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.