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.