2014 Our Financial Strength and Buying Power, Stable Member Contributions, and Integrity Deliver for Members

statewide mutual. Strength. Stability. Integrity. Statewide Mutual Annual Report and financial statements for year ended 30 June 2014 Our financial strength and buying power, stable member contributions, and integrity deliver for members. Year after year. We’ve been there for NSW regional and metropolitan councils for over 21 years. We work alongside councils to reduce their exposure to risk and ensure they get the most from their membership. Today we’re proudly Australia’s largest local government self-insurance pool. We know what councils want from a first-class risk partner. Table of Contents. Members ......................................................01 Chairman’s welcome ........................................03 Executive Officer’s report ................................. 06 Board and Committee ......................................07 Claims and Risk Management Committee report ......................................... 08 Marketing Committee report ............................ 09 Financial Statements .....................................11 Notes to and forming part of the Financial Statements .............................14 Certificate by Chairman and Finance Committee Chairman ..........................18 Independent audit report to the members of Statewide Mutual .........................19 1 STATEWIDE MUTUAL ANNUAL REPORT 2014 ALL SCHEMES Members. AS AT 30 JUNE 2014 L P F C&O M L P F C&O M Albury City Cootamundra Armidale/Dumaresq Corowa Ashfield Cowra Ballina Deniliquin Balranald Dubbo City Bankstown City Dungog Bathurst Regional Eurobodalla Bega Valley Far North Coast County Bellingen Forbes Berrigan Gilgandra Bland Glen Innes Severn Blayney Gloucester Bogan Goldenfields (Water) Bombala County Boorowa Gosford City Bourke Goulburn Mulwaree Brewarrina Great Lakes Broken Hill City Greater Hume Byron Greater Taree City Cabonne Griffith City Campbelltown City Gundagai Canada Bay City Gunnedah Canterbury City Guyra Carrathool Gwydir Castlereagh Macquarie Harden County Hawkesbury River Central Darling County Central Murray County Hay Central Tablelands Hornsby Water Hurstville City Cessnock City Inverell Clarence Valley Jerilderie Cobar Junee Cobar Water Board Kempsey Coffs Harbour City Kogarah Conargo Ku-Ring-Gai Coolamon Kyogle Cooma Monaro Lachlan Coonamble Lake Macquarie City L P F C&O M L P F C&O M Leeton Ryde City Leichhardt Shoalhaven City Lismore City Singleton Lithgow City Snowy River Liverpool Plains Southern Slopes Lockhart County Maitland City Strathfield Manly Sutherland Mid Coast (Water) Tamworth Regional County Temora Mid Western Regional Tenterfield Moree Plains Tumbarumba Mosman Tumut Murray Tweed Murrumbidgee Upper Hunter County Muswellbrook Upper Hunter Shire Nambucca Upper Lachlan Narrabri Upper Macquarie Narrandera County Narromine Uralla New England Urana Tablelands Wagga Wagga City Newcastle City Wakool Norfolk Island Walcha North Sydney Walgett Oberon Warren Orange City Warringah Palerang Warrumbungle Parkes Weddin Pittwater Wellington Port Macquarie Wentworth Hastings Willoughby City Port Stephens Wingecarribee Queanbeyan City Wollondilly Randwick City Woollahra Richmond River County Wyong Richmond Valley Yass Valley Riverina (Water) County Young Rous County L Liability Scheme P Property Mutual Scheme F Fidelity Guranatee Scheme C&O Councillors’ & Officers’ Cover M Motor Vehicle Cover Chairman’s welcome. It gives me great pleasure to report on the results and Property Mutual Scheme achievements of Statewide Mutual for the twelve months The Property Mutual Scheme reported a surplus of ending 30 June 2014. $4,093,396 for 2013/14, prior to rebates being provided to This Annual Report outlines the operation of the mutual members. This brought accumulated surpluses to $12,522,972 covering the Public Liability protection offered to members, at 30 June 2014. As with the Liability Scheme, these surplus as well as the Property Mutual Scheme and Fidelity funds belong to member councils. Guarantee Scheme. It also features relevant commentary Member contributions remained unchanged for the fourth from the mutual’s Executive Officer, Naamon Eurell, and successive year. Increases are subject only to variations in reports from myself as Chair of both the Claims and Risk the total value of assets declared by individual member Management Committee, and the Marketing Committee. councils. Membership of the various schemes at 30 June 2014 was: Fidelity Guarantee Scheme • Liability Scheme – 146 The accumulated surplus of the Fidelity Guarantee Scheme • Property Mutual Scheme – 144 totalled $1,475,867 at 30 June 2014. It’s noted that renewal • Fidelity Guarantee Scheme – 143 terms on this scheme have remained unchanged since June • Motor Vehicle Cover – 144 2006, except where variations have occurred in the amount • Councillors’ and Officers’ Cover – 135 of surplus refunded each year. The scheme has now been re-rated, meaning the actual cost to member councils has Statewide Mutual membership been reduced. The commitment and solidarity shown by the mutual’s members are why we exist today, and why we remain Rebates the leader in this increasingly volatile and competitive Our members shared $7.6 million in rebates. To date we’ve market. The scheme works because our 146 members have handed back over $60.9 million to members, with all councils a combined strength that allows us to deliver the best having received a cheque since 1998. outcomes for all; regardless of volatile cycles in the market. These rebates are primarily due to low claims occurrences in I’d like to thank each and every member council for their the Liability, Property Mutual and Fidelity Guarantee Schemes, continued support. It’s because of this support that we’ve attributed in part to our robust Risk Management Program. grown from being a perceived risk no underwriter would insure, to a mutual whose members’ business is now vied for Motor Vehicle Cover and Councillors’ and by competitors. Officers’ Cover Motor Vehicle Cover and Councillors’ and Officers’ Cover A full listing of member councils, and schemes in which they were introduced in July 2013. This was in order to provide participate, can be found on the previous pages. member councils with relevant and in-demand products. Liability Scheme These two schemes, 100% underwritten and placed with The Liability Scheme reported a surplus of $4,422,743 for insurers in the local market, have proven to be immensely 2013/14, prior to rebates being provided to members, which popular with members. gave an accumulated surplus of $25,820,403 at 30 June 2014. There may be an opportunity to move to mutually self- The strong financial position of Statewide Mutual has insuring the schemes in the near future, if the current enabled the board to maintain relative stability in member competitive market environment changes. The incentive contributions. These increased by 3.7% for the period, after here is to act as a hedge against a hardening insurance remaining unchanged for the previous four years. market seeking increases in premiums. STATEWIDE MUTUAL ANNUAL REPORT 2014 3 Board of Management and Executive Officer involved regularly monitoring contributions, cash flow and I’d like to acknowledge the efforts of Nick Tobin, who was claims, and providing advice to the board on its capacity to Chairman of the Board of Management during period meet claims as and when they fell due. The committee also that this Annual Report pertains to. The maintenance of determined rebates distributions to member councils. Statewide Mutual’s strong financial position and advent of The Marketing Committee is our newest sub-committee. significant marketing initiatives were heavily influenced by It was formed during July 2013 in response to an identified Nick’s direction and leadership. need for a co-ordinated marketing strategy. I’d also like to thank outgoing board members for their past Scheme Management contributions, namely ex-Chairman Terrey Kiss and Peter Teggart. In the same breath I acknowledge our newest Jardine Lloyd Thompson (JLT) continued to provide expert board members, Melissa McCoy and Craig Richardson, who advice to the board throughout the 2013/14 financial year on continue to excel in their roles. reinsurance arrangements, and worldwide trends in Local Government Insurance. Naamon Eurell replaced John Attenborough as Executive Officer on 1 January 2014. Naamon has proven invaluable in JLT advised on risk management services through its this role. Amongst many achievements, he has connected subsidiary, Echelon Australia Pty Limited. They play an well with our regional and rural members, and facilitated integral part in the design, management and implementation exciting marketing and communications developments. In of our Risk Management Program. addition, his years of experience in local government mean The diligent work of Leo Demer, Stephen Penfold and Ron he is a valuable source of advice to member councils. Barnes and their teams across these areas is acknowledged and greatly appreciated. Committees The administration of Statewide was carried out by three On behalf of the Statewide Mutual team, I look forward to significant committees: Claims & Risk Management, Finance the continued delivery of strength, stability and integrity and Marketing. across the membership throughout the coming year and thank all members for their enduring support. The board’s Claims & Risk Management Committee is led by myself and represented by seven other elected board members. Over 2013/14, this committee succeeded in ensuring councils

Load more