MEMIC Announces Policyholder Dividend Totaling $4.0M; Company Has Returned $58.0M to Customers Since 1998
October 03, 2005 | Financial
PORTLAND, Maine, October 3, 2005 – Workers’ compensation insurer Maine Employers’ Mutual Insurance Company (MEMIC) has announced that it will pay a dividend of $4.0M to its policyholders for performance in 2002.
MEMIC, the state’s largest workers’ compensation insurer, will be mailing checks for approximately 3.3 percent of each eligible policyholder’s paid premium for policies that began in 2002. MEMIC has returned cash to its policyholders every year since 1998, totaling $58.0M.
“Our policyholders have shown loyalty to our company and many have worked hard to reduce injuries,” said MEMIC President and Chief Executive Officer John T. Leonard. “This dividend is a reward for that effort and for working with a mutual insurer whose interest is not in serving stockholders. Further, it is an indication that Maine’s workers’ compensation system is stable and is serving both employers and employees very well.”
In mid-November, more than 19,500 checks will go to policyholders in amounts of up to $50,000, relative to the workers’ compensation premium paid to MEMIC for their 2002 policy. This dividend was approved by the company’s Board of Directors at its quarterly meeting.
Leonard said MEMIC’s customers should look forward to future dividends if they can maintain their attention toward workplace safety. Leonard cautioned, however, that MEMIC was keeping a close eye on medical inflation, which makes treatment of injured workers more expensive every year. Finally, Leonard pledged that his company will do all in its power to make sure that any fraud or abuse of workers’ compensation – whether by employers or employees – would be prosecuted to the full extent of the law.
“There are many factors involved in workers’ compensation costs in Maine,” Leonard said, “but the bottom line is that we are attentive to each of them. Through efforts in workplace safety, reining in medical costs and prosecuting fraud, MEMIC is focused on serving its policyholders and creating results like this dividend.”
In August, MEMIC was cited for the fourth consecutive year by an insurance industry study as being among the top two percent of insurers in the country when measured for performance. This Ward 50 designation is indicative of the company’s financial management and its ability to meet its obligations to pay claims.
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Maine Employers' Mutual Insurance Company (MEMIC), based in Portland, Maine, is Maine's largest and leading workers' compensation insurer, providing coverage to 20,000 Maine employers and their estimated 170,000 employees. The company is rated “A” (Excellent) by A.M. Best. MEMIC is the parent company of MEMIC Indemnity Company (rated A- Excellent by A.M. Best). MEMIC Indemnity Company is a workers’ compensation specialty company licensed to underwrite insurance in New Hampshire, Vermont, Massachusetts, Connecticut, New York, Pennsylvania, New Jersey, Maryland, Delaware, South Carolina, Florida, Mississippi, Illinois and Utah.
MEMIC, the state’s largest workers’ compensation insurer, will be mailing checks for approximately 3.3 percent of each eligible policyholder’s paid premium for policies that began in 2002. MEMIC has returned cash to its policyholders every year since 1998, totaling $58.0M.
“Our policyholders have shown loyalty to our company and many have worked hard to reduce injuries,” said MEMIC President and Chief Executive Officer John T. Leonard. “This dividend is a reward for that effort and for working with a mutual insurer whose interest is not in serving stockholders. Further, it is an indication that Maine’s workers’ compensation system is stable and is serving both employers and employees very well.”
In mid-November, more than 19,500 checks will go to policyholders in amounts of up to $50,000, relative to the workers’ compensation premium paid to MEMIC for their 2002 policy. This dividend was approved by the company’s Board of Directors at its quarterly meeting.
Leonard said MEMIC’s customers should look forward to future dividends if they can maintain their attention toward workplace safety. Leonard cautioned, however, that MEMIC was keeping a close eye on medical inflation, which makes treatment of injured workers more expensive every year. Finally, Leonard pledged that his company will do all in its power to make sure that any fraud or abuse of workers’ compensation – whether by employers or employees – would be prosecuted to the full extent of the law.
“There are many factors involved in workers’ compensation costs in Maine,” Leonard said, “but the bottom line is that we are attentive to each of them. Through efforts in workplace safety, reining in medical costs and prosecuting fraud, MEMIC is focused on serving its policyholders and creating results like this dividend.”
In August, MEMIC was cited for the fourth consecutive year by an insurance industry study as being among the top two percent of insurers in the country when measured for performance. This Ward 50 designation is indicative of the company’s financial management and its ability to meet its obligations to pay claims.
###
Maine Employers' Mutual Insurance Company (MEMIC), based in Portland, Maine, is Maine's largest and leading workers' compensation insurer, providing coverage to 20,000 Maine employers and their estimated 170,000 employees. The company is rated “A” (Excellent) by A.M. Best. MEMIC is the parent company of MEMIC Indemnity Company (rated A- Excellent by A.M. Best). MEMIC Indemnity Company is a workers’ compensation specialty company licensed to underwrite insurance in New Hampshire, Vermont, Massachusetts, Connecticut, New York, Pennsylvania, New Jersey, Maryland, Delaware, South Carolina, Florida, Mississippi, Illinois and Utah.