Thrivent announced a record dividend to be distributed in 2023, thanks to our strong surplus position. What does that mean for you?
Thrivent plans to return an estimated $400 million in dividends and credited rate enhancements to eligible clients in 2023. Approved by the Thrivent Board of Directors last fall, this is a 37% increase over 2022 and an all-time high for Thrivent.
“Thrivent’s financial strength and disciplined management philosophy have put us in a strong surplus position,” says David Royal, Thrivent chief financial & investment officer. “While dividends are never guaranteed, Thrivent has paid them every year since 1913. We credit our continued financial strength and stability, despite market volatility, to be able to pay dividends so consistently.”
What are dividends?
$292M dividends paid to clients who own eligible insurance products.*
How are dividends determined?
Every year, the Thrivent Board of Directors reviews the organization’s surplus and determines how much to set aside for needs like future claims and organizational growth. “It’s important that we protect our ability to meet ongoing and future claims and other obligations over the long term,” Royal says.
The board then determines how much of the surplus should be distributed as dividends. The dividend allocation is based on a number of factors, including how Thrivent policies performed across factors including:
- The number of insurance claims paid compared to how many we expected to pay.
- Performance of underlying investments.
- Cost to do business vs. what was anticipated.
Who receives dividends at Thrivent?
Dividends are shared with those groups of policyholders that contributed to the surplus growth. Not all policies are eligible. Insurance products receiving a dividend in 2023 include traditional life, universal life, term life, annuities/settlement options and health. Eligible universal life products will receive a credited rate enhancement—an increase in the interest rate credited toward the policy’s cash value.
When and how are dividends typically paid?
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