Texas Mutual recently paid a combined $4,221,866 in dividends to eight safety groups. The dividends were based largely on each group's overall loss ratio:
Texas Construction Association - $1,607,267
Texas Medical Group - $1,075,625
Texas Oil and Gas Association - $449,556
Texas Apartment Association - $355,921
CompGroup AGC - $254,054
Hospitals of Texas - $244,424
Lone Star Auto Dealers - $169,634
Texas Sign Association - $65,385
Texas Mutual underwrites safety groups representing a range of industries, including restaurants, manufacturing and wholesale/retail. Any licensed Texas agent can submit qualifying clients for consideration in safety groups. For more information, visit texasmutual.com/agents/group.shtm.
Group dividends are in addition to the $150 million in individual policyholder dividends Texas Mutual is distributing in 2012.
By the end of the year, Texas Mutual will have paid $1.2 billion in dividends. The majority of that total - more than $1 billion - will have been paid since 2005.
For more information about dividends, visit texasmutual.com/OwnershipPays.
(L-R) Todd Hewitt of Texas Fifth Wall Roofing, Mackie Bounds of Brazos Masonry and Jerry Wright of AAA Glass accept a $1.6M dividend check on behalf of the Texas Construction Association safety group.
Your Ownership Pays
Texas Mutual Insurance Company is not publicly traded, and we do not answer to stockholders. Our policyholders own the company. Dividends help us share the company’s financial success with qualifying policyholder owners.$150M in 2012
In late July, Texas Mutual began distributing $150 million in dividends among approximately 41,000 qualifying policyholder owners.
$1.2B investment in Texas
By the end of 2012, Texas Mutual will have paid $1.2 billion in dividends. The majority of that total – more than $1 billion – will have been paid since 2005.
How are Texas Mutual dividends different?
When publicly owned corporations pay dividends, they distribute a portion of company earnings to their stockholders. All stockholders receive a dividend based on the number of shares they own at that time. When Texas Mutual Insurance Company pays dividends, we reward specific policyholder owners based on customer loyalty and claim loss history.
More information about dividends
What is a dividend?
A dividend is a monetary reward for policyholders who share our commitment to preventing workplace accidents and helping injured workers return to productive employment. Texas Mutual has two dividend programs: individual dividends and group dividends.
How can employers improve their chances of qualifying for a dividend?
Employers can improve their chances of qualifying for dividends by preventing accidents and launching a return-to-work program.
Are dividends taxable?
They could be, depending on the employer's situation. Employers should consult their tax professional.
Are dividends guaranteed?
No. Dividends are based on performance and are not guaranteed. The Texas Department of Insurance must approve all dividend plans.
Can I access my company's dividend history?
Registered Texas Mutual® online users can review their dividend history on our website. To become a registered website user, click here, and complete the online application.
Key term: loss ratio. An estimate of expected payments for reported and unreported claims, expressed as a ratio to earned premiums.
Individual dividends: beyond the basics
The individual dividend plan includes a general dividend, a special dividend and an early-qualifier dividend. General dividend
The general dividend includes an annual component and a retention component:
- Annual component. The annual component rewards current policyholders who had acceptable loss ratios for the policy that expired in 2011.
- Retention component. The retention component rewards current policyholders for up to five consecutive years of acceptable loss ratios with us, ending with the policy that expired in 2011. Longtime policyholders may have received increasing individual dividends because of the retention component.
Special dividend
The special dividend is a discretionary award based on Texas Mutual's outstanding financial results in 2011.
Early qualifier dividend
The early qualifier dividend is our response to agents who asked us to shorten the dividend cycle for new policyholders. We plan to distribute early-qualifier dividends in November. We will send agents more details, including a list of their qualifying clients, in advance. To qualify:
- The employer must have a policy that expired between January 1, 2012 and June 30, 2012.
- The policyholder must have an in-force policy on September 30, 2012.
- The loss ratio on the policy must be in the acceptable range.
Group dividends
Policyholders who join a safety group can participate in our group dividend program, as well as our individual dividend program. Group dividends are based largely on each group's overall loss ratio.
Marketing dividends
Agents across Texas leverage our dividend programs to attract and retain customers. To help you market dividends, we created a promotional flyer, as well as a dividend calculation tool that shows employers how dividends benefit them.
NOTE: Past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividend plans.
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