The new executive of PEI Mutual Insurance Co. was recently elected following the Company's 2014 Annual Meeting held on April 8th, 2014. Incoming President, Gordon Vessey (right)
accepts the gavel from outgoing President, Brian Annear.
At the recent Annual Meeting of PEI Mutual Insurance Company, Rudy Smith, the Corporate Treasurer, commented that the Company ended the year with a net income of $1.1 million. A large
increase in claim payments had a significant negative impact on the financial results, as compared to the previous year. The majority of this increase resulted from damage caused by the
perils of fire and water escape. It was noted that the Board of Directors have declared a 10% mutual rebate for 2014, to be given as a discount or reduction in premium at the time of policy
renewal.
Company CEO, Terry Shea, stated that water and sewer backup claims have been consistently increasing over the past ten years. He believes this is mainly attributed to the manner in which new
homes are being designed and used. Laundry facilities are now being placed on the upstairs level of the home resulting in significant damage to the dwelling when a water pipe bursts. Basements
that were once left unfinished are now finished and furnished with very expensive materials that are damaged when water migrates to the basement. In 2013, PEI Mutual paid a total of $2.33
million for 307 water escape claims.
Mr. Shea stressed that there are many effective ways for homeowners to reduce their risk of loss when it comes to water damage. In their 2013 Annual Report, PEI Mutual included a two-page
educational insert as a means of bringing more awareness of the risks, costs and measures to protect against water and sewer back up damage.
Outgoing President, Brian Annear, was generally pleased with the Company's financial results for the 2013 fiscal year. He noted that the Company continues to grow its policyholder base,
which now exceeds 32,000 policies under the Company's Farming, Fishing, Residential and Commercial lines of insurance.
PEI Mutual is located in Summerside and is the only insurance company of its type on PEI - truly an Island company, owned and operated by Islanders with decisions made locally.
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