PLEASANTON, Calif.--(BUSINESS WIRE)--State Compensation Insurance Fund (State Fund) today announced plans to distribute an approximate $55 million dividend to its qualifying policyholders with policies that took effect between Aug. 20 and Dec. 31, 2019. This dividend equals approximately 15% of the estimated annual premium reported during that time period.
This announcement follows up State Fund’s August declaration of an approximate 15% mid-year dividend that applied to all policies incepted between Jan. 1 and Aug. 19, 2019. The dividend distribution for the entire year equals approximately $160 million.
Through 2019, State Fund is reporting approximately $1.2 billion in premium and $110 million in realized capital gains.
“Our mission is to provide fairly priced workers’ compensation coverage to any California entrepreneur who needs it,” said Vern Steiner, State Fund’s President and CEO. “Our current operating performance and financial condition allow us to continue to fulfill that purpose and return money to our policyholders at the same time.”
Since its creation in 1914, State Fund has paid out more than $5 billion in dividends to policyholders.
State Fund policyholders eligible for a 2019 dividend will begin to receive dividend payments during the second half of next year.
To learn more about State Fund, visit StateFundCA.com.
Disclaimer: 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.
About State Fund
Established in 1914 by the state legislature, State Fund is California’s most reliable provider of workers’ compensation insurance and a vital asset to California businesses. State Fund supports California’s entrepreneurial spirit and plays a stabilizing role in the economy by providing fairly priced workers’ compensation insurance, helping California employers keep their workplaces safe, and restoring injured workers. For more information, visit StateFundCA.com.