Workers’ compensation provider Texas Mutual Insurance Company has announced that its board of directors has voted unanimously to distribute $330 million in policyholder dividends two months early. The company has historically paid dividends in June, but decided to distribute them to qualifying policyholders early in response to the COVID-19 outbreak.
About 805 of Texas Mutual’s customers – more than 57,000 business owners – will receive dividends this year, the company said. Texas Mutual began paying dividends in 1999, and this year’s payout will bring the total to more than $3.1 billion in dividends paid since then.
“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 has ever been, and we are proud to deliver these funds to our policyholders who count on us.”
“We serve an important role for Texas businesses and their employees,” said Ron Simmons, chair 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 string company and are in a good position to distribute this dividend during such a critical time for our policyholders.”
Texas Mutual recently announced a $2 million donation to non-profit groups that are providing support during the outbreak.