Well 2016 just wrapped up. Early indications are that 2016 will be a good loss year for MTM members.

As a refresher, 2014 was a good loss year. At the February 2015 Board of Directors meeting the Board reviewed the December 31, 2014 financial results. The Board then declared a member dividend of $2.5 million. At the end of 2015, we again had a good loss year. And at the February 2016 Board meeting, the Board approved a $3.5 million member dividend.

In January our CFO will put together the 2016 numbers and will also get the loss trend analysis from our independent outside actuary. With all of this data, the MTM management team will prepare MTM year-end financials for presentation to the MTM Board on February 16th. Included in that presentation will be member dividend data and options for the Board to consider and ultimately decide. MTM members are well represented by the Board since all Board members are MTM insureds.

I’m sure you recall me saying that delivering member dividend checks is the best part of my job. I’m anxious to do that again, and I’ll keep you informed as soon as I know more. My hope is that again in March I will be speeding around the state with surprise “drop-bys” of member dividend checks. Not surprising, while our member shops are always busy, you have time to accept a check and take a picture that we use in newsletters and the annual company video. At the annual meeting I usually highlight 10 – 15 of these check deliveries. The pictures are priceless.

To reduce the impact of a potential, but unlikely catastrophic multiple employee loss MTM buys “reinsurance” which is insurance for insurance companies. For example, MTM has insurance coverage in case of a plant explosion that seriously injures many employees. We have not had a reinsurance loss for the last 8 years. With this loss history we bargained hard for a rate reduction and this year saved our members over $200K in reinsurance expenses. Thanks to our members, we have reduced our reinsurance expense each of the last 4 years. This savings goes straight to the MTM bottom line, i.e. our members dividend.

Nearly half of our members renew between 12/15 and 1/15. Yes, it is a busy time with Christmas and New Year holidays always getting in the way. While we don’t have the renewal “numbers” yet, if the rest of 2016 is a gauge, then over 96% of our members renewed. About half of the NOT renewed accounts are companies that were sold or went out of business. So only 2% of our members found a better workers’ compensation deal when balancing present price, owner’s dividend, loss control services and claims service. A good record, but with my review of member surveys last weekend, you always give us ideas on how to improve. And just like your shops, CQI – continuous quality improvement is just that… continuous.