President’s Report

It has been my privilege to act as your Company’s President again this year and it is my pleasure to present your Annual Report for the year ending December 31, 2008.

As always, we have seen changes take place within the company. During the past few years we have been addressing the area of loss prevention through education and inspections. This year we decided to go to the next step and hire a Loss Control Officer. One of our directors, Jeff Campbell, resigned his seat on the Board to apply for this position. Through the interview process, Jeff was considered to be the most qualified and was subsequently hired as McKillop Mutual’s “Loss Control Officer.” This is a new position and we are all learning as we go but we are confident that the addition of this position will be very beneficial to both the Company and the property owners. Another new face in the office is Deb Tsitomeneas. Deb has joined our Underwriting Department, replacing Jenn Kearsey, who took a position in Cambridge with the Farm Mutual Reinsurance Plan. Welcome Deb.

This Company was saddened by the death of our agent, Bob McNaughton this past spring. Bob was a well -respected member of the community and a very important player on the McKillop team. He is missed daily. Bob’s passing left a void that had to be filled. The cold hard reality is that his clients must be serviced. Thanks to Julie Campbell‘s endless hours of hard work, Bob’s business carried on as close to normal as anyone could hope for. The other agents of the company must also be commended for coming to Julie’s aid, when needed, during this difficult time. The Board of Directors had some tough decisions to make and, after much discussion, decided to split the book of business. Three new agents have been named to represent McKillop Mutual. They are Julie Campbell, Dan McNaughton, and Lynda Vincent. These are all very capable individuals that will keep your company strong and growing into the future.

On the financial side, we have also had our challenges. An insurance company’s purpose is to protect its policyholders from financial hardship caused by unforeseen circumstances. Your Company did a very good job of that this year. We paid a lot of claims, of which a high percentage were weather related, and as we all know, the weather is unpredictable. Despite the high number the claims, we were still able to achieve a small underwriting profit.

Insurance companies depend on their investments for a certain amount of income each year. The recent turmoil in the money markets has had a serious effect on our investments, leaving us with a net loss to the company of $120,825 for the year 2008. Through some tax relief from income averaging we should only need to remove $98,835 from surplus, which is why it is very important to have a healthy surplus to help us through these lean years.

The year 2008 is not going to be remembered as one of the best years for McKillop Mutual; however, it won’t be the worst either. The company did not make any money, but we helped a lot of our neighbours through difficult times. That is what we are here for. This is the Mutual Way.

The Annual Meeting of McKillop Mutual Insurance Company will be held March 4, 2009 at 1:30 pm in the McKillop Mutual office. At present, we have a vacant chair at the board table that we will be filling at the annual meeting. I would encourage each and every member to consider taking a leadership role in your company. Other items on the agenda for this meeting will include presentation of the annual report etc. We will also be asking for approval to change some By Laws that the board has identified as being outdated. I am hoping for a good crowd so please plan to attend.

I will be stepping down as President immediately following the annual meeting. I would like to thank my fellow directors for giving me this opportunity. The past two years as president has been a very rewarding experience. I look forward to accepting the responsibilities of my new role as Past President and helping out any way I can. Thank You.

Brad Carnochan, President

General Manager’s Report

McKillop Mutual is a 100% Canadian Company and is owned by its policyholders. As a member of the company, eligible policyholders may vote on the affairs of the company and may run to become a director. Eligible policyholders also share in the profits of the company. During the previous four years the company realized profits of which a percentage was returned to our policyholders.

Unfortunately 2008 was a very challenging year. Weather related claims were on the increase with the majority being sewer backup and sump pump failure. Water escape and sewer back\ up losses totalled in excess of $900,000.We encourage everyone to take precaution against such risks. Consider installing a back up battery operated sump pump and check that your sump pump will function properly when required..

During the year Jeff Campbell was hired as Loss Prevention Officer. The creation of this position has taken the company’s dedication to loss prevention to the next level. Please welcome Jeff if you are contacted for a routine inspection.

McKillop Mutual is a well capitalized company having a surplus well in excess of premiums written. The bottom line loss results in a minor reduction in surplus however this has not had an impact on our capital position.

This Annual Report contains a consolidated financial report. Please visit our web site at www.mckillopmutual.com  or visit our office for a complete audited financial statement.

We encourage everyone to practice safety both inside and outside of your homes. On behalf of our directors, staff and agents I want to thank you all for your loyalty and support.


Ken Jones,
General Manager & CEO