As the carrier that says “yes” to California businesses, State Fund has a responsibility to remain financially sound and ensure California can depend on us to keep our promises now and in the future. We take this responsibility to heart. With increased returns on investment income and a strong surplus, our financial position remains strong.
State Fund’s 2017 Annual Report reveals that we continue to be strong and stable through sound investments and a solid financial foundation built from years of prior earnings. Though the report does show a drop in premium in 2017, which has been driven by a combination of rate reductions and a competitive market, competition is good and California employers are the winners in this environment. Our financial strength enables us to withstand soft markets so we will be here to serve California—today and in the future.
Important financial highlights from the report include:
- $1.3 billion in premium
- 149.4 percent combined ratio, primarily due to the reduction in premium, and a decision to strengthen loss adjustment expense reserves.
- $619 million in investment income.
- $40 million net income.
“A strong financial position allows us to concentrate on what is ultimately the purpose of workers’ compensation coverage – which is caring for people and providing an important safety net for Californians,” said Vern Steiner, State Fund President & CEO.
In his president’s letter accompanying the financial report, Steiner points out that State Fund has made important changes to enhance its medical management of claims, resulting in significant cost savings and quicker resolution. Our accomplishments also include significant results in reducing opioid prescriptions, saving lives as well as money. Another highlight shows the positive results of our new loss prevention strategy.
Whether you are a numbers person and enjoy the minutiae of financial details, or prefer a summary, our 2017 Annual Report is a compelling read.