Calif. State Fund Reports Net Income of $171 Million

California State Compensation Insurance Fund has announced that it ended 2010 with $1.1 billion in new premium earned, and $171 million in net income.

The company’s online annual report shows that State Fund’s 2010 net income of $171 million was $28 million higher than the $143 million that the workers’ compensation insurance carrier carried in 2009.

The company’s combined ratio was 157.2 percent, compared with 157.8 percent in 2009. The loss ratio was 74.9 percent, compared to 75.3 percent in 2009. The loss adjustment expense ratio was 45.9 percent compared with 46 percent in 2009. And the underwriting expense ratio was 36.5 percent in 2010, compared with 36.4 percent in 2009.

CEO and President Tom Rowe said stubborn economic cycles are not new to State Fund, and the company has committed itself to becoming more efficient and effective to serve California employers. The company is downsizing its real estate footprint to consolidate operations where it is more economical to do business. The changes are expected to reduce annual operating costs by nearly $200 million by 2013, the company said.

“We have successfully managed problematic market cycles through our 98-year history of serving California businesses and their injured workers. We have served California for nearly a century and are positioned to continue to do so because of our financial strength and careful underwriting and investment practices,” Rowe said in a statement.

To view State Fund’s online annual report, visit http://www.statefundca.com/AnnualReports/2010/financial-report/index.html.

Topics California Profit Loss