Everything is bigger in Texas. Sometimes that is a good thing. A case in point is the $225 million dividend just announced by
Texas Mutual Insurance Company, the state’s largest workers’ compensation provider.
Texas Mutual, which is owned by its policyholders, has distributed dividends from its workers’ comp line for 17 consecutive years, totaling $2.8 billion over that period.
“Texas Mutual’s policyholder owners greatly contribute to the success of the organization by keeping their workers’ compensation losses low,” said Texas Mutual Chairman Bob Barnes. “We value that contribution and are proud to recognize it year after year with dividends that help Texas employers control their costs even further.”
Workman’s compensation costs have been going down pretty consistently in Texas since 1991 when legislation was passed, moving the state from a litigation-based system to an administrative system. Average costs have gone from about 30 percent of payroll in the early 1990s to about 5 percent today.
The company points out that dividends are paid based on performance, and are not guaranteed from one year to the next. Texas Mutual CEO Rich Gergasko said the company considers policyholder to be partners of the company. “We appreciate the unique relationship we have with our customers and know that this money goes back into our state’s economy to help employers build their businesses for the future.”
