Real People. Real Products. Real Service.
ANNUAL REPORT
2016
NOTICE OF ANNUAL MEETING
The Annual Meeting of
Trillium Mutual Insurance Company
will be held on
Wednesday, March 22, 2017
10:30 a.m. at
495 Mitchell Road South, Listowel, ON
Lunch will be provided
Purpose:
1. To receive the financial statements of the Corporation for the fiscal year ending December
31, 2016 and approve the auditor’s report thereon;
2. To appoint auditors for 2017;
3. To transact any regular business that may be introduced in the interest of the company;
4. To elect two (2) Directors for a three-year term; and
5. To consider enactment of new consolidated Bylaws for the Corporation as recommended
by the Board of Directors.
Note that in accordance with the Bylaws of the Corporation, any person wishing to seek
election or re-election as a Director must file an intention to stand for election in writing with
the Secretary of the Corporation not later than thirty (30) days prior to the Annual Meeting or
General Meeting called for the purpose of electing Directors.
The proposed new consolidated Bylaws and the annual statement will be available on the
Corporation’s website on or before February 17, 2017, or a member may obtain copies by
sending a written request to the Corporation’s head office. The proposed new consolidated
Bylaws include all Bylaws enacted by the membership since January 1, 2004 as well as a
number of changes to modernize them and to incorporate good governance practices.
By order of the Board of Directors
B. Hicks, B.A., LL.B.
Corporate Secretary
2
O
n behalf of the Board of Directors, I am
pleased to provide you with the following
report.
It seems every year our report starts out
with thanking the many people who work
with Trillium each and every day. Well, it
can’t be helped!
We continue to be proud of the community
support that our ROOTS foundation provides.
ROOTS gave back $223,275 to capital
projects in the communities in which we
have served and have members. This is one
of the true meanings of being a Mutual.
Giving back to help those in the local
communities. On top of this endeavour, we
support our communities thorough business
development sponsorships and volunteer
efforts. In 2016 each and every staff and
Board member gave back by volunteering in
the communities in which we live. Kudos to
everyone for participating this year.
Many thanks go out to our Members for
being a part of Trillium, our Brokers and
Agents for all their hard work in assisting
the Members and the Staff and Board for
their focus and dedication to this company.
With all these groups pulling in the same
direction we can accomplish many things. Thanks again for supporting Trillium Mutual!
This has been very evident in the last three
years premium growth.
Strategically, Trillium continues to set
plans and goals for the future. As we are
experiencing excellent growth from past
strategic planning, we see the need to
always be thinking well into the future. We
are now working on ideas and products
that will take us into the 2020 – 2025 period
and beyond. It’s an exciting time to be with
Trillium!
Sincerely,
Scott Cumming
Chair of the Board
Financially, even with some adverse claim
activity throughout the year, Trillium
was able to add to its surplus in 2016. An
additional $1M was added to bring the total
to over $56M. This gives us a very secure
base as we continue to grow our product
lines strategically.
3
REPORT FROM THE CHAIRMAN
The working relationship between the
Executive Team, Corporate Treasurer,
Corporate Secretary and the Board is
impressive. The Board with the support of
the team is able to focus on all governance
matters, industry changes and strategic
planning. As a Board we have a renewed
focus on continuing our education in
order to stay on top of not only the
insurance industry changes but changes to
governance and Board operations.
OFFICERS OF TRILLIUM MUTUAL
BOARD OF DIRECTORS
Chairman............................................................................................................................ Scott Cumming
Vice-Chairman.................................................................................................................. Ross Lamont
President & CEO............................................................................................................... Joe Dietrich
Corporate Treasurer........................................................................................................ Lindsey Robinson
Corporate Secretary....................................................................................................... Bryan Hicks
EXECUTIVE TEAM
Directors: (back row left to right) Ross Stone, Ross Lamont, Julie Garner, Ken Schaus,
Ben Rier. (front row) Scott Cumming.
Executive: (left to right) Pam Murray, Tracy MacDonald, Joe Dietrich, Mike Virley.
4
A
REPORT FROM THE PRESIDENT & CEO
s I reflect on 2016, I recall a year that presented
many challenges, opportunities yet also gratifying
rewards all bundled into 366 days.
Our company and the property and casualty insurance
industry experienced an unusually high number of fire
losses in 2016. Early in the year we began referring to
2016 as the “year of the fire”. This directly impacted our
financial performance and the underwriting results
for the year reflect this. Our growth continues to be
exceptional compared to all internal and external
benchmarks. The total volume of business at the
end of 2016 exceeds $49 million and our strategic
goal to underwrite $55 million by the end of 2018 is
trending extremely well. The strong and respected
relationships that we have with the brokers and
agents who represent Trillium drives this growth both
in the volume of business but more importantly, in
the number of new members. In spite of weaker core
business or underwriting performance resulting from
the higher claims costs, surplus is increasing which is
an important measurement of success in this business.
An important goal for all of us at Trillium is to continually
increase brand awareness. We strive for Trillium Mutual
Insurance Company to be a recognized and respected
brand in the community and the insurance industry. We
are also working hard to achieve the same recognition
and respect for our two other brands: ROFI – Real
Ontario Farm Insurance; and ROOTS – Recognizing Our
Opportunity to Support. Trillium is a leader in these
spaces as well. ROFI is our commitment to be best in
class in innovating and delivering complete insurance
solutions for farmers. Our long term goal is to be the
agri-business insurer of choice in Ontario and the
traction we gained in 2016 positions us well. This will
continue to be a high priority strategic goal. ROOTS is
the process that has been established to administer
the generous philanthropy program and funds that
are returned annually to the communities we serve.
Both of these brands are also increasing in awareness
and impact on our organization and the community at
large. In 2016, we increased the number of members
by 1,680. At the end of the year our membership
numbered 21,591. Thank you our members for your
business and loyalty.
Measurements of success go beyond financial results. We
understand that successful organizations need to invest
in continuous improvement of its people and processes.
We see the current and future investment in talent and
technology as being critically important. Appropriately,
the Strategic Business Plan now includes a Talent Plan
and a Technology Plan, both sub-sets developed in 2016.
In both of these areas we have been recognized as leaders
by recently receiving awards in technology, innovation
and culture. I’m extremely proud of the team at Trillium.
Our staff is engaged and are demonstrating a degree of
nimbleness that I have not experienced before. I used
to say “we have innovative leaders”, I now say “we have
innovative employees”. The team that we are developing
is the primary reason that our strategic goals are being
met and exceeded on a timely basis.
For Trillium, our success is directly linked to the leadership
in governance provided by the Board of Directors. The
Board as well is an innovative team and have established
a strategic direction that is both realistic but visionary.
I appreciate the support and guidance of each board
member. They understand the importance of their role
in oversight, insight and foresight and invest accordingly.
The Board sets a strong example that visionary
leadership is not about perpetuating the status quo, but
rather positioning the organization to be successful and
sustainable in the future, and to be in a position to adapt
to whatever change comes. In fact, with the support of
the Board, we intend to increase Trillium’s relevancy and
to create change where we are best in class.
As a mutual, we think and plan long-term. We are not
motivated or expected to generate a strong ROI on a
quarterly or even annual basis. We are committed to
providing leading insurance solutions in a competitive
and stable offering. One of the great successes in 2016
was to include in our menu of products enhanced water
or overland flood coverage. A basic principle for Trillium
is to offer the best coverages available to our members,
and we delivered on this again in 2016. I believe that
protecting your home is one of the most important
priorities you have. Protecting it against water will be an
increasingly important decision in the future.
My personal thanks to all stakeholders, you the
policyholder member; our Board of Directors; the brokers
and agents who professionally represent us; and our
employees. It is a privilege to work with and for each of
you.
Sincerely,
Joe Dietrich
President & CEO
5
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
FINANCIAL STATEMENT
DECEMBER 31
(IN THOUSANDS OF DOLLARS)
2016
2015
Assets
Cash and Bank
Investments
Investment Income Accrued
Income Taxes Recoverable
Due from Reinsurance
6,512
4,468
76,156
72,942
21
25
1,002
-
179
134
13,085
12,044
Due from Facility Assoc.
1,401
1,399
Reinsurers Share of Unpaid Claims
6,619
8,044
Due from Policyholders
Other Receivables
2
-
Prepaid Expenses
232
322
Deferred Policy Acq Exp
5,204
4,812
Property Plant and Equipment
7,820
7,369
Intangible Assets
2,194
2,431
128
212
120,555
114,202
Accounts Payable and Accrued Liabilities
3,797
3,863
Due to Facility Association
1,462
1,461
Deferred Income Taxes
Liabilities
432
Income Taxes Payable
Unearned Premiums
24,250
22,141
Provision for Unpaid Claims
34,321
30,864
63,830
58,761
56,725
55,441
120,555
114,202
Members’ Surplus
CONSOLIDATED STATEMENT OF MEMBERS’ SURPLUS
55,441
50,990
Comprehensive Income for the Year
1,307
4,481
Changes in non-controlling Interest
(23 )
(30)
56,725
55,441
Balance-Beginning of Year
Balance-End of Year
6
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31
(IN THOUSANDS OF DOLLARS)
2016
Revenue
Gross Premiums Written
Less: Reinsurance Ceded
Net Premiums Written
2015
$
49,398
44,998
4,364
3,704
45,034
41,294
2,109
2,297
42,925
38,997
635
552
43,560
39,549
Net Claims and Adjusting Expenses Incurred
27,456
18,049
Commissions and Acquisition Expenses
10,617
9,667
7,190
7,135
45,263
34,851
-1,703
4,698
Investment and Other Income
3,438
778
Comprehensive Income Before Taxes & ROOTS
1,735
5,476
67
742
361
253
1,307
4,481
Less Increase in Unearned Premium
Net Premiums Earned
Service Charges
Total Underwriting Income
Expenses
General Expenses
Total Expenses
Net Underwriting Income (loss)
Income Taxes
Donations from ROOTS Fund
Comprehensive Income for the Year
A complete audited financial statement can be
found HERE, or by contacting us.
7
The Last Five Years
(in thousands of dollars)
Comprehensive Income
Underwriting Income (Loss)
-$1,703
2016
2016 $1,307
2015
$4,698
2015 $4,481
-$1,855
2014
2014 $2,419
2013
$3,020
2013 $4,080
2012
$5,942
2012 $6,855
-2000 -1000
0
0
1000 2000 3000 4000 5000 6000
1000 2000 3000 4000 5000 6000 7000 8000
Gross Written Premium
Net Loss Ratio
2016
$49,398
2016
63.96%
2015
$44,998
2015
46.28%
2014
$40,542
2014
67.29%
2013
$38,508
2013
48.93%
2012
$37,821
2012
39.08%
0
10000
20000
30000
40000
0
50000
Policyholder Equity
(Members’ Surplus)
10
$56,725
2016
$3,438
2015
$55,441
2015
$778
2014
$50,990
2014 $4,956
2013
$47,960
2013 $2,006
2012
$43,880
8
10000
30
40
50
60
70
Investment Income
2016
0
20
2012 $2,759
20000
30000
40000
50000
60000
0
1000
2000
3000
4000
5000
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2017 International Plowing Match
19-23! To learn more, please visit http://www.plowingmatch.org/ipm-2017
Giving Back to the Community
2016 Volunteer Day Program
Trillium is extremely proud of it’s Volunteer Day Program! Each employee and Board
member are given a full day to volunteer with an organization of their choice. In 2016, a
total of 490 volunteer hours were given by the Trillium team at 27 organizations!
In alignment with our ROOTS Community Fund, our 490 volunteer hours were spent in
the following categories:
Eco/
Sustainability
9%
Recreation &
Wellness
10%
Healthcare
35%
Other
15%
Agricultural
31%
Check us out on Facebook and Twitter to see our team in action!
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IN OUR COMMUNITIES
We are proud to be a Gold Sponsor of the 2017 IPM being held in Walton, ON September
Trillium’s Culture Journey
Trillium Mutual is honoured and proud to be the recipient of the prestigious Canadian
Corporate Award of Merit in 2016! This honour was awarded through Human Synergistics,
a leading global consulting firm that measures corporate values, management processes,
human behaviours, leadership styles and organizational culture. This award is given to organizations that have a constructive culture, and recognizes the hard work and dedication
that Trillium and its employees have demonstrated over the past three years.
To measure and monitor our culture journey we have participated in an annual survey in
each of the past three years. Organizations with a constructive culture place a high value
on service and product quality, goal attainment and the development of their people –
where quality is valued over quantity, creativity is valued over conformity and cooperation
is believed to lead to better results than competition. Through individual initiative, effective
teamwork and cooperation; the products and services offered by constructive organizations tend to be of the highest quality.
CEO, Joe Dietrich shown here accepting the award with some Trillium Team staff.
Joe summed up his feelings on this award by stating: “We are all very proud to have evolved
our culture considerably, in this short period of time, of just three years. Trillium’s commitment to this journey is proven through this prestigious award and this is truly an award
for all of our professional and dedicated staff; this is truly a team award. This is about our
culture and culture is about our people. We live it and we created it together”.
We are in no way slowing this journey; the Trillium Team will continue with focused momentum in improving our constructive styles even further.
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VISION STATEMENT
To be the leading mutual insurer protecting
and enhancing farm and community lifestyles.
MISSION STATEMENT
We provide our members, through trusted partners, with complete
and innovative insurance solutions, delivered with
excellent service and integrity.
VALUES STATEMENT
Our Valued Members
We exist for the sole benefit of our members.
Protection through Insurance Solutions
We protect and respond to member needs with innovative solutions.
Exceptional Customer Service
We strive for every customer experience to be excellent.
Financially Responsible
We are accountable for long term financial stability.
Our Partners are Essential
We choose professional and ethical partners to sell and service our products.
Our Employees: Our Success
We are a team of dedicated professionals working in an environment
of mutual respect and continuous improvement.
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ANNUAL REPORT
2016
495 Mitchell Rd South
Listowel, ON
N4W 0C8
1-800-265-3020
www.trilliummutual.com