Manager's Report 2006
Your rebate cheque is enclosed.
Most successful year in past 25 years.
Rebates to policyholders total $2,700,000
PEI Mutual has just completed its best year financially for the past 25 years. Our policyholders will benefit from our success by sharing in the Company’s profits through “Mutual Rebates” which are given in years when the Company has good financial results. I am pleased to advise that policyholders will receive a total of $2,700,000 in mutual rebates:
- A “Mutual Rebate” of $1,400,000 (10% of 2007 premium) will be deducted from our policyholders’ invoice in 2007, and
- A “Special Mutual Rebate” of $1,300,000 (10% of 2006 premium) is being paid out to our policyholders – your cheque is enclosed.
Mutual rebates have been paid to our policyholders for 18 of the past 24 years. The total amount refunded to our policyholders in these 18 years is approximately $20,000,000.
In 2006, we continued our struggle to reduce the occurrence and cost of oil escape claims. Unfortunately, they continue to occur and the clean up costs are significant. There were 20 new oil escape claims reported in 2006 at an estimated total cost of $1.5 million dollars. On a positive note, in 2006 we did have some success in recovering some of our costs from installers and manufacturers who were deemed to be at fault.
In 2006, Philip MacDonald, our service agent for Summerside and area, retired after 27 years of service to the Company. Philip experienced many changes over these years and was a significant contributor to the Company’s success. On behalf of everyone at PEI Mutual, I thank Philip for his long term service with the Company.
Mark MacDonald from Cornwall , was hired in 2006 as our service agent for part of central Queens County . Mark is a graduate of Nova Scotia Agricultural College and has been employed in the agriculture industry for the past 18 years. I welcome Mark to our team.
I am pleased to advise that PEI Mutual was once again recognized in 2006 by Progress Corp as a “Top 101 Company in Atlantic Canada”. PEI Mutual has received this award for each of the past nine years. In 2006, there were seven other companies in PEI that received this award.
PEI Mutual is an Island company owned by its policyholders with its head office located on PEI . Decisions are made promptly on PEI . We are in the business of providing service to our policyholders and it’s our goal to give excellent service in an efficient manner. I thank our agents and staff for their hard work in achieving this goal.
Thank you for choosing PEI Mutual as your insurance provider.