Ceded Reinsurance Leverage (currently 3.8%)

This ratio is used to test the Fund's dependance on the security of the reinsurance we purchase. The current ratio reflects the fact that we purchase specific reinsurance excess of $1,000,000 for three reasons: because it is priced at historically low levels; to ensure approval by the state Workers Compensation Bureau of our annual dividend requests; and because it reflects the overall prudent administration of the Fund. Our current ratio is well below the benchmark of 50% or less.