For me and the MTM Management Team February is a very busy time. During the first week, we work with our outside actuary to determine profit for the year. This is done by evaluating current report losses, development of existing losses over the future, and estimating losses that we may not yet be aware of. Once the loss evaluation is completed our CFO, Chris Doebler puts together the year-end financial statements. Then on February 4th we have a meeting with the MTM Board Marketing/Underwriting Committee. This committee is made up of 8 shop owners, CFOs, and plant managers. Management presents a dividend recommendation for them to adopt or amend for 2020 results that is paid in March.

On February 11th, the MTM Board Finance Committee met to discuss the financial condition of the company based on the 2020 financial results, evaluate the MTM members dividend recommendation and determine what changes they would like to see. The Finance Committee is also made up of 8 member owners.

Then a week later on February 18th, the full Board of MTM met to hear the three recommendations from management, the Board Marketing/ Underwriting Committee, and the Board Finance Committee. When we are disbursing millions of dollars of MTM members monies, thoroughness is required. So here is the short answer: on February 18th the MTM Board approved a $4.5 million dividend to be paid to member owners with checks to be cut on March 1st. This is the 7th consecutive year of member dividends where $27M has been paid to MTM members.

Of our 950 members, 933 get checks. In case you are wondering, 17 are brand new members who began coverage in 2021 and did not have qualifying 2020 coverage. We will begin delivering the checks on March 1st. We will have them cut the weekend before and we will get them to you as quickly as possible. More than ever, getting this dividend money back to our owners is critical. To give you an idea, the dividends range from 10% at the minimum to a high of 67% of member’s current premium.

Like in the past, the dividend is actually two different dividends. One is a loyalty dividend based on how much premium and how long the member has been with MTM. Dividend number two is based on the three years of loss ratios of each member. This is a larger dividend that goes to members that had profitable results that made the dividend possible for everyone. Like in past years, the dividend delivery team is made up of myself, Megan Brown, VP of Sales and Marketing, and also our Loss Control Representatives.

Last year our dividend delivery was cut short with the COVID outbreak and unknown factors of the virus. We were not sure how we could safely deliver the checks and whether you would open the door for us. We have learned a lot over the last 11 months, and the Marketing Committee recommended as much as possible that we deliver the checks to you in person. They recognize this is a critical member benefit, and making sure that we hand deliver the check to you and thank you for being a member is important. With that we will look forward to seeing you beginning March 1st and to speed the delivery of course we have an intern who groups the checks together so that we can efficiently drop them off and get the money disbursed as quickly as possible. I am looking forward to seeing you soon.

Until then, John.