There’s Safety – and Savings – in Numbers

By Jack Ogden, Senior Marketing Specialist

By Jack Ogden, Senior Marketing Specialist

I’ve been working closely with insurance agents for 16 years. I get a lot of satisfaction from telling them about products and services that benefit their clients. I get even more satisfaction when I tell agents about products and services that benefit their clients and them. Safety groups are a good example.

A safety group is a group of employers in a similar industry who purchase their workers’ compensation coverage together. Think of it as strength in numbers.

Each group member gets a premium discount based on the group’s overall premium, regardless of their individual premium size.  Safety groups are a great way for small employers to compete on a level playing field with large employers that have more money and resources.

Because safety group members operate in the same industry, their employees face similar on-the-job hazards. Insurance carriers can design custom safety services that address those unique hazards. By reducing workplace accidents, employers can further reduce their workers’ compensation costs. They may also have the potential to earn dividends from the carrier.

Safety groups are a good business proposition for agents, too. The premium discount that comes with joining a group is attractive to any business looking to cut operating costs. Once the client has experienced the custom workplace safety services and earned a dividend or two, they are more likely to stay in the group and, in turn, remain loyal to the agent.

In marketing, we spend a lot of time talking about differentiators. Safety groups are an opportunity for agents to set themselves apart from the competition. They also help small employers level the playing field with larger employers. Simply put, there’s safety and savings in numbers.

About the author

Jack Ogden is the safety group manager at Texas Mutual Insurance Company. He is a certified insurance counselor with 16 years’ experience in workers’ compensation. Jack works closely with insurance agents to help them get the most value out of their partnership with Texas Mutual.

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Texas Mutual Delivers $281K Boost to Social Service Agencies

Texas Mutual Insurance Company, working in partnership with Care Providers Insurance Services, announced today that the Social Service Agencies of Texas (SSA) safety group has earned a $280,638 dividend.

The workers’ compensation dividend was based largely on the group’s overall safety record.

“Social service agencies operate on lean budgets, and every dollar counts,” said Randall Hedlund, director of Care Providers Insurance Services, the SSA safety group administrator. “We’re very proud of our group’s safety record, and dividends help our members continue to deliver much-needed services to the people of Texas.”

Since 2005, Texas Mutual has paid nearly $2 million in group dividends to SSA members. That total is in addition to individual policyholder dividends group members have earned. Individual dividends are based largely on each policyholder’s safety record.

Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

By the end of the year, Texas Mutual will have paid $1.2 billion in dividends. The majority of that total – more than $1 billion – will have been paid since 2005.

Texas Mutual notes that past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.

(L-R) Willis Tran and Priscilla Archer, marketing associates at Care Providers Insurance Services; Steve Math, senior vice president of underwriting at Texas Mutual; and Bill Jackson, Texas Mutual underwriting manager

Texas Mutual Pays $355K Dividend to Apartment Group

The Texas Apartment Association (TAA) safety group has earned a $355,922 Texas Mutual dividend. The workers’ compensation dividend was based largely on the group’s overall safety record.

Since 2009, Texas Mutual has paid nearly $1.2 million in group dividends to TAA safety group m

TAA dividenc check presentation

Bob Barnes (left), chairman of Texas Mutual’s board of directors; and Ron Wright (right), Texas Mutual president; present a $355K dividend check to Michael Whorton, master agent of the Texas Apartment Association safety group.

embers. That total is in addition to individual policyholder dividends group members have earned. Individual dividends are based largely on each policyholder’s safety record.

“As a mutual insurance company, our responsibility is to our policyholders,” said Barnes. “They own the company, and this money belongs to them. We are proud to share Texas Mutual’s success with those who have contributed to that success.”

Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders, and they do not answer to stockholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

By the end of the year, Texas Mutual will have paid $1.2 billion in dividends. The majority of that total – more than $1 billion – will have been paid since 2005.

Wright said the company’s dividend track record is a direct reflection of its financial strength, as well as policyholders’ efforts to keep employees safe.

“Our status as a mutual company gives us the freedom to focus on what matters most: preventing workplace accidents and their associated costs,” said Wright. “Texas Mutual is fortunate to have owners who share our vision. I hope this return on their investments will keep their businesses strong far into the future.”

Texas Mutual notes that past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.

Texas Mutual Pays $450K Dividend to TxOGA

Bob Barnes (left), chairman of Texas Mutual’s board of directors, and Ron Wright (right), Texas Mutual president, present a dividend check to Jim Sierra, TxOGA vice president for financial affairs.

Texas Mutual Insurance Company announced that the Texas Oil and Gas Association (TxOGA) safety group earned a $449,557 dividend. Texas Mutual President Ron Wright and Chairman of the Board Bob Barnes presented the check to TxOGA Vice President for Financial Affairs Jim Sierra at Texas Mutual’s Austin headquarters on Aug. 29 during the company’s board of directors meeting.

The workers’ compensation dividend was based largely on the group’s overall safety record.

Since 2001, Texas Mutual has paid nearly $19 million in group dividends to TxOGA safety group members. That total is in addition to individual policyholder dividends group members have earned based on their individual safety records.

“As a mutual insurance company, our responsibility is to our policyholders,” said Barnes. “They own the company, and this money belongs to them. We are proud to share Texas Mutual’s success with those who have contributed to that success.”

Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders, and they do not answer to stockholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

By the end of the year, Texas Mutual will have paid $1.2 billion in dividends. The majority of that total – more than $1 billion – will have been paid since 2005.

Wright said the company’s dividend track record is a direct reflection of its financial strength, as well as policyholders’ efforts to keep employees safe.

“Our status as a mutual company gives us the freedom to focus on what matters most: preventing workplace accidents and their associated costs,” said Wright. “Texas Mutual is fortunate to have owners who share our vision. I hope this return on their investments will keep their businesses strong far into the future.”

Texas Mutual notes that past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.

Texas Mutual Pays $1.6M Dividend to Construction Group

(L-R) Steve Math, senior vice president of underwriting at Texas Mutual, presents a $1.6 million dividend check to Raymond Risk, president/CEO of the Texas Construction Association, and Todd Hewitt, chairman of the Texas Construction Association board of directors

The Texas Construction Association (TCA) safety group earned a $1,607,267dividend. The workers’ compensation dividend was based largely on the group’s overall loss ratio.

Austin-based Texas Fifth Wall Roofing earned its third consecutive dividend as a member of the TCA safety group. The company’s president, Todd Hewitt, explained that private sector construction projects are picking up slowly following the recession. Dividends help Texas Fifth Wall Roofing remain competitive.

“Workers’ compensation is just one of many costs we have to consider,” said Hewitt. “We get a premium discount on the front end for participating in the safety group. On the back end, we have earned dividends for working safely. That money has gone directly back into our operating budget.”

Since 2005, Texas Mutual has paid $11.5 million in group dividends to TCA safety group members. That total is in addition to individual dividends group members have earned.

Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders, and they do not answer to stockholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

“Texas Mutual has a shared interest in helping Texas-based business succeed,” said Steve Math, senior vice president of underwriting at Texas Mutual. “These TCA safety group members have invested in their employees’ well-being. Dividends are Texas Mutual’s way of rewarding them for their commitments to safety and for their ownership stakes in the company.”

By the end of the year, Texas Mutual will have paid $1.2 billion in dividends. The majority of that total – more than $1 billion – will have been paid since 2005.

Texas Mutual notes that past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividends.

Texas Mutual Gives Schools, Manufacturers Combined $1M Boost

Texas Mutual Insurance Company announced today that the Texas Schools Group and Texas Association of Manufacturers safety groups earned a combined $1,094,336 in dividends. The workers’ compensation dividends were based largely on each group’s overall loss ratio.

The largest dividend, $780,305, went to the Texas Association of Manufacturers safety group. The group has earned $3.4 million in Texas Mutual dividends since 2008.

Members of the Texas Schools Group earned a $314,031 dividend, a 61 percent increase over their 2011 dividend.

Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

In addition to potential dividends, 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.

Texas Mutual Rewards Three Safety Groups With $435K in Dividends

Texas Mutual Insurance Company announced today that three workers’ compensation safety groups have earned a combined $435,324 in dividends. The dividends were based largely on each group’s overall loss ratio.

The largest dividend, $261,132, went to the Texas Automotive Safety Group. The group has earned $651,000 in Texas Mutual dividends since 2010.

Members of the Texas Lodging Safety Group earned a $137,587 dividend, nearly doubling their 2011 dividend.

The $36,605 dividend check that went to the Texas Produce Association safety group marked the group’s seventh consecutive Texas Mutual dividend.

Unlike publicly traded insurance companies, mutual insurance companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

In addition to potential dividends, 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.

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