HEMIC Directors Declare $3.25 Mil Dividend

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July 20, 2009 - HEMIC

HONOLULU, HI --The Board of Directors of the Hawaii Employers’ Mutual Insurance Company, Inc. (HEMIC) has declared a $3.25 million dividend payable to qualifying policyholders. This is the third consecutive year that the HEMIC board has authorized a multi-million dollar dividend. Loyal HEMIC policyholders with good safety records qualified for the dividend by the rules of the dividend distribution plan adopted by the board.

HEMIC President and Chief Executive Officer Bob Dove said: “HEMIC’s directors felt that it was particularly important to pay a dividend during this challenging economy. Especially in these tough times we recognize the importance of sharing HEMIC’s success with the policyholders that have contributed significantly to our strong financial position. We want to emphasize that effective investments in safety pay dividends both figuratively and, for HEMIC insureds, literally.”

HEMIC is a Hawaii-domiciled insurer specializing in workers’ compensation insurance. The company is rated “A/Excellent and Secure” by A.M. Best and “A/Strong” by Fitch. Hawaii employers who follow a few simple rules are guaranteed coverage; premiums are tailored to the employer’s past loss history.

“HEMIC insures some of the safest employers in the state and some with unfortunate loss histories,” Dove said. “We anticipate that as in past years more than 60 percent of our members will receive a dividend.”

Dove noted that although the law does not allow HEMIC to guarantee future dividends, paying an annual dividend is a goal of HEMIC’s board of directors.

HEMIC is unique to Hawaii in that it is owned and governed by its policyholders, referred to as “members,” who meet annually to review results, conduct business and elect a Board of Directors. Directors must be HEMIC policyholders. The Board provides governance for the company. While this business model is unique to Hawaii, it has been proven successful in many states. The business model guarantees that the company serves the interests of its policyholders.

Media Contact: Bob Dove, 524-3642 x201