WorkSafe records strong results

24 September 2007

WorkSafe Victoria’s latest operational results have helped Victoria maintain its status as the safest place to work in Australia.

Ms Elana Rubin, Chair of the Board, today said that Victoria’s lowest ever injury rate and improved claims management, coupled with strong financial performance, have strengthened Victoria’s competitive advantage.

“Victoria is now safer than ever for workers and employers,” Ms Rubin said.

“We have a combined package of safe workplaces, low premiums and generous benefits for injured workers that puts us in the best overall position of any Australian scheme.”

In 2006/07, Victoria experienced less than 30,000 workplace injury claims for only the second time in its history, at a rate of 11.32 per 1,000 workers. This is a reduction from 12.19 claims per 1,000 workers the previous year.

Ongoing strong safety performance and sound financial management has allowed the Victorian Government to make four consecutive 10% cuts to average premium rates.

“Victoria’s workplace injury insurance scheme has developed into one of the few fully funded schemes in Australia,” Ms Rubin said. “This can only be achieved through strong safety and claims management performance, and healthy partnerships with stakeholders and the Victorian community.”

Ms Rubin said that while the 2006/07 results were good, there is further room for improvement.

“We cannot afford to be complacent. Workplace safety is everyone’s responsibility.”

“WorkSafe will continue to work with the community to create an environment where everyone can return home safely at the end of the day.”

WorkSafe’s financial results include a strong performance from insurance operations (PFIO) of $729 million, which has resulted from further improvement in the management of workers’ claims.

“PFIO is the best measure of the scheme’s health and performance as it directly reflects those aspects over which WorkSafe has control, particularly claims management,” Ms Rubin said.

Ms Rubin said that the results also reflect the impact of the investment environment.

“While strong investment returns have driven a net profit result of $1170 million, recent events in the US mortgage market demonstrate that such results cannot be taken for granted.”

“WorkSafe must continue to manage the scheme soundly to ensure the financial mistakes of the past are not repeated.”

WorkSafe has continued to reduce the long-term claims costs within the scheme with an actuarial release of $394 million - an almost $2 billion reduction since 2001/02.

The results take WorkSafe’s funding position to a historic high of 134%, up from 119% the previous year.

The year to June 2007 also saw WorkSafe pay more than $1.1 billion in total compensation payments for injured workers.

 

 Summary of financial results

	12 months to 30 June 2007
Actuarial Release	$394M
Performance from Insurance Operations (PFIO)	$729M
Net Profit	$1170M
Funding Ratio	134%