State Fund Removed from Credit Watch

California’s largest workers’ comp carrier, State Compensation Insurance Fund (SCIF), was removed from Credit Watch status by Standard & Poor’s (S&P), which also reaffirmed the company’s “A” financial strength rating.

SCIF and several other workers’ comp carriers with significant exposure to the California market were put on Credit Watch in May 2000. At the time, S&P cited a California Workers’ Compensation Insurance Rating Bureau (WCIRB) study which had indicated a gross loss reserve deficiency of $4.7 billion for the state’s workers’ comp market as a factor in the action. S&P announced that the rating outlook is stable.