PORTLAND, Maine — The Maine Employers’ Mutual Insurance Co. will return more than $16 million to the Maine businesses it insures.
The amount is a record payout to the company’s nearly 18,000 policyholders in Maine, and it is a reflection of businesses’ efforts to reduce injuries on the job, according to a news release from MEMIC, which controls 60 percent of the commercial market in Maine for workers’ compensation insurance. In November 2012, the company issued a $13 million dividend.
The dividend payment is based upon MEMIC’s 2010 performance and represents approximately 13 percent of the premiums policyholders paid during that year, according to the release.
Businesses will receive on average more than $700, with the higher end of the range as much as $250,000, according to the release.
“This has to be tremendous news for employers who get their workers’ comp insurance from MEMIC,” John Leonard, MEMIC’s president and CEO, said in a statement. “This record return is made possible in part by employers and employees working together to reduce injuries at work.”
But a reduction in injuries isn’t the only thing driving an increase in dividend payments, Leonard said. The growth of MEMIC Group’s subsidiaries outside the state also contributed to the record return to Maine policyholders, he said.
“We are proud to say that our strategy to grow outside of Maine is succeeding,” he said. “As we grow, we are gaining the scale that helps us to generate more income, thereby helping to increase the size of the annual dividend.”
Once the checks are mailed in November, MEMIC will have returned more than $160 million to policyholders since 1998 and more than $100 million since 2006.