Insurance premiums, investments mutually ‘satisfactory’

BY SARA KEDDY

Kings County Register

Last year marked the 103rd year for the Berwick-based Kings Mutual Insurance Company: a “very satisfactory” year, board vice-chairman Dave Davies reported at the annual meeting April 16.

“Premium growth was right on target at five per cent over last year,” he said. “Since there was no premium rate increase, the growth resulted entirely from new and increased business.”

The co-operative was able for the 21st consecutive year to return a rebate to policyholders, a record 15 per cent – worth $904,000; that adds up to $9.2 million over the past two decades.

President-elect and current treasurer Dan Lister reported Kings Mutual broke the $6 million mark in premiums written for the first time, and also had eight months in a row through 2007 with half-million dollar premium values.

“It wasn’t that long ago we didn’t have any half-million dollar months,” Lister said. “It’s real growth. We haven’t done much with rates for a long time. It’s new policies and increases in the value of current policies. We try for five per cent growth and hold that.”

Lister compared the $6 million premium value to 1997’s $3.1 totals, and credited that 93 per cent growth to president Wally Jarvis’ tenure.

Jarvis, retiring at the end of 2008, said some great things have happened while he’s been with the company, “but it’s been a group effort, from a very fine team.”

He thanked brokers in the field, the company agent’s attention to loss prevention, its New Minas and Berwick business offices, investment advisors, co-op partnerships regionally and beyond, the board of directors and policyholders.

“The most important part of the operation.

“They are a highly select group: screened by our agents, assessed by our loss prevention program. If you’re insured by us, you’re a good person with property and services in good condition.”

The past year had a few bumps: the loss ratio was slightly over the 10-year average of 40 per cent, coming in at 50. 4 per cent (compared to 37.2 per cent in 2006).

Lister attributed that to an “awful run” in November and December: Hurricane Noel claims, a large barn fire and a large house fire.

“A lot of damage was done late in the year, but a normal 40 per cent year for us would be the envy of many other agencies.”

Kings Mutual also bought a neighbouring one-and-three-quarter acre residential property on Commercial Street in Berwick, bulldozing the house and earmarking the land for company parking and future use. The cost of that was $172,429.

Still, with $29 million in investments and the continuing annual policyholders’ returns, Lister said, “as we have a good year, we have a rebate.

“Most years, we have a good year.”

Three directors’ terms expired this year: Donald Gunn (21 years on the board), John Lohr and Robert Wilson (each finished their first three-year term). Brian Hirtle of Viewmount and David Hovell of Port Williams also offered in the election; the three incumbents were returned.

The company also dedicated its annual report to 25-year-plus employee Joan Harding, who died of cancer in 2007. An annual scholarship to her former high shool, West Kings, has been created and will be presented for the first time at the 2008 graduation.

Core farm customers still in Kings Mutual mix

Kings Mutual started when a group of farmers banded together to provide their own insurance coverage, and has been a strong advocate for farm business ever since.

Of 11,000 policies in place,

• 36.3 per cent of premiums are farm-related

• 4.5 per cent of premiums are commercial

• 59.2 per cent of premiums are residential