Remarkable as it may seem, SouthCarolina's oldest independent insurance agency, C.T. Lowndes &Co., is celebrating its 160th anniversary this year. Started in1850 by Charles T. Lowndes, the agency has survived the Civil War,Reconstruction, several fires in the 1800s, numerous hurricanes, amajor earthquake, two world wars, the Great Depression and therecession of 2008-2010. Despite the hardships and changes, C.T.Lowndes maintains ownership by the fifth generation of the Lowndesfamily, and has grown from one location in Charleston and fivestaff members to eight locations in South Carolina and about 90employees.

The agency began in an era of no electricity, telephones, indoorplumbing or fast transportation. Charles Lowndes used a quill penand inkwell to write policies, and if he needed a copy of theletter, he would have to write the letter again. The company stillhas a few policies from the 1860s, which provided for loss againstone peril–fire. Earthquake insurance was not available until 1916,and wind insurance came later. The policies were written on largepaper and folded with the policy conditions on one side.

Henry H. Lowndes Jr., current owner and CEO andgreat-great-great-great nephew of Charles Lowndes, remembers whenhe began working with his father and brother in the family businessafter serving as an officer aboard a destroyer for three yearsduring the Vietnam War.

“I remember the times when policies were typed in the officesand 5-year policies were common. This was back in the 1960s and1970s,” he said. “On larger commercial risks, my father may havewritten as many as seven or eight policies to provide the necessaryproperty insurance.”

Today, the agency is fully automated, even cautiously proceedingwith blogs and Twitter. “We try to keep up with the latesttechnology, and use all automation possible; downloads, uploads,online rating, etc. We have an IT staff of two,” Lowndes said.

C.T. Lowndes also provides its customer service representativeswith dual monitors for increased efficiency, and has created itsown processing center to minimize paperwork and allow CSRs to spendmore time with clients.

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Growing business

The agency is located on a hurricane-threatened coast, so thecompany concentrates on flood and wind coverage, along withearthquake insurance (the area experienced a major earthquake in1886). It also includes a small but growing life and healthbusiness.

The premium volume of the agency has reached $47.5 million fromits 60 percent personal lines business and 40 percent commerciallines business. Its main insurers include Safeco, Travelers,Progressive, Montgomery, Hartford, Zurich, CNA, Accidental Fund andmore.

Another aspect that helps C.T. Lowndes grow is its Charlestonlocation. The agency has witnessed many market changes over theyears that have not impacted the business. “We just go with theflow and move forward,” Lowndes said. “It is important to try toanticipate the market swings so we can be proactive and notreactive.”

C.T. Lowndes uses a philosophy to educate its clients abouttheir insurance policies, such as what is covered and why they needthe coverage, as a way to stay ahead of the insurance game.“Clients in this day and age want knowledge as well as insurancecoverage,” Lowndes said. “We try to provide that knowledge bytaking the extra time to discuss coverages and needs.”

To stay ahead of competitors, C.T. Lowndes represents the bestcompanies that are willing to do business along the coast. Itssize, permanence and reputation has allowed the agency to gaincontracts with most of the companies it is willing to do businesswith.

Related: Read “Prospering after devastation.”

It's a family thing

Charles Lowndes was a wealthy planter and merchant who served onthe board of directors of the Bank of Charleston, and was also oneof the nation's outstanding businessmen. The statements held truewhen he opened an insurance company at a time when Charleston was athriving sea port.

Through his direction, Lowndes saved the bank twice–once duringthe Economic Panic of 1857 and again after the Civil War. The Bankof Charleston was one of the few businesses that survived duringthe reckless fiscal policies between 1865 and 1872.

After Charles' death in 1884, the agency was passed down to hisonly surviving son, Rawlins.

During Rawlins' reign, the Great Earthquake of 1886 struckCharleston and leveled a large portion of the city. Insurancepolicies at the time did not cover earthquakes. The agency survivedthe disaster and earthquake insurance became available in 1916,prompted by the 1906 earthquake that hit San Francisco.

Another major hurricane struck the city in 1911 and floodedCharleston. World War I would soon start and end but the agencycontinued its operations, even after Rawlins' death in 1919.

Charles Mullally, Rawlins' grandson, took over the agency afterserving as a naval officer in the First World War. The agency wasincorporated in 1928 with Mullally and Hassell Rivers asstockholders.

The newly invented automobile was becoming more and morepopular, and the agency began offering automobile insurance. Whenthe Great Depression swept through the country in the 1930s, C.T.Lowndes adapted to these changes and managed to remain inbusiness.

In 1931, Mullally's fifth cousin, Henry Horlbeck Lowndes, becamea stockholder and part of the family business.

Mullally, Lowndes and Rivers insured many of the plantations inCharleston. In 1951, after another world war, Mullally agreed tosell the agency to Lowndes.

In the early 1950s, the homeowners' insurance policy wasintroduced and the special multi-peril policy was developed tocombine commercial lines policies. Lowndes and Rivers ran theagency, along with C. Harrington Bissell. Rivers soon retired andLowndes' eldest son, Edward F. Lowndes, II, joined the firm in1965.

During the 1950s and 1960s, C.T. Lowndes acquired several smallregional agencies, including Schweers Agency, Wehman Agency andStoney Agency.

In 1972, Henry Lowndes Jr. joined the family business, andBissell left to form his own agency. C.T. Lowndes continued toprosper but stayed small, with a premium volume of about$500,000.

C.T. Lowndes was one of the first agencies in the city topurchase a computer system in the mid-1970s, and later would usethe INSURNET system before updating to the current AMS system.

Then in 1980, Willard (Billy) A. Silcox Jr. was welcomed at C.T.Lowndes, and served as the catalyst for the growth that wouldfollow the agency.

After the death of Mullally in 1984, the company restructuredwith Henry as president, Edward as vice president and Billy assecretary. Silcox's oldest son, Willard (Bill) Silcox, III, joinedthe firm in 1989.

As the years passed and the firm acquired agencies and opened atotal of eight offices throughout South Carolina, morerestructuring occurred. Henry Lowndes Jr. stepped aside aspresident in October 2009, and Billy took over the day-to-dayoperation of the agency.

Henry's nephews, Edward F. Lowndes III and Rawlins C. Lowndes,will become owners of the agency in 2012, making C.T. Lowndesassured of being operated by the sixth generation of the Lowndesfamily, including a second generation of the Silcox family.

The plan that happened

C.T. Lowndes experienced an eye-opening phenomenon when itimplemented its 2010 strategic plan. The company had recently takena strategic planning session with an outside facilitator anddeveloped the plan.

“For the 37 years I have been in the business, we had no planfor our growth from one office and five staff to eight offices and90 staff,” Lowndes said. “We relied on good luck and took advantageof opportunities, but had no plan whatsoever. The world todaychanges too fast to even try to grow and compete without aplan.”

One reason for the longevity of the agency, Lowndes said, isthat the older generation made sure to not put the youngergeneration in debt. Each generation transfers their ownership ofthe business to the next generation to ensure that they will notstart in debt.

“Although I may not be around, I fully expect this agency tocelebrate its 200th anniversary in 2050, with the sixth and maybeseventh generations of the Lowndes family, and the second or thirdgeneration of the Silcox family in attendance,” Lowndes said.

The most important element to C.T. Lowndes is that the agency isperpetuated and the family business remains a viable enterprise,providing a good livelihood for the Lowndes family. “There is agreat deal of pride involved here, and that overcomes financialconsiderations,” Lowndes said.

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