On June 8, 2012, the BETA Council approved the third special dividend in the past 24 months bringing the total to $33.7 million. “This action by the BETA Council exemplifies our continued commitment to members to offer fair rates and return dividends when deemed appropriate,” said Tom Wander, BETA‘s CEO. “The special dividend will result in an additional payment of $10 million to our members beginning in August 2013, and will be paid out in four equal quarterly installments. These payments are in addition to the renewal dividend BETArma has had in place for many years, which in 2012 is $6.3 million. Thanks to outstanding financial results and the continuation of positive claim trends, we expect the BETA Council to continue this special dividend policy over the next few years. After declaring this special dividend, BETArma still has $40 million on its balance sheet designated for future dividends.”
To be eligible for dividend consideration, a member must do two things: 1) renew each coverage contract with BETArma on July 1, 2013 with similar contributions, scope and terms to that purchased for the 2012 contract year, and 2) be a BETArmamember in good standing when each of the quarterly dividend checks is issued.
The special dividend amount will be based on a member‘s claims experience valued as of December 31, 2012 for the HCL, D&O and Auto coverage contracts from 2003 through 2011. A member will not be eligible for a special dividend if its incurred loss ratio (claims costs paid and reserved divided by contributions for the primary limits of coverage) for the nine-year period exceeds 85% or if its incurred loss ratio is greater than 85% for all years that a member has been in BETArma.