Financial service provider Guardian Life Insurance Company of America, on Tuesday, said its board approved a dividend allocation of $1.40 billion to its participating policyholders in 2024, while increasing its dividend interest rate (DIR) to 5.90%.
The firm has shown a consistent increase in its DIR, where in 2022, it was 5.75%, and rose to 5.85% in 2023, with reason to innovation, internal culture and customer satisfaction.
Guardian said this is the largest dividend payout and it also paid $7 billion in benefits to policyholders the previous year. Additionally, the insurance company said it is holding composite Comdex score of 99 putting Guardian in the top 1% of insurance companies based on claims-paying ability.
A participating policy is an insurance contract that pays dividends to the policyholder, stated Investopedia. It is essentially a form of risk sharing, in which the insurance company shifts a portion of risk to policyholders.
“Guardian’s record dividend allocation reflects our strong business strategy, commitment to our purpose of inspiring well-being, and our unwavering legacy of financial strength and mutuality, we are proud of these results and our ongoing track record of upholding our commitments each year,” said Andrew McMahon, chief executive of Guardian.
“We are investing in technology and digital experiences, delivering new products and services, and leveraging artificial intelligence (AI) to accelerate business growth and deliver the modern experience consumers expect,” added McMahon.
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