Workers' comp insurer MEMIC Group will pay out dividend of $18.7M to policyholders

Photo / Renee Cordes Michael Bourque, president and CEO at MEMIC, speaks at the Mainebiz CEO Forum on Wednesday, Oct. 9.

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By Peter Van Allen

The MEMIC Group announced Wednesday that its board approved a $18.7 million annual dividend distribution to as many as 17,000 eligible policyholders.

The policyholders receive workers’ compensation insurance through Portland-based MEMIC.

This 2024 dividend brings the total capital and dividend distributions for Maine policyholders to $370 million since 1998.

Michael Bourque, MEMIC Group's president and CEO, made the announcement about the dividend at the Mainebiz CEO Forum in South Portland.

"This year's dividend, equal to approximately 11% of premiums paid to MEMIC in 2021, reflects our policyholders' commitment to workforce safety,” Bourque said. "It underscores our collective efforts to prevent injuries and ensure injured workers receive the best medical care for a safe return to work."

Last year, MEMIC distributed a dividend of $18 million.

Mutual insurance model

Bourque emphasized MEMIC's mutual insurance model.

"As a mutual company, we champion injury prevention and management. It benefits our policyholders, their workers, and makes financial sense. We applaud our policyholder members for earning this dividend," he said.

But in a press release, the insurer also cautioned that "significant rate decreases over the last few years, coupled with a spate of serious workplace injuries in recent months are leading to increasing loss ratios for the company."

For the insurer to continue to pay double-digit dividends, he urged employers to be diligent about workplace safety.

“We’re seeing some tragic events occurring in our workplaces all over Maine,” Bourque said. “These are life-altering injuries which are avoidable in almost every circumstance. We all need to pay attention to
the risks that surround us at work every day.”

MEMIC said the annual dividend is not guaranteed but "reflects employers' success in injury prevention and
management, as well as MEMIC's operational and investment performance."

The dividend, which will be mailed to policyholders in November, is based on performance from the 2021 year.

About MEMIC Group

The MEMIC Group includes MEMIC Indemnity Co., MEMIC Casualty Co. and parent company Maine Employers’ Mutual Insurance Co. All are rated “A” (excellent) by A.M. Best. MEMIC Group holds licenses to write workers’ compensation across the country.

Headquartered in Portland, the group insures and serves nearly 21,000 employers and their estimated 300,000 employees with safety and injury-management service teams from Maine to Florida.