Austin, TX – Texas Mutual Insurance Company announced today that the Texas Construction Association (TCA) safety group earned a $1,607,267 dividend. The workers’ compensation dividend was based largely on the group’s overall loss ratio.
Austin-based Texas Fifth Wall Roofing earned its third consecutive dividend as a member of the TCA safety group. The company’s president, Todd Hewitt, explained that private sector construction projects are picking up slowly following the recession. Dividends help Texas Fifth Wall Roofing remain competitive.
“Workers’ compensation is just one of many costs we have to consider,” said Hewitt. “We get a premium discount on the front end for participating in the safety group. On the back end, we have earned dividends for working safely. That money has gone directly back into our operating budget.”
Since 2005, Texas Mutual has paid $11.5 million in group dividends to TCA safety group members. That total is in addition to individual policyholder dividends group members have earned.
Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders, and they do not answer to stockholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.
“Texas Mutual has a shared interest in helping Texas-based business succeed,” said Steve Math, senior vice president of underwriting at Texas Mutual. “These TCA safety group members have invested in their employees’ well-being. Dividends are Texas Mutual’s way of rewarding them for their commitments to safety and for their ownership stakes in the company.”
By the end of the year, Texas Mutual will have paid $1.2 billion in dividends. The majority of that total – more than $1 billion – will have been paid since 2005.
Texas Mutual notes that past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.
Source: Texas Mutual