SAN FRANCISCO, April 3, 2013 /PRNewswire/ -- State Fund's Annual Report for 2012 was released online today.
The report shows a significant increase in net income for California's largest workers' comp insurer. For 2012, State Fund's income before dividends totaled $458 million, which was $279 million more than the prior year.
The report also indicates that State Fund reduced annual fixed expenses by $150 million dollars compared to 2009, and expects to achieve annual savings of more than $300 million by the end of 2014. These savings will help State Fund maintain fair pricing and bring value to a larger swath of the available market.
"I am proud to report that at the end of 2012, we began to realize our vision of a more effective State Fund, and that we are on a sustainable path to become the competitive, agile workers' compensation carrier envisioned by our core mission," remarked Tom Rowe, State Fund President and CEO in the report.Rowe added that, "State Fund is emerging from its restructuring stronger, more efficient, and better able to deliver value to our policyholders, and injured workers—the greatest thing we can do for Californians." The report comes as State Fund approaches the three-year mark of implementing a comprehensive restructuring plan aimed at consolidating operations, shrinking its real estate footprint, and reducing operating expenses. 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. SOURCE State Compensation Insurance Fund