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How P.E.I. Mutual Insurance narrowly escaped financial ruin after post-tropical storm Fiona

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SUMMERSIDE, P.E.I. — One among P.E.I.’s oldest insurance coverage suppliers solely narrowly escaped being destroyed by the catastrophic monetary fallout from final 12 months’s post-tropical storm Fiona.  

P.E.I. Mutual Insurance coverage Firm, which is a kind of customer-owned co-op primarily based in Summerside, had a large portion of its policyholders all submit claims on the identical time within the aftermath of the September 2022 storm.  

P.E.I. Mutual alone obtained claims for practically $95 million in damages ensuing from the storm.  The corporate expects to proceed working via Fiona-related information properly into 2023. 

“One storm over two days may have spelled insolvency for P.E.I. Mutual,” stated George Matheson, firm president. 

The one factor that saved the mutual was its personal reinsurance coverage in opposition to catastrophic occasions. P.E.I. Mutual is insured with Ontario-based Farm Mutual Re for cover in opposition to one-time main claims occasions – like highly effective storms.  

 “We definitely would have been in a a lot totally different place had we not had that partnership to lean on,” stated Craig Noonan, firm CEO. 

P.E.I. Mutual recently held its annual general meeting for members at Red Shores Summerside. Presenting the financial and general business updates were, from left, George Matheson, president, Craig Noonan, CEO, Rudy Smith, chief financial officer and Josh Toombs, legal secretary. - Colin MacLean/SaltWire
P.E.I. Mutual not too long ago held its annual basic assembly for members at Pink Shores Summerside. Presenting the monetary and basic enterprise updates have been, from left, George Matheson, president, Craig Noonan, CEO, Rudy Smith, chief monetary officer and Josh Toombs, authorized secretary. – Colin MacLean/SaltWire

P.E.I. Mutual not too long ago held its annual basic assembly in Summerside, the place the monetary statements have been introduced to the membership. These paperwork are additionally publicly accessible on the corporate’s website

“So, 2022 was a 12 months like no different within the historical past of P.E.I. Mutual,” added Noonan. “We noticed greater than 10 years’ value of claims in a single climate occasion – which put an excessive quantity of stress and stress on our crew members, and in addition, we acknowledge the influence that it had on our policyholders on P.E.I.

“So, when it comes to our operations, I’m very pleased with the best way our crew stepped up.” 

In actual fact, due to its reinsurance coverage, P.E.I. Mutual is just on the hook for about $2 million in damages associated to Fiona.  

All thought of, the corporate managed a $6.7 million revenue in 2022. That cash has been added to the members’ surplus, which now sits at $79.9 million.  

However as any insurance coverage policyholder is aware of – payments are likely to go up after you make a declare. P.E.I. Mutual is a $1 million improve to its regular reinsurance invoice.

It’s a big improve, however Fiona has proven how crucial having that sort of protection is to an establishment like P.E.I. Mutual, stated Matheson. 


Colin MacLean is a reporter with SaltWire in Prince Edward Island. He may be reached by electronic mail at [email protected] and adopted on Twitter @JournalPMacLean



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