Your Ownership Pays

What our
policyholders say

Texas Mutual dividend program testimonialDividends

Loyalty and a good safety record can help you earn dividends. Hear how some of our policyholders earn theirs and what it means to their companies.

Safety and Loyalty Pay $175M in Dividends in 2013
Texas Mutual rewards qualifying policyholders based on customer loyalty and loss history. Dividends help us share the company’s financial success with qualifying policyholders.

More information about dividends

Registered Texas Mutual® online users can review their dividend history on our website. To review your dividend history, click here, log in, and then click on Dividends. If you not registered to use Texas Mutual® online services, click on New User.

History
  • This is the 15th consecutive year Texas Mutual has paid dividends.
  • By the end of 2013, Texas Mutual will have paid almost $1.4 billion in dividends.
  • In 2012, Texas Mutual paid 95 percent of all dividends paid in Texas.

Basics

What is a dividend?
A dividend is a financial reward for a Texas Mutual policyholder when we have a profitable year of business. When an employer purchases a policy at Texas Mutual, they are not only buying financial security for themselves and their employees. They are also becoming owners in Texas Mutual. Our policyholders have the opportunity to receive dividends, just as stockholders of publicly traded companies do.

Why not just charge less in premium?
Dividends allow us to offer lower net premium than we would be able to simply by lowering the price up front. In addition, dividends give more control over the total cost to the policyholder because they are based on the policyholder’s loss experience.

How can employers improve their chances of qualifying for a dividend?
Employers can improve their chances of qualifying for dividends by
preventing accidents and launching a return-to-work program.

Are dividends tax exempt?
In most cases, dividends are tax exempt, but employers should consult their tax professional.

Is the dividend program guaranteed?
Dividends are based on Texas Mutual’s performance and must be approved by the Texas Department of Insurance. Dividends are not guaranteed, however, Texas Mutual has paid dividends for 15 consecutive years.

Individual Policyholder Dividend Plan

General dividend
The general policyholder dividend includes various components paid in July. To qualify, the policyholder must have a current policy, be in good standing with Texas Mutual, and may be eligible for one or more of the components:

  • Annual Component. The annual component rewards current policyholders who had an acceptable loss ratio for their policy that expired in the previous calendar year.
  • Early Qualifier Exception. New policyholders whose policy expires within the first six months of the current calendar year may qualify for an early, partial dividend payout in November.
  • Retention Component. The retention component rewards current policyholders for up to five consecutive years of acceptable, combined loss ratios ending with the policy that expired in the previous calendar year. Some longtime policyholders have received increasing individual dividends because of the retention component.
  • Special Component. The special component is a discretionary award based on Texas Mutual's exceptional financial results in 2012. The policyholder must qualify for either the annual component, retention component or both.

Marketing Dividends
Agents across Texas leverage our dividend programs to attract and retain customers. Texas Mutual offers
free materials to help you market dividends among your clients and potential clients.

NOTE: Past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividend plans.

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