$5 Million Total Dividend Declared

During the June 12 MCIT Board of Directors meeting, the board considered the program’s assets and liabilities at the end of 2025 to determine if a dividend would be financially sound and fiscally prudent. The board decided that a total $5 million from available fund balance would be returned to members.

For the first time since 2021, the property/casualty division’s fund balance was sufficient to support a dividend. The board of directors approved a $2 million dividend for property/casualty division, and a $3 million dividend for the workers’ compensation division.

Each year since 1996, the performance of MCIT’s investments and members’ risk management efforts have provided the board the ability to declare a dividend.

2025 Investment Income Fuels Dividends

During each dividend discussion, board members reaffirm that the program must remain fully funded and capable of responding to unexpected events that could affect MCIT’s fiscal health. They are also committed to returning funds not deemed necessary to the operation of the program.

This year, the overview of MCIT’s fiscal health presented by Scott Anderson, president of Actuarial Advisors, showed that the performance of MCIT’s investments outperformed expectations, generating returns to fund both divisions’ dividends. Investment income is commonly considered the fuel for generating dividends.

Claim performance in both divisions during 2025 and prior years were also better than expected in terms of frequency and severity, having a positive impact on the cost of the program, thereby contributing to the overall fund balance.

Anderson noted that although claim trends were favorable through 2025, MCIT continues to watch development throughout 2026, particularly in the workers’ compensation division in the area of PTSD claims.

Anderson’s report is the product of a comprehensive actuarial review of MCIT’s:

• Reserving and rate levels
• Net investment income and rate of return
• Claims and operational performance

MCIT is consistent in its message that dividends are never guaranteed, but according to Anderson, the current financial health of the organization remains favorable.
Members will receive notice of their specific 2026 dividend later this month, with dividend checks distributed in November.