Laserfiche WebLink
As shown in the chart below,there's been some considerable variation in the amounts of the <br /> dividends that LMCIT has been able to return to members in recent years. That variation is to be <br /> expected. Over the past several years,we've increased the amount of risk that LMCIT retains, and <br /> reduced the amount of risk we cede to reinsurers. That reduces reinsurance costs,which in turn <br /> helps reduce the cost to cities. But because we're retaining more risk, it also means that LMCIT's <br /> net loss costs will be more variable from year to year. That in turn means that the amounts that are <br /> available to return as a dividend also will be more variable from year to year. And of course <br /> there's never a guarantee that there will be a dividend at all. It all depends on what the losses turn <br /> out to be. <br /> LMCIT Dividends <br /> $202 Million Since 1987 <br /> $25,000,000 <br /> $20,000,000 L. ties 3 f �t �,( <br /> k x t <br /> h� f� L �ce t � (h � r� , � z) �, i tt« . }if l��iy th 7 �'74 ,� �t: <br /> $15L ..i u �' ' ;{!a '+..,oaf.i* w '� �� +,�, a y i <br /> ,000,000 W i ' 1 l; d��c':T� l'`t r£ r„�..4.6;.}'1'1 1"�Z �`;''fe er tf;'.�i'a :iP HI` s 5'.A'na� i '�'' <br /> /� //�� tea c7 " ^� �;7r'ej' �•r-1�� 5' ae s * �"A ?l <br /> $10 000 OOV $t �kJ � £ ze�a � �C t ,:, al ;G ate t�x <br /> t t )'L"�3 i. f �=: x � 4t 1 J ;..... S' <br /> } y Y (y Y <br /> $5,000,000 <br /> $o <br /> '87'88'89 '90'91 '92'93'94'95'96'97'98'99'00'01 '02'03'04'05'06'07 '08 <br /> • <br /> ■Property/casualty 0 Work Comp <br /> We'll continue as always to try to keep premium rates as stable as possible and to avoid sudden <br /> shock increases in costs for cities. But while LMCIT can hopefully keep premium costs <br /> reasonably predictable for cities at the front end,the inherent variability in loss costs means that ' <br /> the dollars available to be returned as dividends are going to vary from year to year. <br /> Questions or comments? <br /> If you have questions or comments, feel free to contact Pete Tritz, LMCIT Administrator,at <br /> ptritz @lmc.org or 651-281-1265;Ann Gergen, LMCIT Associate Administrator at <br /> agergen @lmc.org or 651-281-1291; or Laura Honeck,LMCIT Program Assistant at <br /> lhoneck @lmc.org or 651-281-1280. <br /> 4 <br />