Texas Mutual Insurance Company announced today that its board of directors voted unanimously to approve a company-record $225 million dividend distribution in 2015. Qualifying policyholder owners across Texas will share the dividend, which will be distributed beginning in July.
Texas Mutual is owned by its policyholders, not stockholders, which means that the company shares its success by distributing dividends to policyholder owners who have made a commitment to preventing workplace accidents and helping injured workers get back on the job.
This is the 17th consecutive year the board has voted to distribute policyholder dividends, bringing the total to $1.8 billion. The company has paid the majority of that total – over $1 billion – since 2010.
“Texas Mutual’s policyholder owners greatly contribute to the success of the organization by keeping their workers’ compensation losses low,” said Bob Barnes, chairman of Texas Mutual’s board. “We value that contribution and are proud to recognize it year after year with dividends that help Texas employers control their costs even further.”
Texas Mutual President and CEO Rich Gergasko said the dividend distribution reflects a deep commitment that the company and its policyholder owners have made to Texas.
“Texas Mutual partners with our policyholder owners throughout the year to help them keep their workers safe and costs low,” Gergasko said. “These dividends are a tangible representation of that year-round commitment. We appreciate the unique relationship that we have with our customers and know that this money goes back into our state’s economy to help employers build their businesses for the future.”
Gergasko noted that while Texas Mutual has awarded dividends each year since 1999, they are based on performance and therefore are not guaranteed. Additionally, dividends must comply with Texas Department of Insurance regulations.