The MEMIC Group will pay its policyholders $22 million in dividends this year, matching last year’s record amount, the workers’ compensation insurer said.
The amount represents 14 percent of the premiums paid to the mutual insurance company in 2016. Dividend payments lag by a couple of years because the insurer needs to complete claims filed each year before it can calculate its liabilities and determine dividends.
“In workers’ compensation insurance, it takes several years to know if policies produced a profit,” said Michael P. Bourque, MEMIC’s president and chief executive officer. “Gratefully, 2016 was another favorable year that we’re celebrating by declaring a dividend.”
Because MEMIC is a mutual insurance company, eligible Maine policyholders can share in its financial success if workers’ compensation costs remain low.
MEMIC said it will deliver checks as large as $200,000 in November to its 18,000 employer members.
MEMIC, which covers about 300,000 workers, also paid out $22 million in dividends in 2018.
The company is headquartered in Portland, but is licensed to write workers’ comp insurance policies across the country.
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