Reports

President's Report 2022

We have an incredible team at PEI Mutual. We also have a financially stable company and are in a position to serve you, the members, for many years to come.

My grandfather spoke of the Yankee Gale of 1851. For years to come, we will speak about Hurricane Fiona hitting Abegweit, our Island home. Usually in the insurance industry the pennies of the many pay the losses of a few. However, for a catastrophe, like Fiona, PEI Mutual is an owning member of Farm Mutual Re based in Cambridge, Ontario. This reinsurance is helping to pay the losses incurred from Fiona.

Hurricane Fiona demonstrated that PEI Mutual cannot operate without Reinsurance. Our reinsurance costs are already increasing. Since PEI Mutual is financially secure, you will not see an increase in your rates this year, as a result of this event. With Farm Mutual Re helping to pay for Fiona claims, PEI Mutual was able to add $6.7 million dollars to our Member's Security Fund. PEI Mutual remains financially strong.

The incredible team at PEI Mutual consists of your management, agents, staff and your board of directors. From the one storm, this team answered 10,000 inquiries and reports of damage. This is roughly 8- 10 years work in one event. Optimistically we have nearly half of the Fiona claims completed. Our experienced employees, many new employees and even people who volunteered to help worked much overtime, going over and above what could be expected. Thank you. Thank you. Thank you.

We welcomed a new CEO in May, Craig Noonan, of Summerside. Craig joins us with a wealth of experience in management and leadership, and has had an immediate positive impact on our team. Welcome Craig. We have also added numerous other staff members and agents. We are happy to have you join the team and welcome you to PEI Mutual. We also welcomed one new director, Megan MacCallum from Brackley. Welcome Megan.

I would like to personally thank four people who retired before this Annual Meeting. Rose Doucette, who retired after 40 years of service in the office and then returned to help with Fiona. Former Director Joan Dennis also returned to help with Fiona. Agent Bruce Simpson, retired after 40 years of service, and finally our most recent retiree, Director Stewart MacRae. Together you have helped inspire our team to new heights of service.

As Mutual members and policyholders you were given two gifts this year. First, as PEI Mutual had a successful year in 2021, your rates were lowered by 8% by way of an increased Mutual Rebate in 2022. Second, with increasing cost of construction 10% was added to the limits of homes and buildings that were eligible for inflation factor protection.

We need to prepare for the future together. We are privileged to have insurance to protect our homes and businesses. This is not the case everywhere. Windstorms and high-water levels remain a huge threat going forward. Together we can keep PEI Mutual strong.

George Matheson,

President