A year ago, when I took on the roll of President of this prestigious 126 year old company, which has been recognized year-after-year as a "Top 101 Company in Atlantic Canada", I felt very intimidated. However, I can now say that it has been a very rewarding experience and that with the very competent people running the company on a day-to-day basis, from the Receptionist to the Manager, being President was not that difficult.

I would like to report that P.E.I. Mutual has had another successful year with a net income of $1.5 million, up 50% from last year. Because of this, P.E.I. Mutual is again able to provide a 10% Mutual Rebate to its policyholders, which will be given as a premium discount at the time of renewal. Our premiums written increased by $1 million over last year for a total of $16 million, while claims increased by $500,000 over last year, for a total of $10.3 million. Fire was the number one cause of loss in 2011 with $3.3 million in claims, and "electrical" being the main cause of these fires.

As many of you know, the world trading markets have fluctuated wildly over the past year, making investment decisions very difficult. Our Treasurer and Manager have made invaluable decisions over the years, which have resulted in an excellent source of income from our investment portfolio.

On behalf of the Board of Directors, I would like to extend a sincere thanks to all who have made this past year another very successful one at PEI's only Island owned insurance company.

Jim Doyle,

President