The Board of Directors of the Hawaii Employers' Mutual Insurance Company Inc. has declared a $5 million dividend payable to qualifying policyholders.

It is the second consecutive year that the board has authorized a $5 million dividend. Loyal policyholders with good safety records qualified for the dividend, according to the dividend distribution plan adopted by the HEMIC board.

"HEMIC's directors recognize the importance of sharing our success with the policyholders that have contributed significantly to HEMIC's strong position," said Bob Dove, HEMIC president and chief executive officer.

"Our directors feel it is especially important in a sluggish economy to return money to loyal members with good safety records. The message is that the combination of loyalty and safety pays."

HEMIC is a Hawaii-based insurer specializing in workers' compensation insurance. The company is rated "A/Excellent and Secure" by A.M. Best and "A/Strong" by Fitch.

"This means we insure some of the safest employers in the state and some with unfortunate loss histories," Dove said. "Last year more than 60 percent of our members earned a dividend. This year, when the number crunching is done, we expect a similar result."

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 owned and governed by its policyholders, or "members," who meet annually to review results, conduct business and elect a board of directors.