The Pennsylvania Mutual Life Insurance Company has announced its plans to pay its participating policy holders $41.2 million in dividends an increase of 24% vs last year's total dividend payout. The company cited its strong financial performance and commitment to policyholders as the driver behind this dividend increase. This will be the fifth consecutive year that the total dividend payout has increased.
New Dividend Scale?
Penn Mutual has held its dividend scale steady for the last six years. This year there will be a change, and it requires a little explaining.
For policies issued prior to 2005 the dividend scale will increase. For policies issued after 2005, the dividend scale will remain the same at 6.34%.
Why Two Different Scales?
According to information Penn Mutual made available to its agents and brokers the increase for policies issued prior to 2005 was driven “primarily by improvements in mortality.” This would suggest better than anticipated underwriting profits, which are returned to policy holders through the dividend.
CLICK HERE TO SEE PENN MUTUAL'S PRESS RELEASE