W. Va.’s privatized Brickstreet makes first payment to state

West Virginia’s workers’ compensation insurer BrickStreet Mutual Insurance Co. has made its first scheduled payment of $5.8 million on its outstanding surplus note to the state of West Virginia,

“These payments will go directly to the benefit of the workers compensation Old Fund, helping to pay back the systems long-term deficit,” Gov. Joe Manchin said in a prepared statement.

“As privatization continues to flourish, this places West Virginia on a level playing field with surrounding states to compete for economic development opportunities. I can’t emphasize enough how important this process has been for our states future.”

BrickStreet’s surplus note balance now stands at $185 million. The company is scheduled to make its next principal payment of $40 million plus interest on June 30, 2008.

As part of 2005 legislation to privatize West Virginia’s 90-year-old workers’ compensation system, BrickStreet received a $200 million surplus note to establish its business practices and begin building adequate reserves to pay claims for injured workers.