Dear Valued Policyholders,

I am pleased to report that we met our internal metrics, enabling our Board of Directors to declare a nearly $1 million policyholder dividend.  This dividend, which represents approximately 5.51% of your final 2025 policy premium, will be paid in 2026 at expiration of your 2025 policy.  Including this year’s dividend, policyholders will have received dividends totaling nearly $16.20 million over the last 15 consecutive years.  As you’ve heard me say countless times, policyholder dividends are a major benefit of being insured by a mutual insurance company.  When we do well, we are able to share our financial success by returning capital in the form of policyholder dividends.

The concept of mutual (policyholder-owned) insurance companies has been around since at least the late 17^th century when mutuals were first formed in England.  The first U.S. mutuals were created by farmers and property owners looking to share risk.  The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire, the longest tenured insurance company in the U.S, was founded in 1752 by Benjamin Franklin and fellow firefighters.  You might ask, “why mention the history of mutual insurance?”  Because, this history provides proof of the durability, stability, and sustainability of the concept, which is based primarily on the alignment of management and policyholder interests (decisions are made for policyholder benefit) and a long-term focus (rather than Wall Street’s quarter-to-quarter view).      

As always, thank you for letting Lawyers Mutual be your trusted legal malpractice insurance provider. 

Daniel M. Zureich
President and CEO