MEMIC Announces $10M Dividend to Policyholders

PORTLAND, ME, September 22, 2009 – Maine-based workers’ compensation insurer MEMIC has announced that it will pay a dividend totaling $10 million to about 20,000 Maine employers this November.

The company’s Board of Directors voted at its quarterly meeting last week to grant the dividend. With this announcement, the company will have issued dividends and capital return checks totaling more than $109 million since 1998.

“At a time when so many businesses are struggling, this is very good news for employers,” said MEMIC President and CEO John T. Leonard. “This dividend is reflective of both the performance of our policyholders in reducing injuries and of the responsible management of our company. We work to keep costs low for our customers and that is literally paying dividends now.”

The dividend is being paid on the financial results from the 2006 policy year. Employers who held policies with MEMIC for a full year, with a term beginning in 2006, will be eligible to receive the dividend.

The company will begin sending out about 20,000 checks in mid-November. Checks will range from $10 to as much as $130,000, based upon paid premium in that year.

“For many of our customers, this check will be close to 10 percent of what they are paying for workers’ compensation this year,” said MEMIC President and CEO John Leonard.

“That is on top of a rate reduction which amounted to an average 7.6 percent decrease as well as other discounts that only MEMIC offers such as our credit for customer loyalty or the special credit small employers get for being injury-free.”

Since MEMIC was established in 1993, lost-time injuries are down by about 30 percent while rates for workers' comp insurance are down by more than 40 percent in Maine.


Specializing in workers' compensation insurance, MEMIC insures more than 20,000 employers and their estimated 200,000 employees. Based in the Northeast, MEMIC is the leading workers' compensation insurer in Maine through Maine Employers Mutual Insurance Company which is rated A (Excellent) by A.M. Best. MEMIC Indemnity Company, rated A Excellent) by A.M. Best, has offices in Manchester, NH; Glastonbury, CT; and Albany, NY. The company is licensed to write workers' compensation in 45 states plus the District of Columbia.