Not that I’m complaining. And the obvious smart-ass answer is because my company (USAA) rocks. But why should I get a dividend check at all? Do most customers of insurance companies get such checks? I mean, I’m not involved in any sort of life-insurance-investment with them, so I didn’t enter into this relationship expecting to get dividends. What gives? Why don’t they just keep the cash for themselves? Is it because USAA is military-affiliated, and not quite as for-profit as other insurers?
IIRC, essentially this is paying you back for insurance premiums charged in excess (their payouts were less than anticipated for the premiums charged, so they “give you back” a small percentage of the overage). They don’t have to do this, so I consider this a plus – they do get to use your money interest free though until they give it back. I too have used USAA over the past 25 years, for some or all of my insurance needs; their premiums are occasionally higher than other companies I’ve used - maybe that’s why they consistently pay back a dividend?
Whatever, its always welcome to get an unanticipated check in the mail.
There are several different kinds of companies- whther you get a return of premium depends on the way the company is set up. USAA is one that returns a percentage of your premium to you at the end of the year. How much depends on their lossess for the year.
Very few insurance companies do this anymore.
I got mine the other day. I love USAA.
Do you have a very good claims record i.e. none, or very few claims? Perhaps it’s some type of no claim bonus. In Australia these are given to policyholders in the form of premium discounts, but I remember being told once that some US insurers paid the amount directly as a rebate to the policyholder.
The reason for the dividend check is that USAA is what’s known as a ‘member owned’ or mutual company. Any profits at the end of the year is divided between the members and is reflected as a percentage of the premiums paid during that year. So it appears in the form of a partial refund. (one year with them I got 25% of my premium back). Other companies are stock owned and the profits go back to the shareholders rather than the members. But you are right about one thing, USAA does rock. 
oh, FTR, I am a licensed insurance agent with 10 years in the business.
Russell
Yup. AAA almost always has one too. They will either send you a check or credit it towards the next year.
Also New Jersey Manufacturers Insurance Co. for the same reason Antinor01 said. It’s really nice to get that couple of hundred dollars early Christmas present each year.
USAA is awesome! Unlike OslerKnew USAA has always been consistently lower in price than any other insurance company. I get a reminder of how great they are when my friends complain about insurance rates almost double mine with less coverage.
This is the smallest dividend check that I can remember 
O, well. 2005 and 2004 were their worst years ever in terms of losses. Stupid hurricanes.
Antinor01’s explaination is spot on (I am also a licensed insurance agent. Actually an underwriting analyst, but my license is current:)).
I got my check yesterday. USAA pretty much owns me. They have my home and auto insurance, my bank account and my auto loan. I’ve used them as a travel agent, and I think they have a piece of my DNA in case they need a saxophone playing snowboard instructor for their clone army. It’s a great company.