Financials
It is the policy of the Self-Insurers’ Security Fund (Fund) to invest its financial assets in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Fund.
The primary objective of the Fund’s investment policy is to generate investment income and modest growth of principal while avoiding excessive risk. The secondary objective is to maintain liquidity sufficient to meet cash flow projections.
The Fund’s target investment allocations, which may fluctuate, are 60 percent for fixed income assets, 35 percent for equities and 5 percent for cash and other equivalents. The maximum investment in equities.
Utilizing two third-party claims administration firms, the Fund currently manages more than 1,600 open claims from 44 active estates of the 68 estates turned over to the Fund since 1984. The current open estates represent an ultimate future claim liability – including administrative costs – of approximately $107 million.
The highest aggregate expense of claims paid by the Fund in any single year was $13.5 million. Currently, the Fund spends about $13 million per year to cover open estate claim payments and related claim administration costs.
Since early 2003, when the Fund was in a negative equity position of more than $50 million, the Fund now has gross assets of approximately $292 million as well as a $70 million line of credit.
More information can be found in the Fund’s 2008 — 2009 Financial Report & Independent Audit, as well as the Security Fund Investment Policy document.