Texas Mutual Pays $65K Dividend to Sign Association
Austin, TX (WorkersCompensation.com) - Texas Mutual Insurance Company announced today that the Texas Sign Association Comp Group (TSA) earned a $65,387 workers’ compensation dividend.
The dividend was based largely on the group’s overall safety record.
“Our members care about their employees’ well-being, and they invest the resources necessary to prevent workplace accidents,” said Texas Sign Association Executive Director Leona Stabler. “We have earned $422,000 in group dividends from Texas Mutual since 2006. That speaks volumes about our group’s commitment to workplace safety.”
Group dividends are separate from Texas Mutual’s individual policyholder dividend program. Individual dividends are based largely on each policyholder’s safety record. Many TSA Comp Group members have earned dividends under both programs.
“As a mutual insurance company, our responsibility is to our policyholders,” said Bob Barnes, chairman of Texas Mutual’s board of directors. “They own the company, and this money belongs to them. We are proud to share Texas Mutual’s success with those who have contributed to that success.”
Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders, and they do not answer to stockholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.
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.
Ron Wright, president of Texas Mutual, said the company’s dividend track record is a direct reflection of its financial strength, as well as policyholders’ efforts to keep employees safe.
“Our status as a mutual company gives us the freedom to focus on what matters most: preventing workplace accidents and their associated costs,” said Wright. “Texas Mutual is fortunate to have owners who share our vision. I hope this return on their investments will keep their businesses strong far into the future.”
Texas Mutual notes that past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.