The COVID-19 pandemic has impacted businesses in almost every industry.
We want to do all we can to help as Texas moves toward recovery.
In April 2020, Texas Mutual is distributing $330 million in dividends to 57,000 eligible policyholders. By paying the dividend two months early, we’re putting funds into the hands of Texas employers when our economy needs it most. Our policyholders have shown amazing resolve throughout the crisis. Thank you for staying strong and for doing so much to keep your workers safe every day of the year.
Our dividend distribution has always been about more than our financial success. It gets to the heart of consistently rewarding our policyholders for sharing in our mission of building safer workplaces.
We have distributed dividends for 22 consecutive years, bringing the payout total to over $3.1 billion. We choose year after year to reward qualifying policyholders who contribute toward keeping employees safe and losses low. When an employer purchases a policy at Texas Mutual, they are not just buying financial security for themselves and their employees. They're also becoming owners of Texas Mutual.
As a policyholder, you can improve your chance of qualifying for a dividend by prioritizing safety and putting a return to work program in place. We are here to help.
For many policyholders, dividends are key to managing their workers' comp costs. Dividends give more control over the total cost to the policyholder because they are based on the policyholder's loss experience.
They also give us the chance to recognize our policyholders across the state who are working hard to keep employees safe and workers' comp costs low. Because that's a commitment that deserves to be rewarded.
Whether you’re a new policyholder or have been with us for several years, you can qualify for a dividend. We offer three types of dividends for policyholders who have a current, in-force policy and are in good standing with us.
We reward policyholders by providing them with two different ways to earn a dividend. Safety, paid through the annual component, and loyalty, paid through the retention component, are at the core of a Texas Mutual dividend. By putting safety first and having an acceptable loss ratio for your policy that expired in the previous year, you can earn the annual component.
When you keep choosing to do business with us, you deserve to be rewarded for that loyalty. We reward your trust in us when you qualify for the retention component of the dividend. We recognize policyholders who choose Texas Mutual year after year by rewarding current policyholders for up to four previous, consecutive years of acceptable, combined loss ratios ending with the policy that expired in the previous calendar year.
Historically, Texas Mutual has paid individual dividends in June.
We recognize newer policyholders who are putting in the effort to build a safer workplace. Even if you haven’t been with us long enough to earn an individual dividend, we reward your commitment to safety. These dividends are paid separately in November. Each year, we recognize around 4,000 newer policyholders with over $3 million in early qualifier dividends.
Policyholders who are safety group members can also qualify for a group dividend if the group has a favorable loss history. By coming together to form safer workplaces, safety group members can potentially earn both an individual and group dividend from Texas Mutual. In 2019, Texas Mutual paid $19.3 million in safety group dividends.
Dividends are based on performance, are not guaranteed and must comply with Texas Department of Insurance regulations.
In 2020, our board of directors voted to pay individual dividends two months ahead of schedule because of coronavirus. Policyholders can log in to their account to see whether they will receive an individual dividend on April 20, which is when checks will be mailed directly to policyholders.
We currently do not offer direct deposit. We can reissue checks if you misplace or accidently discard it. Contact our Information Services Center for more information.