President's Report 2016
Your company, PEI Mutual Insurance, had a good year in 2016. It was the first year in the last 4 with an underwriting profit. This was due to a good continued growth rate and a significant reduction in claims. As well, our investment portfolio did quite well which added to our profit.Because of this, our 10% mutual rebate will continue for another year.
Early in my term as President, our manager Terry Shea announced to the board that he will retire in May 2017. Terry is in his 33rd year as a PEI Mutual employee which is a remarkable time to be employed with one company. He has served very capably as our CEO for over 16 years since March 2001, and the company has achieved significant accomplishments under his leadership.
Your board began in June 2016, a process to hire an individual to become our new CEO in June 2017. We engaged the services of Island Recruiting from Charlottetown to assist us with this task. I would like to acknowledge and thank Jenn Cole for her ongoing assistance with this very important company project.
PEI Mutual Insurance is a member of the Canadian Association of Mutual Insurance Companies (CAMIC) that co-ordinates an annual lobby day in Ottawa. For a number of years now, representatives from your company have attended this event to meet with Members of Parliament and Senators from across Canada. This year our focus was an attempt to influence changes to the Canadian tax system which, if implemented, will create tax savings for Canadian Mutual Insurance companies. This will help us to remain competitive with larger insurance companies.
PEI Mutual had many happy times during the past year, but unfortunately some of our mutual staff had family illness and bereavement to deal with. Our thoughts and prayers are with you during these difficult times.
Again it has been a privilege to serve as President of this company which is now over 131 years old. It has been a very busy term, but I have enjoyed it. Thank you to the management team, staff, and agents who all help to make this company special. Thank you also to my fellow directors for all their support and advice.