Because we have no external shareholders or owners, we return all proceeds from better than expected operating results to our policyholders in the form of dividend credits. Since we started dividend distributions we have returned over $280 million in dividend credits to our policyholders. Dividends vary yearly and cannot be guaranteed.

How we determine dividends.

Each state receives a dividend allocation based on its contribution to the results that make the dividend possible. Then, within each state, individual policyholders receive an allocation based on the premium they have contributed during the period. In addition, starting in 2008, a separate dividend is allocated to policyholders whose claims experience is “better than anticipated”. This dividend explicitly recognizes and rewards our policyholders with the best claims experience.

Loyalty and good medicine pay too.

We pay more than lip service to loyalty and good medicine—we reward them. Many long-term policyholders receive dividends that reduce their annual cost by 20% or more.