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NUCLEAR ELECTRIC INSURANCE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

YEARS ENDED DECEMBER 31, 2001 AND 2000 (In thousands of U.S. Dollars)

2001 2000

Premiums earned $182,788 $161,189
Reinsurance premiums assumed 17,561 17,830
Reinsurance premiums ceded (34,605) (32,572)

Net Premiums Earned 165,744 146,447

Losses and loss expenses 90,947 17,177
Administrative expenses 17,385 16,005

Total underwriting expenses 108,332 33,182

Earnings from Underwriting Operations 57,412 113,265
Investment income 133,637 154,438
Net realized gains on sales of investments 211,012 198,538
Investment expenses (4,812) (6,127)

Earnings Before Distribution to Policyholders and Income Taxes 397,249 460,114
Distribution to policyholders 400,000 730,000

Loss Before Income Taxes (2,751) (269,886)
Income tax benefit (7,979) (89,298)

Net Income (Loss) 5,228 (180,588)

Other Comprehensive Loss, Net of Income Taxes
Foreign currency translation adjustment
[net of income taxes of $525 - 2001 and ($12,952) - 2000] 975 (24,053)

Unrealized losses arising during the period
[net of income taxes of ($149,480) - 2001 and ($95,966) - 2000] (277,606) (178,223)
Less: Reclassification adjustments for gain including net income (loss)
[net of income taxes of $73,854 - 2001 and $69,488 - 2000] 137,158 129,050

Total unrealized losses arising during the period (414,764) (307,273)

Other Comprehensive Loss, Net of Income Taxes (413,789) (331,326)

Comprehensive Loss $(408,561) $(511,914)

See notes to consolidated financial statements