Texas Mutual Insurance Company announced that two workers’ compensation purchasing groups will receive significant group dividends upon approval of the Texas Department of Insurance. The CompGroup AGC purchasing group is set to receive a group dividend from Texas Mutual of approximately $360,000 and the Lone Star Auto Dealers purchasing group, will receive about $55,000.
The six-figure dividend is the second group dividend that CompGroup AGC has earned since it partnered with Texas Mutual Insurance Company in 1999.
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, the higher its dividend percentage will be.
CompGroup AGC members are eligible for group dividends and general dividends that Texas Mutual has paid to select, longtime policyholders the past five years. CompGroup AGC provides the group purchase program for the Associated General Contractors’ Texas members.
Some Lone Star Auto members may also qualify for a general dividend. The Lone Star Auto Dealers group provides a group purchase program for its new truck and auto dealer members.
This year, Texas Mutual Insurance Company paid approximately $25 million in general dividends to over 22,000 qualifying policyholders. Although state law prohibits insurance companies from guaranteeing future dividends, Lauber said the company’s philosophy is to reward its top groups when money is available.
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