Atlantic Mutual Insurance Company

Atlantic Mutual Insurance Company

Formerly	Atlantic Insurance Company
Industry	mutual insurance company
Founded	1838
Headquarters	140 Broadway, New York
Area served	United States
Key people	Walter Restored Jones (first chairman, 1842) John Divine Jones (president, 1874) E. Virgil Conway Cleveland E. Dodge Jr. William E. Dodge Jr. Eugene R. McGrath
Services	personal insurance marine insurance commercial property insurance casualty insurance

The Atlantic Mutual Insurance Company operated as a mutual insurer providing coverage in personal, marine, commercial property, and casualty lines. It was part of the Atlantic Mutual Companies group, which included Centennial Insurance Company, with its main office located at 140 Broadway, in close proximity to the World Trade Center.

History

Established in 1838 under the name Atlantic Insurance Company, it shifted from a joint-stock structure to a mutual company by 1842. The firm’s inaugural chairman, Walter Restored Jones, hailed from a distinguished New York legal family that maintained leadership over many years.

By the mid-19th century, Atlantic Mutual had become the largest marine and general insurer across North America and stood as New York’s exclusive marine insurer, achieving considerable profitability. The company was well known for its Vessel Disasters clipping service, a premier resource for maritime incident information. During the Civil War era, it insured the majority of Union vessels.

In 1874, under President John Divine Jones, the company contributed funding to establish the New York Historical Society permanently. Subsequent leadership included prominent figures such as William H. H. Moore (1895–1897), Anton A. Raven (until 1915), Cornelius Eldert (1915–1930), Walter Wood Parsons (1930–1934), and William D. Winter (starting in 1934).

After World War II, J. Arthur Bogardus served as president before becoming chairman; he was succeeded by Franklin B. Tuttle and then Miles F. York, who retired as board chairman in 1969. In 1959, Atlantic Mutual erected its headquarters at 45 Wall Street, remaining there until relocating to 140 Broadway in the mid-1970s.

The company was involved in a significant tax dispute during the 1990s that reached the U.S. Supreme Court concerning reserve deductions under the Tax Reform Act of 1986; the Court ruled in favor of the IRS's position against Atlantic Mutual.

As an insurer of properties within the World Trade Center complex, Atlantic Mutual faced substantial financial losses following the September 11 attacks. Its longstanding presence earned it membership in The Hundred Year Association of New York.

Decline and liquidation

In 1995, Atlantic Mutual divested its data center located in Roanoke, Virginia to MFX Roanoke, Inc. By 2003, it had transferred renewal rights for its commercial overland Marine and Ocean Going Cargo segments to Travelers and sold its Specialty Lines business to OneBeacon Insurance. By 2004, operations were narrowed to concentrate exclusively on personal insurance lines aimed primarily at high net worth clients. Following a downgrade by A.M. Best in 2006, its high net worth personal lines division was sold to Ace Group in 2007.

In 2010, regulatory authorities in New York revoked Atlantic Mutual’s licenses and placed the company into rehabilitation due to negative capital status and a surplus deficit amounting to $25.1 million. On April 27, 2011, the Supreme Court of the State of New York, County of New York, declared both Atlantic Mutual and Centennial Insurance Company insolvent and ordered their liquidation after a rise in workers' compensation claims. James J. Wrynn, Superintendent of Insurance for New York State, was appointed as liquidator.

Famous shipwrecks insured by Atlantic Mutual

Atlantic Mutual, a prominent marine insurance provider in the United States, covered several historically significant shipwrecks:

• SS Central America - This sidewheel steamship, carrying a substantial gold cargo, was insured by Atlantic Mutual when it sank during a hurricane in September 1857. Following the shipwreck's rediscovery in 1987 by Columbus-American Discovery Group, Atlantic Mutual and other insurers initiated legal action over the ownership of the salvaged gold. Ultimately, they were unsuccessful due to a groundbreaking telepossession decision, which awarded 92% of the treasure to the recovery team.

• Mary Celeste - Atlantic Mutual was among the insurers for this American brigantine, famously found deserted and drifting in 1872. The company showcased a model of the vessel along with related artifacts at a museum located within its headquarters, highlighting the ship's enduring mystery.

• RMS Titanic - Holding $100,000 out of the total $140,000 insurance coverage for the Titanic, then the largest passenger steamship globally, Atlantic Mutual played a key role. The ship tragically sank after colliding with an iceberg on its maiden voyage in April 1912, leading to over 1,500 deaths.

Notable presidents, chairman and directors of the Atlantic Mutual

Atlantic Mutual Insurance Company was guided by distinguished executives and business figures from New York, including:

Presidents

• 1895–1897: William H. H. Moore
• 1897–1915: Anton A. Raven
• 1915–1930: Cornelius Eldert
• 1930–1934: Walter Wood Parsons
• 1934–1946: William D. Winter
• 1946–1951: J. Arthur Bogardus
• 1951–1953: Franklin B. Tuttle
• 1953–1966: Miles F. York
• 1966–1969: David A. Floreen
• 1970–1976: Harold A. Eckmann
• 1976–1985: John J. Mackowski
• 1985–1988: Edward K. Trowbridge
• 1988–1995: Kenneth J. Gorman
• 1995–1997: Klaus G. Dorfi
• 1997–2004: Kermit C. Smith
• 2004–2008: Daniel H. Olmsted

Directors

• E. Virgil Conway
• Cleveland E. Dodge Jr.
• William E. Dodge Jr.
• Eugene R. McGrath

Further reading

• Cosgrove, John. Gray Days and Gold: A Character Portrait of the Atlantic Mutual Insurance Company. New York: Atlantic Mutual Companies, 1967.