Earnings History (Statutory basis)

Year	Premiums	Loss Ratio	Administrative Expense Ratio	Net Income	Net Income as a percent of Premiums	State/Federal Taxes Paid
1996	$499,939,032	90.0%	19.6%	-$21,538,315	-4.3%	-$11,241,870
1997	$508,624,532	86.8%	17.7%	$467,218	0.1%	$1,911,002
1998	$576,178,614	84.3%	16.6%	$6,332,774	1.1%	$5,038,278
1999	$668,241,391	84.5%	15.4%	$13,240,084	2.0%	$10,051,367
2000	$770,846,195	87.8%	12.5%	$11,223,248	1.5%	$7,676,886
2001	$912,914,679	82.7%	12.6%	$33,262,335	3.6%	$20,309,714
2002	$856,517,316	73.6%	14.4%	$48,155,161	5.6%	$36,115,106
2003	$901,717,448	76.7%	13.5%	$52,363,032	5.8%	$34,495,205
2004	$908,672,384	77.4%	12.2%	$61,856,418	6.8%	$37,119,436
2005	$916,509,993	78.0%	11.8%	$51,554,601	5.6%	$38,796,747
2006	$961,884,267	79.7%	13.8%	$43,239,910	4.5%	$38,813,451
2007	$981,829,751	85.3%	14.6%	$28,278,642	2.9%	$28,271,808
2008	$1,070,656,941	83.0%	13.6%	$22,192,047	2.1%	$22,192,047
2009	$1,148,299,233	82.6%	14.6%	$24,050,768	2.1%	$20,730,236
Totals	$12,143,252,770	82%	14.3%	$363,657,945	3.0%	$289,006,919
Source: Statutory filings with the Arkansas Insurance Department
Loss ratio — amounts incurred for covered hospital, medical and prescription drug expenses for our members, expressed as a percent of premiums. Administrative expense ratio — the costs of processing and paying member claims, providing customer service and other administrative costs, including premium taxes, expressed as a percent of premiums. Net income — what is left after payment for covered benefits, administrative expenses and taxes. Since Arkansas Blue Cross is a not-for-profit, mutual insurance company, this amount is held for the benefit of members, to be used to pay claims or expenses in years when revenues are not sufficient to cover them. Arkansas Blue Cross does not pay dividends to stockholders.