New Jersey Manufacturers Insurance Company

WEST TRENTON, N.J. — New Jersey Manufacturers Insurance Company (NJM), the largest insurer of personal autos in the state, has started mailing its record-breaking Special Dividend of approximately $132 million — an average of $327 each for 405,000 policyholders.

This week, about 180,000 checks are being sent to insureds who had policies issued or renewed in January through May of 2006. Another batch of 180,000 checks will be mailed next week for policies dated June through October 2006, and about 45,000 checks will be mailed December 11-12 for policies dated November or December 2006. The total number of policyholders is 405,000 — about 98% in New Jersey and 2% in Pennsylvania.

This is the 14th consecutive year that NJM has sent policyholders dividend checks and is the largest Special Dividend that NJM has paid in its 94-year history.

"These checks are proof of NJM's commitment to Stewardship, Integrity and Service for the exclusive benefit of our policyholders," said President and CEO Anthony G. Dickson. "This money does not go to stockholders, special management incentives, sales commissions or expensive advertising. It goes directly to our policyholders, whose positive comments to others about NJM's value are priceless."

As NJM has done in every year since 1918, each policyholder's dividend return is calculated as a percentage of that customer's premium for a prior year. Policyholders already have received a 5% "Regular Dividend" for 2006, which became a credit for the next year's policy. The "Special Dividend" checks are additional 15%.

If the customer was insured by NJM back in 2004, the check also provides 7.5% of that year's premium — on top of the 12.5% dividends previously returned for 2004.

Notably, these dividend calculations do not include any return of the portion of premiums for medical coverage for auto accidents. NJM had to stop paying such dividends four years ago because of rising medical expenses.

"Despite NJM's success in controlling costs overall, policyholders are feeling the impact of medical expenses in particular," Dickson said. "The Medical Fee Schedule for auto insurance recently adopted by the New Jersey Department of Banking and Insurance is a reasonable first step, but we are concerned that the State Legislature in the closing hours of its current session may be considering bills being pushed by special interests to repeal this program."

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