ISBA Mutual Insurance Co. policyholders for 2005 will soon receive dividends amounting to 10 percent of the year's earned premiums.

For most policyholders, this will mean a dividend roughly equal to 10 percent of the premiums they paid during 2005. The total amount to be distributed will exceed $1.5 million.

The ISBA Mutual board of directors voted at the Dec. 8 meeting to declare the dividend. Checks will be mailed during February.

A firm must have been insured with ISBA Mutual on Dec. 31, 2005, to qualify for a dividend. Firms insured with ISBA Mutual on this date, but not for the entire calendar year, will receive prorated dividends.

This is the second time that ISBA Mutual has voted to pay a dividend. A 7.5 percent dividend was declared for 2000 and was paid in 2001.

Board chair Ronald J. Guild of Chicago has been involved with the company since he served on the ISBA committee that recommended its formation in the mid 1980s. He was one of the company's incorporators and is a charter member of the board.
Guild said it has been wonderful to witness the company's progress over the past 17 years. He is pleased that the company has achieved the financial position that affords paying a significant dividend.

Guild credited the continuing loyalty of the many ISBA members who are insured with ISBA Mutual for the company's success.

Jon W. DeMoss, ISBA Mutual president and CEO, noted that the company had experienced a good year financially, due largely to successes involving claims. The company continues to aggressively defend its policyholders and does not hesitate to try appropriate cases.

ISBA Mutual will end the year with approximately $15.5 million in gross written premium and $19 million in policyholder's surplus. The company is rated A- (excellent) by A. M. Best.

The company exists solely for the benefit of its policyholders, DeMoss pointed out. Payment of the dividend is one additional way of giving something back to the profession.

Founded in 1988, ISBA Mutual is the endorsed professional liability insurance company of the Illinois State Bar Association. Coverage is available exclusively for ISBA members.