Texas Mutual to Distribute $330M in Policyholder Dividends Early

Workers’ compensation insurer, Texas Mutual Insurance Co., will distribute $330 million in policyholder dividends to be paid out two months earlier than scheduled.

The company said it has historically paid dividends in June, but due to the coronavirus pandemic it saw an immediate need to distribute dividends to qualifying policyholders at an earlier date.

More than 57,000 Texas business owners, or 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.

While Texas Mutual has awarded dividends each year since 1999, they are based on performance and are not guaranteed. Additionally, dividends must comply with Texas Department of Insurance regulations.

Created by the state legislature in 1991, policyholder-owned Texas Mutual holds the largest share of the workers’ compensation insurance market in the state; it serves more than 70,000 businesses and 1.5 million workers.