Financial Strength and Stability
One of the cornerstones of NIRMA is its financial strength and stability. In fact, an independent risk management consulting firm has said NIRMA is one of the most financially secure governmental pooling programs it has ever examined and ranks among the nation’s leaders in operating practices and financial stability.
Our management practices are quite simple. Follow sound, conservative business principles, always be mindful of current market trends and conditions, and keep abreast of potential pitfalls that could impact the pool and our members.
To ensure the financial stability and integrity of the program, the NIRMA Board of Directors has established that a Member Fund Balance – the equity owned by our members – be maintained at a level of not less than $10 million. The Member Fund Balance has consistently exceeded that level.
Another important feature is our clearly-defined investment policy which ensures the program’s assets remain safe, provides sufficient liquidity to meet cash flow needs and pay claims in a timely manner, and seeks an appropriate rate of return on investments.
Member Funds
Among the notable components of NIRMA’s financial stability and success is the Member Fund Balance, or the equity members have in the program.
NIRMA started in 1988 with nothing in the bank. But through prudent risk management and the careful investment of what monies were available, the equity began to grow. This is our members’ collective share!
The following will give you an idea of how the program’s surplus has grown over the years. This has been accomplished even as the amount of dividends issued by NIRMA has grown during the same time.
Member Funds as of December 31
| Date | Amount |
|---|---|
| 2023 | $35,768,647 |
| 2022 | $35,263,889 |
| 2021 | $39,169,325 |
| 2020 | $37,342,687 |
| 2019 | $35,791,565 |
| 2018 | $35,205,085 |
| 2017 | $31,823,004 |
| 2016 | $29,851,051 |
| 2015 | $29,868,259 |
| 2014 | $24,960,887 |
| 2013 | $23,699,528 |
| 2012 | $21,327,662 |
| 2011 | $19,045,688 |
| 2010 | $19,625,929 |
| 2009 | $20,294,250 |
| 2008 | $22,472,660 |
| 2007 | $21,247,182 |
| 2006 | $18,128,575 |
| 2005 | $17,834,714 |
| 2004 | $14,304,173 |
| 2003 | $13,174,687 |
| 2002 | $14,889,757 |
| 2001 | $14,860,020 |
| 2000 | $14,081,320 |
| 1999 | $14,727,650 |
| 1998 | $14,716,950 |
| 1997 | $13,099,030 |
| 1996 | $12,020,550 |
| 1995 | $8,428,737 |
| 1994 | $6,916,222 |
| 1993 | $4,884,480 |
| 1992 | $3,722,365 |
| 1991 | $2,457,837 |
Dividends
Dividends are a special feature and benefit of pooling. Unlike many traditional insurance companies, which retain unused premiums and investment income as profit, NIRMA is a nonprofit organization. This means unencumbered monies that remain available after the payment of claims and general operating expenses are returned to our members/owners, not outside investors and shareholders.
| Month | Members | Amount |
|---|---|---|
| December 2023 | 90 | $350,000 |
| October 2023 | 90 | $650,000 |
| October 2022 | 89 | $500,000 |
| October 2021 | 89 | $1,000,000 |
| October 2020 | 89 | $1,000,000 |
| October 2019 | 87 | $1,000,000 |
| October 2018 | 86 | $1,000,000 |
| December 2017 | 86 | $751,173 |
| October 2017 | 85 | $1,250,000 |
| October 2016 | 85 | $1,000,000 |
| October 2015 | 85 | $1,000,000 |
| December 2014 | 83 | $398,827 |
| October 2014 | 84 | $600,000 |
| October 2013 | 82 | $1,117,328 |
| October 2012 | 80 | $640,156 |
| December 2011 | 78 | $393,864 |
| October 2011 | 79 | $600,000 |
| August 2010 | 77 | $750,000 |
| February 2009 | 76 | $1,498,652 |
| February 2008 | 70 | $788,448 |
| February 2007 | 67 |
$500,000
|
| February 2006 | 72 |
$1,000,000
|
| February 2005 | 64 |
$500,000
|
| February 2004 | 52 |
$500,481
|
| February 2003 | 65 |
$1,000,000
|
| July 2002 | 56 |
$400,000
|
| February 2002 | 56 |
$400,000
|
| February 2001 | 56 |
$1,000,000
|
| February 2000 | 57 |
$500,000
|
| December 1999 | 62 |
$1,000,000
|
| February 1999 | 47 |
$528,000
|
| February 1998 | 47 |
$420,000
|
| May 1997 | 47 |
$311,493
|
| December 1996 | 57 |
$264,998
|
| February 1996 | 47 |
$367,000
|
| February 1994 | 46 |
$392,398
|
| August 1991 | 39 |
$127,182*
|
| Total Returned | $22,000,000 |
* = NIRMA/NIRMA II returned $127,182 as credits against the forthcoming year’s premium in the form of retrospective premium adjustments.
