Texas Mutual Pays Hard Cash in Soft Market

Texas Mutual Insurance Company faced a unique challenge in 2006. We had to decide the best way to celebrate our 15-year anniversary. After tossing around several ideas, we decided on hard cash.

Nearly 34,000 employers, representing 73 percent of our policyholders, qualified for a share of our approximately $100 million individual dividend plan. This year’s plan included a $50 million anniversary component.

To qualify for an individual dividend, an employer must have been an active policyholder on June 15, 2006 and have had a policy that expired in 2005 with acceptable loss ratios for the applicable period. State law prohibits policyholders enrolled in our Start program (insurer of last resort) from receiving dividends.

Over the past eight years, Texas Mutual Insurance Company has distributed more than $320 million in individual dividends among qualifying policyholders. Individual dividends are separate from dividends we pay to members of our purchasing groups. Many purchasing group members have qualified for both types of dividends.

“Of course, we can’t guarantee future dividends,” said Russ Oliver, president of Texas Mutual Insurance Company. “We can guarantee that we are committed to maintaining the financial strength of this company and returning money to our qualifying policyholders whenever financial results support it. Our track record for dividends demonstrates our financial strength and ability to withstand all market conditions.”

It also provides another powerful selling tool for agents. Market research shows that dividends are important to employers. They are especially significant when it comes time to renew a policy.

The dividend reports tool makes it easy for agents to review their clients’ personal dividend history. Like all Texas Mutual^® online services, the tool is password-protected to ensure the security of sensitive information. If you are not registered to use Texas Mutual^® online services, click here, and complete the free, online application.

Texas Mutual Increases Commission on New Business
Texas Mutual Insurance Company increased commission to nine percent on new business in our Cornerstone^® program. The new commission structure applies to policies effective on or after July 15, 2006. It does not apply to temporary staffing, employee leasing or new business in our Start program (insurer of last resort).

MUTUAL INTERESTS - Fall 2006
TRA Group Serves Buffet of Benefits for Agents and Their Clients
Texas Mutual Rolls Out Agent Network Support Program
Underwriting & Actuarial Services Fills Key Positions
Purchasing Group News
Texas Mutual Pays Hard Cash in Soft Market
Policy Issuance Notification by Email Now Available
Ken's Corner

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Texas Mutual Insurance Company.