AUSTIN, Texas–(BUSINESS WIRE)–Texas Mutual Insurance Company’s board of directors has approved the company’s plan to distribute $155 million in workers’ compensation dividends in 2011.
Dividends reward loyal policyholders who share Texas Mutual’s commitment to preventing workplace accidents and helping injured workers get back on the job.
“As a mutual insurance company, Texas Mutual is not publicly traded, and it does not answer to stockholders,” said Bob Barnes, chairman of Texas Mutual’s board of directors. “Our policyholders – the Texas entrepreneurs who put their trust in us every day – own the company. When Texas Mutual enjoys financial success, it has a solid history of sharing with those who have contributed to that success.”
Texas Mutual plans to begin distributing dividends in late July. The company anticipates that approximately 38,000 policyholders will qualify for a dividend based largely on their premium sizes, workplace safety records and history with the company.
By the end of this year, Texas Mutual will have paid more than $1 billion in policyholder dividends since 2000. That number includes a combined $260 million in 2008 and 2009, at the height of the recession.
Texas Mutual President Ron Wright said the company’s dividend track record is a direct reflection of policyholders’ efforts to keep employees safe and on the job.
“Texas Mutual is fortunate to have 50,000 owners who share its vision of a safer, more productive state,” said Wright. “Our policyholders have invested in their safety programs and supported injured workers during their recoveries. 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 2011 dividend plan requires Texas Department of Insurance approval.
Source: BusinessWire