2024 Chairperson’s Report

87th Annual General Meeting

The 2023 financials were significantly impacted by frequency and severity of claims. Even with the a high claims volume, Clare Mutual was able to end the year with a reasonable profit of $214,829. Equity grew from $6,373,674 to 6,588.503 which is good as well. It is important to note that profits increase policyholder equity and strengthens the Company for growth and greater capacity to service clients.

Claim results for 2023; frequency was at 98 claims vs 63 claims in 2022. There were 7 Excess of Loss Claims in 2023 compared to 3 in 2022. Global warming had an impact resulting in wild fires and windstorms. The claims arising from the wildfires in Shelburne County last spring are coming to a conclusion. Only a couple of these claims are still open. Our experience with these catastrophic losses will be helpful as we move forward with our Catastrophe Plan, in cooperation with Farm Mutual Re, other strategic partners, as well as our Maritime Mutual colleagues.

Due to the severity and frequency of losses, staff had to work diligently to adjust, review and settle losses while continuing to service our 4,400 policyholders. Thank you to the staff for your determination.

We hope that 2024 will improve drastically, however, having said that we know that we are, after all, in the business of insurance.

United General auto sales are still progressing well. Premiums in 2023 were at $959,637 an increase of 32% from 2022. Loss ratio at December 31, 2023 was 64.7 % compared to 47.7 % in 2022.

Unfortunately, inflation continues to rise as supply and demand issues persist and demand for products and services continue to soar. By not adequately adjusting for inflation we are putting the client at risk of not having adequate coverage in the case of a full or partial loss. As a result, the Board has approved a 7% inflation increase and an approximate 6% rate increase to residential property premiums applied in April of 2024. Historically the Company took pride in maintaining stable rates for clients with only gradual increases. The spike in global and local catastrophe losses has resulted in significant increases to catastrophe reinsurance premiums. In early 2023 a reinsurance premium adjustment was made followed by another increase in 2024. The Company has to offset a total catastrophe treaty reinsurance cost increase of 12%.

To mitigate losses we are continuing our extremely successful loss prevention program, with an increased number of inspections being conducted.

We are looking to the fall for a strategic planning session with the staff and Director team. These sessions are a positive endeavor for the Company and it gives the Company an opportunity to seek new ways to service policyholders. Thank you to staff, management and the Directors for making the previous strategic course of the Company a reality.

Financial support will continue through donations to the communities serviced by Clare Mutual. Additional efforts will be placed in ensuring that this financial support will be well advertised to promote that the Company is a leader in supporting its community. When you support your community it will support you.

We look forward to another successful year in 2024, hopefully with time to work on some ongoing projects that will further enhance our client service and underwriting success. The year 2023 may be one we would rather forget, however, we will learn from these results and make adjustments going forward. We will continue to monitor weather-related events and other challenges that face our industry.

I am optimistic that we have the best team in place to face these challenges.

Henry Thibodeau - Clare Mutual Insurance - ChairmanHenry Thibodeau

Chairman of the Board of Directors
April 4, 2024