In a Christmas gift to thousands of employers in Los Angeles County and across the state, State Compensation Insurance Fund has agreed to return $50 million to most of its policyholders throughout the next year.

San Francisco-based State Fund is the largest workers’ compensation insurance carrier in the state with more than 130,000 employer policyholders. The $50 million dividend will be distributed as premium credit to all policyholders who have paid their premiums on time and met other conditions.

“This dividend declaration is a positive development for California employers,” said Larry Mulryan, State Fund’s chairman.

State Fund initially announced last month that it would distribute the premium credits to employers who renew next year with the carrier. But after discussions with state Insurance Commissioner David Jones, the carrier removed that restriction.

State Fund, which was founded in 1914, last declared a dividend in 2001, which was more than $92 million.