2017 Financial Summary

Cash Flow

State Fund’s statements of cash flow are summarized below:

(In millions)   2017 2016
Premiums collected net of reinsurance $ 1,265 1,506
Net investment income   696 715
Miscellaneous income   20 16
Benefits and loss related payments   (1,028) (933)
Other underwriting expenses   (792) (847)
Dividend paid to policyholders   (0) (13)
Net cash used in operations   161 444
Proceeds from investments sold, matured, or repaid   3,275 3,470
Cost of investments acquired   (3,365) (3,759)
Net cash provided by (used in) investments   (90) (289)
Net cash provided by financing and miscellaneous sources  
(107)

7
Net change in cash, cash equivalents and short-term investments  
(36)

162
Cash, cash equivalents and short-term investments, beginning of year  
224

62
Cash, cash equivalents and short-term investments, end of year
$

188

224

 

Primary sources of cash included cash flow from premiums, investment income and the sale or maturity of invested assets. Primary uses of cash included the purchase of long-term investments and the payments of benefits, loss related expenses, and other underwriting expenses.