WorkSafe weathers financial storm

WorkSafe Victoria has improved its financial position with a solid increase in its performance from insurance operations and a record reduction in workplace injuries in the first half of this financial year.  

WorkSafe’s performance from insurance operation (PFIO) – the key measure of the scheme’s financial performance – rose to $288m for the half year compared with $168m at the same time in 2008-09.

PFIO is the most accurate measurement of the scheme’s performance as it reflects the matters WorkSafe can control (such as claims management) and excludes the impact of fluctuating investment markets.

An actuarial release (improvement on forecast claims liabilities) of $57m is up from $7m at the same time in the previous year. Also adding to WorkSafe’s positive financial position is a funding ratio of 109 percent.

An improving investment market has driven a $686-million after-tax profit compared with a paper loss of $1.42 billion at the end of the first half of the 2008-09 financial year.

The interim figure on workers compensation claims per thousand workers stands at 10.32 down from 10.8 per 1000 workers at the end of the last financial year.

Ms Elana Rubin, the Chair of WorkSafe Vic, said while the financial results and the reduced injury rate, pointed to a financially sound and well-managed workers compensation system, reduced hours worked during the economic downturn may have helped cut the injury claims rate.