State Compensation Insurance Fund announced plans to distribute an approximate $55 million dividend to its qualifying policyholders with policies that took effect between January 1 and December 31, 2021.

This dividend equals approximately 5% of the estimated annual premium reported during that period.

In 2021, State Fund reported approximately $1.1 billion in estimated annual premium (EAP) and approximately $159 million in realized capital gains.

“Due to the significant capital gains we realized in our equity portfolio, and our strong financial position, we are able to return money to our policyholders for the third consecutive year,” said State Fund President & CEO Vern Steiner.

“We are always looking for ways to help our policyholders improve their bottom lines and invest in California’s economy and we’re pleased to be able to provide this support.”

Since its creation in 1914, State Fund has paid out more than $5 billion in dividends to policyholders.

State Fund policyholders eligible for the 2021 dividend will begin to receive their payments after the expiration date of their individual policies.

Last year, it announced plans to distribute an approximate $39 million dividend to its qualifying policyholders with policies that took effect between Aug. 27 and Dec. 31, 2020.

This 2020 dividend equaled approximately 10% of the estimated annual premium reported during that time period.

That announcement followed up State Fund’s August declaration of an approximate 10% mid-year dividend that applied to all policies incepted between Jan. 1 and Aug. 26, 2020. The dividend distribution for the entire year equals approximately $114 million.