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The Texas Oil and Gas Association (TxOGA) workers’ compensation purchasing group received $14,485 in dividends from Texas Mutual Insurance Company. The group dividend is the third earned by TxOGA since it partnered with Texas Mutual in 1995. Texas Mutual said the dividends are tied to TxOGA’s excellent safety efforts. A group’s volume and loss ratio are key components in determining whether it qualifies for a dividend. The greater the group’s volume and the lower its overall group loss ratio is, the higher its dividend percentage will be. TxOGA members are eligible for group dividends and general dividends that Texas Mutual has paid to select longtime policyholders the past three years. Although state law prohibits insurance companies from guaranteeing future dividends, Lauber said that Texas Mutual’s philosophy is to reward its top groups when money is available. Texas Mutual pays group dividends in three stages over a period of 42 months. The recent dividend represents the third stage of the group dividend process.

Topics Texas