Refund of Premium 2018
Posted on Friday, January 26, 2018
Within the company by-laws the Board of Directors at Ayr Farmers Mutual is granted the ability to declare a refund from premiums to participating Policyholders. Such a consideration is based on the company’s financial and capital position as at the most recent fiscal year end.
For the Board to declare a refund, numerous factors are considered, such as:
- The Company’s overall financial position, and the financial performance during the past year.
- The Required funding for future strategic plans
- The Future and expected premium growth for the company
For a mutual insurance company to be strong, it entirely hinges on the ability to retain sufficient capital. Our success for the organization is made or lost on having proper capital in place. This capital protects the liabilities the organization receives and enables us to pay the losses our Policyholders may endure.
After carefully considering future expected premium growth and investment towards fulfilling key strategic initiatives, your Board of Directors has declared a refund of premiums of 5% to qualifying Policyholders on non-automobile policies. This equates to approximately $821,000 being returned to our members.
I would like to thank all of our many Policyholders for their continued support of Ayr Farmers Mutual Insurance Company. We look forward to the opportunity to serve you as Members.
Stay tuned for more information regarding our Refund of Premium Contest, beginning February 20, 2018.
- Jeff Whiting, President & CEO of Ayr Farmers Mutual