Texas Mutual Plans $175M Policyholder Dividend Distribution

The policyholder owners of Texas Mutual Insurance Co. will share a $175 million dividend distribution this year, the company’s board of directors announced after a unanimous vote on May 7, 2013.

This is the 15th consecutive year that the board has voted to distribute policyholder dividends, bringing the total to almost $1.4 billion. It has paid the majority of that total – $1 billion – since 2007.

Texas Mutual plans to begin distributing dividends among qualifying policyholders according to its normal schedule.

“Texas Mutual is a policyholder-owned company,” Bob Barnes, chairman of Texas Mutual’s board, said. “Our singular focus is on delivering benefits to our employer owners and taking care of their injured workers. Dividends are part of our long-term strategy for helping Texas employers control their workers’ compensation costs.”

Texas Mutual President and CEO Richard Gergasko said Texas Mutual cannot guarantee future dividends, and the 2013 dividend plan requires Texas Department of Insurance approval