California Auto Club to Return $109 Million in Dividends to Auto, Boat Insureds

The Automobile Club of Southern California says it will return $109 million through dividends to auto and watercraft insurance policyholders in 1999, matching its 1998 dividend payout.

The $109 million dividend distribution matches the record high for the company, set last year. Dividends will average $136, and will be paid either by a credit to current members' accounts or by check as policies come up for renewal. The Auto Club has paid more than $457 million in dividends to policyholders since 1990.

"We are delighted that lower claims costs have allowed us to once again return money in dividend form to our members," said Thomas McKernan, Auto Club president and chief executive officer. "Good driving habits, less fraud and fewer court cases really can result in lower insurance costs. As a not-for-profit company, we are able to pass these savings directly to our members rather than giving them to stockholders in the form of profits."

The latest dividend announcement from the Auto Club comes in addition to a 25% reduction in auto insurance premium costs over the past five years, resulting in a $700 million savings for its members.

The Auto Club began returning dividends to auto insurance policyholders in 1913, one year after it began offering insurance to members. Dividends for that year were $15,000. Since 1990, the following dividends have been distributed to Auto Club policyholders:

1990 ----- $37 million

1991 ----- 81 million

1992 ----- 41 million

1993 ----- 51 million

1994 ----- 42 million

1995 ----- 44 million

1996 ----- 64 million

1997 ----- 100 million

1998 ----- 109 million

1999 ----- 109 million