Texas Mutual Board Approves Record $150M Dividend Plan
Today, Texas Mutual Insurance Company’s board of directors approved the company’s plan to distribute approximately $150 million in policyholder dividends. Dividends reward safety-conscious employers who have favorable loss histories.
The dividend plan, the largest in the company’s history, includes a $75 million special dividend in recognition of the company’s excellent financial results in 2007.
“Texas Mutual management and board of directors are making two important statements with this generous dividend plan,” said Richard A. Cooper, chairman of the board.
“First, the company is financially stable and prepared to serve Texas long into the future. Second, when financial conditions allow, we will reward policyholders who share our commitment to preventing workplace accidents and controlling claim costs,” said Cooper.
The dividend plan still requires Texas Department of Insurance approval. Texas Mutual Insurance Company anticipates mailing dividend checks in late July. Qualifying policyholders’ shares will be based on their premium size, loss ratio and coverage history with Texas Mutual.
Texas Mutual Insurance Company has declared $595 million in individual policyholder dividends since 1999. The company has declared $36.2 million more in dividends to members of its group discount programs.
Texas Mutual Insurance Company is the state’s leading provider of workers’ compensation insurance, with offices in Austin, Dallas, Houston and Lubbock. The company notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends before distribution.