The Mutual Way…

·  We are 100% Canadian and owned by our policyholders

·  Independently operated under the leadership of Directors elected from among the policyholders

·  Ours is the purest form of insurance – figured into the cost of insurance are only losses and operating expenses

·  No profits are paid to outside shareholders

·  We invest locally, employ local people and use local trades

·  Through our own “Guarantee Fund” and “Reinsurance Plan”, we are backed by Ontario's 45 other mutuals so that policyholders' claims and      unearned premiums are guaranteed to be paid in the event of a disaster

·  Collectively, our system is one of the largest property insurers in Ontario

·  We are dedicated to continued improvement through on-going training and advancements in technology

·  Through our association, we are an active participant in the Canadian and international insurance industry

·  We stay on top of current issues and make representation to government and other regulatory bodies on matters which may affect our      policyholders

...Here is a simplistic illustration that demonstrates the principles of a purely mutual insurance company.

First of all, we are a purely mutual company owned and guided by policyholders. We operate on an insurance-at-cost basis . That means we use your premium dollar for three things: -to pay claims, -to operate the company, and -to make sure that we have enough surplus to protect you when we are needed. We are like a container. Premiums and investment income contribute to the surplus in the container that is used to pay claims and cover operating expenses. The simple goal is to provide for the needs of the owning policyholders while ensuring the mutual remains financially stable. Can you see how claim costs affect the amount of the premium needed? Can you see how changing the rate of flow of any of these four forces affects the water level? As a small local insurer we have remained stable for over a century. We will continue to be there when you need us. We, along with the other Ontario mutuals, are among the most financially secure insurers in the world!