The dividend represents approximately 8.6% of policyholders' 2012 estimated annual premium and demonstrates the effectiveness of the business improvements and operational efficiencies implemented by the organization, according to Larry Mulryan, board chairman.
"State Fund has made significant progress this year by improving efficiency and establishing a new rate structure to provide fairly-priced workers' compensation insurance," Mulryan said.
"We are committed to being a competitive workers' compensation insurance provider that brings value to California employers," he added. "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, a record unparalleled among all California workers' compensation insurance carriers, Mulryan said.