Missouri Employers Mutual to pay $2M in dividends

Columbia-based Missouri Employers Mutual, which has a Springfield branch on East Republic Road, plans to pay more than $2 million in dividends to 11,033 policyholders during the spring.

In February, Missouri State Auditor Tom Schweich released an audit of MEM, which was created by state statute to provide Missouri employers, especially small businesses, the opportunity to receive workers' compensation liability at a reasonable cost. Though no significant red-flag issues were raised, the audit commented on MEM's failure to pay a dividend despite accumulating a surplus of roughly $163 million.

“It took many years of successful operation before we established the financial strength needed to pay a dividend," said MEM President and CEO Jim Owen in a news release. The mutual insurance firm opened its doors in 1995, and the Springfield office was launched two years later.

Owen noted the significance of MEM earning New Jersey-based insurance rating firm A.M. Best Co.'s A-, or excellent, financial strength rating in being able to pay dividends.

"We’ve regularly passed along financial success with rate reductions and pricing relief," he said in the release. "That MEM now has the financial strength to both reduce rates for 2012 and pay a dividend is exciting.”

Active and inactive MEM policyholders will receive dividends if their policies had effective dates in 2009.

MEM also has offices in Kansas City and St. Louis.[[In-content Ad]]