Beacon Mutual announces dividend

THE BEACON Mutual Insurance Co. will distribute a $1 million dividend payment among its 12,000 policyholders.
THE BEACON Mutual Insurance Co. will distribute a $1 million dividend payment among its 12,000 policyholders.

WARWICK – The Beacon Mutual Insurance Co. on Thursday said it will issue a $1 million dividend payment to its more than 12,000 policyholders.

This dividend is in addition to Beacon’s 3.6 percent rate reduction last year. The company said it expects another rate reduction on Oct. 1.

Beacon Mutual, which is the state’s largest provider of workers’ compensation insurance, said in a news release that it will begin issuing the dividend during the second quarter.

“As a mutual insurance company we operate for the benefit of our policyholders. We are pleased to be able to assist Rhode Island businesses – our policyholders – with both rate reductions and dividend offerings,” Beacon Mutual President and CEO James V. Rosati said in a statement. “This dividend and rate reduction will collectively result in $5.3 million being returned to the state’s economy.”

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Rosati said this is the seventh year in a row of dividends to Beacon policyholders. He said it is the result of capital gains on investments.

The dividend will be distributed to all policyholders insured by the company as of Dec. 30, 2016, who have been insured for one year and whose premiums are paid in full.

According to its website, Beacon Mutual, chartered by the state in 1990, has 60 percent of the workers’ compensation market, and serves both the competitive and residual markets.

“Beacon Mutual’s commitment to excellence contributes to keeping workplaces safe for Rhode Islanders and results in a high quality customer experience for policyholders,” Gov. Gina M. Raimondo said in prepared remarks.

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