MEMIC Announces Early $17 Million Dividend for Maine Policyholders
(Portland, ME) – In recognition of the economic stress being experienced by many of its 18,000 Maine workers’ compensation insurance policyholders, the Board of Directors of MEMIC has authorized the immediate distribution of a $17 million dividend to eligible employers. The 2020 MEMIC dividend brings the total amount of capital and dividend declarations to $302 million since 1998.
“We normally make our annual dividend decision in September and distribute checks in November, but these are not normal times,” said Michael P. Bourque, president and CEO of The MEMIC Group. “Though MEMIC is not immune to the impact of stock market fluctuations or the drop in payroll-related premiums, we believe that supporting our policyholders was the right thing to do right now. Our board wants to get money into the hands of employers whose collective record of safety has produced a profit for the policy year 2017.”
MEMIC recently had its financial performance affirmed with an “A” (excellent) rating by industry analyst A.M. Best.
The average dividend will be more than $1,100 and more than two dozen employers will receive checks greater than $40,000. Checks are expected to be mailed to eligible Maine employers within three weeks, according to Bourque. “What’s especially nice is that this dividend will end up in the private, public and non-profit sectors in all sixteen counties. Ultimately, that money will become another stimulus for employment when we need it most.”
The dividend is not guaranteed as it is contingent upon safety results, effective injury management, efficient operations of the company, as well as investment and bond market performance. The company reviews these factors annually to determine if a dividend is appropriate.
“We always say that safety pays dividends which also is why we have been making an extra effort to help the workforce remain safe during the pandemic. The safety practices we are recommending on our web site and in all communications are a guide to how we all must now behave until this virus in under control,” said Bourque. “As a mutual insurance company owned and governed by our policyholders, we truly understand that we’re all in this together.”
The MEMIC Group includes MEMIC Indemnity Company, MEMIC Casualty Company, and parent company Maine Employers’ Mutual Insurance Company; all rated “A” (Excellent) by A.M. Best. The MEMIC Group holds licenses to write workers’ compensation across the entire country. The group insures more than 20,000 employers and their estimated 300,000 employees, and maintains offices in Manchester, NH; Glastonbury, CT; Albany, NY; Weehawken, NJ; West Conshohocken, PA; Tysons Corner, VA; and Tampa, FL; in addition to its headquarters in Portland, ME.