Policyholder Dividends

As part of our mission to maintain the highest levels of financial stewardship, NJM has shared its success by paying dividends to policyholders every year since 1918, for a cumulative total of more than $6.0 billion.

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 credited at the end of each 12-month policy term. The following percentages apply to policies written during 2016 and renewing in 2017.

  • Personal auto policyholders – 5%
  • Homeowners – 5%
  • Workers' compensation – 15%
  • Commercial auto – 15%

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, the Board may also declare a special dividend in addition to the regular dividend. When declared, special dividends are mailed to policyholders toward the end of each calendar year. In 2016, the combined regular and special dividend payment for personal auto was an average of $218 per policy.