This afternoon, Texas Mutual Insurance Company’s board of directors approved the company’s plan to distribute $100 million in workers’ compensation dividends. Dividends reward loyal policyholders who share Texas Mutual’s commitment to workplace safety.
Texas Mutual has declared $845 million in dividends during the past 12 years.
“We have a permanent, vested interest in helping Texas businesses thrive,” said Bob Barnes, chairman of the Texas Mutual board of directors. “In 1999, we were thrilled to pay our first dividend – $25 million. Today, that number has grown to $100 million. Our policyholders will use those funds to expand their businesses, create jobs, pay skilled employees and improve their safety programs.”
Texas Mutual plans to distribute dividend checks in late July. Approximately 38,000 employers, representing 80 percent of the company’s policyholders, will earn a dividend.
The amount of each qualifying policyholder’s dividend check will be based largely on its premium size and workplace safety record.
Texas Mutual offers free services to help policyholders improve their safety programs. Employers can visit the Safety resource center at texasmutual.com to watch streaming videos on a variety of safety topics, evaluate their safety programs, correct the root causes of accidents and get training materials from the multimedia resource library. The company also offers free workshops that feature presentations by Texas Mutual safety professionals.
This year’s dividend announcement comes as the economy continues to climb out of the worst slump since the Great Depression. Texas Mutual President Ron Wright said that the company’s 12th consecutive dividend payout is a sign of its ongoing financial stability.
“Texas Mutual’s strong customer retention, conservative investment philosophy and commitment to controlling our costs have helped us weather the recession,” said Wright. “We have not been immune to its effects, but we remain well-positioned to keep our promises to our customers long into the future.”
Texas Mutual notes that past dividends are not a guarantee of future dividends, and the 2010 dividend plan requires Texas Department of Insurance approval.