Atlantic Mutual Insurance Company
Encyclopedia
The Atlantic Mutual Insurance Company is a mutual
insurance
company which offers personal, marine
, commercial property, and casualty insurance
. It is part of the Atlantic Mutual Companies, which includes Centennial Insurance Company. Its corporate headquarters are at 140 Broadway
, a block from the site of the former World Trade Center
.
in 1842. Its first chairman was Walter Restored Jones, a member of a prominent upper-class family of attorneys in New York City. The Jones family ran the company for decades.
By the 1850s, Atlantic Mutual was the largest marine and general insurance firm in North America and the only marine insurance firm in New York state. During the 1850s, it made exceedingly high profits. In 1852, the company began keeping a clipping service of newspaper accounts of shipwrecks and sinkings known as Vessel Disasters, a work which became famous as the best source of information on maritime disasters in the North Atlantic. During the Civil War
, Atlantic Mutual was the primary insurer of most Union shipping.
In 1874, Atlantic Mutual President John Divine Jones provided the money which established the permanent foundation of the New York Historical Society.
Atlantic Mutual built the existing building at 45 Wall Street in 1959, which served as the company's headquarters until the mid-1970s. Vacant and deteriorating for more than 20 years, it was sold in 1996 and converted to apartments.
Atlantic Mutual was involved in a significant tax law case which reached the U.S. Supreme Court
in the 1990s. The Tax Reform Act of 1986
altered the formula under which insurance companies could deduct additions to their financial reserves. The Internal Revenue Service
(IRS) determined that Atlantic Mutual had strengthened its reserves, but the company countered that it had merely engaged in a computational change. In a unanimous decision, the Supreme Court upheld the IRS' interpretation of the law.
After the construction of the World Trade Center, Atlantic Mutual moved its headquarters from 45 Wall Street to 140 Broadway. The company was one of many which insured buildings in and around the World Trade Center, and the firm suffered significant losses after the September 11 terrorist attacks. Since Atlantic Mutual is more than 100 years old, the company is a member of The Hundred Year Association of New York
.
In 2010, New York state insurance regulators revoked Atlantic Mutual’s insurance licenses because it had a negative surplus. On April 27, 2011 Atlantic Mutual was placed into liquidation after the company was swamped with workers' compensation
insurance claims.
Mutual
Mutual may refer to:*Mutual organization, where customers derive a right to profits and votes*Mutual information, the intersection of multiple information sets*Mutual insurance, where policyholders have certain "ownership" rights in the organization...
insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
company which offers personal, marine
Marine insurance
Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination....
, commercial property, and casualty insurance
Casualty insurance
Casualty insurance, often equated to liability insurance, is used to describe an area of insurance not directly concerned with life insurance, health insurance, or property insurance. It is mainly used to describe the liability coverage of an individual or organization's for negligent acts or...
. It is part of the Atlantic Mutual Companies, which includes Centennial Insurance Company. Its corporate headquarters are at 140 Broadway
Broadway (New York City)
Broadway is a prominent avenue in New York City, United States, which runs through the full length of the borough of Manhattan and continues northward through the Bronx borough before terminating in Westchester County, New York. It is the oldest north–south main thoroughfare in the city, dating to...
, a block from the site of the former World Trade Center
World Trade Center
The original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
.
History
The company was founded in 1838 as the Atlantic Insurance Company. Originally a joint-stock company, it became a mutual companyMutual organization
A mutual, mutual organization, or mutual society is an organization based on the principle of mutuality. Unlike a true cooperative, members usually do not contribute to the capital of the company by direct investment, but derive their right to profits and votes through their customer relationship...
in 1842. Its first chairman was Walter Restored Jones, a member of a prominent upper-class family of attorneys in New York City. The Jones family ran the company for decades.
By the 1850s, Atlantic Mutual was the largest marine and general insurance firm in North America and the only marine insurance firm in New York state. During the 1850s, it made exceedingly high profits. In 1852, the company began keeping a clipping service of newspaper accounts of shipwrecks and sinkings known as Vessel Disasters, a work which became famous as the best source of information on maritime disasters in the North Atlantic. During the Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
, Atlantic Mutual was the primary insurer of most Union shipping.
In 1874, Atlantic Mutual President John Divine Jones provided the money which established the permanent foundation of the New York Historical Society.
Atlantic Mutual built the existing building at 45 Wall Street in 1959, which served as the company's headquarters until the mid-1970s. Vacant and deteriorating for more than 20 years, it was sold in 1996 and converted to apartments.
Atlantic Mutual was involved in a significant tax law case which reached the U.S. Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
in the 1990s. The Tax Reform Act of 1986
Tax Reform Act of 1986
The U.S. Congress passed the Tax Reform Act of 1986 to simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences...
altered the formula under which insurance companies could deduct additions to their financial reserves. The Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
(IRS) determined that Atlantic Mutual had strengthened its reserves, but the company countered that it had merely engaged in a computational change. In a unanimous decision, the Supreme Court upheld the IRS' interpretation of the law.
After the construction of the World Trade Center, Atlantic Mutual moved its headquarters from 45 Wall Street to 140 Broadway. The company was one of many which insured buildings in and around the World Trade Center, and the firm suffered significant losses after the September 11 terrorist attacks. Since Atlantic Mutual is more than 100 years old, the company is a member of The Hundred Year Association of New York
The Hundred Year Association of New York
The Hundred Year Association of New York, founded in 1927, is a non-profit organization in New York City aimed at recognizing and rewarding dedication and service to the City of New York by businesses and organizations that have been in operation in the city for a century or more and by individuals...
.
In 2010, New York state insurance regulators revoked Atlantic Mutual’s insurance licenses because it had a negative surplus. On April 27, 2011 Atlantic Mutual was placed into liquidation after the company was swamped with workers' compensation
Workers' compensation
Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence...
insurance claims.
Famous shipwrecks insured by Atlantic Mutual
As the largest marine insurance firm in the United States for many years, Atlantic Mutual became involved in some of the most famous shipwrecks in American history.- SS Central AmericaSS Central AmericaSS Central America, sometimes called the Ship of Gold, was a 280-foot sidewheel steamer that operated between Central America and the eastern coast of the United States during the 1850s. She was originally named the SS George Law, after Mr. George Law of New York...
- The company insured the SS Central America, a sidwheel steamship laden with gold which sank in a hurricane in September 1857. When the wreck was rediscovered by the Columbus-American Discovery Group, Inc. on September 11, 1987, Atlantic Mutual and 38 other insurance companies filed suitLawsuitA lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
against the treasure-hunting firm, claiming that because they paid damages for the lost gold they had the right to it. In a precedent-setting court case on telepossessionTelepossessionTelepossession is a relatively new legal concept. Maritime salvage in the case of the SS Central America is where the term gained importance. In the case of the SS Central America, the Columbus-American Discovery Group Inc. won over the insurer, Atlantic Mutual Insurance Company...
, the 4th Circuit Court of AppealsUnited States Court of Appeals for the Fourth CircuitThe United States Court of Appeals for the Fourth Circuit is a federal court located in Richmond, Virginia, with appellate jurisdiction over the district courts in the following districts:*District of Maryland*Eastern District of North Carolina...
ruled against Atlantic Mutual and the other insurance companies and awarded 92 percent of the gold to the Columbus-American Group.
- Mary CelesteMary CelesteThe Mary Celeste was an American brigantine merchant ship famous for having been discovered on 4 December 1872, in the Atlantic Ocean unmanned and apparently abandoned , despite the fact that the weather was fine and her crew had been experienced and able...
- Atlantic Mutual was also one of the insurers of the Mary Celeste, an American brigantineBrigantineIn sailing, a brigantine or hermaphrodite brig is a vessel with two masts, only the forward of which is square rigged.-Origins of the term:...
sailing out of Staten IslandStaten IslandStaten Island is a borough of New York City, New York, United States, located in the southwest part of the city. Staten Island is separated from New Jersey by the Arthur Kill and the Kill Van Kull, and from the rest of New York by New York Bay...
, New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
. In December 1872, a month after leaving Staten Island for ItalyItalyItaly , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, the ship was seen adrift and without her crew and no explanation for the "ghost ship" has ever successfully explained why the ship was abandoned. Atlantic Mutual established a small museum dedicated to the mystery of the Mary Celeste at its corporate headquarters, which included a model of the ship and the captain's lap deskLap desk-Antique lap desk:As an antique the lap desk is a smaller variant of the writing slope. It is also called a writing box or a writing cabinet. In certain instances it is known as a portable desk, a term which is usually applied to larger forms. Most antique lap desks are really meant to be used on...
.
- RMS Titanic - The Atlantic Mutual Insurance Company also helped to insure the RMS Titanic. The ship was insured for $140,000, of which $100,000 was held by Atlantic Mutual. The largest passenger steamship in the world at the time, the Titanic struck an icebergIcebergAn iceberg is a large piece of ice from freshwater that has broken off from a snow-formed glacier or ice shelf and is floating in open water. It may subsequently become frozen into pack ice...
on the night of April 14, 1912, during her maiden voyage and sank with more than 1,500 people still aboard two hours and forty minutes later.
Notable presidents, chairman and directors of the Atlantic Mutual
The Atlantic Mutual Insurance Co. has been led by a number of prominent New Yorkers as well as leading American business people. Among them are:- E. Virgil ConwayE. Virgil ConwayE. Virgil Conway is an American attorney, banker, philanthropist and civic leader who served as chairman and CEO of the New York State Metropolitan Transportation Authority from 1995 to 2001. The MTA is the umbrella organization for the various agencies that operate the public transportation...
- Cleveland E. Dodge, Jr.Cleveland E. Dodge, Jr.Cleveland E. Dodge, Jr. was an industrialist and businessman, and a pioneer of manufacturing temperature-resistant wire coatings using Teflon in the 1950s. He founded Dodge Fibers Corporation in 1955 to manufacture Teflon-coated fabrics...
- William E. Dodge, Jr.William E. Dodge, Jr.William Earl Dodge, Jr. was an American businessperson and philanthropist. For many years, he was one of two controlling partners in the Phelps Dodge Corporation, one of the largest copper mining corporations in the United States.-Early life:William Earl Dodge, Jr. was born in New York City on...
- Eugene R. McGrathEugene R. McGrathEugene R. McGrath in Yonkers, New York is an American businessman with extensive experience in engineering, operations, and executive management in the utility industry...
For further reading
- Cosgrove, John. Gray Days and Gold: A Character Sketch of the Atlantic Mutual Insurance Co. New York: Atlantic Mutual Companies, 1967.