California’s State Compensation Fund’s annual report for 2012 was released online Tuesday, and it reflects an increase in net income for California’s largest workers’ comp insurer.
The report comes as State Fund approaches the three-year mark of a restructuring plan aimed at consolidating operations, shrinking its real estate footprint, and reducing operating expenses.
For 2012, State Fund’s income before dividends totaled $458 million, which was $279 million more than the prior year, the report shows.
The report also shows that State Fund reduced annual fixed expenses by $150 million dollars compared with 2009, and expects to achieve annual savings of more than $300 million by the end of 2014.
“I am proud to report that at the end of 2012, we began to realize our vision of a more effective State Fund, and that we are on a sustainable path to become the competitive, agile workers’ compensation carrier envisioned by our core mission,” Tom Rowe, State Fund president and CEO, said in a statement. “State Fund is emerging from its restructuring stronger, more efficient, and better able to deliver value to our policyholders, and injured workers—the greatest thing we can do for Californians.”
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