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, a cumulative total of more than $5.0 billion.
Each policyholder's dividend is computed as 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. The following percentages are effective for policies expiring during 2012.
- 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 the medical portion of their Personal Auto premiums because of rapidly rising treatment costs.
- Homeowners policies are receiving a Regular Dividend of 5% of their premiums.
- Workers' Compensation policies issued by NJM are receiving a Regular Dividend of 20% of their premiums. Meanwhile, New Jersey Re-Insurance Company Workers' Compensation policyholders are seeing a return of 5% of their premium.
- Commercial Auto policyholders are receiving 10% of the premiums paid for their Liability and Physical Damage coverage as a Regular Dividend.
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. In 2011, auto insurance policyholders received a regular dividend credited at policy renewal and a special dividend payment of an average of $75 per policy.