Chesapeake Employers’ Insurance Co. has filed for an 8% net rate decrease with the Maryland Insurance Administration (MIA) effective April 1, 2025.
The nonprofit company, which is the state’s insurer of last resort, also announced its highest-ever policyholder dividend of $55 million for 2025. It is the eighth consecutive year that the company has declared dividends for its customers. In 2024, the insurer reported $50 million in dividends and reduced rates by 4%.
“Our unique nonprofit business model enables us to leverage the lowest cost of capital possible to benefit our policyholders by returning the company’s profits to customers in the form of dividends and lower rates,” stated Mark Isakson, the insurer’s president and chief executive officer.
The company said it will begin distributing the 2025 policyholder divided this May. Dividends are based on performance and are not guaranteed. In 2024, nearly 97% of the company’s policyholders qualified for a dividend, according to the company.
For 2023, the company reported a 27.8 loss ratio, down from 48.5 in 2022. For 2023, the company reported that 95% of its insureds reported no workplace injuries. Its combined ratio in 2023 was 96.4.
Chesapeake Employers is Maryland’s largest writer of workers’ compensation insurance with almost 19% of the market, according to MIA. It has served as the residual market insurer since since 1914.
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