Policyholder Dividends

As part of its pledge to exercise stewardship of policyholders' funds, New Jersey Manufacturers Insurance Company has shared its financial success by paying dividends to policyholders every year since 1918. During 2006, a total of $164.0 million was returned to policyholders in all lines of business.

Each policyholder's dividend is a percentage of the premium paid for the past policy year. The percentage amount varies based on the Company's operating experience. Dividends are not guaranteed in the future.

Regular Dividends are typically credited at the end of each 12-month policy contract.

Homeowners policies are receiving a Regular Dividend of 10% of their premiums.

Personal Auto policyholders are receiving 5% of the premiums they paid for their Liability and Physical Damage coverage as a Regular Dividend, but there is no return of their medical portion of their Personal Auto premiums because of rapidly rising treatment costs.

The NJM Board of Directors also reviews data for earlier policy years regarding claims payments and reserves, administrative expenses, premiums and investment income. Based on this review, occasionally the Board declares a Special Dividend in addition to the Regular Dividend. The most recent Special Dividend was an average $327 check for Personal Auto policyholders which was paid on premiums for coverage in 2004 and 2006. For full details, read NJM's news release from October 29, 2007.