We are pleased to announce that Texas Mutual's board voted to pay $330 million in dividends two months early to support our policyholders. Texas Mutual is working diligently to deliver dividends to our policyholder owners and are on target to mail checks on April 20. Policyholders will also be able to log in to the Texas Mutual website on the 20th to see their dividend information.
Texas Mutual knows that supporting our policyholders during this uncertain time is more important than ever, which is why their board of directors has voted to pay dividends two months early. Like many of you, we don't know the economic impact that COVID-19 will have on our business, but Texas Mutual is in a good position to distribute these dividends in this critical time.
This year marks the 22nd year that Texas Mutual is paying dividends to their more than 57,000 policyholders, bringing the total to over $3.1 billion back to Texas businesses since 1999.
What is a Dividend?
As a policyholder-owned company, Texas Mutual clients contribute to their success when they make safety a priority and choose to do business with Texas Mutual. There are two components to earning a dividend. Safety, paid through the annual component, and loyalty, paid through the retention component. Our newer Texas Mutual policyholders can also earn dividends through the early qualifier program, which is paid in November. Since 1999, Texas Mutual has distributed over $3.1 billion back to Texas businesses.
Dividends are based on performance, are not guaranteed and must comply with Texas Department of Insurance regulations.