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The board of directors for California’s State Fund Compensation Insurance approved a $100 million dividend to qualifying policyholders for the 2013 policy year.
The dividend represents roughly 8.6 percent of policyholders’ 2012 estimated annual premium.
“State Fund has made significant progress this year by improving efficiency and establishing a new rate structure to provide fairly-priced workers’ compensation insurance,” Larry Mulryan, board chair, said in a statement. “We are committed to being a competitive workers’ compensation insurance provider that brings value to California employers. Part of that value is the ability to return funds to our policyholders in the form of a dividend.”
This action brings total dividends declared since 2011 to $250 million. Since its inception State Fund has paid more than $5 billion in dividends to policyholders, according to the organization.
State Fund President and CEO Tom Rowe and Chief Financial Officer Dan Sevilla will resign from State Fund, the board of directors for California’s largest worker’s compensation provider announced on Friday following a closed session meeting. There have been no updates since on the matter since the announcement.