New Jersey Manufacturers Insurance Company

WEST TRENTON, N.J. — New Jersey Manufacturers Insurance Company, which historically has charged some of the lowest Personal Auto insurance premiums in New Jersey, will reduce rates an average of 5% effective February 15, 2008 for new and renewal policies. In total, policyholders will save about $34.6 million in the first year alone.

NJM is the state's largest Personal Auto insurer, covering more than 740,000 vehicles. The Company's rates have not been increased overall since 1996.

"The unique value of NJM is the combination of outstanding service, low cost, and the shared benefit of our policyholders' safe driving experience," said Anthony G. Dickson, President and CEO. "NJM's financial success is delivered exclusively to policyholders, not stockholders."

Regular Dividends have been paid to policyholders in each and every year since 1918, and the payment is usually provided as a credit on the following year's premium charge. Special Dividends have been mailed as checks to Personal Auto policyholders in each of the past 14 years. Last November and December, NJM returned $132.4 million in Special Dividends to Personal Auto policyholders, an average of $327 per policy.

Dividends are paid in addition to NJM's low rates. Calculations provided by the New Jersey Department of Banking and Insurance (DOBI) show the statewide average annual premium for all insurers was $1,099 per car in 2006, the most recent data available. By comparison, NJM's average was only $944, and after Regular and Special Dividends were paid, NJM's net cost was just $812 per car.

NJM's commitment to Stewardship, Integrity and Service is demonstrated throughout its operations:

NJM accurately quotes applicants online at www.NJM.com and via phone at 1-800-232-6600 based on the information provided, and the rate is held for a full year instead of six months like many other insurers.
The Company does not use credit history or educational level to set rates. There are no complicated tiers.
NJM covers only safe drivers from the start and never increases the rate because of an occasional accident or driving violation. All policyholders get "accident forgiveness," at no charge. NJM's experience has shown that policyholders appreciate the value of this feature. When an accident does happen, the policyholder can report facts truthfully and completely without worry of a rate increase – enabling an honest, prompt and fair resolution of the claim.
NJM Insurance Group consistently receives among the fewest valid auto insurance complaints as measured by DOBI, and NJM scored first for overall satisfaction in auto insurance among readers of a national consumer magazine.
Policyholder money is not spent on company cars, luxury boxes, or expensive advertising campaigns. As a direct writer, NJM's service is provided by in-house salaried staff rather than agents who work on commission. Underwriting expenses in 2006 were just 11.3%, which is less than half the industry average of 26.3% – savings that are passed on to policyholders.
NJM retains A.M. Best's highest rating of A++ (Superior) for financial strength, a pinnacle achieved by only 1.5% of rated U.S. property-casualty insurers.
NJM is the only auto insurer in New Jersey to offer $1 million in no-fault medical Personal Injury Protection (PIP) coverage. Most carriers offer only the state-mandated option of $250,000.

Medical costs remain a major concern to NJM policyholders, who have not received dividends on PIP since 2001. Last November, Mr. Dickson sent a letter encouraging NJM policyholders to contact top New Jersey legislators to oppose a bill that would repeal a PIP Medical Fee Schedule adopted by DOBI. This schedule set reasonable limits on medical fees, including a cap on expensive "facility fees'' that are charged when surgery is performed in a non-hospital setting. While this bill has not been passed, it remains a subject of legislative action, and NJM will continue its vigilance.

Because of rising PIP costs, the portion of policyholders' premiums for PIP coverage will increase 2% as part of NJM's overall 5% rate decrease. Even though premiums will go down for a majority of policyholders, some will see an increase at renewal due to PIP expenses and other factors.

Despite the current competitive market and expensive advertising by other carriers, NJM continues to grow by virtue of word-of-mouth endorsements from good drivers. In order to be eligible to apply for coverage with NJM, an individual must be currently employed by a company that is a member of the New Jersey Business & Industry Association (NJBIA) or by the State of New Jersey.

NOTE: NJBIA members who wish to tell their employees about the valuable benefit of NJM personal auto insurance may request promotional materials.

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