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Berkshire Hathaway Group Makes History
Posted by admin at 11:40 AM on Jun 13, 2018
The State Compensation Insurance Fund is no longer California’s largest writer of workers’ compensation coverage in California. The Berkshire Hathaway Group (NYSE: BRK.A) replaced the quasi-governmental carrier as number one during 2017. It is believed that this is the first time in its history that State Fund is not the largest writer of workers’ comp coverage in the state.
Berkshire’s ascension to the top seat, however, was driven more by SCIF’s loss of business rather than an increased appetite at Berkshire companies. Additionally, Berkshire’s controversial Applied Underwriters’ EquityComp Program has lost significant business.
Berkshire’s written premium remained flat at $1.4 billion for the group as a whole. The totals prove a significant shift away from California Insurance Company. CIC’s premium total dropped by $78 million, and its market share dipped below 2%. CIC is the paper behind Applied Underwriters’ EquityComp program.
Statewide, there were 71 carrier groups writing workers’ comp coverage in California during the last year with total written premium of $12.8 billion. It does not vary significantly from the 72 groups writing $13 billion in premium in 2016.
While California’s payroll has been on the increase, workers’ comp rates have been dropping since the 2012 Baker workers’ comp reforms took hold. Since the beginning of 2015, California’s advisory pure premium rates are down some 37%.