.

NUCLEAR ELECTRIC INSURANCE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

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

Net income (loss)
$5,228 $ (180,588)

Adjustment to reconcile net income (loss) to net cash used in operating activities:
.
Net realized gains on sales of investments
(211,012)
(198,538)
Amortization of premiums and discounts on investments
(9,435)
(10,006)
Changes in assets and liabilities which provided (used) cash:
.
Accrued interest receivable
2,603 3,689
Deposit premium
- 0 - 22,524
Unpaid losses and loss expenses
25,913 6,171
Unearned premiums 3,290 (21,572)
Prepaid reinsurance premiums (499) 562
Prepaid income taxes 5,774 35,381
Prepaid expenses and other assets (1,165) (3,237)
Amounts due from policyholders, net (3,626) 11,396
Accounts payable and accrued expenses 861 361
Decrease in deferred income taxes, net (8,010) (87,495)
Distribution to policyholders - declared 400,000 730,000
Payment of policyholders’ distributions (585,777) (744,223)

Total adjustments (381,083) (254,987)

Net cash used in operating activities (375,855) (435,575)

INVESTING ACTIVITIES
Proceeds from sales of investments:
Fixed maturities 3,593,278 2,657,856
Equity securities 772,407 821,102
Other investments 64,361 85,393
Maturities of investments - fixed maturities 370,992 1,193,365
Purchases of investments:
Fixed maturities (3,990,375) (3,882,281)
Equity securities (431,485) (447,126)
Other investments (5,266) - 0 -

Net cash provided by investing activities 373,912 428,309

Net Decrease in Cash (1,943) (7,266)

.
CASH
Beginning of year 11,841 19,107

End of year $ 9,898 $ 11,841

See notes to consolidated financial statements