General Manager's Report 2020

In many ways 2020 was a year like none other. I am pleased to say that our PEI Mutual Team has performed extremely well in what can be described as adverse conditions.

Pandemic and Member Service

In March of 2020 Islanders found themselves in the grips of the COVID 19 Pandemic. Insurance is an essential service, providing financial backing in the event of an insured loss. The necessary public health restrictions have affected how we go about our work and personal lives. PEI Mutual personnel have adapted very well implementing many new ways to maintain insurance services in changing circumstances. Our head office has been closed to the public while our staff work safely providing the needed services and support to our members. Our field agents and adjusters have been guided by safety protocols to protect themselves and the public.

In our mission we provide our Members with quality insurance products at competitive prices, through local, personalized, and professional service. Although member services were adapted to the environment in 2020, continuity of policy and claims services was our top priority throughout.

Hard Market

Islanders continue to be affected by the “hard market” influencing insurance pricing and availability. PEI Mutual is in business for its member policyholders and has maintained steady and sustainable insurance pricing while making coverage available when we can. In the hard market, PEI Mutual has been there to serve Islanders.

Financial Results

Our 2020-year end financial results were excellent. We saw good growth of $2.5 million dollars with many new members purchasing insurance. Our expense ratio improved as premium growth more than offset increased costs of operation. Losses incurred by our members were down in frequency and severity. The weather was kind to PEI and it is believed that members were maintaining and preventing losses to their property. Investment income continues to be a challenge with fixed income securities seeing their lowest yields in decades. While stock markets were volatile during 2020 our value-based portfolio performed well rebounding substantially by year end. Comprehensive income was $4.2 million after the Board of Directors declared PEI Mutual’s largest Special Mutual Rebate.

Mutuality and Mutual Rebates

As a Mutual our Board of Directors examines the financial circumstances annually to determine if Mutual Rebates can be declared. I am pleased to advise that mutuality is strong within PEI Mutual. As a result of our member’s shared financial experience the board has declared approximately $7.6 million in mutual rebates. A special mutual rebate representing 15% of premiums will be paid to all members as at December 31, 2020. In addition, 10% will be deducted from 2021 renewal premiums. This is mutuality at its best! We strive to provide fair pricing at cost for our member’s insurance services. When feasible, we return money to our members.

Thank You

In closing I extend a sincere thank you to our staff, agents and directors who have worked harder than ever on behalf of our members under challenging circumstances.

Thank you also to our members for your understanding during these times and for choosing PEI Mutual as your insurance provider.


Blair Campbell,

CEO / General Manager