Dear Agents,

This past year was a year of change from beginning to end. The beginning of 2011 brought with it a continuation of softer pricing and more entrants into the risk transfer equation. By the end of the year, we began to see more responsible pricing and more interest by the historic carriers used to insuring difficult risks and offering risk transfer solutions with more responsibility. S.H. Smith & Company, Inc. is proud to record another year of growth in 2011. We could not have done this without the understanding and assistance of our partners, you, the independent agents. We continue to appreciate your recognition of our value added to the insurance solutions that we are constantly trying to provide to you and your clients.

2012 represents the 30th year in business for S.H. Smith & Company, Inc. It has been 30 gratifying and exciting years. I can hardly believe that it was 30 years ago that we began our independent wholesale life. It has been a very rewarding and satisfying run. Insurance has been a great industry to me and my family and my staff. It is still the embodiment of the American dream where honesty and hard work has paid off in more ways than I can describe. It has allowed a small group of people to experience ingenuity in its solutions and allowed us to develop great and strong relationships at the same time. I'm pleased and proud to say that some of the relationships I cherish the most I've had for these entire 30 years.. We start our 30th year with at least as much enthusiasm as we did in 1982. We will continue to add new partners to the process as well as new people at S.H. Smith & Company who bring new and exciting ideas to the world of individual risk solutions as well as portfolio and product solutions.

From all of us at S.H. Smith & Company, Inc.: a sincere thank you to our partners, whom have contributed to our success and we look forward to another 30 years of developing new relationships and satisfying solutions to your insurance needs.

Yours very truly,


Scott H. Smith
President

OFFICES: CONNECTICUT, MARYLAND, MASSACHUSETTS, MINNESOTA, NEW YORK, NEW JERSEY, OHIO, RHODE ISLAND