SAN FRANCISCO, Nov. 15, 2013 /PRNewswire/ -- At its meeting today, the State Fund Board of Directors announced that Tom Rowe, CEO and President, and Dan Sevilla, CFO, will resign from State Fund.
Several years ago, State Fund's Board set the organization on a path to transform its operations by improving its transparency, accountability, efficiency, and productivity to ensure a stable and open workers' compensation insurance market.
"The executive team has done an outstanding job laying the foundation for State Fund's future," said Board Chair Larry Mulryan. "The Board thanks Tom for his vision and leadership and Dan for his outstanding fiscal stewardship. We will continue the transformational work that is well underway."
In the past several years State Fund has:
- Reduced annual operating costs by more than $260 million dollars, more than 25% since 2009.
- Further strengthened State Fund's financial position growing policyholder surplus to more than $6B – ensuring it can meet future market demands as needed.
- Declared $150M of policyholder dividends for the past two policy years.
- Developed and implemented a new pricing model that improves our ability to accurately price accounts.
- Streamlined workflows and launched new technology that improved both access to our prices and quote speed.
- Reduced portfolio of older claims by 21% through responsible settlements.
Rowe and Sevilla will step away from overseeing day-to-day operations immediately but will remain available for advice and consultation until the end of the year. The Board will immediately begin a search for a new CEO and has named Carol Newman, State Fund's General Counsel, as interim President effective immediately. Newman has been with State Fund since 2008 and has played an integral role in leading State Fund's transformation. Carol has had a long career in insurance that spans over 30 years, affording her the opportunity to oversee a wide breadth of insurance operations including claims, broker/agency management, human resources and government and industry affairs.
The Board also announced that it has appointed Pete Guastamachio as interim CFO. Guastamachio joined State Fund in 2009 and is State Fund's Chief Investment Officer. He has more than 30 years experience in the financial world having served as vice president-assistant portfolio manager for Bank of the West. He also served in a variety of positions with Argonaut Insurance.
"The executive team will remain focused on building a competitive company with a resourceful, creative workforce that provides fair prices and excellent service, and creates stability in the market," said Newman. "Our financial position is outstanding. It's going to take time to fully realize our vision, but it is clear we have made good progress. Most importantly, we, along with the employees of State Fund, are committed to getting it done."
Established in 1914 by the state legislature, State Fund is California's largest provider of workers' compensation insurance and a vital asset to California businesses. State Fund supports California's entrepreneurial spirit and plays a stabilizing role in the economy by providing fairly priced workers' compensation insurance, making California workplaces safe, and restoring injured workers.
SOURCE State Compensation Insurance Fund