The Corporation's cash flow from operations was $1,589 million in 1995, compared with $1,086 million in 1994, and $885 million in 1993. In the Corporation's prior years' financial statements, GRFP's interrelated cash flows were disaggregated for financial reporting purposes into operating, investing, and financing activities. In 1995, all of GRFP's trading-related cash flows have been included in operating cash flow to improve the meaningfulness of the cash flow presentation. Prior years' cash flow statements have been reclassified to conform to the new presentation.
increase of 4.1 percent over the $.49 per share dividend paid in prior quarters during 1995 and the 20th consecutive year in which the Corporation has had a dividend increase.
In the mid 1980s, the Corporation also strengthened its reserves for reinsurance of medical malpractice liability insurance business written on the occurrence form. The crisis in medical malpractice insurance led the Corporation to eliminate occurrence coverage and solely reinsure on a claims made basis. Reinsurance of other classes of professional liability coverage is also generally written on a claims made basis. Patterns of reinsurance liability emergence for claims made coverages differ substantially from such patterns for occurrence coverages. Subsequent to the mid 1980's, reserve strengthening on environmental and latent injury claims and excess liability business for qualified self insurers, written on both an excess of specific loss and aggregate basis, has been partially offset by favorable development on reinsurance of liability business.
FUNDS HELD BY REINSURED COMPANIES: Funds held by reinsured companies represent ceded premium retained by the ceding company for a period according to contractual terms. The Corporation generally earns investment income on these balances during the period funds are held. Funds held assets specifically related to life/health benefits were $1,682 million and $1,482 million at December 31, 1995 and 1994, respectively.
GOODWILL: The Corporation amortizes on a straight-line basis goodwill recorded in connection with its business combinations. Included in "Other assets" was goodwill of $495 million and $509 million at December 31, 1995 and 1994, respectively, which was principally related to the Cologne Re joint venture. The Corporation's goodwill is amortized over the lesser of the expected life of the related operations acquired or 40 years. The amount of goodwill reported for the Cologne Re transaction will fluctuate based on changes in the value of the German mark (functional currency) to the United States dollar (reporting currency) during the period.
Tempest is negotiating an exchange of shares of Tempest for shares in ACE Limited, a Bermuda insurer. The transaction would be subject to approval by both companies' Boards of Directors and shareholders. If the transaction is consummated, the Corporation would sell back to Tempest its 20.7 percent interest in Tempest for cash consideration. In addition, the underwriting services provided to Tempest by the Corporation would be terminated. The financial effect of this transaction would be recorded in 1996.
The following table presents GRFP's derivatives portfolio by counterparty credit quality and maturity at December 31, 1995. The amounts shown on the left side of the table are gross of all netting arrangements and collateral held by GRFP. Net fair value shown on the table represents gross exposure net of amounts offset pursuant to rights of setoff and qualifying master netting arrangements with various counterparties. Net exposure shown on the table is net fair value less collateral held by GRFP.
In connection with certain purchases and sales of government securities, GRFP enters into collateralized repurchase and reverse repurchase agreements which may result in credit losses in the event the counterparty to the transaction is unable to fulfill its contractual obligations. Principally all of these transactions are collateralized by government securities. In addition to interest amounts shown in Note 8, GRFP had $90 million, $83 million and $53 million of interest expense in 1995, 1994 and 1993, respectively, on related