VACAVILLE, CA -- State Fund’s 2011 Annual Report debuted online today. The report reveals that State Fund ended 2011 with just over $1 billion dollars in net premiums earned.
State Fund President and CEO Tom Rowe said, “Our financial summary reveals well-executed pricing disciplines, and improving results from the most experienced claims team in the marketplace. We are starting to see benefits from expense management protocols, and the consistent performance of a well-balanced and highly secure investment strategy.”
“We made sufficient progress in 2011 to support the declaration of a $50 million dividend for our policyholders, the first in a decade, so we know we are on the right track,” Rowe continued.
State Fund is in the second year of its three-year plan to consolidate operations, shrink its real estate footprint, and reduce operating expenses. Annual savings from the plan are anticipated to be $350 million, further strengthening State Fund’s position to fulfill its mission to provide California’s businesses a strong and stable choice for their workers’ compensation insurance while making workplaces safer and helping injured employees return to work – with no financial obligation to the public.
Rowe said in the report, “We are proud to have served California for nearly a century, and have the passion, commitment, dedicated staff, and are well positioned to serve California for the next 100 years.”
EDITOR’S NOTE: Established in 1914 by the state legislature, State Fund is California’s largest provider of workers’ compensation insurance and a vital asset to California businesses. Completely self supporting, State Fund plays a stabilizing role in California’s economy by maintaining an open door policy that ensures all employers have a strong and stable option for their workers’ compensation needs.
Under California law it is unlawful for an insurer to promise the future payment of dividends under an unexpired workers' compensation insurance policy or to misrepresent the conditions for dividend payment. Dividends are payable only pursuant to conditions determined by the Board of Directors or other governing board of the Company following policy expiration. It is a misdemeanor for any insurer or officer or agent thereof, or any insurance broker or solicitor, to promise the payment of future workers' compensation dividends. Past dividend performance is no guarantee of an insurer's future dividend performance.