Corporate Governance

As CEO of PEI Mutual, I am pleased to share with you an overview of 2024—a year marked by resilience, adaptation, and progress. Despite a number of internal changes, and a challenging insurance landscape shaped by rising reinsurance costs, increased frequency of catastrophic weather events and heightened economic pressures, we continued to move forward with determination and purpose.

From a financial perspective, PEI Mutual achieved strong results in 2024. Premiums written increased by $3.5 million compared to the previous year, reaching over $43 million. Net income after tax totaled $5.0 million, and our Members' surplus grew to just under $90 million as of December 31, 2024, reinforcing our ability to respond to future challenges and meet the evolving needs of our members. Positive investment returns, driven by net investment income of $7.2 million, contributed to our financial strength. While we achieved an underwriting profit of $638,000, rising reinsurance costs and the market demand to invest in rapidly evolving technologies continue to pressure profitability.

At PEI Mutual, our commitment to serving our members with integrity and dedication remains unwavering. We take pride in earning the trust and loyalty of our policyholders, building a solid reputation grounded in personalized service and quality protection, deeply rooted in our Island community.

As the insurance provider of choice for Islanders, we remain committed to offering quality coverage tailored to meet the unique needs of our farming, fishing, commercial, and residential policyholders. This past year, we prioritized enhancing our underwriting practices and improving service delivery to ensure our members receive comprehensive protection at competitive prices. The launch of our new website in November, coupled with our enhanced social media presence, allows us to provide valuable content and education to our members and followers.

Looking ahead, we are focused on product development and innovation, and the long-awaited adoption of our cloud-based Enterprise Resource Planning (ERP) system. Set to launch in the second quarter of 2025, this initiative will streamline our operations and enhance our service efficiency, reinforcing our commitment to meeting the evolving needs of our members through innovative solutions.

Supporting our communities remains a cornerstone of our mission. Once again in 2024, PEI Mutual supported hundreds of organizations and causes, contributing over $350,000 to community impact initiatives across Prince Edward Island. As the Founding Partner of Special Olympics PEI, we take great pride in supporting their incredible work fostering inclusion and empowerment through sport. We have also increased our investment in agriculture and fishing-related initiatives, recognizing their importance to the Island’s economy and heritage. Our commitment to small business remains strong through collaboration with the five Island Chambers of Commerce. We continue to invest in education and our Island’s future leaders by providing 20 scholarships annually through the PEI Mutual Education Trust. Our contributions also extend to humanitarian causes and environmental sustainability, underscoring our dedication to giving back and making a meaningful impact throughout the Island. Finally, we actively support youth sports through our partnerships with Sport PEI and the PEI School Athletic Association, as well as a renewed commitment to the arts through initiatives like the PEI Mutual Festival of Small Halls and the PEI Youth Talent Competitions.

Striving to be the best place to work remains a top priority for PEI Mutual. We continue to invest in our team’s professional growth, well-being, and work-life balance. In 2024, we expanded training opportunities, strengthened internal communication channels, and enhanced our technology infrastructure to support hybrid and remote work. At PEI Mutual, our people are our greatest asset. The dedication and expertise of our employees are the backbone of our success, and we are committed to providing a supportive, engaging, and empowering work environment.

While we continue to face external challenges, our commitment to our members’ well-being and the financial strength of our organization has never been stronger. The global reinsurance market has been significantly affected by recurrent natural disasters and escalating climate change-related risks, resulting in considerable increases in reinsurance costs, which have influenced our financial planning and operational strategies. After thorough evaluation, the Board of Directors made the difficult but necessary decision to reduce the Mutual rebate from 18% to 15% for the upcoming year. This adjustment will help maintain our financial resilience while ensuring we continue to provide reliable coverage to our members.

Looking ahead, the upcoming year is particularly special, as we prepare to celebrate our 140^th Anniversary on April 10^th.  For nearly a century and a half, we have proudly served Islanders with dedication, integrity and a firm commitment to mutuality. We will continue exploring opportunities for growth and improvement while preserving the values that have made PEI Mutual a trusted presence on Prince Edward Island for generations. As we strive to be the best place to work, the insurance provider of choice, and a force for positive impact within our communities, we are confident in our ability to face future challenges with resilience and purpose.

I would like to extend my deepest appreciation to our members for their continued loyalty and trust, to our incredible team whose dedication drives our success, and to the Board of Directors for their guidance and support throughout this transformative year.

We look forward to serving you in 2025 and beyond.

Sincerely,

Craig Noonan,
CEO