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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.

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Facts Regarding State Fund's Financial Strength

December 31, 2008

As we move through these challenging economic times we are confident State Fund will remain a strong and vital resource for California’s economy, providing security for California’s businesses and employees. State Fund’s financial strength is a result of our strong surplus, solid financial ratios, and our conservative investment strategy. With more than $20 billion in assets and $5 billion in surplus, State Fund is a rock-solid insurer.

A strong loss reserve and premium to surplus position

Premium to surplus ratio of .33 to 1.0
Reserve to surplus ratio of 3 to 1
A sound reinsurance program in place with A-rated reinsurers

Solid Investment Portfolio

Conservatively managed and diversified among issuers and sectors
Invested primarily in U.S. Treasuries, agency debentures and mortgage-backed securities guaranteed by FNMA, FHLMC or GNMA
Over 60 percent is rated Aaa/AAA
Average credit rating on the portfolio is AA+ by Standard & Poors
More than 99 percent of the holdings are rated A or better