As you may recall, last March, the MTMIC Board authorized distribution of $2.5 million of profits to members. The dividend covered policy years 2010 – 2012. The dividend was comprised of two parts:
- Loyalty – how long have you been with MTMIC. All members with coverage during the covered or beginning during the “covered years” and still in force as of February 28, 2015 shared in this dividend part.
- Great loss ratios – accounts with outstanding loss ratios during the “covered years” shared in a second dividend. The end result was an average dividend of 19%. A total of 108 members received a dividend that exceeds 50% of their current annual premium. Yes, that is very cool.
On Thursday, October 15, the MTMIC had its Annual Members meeting. This meeting was attended by over 80 members with 105 registering. Preceding the Annual Members meeting was a quarterly MTMIC Board meeting. A significant topic for the Board was a detailed update of the September 30th financials for 2015. This first review of 2015 results indicates that a members’ dividend is likely. A less detailed financial briefing was also given at the Annual Members meetings. Similar to the Board meeting, MTMIC management outlined 1a most likely dividend amount, also including a more conservative range estimate and a more aggressive range estimate. Now three weeks later and with another month of financial results in the books (10/31/15), I can report I would give the same report and ranges to the Board and all members today.
I have met with our claims and risk management staff stating the importance of their functions to these member results. For your part, please welcome and invite the MTMIC Loss Control staff. They are there to assist you and also improve your results for not only for a lower experience modification but the members’ dividend program.
I will update you with the dividend information as we near year-end. In the meantime, join me in doing all we can to reduce our claims frequency and severity which immediately impacts dividends to you, our members.
As a last comment, I have written about the great fun of delivering dividends to our members. It is the best part of my job. I am looking forward to the February Board meeting declaration and deliveries in March.
