On Monday, March 22nd, I completed my deliveries of the 2021 dividend checks. As a refresher, the MTM Committees and Board of Directors met in February to review the profits from 2020 and then decides how to spend those profits. As has been the case for the last six years, the Committees and Board of Directors, which is made up of shop owners, shop CFO’s, and administrative managers, decide quickly to return the profits to the MTM Member Owners. That has been the consistent answer for the last six years. This year, the Board declared a dividend of $4.5 million. There was actually three parts of that dividend declaration:
- A dividend of $1.6 million allocated to all members.
- $2.4 million that goes to members that had a three-year loss ratio that was outstanding, i.e. they’re the ones that made the profit for the year.
- $500,000 that is used to make sure that every member gets a minimum dividend of 10%.
Of our members, 98% received a dividend check. Only members that had new policies beginning on January 1, 2021 did not receive a dividend. More than usual, management knew getting the dividend monies to members quickly was critical this year. Our members need the money immediately and the good news of the dividend check that’s delivered six weeks after the check date would lose some of its luster. Therefore, the goal was to have the checks delivered in three weeks from the March 1st print date. This required more MTM staff to meet the rush delivery timetable. There were some checks that were mailed, but most checks were hand delivered. In three weeks I drove 3,042 miles on the rental car to make that happen. Even with COVID restrictions, I can report that no one turned me away, in fact I received warm greetings from MTM members.
We hope your dividend check shows your value of being an MTM policyholder. Even as we celebrate our 45th year of operation, we know every day we must earn the trust and value for MTM members. While it’s way too early to make predictions for how 2021 will look, I can report that with the first three months’ data completed, we have a good start for the dividend next year. I can also report that a few of us in the office have already gotten our vaccine shots and as you heard from your friends and family, the side effects we can report were mild. I had a few chills the night of the shot, but very minor in nature and no effect the next day. We are anxious to get back to whatever our new normal is and getting to see you on a regular basis including our annual meeting in October. Please be safe and enjoy the spring weather.
— John
