Approximately 28,000 Texas employers will receive a share of $50 million in dividends from Texas Mutual Insurance Company.
The Texas Mutual board of directors unanimously approved the 2004 dividend plan, which includes an annual component for qualifying customers whose policies expired in 2003 and a retention component for select, longtime customers. The plan also includes a special dividend.
The annual component is for qualifying policyholders with policies that expired in 2003. The retention component rewards qualifying policyholders for up to five consecutive years of low claim loss experience, ending with the policy that expired last year. The special dividend is reportedly the result of Texas Mutual Insurance Company’s exceptional financial results in 2003.
“These dividends will reward our loyal policyholders whose low claim losses have contributed to our success,” said Texas Mutual Chairman Martin Young Jr. “We hope these dividends will contribute to their success by lowering their workers’ compensation costs.”
Only Texas Mutual policyholders with in-force policies on June 15, 2004 may qualify for the plan, which still requires Texas Department of Insurance approval. State law prohibits policyholders enrolled in the company’s insurer of last resort program from receiving dividends.
Young also noted that these dividends are separate from the company’s group purchase dividend program. Texas Mutual purchasing groups received approximately $1.3 million in dividends last year.
The announcement marked the sixth consecutive year for Texas Mutual Insurance Company to offer general dividends. Insurance companies cannot guarantee annual dividends; however, Young said, “Our philosophy is to share the company’s financial success with our good customers.”
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