MEMIC Announces Increased Dividend to Policyholders
PORTLAND, Maine, September 26, 2012 – Workers' compensation insurer MEMIC announced that it will send checks in November totaling more than $13 million to policyholders of its Maine-based mutual company.
The dividend declared recently by the company's Board of Directors represents more than 10 percent of annual premium from policy year 2009 upon which the dividend is based. This amount represents an increase of $1 million from last year's dividend payment.
Once the mailing of nearly 19,000 checks is completed, the company will have returned more than $145 million to its Maine-based policyholders since 1998.
"Once again, our success is shared with our policyholders," said MEMIC President and CEO John T. Leonard. "Despite hard economic times, we have worked diligently to remain strong and to continue to produce these dividends for our policyholders. They like receiving these checks and we like sending them. Our ability to make these payments is related directly to our ability to keep our expenses under control while also helping our policyholders continue to reduce workplace injuries."
Each year, the company performs a three-year analysis to determine its ability to pay a dividend. The 2012 payment is based upon premium paid in 2009. Each eligible policyholder - approximately 19,000 - will receive a check in November totaling approximately 10.6 percent of premium it paid for its 2009 policy. This payment will mark 15 consecutive years in which MEMIC has paid a dividend or returned excess capital.
Leonard said The MEMIC Group's continued growth has helped fuel dividends in recent years. In addition to being the dominant workers' compensation insurer in Maine (where it insures about 60 percent of the commercial insurance market based on premium), the company is now licensed in nearly every state in the US. He also said this year the company will underwrite more than $70 million in premium outside of Maine.
"Our continued growth is rooted in our desire to continue to produce returns to our policyholders while gaining the benefits of diversification and scale," Leonard said. "As we grow down the Eastern Seaboard, we find there is real demand for a workers' compensation insurer who provides the kind of service and support we offer to our customers."
Specializing in workers' compensation insurance, The MEMIC Group insures more than 19,000 employers and their estimated 250,000 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. The company is the parent of MEMIC Indemnity Company, rated A (Excellent) by A.M. Best, and MEMIC Casualty Company. The MEMIC Group maintains offices in Manchester, NH; Glastonbury, CT; Albany, NY; Weehawken, NJ and West Conshohocken, PA. Through its various members, the MEMIC Group is licensed to write workers' compensation in 45 states plus the District of Columbia.