| Summer 2010
Texas Mutual Pays $100M
in Policyholder Dividends
In late July, Texas Mutual Insurance Company began distributing $100 million in policyholder dividends. Approximately 38,000 employers will earn a dividend as a reward for their commitment to workplace safety and their loyalty to Texas Mutual.
"We have a permanent, vested interest in helping Texas businesses thrive," said Bob Barnes, chairman of the Texas Mutual board of directors. "In 1999, we were thrilled to pay our first dividend - $25 million. This year, that number has grown to $100 million. Our policyholders will use those funds to expand their businesses, create jobs, pay skilled employees and improve their safety programs."
The amount of each qualifying policyholder’s dividend check will be based largely on its premium size and workplace safety record. Texas Mutual offers free services to help policyholders improve their safety programs.
Policyholders can visit the free Safety Resource Center at texasmutual.com to watch online videos on a variety of topics, evaluate their safety programs, correct the root causes of accidents and get training materials from the multimedia resource library. The company also offers free workshops that feature a presentation by a Texas Mutual safety professional.
This year’s dividend announcement comes as the economy continues to climb out of the worst slump since the Great Depression. Texas Mutual President Ron Wright said the company’s 12th consecutive dividend payout is a sign of its ongoing financial stability.
"Texas Mutual’s strong customer retention, conservative investment philosophy and commitment to controlling our costs have helped us weather the recession," said Wright. "We have not been immune to its effects, but we remain well-positioned to keep our promises to our customers long into the future."
Wright added that Texas Mutual cannot guarantee dividends, but the company has a strong record for rewarding loyal policyholders when financial conditions allow.
Since 1999, Texas Mutual has paid more than $770 million in individual policyholder dividends. The company has paid another $80 million in dividends to members of its Safety Groups. Many policyholders have qualified for both types of dividends.
The next phase of the 2010 dividend program will occur in November, when approximately 2,500 first-year policyholders receive early-qualifier dividends. To earn an early-qualifier dividend, the employer must:
- Have a Texas Mutual policy that expired between January 1, 2010 and June 30, 2010.
- Have an in-force policy on October 15, 2010, with an acceptable loss ratio.
Watch for more information about early-qualifier dividends over the next few months. Call your agent, visit texasmutual.com/news/cndivs.shtm, or contact Texas Mutual at (800) 859-5995 for more information about dividends.
COMPNEWS - Summer 2010
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