NUCLEAR ELECTRIC INSURANCE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2002 AND 2001 (In thousands of U.S. Dollars)
. . .
OPERATING ACTIVITIES
2002
2001

Net (loss) income
$ (49,089) $ 5,228

Adjustment to reconcile net (loss) income
to net cash used in operating activities:
.
Net realized losses (gains) on sales and
write-downs of investments
46,490
(211,012)
Amortization of premiums and discounts
on investments
(5,022)
(9,435)
Changes in assets and liabilities
which provided (used) cash:
.
Accrued interest receivable
3,160 2,603
Unpaid losses and loss expenses
57,541 25,913
Unearned premiums (4,146) 3,290
Prepaid reinsurance premiums 450 (499)
Prepaid income taxes 524 5,774
Prepaid expenses and other assets (240) (1,165)
Amounts due from policyholders 3,028 (5,726)
Ceded premiums payable (568) 2,100
Accounts payable and accrued expenses 372 861
Decrease in deferred income taxes, net (23,073) (8,010)
Distribution to policyholders - declared 250,000 400,000
Payment of policyholders’ distributions (400,000) (585,777)

Total adjustments (71,484) (381,083)

Net cash used in operating activities (120,573) (375,855)


INVESTING ACTIVITIES
Proceeds from sales of investments:
Fixed maturities 4,828,938 3,593,278
Equity securities 246,260 772,407
Other investments 13,726 64,361
Maturities of investments - fixed maturities 312,495 370,992
Purchases of investments:
Fixed maturities (5,071,945) (3,990,375)
Equity securities (209,898) (431,485)
Other investments - 0 - (5,266)

Net cash provided by investing activities 119,576 373,912

Net Decrease in Cash (997) (1,943)


CASH
Beginning of year 9,898 11,841

End of year $ 8,901 $ 9,898

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for interest $- 0 - $ - 0 -

Cash received during the year for income tax
$2,610,000 $5,599,000
See notes to consolidated financial statements