Austin, TX – Texas Mutual Insurance Company recently announced that it paid more than $3 million in early qualifier dividends to approximately 4,000 newer policyholder owners across the state. This payout is the final component of Texas Mutual’s $240 million dividend distribution in 2016.
The policyholder owners receiving early-qualifier dividends are those who are already exhibiting safe workplaces, as evidenced by their safety record, but haven’t been with Texas Mutual long enough to qualify for a regular dividend. It includes those who have a good loss ratio on their first year policy with Texas Mutual and have renewed their policy. This provides us with a way to reward newer policyholders for their safe habits sooner.
This is the 18th consecutive year the board has voted to distribute policyholder dividends, bringing the total to over $2 billion. Over $1 billion of that has been paid since 2012.
Texas Mutual is owned by its policyholders, not stockholders, which means the company shares its success by distributing dividends to policyholder owners who have made a commitment to preventing workplace accidents and helping injured workers get well and back on the job.
Texas Mutual President and CEO Rich Gergasko said that early qualifier dividends emphasize safety being a priority in every Texas business.
“Texas Mutual has a long history of rewarding policyholders for their safe practices,” Gergasko said. “These early qualifier dividends are one more way we can do that, with the focus being placed on policyholder owners who haven’t been with Texas Mutual for an extended period of time but have already embraced our safety philosophy. These 4,000 businesses keep our neighbors, friends and family members safe, and that’s worth rewarding.”
Gergasko noted that while Texas Mutual has awarded dividends each year since 1999, they are based on performance and therefore are not guaranteed. Additionally, dividends must comply with Texas Department of Insurance regulations.
Source: Texas Mutual