West Va.’s Brickstreet Mutual Reports Profitable First Year

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The company that runs the state’s workers’ compensation program said it earned $70.7 million during its first year in business.

The profit will help build BrickStreet Mutual Insurance Co.’s reserves to take care of long-term debt, company spokesman Andy Wessels said.

Long-term liabilities include about $490.5 million in injured workers’ claims and a $200 million loan from the state that BrickStreet must begin paying down this year.

BrickStreet reported a net underwriting gain of $32.2 million. Premium collections totaled $761.4 million in 2006, while underwriting costs were $729.2 million.

It made another $32 million on investments, $6.2 million for administering old claims from the Workers’ Compensation Commission and $429,654 in finance and service charges.

Brickstreet, which took over the state’s workers’ compensation system in January 2006, has 38,000 policyholders.

It is the state’s only provider of workers’ compensation insurance until July 1, 2008, when the market opens to competitors.

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Information from: Charleston Daily Mail,
http://www.dailymail.com