Money back

BY SARA KEDDY

Kings County Register

Policyholders with Kings Mutual are getting some money back - a share in a 15 per cent rebate worth $861,000 - for the 20th year in a row.

The Berwick-based insurance co-operative presented its financial reports at the April 18 annual meeting with 80 policyholders and guests in attendance.

“It’s nice to be a winner,” out-going board member Bill van Roestel of Middleton said. “We’re lucky to have a company like Kings Mutual - it’s good for the area and for the farmers - they wouldn’t get a break like this anywhere else.”

Kings Mutual started 102 years ago when a group of farmers banded together on insurance. It has since grown to carry $6 million in premiums in 2006, 36.3 per cent of which covers farm-based operations. Residential coverage makes up 58.6 per cent of Kings Mutual’s business; commercial property is 5.1 per cent.

Company finance vice-president Dan Lister said, while the company grew premiums 4.9 per cent in 2006, it maintained its farm business at the same rate.

“It’s quite an advantage to have that farm business on our books. It allows us to reduce our taxes by that amount.”

The company’s loss ratio in 2006 was up to 41.8 per cent, compared to 37.2 per cent in 2005.

“That’s Hurricane Juan sticking its head up,” Lister said.

The 10-year loss ratio average is 39.5 per cent, so officials were pleased to finish 2006 at 41.8 per cent, with no rate increases - and still come up with premium rebates for policyholders. This year’s returns build a 20-year payback to $8.3 million.

Board vice-president Dave Davies of Kentville attributed the year’s success to a “second-to-none staff and managers” and a $30.3 million investment portfolio.

Company president and general manager Wally Jarvis announced he will be retiring before the end of 2008, but the board has already appointed Lister in his place when the time comes.

Board members Philip Murphy of Atlanta, N.S. - with 37 years on the board - and Joe Ueffing of Glenmont - going into his 22nd year - were both re-appointed. Van Roestel was replaced by Round Hill dairy farmer Jeff Bishop.