Pleasanton, CA – State Compensation Insurance Fund (State Fund) recently announced plans to distribute an approximate $75 million dividend to its qualifying policyholders with policies that took effect between January 1 and August 26, 2020. This dividend equals approximately 10% of the estimated annual premium reported during that period.
State Fund’s Board will consider dividends again for the remainder of the 2020 policy year later this year. While the board cannot guarantee future dividends, this mid-year declaration does not affect the possibility of a future payout for the remainder of the 2020 policy year.
Through July of this year, State Fund reported approximately $700 million in estimated annual premium and approximately $60 million in realized capital gains.
“We’re working hard to support our policyholders in every way we can during this difficult time,” said State Fund President and CEO Vern Steiner. “Due to our strong, stable financial position and the claims outcomes we’ve seen over the past several years, we’re able to return money to policyholders and we want to let them know it’s coming as early as possible. This is money they can count on as they plan for next year amidst so much uncertainty.”
State Fund has paid out more than $5 billion in dividends to policyholders over its history—more than any other California workers’ compensation carrier. Just last year State Fund declared an approximate $160 million dividend for 2019 policyholders.
State Fund policyholders eligible for a 2020 dividend will receive their payments after the expiration date of their individual policies.
Source: State Fund