President's Report 2010
2010 was a very exciting year for PEI Mutual - it was our 125th Anniversary of providing quality insurance coverage for our valued policyholders on PEI. One of the highlights was a TV and Radio advertising campaign promoting our company. This promotional activity could not have been carried out without the professional help of our valued employees who went above and beyond.
Along with our 125th anniversary activities, PEI Mutual had a successful year financially. Gross premiums written for 2010 were up $1.127 million over last year, representing a growth rate of 7.65%. Also, we welcomed 769 new policies to our Island-owned mutual company. PEI Mutual is very financially secure and has a policyholder security fund greater than the minimum requirements of the PEI Insurance Act.
Gross Claims were up $1.5 million from last year with fire losses continuing to be PEI Mutual's loss leader. Oil claim losses were up and continue to be an underwriting concern. A lot of effort was concentrated on this problem area during 2010 and we will move forward in 2011 with more preventative measures. Fortunately, wood burning losses were down in 2010; however, electrical fires surfaced as a new area of concern for our company.
Although we had a significant rise in claims this year and there was an increased presence of adverse weather conditions, PEI Mutual still had a very successful year. We achieved a net income after taxes of $1.0 million; due in large part to prudent underwriting and a very vibrant management team. As a result of our continued financial success, PEI Mutual will be able to provide a 10% Mutual Rebate for the next year.
During the last year, PEI Mutual directors, management, agents and staff participated in a Strategic Planning Process. This process will enable PEI Mutual to meet insurance challenges, new markets and underwriting techniques to keep a competitive edge on our services for our valued policyholders into the future.
It has been a rewarding year to serve as President of PEI Mutual and I would like to thank the directors, management, agents & staff for making PEI Mutual the best insurance company on PEI.