Refund of surplus
The Board of Directors is pleased to announce it authorized a $3.5 million refund of surplus to our policyholders at a Special Board Meeting on January 14, 2022. The underwriting profit earned in 2021 was exceptional and the Board decided it would issue a refund of surplus in the amount of approximately 15 % of a policy’s gross premium. To qualify for the refund, the policy must be continuously inforce with Bay of Quinte Mutual Insurance Co. for 36 consecutive months as of December 31, 2021. Later in the spring, the refund cheques that exceed $10 will be issued and mailed to our policyholders.
Chair Harry Scanlan says “a refund of surplus is our company’s way of returning some of the year’s underwriting profit to our policyholders, who own Bay of Quinte Mutual Insurance Co. An underwriting profit is important because it allows our company to minimize premium rate increases, improve your insurance coverage and grow. We know from recent years, investment returns cannot be counted on to offset poor underwriting results. We have had four years with a negative change in the fair value of the investment portfolio and even one year with negative investment income. The income earned in 2021 is more than sufficient to allow our company to achieve our goals and the Board want you to benefit from the year’s success.” Please remember to watch for the envelope in the mail from our company. Thank you for your support and loyalty to Bay of Quinte Mutual Insurance Co. !