PORTLAND, Maine, January 14, 1998 – Maine Employers' Mutual Insurance Company, the state's largest workers' compensation insurance carrier, celebrated its fifth anniversary during its annual employee appreciation lunch in Portland. John Leonard, President and Chief Executive Officer of MEMIC cited five measurable changes that have come about since the founding of the private company.

"The most important development is the dramatic reduction in workplace injuries that have caused people to lose time from work. Since 1992, there has been more than 30% drop in loss-time injuries in Maine," said Leonard, " and the employees of MEMIC can share in the credit for this positive trend."

Leonard said the second milestone is the equally dramatic drop in the cost of workers' compensation insurance. He noted that the cost to MEMIC's nearly 20,0000 customers has been reduced by more than 55% in just five years. In 1993, MEMIC collected a total of $169 million; $147 million in insurance premiums and another $22 million in capital contributions to fund the company's surplus. At the conclusion of 1997, the company wrote $75 million in insurance premiums. MEMIC eliminated its unique capital contribution in 1996 and has instituted numerous credit programs to reward safe workplace behavior and effective injury management.

The third change mentioned was the measurably superior treatment of injured workers. According to data from Maine's Workers' Compensation Board, MEMIC is substantially better than its competitors with on-time payments of benefits to injured workers. State law requires that benefits be received within 14 days of a compensable claim. MEMIC is 46% better than other commercial insurance companies offering workers' compensation coverage in Maine according to the Board. In addition, MEMIC was a leading supporter of an expanded Worker Advocate Program to ensure that employees have skilled representation when conflicts over benefits arise.

The fourth measure of success, according to Leonard, has been the safety education and training of Maine employers and their employees. In five years, the company has run more than 15,000 television, radio and newspaper advertisements promoting the importance of workplace safety training. They have delivered more than 900 training seminars throughout the state and have made more than 14,000 on-site visits to conduct safety training.

The final measure of success is the financial stability of the five-year-old company. MEMIC was allowed to begin operations without the normal amount of surplus funds required of other insurance carriers. With ten years to accumulate the required surplus, the company believes it will soon be certified by the Bureau of Insurance as adequately capitalized. Leonard indicated that the company hopes to begin returning the capital contribution it collected from its policyholders early this spring. The company collected a total of $47 million and intends to return it over the next several years.

"Though we are a private company, we serve a public purpose which is to guarantee that employers can buy workers' compensation insurance in Maine. But, as one public official indicated, 'MEMIC is a case of public policy under-promising, and a private company over-delivering.'" said Leonard. "For these five measurable successes and many more, I want to thank each and everyone of our employees for helping to make Maine a safer and more affordable place to work."

Maine Employers' Mutual insures approximately 20,000 of Maine's estimated 34,000 employers and is owned and governed by its policyholders.