RD109 - Virginia Birth-Related Neurological Injury Compensation Fund Market Review and Fund Performance Analysis for Period Ending December 31, 2007 and Financial Statements for Years Ended December 31, 2006 and 2005


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.

We are pleased to report that the Program's reserves grew by approximately $29 million to almost $214 million in 2007. However, the Program is still considered actuarially unsound. As you know, a stakeholders group including medical professions, insurance companies, claimant families and others met several times last year leading to several recommendations, some of which were included in legislation this year. While a positive step, unfortunately these changes have limited impact in regard to elimination of the Program's actuarial deficit.