FEM Awards R1,035 million once off special merit rebates
At a Special General Meeting held on 19th October 2016, shareholders of the Federated Employers Mutual Assurance Company (RF) Propriety Limited (FEM) approved a distribution of R1,035 million to qualifying policyholders in respect of a once-off special merit rebate scheduled to be paid before the end of November 2016.
The purpose of the payment was reduced the Company’s accrued surplus and thereby align its capital position to board-approved long term strategic targets and to recognise and reward those policyholders who have made positive contributions due to their focus on health and safety.
Whereas annual merit rebates are determined based on policyholders underwriting results in each particular year, the special merit rebates were designed to recognise policyholders’ contributions to the company’s underwriting profits over the long-term. Consequently, the principles applied to determine policyholders’ qualification for the special merit rebate and their individual allocations are similar to those used for the annual merit rebate calculations, but have been adapted to cater for the longer calculation period applicable and is directly related to health and safety performance.
Relevant details of the main qualifications and allocation criteria applicable, including the period in respect of which calculations were performed can be found on FEM’s website at:
http://www.fema.co.za/media/1159/fem-notice-of-general-meeting-19-october-2016.pdf