MEMIC Board Declares Record-Tying $22 Million Dividend for its Maine Workers' Compensation Insurance Policyholders
PORTLAND, Maine – For the sixteenth year in a row, the Board of Directors of The MEMIC Group has declared a dividend for its Maine policyholders. The $22 million dividend represents 14 percent of the premiums paid to the mutual insurance company for policy year 2016.
“This is our favorite time of year at MEMIC. In workers’ compensation insurance, it takes several years to know if policies produced a profit,” said MEMIC President and CEO Michael P. Bourque. “Gratefully, 2016 was another favorable year that we’re celebrating by declaring a dividend.”
The company expects to deliver checks as large as $200,000 in November to approximately 18,000 employers in Maine. The 2019 dividend brings the total of capital and dividends returned to MEMIC policyholders to $285 million.
“We’ve been told by employers across the state that the money will be put to use for expansion and safety enhancements, debt reduction, new hires, wages, benefits and every other aspect of running a safe and successful enterprise,” said Bourque. “What’s especially nice is that this dividend will end up in the private, public and non-profit sectors in all sixteen counties.”
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.
“Maine employers who insure with MEMIC have truly earned this dividend,” said Bourque. “We work together with our policyholders to reduce injuries through safety training, engineering and education. We also help injured workers return to health and get back to work as soon as possible. But employers and employees have to do the hard work to make it happen. It takes dedication and commitment but, as we like to say, workplace safety really does pay dividends.”
Bourque went on to say that stability in the system has its rewards and that Maine’s workers’ compensation system avoided major changes in the most recent legislative session.
“We are proud to report that we worked closely with Governor Mills, members of the Maine Legislature and other employer groups to minimize changes to the system. Proposals to uncap benefits, increase attorney involvement and make some benefits retroactive were discarded with our support. Another outcome was the Governor’s pledge to oppose any further changes to the system while she serves in the Blaine House unless there is a consensus of the Democrats and Republicans that additional changes are necessary.
“In 1992, Maine was the most expensive state in the nation for workers’ compensation and one that had far too many workplace injuries. We are proud of Maine’s employers and employees who have reduced injuries by 50 percent which has helped reduce workers’ compensation rates by 60 percent. Maine’s reputation as a high-cost state is a distant memory and one that should remain so,” said Bourque.
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. As a super-regional workers’ compensation specialty insurer, The MEMIC Group holds licenses to write workers’ compensation across the country. The group insures more than 20,000 employers and their estimated 300,000 employees, and holds more than $1.4 billion in assets. The group maintains offices in New Hampshire, Connecticut, New York, New Jersey, Pennsylvania, Virginia and Florida, in addition to its headquarters in Portland, Maine.