Approximately $75 million will be returned to California businesses during this challenging economic environment
Pleasanton, CA—State Compensation Insurance Fund (State Fund) today announced plans to distribute an approximate $75 million dividend to its qualifying policyholders with policies that took effect between January 1 and August 26, 2020. This dividend equals approximately 10% of the estimated annual premium reported during that period.
State Fund’s Board will consider dividends again for the remainder of the 2020 policy year later this year. While the board cannot guarantee future dividends, this mid-year declaration does not affect the possibility of a future payout for the remainder of the 2020 policy year.
Through July of this year, State Fund reported approximately $700 million in estimated annual premium and approximately $60 million in realized capital gains.
“We’re working hard to support our policyholders in every way we can during this difficult time,” said State Fund President and CEO Vern Steiner. “Due to our strong, stable financial position and the claims outcomes we’ve seen over the past several years, we’re able to return money to policyholders and we want to let them know it’s coming as early as possible. This is money they can count on as they plan for next year amidst so much uncertainty.”
State Fund has paid out more than $5 billion in dividends to policyholders over its history—more than any other California workers’ compensation carrier. Just last year State Fund declared an approximate $160 million dividend for 2019 policyholders.
State Fund policyholders eligible for a 2020 dividend will receive their payments after the expiration date of their individual policies.
To learn more about State Fund, visit www.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.
State Fund is California’s leading provider of workers’ compensation insurance. Not for profit and funded solely by premiums and investment income, we’ve supported California’s entrepreneurial spirit and played a vital role in the state’s economy for more than 100 years. By innovating in areas such as workplace safety and injured worker care, we’re committed to serving California for the next 100 as well. To learn more or get a quote, contact your broker or visit www.StateFundCA.com.
