Manager's Report 2009
Rebate Cheque Enclosed!
PEI Mutual Celebrating 125th Anniversary
Rebates to policyholders total $3,100,000
PEI Mutual is celebrating 125 years of business. Our policyholders benefit from our financial 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 $3,100,000 in mutual rebates:
- A "Mutual Rebate" of $1,600,000 (10% of 2010 premium) will be deducted from our policyholder's invoice in 2010, and
- A "Special Mutual Rebate" of $1,500,000 (10% of 2009 premium) is being paid out to our policyholders - your cheque is enclosed!
Mutual rebates have been paid to our policyholders for 21 of the past 27 years. The total amount refunded to our policyholders in these 21 years is approximately $25,500,000.
125 years old……….. a brief history of this great Company.
In the 1880's Prince Edward Island experienced difficult times resulting in many maritimers leaving their homes, bound for New England. The farmers stayed behind. They had a difficult time purchasing insurance from companies outside PEI. At the Farmers Convention in 1885, a group of farmers decided to petition the Provincial Legislature for the Incorporation of PEI's first Mutual Insurance Company. This company would be owned by its members and each member would promise to help pay the losses of others in the group. This company would be called the Prince Edward Island Agricultural Mutual Fire Insurance Company and would allow farmers to insure farm property at much reduced costs on what they called a "Mutual Plan". On April 10, 1885, final assent of the bill to incorporate the company was passed in the legislature and PEI Mutual was born. This company could only insure farm property and was quite successful. Other property owners wanted to insure with the "Mutual Plan" which resulted in the formation of another company in 1899, the Prince Edward Island Mutual Fire Insurance. This company would insure "other than farm" properties. In 1941 the two companies amalgamated to our present day company.
Today, 125 years later, PEI Mutual has 25,000 members and is a financially sound company writing 28% of the PEI property and casualty insurance market. A testament of recent growth and financial success of the Company …. our revenues are 4 times what they were 20 years ago and our equity or accumulated surplus is 5.5 times what it was 20 years ago.
Our head office is located in Summerside and it is the only company of its type on PEI. We are truly an Island company, owned and operated by Islanders with decisions made locally.
The success that PEI Mutual has experienced in the past 125 years is a testament to the diligent work of our employees and the leadership of our Board of Directors. I thank the Staff, Agents and Directors for their dedication to the success of PEI Mutual.
Thank you for choosing PEI Mutual as your insurance provider.