Summer 2007

Texas Mutual Pays $125M in Dividends

Article highlights:

• Texas Mutual will distribute nearly
  $125 million in policyholder dividends in 2007.
• The company has declared about $445 million in dividends since 1999.
• Policyholders who control their losses improve their chances of qualifying for a dividend.

In July, Texas Mutual Insurance Company began distributing nearly $125 million in individual policyholder dividends to qualifying employers. If you earned a dividend, congratulations. The company and its board of directors hope you accept your dividend as a sign of our long-term commitment to Texas businesses.

Texas Mutual Insurance Company has declared more than $445 million in dividends to qualifying policyholders during the past nine years.* Along the way, it has convinced thousands of policyholders that staying with the state’s leading provider of workers’ comp insurance is the right choice for their business.

“I won’t even talk to other carriers about leaving Texas Mutual,” said Peter Goldmann of Criticare Nursing Service. “When they call, the first thing I ask is whether their company pays dividends. They never answer my question, so I tell them I won’t even consider doing business with them.”

Texas Mutual Insurance Company considers several factors in deciding which policyholders qualify for dividends. Low claim loss history is one of the most important.

The easiest way to control claim costs is to prevent accidents from happening. Texas Mutual Insurance Company provides free tools to help you improve your safety program. The safety resource center offers free DVDs, videos, posters and other safety training materials. You can also use the interactive tools to identify and correct the root causes of accidents and get written safety programs designed around your operations.

When accidents do happen, a return-to-work program helps injured workers get well and back to productive employment. Return-to-work programs help control direct and indirect costs of accidents. Direct costs include medical and income benefits paid by the insurance company. Indirect costs include lost productivity, damaged equipment and other costs associated with the accident. Indirect costs come out of the employer’s pocket.

Once your claim losses are in an acceptable range to qualify for your first dividend, you should focus on keeping them there. The Texas Mutual Insurance Company dividend plan rewards qualifying policyholders for up to five consecutive years of acceptable claim loss history. Your dividend earning potential increases each year.

“These days, employers have a number of choices for where to place their workers’ comp business,” said Russ Oliver, president of Texas Mutual Insurance Company. “We hope that our dividend program, competitive rates and commitment to fighting fraud, controlling costs and improving workplace safety give our policyholders plenty of reasons to stay with us.”

If you have questions about the dividend program, ask your agent, or call (800) 859-5995. Texas Mutual Insurance Company appreciates your business, and we will continue working hard to earn it.

*Past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.

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