Texas Mutual to Distribute $330 Million in Policyholder Dividends Two Months Early
AUSTIN, Texas, April 6, 2020
Texas Mutual Insurance Company, the state's leading workers' compensation provider, announced today that its board of directors voted unanimously to distribute $330 million in policyholder dividends to be paid out two months early. The company has historically paid dividends in June, and in response to the coronavirus pandemic, saw an immediate need to distribute dividends to its qualifying policyholders two months ahead of schedule.
More than 57,000 Texas business owners, about 80% of Texas Mutual's customers, will receive dividends this year. Texas Mutual paid its first dividend in 1999, and this year's payout brings the total to more than $3.1 billion delivered back to Texas businesses over the last 22 years.
"We know that our dividend program provides an economic boost for the state and will help many of our policyholders in a critical time," said Rich Gergasko, President and CEO of Texas Mutual. "Our mission to build a stronger, safer Texas is more important now than it ever has been, and we are proud to deliver these funds to our policyholders who count on us."
Texas Mutual was founded over 25 years ago to be a stable source of workers' compensation for the state. The company, which serves more than 70,000 businesses and 1.5 million workers, exists to protect businesses, promote safe environments and help ensure Texas workers get home safely to their families.
"We serve an important role for Texas businesses and their employees," said Ron Simmons, chairman of Texas Mutual's board. "Like every business in Texas, we don't yet know the full economic impact of COVID-19, but we do know that we have built a financially strong company and are in a good position to distribute this dividend during such a critical time for our policyholders."
Policyholders can earn dividends for keeping their employees safe on the job and by choosing Texas Mutual year after year. While Texas Mutual has awarded dividends each year since 1999, they are based on performance and therefore are not guaranteed. Additionally, dividends must comply with Texas Department of Insurance regulations.
Visit texasmutual.com/ownershippays to learn more about Texas Mutual's dividend program. To see how the company is supporting communities during this time, including a $2 million donation to 40 nonprofit organizations on the front lines of the COVID-19 efforts, visit texasmutual.com/coronavirus.
About Texas Mutual Insurance Company
Austin-based Texas Mutual Insurance Company, a policyholder-owned company, is the state's leading provider of workers' compensation insurance. Texas Mutual provides coverage to 44% of the market, representing 70,000 companies, many of which are small businesses. Since 1991, the company has provided a stable, competitively priced source of workers' comp insurance for Texas employers. Helping employers prevent workplace accidents is an important part of Texas Mutual's mission.
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SOURCE Texas Mutual Insurance Company
Related Links: http://www.texasmutual.com
