President's Report 2013
On behalf of your Board of Directors, I am pleased to report that in 2013, our gross premiums written were up 3.3% to $18.55 million. With the addition of 429 new policies, we now have more than 32,000 policies in force under our farming, residential, commercial, fishing boats and fishing lines of insurance.
Fire losses continue to be the number one loss leader for PEI Mutual, to a total amount of $7.99 million in 2013 compared to $4.93 million in 2012 - an increase of $3.06 million. Electrical was the main identifiable source of such losses, both in 2013 and 2012. Water escape and sewer back up claims were also on the rise in 2013. The total number of claims was up significantly in 2013, resulting in an underwriting loss of $2.04 million. Fortunately, our investment portfolio achieved very good results of $3.28 million, which allowed us to achieve a bottom line profit of $1.13 million after taxes. Because of this, we are able to extend a 10% Mutual Rebate to our policyholders.
In 2013, we wrapped up our Oil Tank Incentive Plan, which resulted in rebate cheques of $213,000 being issued to eligible policyholders, since being implemented in 2011. I would like to thank our policyholders for their co-operation in replacing their high risk outdoor tanks.
On August 31st, 2013, Percy Affleck resigned from the Board. Percy served on our Board for 29 years and was very instrumental in the growth of this Company. I would like to thank Percy for his years of service and wish him all the best in the future. In October 2013, the Board appointed Kent MacFarlane as PEI Mutual's newest Board member. Kent operates a dairy farm with his wife Carol in Albany, PEI. I would like to extend a warm welcome to Kent.
Reflecting back on this past year, I feel honored to have served on this Board as President. I would like to extend a sincere thanks to all the staff, management, agents and directors who are all committed to serving all new and current policyholders. This is something they do best as they live and serve in the same communities as you do.