APEI members all recently received a surprise in the mail, a dividend from APEI. Due to exceptional investment returns and continuing positive claims development, the APEI Board of Directors recently faced the enviable task of deciding whether to reduce insurance prices for next year or issue dividend checks. The board elected to do both.
As a result, APEI mailed checks totaling almost $700,000 to members in April. In addition, APEI allocated a similar amount toward a reduction in the 2010-2011 policy year premium, which resulted in an average reduction of five percent on each member’s overall premium bill. Although changes in property values, payroll, and loss records all impact a member’s rates, this “credit” lowered everyone’s premium bill from what it would otherwise have been.
Although this is the first dividend issued by APEI, at the 2009-2010 policy renewal in June 2009, a similar premium credit reduced each member’s premium. Although it is impossible to predict the future, APEI’s strong investment returns through this fiscal year, continuing positive claims records, and overall excellent financial health give us confidence that dividends and premium credits will become a regular and welcome addition to the APEI program.