|
FOR IMMEDIATE
RELEASE
LOUISVILLE, KENTUCKY: Kentucky Farm Bureau Mutual Insurance Company will
pay a 6 per cent dividend on more than a million of its auto and property
policies following approval of the payment today by the company’s
Board of Directors.
The dividend, the first to be issued by Farm Bureau in 17 years, will
have a value of approximately $38 million, and will be paid on all eligible
mutual auto, homeowners, farmowners and mobile homeowners policies in
effect on December 31.
The dividend distribution follows more than $40 million in rate reductions
and safe driving discounts that were implemented for Farm Bureau’s
auto policyholders earlier this year. Both actions have been made possible
by the company’s improved profitability and more favorable claims
performance over the past two years.
In announcing the dividend payment, Farm Bureau Insurance Executive Vice
President Roger Simpson says the checks will be mailed to policyholders
by March 1. He says he expects more than half a million checks will be
written to cover dividend payments to approximately 1,017,000 policies.
Those checks will be bundled for Farm Bureau insureds with more than one
policy.
Simpson says payment of the dividend by Farm Bureau Insurance is a sound
business decision that balances current profitability with the need to
maintain sufficient reserves for future claims payments.
“Kentuckians have been fortunate this year and we have not experienced
the level of severe weather and property damage suffered in many other
states,” Simpson said. “That favorable experience has made
it possible for us to provide rate relief and now this dividend payment
at a time when many Americans may be facing increases in their insurance
premiums.”
-30-
|
