Our workers' compensation insurance policies provide statutorily prescribed coverage for injured employees of the policyholder for, among other things, temporary or permanent disability benefits, death benefits, and medical and hospital expenses. Approximately 55% of our workers' compensation premium is in California, 27% is in Florida and the balance is derived from 43 other states.

Our long-term strategy in the national workers' compensation industry is to attract customers requiring quality services based on adequate premium rates for the exposure. Our value proposition is that our services, over the long-run, provide employers the opportunity to reduce their long-term workers' compensation costs. Our loss prevention services focus on workplace safety, accident and illness prevention and safety awareness training. Claims management services include return-to-work programs, case management by nurses for serious injuries and management of medical provider services and billings. Investigation and legal services help to detect and prevent fraud and to pursue favorable resolution of disputed claims. Our premium auditors verify appropriate payroll classifications to assure equitable premium billing. We do not out-source our key workers' compensation services, and we have legal services provided by our in-house attorneys and supporting staff.

In addition, our investments department invests the funds made available by our capital and the cash flows from our workers' compensation business. The objective is to provide income and realized gains on investments, primarily from investments in fixed maturity securities with investment-grade ratings, and taking into consideration state regulatory restrictions. Investment income from the portfolio is impacted by current and historical interest rates and the amount of funds generated annually from (or used by) our workers' compensation business.