Member Dividend Program

Public Entity Partners was formed in 1979 as a not-for- profit, risk sharing pool that provides risk management products and services to governmental entities in Tennessee. One way we live out our commitment to members is to return excess net surplus in the form of a dividend. Since the program was created in 1996, our members have received over $140 million in member dividends/ surplus returns.  This directly benefits local governments across the state of Tennessee.

When our board declares a dividend, it is based on a number of factors, including the loss performance of all PE Partners’ members during the prior year and each member’s historical loss ratio. Each member can have a direct impact on the overall dividend returned through effective risk management programs. When our members outperform actuarial loss projections and have fewer losses than anticipated, our board is able to declare a dividend.

In order to qualify for a dividend your organization:

•   Must be a current member of PE Partners;
•  Must have paid premium in the prior fund year; and
•  Must have an all year’s loss ratio of less than 100%, meaning PE Partners cannot have paid more in claims to your organization than you have paid in premium.

Other factors that are included in each member’s dividend calculation include the length of time your entity has been a member of Public Entity Partners and the overall amount of premium your organization contributes.

While it is the desire of Public Entity Partners to declare a dividend each year, please remember the dividend is not guaranteed.  A dividend being declared is dependent on whether or not our membership – the cities, towns and local agencies of Tennessee – are able to control their losses and perform better than actuarial projections.

Because the dividend is not guaranteed, we strongly recommend that it not be included in premium comparisons (nor in next year’s budget projections) and not be confused with rate changes. 

As a risk-sharing pool, we are in this together and we offer the dividend as part of our commitment to encourage effective risk management programs.