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Dividend Redux
For the second straight year, the Medical Mutual Board of
Directors has voted to declare a dividend payable as a premium
credit to eligible policyholders in Maine, New Hampshire and
Vermont. This year’s dividend, which aggregates approximately
$3,907,000, was announced to policyholders in a letter from
Company President and CEO Terrance J. Sheehan, MD dated
March 14, 2008.
Dividend phenomenon sets Company apart
Sheehan said the dividend was made possible by the continued
moderation of incurred losses resulting in significant draw-downs
from claim reserves from prior years. He also took the opportunity
to note that, "No other carrier operates as a mutual company
in Northern New England. And no other such company in the
region has ever returned funds like this to its insureds."
In an email to Medical Mutual VP of Marketing and
Corporate Communications, John Doyle, congratulating him on
the Company’s news, John Marzinzik, VP Finance/CFO of Frisbie
Memorial Hospital in Rochester, NH, echoed Sheehan’s characterization
of Medical Mutual as being unique. "With such a tough
economy, healthcare being beat up from every angle imaginable,
this is really a great statement to everyone involved, that Medical
Mutual is really in a class all by itself," wrote Marzinzik.
Policy tenure, claims history determine individual dividends
The dividends will be issued to physicians and surgeons, hospitals,
nursing homes and allied health care facilities that: 1) have an
active policy on July 1, 2008 and 2) had an active policy in effect
on December 31, 2007. In addition, to qualify for the portion of
the dividend attributable to favorable claims experience, active
insureds must also have had an active policy in force on
December 31, 2004. The dividend will be credited to each policyholder’s
premium as a lump sum upon the renewal of policies
with effective dates after June 30, 2008.
The $3,907,000 dividend — the Company’s eighth dividend declaration since 1991 — raises the total funds returned to policy- holders by the Company since then to $23 million.
Medical Mutual’s recently-declared dividend of approximately $3,907,000 is its eighth since 1991 for a grand total in excess of $23 million in funds returned to policyholders over the years.