ALFA INSURANCE DECLARES $20 MILLION DIVIDEND TO POLICYHOLDERS
MONTGOMERY Checks totaling $20 million will be mailed to almost all Alabama policyholders of Alfa Mutual Insurance Company, Alfa President Goodwin Myrick has announced.
In October, the Alfa Board of Directors approved the second-largest company dividend in the company's history.
The dividend checks will be mailed to policyholders next year.
The dividend will apply to more than 600,000 Alfa policies and about 350,000 members of the Alabama Farmers Federation.
The average homeowner policyholder will receive $32; automobile policyholder, $33; and farm owner, $56, Myrick said.
Most Alfa policyholders have more than one policy, and the dividend will be especially significant to those customers, Myrick said. An average policyholder with their home and two cars insured with Alfa will get a total check for almost $100.
The amount of the dividend check to each policyholder will vary, based on 6.77 percent of the amount of annual premium in effect for policyholders of record on Dec. 31, 1997, who have held their policies continuously since Dec. 30, 1994.
"We have had a very successful year, and we want to share some of this success with our policyholders," Myrick said.
The last Alfa policyholder dividend was $18 million in 1993. The largest was $30 million, in 1992. Other dividends declared over the past 20 years were $9.7 million in 1989, $3.9 million in 1985, $4.3 million in 1983, $3 million in 1980 and $5.1 million in 1978.