NFIB, Texas Mutual Partnership Pays $819K Dividend
December 13, 2011 Leave a comment
Texas Mutual Insurance Company announced today an $819,218 dividend to the National Federation of Independent Business (NFIB) safety group for manufacturers. The dividend was based largely on the group’s overall loss ratio. Bob Barnes, chair of Texas Mutual’s board of directors, and Ron Wright, Texas Mutual president, presented the check to NFIB/Texas Executive Director Will Newton this afternoon at Texas Mutual’s headquarters in Austin.
“Entrepreneurs are the backbone of our economy,” said Barnes. “As an independent business owner, I am proud of the partnership Texas Mutual has forged with the NFIB. Anytime we have the opportunity to invest in Texas entrepreneurs, we consider it money well spent.”
Members of the NFIB manufacturing safety group have shared in $2 million in group dividends since 2007.
“We at NFIB are very proud of our members for pulling together with Texas Mutual Insurance Company’s loss prevention team and achieving such a significant group dividend,” said Newton. “We are looking forward to more of the same in 2012.”
Unlike publicly traded insurance companies, mutual companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.
Safety group dividends are separate from the $155 million in individual policyholder dividends Texas Mutual distributed this year. Since 2000, the company has injected more than $1 billion into the Texas economy through its group and individual dividend programs.
In addition to potential dividends, NFIB safety group members get discounts on their workers’ compensation premiums. They also have access to workplace safety materials designed for their operations.
Texas Mutual notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.