Letter from the Chairman
and the President
What Sets Texas Mutual Apart?
Chairman Bob Barnes (left) and President Russell R. Oliver
When some of the world’s most influential financial institutions teeter on the verge of collapse, consumers get nervous. So do lawmakers.
This year, the federal government spent billions to bail out investment banks, mortgage giants and even an insurance holding company that previously seemed unshakeable.
In the midst of the turmoil, you can trust that Texas Mutual is financially strong and stable, and we will continue to serve Texas. We are not immune to the volatility in the markets, but three factors set us apart from the companies whose financial difficulties have made headlines.
First, we have no debt, so lenders are not calling in loans. Second, our business revenues fund all of our operations. We do not have to sell investments at a loss to meet financial obligations. Third, and perhaps most important, we have forged strong relationships with our customers, and they are staying loyal to us.
Although total workers’ compensation premium declined nationwide in 2008, Texas Mutual had another record year, writing $768.3 million in premiums. We attribute the increase largely to our 82 percent policyholder retention rate and growth in our customers’ payrolls.
Thanks to employers’ and agents’ trust in Texas Mutual, we are the state’s leading provider of workers’ compensation insurance, with about 25 percent of the market. We are also the 15th largest workers’ compensation writer in the nation, based on direct premiums written in 2007, the latest data available.
When Texas Mutual does well, we share our success with our customers. In 2008, we distributed a company record of more than $166 million in dividends to policyholders who share our commitment to preventing workplace accidents. Dividends help employers such as Dennis Steel, discussed later in this report, weather the difficult economy.
We know that our solid financial condition does not mean we can rest easy. We anticipate more competition and slower policyholder payroll growth in 2009. Texas Mutual will continue to control its operating costs and manage its policyholders’ premium dollars responsibly. That approach will keep us strong and allow us to stay focused on serving Texas, which is what we do best.
You can count on us to help prevent workplace accidents, improve return-to-work outcomes, fight workers’ compensation fraud and deliver all of the services that have made us Texas’ leading choice for workers’ compensation insurance.
Our management and staff have made a long-term commitment to Texas agents, employers and injured workers. We are determined to fulfill that commitment.
Bob Barnes
Chairman
Russell R. Oliver
President
2008 at a Glance
- Issued more than $78 million in network discounts
- Paid a company record of more than $166 million in group and individual policyholder dividends
- Wrote a company-record $768.3 million in premium
- Granted $32,142 in college scholarships
- Offered three new group discount programs
- Raised $146,241 for the United Way through employee contributions and pledges
- Identified more than $10 million in fraud
- Earned national recognition for making it easy for agents to do business with us