State of West Virginia - West Virginia Legislature

West Virginia Board of Risk & Insurance Management2011 Annual ReportResults of OperationsBelow are audited results from operations of four most recent fiscal years ended June 30:2007 2008 2009 2010(In thousands)Operating Revenues:Premiums $80,248 $72,986 $62,427 $58,007Less Excess Coverages (6,151) (6,394) (5,944) (6,257)Net Operating Revenues 74,097 66,592 56,483 51,750Operating Expenses:Claims & Claims Adjustment 35,136 42,982 36,604 31,668General Administrative 4,305 4,247 3,894 3,946Total Operating Expenses 39,441 47,229 40,498 35,614Operating Income (Loss) 34,656 19,363 15,985 16,136Non-Operating Revenues:Interest Income, Appropriations 18,047 10,572 7,343 25,113Net Income 52,703 29,935 23,328 41,249Retained earningsat beginning of year 44.844 97,547 127,630 150,958Change in accounting principle forother post employment benefits -- 148 -- --Retained earningsat end of year $97,547 $127,630 $150,958 $192,207BRIM has worked diligently for the past several years to maintain positive retainedearnings and eliminate its unfunded liability. In 1995 the unfunded liability was $60million dollars. Favorable loss patterns and adequate funding enabled BRIM to achievepositive retained earnings in 1998, 1999, 2005, 2006, 2007, 2008, 2009 and 2010. Forthe three years prior to 2005, BRIM had shown a deficit in retained earnings. Severalfactors, including unanticipated losses, contributed to BRIM losing money for thoseyears. BRIM may occasionally experience some adverse loss development. Premiumscontinue to be calculated on a basis consistent with exposure and loss trends. It is also