Many Mutual Insurance Companies Pay Dividends to Policyholders

Another medical liability insurance company recently announced the approval of a dividend for policyholders.  This is not unusual these days.  Mutual medical malpractice insurance companies that build surplus over and above operating costs, have more than adequate reserves for claims, and still have a profit after all other expenses often give the physician policyholders dividends either in the form of discounts at renewal or actual money back.  It makes good sense because giving money back shows that the company truly cares about its physicians and promotes customer loyalty.

This recent announcement comes from Texas Medical Liability Trust (TMLT).  They are giving $20 million back to physicians who renew in 2013.  This comes on the heels of a 2012 credit of $35 million and marks the 8th time that TMLT has declared a dividend.

In fact, in 2012 many mutual medical professional liability insurance companies in are giving dividends to physicians:

ISMIE in Illinois is giving $17 million back and has given dividends annually for six consecutive years, totaling $91 million.

TDC, a national company, is giving $21 million this year and has given dividends since 1976, totaling $228 million.

NORCAL in California is giving back up to 10 percent of the premium paid, and since 1975, has given $425 million in dividends.

  • TMLT in Texas is giving $35 million in dividends in credit at renewal in 2012.

MagMutual in Georgia is giving $15 million this year and has given a total of $108 million in dividends.

MICA in Arizona is giving back $50 million in dividends and has paid dividends for five years in a row, totaling $423 million.

BETA Healthcare Group in California is giving $16 million credit at renewal this year, which makes 20 consecutive years. Total dividends: $77 million. 

Of course, there’s no guarantee that an insurance company will give dividends or premium credits to its physicians, but when claims are down and profit is up, some companies choose to reward the physicians. 

If you’d like to learn more about the companies that the Keane Group partners with in your state, please contact us at: or 1-800-966-7731.