The Louisiana Workers’ Compensation Corporation (LWCC) announced the distribution of its first-ever dividend, returning $10 million to over 21,000 qualifying Louisiana policyholders.
This was a goal of the Board of Directors since the inception of the company and is believed to be the largest single dividend ever declared in the state of Louisiana by a workers’ comp insurer. The amount each policyholder received was determined based on a combination of premiums paid and loss history over the last five years.
“The dividend accentuates the remarkable job that LWCC’s employees, agents and policyholders have done in transforming a workers’ compensation system that was on the verge of collapse just over 10 years ago,” said Steve Cavanaugh, LWCC’s president and chief executive officer. “In addition to serving as the market of last resort, LWCC has proven to be the market leader, driving positive, competitive pressure in the Louisiana insurance market.”
LWCC was able to declare the dividend because of its strong financial position, which is a result of operating efficiencies, effective financial management, dedication to workplace safety and good management of claims.
“As LWCC works to drive down the costs of workers’ comp while continuing to meet the service needs of our customers, we hope to be able to pay dividends in the future,” Cavanaugh said. “The insurance industry has faced challenging times lately, and 2004 will continue to bring more challenges. Yet, while other states are experiencing a workers’ compensation crisis, our being able to award this dividend is strong evidence that LWCC is doing things the way they are supposed to be done.”
LWCC is a private, nonprofit mutual insurance company. It is the state’s largest writer of workers’ compensation insurance, covering about 23,000 policyholders and 34 percent of the insured market in Louisiana. The company is rated “A” (Excellent) by A.M. Best.and was named one of the top 50 property and casualty insurance companies in the nation for the second year in a row by Ward Group, a leading authority on insurance industry benchmarking.
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