THURSDAY, 30 OCTOBER 2008
WorkCover’s unfunded liability increased to $984m (compared with $911m at 31 December 2007), after a loss of $140m for 2007-08. The Scheme is 60.8% funded, compared with 63.4% at 31 December 2007.
“Our results are a mixed bag – we collected more in levies and received fewer claims, and our claims performance has improved,” said WorkCover CEO, Julia Davison.
“But, like other investors, we have been hit by the global downturn in investment markets, which has contributed significantly to our loss.
“In the positive, the improvement in our claims performance was acknowledged by our actuary in this valuation. It shows a release of our claims liability of $68m over the past six months (when compared to the December forecast), taking into account a range of considerations, outlined in our annual report.
“Employers Mutual’s claim management is one of the factors that has contributed positively to WorkCover’s result for the year. Against our strategic plan target of $51.5m actuarial release, we achieved $61.8m.
“Our results show that further improvement in return to work remains critical for our Scheme. We are beginning, however, to see that the two-fold solution we now have in place in South Australia will deliver the improvement in return to work outcomes required to turn the Scheme around – that is, better claims management provided by Employers Mutual and legislative change of the Scheme,” Ms Davison said.
WorkCoverSA’s annual report for 2007-08 was tabled in Parliament today by the Minister for Industrial Relations, the Hon. Paul Caica. The 2007-08 results are the last that relate to performance under the former legislation.
Media enquiries: Simone Williams, WorkCoverSA – (08) 8238 5733 or 0412 500 048
WorkCover manages its investments in accordance with its long-term investment strategy. WorkCover’s investment returns in the short -term are therefore subject to changes due to market volatility. Over WorkCover’s 20-year history, WorkCover has achieved an annual return of approximately 10%, which is better than the appropriate benchmark return for its investment portfolio. WorkCover has no direct exposure to investments in sub-prime mortgage debt. More information about WorkCover’s investment strategy is available at www.workcover.com.