Louisiana Marketplace Report

INDEPENDENT INSURANCE AGENTS & BROKERS OF LOUISIANA

LOUISIANA MARKETPLACE REPORT SEPTEMBER 20, 2020 | 3RD QUARTER

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 2019, so it will not show the effects of the COVID pandemic or of the multiple storm systems that hit Louisiana in 2020.

Louisiana Marketplace Report

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LOUISIANA TOTAL PREMIUMS 2019 Louisiana Direct Written Premium

Louisiana accounts for about 1.8% of all U.S. P&C premiums or a total of $12.4 billion in direct written premiums.

That is proportionately higher than the national average.

With approximately 4.6 million persons in Louisiana versus the 328 million persons in the U.S., P&C premiums person in Louisiana are $2,664 and the U.S. just over $2,100.

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

Louisiana Marketplace Report

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BOOK-SHARE CHARTS The following series of pie charts displays the total written premiums broken down according to Line of Business (LOB) as a percentage share of the market.

These graphs allow us to compare the national data to Louisiana data and gives us a comparison between the Independent Agent data and the complete market data.

Both nationally and in Louisiana, Independent Agents write proportionally more Commercial Lines business. This is borne out later in this report by market penetration data.

Louisiana agents write significantly more Fire & Allied Lines premium than the national average. This is due to our significantly higher wind and flood exposures than many states.

Other Liability (Claims-made) 3%

All Other LOBs 8%

Inland Marine 5%

All Private 21%

Commercial Multi-Peril 6%

Other Liability (Occurrence 10%

Fire & Allied Lines 14%

All Commercial Auto 10% Workers' Compensation 11%

Homeowners Multi-Peril 12%

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

2019 Louisiana Independent Agent Premium Total = $6,615,830,000

Louisiana Marketplace Report

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2019 Louisiana Total Premium Total = $12,383,721,000 Other Liabilities (Claims-made) 2% Inland Marine 4%

All Other LOBs 6%

Commercial Multi-Peril 4% Other Liability (Occurrence) 6%

All Private Passenger Auto 39%

All Commercial Auto 7% Workers' Compensation 7% Homeowners Multi-Peril 16%

Fire & Allied Lines 9%

2019 United States Independent Agent Premium Total = $398,760,925,000 Inland Marine 5% Other Liability (Claims-made) 6%

All Other LOBs 8%

All Private Passenger Auto 22%

Commercial Multi-Peril 8% Workers Compensation 12%

Fire & Allied Lines 9%

2019 United States Total Premium Total = $694,532,493,000 Inland Marine 4% Other Liability (Claims-made) 4% Commercial Multi-Peril 6%

All Other LOBs 7%

All Private Passenger Auto 36%

Fire & Allied Lines 7% All Commercial Auto 6% Other Liability (Occurrence) 7% Homeowners Multi-Peril 15%

Workers Compensation 8%

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

All Commercial Auto Homeowners Multi-Peril 9% 11% Other Liability (Occurrence) 10%

Louisiana Marketplace Report

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IA PENETRATION ALL LINES OF BUSINESS This graph shows what percentage of the

Personal Lines have long been more hotly

total written premiums in Louisiana are

contested by Direct Writers and Captive

written through Independent Agents for

Agents (State Farm, USAA, etc.) because of

each line of business.

their comparably simpler underwriting and ease of doing business.

As noted, Independent Agents enjoy massive market share on Commercial

Some industry analysts have predicted that

Lines, but significantly lower market

increased investment in Direct to Consumer

share for personal lines.

technologies will increase competition on Commercial Lines in the future, but that

This is consistent with national data for

trend has not impacted Independent market

independent agent market share.

share to date.

Louisiana 2019 Independent Agent Penetration by LOB 100% 90% 2015 2016 2017

90% 80%

79%

75%

85% 77% 71%

2018 2019

50% 40% 28%

25%

Al lie H om d Li eo ne w s ne rs M ul W tior Pe ke ril rs 'C om pe ns at Al io lC n om m O er th ci er al Li Au ab to ili ty (O cc ur Co re m nc m e) 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

Al lP riv at e

Pa ss en ge r

Au to

0%

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

Louisiana Marketplace Report

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LOUISIANA MAJOR LINES OF BUSINESS ("LOB") The following section goes through each Line

Independent Agent Insurers – this refers

of Business to examine the state of the

to the individual companies that list

market.

Independent Agent as their primary distribution model on their regulatory

Each LOB will display: Total Written Premium

filings.

In some cases, the company may

Broken out by Independent Agent

distribute through Independent

written premium versus all other

Agents directly, while some may

premium.

operate through wholesalers.

Average Loss Ratio

In some instances of a company with

Each company is different, but a good

multiple distribution channels, they

rule of thumb is that below 60% loss

may not appear in the list because

ratio is acceptable profit margin for

they did not file as “primarily

the company.

distributed” by Independent Agents

Note that this is a pure loss ratio

Surplus Lines Insurers – lists the top

calculation, it does not account for

Excess and Surplus carriers in the given

any of the company's expenses other

line.

than losses.

As mentioned in the introduction, this

Top companies writing that line of

will not include most Surplus carriers

business by written premium

that are NOT domiciled within the

Top Insurer Groups - This refers to

United States, as they are not

the parent company. For instance,

required to make the regulatory

Berkshire Hathaway Insurance Group

reports on which this dataset is based.

has multiple companies operating in Louisiana including: GUARD, National

Note that the commissions paid is listed as

Indemnity, and GEICO. This list

the gross commissions paid by the company.

displays the sum of ALL of those

if a wholesaler is involved in the distribution

companies.

model, it includes their commission as well as the independent agent commission.

Additional details on what falls into each LOB can be found in the appendix.

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TTL Groups I+II (All Typical Lines Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$20,000

100%

$15,000

75%

$10,000

50%

$5,000

25%

$0

0%

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019) All Premium Trend 3.4%

IA Trend 4.0%

5 yr. Loss Ratio 61%

D. Surplus Lines / ALL DPW 9.3%

Louisiana IA Ave. Penetration: 52.2%

Insurer Group State Farm Group (G) Progressive Insurance Group (G) Allstate Insurance Group (G) Berkshire Hathaway Insurance Group (G) Liberty Mutual Insurance Companies (G)

Direct Premium-This LOB $2,092,519,000 $1,019,108,000 $821,140,000 $690,966,000 $541,454,000

2019 Loss Ratio 54% 58% 50% 81% 59%

Direct Premiums-All LOBs $2,092,519,000 $1,019,108,000 $821,140,000 $690,966,000 $541,454,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Progressive Security Insurance Company Louisiana Workers' Compensation Corp Continental Casualty Company Imperial Fire and Casualty Insurance Co Safeco Insurance Company of Oregon Zurich American Insurance Company Scottsale Insurance Company ACE American Insurance Company Travelers Property Casualty Co of Amer Foremost Inurance Co Grand Rapids, MI

Direct Premium-This LOB $564,456,000 $213,703,000 $161,884,000 $144,793,000 $140,270,000 $122,319,000 $102,725,000 $82,893,000 $80,038,000 $72,964,000

Commission Paid 10.6% 10.3% 13.7% 13.0% 12.8% 7.3% 22.9% 2.9% 13.8% 13.4%

Insurer Group ("..." is No Group) Progressive Insurance Group ...

CNA Insurance Companies National General Companies Liberty Mutual Insurance Companies Zurich Insurance US PC Group Nationwide Group Chubb INA Group Travelers Group Farmers Insurance Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Scottsdale Insurance Company Houston Specialty Insurance Company GeoVera Specialty Insurance Company Lexington Insurance Company Starr Surplus Lines Insurance Company

Direct Premium-This LOB $102,725,000 $71,485,000 $59,825,000 $47,852,000 $37,054,000

Commission Paid 22.9% 22.9% 17.3% 17.2% 12.8%

Insurer Group ("..." is No Group) Nationwide Group Skyward Specialty Insurance Group GeoVera U.S. Insurance Group American International Group Staff International Group

2016 was the only year with a challenging average loss ratio. This was driven primarily by massive flooding in Baton Rouge, Lafayette and the surrounding areas. The CAT losses from that storm system are reflected in all lines of business with a property damage component to some extent.

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

Louisiana Marketplace Report

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All Private Passenger Auto Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$7,500

100%

75%

$5,000

50% $2,500

$0

25%

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 25.4% All Premium Trend 6.4%

IA Trend 11.8%

5 yr. Loss Ratio 72%

D. Surplus Lines / ALL DPW 0.0%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group State Farm Group (G) Progressive Insurance Group (G) Berkshire Hathaway Insurance Group (G) Allstate Insurance Group (G) USAA Group (G)

Direct Premium-This LOB $1,442,013,000 $803,098,000 $571,942,000 $540,138,000 $294,072,000

2019 Loss Ratio 59% 59% 72% 54% 82%

Direct Premiums-All LOBs $2,092,519,000 $1,019,108,000 $690,966,000 $821,140,000 $447,327,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name 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 Republic Fire & Casualty Insurance Co Foremost Insurance Co Grand Rapids, MI Privilege Underwriters Reciprocal Exch Essentia Insurance Company

Direct Premium-This LOB $547,153,000 $100,830,000 $88,697,000 $68,535,000 $29,201,000 $20,001,000 $8,944,000 $7,083,000 $6,378,000 $5,481,000

Commission Paid 10.6% 9.5% 12.1% 11.7% 11.4% 0.0% 30.6% 11.3% 15.7% 42.0%

Insurer Group ("..." is No Group) Progressive Insurance Group National General Companies Liberty Mutual Insurance Companies Safeway Insurance Group Kemper PC Companies Hartford Insurance Group AmTrust Group Farmers Insurance Group Tokio Marine US PC Group Markel Corporation Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name United National Insurance Company N/A N/A N/A N/A

Direct Premium-This LOB $905,000 N/A N/A N/A N/A

Commission Paid 23.1% N/A N/A N/A N/A

Insurer Group ("..." is No Group) Global Indemnity Group N/A N/A N/A N/A

Private Passenger Auto has not been particularly profitable for carriers in any of the years shown, but the consistent premium increases have led the carriers closer to a profitable state over time.

State Farm accounts for nearly 30% of the total written premium in this line.

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

Louisiana Marketplace Report

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Homeowners Multi-Peril Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$3,000

50% 40%

$2,000

30% 20%

$1,000

10% $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 37.2% All Premium Trend 1.4%

IA Trend 5.2%

5 yr. Loss Ratio 36%

D. Surplus Lines / ALL DPW 4.5%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group State Farm Group (G) Allstate Insurance Group (G) USAA Group (G) Liberty Mutual Insurance Companies (G) Louisiana Farm Bureau Mutual Ins Co

Direct Premium-This LOB $509,078,000 $212,629,000 $121,149,000 $109,098,000 $92,586,000

2019 Loss Ratio 43% 37% 56% 41% 50%

Direct Premiums-All LOBs $2,092,519,000 $821,140,000 $447,327,000 %541,454,000 $141,253,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Progressive Security Insurance Company Safeco Insurance Company of Oregon Allstate Vehicle and Property Ins Co Lighthouse Property Insurance Corp Foremost Insurance Co Grand Rapids, MI American Bankers Insurance Co of Florida Privilege Underwriters Reciprocal Exch Republic Fire & Casualty Insurance Co Great Northern Insurance Company ASI Lloyds

Direct Premium-This LOB $59,849,000 $42,559,000 $39,632,000 $32,394,000 $31,546,000 $27,744,000 $21,583,000 $16,913,000 $16,112,000 $15,439,000

Commission Paid 14.4% 12.6% 10.4% 27.8% 13.7% 24.8% 15.6% 30.7% 16.6% 16.0%

Insurer Group ("..." is No Group) Progressive Insurance Group Liberty Mutual Insurance Companies Allstate Insurance Group Lighthouse Insurance Group Farmers Insurance Group Assurant P&C Group Tokio Marine US PC Group AmTrust Group Chubb INA Group Progressive Insurance Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name GeoVera Specialty Insurance Company QBE Specialty Insurance Company Dover Bay Specialty Insurance Company North Light Specialty Insurance Company Scottsdale Insurance Company

Direct Premium-This LOB $35,607,000 $12,120,000 $11,702,000 $8,414,000 $6,449,000

Commission Paid 17.8% 26.0% 7.0% 20.4% 23.5%

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

Insurer Group ("..." is No Group) GeoVera U.S. Insurance Group QBE North America Insurance Group State Farm Group Allstate Insurance Group Nationwide Group

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Fire & Allied Lines Louisiana 2019 Written Premium $2,500

Louisiana 2019 Loss Ratio 250%

$2,000

200%

$1,500

150%

$1,000

100%

$500

50%

$0

0%

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 79.1%

All Premium Trend 1.1%

IA Trend 1.1%

5 yr. Loss Ratio 72%

D. Surplus Lines / ALL DPW 25.8%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group Wright National Flood Insurance Company FM Global Group (G) Assurant P&C Group (G) Louisiana Citizens Property Ins Corp Zurich Insurance US PC Group (G)

Direct Premium-This LOB $86,388,000 $86,388,000 $58,733,000 $54,923,000 $48,617,000

2019 Loss Ratio 32% 44% 34% 25% 31%

Direct Premiums-All LOBs $86,388,000 $92,295,000 $109,305,000 $61,552,000 $205,864,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Starr Surplus Lines Insurance Company Foremost Insurance Co Grand Rapids, MI American Bankers Insurance Co of Florida Zurich American Insurance Company Imperial Fire and Casualty Insurance Co Lighthouse Property Insurance Corp QBE Specialty Insurance Company Scottsdale Insurance Company Westchester Surplus Lines Insurance Co ACE Property and Casualty Insurance Co

Direct Premium-This LOB $34,756,000 $29,937,000 $29,503,000 $26,010,000 $25,043,000 $18,840,000 $17,997,000 $17,379,000 $16,620,000 $15,594,000

Commission Paid 12.7% 13.4% 20.5% 5.6% 25.4% 27.9% 28.4% 23.6% 14.6% 2.8%

Insurer Group ("..." is No Group) Starr International Group Farmers Insurance Group Assurant P&C Group Zurich Insurance US PC Group National General Copanies Lighthouse Insurance Group QBE North America Insurance Group Nationwide Group Chubb INA Group Chubb INA Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Starr Surplus Lines Insurance Company Lexington Insurance Company GeoVera Specialty Insurance Company QBE Specialty Insurance Company Scottsdale Insurance Company

Direct Premium-This LOB $34,756,000 $27,771,000 $24,218,000 $17,997,000 $17,379,000

Commission Paid 12.7% 19.7% 16.6% 28.4% 23.6%

Insurer Group ("..." is No Group) Starr International Group American International Group GeoVera U.S. Insurance Group QBE North America Insurance Group Nationwide Group

Fire and Allied line is broken into its components later in the report for additional detail.

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

Louisiana Marketplace Report

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Workers' Compensation Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$2,000

75%

$1,500

50%

$1,000 25%

$500 $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 89.8%

All Premium Trend -0.2%

IA Trend 0.1%

5 yr. Loss Ratio 56%

D. Surplus Lines / ALL DPW 0.0%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group Louisiana Workers' Compensation Corp LUBA Insurance Group (G) Zurich Insurance US PC Group (G) Great American P&C Insurance Group (G) Travelers Group (G)

Direct Premium-This LOB $213,703,000 $65,882,000 $50,973,000 $46,926,000 $46,657,000

2019 Loss Ratio -100% 56% 101% 30% 86%

Direct Premiums-All LOBs $213,703,000 $65,882,000 $205,864,000 $97,421,000 $301,901,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Louisiana Workers' Compensation 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 Indemnity Insurance Co of North America American Zurich Insurance Company Technology Insurance Company, Inc.

Direct Premium-This LOB $213,703,000 $57,838,000 $33,386,000 $28,797,000 $18,722,000 $17,397,000 $15,332,000 $11,667,000 $10,710,000 $9,670,000

Commission Paid 10.3% 12.6% 3.0% 10.6% 1.0% 2.7% 12.5% 0.0% 1.8% 12.7%

Insurer Group ("..." is No Group) ...

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

Chubb INA Group Zurich Insurance US PC Group AmTrust Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Lexington Insurance Company Acceptance Indemnity Insurance Company N/A N/A N/A

Direct Premium-This LOB $6,000 $0 N/A N/A N/A

Commission Paid 0.0% N/A N/A N/A N/A

Insurer Group ("..." is No Group) American International Group IAT Insurance Group N/A N/A N/A

Note that loss ratios on this line are often affected by dividends (especially evident with LWCC).

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

Louisiana Marketplace Report

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All Commercial Auto Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$1,500

100%

75%

$1,000

50% $500

$0

25%

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 80.1%

All Premium Trend 6.1%

IA Trend 6.2%

5 yr. Loss Ratio 88%

D. Surplus Lines / ALL DPW 62.2%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group Progressive Insurance Group (G) Travelers Group (G) HIIG Group (G) Berkshire Hathaway Insurance Group (G) Clear Blue Insurance Group (G)

Direct Premium-This LOB $108,786,000 $69,093,000 $65,942,000 $47,204,000 $42,571,000

2019 Loss Ratio 68% 104% 51% 97% 54%

Direct Premiums-All LOBs $1,019,108,000 $301,901,000 $81,196,000 $690,966,000 N/A

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Zurich American Insurance Company Travelers Property Casualty Co of Amer AmGUARD Insurance Company Starr Indemnity & Liability Company National Fire & Marine Insurance Co Scottsdale Insurance Company Travelers Indemnity Co of Connecticut Travelers Indemnity Company Phoenix Insurance Company Atlantic Specialty Insurance Company

Direct Premium-This LOB $31,572,000 $14,924,000 $14,251,000 $13,583,000 $12,946,000 $12,029,000 $11,230,000 $10,934,000 $10,127,000 $10,092,000

Commission Paid 4.3% 12.2% 18.4% 6.1% 17.0% 19.9% 14.0% 17.0% 16.7% 14.4%

Insurer Group ("..." is No Group) Zurich Insurance US PC Group Travelers Group Berkshire Hathaway Insurance Group Starr International Group Berkshire Hathaway Insurance Group Nationwide Group Travelers Group Travelers Group Travelers Group Intact US Insurance Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Houston Specialty Insurance Company Clear Blue Specialty Insurance Company National Fire & Marine Insurance Co Scottsdale Insurance Company Prime Insurance Company

Direct Premium-This LOB $59,703,000 $26,489,000 $12,946,000 $12,029,000 $7,005,000

Commission Paid 22.0% 21.1% 17.0% 19.9% 21.6%

Insurer Group ("..." is No Group) Skyward Specialty Insurance Group Clear Blue Insurance Group Berkshire Hathaway Insurance Group Nationwide Group Prime Insurance Group

Several significant players are erroneously not included in the IA insurers list including: Progressive, Houston Specialty (Riscom), and Clear Blue (QEO). This is due to the way the insurer reported their distribution to A.M. Best.

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

Louisiana Marketplace Report

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Other Liability (Occurrence) Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$1,500

75%

$1,000

50%

$500

25%

$0

0%

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 85.3%

All Premium Trend 3.0%

IA Trend 2.8%

5 yr. Loss Ratio 60%

D. Surplus Lines / ALL DPW 40.8%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group Chubb INA Group (G) Travelers Group (G) Fairfax Financial (USA) Group (G) W.R. Berkley Insurance Group (G) Nationwide Group (G)

Direct Premium-This LOB $52,244,000 $47,316,000 $40,152,000 $38,875,000 $37,005,000

2019 Loss Ratio 87% 77% 41% 48% 59%

Direct Premiums-All LOBs $260,588,000 $301,901,000 $83,092,000 $94,333,000 $132,576,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Gray Insurance Company Scottsdale Insurance Company ACE American Insurance Company Travelers Property Casualty Co of Amer Zurich American Insurance Company Indian Harbor Insurance Company Westchester Surplus Lines Insurance Co Starr Indemnity & Liability Company Berkley National Insurance Company St. Paul Fire and marine Insurance Co

Direct Premium-This LOB $31,683,000 $29,148,000 $23,527,000 $19,083,000 $14,349,000 $12,350,000 $12,028,000 $9,134,000 $8,158,000 $7,474,000

Commission Paid 18.5% 24.5% 1.8% 13.45 3.9% 17.4% 16.1% 9.9% 14.4% 15.0%

Insurer Group ("..." is No Group) Gray Insurance Group Nationwide Group Chubb INA Group Travelers Group Zurich Insurance US PC Group XL Reinsurance America Group Chubb INA Group Starr International Group W.R. Berkley Insurance Group Travelers Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Scottsdale Insurance Company Crum & Forster Specialty Insurance Co Nautilus Insurance Company Evanston Insurance Company Indian Harbor Insurance Company

Direct Premium-This LOB $29,148,000 $15,707,000 $14,178,000 $13,433,000 $12,350,000

Commission Paid 24.5% 19.6% 22.1% 20.7% 17.4%

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

Insurer Group ("..." is No Group) Nationwide Group Fairfax Financial (USA) Group W.R. Berkley Insurance Group Markel Corporation Group XL Reinsurance America Group

Louisiana Marketplace Report

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Commercial Multi-Peril Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$1,000

75%

$750

50%

$500 25%

$250 $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 71.0%

All Premium Trend -0.9%

IA Trend -1.2%

5 yr. Loss Ratio 43%

D. Surplus Lines / ALL DPW 22.0%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group State Farm Group (G) Liberty Mutual Insurance Companies (G) Travelers Group (G) Nationwide Group (G) American International Group (G)

Direct Premium-This LOB $59,655,000 $36,360,000 $32,569,000 $32,157,000 $28,943,000

2019 Loss Ratio 38% 46% 34% 48% 40%

Direct Premiums-All LOBs $2,092,519,000 $541,454,000 $301,901,000 $132,576,000 $228,485,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Scottsdale Insurance Company Ohio Security Insurance Company ACE American Insurance Company AmGUARD Insurance Company GuideOne Mutual Insurance Company GuideOne Specialty Mutual Insurance Co Steadfast Insurance Company AGCS Marine Insurance Company Travelers Property Casualty Co of Amer Travelers Indemnity Co of Connecticut

Direct Premium-This LOB $29,349,000 $21,022,000 $19,464,000 $12,316,000 $11,318,000 $9,654,000 $9,328,000 $8,292,000 $7,353,000 $7,000,000

Commission Paid 22.9% 15.3% 15.0% 20.0% 16.7% 16.4% 27.9% 16.6% 17.3% 18.0%

Insurer Group ("..." is No Group) Nationwide Group Liberty Mutual Insurance Companies Chubb INA Group Berkshire Hathaway Insurance Group GuideOne Insurance Companies GuideOne Insurance Companies Zurich Insurance US PC Group Allianz US PC Insurance Companies Travelers Group Travelers Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Scottsdale Insurance Company Steadfast Insurance Company Independent Specialty Insurance Company Interstate Fire & Casualty Company United Specialty Insurance Company

Direct Premium-This LOB $29,349,000 $9,328,000 $9,263,000 $6,230,000 $4,619,000

Commission Paid 22.9% 27.9% 26.9% 26.1% 19.7%

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

Insurer Group ("..." is No Group) Nationwide Group Zurich Insurance US PC Group Markel Corporation Group Allianz US PC Insurance Companies Markel Corporation Group

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Inland Marine Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$1,000

75%

$750

50%

$500 25%

$250 $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 75.3%

All Premium Trend 2.3%

IA Trend 3.6%

5 yr. Loss Ratio 50%

D. Surplus Lines / ALL DPW 6.2%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group CNA Insurance Companies (G) Liberty Mutual Insurance Companies (G) Fortegra P&C Group (G) State Farm Group (G) Allianz US PC Insurance Companies (G)

Direct Premium-This LOB $107,877,000 $49,846,000 $36,862,000 $21,614,000 $19,147,000

2019 Loss Ratio 60% 65% 3% 38% 31%

Direct Premiums-All LOBs $238,615,000 $541,454,000 N/A $2,092,519,000 $69,419,000

Top Independent Agent Policy-Issuing Insurers (2019)

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

Direct Premium-This LOB $107,504,000 $36,862,000 $13,893,000 $10,862,000 $8,572,000 $7,593,000 $7,348,000 $7,276,000 $6,106,000 $5,839,000

Commission Paid 12.4% 82.2% 17.5% 14.4% 14.2% 20.9% 9.8% 17.6% 3.5% 16.0%

Insurer Group ("..." is No Group) CNA Insurance Companies Fortegra P&C Group Travelers Group Zurich Insurance US PC Group Allianz US PC Insurance Companies Assurant P&C Group Progressive Insurance Group XL Reinsurance America Group Jewelers Mutual Insurance Group Starr International Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Lexington Insurance Company Houston Specialty Insurance Company Indian Harbor Insurance Company Voyager Indemnity Insurance Company Princeton Excess & Surplus Lines Ins Co

Direct Premium-This LOB $7,088,000 $3,310,000 $2,533,000 $2,236,000 $1,794,000

Commission Paid 14.7% 21.3% 8.6% 19.9% 5.8%

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

Insurer Group ("..." is No Group) American International Group Skyward Specialty Insurance Group XL Reinsurance America Group Assurant P&C Group Munich-American Holding Corp Companies

Louisiana Marketplace Report

Page 17

Other Liability (Claims-made) Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$500

60%

$400 40%

$300 $200

20%

$100 $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 90.5%

All Premium Trend 3.9%

IA Trend 3.7%

5 yr. Loss Ratio 48%

D. Surplus Lines / ALL DPW 35.4%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group CNA Insurance Companies (G) Travelers Group (G) Chubb INA Group (G) XL Reinsurance America Group (G) American International Group (G)

Direct Premium-This LOB $33,357,000 $26,161,000 $16,290,000 $16,259,000 $13,608,000

2019 Loss Ratio 38% 34% -19% 54% 34%

Direct Premiums-All LOBs $238,615,000 $301,901,000 $260,588,000 $99,155,000 $228,485,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Continental Casualty Company Travelers Casualty and Surety Co of Amer Federal Insurance Company XL Specialty Insurance Company Indian Harbor Insurance Company Ironshore Specialty Insurance Co Scottsdale Insurance Company Columbia Casualty Company Illinois Union Insurance Company ACE American Insurance Company

Direct Premium-This LOB $29,789,000 $24,074,000 $8,347,000 $8,300,000 $7,610,000 $6,044,000 $4,418,000 $3,402,000 $2,726,000 $2,678,000

Commission Paid 17.8% 16.1% 16.4% 14.3% 15.3% 11.5% 30.6% 14.7% 12.8% 14.3%

Insurer Group ("..." is No Group) CNA Insurance Companies Travelers Group Chubb INA Group XL Reinsurance America Group XL Reinsurance America Group Liberty Mutual Insurance Companies Nationwide Group CNA Insurance Companies Chubb INA Group Chubb INA Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Indian Harbor Insurance Company Ironshore Specialty Insurance Co AIG Specialty Insurance Company Scottsdale Insurance Company Columbia Casualty Company

Direct Premium-This LOB $7,610,000 $6,044,000 $5,159,000 $4,418,000 $3,402,000

Commission Paid 15.3% 11.5% 12.9% 30.6% 14.7%

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

Insurer Group ("..." is No Group) XL Reinsurance America Group Liberty Mutual Insurance Companies American International Group Nationwide Group CNA Insurance Companies

Louisiana Marketplace Report

Page 18

Fire and Allied Lines Breakout Louisiana Fire and Allied Lines Component LOBs (Chart is Independent Agent Data) Fire Only Allied Lines Multi-Peril Crop

Fire & Allied Lines is a

Federal Flood

substantial portion of the Louisiana P&C insurance

Private Crop

marketplace, it makes up

Private Flood

a significantly larger

EarthquakeItem 7

percentage than in many $1 00 ,0 00 ,0 00 $2 00 ,0 00 ,0 00 $3 00 ,0 00 ,0 00 $4 00 ,0 00 ,0 00

$0

parts of the country.

As you would expect, in Louisiana, the premium is heavily concentrated in Fire, Allied Lines (which Louisiana Fire and Allied Lines Component LOBs Chart is Independent Agent Data)

Line of Business Fire Only Allied Lines Multi-Peril Crop Federal Flood Private Crop Private Flood Earthquake

Ind. Agent - DPW $307,171,000 $350,741,000 $82,601,000 $183,201,000 $4,644,000 $11,771,000 $3,947,000

All Distribution - DPW $373,424,000 $460,712,000 $82,906,000 $253,593,000 $4,651,000 $14,665,000 $5,572,000

Agent Distribution 82% 76% 100% 72% 100% 80% 71%

includes wind/hail coverage), and federal flood.

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

Louisiana Marketplace Report

Page 19

FIRE ONLY

Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$750

50% 40%

$500

30% 20%

$250

10% $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 81.6%

All Premium Trend 2.6%

IA Trend 2.9%

5 yr. Loss Ratio 36%

D. Surplus Lines / ALL DPW 37.6%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group Starr International Group (G) Southern Fidelity Insurance Company FM Global Group (G) American International Group (G) Farmers Insurance Group (G)

Direct Premium-This LOB $34,767,000 $20,449,000 $18,027,000 $16,560,000 $16,283,000

2019 Loss Ratio 32% 45% 77% 19% 72%

Direct Premiums-All LOBs $104,201,000 N/A $92,295,000 $228,485,000 $76,242,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Starr Surplus Lines Insurance Company Foremost Insurance Co Grand Rapids, MI Lighthouse Property Insurance Corp Zurich American Insurance Company Scottsdale Insurance Company Allianz Global Risks US Insurance Co Ironshore Specialty Insurance Co QBE Specialty Insurance Company Sompo America Insurance Company Indian Harbor Insurance Company

Direct Premium-This LOB $34,756,000 $16,283,000 $12,422,000 $8,919,000 $7,128,000 $5,862,000 $5,736,000 $5,702,000 $5,158,000 $4,971,000

Commission Paid 12.7% 13.3% 27.9% 5.4% 24.9% 1.2% 7.4% 28.8% 1.3% 28.0%

Insurer Group ("..." is No Group) Starr International Group Farmers Insurance Group Lighthouse Insurance Group Zurich Insurance US PC Group Nationwide Group Allianz US PC Insurance Companies Liberty Mutual Insurance Companies QBE North America Insurance Group Sompo Holdings US Group XL Reinsurance America Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Starr Surplus Lines Insurance Company General Security Indemnity Co of Arizona Lexington Insurance Company Arch Specialty Insurance Company Scottsdale Insurance Company

Direct Premium-This LOB $34,756,000 $13,815,000 $13,292,000 $8,887,000 $7,128,000

Commission Paid 12.7% 15.7% 16.0% 16.6% 24.9%

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

Insurer Group ("..." is No Group) Starr International Group SCOR US Group American International Group Arch Insurance Group Nationwide Group

Louisiana Marketplace Report

Page 20

ALLIED LINES Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$1,000

75%

$750

50%

$500 25%

$250 $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 79.4%

All Premium Trend -0.3%

IA Trend -1.4%

5 yr. Loss Ratio 33%

D. Surplus Lines / ALL DPW 34.7%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group Louisiana Citizens Property Ins Corp FM Global Group (G) Zurich Insurance US PC Group (G) GeoVera U.S. Insurance Group (G) Assurant P&C Group (G)

Direct Premium-This LOB $46,861,000 $41,397,000 $29,271,000 $24,218,000 $17,989,000

2019 Loss Ratio 21% 29% 35% 19% 38%

Direct Premiums-All LOBs $61,552,000 $92,295,000 $205,864,000 $59,861,000 $109,305,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Zurich American Insurance Company Westchester Surplus Lines Insurance Co QBE Specialty Insurance Company Foremost Insurance Co Grand Rapids, MI Scottsdale Insurance Company American Guarantee and Liability Ins Co National Fire & Marine Insurance Co Lighthouse Property Insurance Corp XL Insurance America, Inc. Ocean Harbor Casualty Insurance Company

Direct Premium-This LOB $15,811,000 $13,001,000 $12,266,000 $12,204,000 $10,251,000 $9,675,000 $7,892,000 $6,418,000 $6,138,000 $5,717,000

Commission Paid 5.5% 14.3% 28.3% 13.2% 22.6% 9.6% 9.6% 27.9% 5.2% 25.0%

Insurer Group ("..." is No Group) Zurich Insurance US PC Group Chubb INA Group QBE North America Insurance Group Farmers Insurance Group Nationwide Group Zurich Insurance US PC Group Berkshire Hathaway Insurance Group Lighthouse Insurance Group XL Reinsurance America Group Ocean Harbor Insurance Companies

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name GeoVera Specialty Insurance Company Lexington Insurance Company Westchester Surplus Lines Insurance Co QBE Specialty Insurance Company Scottsdale Insurance Company

Direct Premium-This LOB $24,218,000 $13,304,000 $13,001,000 $12,266,000 $10,251,000

Commission Paid 16.6% 23.4% 14.3% 28.3% 22.6%

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

Insurer Group ("..." is No Group) GeoVera U.S. Insurance Group American International Group Chubb INA Group QBE North America Insurance Group Nationwide Group

Louisiana Marketplace Report

Page 21

MULTI-PERIL CROP Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$100

200%

$75

150%

$50

100%

$25

50%

$0

0%

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 99.7%

All Premium Trend 1.6%

IA Trend 1.5%

5 yr. Loss Ratio 110%

D. Surplus Lines / ALL DPW 0.0%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group CGB Insurance Company Chubb INA Group (G) QBE North America Insurance Group (G) Sompo Holdings US Group (G) FMH Insurance Group (G)

Direct Premium-This LOB $42,010,000 $26,091,000 $5,568,000 $4,210,000 $1,674,000

2019 Loss Ratio 178% 150% 138% 168% 214%

Direct Premiums-All LOBs N/A $260,588,000 $51,121,000 N/A N/A

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name ACE Property and Casualty Insurance Co Agri General Insurance Company NAU Country Insurance Company Great American Insurance Company Farmers Mutual Hail Insurance Co of Iowa Technology Insurance Company, Inc. N/A N/A N/A N/A Insurer Name N/A N/A N/A N/A N/A

Direct Premium-This LOB $15,051,000 $11,039,000 $5,568,000 $1,178,000 $576,000 $327,000 N/A N/A N/A N/A

Commission Paid 1.7% 1.7% 15.5% 15.8% 25.3% -0.3% N/A N/A N/A N/A

Insurer Group ("..." is No Group) Chubb INA Group Chubb INA Group QBE North America Insurance Group Great American P & C Insurance Group FMH Insurance Group AmTrust Group N/A N/A N/A N/A

Top Surplus Lines Policy-Issuing Insurers (2019) Direct Premium-This LOB N/A N/A N/A N/A N/A

Commission Paid N/A N/A N/A N/A N/A

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

Insurer Group ("..." is No Group) N/A N/A N/A N/A N/A

Louisiana Marketplace Report

Page 22

FEDERAL FLOOD Louisiana 2019 Written Premium $500

Louisiana 2019 Loss Ratio

1,000%

$400

750%

$300 500% $200 250%

$100 $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 70.1%

All Premium Trend -0.2%

IA Trend 1.0%

5 yr. Loss Ratio 181%

D. Surplus Lines / ALL DPW 0.1%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group Wright National Flood Insurance Company Allstate Insurance Group (G) Assurant P&C Group (G) National General Companies (G) Selective Insurance Group (G)

Direct Premium-This LOB $86,139,000 $35,550,000 $29,503,000 $21,511,000 $12,964,000

2019 Loss Ratio 32% 34% 36% 29% 35%

Direct Premiums-All LOBs $86,388,000 $821,140,000 $109,305,000 $155,282,000 N/A

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name American Bankers Insurance Co of Florida Imperial Fire and Casualty Insurance Co Selective Insurance Co of the Southeast ASI Lloyds Hartford Insurance Co of the Midwest Bankers Specialty Insurance Company Foremost Insurance Co Grand Rapids, MI Hartford Underwriters Insurance Company Privilege Underwriters Reciprocal Exch Westfield Insurance Company

Direct Premium-This LOB $29,503,000 $21,511,000 $12,964,000 $9,011,000 $7,803,000 $7,642,000 $1,451,000 $996,000 $220,000 $99,000

Commission Paid 20.5% 26.2% 21.0% 20.3% 19.4% 21.4% 16.0% 0.1% 14.5% 16.2%

Insurer Group ("..." is No Group) Assurant P&C Group National General Companies Selective Insurance Group Progressive Insurance Group Hartford Insurance Group Bankers Financial Group Farmers Insurance Group Hartford Insurance Group Tokio Marine US PC Group Westfield Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Trisura Specialty Insurance Company N/A N/A N/A N/A

Direct Premium-This LOB $132,000 N/A N/A N/A N/A

Commission Paid 24.2% N/A N/A N/A N/A

Insurer Group ("..." is No Group) Trisura US Insurance Group N/A N/A N/A N/A

This is an example of why flood was forced to become a federal program.

Even with 4 years of exceptional loss ratio, the average over the 5 years is still almost 200% because of the scale and concentration of flood events.

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

Louisiana Marketplace Report

Page 23

PRIVATE CROP Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$5

400%

$4

300%

$3 200% $2 100%

$1 $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

0%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 99.9%

All Premium Trend 25.2%

IA Trend 25.3%

5 yr. Loss Ratio 238%

D. Surplus Lines / ALL DPW 0.0%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group CGB Insurance Company Chubb INA Group (G) QBE North America Insurance Group (G) Sompo Holdings US Group (G) Zurich Insurance US PC Group (G)

Direct Premium-This LOB $2,724,000 $1,186,000 $560,000 $71,000 $64,000

2019 Loss Ratio 269% 144% 166% 141% 26%

Direct Premiums-All LOBs N/A $260,588,000 $51,121,000 N/A $205,864,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name Agri General Insurance Company NAU Country Insurance Company ACE Property and Casualty Insurance Co Technology Insurance Company, Inc. Great American Insurance Company Farmers Mutual Hail Insurance Co of Iowa N/A N/A N/A N/A Insurer Name N/A N/A N/A N/A N/A

Direct Premium-This LOB $643,000 $560,000 $543,000 $18,000 $14,000 $2,000 N/A N/A N/A N/A

Commission Paid 34.1% 17.1% 33.9% 5.6% 14.3% 0.0% N/A N/A N/A N/A

Insurer Group ("..." is No Group) Chubb INA Group QBE North America Insurance Group Chubb INA Group AmTrust Group Great American P & C Insurance Group FMH Insurance Group N/A N/A N/A N/A

Top Surplus Lines Policy-Issuing Insurers (2019) Direct Premium-This LOB N/A N/A N/A N/A N/A

Commission Paid N/A N/A N/A N/A N/A

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

Insurer Group ("..." is No Group) N/A N/A N/A N/A N/A

Louisiana Marketplace Report

Page 24

EARTHQUAKE Louisiana 2019 Written Premium

Louisiana 2019 Loss Ratio

$15

6% 4%

$10

2% 0%

$5

-2% $0

2015 2016 2017 2018 2019

Direct Written Premium - Independent Agency

-4%

Direct Written Premium - All Distriibution Types

2015 2016 2017 2018 2019

Louisiana IA Ave. Penetration: 70.2%

All Premium Trend -2.9%

IA Trend -1.9%

5 yr. Loss Ratio 1%

D. Surplus Lines / ALL DPW 55.6%

Top Insurer Groups or Non-Group Insurers: All Distribution Forms (2019)

Insurer Group State Farm Group (G) Sompo Holdings US Group (G) Liberty Mutual Insurance Companies (G) American International Group (G) Markel Corporation Group (G)

Direct Premium-This LOB $793,000 $670,000 $546,000 $540,000 $521,000

2019 Loss Ratio 0% -12% -1% 59% -4%

Direct Premiums-All LOBs $2,092,519,000 N/A $541,454,000 $228,485,000 $88,835,000

Top Independent Agent Policy-Issuing Insurers (2019)

Insurer Name XL Insurance America, Inc. Allianz Global Risks US Insurance Co Ironshore Specialty Insurance Co Westchester Surplus Lines Insurance Co Continental Casualty Company Zurich American Insurance Company American Guarantee and Liability Ins Co Illinois Union Insurance Company ACE American Insurance Company QBE Specialty Insurance Company

Direct Premium-This LOB $338,000 $277,000 $269,000 $171,000 $108,000 $98,000 $85,000 $57,000 $34,000 $29,000

Commission Paid 2.4% 0.7% 6.7% 12.3% 13.0% 9.2% 9.4% 15.8% 5.9% 27.6%

Insurer Group ("..." is No Group) XL Reinsurance America Group Allianz US PC Insurance Companies Liberty Mutual Insurance Companies Chubb INA Group CNA Insurance Companies Zurich Insurance US PC Group Zurich Insurance US PC Group Chubb INA Group Chubb INA Group QBE North America Insurance Group

Top Surplus Lines Policy-Issuing Insurers (2019)

Insurer Name Endurance American Specialty Ins Co Lexington Insurance Company Evanston Insurance Company Ironshore Specialty Insurance Co Arch Specialty Insurance Company

Direct Premium-This LOB $645,000 $522,000 $521,000 $269,000 $266,000

Commission Paid 9.0% 12.5% 16.5% 6.7% 16.5%

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

Insurer Group ("..." is No Group) Sompo Holdings US Group American International Group Markel Corporation Group Liberty Mutual Insurance Companies Arch Insurance Group

Louisiana Marketplace Report

Page 25

TABLE OF ALL LINES OF BUSINESS 2019 DPWIndependent Agents

2019 DPWAll Distribution

Independent Penetration

Loss Ratio

Aggregate Write-ins Aircraft (all perils) All Commercial Auto All Private Passenger Auto Boiler & Machinery Burglary & Theft Commercial Multi-Peril Credit Excess Workers' Comp Farmowners Multi-Peril Fidelity Financial Guaranty Fire & Allied Lines Homeowners Multi-Peril Inland Marine Medical Malpractice Mortgage Guaranty Ocean Marine Other Liability (Claims-made) Other Liability (Occurrence) Products Liability Surety Warranty Workers' Compensation

8,160,000 37,778,000 665,028,000 1,366,046,000 16,976,000 6,261,000 363,966,000 32,109,000 55,982,000 7,008,000 11,429,000 564,000 944,077,000 791,140,000 351,378,000 37,003,000 34,504,000 133,129,000 199,866,000 652,521,000 44,517,000 106,744,000 4,146,000 745,498,000

23,554,000 41,296,000 828,175,000 4,887,096,000 40,049,000 6,873,000 512,014,000 38,724,000 57,769,000 15,628,000 13,435,000 3,467,000 1,195,523,000 1,960,741,000 459,192,000 102,003,000 64,105,000 146,120,000 222,157,000 763,865,000 47,248,000 119,609,000 6,497,000 828,581,000

35% 91.5% 80.3% 28.0% 42.4% 91.1% 71.1% 82.9% 96.9% 44.8% 85.1% 16.3% 79.0% 40.3% 76.5% 36.3% 53.8% 91.1% 90.0% 85.4% 94.2% 89.2% 63.8% 90.0%

61.2% 50.5% 89.2% 62.0% 26.9% 32.7% 47.5% 39.8% 58.2% 53.5% 95.7% -77.2% 47.6% 44.0% 47.2% 14.2% 13.2% 68.8% 38.9% 61.6% 139.4% 15.4% 84.8% 67.2%

18% 16% 20% 8% 5% 19% 17% 36% 13% 15% 15% 0% 14% 14% 20% 9% 0% 18% 16% 15% 16% 25% 2% 9%

32% -1% 6% 6% 0% 14% -1% 16% 1% 6% 0% 2% 1% 5% 4% 2% 0% -6% 4% 3% 2% 4% -7% 0%

TTL Grps I+II (All Typical Lines)

6,615,830,000

12,383,721,000

53.4%

57.2%

12%

4%

Louisiana

Commission 5-Yr (all Distribution) Growth Rate

Louisiana Marketplace Report

Page 26

AVERAGE COMMISSIONS TOP LINES OF BUSINESS 2019 Louisiana Top LOB Commission Rates

All Private Passenger Auto Fire & Allied Lines Homeowners Multi-Peril Workers' Compensation All Commercial Auto Other Liability (Occurrence) Commercial Multi-Peril Inland Marine Other Liability (Claims-made) Medical Malpractice Surety Products Liability Excess Workers' Comp Ocean Marine 0%

5%

10%

15%

20%

25%

Commissions shown are gross commissions paid including both direct commission and any contingent commissions/profit sharing.

They are also shown as totals paid by the company, including any paid to wholesalers.

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

Louisiana Marketplace Report

Page 27

APPENDICES Appendix 1 - The Data The source of the data presented is A.M. Best and its Financial Suite. A.M. Best obtains this data on individual insurers from the required filings with state regulators. 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 where this data comes from.

Historically, insurers in different insurance categories had a designated color for their annual reports—such as yellow for P&C or blue for life.

This report is written to be consistent with the member agent's view of the insurance world. Unlike industry watchers of insurer profitability and insolvency, direct written premiums are used—not net written premiums. The latter is typically used by the industry press and includes reinsurance and inter-company transfers. While useful in the context of solvency or insurer profitability, net written premiums can cloud the picture of the independent agent’s experience in the marketplace.

Also, note that the direct written premiums used to arrive at totals for the U.S. and Louisiana do not include international, various group accident and health, Medicare Title XVIII or reinsurance. The premiums do include both admitted and nonadmitted premiums as long as the premiums are written by insurers who are domiciled in the USA. Alien insurers are not directly included in most charts as they are not tracked as readily as insurers domiciled in the USA.

These LOBs are standardized for all insurers as specified by the National Association of Insurance Commissions. Definitions of each LOB is described in an appendix to the summary.

The designation of an insurer as using independent agents is included in the policy-issuing insurers’ reports. Therefore, some carriers which utilize multiple distribution channels may sometimes be allocated incorrectly. The premiums counted as being from insurers using Independent Agents include insurers designated as marketing through independent agents, banks, brokers, general agents and managing general agents.

It should be noted that the loss ratios shown are adjusted calendar year loss ratios. That means for each LOB the losses used in the ratio of losses to earned premiums are the paid losses that year, plus any estimates of future losses that will be paid from claims that year (also known as "reserves") plus any changes in "reserves" from prior years. The "adjusted" part is if dividends are paid out under an LOB, the loss ratio is adjusted for that cost.

Louisiana Marketplace Report

Page 28

Appendix 2 - Definitions 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).

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.

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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.

Source: ©1984 –2019 National Association of Insurance Commissioners: Annual Statement Instructions Property/Casualty-2019 Reporting Year

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Appendix 3 - Surplus Lines 2019 Louisiana All P-C Premium: Admitted Vs. Surplus Lines Surplus Lines 13%

2019 All States All P-C Premium: Admitted Vs. Surplus Lines Surplus Lines 8%

Admitted 87%

Admitted 92%

13% of Louisiana insurance is written by surplus or "non-admitted" insurers, compared to the 8% average.

These graphs are the only data in the report which includes both alien AND domestic insurers.

The data comes from NAIC but does not include the level of detail found in the A.M. best data used for the rest of the report.

2019 Louisiana Top Surplus Lines Products Liab of Business 2% Medical Professional Liability Inland Marine 2% 3% Other Liab (Claims-made) 7%

All Other 1%

Other Liab (Occurrence) 27%

2019 All States Top Surplus Lines of Business Inland Marine 3% Medical Professional Liability 5%

Products Liab 4%

Homeowners Multi Peril 8%

All Other 2%

Other Liab (Occurrence) 31%

Other Liab (Claims-made) 17% Commercial Multiple Peril (Total) 10% Homeowners Multi Peril 3% All Commercial Auto 13%

Fire & Allied Lines 27%

Commercial Multiple Peril (Total) 7% All Commercial Auto 6%

Fire & Allied Lines 22%

The breakdown of surplus data by LOB does NOT include alien insurers and should therefore be taken with a grain of salt. Lloyds of London and other alien insurers play a significant role in the surplus market in Louisiana.

Source: © A.M. Best Company — used by permission and National Association of Insurance Commissions Surplus Lines Industry Summary

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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

18153 E. Petroleum Drive | Baton Rouge, LA 70809