PORTLAND, Maine, October 11, 2011 – Maine’s leading workers’ compensation insurer The MEMIC Group announced today that in November, it will mail checks totaling $12 million to about 19,000 policyholders of its mutual company in Maine.

The $12 million dividend payment is an increase of $1 million from the company’s 2010 dividend payment. The company’s board of directors voted to approve the increase at its quarterly meeting.

“We know times are tough in our economy,” said MEMIC President and Chief Executive Officer John T. Leonard. “That makes us even more proud that we’re able to provide this dividend to our customers. As a mutual company, when we perform well, we give back to our policyholders.”

Once this dividend has been paid, the company will have returned more than $132 million to its Maine-based policyholders since 1998.

Each year the company does a three-year analysis to determine its ability to pay a dividend. The 2011 payment is based upon premium paid in 2008. Each eligible policyholder – approximately 19,000 employers – will receive a check totaling about 9.2 percent of premium paid to MEMIC in 2008.

Leonard said the dividend resulted from the company’s success from the 2008 year. These results were driven by efficient operation of the company, as well as the company’s ability to help customers avoid workplace injuries. In addition, the company’s diversification into states beyond Maine is paying off, he said.

MEMIC, which started in Maine in 1993, has since grown to be licensed in 45 states through a subsidiary which began business in 2001. Since then, the subsidiary has grown its profile across the northeastern U.S. That growth, Leonard said, is helping the company to fund dividends for its Maine customers.

“This was the vision we had almost 10 years ago,” Leonard said. “Now, we can clearly see, with the stream of dividends MEMIC has produced, that our vision has become a reality. That’s really great news for MEMIC policyholders and I can only see that news getting better as times goes on.”

According to Leonard, The MEMIC Group’s business outside Maine has grown to more than $50 million in annual premium and is continuing to grow despite the flagging economy. In Maine, the company continues to hold about 60 percent of the commercial workers’ compensation insurance market.

Specializing in workers' compensation insurance, MEMIC insures more than 18,000 employers and their estimated 200,000 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, with offices in Manchester, NH; Glastonbury, CT; and Albany, NY. MEMIC Indemnity Company is licensed to write workers' compensation in 45 states plus the District of Columbia.