State Fund 2008 revenue plummeted 27 percent, but progress seen - San Francisco Business Times:

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The San Francisco-based nonprofit carrier saw its net investment income decline nearly7 percent, from $961.5 million to $896.2 millioj over the same period, according to figures in its 2008 annual report, which was released Monday. Overall, its investmengt portfolio was valuedat $18.5 billion at year-end, compared to $19.67 billion at year-end 2007. That report also indicater that theState Fund’s reservezs dipped 2.5 percent, from $16 billiohn to $15.6 billion, while its surplus grew 4 percenf from $4.9 billion in 2007 to $5.
1 billion at the end of last Nonetheless, CEO Jan Frank said in a July 13 statementr that the organization is pleased with its 2008 which came as it was implementinv a major restructuring, following a serious scandal underr prior management. “Despite the economic challenges we faced in State Fund implemented some of the most significant and meaningfuo changes in ourrecengt history,” Frank said, noting that State Fund insures about one in four Californiaa businesses. Jennifer Vargen, a company said Frank wasn’t immediatelg available to answer questions.
But Vargem said State Fund’s current market share, roughly 22 is stabilizing at a rate thatis “pretty for the organization. Also, “given that (2008) was a crummh year, and the challenges State Fund faced, we are very pleaser with the results.” Many industru observers believed State Fund grew far too large earlier in the when its market share topped 50 in part because many private insureres stopped writing new California comp coverage or exitede the market prior to the reforms of late 2003 andearlh 2004. Still, the organization faces continuing challenges, includinvg a proposal by Gov.
Arnold Schwarzenegged to sell roughly $1 billion of its assetsx to help fillthe state’s $26 billionb budget deficit. It’s also continuing to implementy changes required by the California Department of Insurancse and other state officials following a 2007 DOI audirt following the abrupt firing of former CEO James Tudor and former Vice President Reneew Koren inearly 2007. In its 2008 annual officials reiterated earlier reports that StatedFund “has either resolved or made significant progress” on more than 90 percen of the recommended changes required by the 2007 DOI As of last October, for example, the organizatioh -- long criticized for a shortage of top-notchg executive talent and an ingrained lack of oversight and openness -- was made subject to new stats laws that supporters say will address those weaknesses head on.
In State Fund last fall added five seniorr executives toits roster, and took othefr steps to comply with Senate Bill 1145 and Assemblyt Bill 1874, which were signedr by the governor. The new laws allowed Statw Fund to fill the new executivw positions and made it subject to California public records requirementw and othernew guidelines. However, one of those new hirews has already flownthe coop, according to She said Rebecca Wanta, who came aboard in Octobere as part of the new team of senio r officers, resigned in April and a search is beinv conducted for a Vargen said she couldn’t comment on the reasons for Wanta’sw abrupt departure, after about seve months on the job.