More Good News for CompSAFE Members… An Earned Share in a $140 Million Dividend*
On the heels of news that premium discounts will be in effect for CompSAFE members in the 2016-2017 plan years comes even more good news. At its September meeting, SAIF Corporation’s Board of Directors reviewed SAIF’s financial results and declared a dividend payable during October to more than 46,000 eligible policyholders with policy expiration dates in 2015.
A $120 million primary dividend will be paid to all eligible policyholders based on their premium, and a new, $20 million safety performance dividend will be paid to those with paid-to-standard loss ratios below 80%. About 95% of SAIF’s policyholders are eligible for the safety performance dividend.
This is the seventh year in a row SAIF has returned a substantial dividend to its customers, but it’s the first time since 2000 SAIF has rewarded safety performance through a dividend. The safety component will be distributed on a graduated scale based on the policyholder’s losses and premiums, with the greatest amount paid to those with the best safety results as measured by paid losses to standard premium.
Together, the dividends represent a return of approximately 22 to 26 percent of premium that eligible customers paid in 2015. The dividend is possible because of SAIF’s overall financial results, including investment returns and favorable trends in claim costs.
OBI members participating in the SAIF OBI CompSAFE group programs will receive approximately $4.3 million in primary dividend and $700,000 in the safety performance dividend. Dividend checks are slated to be mailed the week of October 17, 2016.
*Oregon law prohibits insurers from promising policyholders dividend payments for unexpired policy periods. You may not infer that past payment of dividends is an indicator of future dividend payments.