Mutual Life Insurance, one of the largest insurers in Massachusetts, has announced that it will pay $1.33 billion in dividends to policyholders in 2012. The dividend is a long-standing tradition for the company, extending back to 1860 when it was first introduced. Last year, the company paid out more than $105 million. This year’s large sum is due to a number of factors, including growth in the life insurance market and less competition overall.
The insurer will be doling out the money throughout 2012 to eligible policyholders. Customers that have purchased some of the company’s newer insurance products were given an equitable share in the insurer’s divisible surplus. This will allow customers to share in the success of the company as it grows within its given market. How much each eligible policyholder will received is based on a number of factors, including how long they have held a particular policy and their standing with the company.
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The insurance industry has been rife with growth in recent years, despite a sickly economy. 2011 has been a lucrative year for many insurance companies, enabling them to give back to consumers in the form of insurance discounts and, in the case of Mutual Life, dividends.
Mutual Life policy holders will be able to claim their dividends in a number of ways, including cash payments or using them to pay for premiums in advance.