At its December 9, 2022 meeting, NEIL’s Board of Directors approved a Policyholder Distribution of $150 million, with $127.5 million being allocated based on each Member’s Policyholder Insurance Record and $22.5 million being allocated based on the Members’ Earned Premium Ratio. Policyholder Distributions are a primary element of NEIL’s Financial Vision to maintain sufficient financial strength while sharing financial returns with the Membership. The level of this year’s Distribution reflects NEIL’s commitment to delivering targeted and sustainable financial returns to the Membership. It takes into account the challenges to, and volatility in, investment returns during the year but also reflects the positive underwriting performance experienced. This Distribution brings our six-year financial return total to $2.6 billion.
Given a forecasted year-end Policyholders’ Surplus of $3.7 billion (post-Distribution), NEIL’s Leadership supported the declaration of the Distribution and remains committed to the Company’s goal of financial return sustainability while meeting Surplus targets. As in previous years, the Board’s approval of the Distribution is subject to there being no material adverse events.
Policyholder Distributions will be paid directly to Members by March 24, 2023.