This afternoon, the Texas Mutual Insurance Company board of directors approved the company’s plan to distribute approximately $125 million in individual policyholder dividends. The plan, which still requires Texas Department of Insurance approval, marks the largest dividend payout in company history.
Texas Mutual Insurance Company has declared about $445 million in individual dividends during the past nine years, including $100 million last year. Loyalty and loss ratio are key factors in determining which policyholders qualify for a dividend.
“As the leading workers’ compensation insurer in Texas, we place a strong emphasis on workplace safety,” said Russ Oliver, president of Texas Mutual Insurance Company. “Our dividend program is one way we reward employers who share our commitment to reducing workplace accidents. We hope that our policyholders will put a portion of this money back into improving their safety programs.”
Texas Mutual Insurance Company notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.