Members of the property/casualty program will share in a $5.7 million dividend for 2020, bringing the total amount of returned dividends since 1987 to $338 million. Members will receive their share in December.
The Board of Trustees’ decision to return a $5.7 million dividend was based on losses experienced by members, actuarial projections, investment results, legislative and coverage changes, reinsurance costs, and the Trust’s long-term strategic direction. It’s important to remember that dividend amounts are driven by these factors, so the availability and amount of dividends will fluctuate over time.
Reductions in actuarial projections on old property/casualty claims and unrealized capital gains in our investment portfolio helped build our fund balance. This, along with increasing our property and liability reinsurance retentions, allowed us to keep overall property/casualty premium rates flat this year. At the same time, we’ve been able to maintain a fund balance strong enough to hedge against the uncertainty of COVID-19, cyber, police liability, property, and other variables we expect to see from year to year.
In the decades since the Trust was created by Minnesota cities, it has offered broad coverage, stable premiums, and robust loss control programs. As an organization owned and managed by its members, it remains committed to these principles and to helping those members build and maintain strong communities.