Texas Mutual Pays $50 Million in Dividends

Austin-based Texas Mutual Insurance Company reported that it has begun distributing approximately $50 million in dividends to some 27,000 qualifying policyholders. The event marks the sixth consecutive year for Texas Mutual dividends.

A Texas Mutual policyholder could qualify for the general dividend by maintaining a good loss ratio, by being a loyal customer for up to five years, or by meeting both criteria. Each general dividend recipient automatically qualified for a special dividend, unique to this year, as the result of exceptional financial results Texas Mutual Insurance Company earned in 2003.

“If your company receives dividends this year, I hope you will accept them as rewards for your workplace safety and loyalty,” Texas Mutual President Russ Oliver wrote in a recent newsletter to policyholders. “We will always strive to be competitive in our pricing and services, and when circumstances allow, we will share our success with our qualifying customers.”

Oliver also noted that the general and special dividends are separate from the Texas Mutual group purchase dividend program.

Last year, Texas Mutual purchasing groups received approximately $1.3 million of group dividends. To date, Texas Mutual Insurance has awarded over $700,000 of group dividends in 2004.