RD67 - Annual report on the Investments and Assets of the Virginia Birth-Related Neurological Injury Compensation Fund - Years Ending December 31, 2004, 2003 and 2002


Executive Summary:
In compliance with Virginia statute 38.2-5015, paragraph B and 38.2-5016, paragraph F, please find enclosed a complete report regarding the investments of the Virginia Birth-Related Neurological Injury Compensation Fund and a copy of our most recent audit.

For the year 2005, the Program's reserves grew by approximately $19 million to almost $160 million. Unfortunately, as you may already be aware of, the Program is still considered actuarially unsound. The Board of Director's is working hard to correct this situation through the following actions:

• Improvement of investment returns through working with an independent investment advisory group.
• In accordance with HJ646 a funding study has been completed by the Program in conjunction with the State Corporation Commission, other key agencies and the medical community;