State Fund’s 2008 Annual Report

Dear Valued Association Partner

I am very pleased to provide this link to State Fund’s newly published 2008 annual report.

Despite the economic challenges we faced in 2008, State Fund implemented some of the most significant and meaningful changes in our recent history, which makes this the ideal time to reflect on our accomplishments. The cover photo is the perfect image for this year – State Fund is indeed open for business: we insure one in four California businesses. We’re an important pillar for California’s economy and millions of Californians depend on us every day.

State Fund remains financially strong and stable. We finished 2008 with $1.66 billion in earned premium, compared to $2.27 billion in 2007. Our investment portfolio was valued at $18.5 billion, compared to $19.6 billion in 2007. Net investment income was $896.2 million, compared to $961.5 million in 2007. Reserves were $15.6 billion, compared to $16.0 billion in 2007.

State Fund’s successes in 2008 included making significant progress in responding to the California Department of Insurance audit, quickly implementing the Bagley-Keene Open Meeting Act and California Public Records Act, and recommitting to a culture prioritizing stellar service.

I invite you to take a look at our new report. Thank you again for your support of State Fund.

Jan Frank

President & CEO