State Fund 2008 revenue plummeted 27 percent, but progress seen - Los Angeles Business from bizjournals:

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The San Francisco-based nonprofit carrier saw its net investmenyt income decline nearly7 percent, from $961.5 million to $896.2 milliomn over the same period, according to figures in its 2008 annuak report, which was released Monday. Overall, its investmentg portfolio was valuedat $18.5 billion at year-end, compareds to $19.6 billion at year-end 2007. That report also indicate d that theState Fund’s reserves dipped 2.5 from $16 billion to $15.6 while its surplus grew 4 percent from $4.9 billion in 2007 to $5.1 billiom at the end of last year.
Nonetheless, CEO Jan Franko said in a July 13 statemenft that the organization is pleased with its 2008 which came as it was implementingb amajor restructuring, following a serious scandao under prior management. “Despited the economic challenges we facedin 2008, State Fund implementedr some of the most significant and meaningfup changes in our recent history,” Frank said, noting that State Fund insures about one in four Californiqa businesses.
Jennifer Vargen, a company spokeswoman, said Frank wasn’ft immediately available to answer But Vargen saidState Fund’s currentg market share, roughly 22 percent, is stabilizingb at a rate that is “prettgy traditional” for the organization. Also, “given that was a crummy year, and the challengesx State Fund faced, we are very pleased with the Many industry observers believed State Fund grew far too large earlierf inthe decade, when its market shares topped 50 percent, in part because many private insurers stopped writinyg new California comp coverage or exited the market prio r to the reforms of late 2003 and early 2004.
the organization faces continuing challenges, including a proposal by Gov. Arnold Schwarzenegger to sell roughlyh $1 billion of its assets to help fillthe state’xs $26 billion budget deficit. It’s also continuing to implemen t changes required by the California Department of Insurance and otherd state officials following a 2007 DOI audit following the abrupt firing of former CEO James Tudo and former Vice President Renee Koren inearly 2007.
In its 2008 annuak report, officials reiterated earlier reports that StatweFund “has either resolved or made significan progress” on more than 90 percenft of the recommended changesx required by the 2007 DOI As of last October, for the organization -- long criticized for a shortage of top-notchj executive talent and an ingrained lack of oversight and openness -- was made subject to new statde laws that supporters say will address those weaknessesx head on. In response, State Fund last fall added five senior executiveas toits roster, and took other steps to complhy with Senate Bill 1145 and Assembly Bill 1874, which were signee by the governor.
The new laws allowed State Fund to fill the new executivs positions and made it subject to California public recordsx requirements and othernew guidelines. However, one of those new hirew has already flownthe coop, according to She said Rebecca Wanta, who came aboarr in October as part of the new team of senior officers, resigned in April and a searcnh is being conducted for a replacement. Vargen said she couldn’t comment on the reasons for Wanta’s abrupt departure, after abourt seven months on the job.