Maine WC Insurer Warns of Loss Ratio Rise

October 14, 2024

Maine’s MEMIC Sets $18.7 Million Dividend, Warns of Loss Ratio Increase

  • The MEMIC Group’s board approved an $18.7 million dividend distribution to as many as 17,000 of the company’s eligible workers’ compensation policyholders. 
  • The 2024 dividend brings the total capital and dividend distributions paid to Maine policyholders to $370 million since 1998.
  • MEMIC Group President and CEO Michael Bourque warned, however,  that significant rate decreases over recent years, combined with several serious workplace injuries in recent months are leading to increasing loss ratios for the company. 
  • He called on policyholders to bring even greater focus on workforce safety to continue to pay double-digit dividends.
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Micro-Captive Regs Included in IRS, Treasury Update

  • Micro-captive insurance arrangements have been included in the 2024-2025 Priority Guidance Plan from the Internal Revenue Service and Treasury Department.
  • Under the plan, these small captive insurance companies would pay tax only on investment income, provided their written premiums stay below the annual threshold of $2.8 million in 2024, adjusted for inflation.
  • The IRS is finalizing regulations, first proposed in April 2023, which govern the disclosure of potentially abusive tax transactions.
  • These regulations specifically target micro-captive transactions, categorizing them as either listed transactions or transactions of interest. The IRS expects to finalize these regulations by mid-2025.
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Employers Holdings Hires Michael Pedraja as CFO

  • Employers Holdings, Inc. (NYSE: EIG) said that Michael Pedraja will join the company as Executive Vice President and Chief Financial Officer (Designate), effective Feb. 3, 2025. 
  • The company is the 19th-biggest participant in the workers’ compensation market, with 2023 direct premiums written worth $758.6 million, according to its second-quarter financial presentation.
  • He will assume the role of Executive Vice President and Chief Financial Officer effective on or about March 31, 2025.
  • He succeeds outgoing Executive Vice President, Chief Financial Officer, Michael Paquette, who will retire in March 2025.
  • Most recently, he served as Group Chief Financial Officer for Ariel Re Services.
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