Board Announces Distribution to Members
Posted: Monday, February 21, 2011
At its February meeting, the MMRMA Board of Directors approved a $19,660,124 excess net asset distribution for the benefit of the membership. The Board also approved the 2010 Net Asset Policy Report, including the results of the most recent capital adequacy analysis, which determines the necessary net assets needed. This will be our fifth distribution of excess net assets to members. With this distribution, MMRMA has distributed almost $57,000,000 to its renewing members since 2006.
As in prior years, distributions will be provided to current renewing members. Based on the distribution rules adopted by the Board, most members will receive their share of this distribution following their membership renewal. The allocation will once again be based on (1) prior year continuous membership, (2) prior year general fund contributions, and (3) loss experience.
The Board also adopted a plan to allocate an additional $9,830,062 in excess assets for short and intermediate term rate reductions. The impact of this action will vary on a member by member basis taking into consideration changes in exposure, loss experience and other underwriting criteria. The purpose of using a portion of excess net assets for rate reduction is to ensure predictability and stability in contributions for current members and to attract new members.
« Return to What's New Page
