Montana State Fund Declares Historic $35 Million Dividend

November 23, 2015

Approximately 23,000 qualifying Montana State Fund (MSF) policyholders will share a $35 million dividend – the equivalent of a 27% retrospective rate reduction. This is the largest dividend ever distributed by MSF. The board of directors announced the historic dividend at their November 20, 2015 board meeting. This is the seventeenth consecutive year a dividend has been declared.

The dividend returns a portion of premium back to those policyholders who have made a commitment to provide a safe workplace for their employees and in turn lower injury rates. It is an incentive to focus on safety, said Laurence Hubbard, President-CEO of Montana State Fund. We commend those policyholders and their employees for being a part of the solution and working with us to efficiently manage claims, implement proactive return to work programs and reduce overall workplace accidents. It would be an added benefit if employers use these dividends to recognize their employees efforts to work safely.

MSF Board Chair Lance Zanto added, Besides being an added incentive to those employers who focus on safety, this is money that stays in Montana and is reinvested to benefit their businesses, employees and communities.

Hubbard explained that the historic dividend is due not only to improved workplace safety and return to work programs, but prudent financial decisions of MSF management and strong investment performance. Hubbard said, A dividend is never guaranteed from year to year. If circumstances warrant, the board can choose to not declare a dividend or declare a smaller dividend.

Since 1999, Montana State Fund has returned $141 million in general dividend payments to deserving policyholders. Policyholders that meet the criteria for a dividend will be notified in mid-December and will receive their payments in early January 2016.