November 21, 2011
Contact: Patrick Breslin, 609-883-1300, ext. 7070
Mobile: 609-571-0497
NJM sends Special Dividend checks for 18th consecutive year
Personal Auto policyholders share $32.5 million
WEST TRENTON — New Jersey Manufacturers Insurance Company (NJM), the largest auto insurer in New Jersey, is paying Special Dividends to approximately 425,000 personal auto policyholders now through mid-December. This marks the 18th consecutive year of Special Dividend payments, which are mailed as checks to policyholders.
The average Special Dividend check this year is $75, for a total of $32.5 million. The rate is 5% of premiums paid for 2010 policies. However, premiums for PIP, or Personal Injury Protection, (known as First Party Benefits in Pennsylvania) are excluded, as they have been for the past 10 years because of the relentless rise in medical costs related to personal injuries caused by auto accidents.
"We are returning dividends again despite challenges from difficult economic conditions and severe weather events," said President and CEO Bernie Flynn. "Our core mission has always been to operate exclusively for policyholders, not stockholders, as evidenced again by this year's declaration of Special Dividends."
Special Dividends supplement NJM's traditional practice of paying Regular Dividends, which are credited to policies at renewal. Regular Dividends have been declared each year since 1918 and are currently being paid to policyholders at a rate of 5% of the past year's premium.
Dividends contribute directly to NJM's overall value for policyholders. In fact, after dividends, NJM customers save more than 20% compared to what the average New Jersey driver pays. NJM also ranks among the best nationally in consumer satisfaction surveys.
In addition to Personal Auto insurance, NJM provides Workers' Compensation, Commercial Auto, Homeowners, Flood, and Umbrella insurance. Eligibility to apply is available to members of the New Jersey Business & Industry Association (NJBIA) and their employees, and employees of the State of New Jersey.
NJM Bank is a wholly owned NJM subsidiary and offers business and consumer checking and savings accounts, Home Mortgages, Home Equity Loans and Lines of Credit, Auto and Commercial Real Estate Loans, and Certificates of Deposit.