2020 IIABL Marketplace Report by Independent Insurance Agents & Brokers of Louisiana

INDEPENDENT INSURANCE AGENTS & BROKERS OF LOUISIANA

LOUISIANA MARKETPLACE REPORT 2020 UPDATE REPORT

Prepared by Ben Albright Vice President of Strategic Initiatives

Louisiana Marketplace Report

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INTRODUCTION & PURPOSE The Independent Insurance Agents & Brokers of Louisiana has engaged to provide you a summary of the propertycasualty (P&C) insurance marketplace. This report is an analysis of P&C data collected by A.M. Best and their Financial Suite which A.M. Best obtains on each insurer from the required filings with state regulators.

The data includes all Admitted Insurers and all Domestic, Excess and Surplus insurers. Note that this does NOT include Alien, Surplus Insurers. The data is limited to P&C lines, it does not contemplate Life & Health. The data is from 2020, so it will not show effects from the COVID-19 pandemic and Hurricanes Laura, Delta, and Zeta, but it will not show the effects of Hurricane Ida.

Louisiana Marketplace Report

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EXECUTIVE SUMMARY Enclosed is the 2020 edition of the annual marketplace report. The report analyzes data from AM Best, NAIC, and other industry sources to provide members with an overview of the state of the market, and it can be a valuable tool for educating insureds about the state of the marketplace when navigating the hard market. A few key points to take away from this report are as follows: Total written premium continues to grow in Louisiana, keeping pace with the national growth rate, and independent agents continue to maintain around 55% market share. Louisiana pays around 25% more per capita on insurance than the national average. The most striking graph can be found on page # regarding loss ratios. The massive property losses from Hurricane Laura, Delta, and Zeta jump off the page. Note that this is the pure loss ratios, not the combines ratio. Another interesting note on the loss ratio graph is Private Passenger Auto. 60% is a fairly healthy loss ratio, on a line that has run high on losses for many years in Louisiana. The premiums on private passenger auto also decreased for the first time in some year, though whether these changes are legitimate trends or a side effect of the COVID-19 pandemic remains to be seen.

Commercial auto, on the other hand, continued to "run a fever" with an 82% loss ratio. The homeowners market has a 5 year average combined ratio of 115% while fire & allied lines is around 155%. Adding in the damage from Hurricane Ida this year (not included in this report which is based on 2020 data), you can see the loss ratios driving consistent property increases across the state. Another interesting point is how the damage from hurricanes Laura, Delta, and Zeta was predominately from the wind, rather than floodwaters. This is one of the reasons that claims experience was so different than in Katrina & Rita. Those storms dumped huge amounts of rain, plus the levee breaches in New Orleans and other areas which led to significant flood damages, involving NFIP. In the case of last years storms, the graphs on page # and # show that claims were largely limited to Homeowners/property carriers. I highly encourage you to review the report in its entirety. There is a lot of good data to help you better understand the landscape of the marketplace, and sections of the report that are an excellent way to discuss the industry with your clients. Context around what is happening across the industry can be an invaluable tool in understanding why the market is hardening, as we are seeing every day.

Louisiana Marketplace Report

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LOUISIANA DIRECT WRITTEN PREMIUMS 2019 Louisiana Direct Written Premium Total premium continues to grow in Louisiana, keeping pace with the national growth rate. Independent agent market share remains fairly steady at around 55%. Louisiana continues to pay about 25% more, per capita, on insurance than the national average.

Source: © A.M. Best Company — Used by Permission; US Census Bureau

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LOUISIANA ALL L.O.B.S: PREMIUM & DISTRIBUTION

(Alphabetical)

(3) MGA/ (1) All

Major L.O.B.

(2) Pure IA or Wholesale (4) IA-Mixed (5) Exclusive-

Distribution Broker DPW

(6) Direct

(7)

(2+3+4)/(1)

DPW

Captive DPW

DPW

Other

IA Penetration

Aggregate Write-ins

$18

$10

40%

Aircraft (all perils)

$48

$46

99%

$858

$620

$39

$19

$70

$92

$17

79%

$4,748

$939

$227

$38

$2,229

$1,315

25%

$36

$20

$13

94%

81%

$563

$379

$70

$21

$74

$10

83%

Credit

$33

$24

78%

Excess Workers' Comp

$51

$50

100%

Farmowners Multi-Peril

$15

39%

Fidelity

$12

$10

84%

Financial Guaranty

Fire & Allied Lines

$1,275

$704

$214

$179

$80

$97

86%

Homeowners Multi-Peril

$2,028

$547

$404

$11

$757

$308

47%

Inland Marine

$444

$305

$19

$14

$79

$26

76%

Medical Malpractice

$103

$35

$53

92%

Mortgage Guaranty

$66

$13

$40

$13

19%

Ocean Marine

$153

$93

$53

96%

Other Liability (Claims-made)

$236

$201

$18

94%

Other Liability (Occurrence)

$835

$609

$116

$10

$50

$40

$10

88%

$47

$38

96%

$112

$93

90%

63%

$776

$685

$53

$30

$12

$24

95%

$12,480

$5,408

$1,240

$392

$3,378

$2,000

$62

56%

All Commercial Auto All Private Passenger Auto Boiler & Machinery Burglary & Theft Commercial Multi-Peril

Products Liability Surety Warranty Workers' Compensation TTL Grps I+II (All Typical Lines)

Source: © A.M. Best Company — used by permission. Notes or Comments: Independent agents continue to dominate the commercial lines segments, while captive and direct writers enjoy a much larger market share on personal auto, homeowners, and other personal lines coverages. The “Lines of Business” (L.O.B.) listed above are taken from an annual statement page each insurer must file with their state regulator. The classification of insurers using independent agents (IAs), brokers, MGAs, etc. are based on what is reported by the insurers.

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LOUISIANA LOSS RATIOS: 2020 AND 5-YEAR AVERAGE 110%

Aircraft (all perils)

67% 82%

All Commercial Auto

87% 60%

All Private Passenger Auto

69% 45%

Boiler & Machinery

67% 55%

Burglary & Theft

29% 236%

Commercial Multi-Peril

87% 11%

Excess Workers' Comp

55% 250%

Farmowners Multi-Peril

87% 7%

Fidelity

56% 260%

Fire & Allied Lines

121% 250%

Homeowners Multi-Peril

82% 80%

Inland Marine

57% 6%

Medical Malpractice

13% 39%

Mortgage Guaranty

21% 83%

Ocean Marine

1-Yr Loss Ratio (all distribution)

67% 51% 47%

Other Liability (Claims-made)

5-Yr Loss Ratio (all distribution)

60%

Other Liability (Occurrence)

60% 6%

Products Liability

35% 16%

Surety

23% 58%

Workers' Compensation

56% 121%

TTL Grps I+II (All Typical Lines)

75%

100%

200%

300%

Source: © A.M. Best Company — used by permission. Notes or Comments:

Calendar Year Loss Ratio =

Paid Losses + New Reserves + Changes in Prior Year Reserves Earned Premiums - Policy Dividends

The massive effect on property lines from the 3 hurricanes in 2020 immediately jumps off the page in this graph, with Homeowners, Fire & Allied Lines (which includes flood as well as wind policies), Commercial Multi-Peril and Farm all showing around 250% loss ratio. Another interesting note is that Private Passenger Auto has a fairly healthy average loss ratio at 60%. Commercial auto, on the other hand, continues to “run a fever” with an 82% loss ratio signaling significant losses for many carriers. It’s important to note that this chart shows the pure loss ratio, NOT the combined ratio. This does not include agent commissions, staff salaries, advertising, the cost of reinsurance or any of the other overhead expenses of the company. Consequently, a good rule of thumb is that companies aim to have their loss ratios at or below around 60% on average.

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LOUISIANA PREMIUM GROWTH RATES: 1-YEAR & 5-YEAR AVERAGE 17%

Aircraft (all perils)

10% 4%

All Commercial Auto

7% -3%

All Private Passenger Auto

4% -10%

Boiler & Machinery

4% -9%

Burglary & Theft

11% 10%

Commercial Multi-Peril Excess Workers' Comp

3% -12% 1% -7%

Farmowners Multi-Peril Fidelity

2% -10% -2% 7%

Fire & Allied Lines

Homeowners Multi-Peril

5% -3%

Inland Marine

2% 2% 2%

Medical Malpractice

Ocean Marine

-1% 6%

Other Liability (Claims-made)

4% 9%

Other Liability (Occurrence)

6% -1%

Products Liability

5% -6%

Surety

-6%

Workers' Compensation

-1% 1%

TTL Grps I+II (All Typical Lines) -15%

-10%

-5%

10%

15%

1-Yr Growth Rate 5-Yr Growth Rate

Source: © A.M. Best Company — used by permission. Notes or Comments: The bad news is that all of the major property lines had significant premium increases, driven, as we all know, by rate increases over the year more than any organic growth. Given the losses seen on the previous trend, it’s safe to assume that this trend will continue for the foreseeable future in Louisiana. On the other hand, auto is looking marginally improved for policyholders. Commercial auto still took rate this year, but at a much lower amount than over the last few years. Personal Passenger auto’s total premium actually decreased in Louisiana for the first time in quite a while. One caveat to this point is the rate reductions, dividends and other changes brought about by the Covid-19 pandemic. Many carriers (especially some of the direct and captive carriers with massive market share) took drastic steps to reduce premiums and even issue refunds of the course of the pandemic in 2020, which may cloud the actual results for this year. One final thing to note is the “Other Liability” policies. Often skimmed over in these reports, those policies saw significant premium increases over the year. This is a reflection of the increasingly hard market for Cyber, D&O and other specialty liability products.

20%

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RANKING THE L.O.B.S 2020 - Louisiana Ind. Agent Premium (Total = $6,753,673,000) Other Liability (Claims-made) 3%

All Other LOBs 8%

Inland Marine 5%

All Private Passenger Auto 19%

Commercial MultiPeril 6% Fire & Allied Lines 15%

All Commercial Auto 10%

Workers' Compensation 10% Other Liability (Occurrence) 11%

Homeowners Multi-Peril 13%

2020 - Louisiana Total Premium (Total = $12,506,469,000) Other Liability (Claims-made) 2% Inland Marine 4%

All Other LOBs 6%

Commercial Multi-Peril 4% All Private Passenger Auto 38%

All Commercial Auto 7% Workers' Compensation 6% Other Liability (Occurrence) 7%

Homeowners Multi-Peril 16%

Fire & Allied Lines 10%

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RANKING THE L.O.B.S

2020 - United States Ind. Agent Prem. (Total = $405,820,408,805) All Other LOBs 9%

All Private Passenger Auto 20%

Inland Marine 4%

Other Liability (ClaimsMade) 7% Commercial Multi-Peril 9%

Homeowners Multi-Peril 11%

All Commercial Auto 9% Fire & Allied Lines 10%

Other Liability (Occurrence) 11% Workers' Compensation 10%

2020 - United States Total Premium (Total = $710,057,151,000) Inland Marine 4%

All Other LOBs 7%

Other Liability (Claims-Made) 4% Commercial Multi-Peril 6%

All Private Passenger Auto 35%

All Commercial Auto 6% Fire & Allied Lines 7% Workers' Compensation 7% Other Liability (Occurrence) 8%

Homeowners Multi-Peril 16%

Source: © A.M. Best Company — used by permission. Notes or Comments: Comparing these pie charts show a few notable trends: Clearly demonstrates the difference in book composition between independent agents and other distribution channels, with independent agents having a much greater share of commercial business, and a small share of the personal lines market. Louisiana’s book composition (both for independent agents and the total average) are skewed more heavily towards property lines (Homeowners, fire and allied lines, commercial multiperil) than the national averages. Compared to last year, all 4 graphs showed slight growth in property lines and a slight decrease in personal auto premiums. This reflects the continued growth in property premiums, but it also might be at least partially an effect of COVID on rates rather than a legitimate trend.

Louisiana Marketplace Report

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LOUISIANA PENETRATION: TOP L.O.B.S 100%

91% 85%

2015 2016

77%

91% 81% 72%

75%

76%

2017 2018

50%

41% 27%

25%

Al lie H om d Li eo ne w s ne r sM O th ul er tiLi Pe ab ril ili ty (O cc W ur re or nc ke e) rs 'C om pe ns at Al io lC n om m er ci Co al Au m m to er ci al M ul tiPe ril In O la th nd er M Li ar ab in ili e ty (C la im sm ad e)

& Fi re

Pa ss en ge r

Au to

Al lP riv at e

2019

Source: © A.M. Best Company — used by permission.

Notes or Comments: This chart is a good representation of the strength and importance of the independent agent distribution system. Commercial lines continues to be dominated by agent distribution, as business owners find value in an agent’s expertise when protecting their business. The chart also shows modest but steady gains on the personal lines side, with independent agents gaining market share in both homeowners AND private passenger auto. Industry prognosticators continue to discuss the technology based “disruptors” which are bringing direct to consumer products to the marketplace. Thus far, there has been relatively little impact on the independent agent channel, as they are primarily competing against captive writers like Geico, State Farm, etc. This graph will be an interesting one to keep an eye on in future years to see if/when these new market entrants begin to affect our distribution model.

Louisiana Marketplace Report

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LOUISIANA SURPLUS LINES Surplus Lines 12.7%

2019 Louisiana All P-C Premium: Admitted vs. Surplus Lines (Domestic and Alien Insurers)

Admitted 87.3%

2020 Louisiana Top Surplus Lines of Business (Domestic Insurers) Other Liab (Claims-made) 6%

Homeowners Multi Peril 7%

Fire & Allied Lines 27%

Commercial Multiple Peril (Total) 12%

All Commercial Auto 15%

Other Liab (Occurrence) 26%

Louisiana Marketplace Report

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Surplus Lines 8.2%

2019 U.S. All P-C Premium: Admitted vs. Surplus Lines (Domestic and Alien Insurers)

Admitted 91.8%

2020 U.S. Top Surplus Lines of Business (Domestic Insurers) Medical Professional Liability 5%

All Other 2%

Fire & Allied Lines 23%

Other Liab (Claims-made) 18%

Homeowners Mult Peril 3% Commercial Multiple Peril (Total) 7%

Other Liab (Occurrence) 30%

Source: © A.M. Best Company — used by permission and National Association of Insurance Commissions Surplus Lines Industry Summary Notes or Comments: Note that the data used to create these graphs does NOT include Alien surplus lines premiums. Any carrier not based in the US (i.e. Lloyds) will not be included in this graph, so the numbers for surplus are likely much higher than these graphs indicate. Unfortunately data on alien surplus carriers are not readily available, as they are not required to make the same regulatory filings as admitted and domestic surplus carriers. Louisiana writes approximately 50% more premium in domestic surplus lines than the national average. This is unsurprising, given the higher wind exposure limiting the appetite for admitted carriers, especially in South Louisiana. The graphs comparing admitted to surplus premiums are based on 2019 data because it is sourced from an NAIC report which isn’t published until late in the year and is not yet available for 2020.

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Dividends and Lines of Business $103,476,000

All private Passenger Auto Workers' Compensation

$98,880,000

Homeowners Multi-Peril

$7,114,000

Medical Malpractice

$1,399,000

Fire & Allied Lines

$1,131,000

All Commercial Auto

$764,000

Other Liability (Occurrence)

$531,000

Inland Marine $197,000 Commercial Multi-Peril $170,000 Other Liability (Claims-made) $28,000 $0

$25,000,000

$50,000,000

$75,000,000

$100,000,000

$125,000,000

2020 Louisiana Top Ten Lines of Business Paying Policy Dividends Line of Business All Private Passenger Auto Workers' Compensation Homeowners Multi-Peril Medical Malpractice Fire & Allied Lines All Commercial Auto Other Liability (Occurrence) Inland Marine Commercial Multi-Peril Other Liability (Claims-made)

2020 Louisiana All Private Passenger

Insurer Name State Farm Mutual Automobile Ins Co United Services Automobile Association USAA Casualty Insurance Company USAA General Indemnity Company Garrison Property and Casualty Ins Co Amica Mutual Insurance Company

Insurers Paying Some Dividends Average Dividend Rate 5.6% 6.5% 20.2% 23.7% 1.6% 13.0% 6.5% 2.8% 2.0% 6.4% 3.5% 1.0% 2.7% 3.2% 1.0% 11.8% 3.3% 0.3% 0.8% 13.7%

Auto Top Dividend Paying Insurers

Dividends Paid $103,476,000 $98,880,000 $7,114,000 $1,399,000 $1,131,000 $764,000 $531,000 $197,000 $170,000 $28,000

DPW-#1 LOB Shown Above $1,307,377,000 $86,731,000 $77,918,000 $83,386,000 $40,778,000 $4,806,000

Source: © A.M. Best Company — used by permission

Insurer Div. Rate 5.2% 20.5% 10.8% 6.9% 6.7% 14.9%

Insurer Group ("..." is No Group) State Farm Group USAA Group USAA Group USAA Group USAA Group Amica Mutual Group

Notes or Comments: The fact that workers comp is high on this list is likely unsurprising to agents, as many workers comp companies provide dividends, and LWCC specifically providing large ones. What may be surprising is the massive private passenger auto dividends. This has not been the case, historically. It is one of the outliers caused by the COVID-19 pandemic. Several carriers (primarily captive and direct carriers such as State Farm, GEICO, and USAA but also some carriers that independent agents access) refunded significant premiums because of the decreased exposure when no one was driving during the worst of the COVID lockdowns. We do not expect this to be a long-term trend, but it’s something that agents should be aware of when selling against those carriers.

Louisiana Marketplace Report

LINE OF BUSINESS REPORTS For each line of business learn more about: Premium Loss Ratio The top company players and more...

Louisiana Marketplace Report

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All Private Passenger Auto 2020 Written Premium $5,000

$4,823

$4,887

2020 Loss Ratio 100%

$4,748

$4,506

93%

$4,136

$4,000

75%

70%

65%

$3,000

62%

60%

50%

$2,000 $1,000 $932

$1,029

$1,174

$1,261

$1,305

25%

Direct Written Premium - Independent Agency

20 20

20 19

20 18

20 17

20 16

$0 2016 2017 2018 2019 2020

Direct Written Premium - All Distriibution Types

2020 - Louisiana - All Private Passenger Auto Average Penetration: 24.6%

All Distribution Trend (DPW) IA Trend 3.5% 8.8%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 40 Top 5 Groups or Unaffil. [Mkt Share %] State Farm Group (G) [28.6%] Progressive Insurance Group (G) [18.0%] Allstate Insurance Group (G) [13.0] Berkshire Hathaway Ins Grp (G) [11.9%] USAA Group (G) [6.1%] L.O.B. Total or Industry Ave.

Progressive Security Insurance Company Imperial Fire and Casualty Insurance Co Safeco Insurance Company of Oregon Safeway Insurance Company of Louisiana Financial Indemnity Company Harford Accident and Indemnity Company Allmerica Financial Benefit Insurance Co Essentia Insurance Company Privilege Underwriters Reciprocal Exch Foremost Insurance Co Grand Rapids, MI

5 yr. Loss Adj. Ratio 69%

Affil+Unaffil: 108

Direct Premium-This LOB $1,356,379,000 $856,799,000 $615,135,000 $566,395,000 $288,813,000 $4,748,431,000

5 yr. Combined Ratio 99%

S.L. Insurers: 2

2020 Adj. Loss Ratio 61% 55% 55% 68% 64% 60%

2020 Commission N/A N/A N/A N/A N/A 7.7%

Top 10 Independent Agent Insurers $562,83,000 $113,389,000 $73,270,000 $60,482,000 $36,963,000 $16,903,000 $15,720,000 $6,750,000 $6,210,000 $5,830,000

D. Surplus Lines / ALL DPW 0.93%

RRGs: 0

55.2% 57.2% 46.2% 58.3% 59.2% 56.7% 57.0% 56.1% 61.5% 58.7%

10.8% 8.0% 12.8% 11.8% 11.5% 0.0% 14.2% 42.0% 15.3% 12.0%

Progressive Insurance Group Allstate Insurance Group Liberty Mutual Ins Group Safeway Insurance Group Kemper PC Companies Harford Insurance Group Hanover Ins Grp P&C Cos Markel Corporation Group Tokio Marine US PC Group Farmers Insurance Group

0.0% 13.6% 21.0%

... Old American Capital Group Global Indemnity Group

Top 3 MGA/Wholesale Insurers GoAuto Insurance Company Old American Indemnity Company American Reliable Insurance Company

$166,991,000 $53,211,000 $5,135,000

65.6% 55.1% 516.8%

Top 3 Captive-Exclusive and Direct Insurers State Farm Mutual Automobile Ins Co GEICO Casualty Company Allstate Property and Casualty Ins. Co.

$1,307,377,000 $469,451,000 $360,249,000

9.6% 1.8% 11.8%

State Farm Group Berkshire Hathaway Ins. Grp. Allstate Insurance Group

54.9% 445.8% #N/A

12.3% 22.5% #N/A

American National P&C Grp Global Indemnity Grp. #N/A

#N/A

61.2% 70.7% 56.3%

Top 3 Surplus Lines Insurers ANPAC Louisiana Insurance Company United National Insurance Company None in L.O.B.

$43,623,000 $751,000 #N/A

Top RRG

None in L.O.B.

#N/A

Group Name or ALL L.O.B. DPW $2,016,253,000 $1,076,643,000 $947,910,000 $695,925,000 $448,825,000 $12,479,782,000

Source: © A.M. Best Company — used by permission.

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All Commercial Auto 2020 Written Premium

2020 Loss Ratio

1,000

100%

$828

750

$694

$654

$547

$521

89% 82%

$749

$661

500

94% 89%

$858

84%

75%

$694

$598

50%

250

25%

20 20

20 19

20 18

Direct Written Premium - All Distriibution Types

20 17

20 20

0% 20 16

Direct Written Premium - Independent Agency

20 19

20 18

20 17

20 16

2020 - Louisiana - All Commercial Auto Average Penetration: 79.8%

All Distribution Trend (DPW) IA Trend 7.0% 7.4%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 84

5 yr. Loss Adj. Ratio 87%

Affil+Unaffil: 282

5 yr. Combined Ratio 132%

S.L. Insurers: 51

D. Surplus Lines / ALL DPW 21.81%

RRGs: 12

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio 2020 Commission Group Name or ALL L.O.B. DPW Progressive Insurance Group (G) [12.3%] $105,720,000 77% N/A $1,076,643,000 Travelers Group (G) [8.6%] $73,775,000 85% N/A $306,651,000 Skyward Specialty Ins Grp (G) [8.4%] $72,447,000 65% N/A $88,242,000 Berkshire Hathaway Ins Grp (G) [5.5%] $47,412,000 80% N/A $695,925,000 Zurich Insurance US PC Group (G) [5.3%] $45,631,000 84% N/A $237,319,000 L.O.B. Total or Industry Ave. $858,249,000 82% 13.7% $12,479,782,000

Top 10 Independent Agent Insurers Houston Specialty Insurance Company $62,461,000 66.8% 22.0% Skyward Specialty Insurance Group Zurich American Insurance Company $38,972,000 Zurich Insurance US PC Group 62.9% 3.7% Blue Hill Specialty Insurance Company $37,137,000 Progressive Insurance Group 52.8% 9.3% Clear Blue Specialty Insurance Company $27,314,000 Clear Blue Insurance Group 51.8% 20.8% AmGUARD Insurance Company $22,997,000 Berkshire Hathaway Ins Grp 83.7% 19.8% National Union Fire Ins Co Pittsburgh PA $21,393,000 American International Group 90.5% 11.8% Travelers Property Casualty Co of Amer $16,354,000 Travelers Group 83.2% 10.3% Clear Blue Insurance Company $14,558,000 Clear Blue Insurance Group 44.6% 17.6% Starr Indemnity & Liability Company $13,852,000 Starr International Group 103.3% 6.8% Travelers Indemnity Company $13,097,000 Travelers Group 95.5% 16.7%

Top 3 MGA/Wholesale Insurers

Imperium Insurance Company Prime Insurance Company National Interstate Insurance Company

$9,986,000 $7,153,000 $6,180,000

48.6% 45.7% 99.8%

$53,360,000 $22,980,000 $19,496,000

60.2% 58.8% 124.7%

$62,461,000 $37,137,000 $27,314,000

66.8% 52.8% 51.8%

$5,924,000

9.9%

15.5% Skyward Specialty Insurance Group Prime Insurance Group 21.2% Great American P & C Ins Grp 10.1%

Top 3 Captive-Exclusive and Direct Insurers Progressive Paloverde Insurance Company State Farm Mutual Automobile Ins Co Allstate Insurance Company

Top 3 Surplus Lines Insurers Houston Specialty Insurance Company Blue Hill Specialty Insurance Company Clear Blue Specialty Insurance Company

Nuovo Indemnity RRG, Inc.

Top RRG

Source: © A.M. Best Company — used by permission.

9.5% 12.8% 13.5%

Progressive Insurance Group State Farm Group Allstate Insurance Group

22.0% Skyward Specialty Insurance Group Progressive Insurance Group 9.3% Clear Blue Insurance Group 20.8%

0.0%

...

Louisiana Marketplace Report

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Homeowners Multi-Peril 2020 Written Premium

2020 Loss Ratio

$2,500

250%

$2,000

$1,856

$1,862

$1,907

$1,961

$2,060

200%

$1,500

150%

$1,000 $500

$645

$678

$775

$724

100%

$852

50%

38%

Direct Written Premium - Independent Agency

20 20

20 19

20 18

20 17

20 16

33%

35%

44%

2016 2017 2018 2019 2020

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Fire & Allied Lines Average Penetration: 38.0%

All Distribution Trend (DPW) IA Trend 2.6% 7.2%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 54

5 yr. Loss Adj. Ratio 83%

Affil+Unaffil: 127

5 yr. Combined Ratio 115%

S.L. Insurers: 21

D. Surplus Lines / ALL DPW 6.93%

RRGs: 0

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio 2020 Commission State Farm Group (G) [25.2%] $518,572,000 234% N/A Allstate Insurance Group (G) [11.0%] $225,826,000 300% N/A USAA Group (G) [6.2%] $126,796,000 249% N/A Liberty Mutual Ins Cos (G) [5.5%] $114,281,000 217% N/A Louisiana Farm Bureau Mutual Ins Co [4.5%] $93,287,000 207% N/A L.O.B. Total or Industry Ave. $2,060,408,000 251% 13.4%

Progressive Property Insurance Company Allstate Vehicle and Property Ins Co Safeco Insurance Company of Oregon GeoVera Specialty Insurance Company Foremost Insurance Co Grand Rapids, MI American Bankers Insurance Co of Florida Privilege Underwriters Reciprocal Exch Lighthouse Property Insurance Corp AIG Property Casualty Company Bankers Specialty Insurance Company

Top 10 Independent Agent Insurers $80,282,000 $46,883,000 $39,909,000 $33,675,000 $32,797,000 $28,611,000 $24,090,000 $20,294,000 $17,761,000 $17,759,000

202.6% 464.6% 221.2% 543.8% 238.2% 299.1% 54.2% 202.3% 389.7% 294.0%

14.9% 10.6% 12.9% 17.4% 13.8% 25.1% 15.4% 20.9% 16.8% 18.5%

Progressive Insurance Group Allstate Insurance Group Liberty Mutual Ins Cos GeoVera U.S. Insurance Group Farmers Insurance Group Assurant P&C Group Tokio Marine US PC Group Lighthouse Insurance Group American International Group Bankers Financial Group

$70,136,000 $56,348,000 $46,807,000

218.6% 287.9% 315.2%

15.3% 33.6% 16.5%

United Insurance Group Lighthouse Insurance Group FedNat Insurance Group

$487,413,000 $93,287,000 $87,067,000

238.8% 207.0% 186.7%

12.0% 8.4% 11.6%

State Farm Group ... Allstate Insurance Group

$33,675,000 $23,420,000 $17,759,000

543.8% 146.9% 294.0%

GeoVera U.S. Insurance Group 17.4% 11.0%American National Prop & Cas Group Bankers Financial Group 18.5%

#N/A

Top 3 MGA/Wholesale Insurers United Property & Casualty Ins Co Lighthouse Excalibur Insurance Company FedNat Insurance Company

Top 3 Captive-Exclusive and Direct Insurers State Farm Fire and Casualty Company Louisiana Farm Bureau Mutual Ins Co Allstate Insurance Company

Top 3 Surplus Lines Insurers GeoVera Specialty Insurance Company ANPAC Louisiana Insurance Company Bankers Specialty Insurance Company

None in L.O.B.

Group Name or ALL L.O.B. DPW $2,016,253,000 $947,910,000 $448,825,000 $488,466,000 $140,875,000 $12,479,782,000

Top RRG

Source: © A.M. Best Company — used by permission.

#N/A

Louisiana Marketplace Report

Page 18

Fire & Allied Lines 2020 Written Premium $1,500

2020 Loss Ratio 300%

$1,120 $1,281 $1,118

231%

$1,104

$1,000 $867

260%

$1,196

$853

$918

$846

200%

$986

$500

100%

Direct Written Premium - Independent Agency

20 20

20 19

20 18

20 17

20 16

48% 30%

27%

2016 2017 2018 2019 2020

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Fire & Allied Lines Average Penetration: 24.6%

All Distribution Trend (DPW) IA Trend 3.5% 3.3%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 98 Top 5 Groups or Unaffil. [Mkt Share %] Wright National Flood Ins Co. [7.1%] Sompo Holdings US Group (G) [5.3%] Allstate Insurance Group (G) [5.0%] FM Global Group (G) [4.7%] Assurant P&C Group (G) [4.5%] L.O.B. Total or Industry Ave.

Starr Surplus Lines Insurance Company Foremost Insurance Co Grand Rapids, MI American Bankers Insurance Co of Florida Zurich American Insurance Company GeoVera Specialty Insurance Company Imperial Fire and Casualty Insurance Co Lexington Insurance Company Westchester Surplus Lines Insurance Co QBE Specialty Insurance Company Scottsdale Insurance Company

5 yr. Loss Adj. Ratio 122%

Affil+Unaffil: 293

Direct Premium-This LOB $91,432,000 $67,413,000 $63,489,000 $59,597,000 $57,365,000 $1,280,550,000

5 yr. Combined Ratio 155%

S.L. Insurers: 78

2020 Adj. Loss Ratio 35% 175% 75% 110% 98% 261%

2020 Commission N/A N/A N/A N/A N/A 13.6%

Top 10 Independent Agent Insurers $34,433,000 $30,345,000 $30,323,000 $29,272,000 $25,503,000 $24,648,000 $22,802,000 $21,621,000 $20,629,000 $20,035,000

D. Surplus Lines / ALL DPW 27.99%

RRGs: 0

410.7% 147.1% 42.7% 1616.0% 96.9% 82.9% 661.9% 229.0% 577.5% 357.5%

Starr International Group 18.2% Farmers Insurance Group 13.6% Assurant P&C Group 20.0% Zurich Insurance US PC Group 6.4% GeoVera U.S. Insurance Group 16.5% Allstate Insurance Group 24.0% American International Group 21.6% Chubb INA Group 14.8% 27.6%QBE North America Insurance Group Nationwide Group 22.2%.

Top 3 MGA/Wholesale Insurers Wright National Flood Insurance Company Southern Fidelity Insurance Company Access Home Insurance Company

20.3% 12.0% 13.1%

... ... Cypress Holdings Group

69.1% 162.2% 443.5%

15.2% 2.4% 1.9%

Allstate Insurance Group Assurant P&C Group Swiss Reinsurance Group

$34,433,000 $25,503,000 $22,802,000

410.7% 96.9% 661.9%

18.2% 16.5% 21.6%

Starr International Group GeoVera U.S. Insurance Group American International Group

#N/A

$91,432,000 $29,466,000 $15,671,000

35.3% 351.8% 207.9%

Top 3 Captive-Exclusive and Direct Insurers Allstate Insurance Company American Security Insurance Company Westport Insurance Corporation

$36,339,000 $27,047,000 $19,681,000

Top 3 Surplus Lines Insurers Starr Surplus Lines Insurance Company GeoVera Specialty Insurance Company Lexington Insurance Company

Top RRG

None in L.O.B.

Group Name or ALL L.O.B. DPW $91,432,000 $102,127,000 $947,910,000 $82,285,000 $105,802,000 $12,479,782,000

Source: © A.M. Best Company — used by permission.

Louisiana Marketplace Report

Commercial Multi-Peril 2020 Written Premium $600

2020 Loss Ratio 250%

$563 $508

$495

$512

$496

236%

200%

$400

$405 $362

$342

150%

$359

$342

$200

100% 68%

50%

47%

41%

20 20

20 19

20 18

Direct Written Premium - All Distriibution Types

20 17

20 20

0% 20 16

Direct Written Premium - Independent Agency

20 19

20 18

20 17

20 16

28%

2020 - Louisiana - Commercial Multi-Peril Average Penetration: 70.3%

All Distribution Trend (DPW) IA Trend 2.6% 2.9%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 75 Top 5 Groups or Unaffil. [Mkt Share %] State Farm Group (G) [10.6%] American International Group (G) [6.7%] Chubb INA Group (G) [6.6%] Liberty Mutual Ins Cos (G) [6.4%] Markel Corporation Group (G) [6.0%] L.O.B. Total or Industry Ave.

Scottsdale Insurance Company ACE American Insurance Company National Union Fire Ins Co Pittsburgh PA Ohio Security Insurance Company AmGUARD Insurance Company Steadfast Insurance Company GuideOne Insurance Company GuideOne Specialty Insurance Company Interstate Fire & Casualty Company Bankers Insurance Company

5 yr. Loss Adj. Ratio 88%

Affil+Unaffil: 239

5 yr. Combined Ratio 128%

S.L. Insurers: 64

Direct Premium-This LOB 2020 Adj. Loss Ratio $59,772,000 294% $37,991,000 128% $37,086,000 167% $36,096,000 139% $33,902,000 308% $563,314,000 236%

2020 Commission Group Name or ALL L.O.B. DPW N/A $2,016,253,000 N/A $243,170,000 N/A $277,965,000 N/A $488,466,000 N/A $104,151,000 16.6% $12,479,782,000

Top 10 Independent Agent Insurers $30,188,000 $27,853,000 $27,170,000 $19,359,000 $15,623,000 $13,058,000 $11,483,000 $9,819,000 $9,806,000 $8,590,000

310.4% 145.2% 78.0% 149.4% 132.8% 675.4% 266.5% 259.5% -31.7% 112.2%

Nationwide Group 21.6% Chubb INA Group 15.1% American International Group 9.0% Liberty Mutual Ins Cos 15.0% Berkshire Hathaway Ins Grp 19.7% Zurich Insurance US PC Group 28.0% GuideOne Insurance Companies 15.5% GuideOne Insurance Companies 15.6% 26.6% Allianz US PC Insurance Companies Bankers Financial Group 19.7%

$15,600,000 $13,280,000 $5,495,000

120.4% 360.2% 310.6%

13.9% 21.4% 27.4%

Markel Corporation Group Markel Corporation Group Tokio Marine US PC Group

$59,772,000 $3,951,000 $2,487,000

294.0% 364.7% -70.3%

12.3% 10.0% 0.8%

State Farm Group Allstate Insurance Group Liberty Mutual Ins Cos

$30,188,000 $15,600,000 $13,280,000

310.4% 120.4% 360.2%

21.6% 13.9% 21.4%

Nationwide Group Markel Corporation Group Markel Corporation Group

#N/A

Top 3 MGA/Wholesale Insurers United Specialty Insurance Company Independent Specialty Insurance Company Safety Specialty Insurance Company

D. Surplus Lines / ALL DPW 26.13%

RRGs: 0

Top 3 Captive-Exclusive and Direct Insurers State Farm Fire and Casualty Company Allstate Insurance Company Liberty Mutual Insurance Company

Top 3 Surplus Lines Insurers Scottsdale Insurance Company United Specialty Insurance Company Independent Specialty Insurance Company

None in L.O.B.

Top RRG

Source: © A.M. Best Company — used by permission.

Louisiana Marketplace Report

Page 20

Workers' Compensation 2020 Written Premium

2020 Loss Ratio

$1,000

75%

$814

$735

$798

$821

$829

$719

$737

$745

67%

$777

$750

55%

50%

$703

58% 51%

51%

$500 $250

25%

Direct Written Premium - Independent Agency

20 20

20 19

20 18

20 17

20 16

$0 2016 2017 2018 2019 2020

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Workers' Compensation Average Penetration: 90.1%

All Distribution Trend (DPW) IA Trend -1.2% -1.1%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 73

5 yr. Loss Adj. Ratio 56%

Affil+Unaffil: 243

5 yr. Combined Ratio 101%

S.L. Insurers: 0

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio Louisiana Workers’ Comp Corp [26.5%] $206,163,000 74% LUBA Insurance Group (G) [8.2%] $63,489,000 43% Zurich Insurance US PC Group (G) [6.2%] $47,840,000 8% Travelers Group (G) [5.5%] $42,678,000 103% Great American P & C Ins Grp (G) [4.8%] $36,912,000 32% L.O.B. Total or Industry Ave. $776,655,000 58%

Louisiana Workers’ Comp Corp LUBA Casualty Insurance Company Zurich American Insurance Company Bridgefield Casualty Insurance Company ACE American Insurance Company Starr Indemnity & Liability Company Retailers Casualty Insurance Company New Hampshire Insurance Company Indemnity Insurance Co of North America American Zurich Insurance Company

D. Surplus Lines / ALL DPW 0.00%

RRGs: 0

2020 Commission Group Name or ALL L.O.B. DPW N/A $206,163,000 N/A $63,489,000 N/A $237,319,000 N/A $306,651,000 N/A $91,053,000 8.8% $12,479,782,000

Top 10 Independent Agent Insurers $206,163,000 $55,719,000 $30,208,000 $22,771,000 $15,591,000 $15,318,000 $14,057,000 $13,593,000 $11,878,000 $10,889,000

73.9% 39.9% 4.6% 35.5% 23.1% 52.1% 16.9% 165.3% -5.6% 3.1%

10.6% 12.6% 2.7% 10.6% 1.3% 3.6% 14.5% 1.3% 0.0% 2.0%

... LUBA Insurance Group Zurich Insurance US PC Group Great American P & C Ins Grp Chubb INA Group Starr International Group ... American International Group Chubb INA Group Zurich Insurance US PC Group

$19,865,000 $7,945,000 $7,770,000

30.3% 34.6% 66.2%

12.7% 10.9% 13.6%

Stonetrust Insurance Group ... LUBA Insurance Group

$6,089,000 $5,937,000 $4,052,000

107.9% -23.3% -12.4%

3.1% 8.3% 8.0%

Liberty Mutual Ins Cos State Farm Group Liberty Mutual Ins Cos

None in L.O.B. None in L.O.B. None in L.O.B.

#N/A #N/A #N/A

None in L.O.B.

#N/A

Top 3 MGA/Wholesale Insurers Stonetrust Commercial Insurance Company LCTA Casualty Insurance Company LUBA Indemnity Insurance Company

Top 3 Captive-Exclusive and Direct Insurers Liberty Insurance Corporation State Farm Fire and Casualty Company Liberty Mutual Fire Insurance Company

Top 3 Surplus Lines Insurers

Top RRG

Source: © A.M. Best Company — used by permission.

Louisiana Marketplace Report

Page 21

Other Liability (Occurrence) 2020 Written Premium 1,000

2020 Loss Ratio 75%

$835

65%

750

$658

$714

$661

61%

$764

60% $714

500

$562

55%

50%

$652

$604

$563

62%

250

25%

Direct Written Premium - Independent Agency

20 20

20 19

20 18

20 17

20 16

0 2016 2017 2018 2019 2020

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Other Liability (Occurrence) Average Penetration: 85.2% All Distribution Trend (DPW) IA Trend 6.1% 6.2%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 113

5 yr. Loss Adj. Ratio 60%

Affil+Unaffil: 408

5 yr. Combined Ratio 105%

S.L. Insurers: 105

D. Surplus Lines / ALL DPW 39.88%

RRGs: 18

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio 2020 Commission Group Name or ALL L.O.B. DPW Chubb INA Group (G) [6.6%] $55,315,000 20% N/A $277,965,000 Travelers Group (G) [6.3%] $52,704,000 78% N/A $306,651,000 Zurich Insurance US PC Group (G) [4.5%] $37,158,000 32% N/A $237,319,000 Nationwide Group (G) [4.4%] $36,778,000 72% N/A $136,795,000 W. R. Berkley Insurance Group (G) [4.4%] $36,421,000 65% N/A $92,194,000 L.O.B. Total or Industry Ave. $834,789,000 60% 14.3% $12,479,782,000

Top 10 Independent Agent Insurers The Gray Insurance Company $33,234,000 The Gray Insurance Group 143.1% 19.0% Zurich American Insurance Company $31,540,000 Zurich Insurance US PC Group 17.7% 6.9% Scottsdale Insurance Company $30,940,000 Nationwide Group 74.3% 24.2% ACE American Insurance Company $24,257,000 Chubb INA Group -27.5% 3.2% Travelers Property Casualty Co of Amer $23,242,000 Travelers Group 77.0% 12.9% Crum & Forster Specialty Insurance Co $17,273,000 Fairfax Financial (USA) Group 38.5% 19.9% AXIS Surplus Insurance Company $16,302,000 AXIS US Operations 28.3% 17.0% Nautilus Insurance Company $15,417,000 W. R. Berkley Insurance Group 40.8% 22.2% Indian Harbor Insurance Company $13,151,000 XL Reinsurance America Group 58.2% 17.4% Burlington Insurance Company $11,857,000 IFG Companies 43.9% 18.8%

Top 3 MGA/Wholesale Insurers

Evanston Insurance Company BCS Insurance Company Western World Insurance Company

Top 3 State Farm Fire and Casualty Company Federated Mutual Insurance Company Louisiana Farm Bureau Casualty Ins Co

$15,618,000 $13,228,000 $8,498,000

Captive-Exclusive

$20,398,000 $8,512,000 $5,810,000

and

-2.7% 35.3% 32.6%

Direct

63.5% 84.6% 81.6%

19.1% 5.1% 24.2%

Insurers

Top 3 Surplus Lines Insurers

Markel Corporation Group BCS Financial Group American International Group

State Farm Group 12.1% Federated Mutual Group 0.0% 7.8% Southern Farm Bureau Casualty Grp

Scottsdale Insurance Company Crum & Forster Specialty Insurance Co AXIS Surplus Insurance Company

$30,940,000 $17,273,000 $16,302,000

74.3% 38.5% 28.3%

24.2% 19.9% 17.0%

Nationwide Group Fairfax Financial (USA) Group AXIS US Operations

United Educators Ins, a Reciprocal RRG

$2,492,000

10.2%

5.5%

...

Top RRG

Source: © A.M. Best Company — used by permission.

Louisiana Marketplace Report

Other Liability (Claims-made) 2020 Written Premium 250 200 150

2020 Loss Ratio 60%

$236 $202

$183

$222

$213

$209

51% $215 $200

$193

$191

51%

44%

40%

39%

100 20%

20 20

20 19

20 18

Direct Written Premium - All Distriibution Types

20 17

20 20

0% 20 16

Direct Written Premium - Independent Agency

20 19

20 18

20 17

20 16

2020 - Louisiana - Other Liability (Claims-made) Average Penetration: 90.7% All Distribution Trend (DPW) IA Trend 3.9% 4.1%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 68

5 yr. Loss Adj. Ratio 47%

Affil+Unaffil: 243

5 yr. Combined Ratio 96%

S.L. Insurers: 79

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio CNA Insurance Companies (G) [13.3%] $31,477,000 34% Travelers Group (G) [12.2%] $28,885,000 36% XL Reinsurance America Group (G) [7.7%] $18,080,000 31% Chubb INA Group (G) [6.9%] $16,187,000 63% American International Group (G) [6.6%] $15,531,000 206% L.O.B. Total or Industry Ave. $235,930,000 51%

Continental Casualty Company Travelers Casualty and Surety Co of Amer XL Specialty Insurance Company Indian Harbor Insurance Company Federal Insurance Company National Union Fire Ins Co Pittsburgh PA Scottsdale Insurance Company AIG Specialty Insurance Company Ironshore Specialty Insurance Co Admiral Insurance Company

D. Surplus Lines / ALL DPW 35.30%

RRGs: 20

2020 Commission Group Name or ALL L.O.B. DPW N/A $245,580,000 N/A $306,651,000 N/A $109,098,000 N/A $277,965,000 N/A $243,170,000 16.9% $12,479,782,000

Top 10 Independent Agent Insurers $28,871,000 $26,521,000 $9,278,000 $8,436,000 $7,391,000 $6,324,000 $5,712,000 $4,962,000 $3,946,000 $3,132,000

33.4% 40.4% 35.8% 29.4% 145.7% 321.9% 44.2% 46.2% 18.3% 24.1%

$2,953,000 $2,596,000 $2,299,000

39.5% 45.0% 38.8%

Markel Corporation Group 18.4% 14.3% Doctors Company Insurance Group Argo Group 19.1%

$5,063,000 $923,000 $714,000

7.9% 9.3% 20.5%

21.5% 0.0% 14.0%

Swiss Reinsurance Group CUMIS Insurance Society Group Liberty Mutual Ins Cos

Indian Harbor Insurance Company Scottsdale Insurance Company AIG Specialty Insurance Company

$8,436,000 $5,712,000 $4,962,000

29.4% 44.2% 46.2%

14.9% 29.8% 12.1%

XL Reinsurance America Group Nationwide Group American International Group

Attorneys' Liab Assr Society Ltd., A RRG

$3,576,000

67.2%

0.0%

...

Top 3 MGA/Wholesale Insurers Evanston Insurance Company TDC Specialty Insurance Company Peleus Insurance Company

18.3% 16.3% 13.9% 14.9% 15.9% 10.8% 29.8% 12.1% 12.7% 18.3%

Top 3 Captive-Exclusive and Direct Insurers Westport Insurance Corporation CUMIS Insurance Society, Inc. Ironshore Indemnity Inc.

Top 3 Surplus Lines Insurers

Top RRG

Source: © A.M. Best Company — used by permission.

CNA Insurance Companies Travelers Group XL Reinsurance America Group XL Reinsurance America Group Chubb INA Group American International Group Nationwide Group American International Group Liberty Mutual Ins Cos W. R. Berkley Insurance Group

Louisiana Marketplace Report

Page 23

Inland Marine 2020 Written Premium 500

$459

$439 $406

400 300

$304

2020 Loss Ratio

80%

$444

$412

$312

$351

$336

60%

68%

$336

47%

40%

200 100

47% 42%

20%

Direct Written Premium - Independent Agency

20 20

20 19

20 18

20 17

20 16

0 2016 2017 2018 2019 2020

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Inland Marine Average Penetration: 75.8%

All Distribution Trend (DPW) IA Trend 2.2% 2.6%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 86

5 yr. Loss Adj. Ratio 57%

Affil+Unaffil: 292

5 yr. Combined Ratio 95%

S.L. Insurers: 63

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio CNA Insurance Companies (G) [24.8%] $109,893,000 72% Liberty Mutual Ins Cos (G) [11.6%] $51,281,000 77% Fortegra P&C Group (G) [6.5%] $28,717,000 17% State Farm Group (G) [5.0%] $22,277,000 64% Zurich Insurance US PC Group (G) [4.0%] $17,692,000 94% L.O.B. Total or Industry Ave. $443,927,000 80%

Continental Casualty Company Lyndon Southern Insurance Company Travelers Property Casualty Co of Amer American Zurich Insurance Company XL Specialty Insurance Company Progressive Security Insurance Company AGCS Marine Insurance Company Jewelers Mutual Insurance Company, SI Zurich American Insurance Company Starr Indemnity & Liability Company

2020 Commission Group Name or ALL L.O.B. DPW N/A $245,580,000 N/A $488,466,000 N/A $28,717,000 N/A $2,016,253,000 N/A $237,319,000 18.4% $12,479,782,000

Top 10 Independent Agent Insurers $109,310,000 $28,717,000 $12,126,000 $11,014,000 $10,137,000 $7,981,000 $7,694,000 $6,442,000 $6,061,000 $5,459,000

72.2% 16.8% 46.3% 133.4% 44.9% 84.5% 79.6% 26.7% 27.8% 69.3%

CNA Insurance Companies 12.6% Fortegra P&C Group 72.9% Travelers Group 17.4% Zurich Insurance US PC Group 29.1% XL Reinsurance America Group 17.0% Progressive Insurance Group 10.0% 15.6% Allianz US PC Insurance Companies Jewelers Mutual Insurance Group 3.5% Zurich Insurance US PC Group 47.9% Starr International Group 12.9%

$2,891,000 $2,862,000 $2,827,000

173.3% 41.4% 42.0%

21.4% Skyward Specialty Insurance Group RLI Group 16.5% ... 44.5%

Top 3 MGA/Wholesale Insurers Houston Specialty Insurance Company RLI Insurance Company Securian Casualty Company

D. Surplus Lines / ALL DPW 5.47%

RRGs: 0

Top 3 Captive-Exclusive and Direct Insurers Liberty Insurance Underwriters, Inc. State Farm Fire and Casualty Company Louisiana Farm Bureau Mutual Ins Co

Lexington Insurance Company Houston Specialty Insurance Company ANPAC Louisiana Insurance Company

None in L.O.B.

$44,726,000 $22,277,000 $9,639,000

Top 3 Surplus

$4,460,000 $2,891,000 $1,964,000

Lines Insurers

Top RRG

#N/A

78.5% 63.7% 76.2%

124.5% 173.3% 44.1%

#N/A

Source: © A.M. Best Company — used by permission.

0.0% 12.0% 8.7%

Liberty Mutual Ins Cos State Farm Group ...

American International Group 18.4% 21.4% Skyward Specialty Insurance Group 15.3%American National Prop & Cas Group

#N/A

Louisiana Marketplace Report

Page 24

Total-All Lines of Business 2020 Written Premium

2020 Loss Ratio

15,000

125%

$11,012

$11,947

$11,416

$12,384

$12,506

100%

10,000 75% $5,605

$6,058

$5,723

$6,460

$6,754

87%

50%

54%

57%

54%

25%

20 20

20 19

Direct Written Premium - All Distriibution Types

20 18

20 20

0% 20 17

Direct Written Premium - Independent Agency

20 19

20 18

20 17

20 16

5,000

121%

2020 - Louisiana - TTL Grps I+II (All Typical Lines) Average Penetration: 51.6% All Distribution Trend (DPW) IA Trend 3.2% 4.8%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 170 Top 5 Groups or Unaffil. [Mkt Share %] State Farm Group (G) [16.1%] Progressive Insurance Group (G) [8.6%] Allstate Insurance Group (G) [7.6%] Berkshire Hathaway Ins Grp (G) [5.6%] Liberty Mutual Ins Cos (G) [3.9%] L.O.B. Total or Industry Ave.

Progressive Security Insurance Company Louisiana Workers’ Comp Corp Continental Casualty Company Imperial Fire and Casualty Insurance Co Zurich American Insurance Company Safeco Insurance Company of Oregon Scottsdale Insurance Company ACE American Insurance Company National Union Fire Ins Co Pittsburgh PA Progressive Property Insurance Company

5 yr. Loss Adj. Ratio 75%

Affil+Unaffil: 764

5 yr. Combined Ratio 110%

S.L. Insurers: 126

Direct Premium-This LOB 2020 Adj. Loss Ratio $2,016,253,000 114% $1,076,643,000 68% $947,910,000 119% $695,925,000 80% $488,466,000 104% $12,506,467,000 121%

2020 Commission Group Name or ALL L.O.B. DPW N/A $2,016,253,000 N/A $1,076,643,000 N/A $947,910,000 N/A $695,925,000 N/A $488,466,000 11.5% $12,479,782,000

Top 10 Independent Agent Insurers $574,934,000 $206,163,000 $166,044,000 $155,873,000 $147,724,000 $122,703,000 $109,505,000 $92,077,000 $89,693,000 $86,479,000

55.8% 73.9% 107.3% 77.3% 347.6% 105.7% 196.6% 57.9% 81.9% 200.2%

10.8% 10.6% 13.8% 11.4% 7.2% 12.8% 22.4% 7.6% 11.7% 14.8%

Progressive Insurance Group ... CNA Insurance Companies Allstate Insurance Group Zurich Insurance US PC Group Liberty Mutual Ins Cos Nationwide Group Chubb INA Group American International Group Progressive Insurance Group

$166,991,000 $91,432,000 $81,357,000

65.6% 35.3% 199.7%

0.0% 20.3% 16.0%

... ... United Insurance Group

$1,330,444,000 $654,021,000 $469,451,000

61.1% 215.6% 70.7%

9.6% 11.9% 1.8%

State Farm Group State Farm Group Berkshire Hathaway Ins Grp

$109,505,000 $80,347,000 $74,929,000

196.6% 85.5% 76.5%

Nationwide Group 22.4% 14.0%American National Prop & Cas Group 22.1% Skyward Specialty Insurance Group

$5,957,000

118.0%

21.9%

Top 3 MGA/Wholesale Insurers GoAuto Insurance Company Wright National Flood Insurance Company United Property & Casualty Ins Co

Top 3 Captive-Exclusive and Direct Insurers State Farm Mutual Automobile Ins Co State Farm Fire and Casualty Company GEICO Casualty Company

Top 3 Surplus Lines Insurers Scottsdale Insurance Company ANPAC Louisiana Insurance Company Houston Specialty Insurance Company

OOIDA Risk Retention Group, Inc.

D. Surplus Lines / ALL DPW 11.14%

RRGs: 52

Top RRG

Source: © A.M. Best Company — used by permission.

...

Louisiana Marketplace Report

Page 25

Fire & Allied Lines Breakout $311,468,000

Fire Only

$388,927,000

Allied Lines

$89,958,000

Multi-Peril Crop

$174,490,000

Federal Flood

$4,186,000

Private Crop

$12,869,000

Private Flood

$4,439,000

Earthquake $0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

Source: © A.M. Best Company — used by permission

Notes or Comments: We’re taking some extra time to break out Fire and Allied Lines because it has an outsized effect on premiums in Louisiana. In many states, it makes sense to group Fire & Allied lines together, as AM Best does in their standard report. However, given Louisiana’s increased exposure, it’s important to understand the separate effects of wind vs flood on premiums. For instance, note the effects of Hurricanes Laura, Delta and Zeta. The vast majority of losses are on the wind lines, with only relatively minor effects on flood loss history. This (combined with the effects of Hurricane Ida, this year, which won’t appear in the data until next year’s report) are driving up the rates on Homeowners and other property accounts.

Louisiana Marketplace Report

Page 26

Fire & Allied Lines: Fire Perils 2020 Written Premium $400

$373 $344

$340

255%

$304 $259

$200

300%

$353

$300 $282

2020 Loss Ratio $382

$311

200%

$275

100% 44%

20 19

20 18

20 17

20 16

20 20

20 19

20 18

20 17

20 16

Direct Written Premium - Independent Agency

35%

31%

28%

20 20

$100

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Fire Only Average Penetration: 79.8% All Distribution Trend (DPW) IA Trend 2.6% 2.6%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 84

5 yr. Loss Adj. Ratio 81%

Affil+Unaffil: 234

5 yr. Combined Ratio 112%

S.L. Insurers: 71

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio Starr International Group (G) [9.0%] $34,448,000 411% Southern Fidelity Ins Co [7.6%] $29,033,000 357% FM Global Group (G) [4.8%] $18,361,000 89% Zurich Insurance US PC Group (G) [4.7%] $17,935,000 878% Farmers Ins Grp (G) [4.2%] $16,197,000 261% L.O.B. Total or Industry Ave. () $381,714,000 256%

Starr Surplus Lines Ins Co Foremost Insurance Co Grand Rapids, MI General Security Indemnity Co of Arizona Dorinco ReIns Co Arch Specialty Ins Co Zurich American Ins Co Allianz Global Risks US Insurance Co Lexington Ins Co Scottsdale Ins Co HDI Global Ins Co

2020 Commission Group Name or ALL L.O.B. DPW N/A $104,171,000 N/A $72,862,000 N/A $82,285,000 N/A $237,319,000 N/A $76,807,000 13.2% $12,479,782,000

Top 10 Independent Agent Insurers $34,433,000 $16,197,000 $14,697,000 $12,400,000 $11,180,000 $10,597,000 $8,716,000 $8,577,000 $7,388,000 $6,370,000

410.7% 260.8% 311.5% 0.0% 448.2% 1505.5% 7.1% 126.5% 582.0% 12.3%

$29,033,000 $13,774,000 $2,870,000

356.8% 7.0% 33.4%

12.2% 13.1% 22.1%

... Cypress Holdings Group Global Indemnity Group

$7,010,000 $6,024,000 $3,139,000

30.1% 30.8% 42.2%

1.3% 1.6% 27.3%

Assurant P&C Group Kemper PC Companies Shelter Insurance Companies

$34,433,000 $14,697,000 $11,180,000

410.7% 311.5% 448.2%

18.2% 12.2% 17.6%

Starr International Group SCOR US Group Arch Ins Grp

None

Top 3 MGA/Wholesale Insurers Southern Fidelity Ins Co Access Home Ins Co United National Ins Co

D. Surplus Lines / ALL DPW 38.36%

RRGs: 0

Starr International Group 18.2% Farmers Ins Grp 13.6% SCOR US Group 12.2% ... 3.2% Arch Ins Grp 17.6% Zurich Insurance US PC Group 6.7% 2.0% Allianz US PC Insurance Companies American International Group 18.5% Nationwide Group 24.2% HDI/Talanx US PC Group 3.5%

Top 3 Captive-Exclusive and Direct Insurers American Security Ins Co Union National Fire Ins Co Shelter Mutual Ins Co

Top 3 Surplus Lines Insurers Starr Surplus Lines Ins Co General Security Indemnity Co of Arizona Arch Specialty Ins Co

None in L.O.B.

Top RRG

Source: © A.M. Best Company — used by permission.

Louisiana Marketplace Report

Page 27

Fire & Allied Lines: Allied Perils 2020 Written Premium

2020 Loss Ratio

$600

500%

$512

$415

$418

$346

$336

$332

$400

407%

400%

$461

$430

300%

$389 $350

200%

$200

100% 62%

20 20

44%

24%

20 18

20 17

20 16

20 20

20 19

20 18

20 17

20 16

Direct Written Premium - Independent Agency

19%

20 19

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Allied Lines Average Penetration: 78.6% All Distribution Trend (DPW) IA Trend 4.5% 3.0%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 82

5 yr. Loss Adj. Ratio 122%

Affil+Unaffil: 226

5 yr. Combined Ratio 146%

S.L. Insurers: 65

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio Louisiana Citizens Property Ins Corp [8.9%] $45,540,000 195% FM Global Group (G) [8.0%] $41,223,000 120% Zurich Insurance US PC Group (G) [5.6%] $28,801,000 1000% GeoVera U.S. Ins Grp (G) [5.0%] $25,503,000 97% Chubb INA Group (G) [4.0%] $20,302,000 267% L.O.B. Total or Industry Ave. () $512,447,000 407%

GeoVera Specialty Ins Co Zurich American Ins Co Westchester Surplus Lines Insurance Co QBE Specialty Ins Co Lexington Ins Co Foremost Insurance Co Grand Rapids, MI Scottsdale Ins Co AXIS Surplus Ins Co State National Fire Ins Co National Fire & Marine Insurance Co

$25,503,000 96.9% $17,446,000 1788.0% $16,989,000 282.9% $14,654,000 629.0% $13,014,000 1156.8% $12,687,000 10.5% $12,646,000 215.4% $12,355,000 379.4% $10,614,000 541.9% $9,423,000 459.1%

3 MGA/Wholesale Insurers $12,198,000 $8,537,000 $4,882,000

Top 3 Captive-Exclusive American Security Ins Co Westport Insurance Corporation Louisiana Farm Bureau Mutual Ins Co

2020 Commission Group Name or ALL L.O.B. DPW N/A $59,196,000 N/A $82,285,000 N/A $237,319,000 N/A $59,178,000 N/A $277,965,000 12.8% $12,479,782,000

Top 10 Independent Agent Insurers

Top Maison Ins Co United Property & Casualty Ins Co Americas Ins Co

$16,921,000 $14,658,000 $9,336,000

288.0% 96.7% 99.7%

and Direct

245.3% 711.4% 393.5%

None in L.O.B.

16.5% 6.3% 14.5% 27.5% 23.8% 13.4% 21.1% 17.9% 21.4% 9.5%

GeoVera U.S. Ins Grp Zurich Insurance US PC Group Chubb INA Group QBE North America Ins Grp American International Group Farmers Ins Grp Nationwide Group AXIS US Operations ... Berkshire Hathaway Ins Grp

14.0% 22.1% 31.5%

FedNat Ins Grp United Ins Grp Americas Ins Grp

3.2% 1.7% 8.4%

Assurant P&C Group Swiss ReIns Grp ...

Insurers

Top 3 Surplus Lines Insurers GeoVera Specialty Ins Co Westchester Surplus Lines Insurance Co QBE Specialty Ins Co

D. Surplus Lines / ALL DPW 37.49%

RRGs: 0

$25,503,000 $16,989,000 $14,654,000

96.9% 282.9% 629.0%

16.5% 14.5% 27.5%

GeoVera U.S. Ins Grp Chubb INA Group QBE North America Ins Grp

None

Top RRG

Louisiana Marketplace Report

Fire & Allied Lines: Federal Flood 2020 Written Premium $300

$252

$253

$254

2020 Loss Ratio

1,000%

$267

805%

$221

750%

$200 $159

$162

$158

500%

$174

$140

$100

250% 0%

Direct Written Premium - Independent Agency

20 20

20 19

20 18

20 17

35%

20 16

20 20

20 19

20 18

20 17

20 16

50%

32%

11%

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Federal Flood Average Penetration: 63.6% All Distribution Trend (DPW) IA Trend 1.4% 2.3%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 24

5 yr. Loss Adj. Ratio 189%

Affil+Unaffil: 31

5 yr. Combined Ratio 233%

S.L. Insurers: 2

D. Surplus Lines / ALL DPW 3.18%

RRGs: 0

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio Wright National Flood Ins Co [34.1%] $91,135,000 35% Allstate Ins Grp (G) [21.3%] $56,896,000 57% Assurant P&C Group (G) [11.3%] $30,323,000 43% Selective Ins Grp (G) [5.2%] $13,847,000 62% Southern Farm Bureau Casualty Grp (G) [4.6%] $12,220,000 157% L.O.B. Total or Industry Ave. () $267,319,000 50%

American Bankers Insurance Co of Florida Imperial Fire and Casualty Insurance Co Selective Insurance Co of the Southeast ASI Lloyds Bankers Specialty Ins Co Hartford Insurance Co of the Midwest Gulf States Ins Co Foremost Insurance Co Grand Rapids, MI Hartford Underwriters Ins Co Philadelphia Indemnity Ins Co

Top 10 Independent $30,323,000 $20,629,000 $13,847,000 $9,767,000 $8,382,000 $8,290,000 $3,330,000 $1,462,000 $979,000 $337,000

2020 Commission Group Name or ALL L.O.B. DPW N/A $91,432,000 N/A $947,910,000 N/A $105,802,000 N/A $13,847,000 N/A $256,874,000 18.3% $12,479,782,000

Agent Insurers Assurant P&C Group 42.7% 20.0% Allstate Ins Grp 37.6% 25.8% Selective Ins Grp 62.3% 20.8% Progressive Ins Grp 24.8% 19.7% Bankers Financial Group 98.9% 21.4% Hartford Ins Grp 49.8% 18.8% ... 0.0% 21.2% Farmers Ins Grp 39.0% 15.7% Hartford Ins Grp 7.5% 0.1% Tokio Marine US PC Group 6.8% 19.0%

Top 3 MGA/Wholesale Insurers Wright National Flood Ins Co United Property & Casualty Ins Co Occidental Fire and Casualty Co of NC

20.3% 15.2% 4.9%

35.2% 9.3% 0.0%

$36,266,000 $12,220,000 $10,054,000

68.7% 157.0% 51.4%

Allstate Ins Grp 15.2% 14.7% Southern Farm Bureau Casualty Grp USAA Group 0.0%

$8,382,000 $38,000 None

98.9% -16.7% None

21.4% 23.7% None

Bankers Financial Group Trisura US Ins Grp None

None

Top 3 Captive-Exclusive and Direct Insurers Allstate Ins Co Louisiana Farm Bureau Casualty Ins Co USAA General Indemnity Company

Top 3 Surplus Lines Insurers Bankers Specialty Ins Co Trisura Specialty Ins Co None in L.O.B.

None in L.O.B.

... United Ins Grp IAT Ins Grp

$91,135,000 $1,529,000 $1,423,000

Top RRG

Louisiana Marketplace Report

Page 29

Fire & Allied Lines: Private Flood 2020 Written Premium

2020 Loss Ratio

$25

500%

$21

300%

$15

$15 $11

200%

$13

$10

$11 $8

432%

400%

$19

$18

100%

75%

20 19

20 18

20 16

20 20

20 19

20 18

20 17

20 16

Direct Written Premium - Independent Agency

20%

-30%

-100%

20 17

21%

20 20

$20

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Private Flood Average Penetration: 49.5% All Distribution Trend (DPW) IA Trend 13.4% 55.6%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 24

5 yr. Loss Adj. Ratio 76%

Affil+Unaffil: 24

5 yr. Combined Ratio 134%

S.L. Insurers: 15

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio Assurant P&C Group (G) [16.4%] $3,116,000 23% Arch Ins Grp (G) [16.2%] $3,079,000 8% Swiss ReIns Grp (G) [12.0%] $2,276,000 -19% American International Group (G) [11.5%] $2,186,000 35% Allstate Ins Grp (G) [10.6%] $2,022,000 88% L.O.B. Total or Industry Ave. () $19,012,000 20%

Arch Specialty Ins Co Agent Alliance Ins Co Zurich American Ins Co Integon National Ins Co Landmark American Ins Co Lexington Ins Co XL Insurance America, Inc. Allianz Global Risks US Insurance Co National Fire & Marine Insurance Co American Guarantee and Liability Ins Co

Top

Top 3 American Security Ins Co Westport Insurance Corporation Liberty Mutual Fire Ins Co

2020 Commission Group Name or ALL L.O.B. DPW N/A $105,802,000 N/A $71,974,000 N/A $2,276,000 N/A $243,170,000 N/A $947,910,000 11.1% $12,479,782,000

Top 10 Independent Agent Insurers

Western World Ins Co Wright National Flood Ins Co Independent Specialty Ins Co

$3,039,000 7.9% $1,210,000 141.2% $1,121,000 65.2% $812,000 26.6% $780,000 0.0% $733,000 39.0% $708,000 9.9% $555,000 0.6% $504,000 11.8% $392,000 -5.8%

3 MGA/Wholesale Insurers

$1,153,000 $297,000 $13,000

Captive-Exclusive

$3,116,000 $2,001,000 $268,000

None in L.O.B.

Arch Ins Grp 16.1% Allstate Ins Grp 34.6% Zurich Insurance US PC Group 5.9% Allstate Ins Grp 9.1% Alleghany Corporation Group 14.6% American International Group 22.1% XL Reinsurance America Group 2.1% 1.3% Allianz US PC Insurance Companies Berkshire Hathaway Ins Grp 12.7% Zurich Insurance US PC Group 11.5%

American International Group ... Markel Corporation Group

3.5% 73.5% 0.0%

18.0% 24.6% 23.1%

23.3% -0.5% -9.6%

Assurant P&C Group 0.9% Swiss ReIns Grp 1.8% 14.2% Liberty Mutual Insurance Companies

and Direct Insurers

Top 3 Surplus Lines Insurers

Arch Specialty Ins Co Agent Alliance Ins Co Western World Ins Co

D. Surplus Lines / ALL DPW 41.97%

RRGs: 0

$3,039,000 $1,210,000 $1,153,000

7.9% 141.2% 3.5%

16.1% 34.6% 18.0%

Arch Ins Grp Allstate Ins Grp American International Group

None

Top RRG

Louisiana Marketplace Report

Page 30

Fire & Allied Lines: Multi-Peril Crop 2020 Written Premium $100

$84

$75

$84

$72

2020 Loss Ratio 200%

$90

166%

$83

$80

$90

150%

$83

$80

150% 157%

$71

$50

100% 86%

Direct Written Premium - Independent Agency

20 20

20 19

20 18

20 17

55%

20 16

20 20

20 19

20 18

20 17

50%

20 16

$25

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Multi-Peril Crop Average Penetration: 99.7% All Distribution Trend (DPW) IA Trend 5.9% 5.9%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 11

5 yr. Loss Adj. Ratio 123%

Affil+Unaffil: 11

5 yr. Combined Ratio 149%

S.L. Insurers: 0

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio Sompo Holdings US Group (G) [55.4%] $49,884,000 167% Chubb INA Group (G) [29.7%] $26,766,000 128% QBE North America Ins Grp (G) [7.8%] $7,006,000 136% FMH Ins Grp (G) [3.1%] $2,820,000 292% Zurich Insurance US PC Group (G) [1.8%] $1,659,000 234% L.O.B. Total or Industry Ave. () $90,046,000 157%

ACE Property and Casualty Insurance Co Agri General Ins Co NAU Country Ins Co Great American Ins Co Farmers Mutual Hail Insurance Co of Iowa Producers Agriculture Ins Co None None None None

2020 Commission N/A N/A N/A N/A N/A 7.8%

Top 10 Independent Agent Insurers

Top 3 State Farm Fire and Casualty Company None None

Group Name or ALL L.O.B. DPW $102,127,000 $277,965,000 $7,006,000 $2,820,000 $237,319,000 $12,479,782,000

Chubb INA Group Chubb INA Group QBE North America Ins Grp Great American P & C Ins Grp FMH Ins Grp Tokio Marine US PC Group None None None None

$15,917,000 $10,849,000 $7,006,000 $1,099,000 $701,000 $229,000 None None None None

102.7% 164.6% 135.6% 112.3% 250.7% 84.6% None None None None

1.8% 1.8% 16.4% 17.0% 15.4% 18.8% None None None None

$2,119,000 $1,659,000 $497,000

Captive-Exclusive

$88,000 None None

305.4% 233.5% 198.7%

18.4% 6.3% 0.0%

FMH Ins Grp Zurich Insurance US PC Group American International Group

63.3% None None

21.6% None None

State Farm Group None None

Top 3 MGA/Wholesale Insurers FMH Ag Risk Ins Co Rural Community Ins Co Stratford Ins Co

D. Surplus Lines / ALL DPW 0.00%

RRGs: 0

and Direct Insurers

Top 3 Surplus Lines Insurers

None in L.O.B. None in L.O.B. None in L.O.B.

None None None

None in L.O.B.

None

Top RRG

Louisiana Marketplace Report

Page 31

Fire & Allied Lines: Private Crop 2020 Written Premium $5

2020 Loss Ratio

400%

395%

312%

300%

281%

200%

218% 168%

100%

20 20

20 19

20 18

20 16

20 20

20 19

20 18

20 17

20 16

Direct Written Premium - Independent Agency

20 17

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Private Crop Average Penetration: 99.9% All Distribution Trend (DPW) 7.9%

Active Grps | Pol. Issuing | S.L. | RRGs =>

IA Trend 7.8%

Groups: 8

5 yr. Loss Adj. Ratio 275%

Affil+Unaffil: 8

5 yr. Combined Ratio 328%

S.L. Insurers: 0

D. Surplus Lines / ALL DPW 0.00%

RRGs: 0

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio 2020 Commission Group Name or ALL L.O.B. DPW Sompo Holdings US Group (G) [71.2%] $2,987,000 451% N/A $102,127,000 Chubb INA Group (G) [18.6%] $782,000 311% N/A $277,965,000 QBE North America Ins Grp (G) [8.1%] $340,000 145% N/A $340,000 American International Group (G) [1.0%] $44,000 113% N/A $243,170,000 Zurich Insurance US PC Group (G) [0.6%] $24,000 74% N/A $237,319,000 L.O.B. Total or Industry Ave. () $4,194,000 395% 14.4% $12,479,782,000

Top 10 Independent Agent Insurers ACE Property and Casualty Insurance Co $504,000 Chubb INA Group 291.9% 35.9% NAU Country Ins Co $340,000 QBE North America Ins Grp 145.3% 16.2% Agri General Ins Co $277,000 Chubb INA Group 339.0% 35.7% Great American Ins Co $9,000 Great American P & C Ins Grp 588.9% 11.1% None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None

Top 3 MGA/Wholesale Insurers FMH Ag Risk Ins Co Rural Community Ins Co Stratford Ins Co

Top 3 Stratford Ins Co Rural Community Ins Co None in L.O.B.

305.4% 233.5% 198.7%

18.4% 6.3% 0.0%

FMH Ins Grp Zurich Insurance US PC Group American International Group

113.6% 75.0% None

18.2% 16.7% None

American International Group Zurich Insurance US PC Group None

$8,000 None None

0.0% None None

25.0% None None

None

State Farm Group None None

None

$2,119,000 $1,659,000 $497,000

Captive-Exclusive

$44,000 $24,000 None

and Direct Insurers

Top 3 Surplus Lines Insurers

State Farm Fire and Casualty Company None None

None in L.O.B.

Top RRG

Louisiana Marketplace Report

Page 32

Fire & Allied Lines: Earthquake 2020 Written Premium $8

2020 Loss Ratio 15%

10%

14%

3% 2%

-2%

20 20

20 19

20 18

20 16

20 20

20 19

20 18

20 17

20 16

Direct Written Premium - Independent Agency

20 17

-5%

Direct Written Premium - All Distriibution Types

2020 - Louisiana - Earthquake Average Penetration: 71.8% All Distribution Trend (DPW) IA Trend 2.1% 5.6%

Active Grps | Pol. Issuing | S.L. | RRGs => Groups: 47

5 yr. Loss Adj. Ratio 4%

Affil+Unaffil: 97

5 yr. Combined Ratio 29%

S.L. Insurers: 34

D. Surplus Lines / ALL DPW 52.54%

RRGs: 0

Top 5 Groups or Unaffil. [Mkt Share %] Direct Premium-This LOB 2020 Adj. Loss Ratio2020 Commission Group Name or ALL L.O.B. DPW State Farm Group (G) [13.9%] $808,000 1% N/A $2,016,253,000 American International Group (G) [12.7%] $740,000 -31% N/A $243,170,000 Markel Corporation Group (G) [9.8%] $570,000 161% N/A $104,151,000 Sompo Holdings US Group (G) [8.8%] $514,000 2% N/A $102,127,000 Allianz US PC Insurance Companies (G) [7.9%] $459,000 3% N/A $65,126,000 L.O.B. Total or Industry Ave. () $5,818,000 14% 11.0% $12,479,782,000

Top 10 Independent Agent Insurers Endurance American Specialty Ins Co $514,000

Sompo Holdings US Group 1.0% 10.1% Lexington Ins Co $479,000 American International Group -45.1% 15.2% Allianz Global Risks US Insurance Co $418,000 2.9% 1.2% Allianz US PC Insurance Companies XL Insurance America, Inc. $405,000 XL Reinsurance America Group 0.0% 2.5% Arch Specialty Ins Co $188,000 Arch Ins Grp 0.0% 16.0% Westchester Surplus Lines Insurance Co $159,000 Chubb INA Group 0.0% 12.6% AIG Specialty Ins Co $148,000 American International Group 12.1% 1.4% Ategrity Specialty Ins Co $130,000 ... 20.7% 16.2% Continental Casualty Company $124,000 CNA Insurance Companies 0.0% 13.7% AXIS Surplus Ins Co $119,000 AXIS US Operations 36.6% 13.4%

Top 3 MGA/Wholesale Insurers

Evanston Ins Co Hallmark Specialty Ins Co Houston Casualty Company

14.0% 10.2% 9.7%

160.8% 22.0% -3.4%

$501,000 $308,000 $101,000

1.6% 0.0% 0.0%

$570,000 $514,000 $479,000

160.8% 1.0% -45.1%

14.0% 10.1% 15.2%

Markel Corporation Group Sompo Holdings US Group American International Group

None

Top 3 Captive-Exclusive and Direct Insurers State Farm General Ins Co State Farm Fire and Casualty Company Liberty Mutual Fire Ins Co

Top 3 Surplus Lines Insurers Evanston Ins Co Endurance American Specialty Ins Co Lexington Ins Co

None in L.O.B.

Markel Corporation Group Hallmark Ins Grp Tokio Marine US PC Group

$570,000 $88,000 $31,000

Top RRG

State Farm Group 11.8% State Farm Group 12.0% 13.9% Liberty Mutual Insurance Companies

Louisiana Marketplace Report

APPENDICES Appendix: Data for Independent Agents The source of most of the data presented in this summary is A.M. Best and its Financial Suite. That is a system that allows various standard and custom reports. A.M. Best obtains the data from the annual statements filed by each domestic insurance company with its state regulator. This summary takes standard reports, classifications and calculations made available by A.M. Best and adds custom data extractions from their systems to arrive at what is intended to be an insurance agent’s perspective on data from insurer annual reports. You may be familiar with the term "Yellow Book" for the annual statement required to be made by P-C insurers with their primary regulator. That is, the original source of most of the data in this summary but A.M. Best makes organizing and presenting it in an agent-focused way possible. The reference to “Yellow Book” is based on history. Insurers in different insurance categories had a designated color for their annual reports—such as yellow for PC or blue for life. The data presentations are designed to be consistent with the member agent's view of the insurance world. That is, unlike industry watchers of insurer profitability and insolvency, direct written premiums are used in this P-C summary—not gross premiums or net written premiums. The latter is typically used by the industry press and industry analysts and those premiums can include reinsurance and inter-company transfers. While useful in the context of solvency or insurer profitability, net and gross premiums can cloud the picture of the independent agent’s experience in the marketplace.

Finally, take note that in presentations of industry data like this one, L.O.B.s are also often grouped by similar L.O.B.s as they are tracked as part of annual statements. The page in annual statements used most frequently in this summary is Statutory Page 14 which is also known as the “States Page.” As some L.O.B.s are overly specific (for example, automobile physical damage is separate from automobile liability), it is logical to combine some of these lines. In other cases, the individual lines are often so broad, they are then broken down further. Fire & Allied lines is a good example of that sort of standard L.O.B. combination. In all cases, the goal of this summary is to present the L.O.B. data to align as closely as possible with insurance agency operations, marketing strategies or staff assignments. If a combined L.O.B. represents important subsidiary L.O.B.s or another analysis of a more specific L.O.B. is needed it is broken out.

Louisiana Marketplace Report

Page 34

Appendix: NAIC Yellow Book Instructions and L.O.B. Definitions The National Association of Insurance Commissioners provides instructions to insurers for completing the annual statement (also known as Yellow Book). The below are taken from an appendix to the instructions for the last year in the data contained in this summary. When insurers classify premiums, losses, commissions, etc. on a line of business (L.O.B.) basis, the below are the definition that guide them. This most impactful with this summary with the data take from Statutory Page 14, also known as the “States Page.” That pages lists all 34 L.O.B.s and premiums, losses, commissions, etc. on a separate page for every U.S. state. Line-of-Business (LOB or Combination) Aggregate Write-ins

NAIC Line Numbers

Definition

Line 34

Explained coverage written in that do not fit elsewhere.

Aircraft (all perils)

Line 22

Coverage for aircraft (hull) and their contents; aircraft owners’ and aircraft manufacturers’ liability to passengers, airports and other third parties.

All Commercial Auto

Lines 19.3+19.4+21.1

Commercial Auto No-Fault (Personal Injury Protection). Other Commercial Auto Passenger Liability (Include-BI, PD, UM and UIM). Commercial Auto Physical Damage.

All Private Passenger

Lines 19.1+19.2+21.1

Private Passenger Auto No-Fault (Personal Injury Protection). Other Private Passenger Auto Liability (Include-BI/PD/UM and UIM). Private Passenger Auto Physical Damage.

Boiler & Machinery

Line 27

Coverage for the failure of boilers, machinery and electrical equipment. Benefits include: (i) property of the insured that has been directly damaged by the accident. (ii) Costs of temporary repairs and expediting expenses. (iii) Liability for damage to the property of others.

Burglary & Theft

Line 26

Coverage for property taken or destroyed by breaking and entering the insured’s premises, burglary or theft, forgery or counterfeiting, fraud, kidnap and ransom, and offpremises exposure.

Commercial Multiple Peril

Line 5

A contract for a commercial enterprise that packages two or more insurance coverages protecting an enterprise from various property and liability risk exposures. Frequently includes fire, allied lines, various other coverages (e.g., difference in conditions) and liability coverage (such coverages would be included in other annual statement lines, if written individually). Include multi-peril policies (other than farmowners, homeowners and automobile policies) that include coverage for liability other than auto. (Builders’ Risk Policies, Businessowners, Commercial Package Policies, Manufacturers Output Policies, e-Commerce and Difference-in-Conditions).

Credit

Line 28

Coverage purchased by consumers, manufacturers, merchants, educational institutions or other providers of goods and services extending credit, for indemnification of losses or damages resulting from the nonpayment of debts owed to/from them for goods or services provided in the normal course of their business.

Excess Workers’ Compensation Line 17.3

Indemnification coverage provided to self-insured employers on an excess of loss basis.

Farmowners Multiperil

Line 4

A package policy for farming and ranching risks, similar to a homeowners policy, that has been adopted for farms and ranches and includes both property and liability coverages for personal and business losses. Coverages include farm dwellings and their contents, barns, stables, other farm structures and farm inland marine, such as mobile equipment and livestock. A commercial package policy for farming and ranching risks that includes both property and liability coverage. Coverage includes barns, stables, other farm structures and farm inland marine, such as mobile equipment and livestock.

Fidelity

Line 23

A bond covering an employer’s loss resulting from an employee’s dishonest act (e.g., loss of cash, securities, valuables, etc.)

Financial Guaranty

Line 10

A surety bond, insurance policy, or when issued by an insurer, an indemnity contract and any guaranty similar to the foregoing types, under which loss is payable upon proof of occurrence of financial loss to an insured claimant, obligee or indemnitee as a result of failure to perform a financial obligation (see Financial Guaranty Insurance Guideline (#1626)).

Fire & Allied Lines

Lines 1 + 2.1 + 2.2 + 2.3 + 12

Fire, Allied Lines, Multi-Peril Crop, Federal Flood, Private Crop, Private Flood and Earthquake (see further descriptions of each under Fire & Allied Lines).

Homeowners Multiperil

Line 3

A package policy combining broad property coverage for the personal property and/or structure with broad personal liability coverage. Coverage applicable to the dwelling, appurtenant structures, unscheduled personal property and additional living expense are typical. Includes mobile homes at a fixed location. (Alternative Workers’ Compensation, Employers’ Liability and Standard Workers’ Compensation).

Inland Marine

Line 9

Coverage for property that may be in transit, held by a bailee, at a fixed location, a movable good that is often at different locations (e.g., off-road construction equipment) or scheduled property (e.g., Homeowners Personal Property Floater), including items such as live animals, property with antique or collector’s value, etc. This line also includes instrumentalities of transportation and communication, such as bridges, tunnels, piers, wharves, docks, pipelines, power and phone lines, and radio and television towers. (Animal Mortality, EDP Policies, Pet Insurance Plans, Communication Equipment, Event Cancellation, Travel Coverage, Vehicle Excess Waiver, Boatowners, Other Commercial Inland Marine, Other Personal Marine and Cash and Cash in Transit Insurance).

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Medical Professional Liability

Line 11

Insurance coverage protecting a licensed health care provider or health care facility against legal liability resulting from the death or injury of any person due to the insured’s misconduct, negligence, or incompetence in rendering professional services. Medical Professional Liability is also known as Medical Malpractice.

Mortgage Guaranty

Line 6

Insurance that indemnifies a lender from loss if a borrower fails to meet required mortgage payments.

Ocean Marine

Line 8

Coverage for ocean and inland water transportation exposures; goods or cargoes; ships or hulls; earnings; and liability.

Other Liability (Claims-made)

Line 17.2

Same as 17.1 but on a Claims-Made Basis. These policies cover insured events that are reported (as defined in the policy) within the effective dates of the policy, subject to retroactive dates and extended reporting periods when applicable.

Other Liability (Occurrence)

Line 17.1

Occurrence Based: These policies cover insured events that occur within the effective dates of the policy, regardless of when they are reported to the reporting entity.Insurance coverage protecting the insured against legal liability resulting from negligence, carelessness or a failure to act, causing property damage or personal injury to others. Typically, coverages include construction and alteration liability; contingent liability; contractual liability; elevators and escalators liability; errors and omissions liability, environmental pollution liability; excess stop loss, excess over insured or selfinsured amounts and umbrella liability; liquor liability; personal injury liability; premises and operations liability; completed operations liability, nonmedical professional liability, etc. Also includes indemnification coverage provided to self-insured employers on an excess of loss basis (excess workers’ compensation). (Completed Operations, Construction Liability, Contingent Liability, Contractual Liability, Elevators, Error and Omissions, Environmental Pollution, Excess and Umbrella, Personal Liability, Premises and Operations, Excess Workers’ Compensation, Commercial General Liability, Comprehensive Personal Liability, Day Care Centers, Directors and Officers, Employee Benefit Liability, Employers’ Liability, Employment Practices, Fire Legal, Municipal Liability, Nuclear Energy, Veterinarian, Internet Liability and Cyber Liability). Excludes excess workers’ compensation.

Products Liability

Line 18

Insurance coverage protecting the manufacturer, distributor, seller or lessor of a product against legal liability resulting from a defective condition causing personal injury, or damage, to any individual or entity, associated with the use of the product. A three–party agreement where the insurer agrees to pay a second party (the obligee) or make complete an obligation in response to the default, acts or omissions of a third party (the principal).

Surety

Line 24

Coverage that protects against manufacturer’s defects past the normal warranty period and for repair after breakdown to return a product to its originally intended use.

Warranty

Line 30

Warranty insurance generally protects consumers from financial loss caused by the seller’s failure to rectify or compensate for defective or incomplete work and cost of parts and labor necessary to restore a product’s usefulness. Includes, but is not limited to, coverage for all obligations and liabilities incurred by a service contract provider, mechanical breakdown insurance and service contracts written by insurers. (Mechanical Breakdown and Service Contracts).

Workers Compensation

Line 16

Insurance that covers an employer’s liability for injuries, disability or death to persons in their employment, without regard to fault, as prescribed by state or Federal workers’ compensation laws and other statutes. Includes employer’s liability coverage against the common law liability for injuries to employees (as distinguished from the liability imposed by Workers’ Compensation Laws). Excludes excess workers’ compensation.

Fire & Allied Lines Breakout Fire Only

NAIC Line Numbers Line 1

Definition Coverage protecting the insured against the loss to real or personal property from damage caused by the peril of fire or lightning, including business interruption, loss of re

Allied Lines

Line 2.1

Extended coverage; glass; tornado, windstorm and hail; sprinkler and water damage; explosion, riot and civil commotion; rain; and damage from aircraft and vehicle.

Multi-Peril Crop

Line 2.2

Insurance protection that is subsidized or reinsured by the Federal Crop Insurance Corporation for protection against losses due to damage, decreases in revenues and/or gross margins from crop, livestock and other agricultural-related production from unfavorable weather conditions, drought, wind, frost, fire or lightning, flood, hail, insect infestation, disease or other yield-reducing conditions or perils.

Federal Flood

Line 2.3

Coverage provided by the Federal Insurance Administration (FIA) of the Federal Emergency Management Agency (FEMA) through insurers participating in the National Flood Insurance Program’s (NFIP) Write Your Own (WYO) program. Coverage is subject to the terms and conditions provided in the Financial Assistance/Subsidy Arrangement between the reporting entity and the FIA.

Private Crop

Line 2.4

Private market coverage for crop insurance and agricultural-related protection, such as hail and fire, and is not reinsured by the Federal Crop Ins

Private Flood

Line 2.5

Private market coverage (primary standalone, first dollar policies that cover the flood peril and excess flood) for flood insurance that is not offered through the National Flood Insurance Program. (Sewer/water backup coverage issued as an endorsement homeowners or commercial policy.)

Earthquake

Line 12

Property coverages for losses resulting from a sudden trembling or shaking of the earth, including that caused by volcanic eruption. Excluded are losses resulting from fire, explosion, flood or tidal wave following the covered event.

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Appendix: Insurer "Marketing Type" Insurers submit a “Gallery Report” to A.M. Best and that includes the insurer’s designation of their “Marketing Type.” The possible Marketing Type classifications are shown below. Insurers can also report combinations of the below for a policy-issuing insurer. The five-year graphs, where independent agent distributions are shown, are based on A.M. Best determinations of premiums and distribution as shown in their standard industry reports. Affinity Group Marketing Bank Broker Career Agent Direct Response Exclusive/Captive Agent General Agent Inactive Independent Agency Internet Managing General Agent Not Available Other Other Agency Other Direct Worksite Marketing This summary also uses a proprietary classification of policy-issuing insurers into various distribution styles. Those classifications are used to provide insurer lists by L.O.B. for Pure IA or Broker, MGA/Wholesale, IA-Mixed, Exclusive-Captive, Direct, and Other. Generally, when this summary’s classifications of IA, MGA and IA-mixed are added they are very similar to what A.M. Best designates as premiums through independent agents in their standard industry reports. To give a sense of those proprietary classifications, the top ten insurers for each classification in Louisiana is provided below. When reviewing the examples, be aware an individual insurer shown does not always carry the same designation as other insurers in its parent group or fleet.Also, some insurer groups use many more policyissuing insurers than others. When a group has many insurers, the individual insurers may be ranked lower than expected as premiums are spread-out. Finally, it is good to realize that any categorization of an insurer into a “Marketing Type” is an estimation. Classifications are useful but use of the data should be viewed in light of the fact any classification system is approximate.

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Top Ten Insurers Classified as IA or Broker Company Name Progressive Security Insurance Company Louisiana Workers’ Comp Corp Continental Casualty Company Imperial Fire and Casualty Insurance Co Zurich American Insurance Company Safeco Insurance Company of Oregon Scottsdale Insurance Company ACE American Insurance Company National Union Fire Ins Co Pittsburgh PA Progressive Property Insurance Company

AMB Group Name Progressive Insurance Group ... CNA Insurance Companies Allstate Insurance Group Zurich Insurance US PC Group Liberty Mutual Ins Cos Nationwide Group Chubb INA Group American International Group Progressive Insurance Group

Top Ten Insurers Classified as MGA/Wholesale Company Name GoAuto Insurance Company Wright National Flood Insurance Company United Property & Casualty Ins Co Houston Specialty Insurance Company Southern Fidelity Insurance Company Lighthouse Excalibur Insurance Company Old American Indemnity Company Maison Insurance Company FedNat Insurance Company U.S. Specialty Insurance Company

AMB Group Name ... ... United Insurance Group Skyward Specialty Insurance Group ... Lighthouse Insurance Group Old American Capital Group FedNat Insurance Group FedNat Insurance Group Tokio Marine US PC Group

Top Ten Insurers Classified as IA-Mixed Company Name Factory Mutual Insurance Company American Agri-Business Insurance Company LAMMICO Church Mutual Insurance Company, S.I. Automobile Club Inter-Insurance Exchange United Financial Casualty Company Permanent General Assurance Corporation Affiliated FM Insurance Company Silver Oak Casualty, Inc. American Interstate Insurance Company

AMB Group Name FM Global Group Sompo Holdings US Group LAMMICO Group Church Mutual Insurance Group Auto Club Enterprises Insurance Group Progressive Insurance Group American Family Insurance Group FM Global Group AMERISAFE Insurance Group AMERISAFE Insurance Group

Top Ten Insurers Classified as Exclusive-Captive Company Name State Farm Mutual Automobile Ins Co State Farm Fire and Casualty Company Allstate Property and Casualty Ins Co Louisiana Farm Bureau Casualty Ins Co Allstate Insurance Company Shelter Mutual Insurance Company ANPAC Louisiana Insurance Company Allstate Indemnity Company Metropolitan Property & Casualty Ins Co Liberty Insurance Underwriters, Inc.

AMB Group Name State Farm Group State Farm Group Allstate Insurance Group Southern Farm Bureau Casualty Group Allstate Insurance Group Shelter Insurance Companies American National Prop & Cas Group Allstate Insurance Group Farmers Insurance Group Liberty Mutual Ins Cos

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Top Ten Insurers Classified as Direct Company Name GEICO Casualty Company Progressive Paloverde Insurance Company United Services Automobile Association Louisiana Farm Bureau Mutual Ins Co USAA General Indemnity Company USAA Casualty Insurance Company Liberty Personal Insurance Company Liberty Mutual Fire Insurance Company Garrison Property and Casualty Ins Co GEICO General Insurance Company

AMB Group Name Berkshire Hathaway Ins Grp Progressive Insurance Group USAA Group ... USAA Group USAA Group Liberty Mutual Ins Cos Liberty Mutual Ins Cos USAA Group Berkshire Hathaway Ins Grp

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P&C Insurance Industry Analysis Provided by: Real Insurance Solutions Consulting, LLC Paul A. Buse, Principal www.realinsurancesc.com 301-842-7472

P&C Insurance Industry Summary Provided by: Independent Insurance Agents & Brokers of Louisiana Ben Albright, Vice President of Strategic Initiatives www.IIABL.com 225-819-8007

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