The Exchange’s financial results for the year ended December 31, 2007 exhibit stable surplus growth due to the continued adherence to pricing its business at a goal of a 100% combined ratio. The actual combined ratio was 99.8% for the year as compared to 99.4% for 2006.

Total assets increased from $279.5 million at the end of 2006 to $313.0 million at December 31, 2007. This increase results mostly from an increase in operating cash flows. Premiums written reflected a modest 3.8% increase, from $132.4 million in 2006 to $137.5 million in 2007.

Surplus increased to $97.6 million at December 31, 2007 from $85.2 million at year-end 2006, an increase of $12.4 million. This increase resulted from a net increase in operating activities during the year, and was offset by the payment of $2.3 million in member and discontinued subscriber distributions during 2007.

Net margins for the year are $15.2 million compared to $9.9 million in 2006.