Austin, TX – Texas Mutual Insurance Company’s board of directors recently approved the company’s plan to distribute $150 million in workers’ compensation dividends. This marks the 14th consecutive year the board has approved a dividend distribution to qualifying policyholder owners. By the end of 2012, Texas Mutual will have paid $1.2 billion in dividends since 1999. The majority of that total – more than $1 billion – will have been paid since 2005.
Dividends reward loyal policyholder owners who share Texas Mutual’s commitment to preventing workplace accidents and helping injured workers get back on the job.
“As a mutual insurance company, our responsibility is to our policyholders,” said Bob Barnes, chairman of Texas Mutual’s board of directors. “They own the company, and this money belongs to them. We are proud to share Texas Mutual’s success with those who have contributed to that success.”
Texas Mutual plans to begin distributing dividends in late July. Dividends are based largely on policyholders’ premium sizes, workplace safety records and histories with the company.
Texas Mutual President Ron Wright said the company’s dividend track record is a direct reflection of its financial strength, as well as policyholders’ efforts to keep employees safe.
“Our status as a mutual company gives us the freedom to focus on what matters most: preventing workplace accidents and their associated costs,” said Wright. “Texas Mutual is fortunate to have more than 51,000 owners who share our vision. I hope this return on their investments will keep their businesses strong far into the future.”
Wright noted that Texas Mutual cannot guarantee future dividends, and the 2012 dividend plan requires Texas Department of Insurance approval.