MEMIC Board Approves Distribution of Final Portion of $47M in Capital to Maine Employers
June 25, 2001 | Financial
PORTLAND, Maine, June 25, 2001 – Maine Employers' Mutual Insurance Company (MEMIC)announced that its Board of Directors has approved the final distribution of capital to Maine policyholders whose contributions helped start the company in the early 1990s.
Including this year's approval, MEMIC's Board has now authorized the return of $47 million to Maine employers since 1998. This July the company will send checks totaling $7.2 million to more than 3,000 eligible employers.
"This is a proud day for our company and it should be a proud day for Maine," said MEMIC President and CEO John T. Leonard. "This money, which most policyholders never expected to see again, is now going back into the Maine economy where it does the most good for the people of our state."
MEMIC was formed in 1993 without the benefit of start-up capital. It was allowed to collect a special surcharge of up to 15 percent from policyholders in order to gain financial backing. Given 10 years to collect the money, MEMIC discontinued the surcharge after just three years. In 1998, MEMIC was declared by the Maine Bureau of Insurance as having adequate capital and the company began returning the $47 million, despite the fact that it was under no legal obligation to do so.
"Our Board of Directors committed to returning this money from the very start," Leonard said. "We've always believed that this $47 million was our policyholders' money. Since it's their performance in improving workplace safety and in helping people return to work that has helped get us to this point, we're happy to be able to honor our promise to return this money."
The checks will be delivered in July. Policyholders with questions about this distribution should contact their independent insurance agent or MEMIC at 791-3508.
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About MEMIC
MEMIC, based in Portland, is Maine's largest and leading workers' compensation insurance company. A private mutual company, MEMIC serves as the guarantor of workers' compensation insurance in Maine.
The company insures 19,000 of Maine's estimated 27,000 insured businesses and their estimated 200,000 employees. The company is the organization most often credited with stabilizing Maine's once-notorious workers' compensation climate. Through its attention to workplace safety and compassionate claims management, MEMIC has helped to drive down the overall cost of workers' comp while getting better outcomes for injured workers.
In 2000, MEMIC earned an A (Excellent) rating from A.M. Best Company, the world's most respected insurance benchmarking organization. MEMIC is also the parent company of MEMIC Indemnity Company, based in Manchester, NH.
Including this year's approval, MEMIC's Board has now authorized the return of $47 million to Maine employers since 1998. This July the company will send checks totaling $7.2 million to more than 3,000 eligible employers.
"This is a proud day for our company and it should be a proud day for Maine," said MEMIC President and CEO John T. Leonard. "This money, which most policyholders never expected to see again, is now going back into the Maine economy where it does the most good for the people of our state."
MEMIC was formed in 1993 without the benefit of start-up capital. It was allowed to collect a special surcharge of up to 15 percent from policyholders in order to gain financial backing. Given 10 years to collect the money, MEMIC discontinued the surcharge after just three years. In 1998, MEMIC was declared by the Maine Bureau of Insurance as having adequate capital and the company began returning the $47 million, despite the fact that it was under no legal obligation to do so.
"Our Board of Directors committed to returning this money from the very start," Leonard said. "We've always believed that this $47 million was our policyholders' money. Since it's their performance in improving workplace safety and in helping people return to work that has helped get us to this point, we're happy to be able to honor our promise to return this money."
The checks will be delivered in July. Policyholders with questions about this distribution should contact their independent insurance agent or MEMIC at 791-3508.
MEMIC, based in Portland, is Maine's largest and leading workers' compensation insurance company. A private mutual company, MEMIC serves as the guarantor of workers' compensation insurance in Maine.
The company insures 19,000 of Maine's estimated 27,000 insured businesses and their estimated 200,000 employees. The company is the organization most often credited with stabilizing Maine's once-notorious workers' compensation climate. Through its attention to workplace safety and compassionate claims management, MEMIC has helped to drive down the overall cost of workers' comp while getting better outcomes for injured workers.
In 2000, MEMIC earned an A (Excellent) rating from A.M. Best Company, the world's most respected insurance benchmarking organization. MEMIC is also the parent company of MEMIC Indemnity Company, based in Manchester, NH.