ISBA Mutual pays dividend for fourth straight year

ISBA Mutual Insurance Co. policyholders received dividend checks in February for the fourth consecutive year.

Jon W. DeMoss, ISBA Mutual’s president and CEO, explained that this year’s dividend amounts to seven percent of earned premium for 2008, so most policyholders received checks equal to that amount on premiums they paid last year.

To date, ISBA Mutual has returned approximately $6.4 million to its policyholders in the form of dividends.

Robert K. Downs, the company’s board chair and an ISBA past president, noted that ISBA Mutual is celebrating its 20th year of service to the profession. Since issuing its first policy on Dec. 1, 1988, the company has experienced steady growth and improving financial strength.

A significant milestone was marked in April 2008, when A.M. Best upgraded the company’s financial strength rating to “A” (Excellent) and gave it a stable outlook for future ratings.

This rating and outlook were affirmed by A.M. Best in November 2008, at a time when many insurance companies are facing downgrades and negative outlooks.

ISBA Mutual ended the year with almost $25 million in policyholders’ surplus and approximately $55 million in total assets.

Unlike many insurance companies, ISBA Mutual has not experienced a decline in the value of its investment portfolio. Investments are important for the generation of income that contributes to the payment of dividends.

The company defended its policyholders in 11 trials last year, five of which went to verdict. All five verdicts were in favor of ISBA Mutual policyholders. The other cases were disposed of on motions in favor of policyholders or settled on favorable terms.

ISBA Mutual continues to work closely with the Illinois State Bar Association. In addition to sponsoring many worthwhile ISBA activities, ISBA Mutual is a full partner in providing Fastcase online research free of charge to all ISBA Members.