If the League of Minnesota Cities Insurance Trust’s fund balance reaches a level where it’s more than sufficient to pay claims and plan for contingencies, the Trust is able to return funds to the members. The Board of Trustees undertakes this evaluation every year based on losses experienced by members, actuarial projections, investment results, legislative and coverage changes, reinsurance costs, and the Trust’s long-term strategic direction.

How much will the Trust return to members this year?

The property/casualty program will return a total dividend amount of $10 million to members this year. Dividend checks will be mailed to members in mid-December of 2022.

The Trust’s property/casualty program has returned dividend checks to members every year for the past 35 years. Since 1987, the property/casualty program has returned a total of $315 million in dividends, and the workers’ compensation program has returned an additional $38 million.

Is there any pattern or trend to the amount of dividend to expect in the future?

Members should not include dividend returns in their yearly budget projections, since the amount will fluctuate from year to year based on the factors described above. The amount of a given year’s dividend return has no bearing on the amount returned the following year.

Key elements of the dividend formula:

  • Dividends are distributed only to cities and other entities that are members as of Dec. 1 in the year the dividend is being returned. Former participants do not share in the dividend distributions.
  • Each member’s share is proportionate to the difference between the member’s total premiums and total losses as of May 31 for the past 20 years.
  • Individual losses are capped at the lesser of $200,000 or 200% of the member’s annual premium for the year of the loss.