. During the next three months, lawyers were asked to invest in this new venture dedicated to ensuring that North Carolina lawyers would always have a place to turn for protection. Most of the initial investors put up $1,000 each, some using their credit cards. Company licenses were granted in March of 1978, and policies issued in May. The principal reason in making the company a mutual insurance company was to eventually place equity in the hands of the attorney-policyholders rather than in the hands of stockholders who may or may not hold policies. The Company’s financial strength grew very slowly at first, but a long period of excellent underwriting results and strong investment returns allowed the Company’s surplus to grow. Now Lawyers Mutual has a strong capital base and is well prepared to serve our policyholders through the current storm. Lawyers Mutual is the only carrier that has continuously provided coverage to the members of the North Carolina Bar.

Here Tomorrow

Back in 2000 in the midst of a boom, our Annual Report boasted of exceptional financial results, but soberly noted that cycles will inevitably change and we intend to be ready. So they did in 2009, as high claims and below par investment returns led to disappointing financial results. Our overall net loss was the first in more than 25 years and investment losses reduced our surplus. Nevertheless, our capital ratios remain exceptional and our conservative philosophy of stewardship will continue, whether or not such a philosophy is currently in style. What began as a vision has now endured for over 30 years - a professional liability insurance company owned and controlled by the lawyers of North Carolina.