Beacon Mutual to return $6M in dividends to policyholders

Updated at 4:51 p.m.

BEACON MUTUAL INSURANCE CO. will distribute $6 million in dividends to policy holders in the third quarter tied to safety performance and policy size. Above, company President and CEO Brian J. Spero. / PBN FILE PHOTO/MIKE SKORSKI
BEACON MUTUAL INSURANCE CO. will distribute $6 million in dividends to policyholders in the third quarter tied to safety performance and policy size. Above, company CEO and President Brian J. Spero. / PBN FILE PHOTO/MIKE SKORSKI

WARWICK – Beacon Mutual Insurance Co. on Tuesday announced it will distribute $6 million in dividend payments to its “safest policyholders,” the largest dividend in the company’s history.

The insurance company is the largest provider of worker’s compensation insurance in Rhode Island.

The dividend also marks the first time the company has rewarded safety performance through a dividend, the Beacon said.

“As a mutual insurance company, we are owned by our policyholders.  Our interests are aligned with their interests. This dividend recognizes policyholders who have contributed to Beacon Mutual’s financial strength by demonstrating safety as a priority in order to keep workers safe and losses low,” said Beacon Mutual CEO and President Brian J. Spero. “We are pleased to share these results for the benefit of employee safety and our policyholders’ bottom line.”

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Policyholders will receive dividends based on premium size and safety results for policies in place as of Dec. 31, 2019. The company said it is expected to return 5% of a premium to 94% of policyholders.

“Workplace safety is essential for a healthy economy,” said Gov. Gina M. Raimondo. “This dividend will allow Rhode Island employers to reinvest in their businesses and make critical investments in workplace safety that will help our economy as it continues to grow.”

The company will begin making the dividend payments during the third quarter of 2020.

(SUBS last paragraph to clarify when payments begin and correct to 2020.)

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