Policyholder ownership not only drives LAMMICO’s operating principles, but it also results in financial returns on our insureds’ partnerships with the company. On December 4, 2019, the LAMMICO Board of Directors declared a 5% dividend, marking the 13th consecutive dividend since 2008.
Dividends are determined based on favorable operating results including the development of claims from past years. In 2019, it was determined that the company’s loss experience for prior years was more favorable than originally estimated, which resulted in a reduction to the company’s claim reserves. LAMMICO is passing these savings on to policyholders in the form of a dividend. A dividend will not jeopardize LAMMICO’s ability to pay potential future claims. LAMMICO remains committed to returning the exceptional financial results to our policyholders.
This dividend will equal 5% of the LAMMICO written premium to policyholders of record (excluding medical student and tail policies) as of December 4, 2019. This totals approximately $2.75 million and brings the total amount of dividends returned since 2008 to more than $60 million. The dividend will be paid to individuals, groups and healthcare facilities holding a LAMMICO policy in force as of December 4, 2019. Dividend checks will be distributed during the first quarter of 2020.
This dividend announcement applies to eligible LAMMICO policyholders, not the insureds or clients of LAMMICO subsidiary or affiliate companies. To learn about these companies, click here.
Important Note: Changing the Recipient of the Dividend Check
LAMMICO will make all dividend checks payable to the policyholder unless LAMMICO is otherwise notified. Some insureds request that dividend checks be made payable to entities other than the named policyholder. If a policyholder wishes that the dividend check be made payable to someone other than the named policyholder, legal written documentation is required.
If this dividend check should be issued payable to a group / hospital / employer / corporation / individual other than the named policyholder, please download the 2019 Dividend Payee Form. All forms should be completed and submitted to LAMMICO no later than February 1, 2020. Please return the form to LAMMICO via email to Sherri Pitre at firstname.lastname@example.org (preferred), fax to 504.841.5301 or mail to LAMMICO, attention: Sherri Pitre.