From WCRP Executive Director Vyrle Hill
o the Board of Directors of the Washington Counties
bers’ Equity) increased nearly $0.6 million to
more than $5.3 million at September 30, 2007.
$4.6 million remains “Restricted” to substan-
tially satisfy the WCRP Underwriting Policy
Section D provisions regarding actuarial
Confidence Factor. The policy was revised
by the Board of Directors in March 2007 to
increase over time the desired goal from 85
percent to 98 percent. The remaining $0.7
million Net Assets is invested in Capital
Assets (net of debt).
TRisk Pool and its Member Counties:
When the Pool’s Board of Directors first met August 18,
1988, the Directors agreed to offer the original member
counties occurrence-based, joint self-insured coverage
for third-party liabilities with $1 million limits beginning
October 1, 1988. Since then, the Pool’s membership has
grown from 13 to 28 counties, the liability coverage limits
have increased to $20 million, with another $5 million
available as an individual option, and a property insurance
line with $500 million in coverage has been added.
Claims Services: The Claims Division remained
busy handling member counties’ third-party liability
cases. The count of WCRP-to-date (cumulative)
events rose to 14,556, an increase of 913 from the
prior year. Another 533 claims for occurrences from
all Pool years through September 30, 2007, are
projected to be filed in independent actuarial esti-
mates. Only 447 event files remained classified as
“open” at year’s end, 169 lawsuits and 278 claims,
carrying with them $3.5 million in outstanding WCRP
reserves.
The Pool’s success over the years is the result of its
member knowledge and the professional staff’s expertise,
along with its holding to sound risk management princi-
ples. It is my pleasure to present this Annual Report of the
Washington Counties Risk Pool for Policy Year 2007.
Financial Position: The following constitute the most
significant highlights from the year ended September 30,
2007:
• Total Assets grew $5.2 million (23 percent) to
$27.7 million. More specifically, cash (and
investments) increased $6.6 million (36 percent)
while receivables declined $1.4 million (40
percent).
Washington Counties Property Program: Since
October 1, 2005, when the Washington Counties
Property Program was first offered as a WCRP joint-
purchase insurance product, participation in this
optional program has grown from the 17 counties
that were individually purchasing the similar Pool-
sponsored coverage to 25. (With the early 2008 addi-
tions, there are now 27 counties participating in this
still relatively new insurance coverage program.)
• An Operating Loss of $0.2 million was
experienced which represented a decrease
of 106 percent from the prior year’s $3.2 million
Operating Income. This was due largely to the
prior year’s recovery of reinsurance receivables,
and to increases in the independent actuary’s
estimates of claims reserves (4.5 percent, from
$8.4 to $8.8 million).
Financial Audit: The Washington State Auditor’s
Office conducted the annual audit of the Pool’s Year
2007 financial activities in early 2008. Copies of the
actual audit reports, once completed, will be published
by the State Auditor’s Office’s and available from its
• Interest Income rose 57 percent ($0.28 million)
due to the larger available surplus (funds not
needed for current operations) to invest and the
investment rates that remained high. Total Non-
Operating Revenues, however, decreased by
3 percent ($0.03 million) in large part from last
year’s sale of the former WCRP headquarters
property which netted nearly $0.31 million.
Compliance Audit: The Risk Management Division
of the Washington State Office of Financial Manage-
ment conducted its audit in April 2008 of the Pool’s
operations and the Pool’s compliance with the terms of
Chapter 48.62 RCW and WAC 82.60.
• Net Assets (sometimes referred to as Mem-
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