Austin, TX – Texas Mutual Insurance Company recently announced that the Texas Machinery and Equipment Dealers (TMED) safety group has earned an $823,333 dividend.
The workers’ compensation dividend was based largely on the group’s overall safety record.
Since 2008, Texas Mutual has paid $2.3 million in group dividends to TMED safety group members. That total is in addition to individual policyholder dividends group members have earned. Individual dividends are based largely on each policyholder’s safety record.
“Texas Mutual has a shared interest in helping Texas-based businesses succeed,” said Steve Math, senior vice president of underwriting at Texas Mutual. “These TMED safety group members have remained loyal to Texas Mutual and invested in their employees’ well-being. Dividends are Texas Mutual’s way of rewarding them.”
Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.
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/ECPR