Texas Sign Association Earns First Dividend from Texas Mutual

July 20, 2006

Texas Mutual Insurance Company announced a $20,255 dividend to the Texas Sign Association (TSA) Comp Group Inc. The workers’ compensation purchasing group, formed in November 2004, earned a dividend in its first year of eligibility.

Texas Mutual purchasing groups are eligible for their first dividend 18 months after their inception date. A group’s premium volume and loss ratio are key components in determining whether it qualifies for a dividend. The greater a group’s volume and the lower its overall loss ratio, the higher its potential dividend percentage.

TSA Comp Group members get a premium discount based on the premium volume of the entire group, regardless of their individual premium size. They also have access to a dedicated loss prevention consultant and a safety plan developed specifically for their industry.

The group is open to on-premises sign product manufacturers, sign supply distributors and associated sign service providers. Any agent can place a qualifying client in the group, with the underwriter’s approval. For more information about TSA Comp Group and other Texas Mutual purchasing groups, visit the Agents section at www.texasmutual.com.

Purchasing group dividends are separate from the approximately $100 million in individual dividends Texas Mutual Insurance Company will distribute among about 73 percent of its policyholders this summer. Some TSA Comp Group members may qualify for both types of dividends. The company notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.

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