The economy is in recovery mode, and more companies are celebrating improved profits. Texas Mutual is doing some celebrating of its own, but our motivation is slightly different.
Reward Loyal Customers with Dividends
In late July, the company began distributing $155 million in individual policyholder dividends. Dividends reward loyal customers who share our commitment to preventing workplace accidents and minimizing their consequences.
So, while other companies are giddy over how much money they’re bringing in, your workers’ compensation carrier is thrilled at how much it is paying out to customers.
“As a mutual insurance company, Texas Mutual is not publicly traded, and it does not answer to stockholders,” said Bob Barnes, chairman of Texas Mutual’s board of directors. “Our policyholders – the Texas entrepreneurs who put their trust in us every day – own the company. When Texas Mutual enjoys financial success, it has a solid history of sharing with those who have contributed to that success.”
In 1999, Texas Mutual celebrated its first dividend: $25 million. Over the years, that number has grown to reflect the company’s strong financial position, as well as policyholders’ success at keeping employees safe and on the job.
By the end of the year, Texas Mutual will have paid more than $1 billion in dividends since 2000. The money has gone directly into our state’s economy, helping entrepreneurs improve their safety programs, buy new equipment, build new offices and hire quality employees.
“Money’s a big motivator,” said David Castro of Orion Drilling. “We can certainly free that money up to be used in a variety of different ways. We’ve reinvested in the company through employee safety training, buying new equipment and sustaining our zero-accident culture.”
Orion Drilling has earned seven consecutive dividends from Texas Mutual. Still, Castro knows that dividends are not guaranteed. They are a byproduct of everything Orion does to promote safety among its employees and get them back on the team if they get injured. To see why, you have to understand a few nuts and bolts of the dividend qualifying process.
Your dividend is based largely on your loss ratio. Your loss ratio, in layman’s terms, is based on your claim loss history. The best way to control your claim loss history is to prevent accidents from happening. The second best way is to help injured workers return to productive employment.
Take Safety Measures into Your Own Hands
Texas Mutual encourages policyholders to take advantage of the free Safety Resource Center at texasmutual.com. The site empowers you to evaluate your safety program and identify the root causes of your workplace accidents. From there, you can access streaming videos, DVDs and other free resources that meet your needs.
So far this year, policyholders have taken nearly 300 safety assessments, downloaded safety materials 21,000 times, watched streaming videos nearly 8,500 times and ordered materials 700 times.
“Texas Mutual is fortunate to have 50,000 owners who share its vision of a safer, more productive state,” said Ron Wright, Texas Mutual president. “Our policyholders have invested in their safety programs and supported injured workers during their recoveries. I hope this return on their investments will keep their businesses strong far into the future.”
Reduce Costs and Remain Competitive
When accidents do happen, a return-to-work program will help you get your injured workers well and back on the job. The return-to-work process thrives on communication among you, your injured workers, their doctors and Texas Mutual. Visit the Safety section at texasmutual.com for a free, downloadable Return-to-Work Kit.
In addition to safety and claim management, Texas Mutual’s dividend program rewards customer loyalty. Under the retention component of our dividend program, your dividend has the potential to increase each year through your fifth year with us.
Milberger Landscape and Nursery’s Experience
That’s exactly what happened to Milberger Landscape and Nursery in San Antonio. The company earned its first dividend check in 2005. By 2010, its dividend had increased nearly 50 percent, thanks largely to the retention component.
“You gotta love it when you get money back,” said Butch Jouffray, general manager of Milberger. “This industry is competitive. It’s gotten even more competitive the past couple of years. Dividends help us keep our costs down, which keeps us competitive.”
In 2005, Milberger’s agent placed the company in the Texas Green Industry (TGI) safety group. Safety groups allow employers in similar industries to purchase their workers’ comp coverage as a group.
Milberger Landscape has earned additional dividends by participating in TGI. The company also gets premium discounts, and it has access to industry-specific workplace safety resources.
Contact Texas Mutual
Texas Mutual offers 28 safety groups representing a range of industries, including oil and gas, health care, construction and restaurants. For more information, ask your agent, or visit texasmutual.com.
The next phase of the dividend program will happen in November, when we distribute early-qualifier dividends among qualifying new policyholders.
If you have questions about dividends, Texas Mutual encourages you to contact your agent. You can also call our information service center at (800) 859-5995.
Article by David Wylie, Texas Mutual Insurance Company.
