News

$7 Million Dividend Declared for Members

August 05, 2022

Dollar sign near envelope on white background.During the MCIT Board of Director’s July meeting, Scott Anderson of Actuarial Advisors, presented the results of the annual dividend analysis. It considers past performance of both the property/casualty and the workers’ compensation divisions, focusing on claim and reserving results, as well as MCIT’s investment portfolio performance. Upon conclusion of the report, the board voted to return a total of $7 million to members in good standing in 2022.

The board places the highest priority on maintaining the organization’s financial integrity and fully funded status, declaring a dividend only when it is fiscally sound and financially prudent.

The 2022 dividend is fully allocated to the workers’ compensation division that produced better-than-expected claim results in 2021.

No Excess Funds for PC Dividend

For the first time since dividends were first declared in 1991, the board was unable to support a dividend in the property/casualty division. Primary contributing factors include the continuing escalation of claim costs arising from law enforcement and jail operations and the corresponding increase in the cost of reinsurance.

Anderson clarified that there is not a cause for alarm in the property/casualty division, as MCIT’s financial condition remains strong, with contribution sufficient to cover all operational costs and exposure to risk.

However, claims for the division have not been better than expected, which affects the amount available for dividend consideration.

Dividends Distributed in November

Members will receive notice of their specific 2022 dividend later this month. Dividends will be paid to members in November.