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Ayr Farmers Mutual Insurance Review

The Ayr Farmers Mutual Insurance was established in 1893 and has a long proud history. The need for insurance from fire damages on an affordable term led to the formation of AFM which is now a member of the Ontario Mutual. The following year in 1894, the business grew to 238 insurance policies worth around $805060 and is still progressing at a steady pace.

The company has its headquarters at 1400 Northumberland Street in Ayr township of Ontario and broker partners, staff and agents provide services for insurance. The AFM still firmly believes in Mutual Insurance tradition and is thriving in a community where the pioneers had set out a goal to help each other.

Products and Services Available from Ayr Farmers Mutual Insurance Company

Ayr Farmers Mutual provides insurance products and services in many sectors. These include home insurance, farm insurance, auto insurance, commercial insurance, marine & watercraft insurance, home service line coverage, and home systems protection. You may customize these as per your requirement and also purchase additional insurance for more protection. The commercial packages provide cover to lower hazard factors and include crime, loss of earnings, special extensions, and commercial general liability.

Major Insurance Products Offered by Ayr Farmers Mutual Insurance Company

  • Home Insurance: Under the home insurance section they offer insurance packages for tenants, homeowners, condominiums, superior seasonal homeowners.
  • Farm Insurance: They offer a distinct agribusiness insurance product at a reasonable cost as per the risk with very attractive coverage levels, features, and rates. The products include the supreme dairy farm program, supreme poultry farm program, supreme crop & storage program, and supreme hog farm program. Very soon you may also choose from the supreme equine farm program, supreme hobby farm program. If you need to insure a property in a rural area that does not fit in any of the above categories then you may ask for a customized package.
  • Auto Insurance: Ayr Farmers Mutual also underwrites and sells auto policies as per the Ontario regulations. They sell the standard policies as well as additional coverage that you may purchase to add-on protection. These include protection plus, higher accident benefit limits, emergency road service, replacement of transportation, ATVs & snowmobiles, and liability coverage for rental vehicles.
  • Commercial Insurance: The attractive commercial packages are for business-related to church services, contractor services, home-based business, office, residential retail, and retail. They also offer insurance products to cover the breakdown of equipment and replacement of income when you suffer a loss. Any situation that does not fit into the normal criteria may also get customized coverage as per the requirements.

Additional Insurance Coverage from Ayr Farmers Mutual Insurance

  • Combined Limit Endorsement: This add-on gives extra protection to combine the detached private structures, main dwelling, personal property, and additional living expenses limits. All these additional limits are combined into a single limit that you may use when needed.
  • Guaranteed Replacement Cost: Ayr Farmers Mutual will provide coverage for replacing or repairing the damages due to an insured peril. This protects the dwelling and may even cover for damages that may cost more than the limits on the policy for replacement cost.
  • Identity Fraud: To provide coverage for reimbursing costs for protecting your personal and confidential identity from a fraudulent theft.
  • Bank Card (debit) and Credit Card Coverage
  • Fine Arts All Risk Coverage
  • Computer Equipment All Risk Coverage
  • Boats and Motors All Risk Coverage
  • Home Business Coverage

Financial Stability of Ayr Farmer’s Mutual Insurance Company


Ayr Farmer’s Mutual Insurance has 2 primary sources of revenue. This includes the insurance policy premiums and any income they receive by investing in those premiums. They also get the ownership of damaged property that they resell to salvage operations and for subrogated claims, they recover losses from the other parties.

AFM is a member of the Fire Mutual Guarantee Fund so if a policyholder’s claim is not paid by AFM due to insolvency then FMGF will pay those claimants. On the other hand, they have many expenses such as payout of claims settlements, operational and administrative expenses. AFM also has a pension benefit plan for its employees. To retain the financial stability of the company they follow a claim monetary policy. As per this policy, they may reinsure and underwrite the main insurance contract that limits the company’s liability as follows.

Claim payout limits set out by AFM

AFM has limited their claim payout for a single event for safeguarding their liabilities and to retain financial strength.

Property claim limit: $700000 (any single claim)

Automobile claim limit: $700000 (any single claim)

Liability claim limit: $600000 (any single claim)

AFM also has reinsurance limits of up to $2100000 in the case of a series of claims due to a single incident. They also have reinsurance to stop-loss that could limit their liability. This is for paying out claims in a particular year to less than 70 percent of net earnings in premiums. The board of directors and auditing committee ensure that Ayr Farmers Mutual has sufficient finances to pay out current claims and provide coverage for future claimants.

The company has always maintained transparency regarding its financial strength. They publish their financial statements every year. The website has currently financial statements from 2009 till 2016. The overall company performance in 2016 was also very positive.

Reliability and Company Growth

As per the CEO and President of Ayr Farmers Mutual Insurance, the overall growth in premiums has remained consistent in 2016. The policyholder equity increased to $51 million. Total premiums increased to $28 million, reporting a growth of around 7.4% in business strength. AFM decided to pass on some profits to the policyholders in the form of refunds. They have done refunds many times in the past. They have paid refunds to policyholders 26 times in the past during a period of 31 years. This speaks very highly of the company’s strong financial strength and reliability.

Now, after the astounding financial performance in 2016, AFM has issued around $1.4 million refunds to property policyholders. This has an estimate of around 10% premiums refunds to qualifying policyholders who are eligible as per certain criteria. Based on Mutual Insurance principles, Ayr Farmers Mutual still does believe in supporting the community through various endeavors.

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