Approximately 32,000 Texas employers will receive a share of around $50 million in dividends from Texas Mutual Insurance Company. The company announced that its Board of Directors unanimously approved the 2005 dividend plan, which includes an annual component and a retention component. The plan also includes a special dividend.
The annual component is for qualifying policyholders with policies that expired in 2004. 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 the result of exceptional financial results in 2004.
“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 help contribute to their success, too.”
Only Texas Mutual policyholders with in-force policies on June 15, 2005, 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 over $3 million in dividends last year.
The announcement marked the seventh 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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