Page 1

www.demotech.com Volume 2 Issue 3

November 2012

Demotech, Inc. Analysis of Risk Retention Groups Second Quarter 2012


Contents

Analysis of Risk Retention Groups

November 2012

Volume 2

Issue 3

The following articles and columns compliment the quarterly financial data found in this issue of Analysis of Risk Retention Groups:

3

Opening Remarks

5 8

RRGs Remain Financial Stable Despite Underwriting Losses in 2nd Quarter

FEATURED ARTICLE

On the Spot with Michael Rogers

Q&A with Michael Rogers, Chairman & CEO, Risk Services, LLC, on topics and current events affecting RRGs.

INDUSTRY PERSPECTIVE

12 14 72

Risk Retention Groups - Alive and Well at 25 By Joseph Deems, Executive Director, National Risk Retention Association

Company Information and Financial Results of RRGs. 32 Analysis by Individual RRG 54 Analysis by State 63 Analysis by Line of Business

ISSN 2168-7013 (online) Published November 6, 2012

Additional Analysis of RRGs Assigned an FSR

COPYRIGHT© 2012 Demotech, Inc.

In-depth financial analysis for RRGs assigned a Financial Stability Rating®. The company profile pages provided courtesy of SNL Financial and used with their permission.

About the Editor

Douglas A Powell | Senior Financial Analyst, Demotech,Inc. Follow on Twitter, @powdoug. Email at dpowell@demotech.com.

Mr. Powell has nearly ten years of progressively responsible experience involving Property and Casualty insurers, Title underwriters, financial analysis and business consulting. He has previous work experience as an accountant and auditor in the notfor-profit and government sectors. He possesses extensive experience in monitoring, reviewing and assessing the financial stability of insurers. Since joining Demotech, Mr. Powell has been actively engaged in the Property and Casualty and Title insurance industries. Demotech produces many articles and studies throughout the year. Mr. Powell is instrumental in providing research, analysis and insight for these endeavors. Mr. Powell also acts as a liaison on behalf of Demotech and its clients in correspondence with various government agencies, insurance industry associations, insureds and the media.

Special thank you to the following people for their contributions, comments and commitment: Joseph Deems | Executive Director, National Risk Retention Association Melissa-Anne Duncan | Vice President, Development and Communications Insurance Industry Charitable Foundation Keith Enslow | Senior Program Manager, SNL Center for Financial Education Mechlin Moore | Communications Director, National Risk Retention Association Michael Rogers | Chairman & CEO, Risk Services.

The ratios, percentages and calculations contained herein have been compiled from data considered reliable or are expressions of opinion. They are not intended to be complete, and we do not assume responsibility for the accuracy of the data prepared or provided by others. No ratio or other presentation herein constitutes or shall be considered as a recommendation to enter in a contractual relationship, is meant as an offer to sell dispose of any securities, or is a solicitation to buy the securities of any of the companies included in the listing.

®


Opening Remarks

Follow on Twitter @powdoug

Analysis of Risk Retention Groups – Second Quarter 2012

Connect on LinkedIn www.linkedin.com/in/ powdoug

Analysis of Risk Retention Groups – Second Quarter 2012 contains expert analysis from Demotech, Inc. as well as perspective on other topics pertaining to Risk Retention Groups (RRGs). This issue includes an article from the National Risk Retention Association (NRRA) following its 2012 conference in Washington, DC. Joseph Deems, Executive Director, NRRA, has provided their comments relating to topics discussed at the conference. (In case you missed it, Deems discusses the key themes of the 2012 NRRA Conference with World Risk and Insurance News in this video - http://wrin.tv/index.php/component/ content/article/3/535.) Also, in this issue’s On the Spot, Michael Rogers, Chairman & CEO, Risk Services, discusses topics and current events impacting RRGs. The companies of Risk Services assist commercial insurance companies as well as traditional insurers, reinsurers and insurance producers by offering alternatives to traditional insurance for transferring, financing and managing risk.

Email dpowell@demotech.com

Recommended Tweeps Listed below are some other insurance related tweeps I encourage you to follow on Twitter, in no particular order.

As a reminder, it was announced in the last issue that company profile pages are now available for RRGs that Demotech reviews and rates. These company profile pages are provided by SNL Financial and give an in-depth look at these RRGs.

@_Demotech

@ClearRisk

Please keep in mind that neither the NAIC or its authorized vendor, SNL, endorse any analysis or conclusion based upon the use of the NAIC’s data.

@doubleicf

Demotech is Now on Twitter

@CaptiveReview

If you haven’t already, please follow Demotech on Twitter, @_Demotech, for updates and analysis on the insurance industry, as well as rating notifications (https://twitter.com/_ Demotech). Also, I have listed to the right other insurance related tweeps you may want to follow. This list will be updated each quarter to include new and recommended insurance tweeps.

@tjohansmeyer

@captivecom

@BusInsRZolkos

@JPGreene

@annefreedman

@CITimes

Looking for Contributing Columnists Would you like to be a contributing columnist for a future issue of Analysis of Risk Retention Groups? Contact me with the nature of your proposed article as well as how many words you would like to contribute. I can be reached at dpowell@demotech.com. As always, I hope you find this information applicable and informative. If you have any questions, comments or suggestions, contact me. Thank you, Thank you,

Douglas A. Powell | Senior Financial Analyst, Demotech, Inc. Zap this to discover the benefits of being assigned a Financial Stability Rating®.

®


Insurance Industry Charitable Foundation HELPING COMMUNITIES. ENRICHING LIVES. TOGETHER. Mission

The Insurance Industry Charitable Foundation helps communities and enriches lives by combining the collective strengths of the industry to provide grants, volunteer service and leadership.

Who We Serve and How Through collaborative efforts of insurance companies, reinsurance companies, employees, agents and brokers, and strategic partners of the industry, the Foundation supports programs that focus on education, health, and safety. Within such areas, special focus is placed on organizations serving children.

Grants The Foundation exists to provide and generate support for designated charitable organizations that help to meet critical community needs and to reinvest funds in the communities from which they are raised.

To date, the Industry Foundation has awarded over $18 million in community grants.

IICF Week of Giving Since 1998, the Insurance Industry Charitable Foundation has hosted Volunteer Week – the largest ongoing volunteer initiative in the insurance industry. Volunteer Week 2011 marked our largest event to date with participation in eighteen states across the country. The Foundation is proud to expand its legacy of volunteerism in 2012 with the launch of IICF Week of Giving. During IICF Week of Giving, industry professionals from coast to coast will come together in a dedicated week of volunteer service and giving. Over 155,000 hours of volunteer service have been completed for community nonprofits.

National Foundation Advisory Board

In the effort to strengthen the collective philanthropic voice of the industry, the Foundation has developed the National Advisory Board comprised of insurance foundation leaders from across the Industry.

National Initiative

In partnership with the National Advisory Board, the Foundation is in the process of evaluating proposals for an industry-wide national initiative and platform. Together, the Foundation and the National Advisory Board will work to rally the industry to raise national awareness and provide financial support for the selected initiative.

McKinsey and Company Collaboration

The Foundation and the National Advisory Board have proudly collaborated with McKinsey and Company to quantify the insurance industry’s philanthropic efforts. With advisement from the IICF, McKinsey produced the report “Charitable Giving in The Property-Casualty Insurance Industry” . This report provides the first comprehensive review of the industry’s charitable contributions.

Women in Insurance Global Conference

The Foundation is proud to announce the Women in Insurance Global Conference. The conference, running June 12-14, 2013 at the Marriott Marquis in New York City, will bring together some of the most distinguished woman and leaders of the industry. The forward-thinking event will celebrate the leadership of the extraordinary women within the industry and explore the opportunities for the future growth and success. With your support and involvement we can unite industry resources, talents and leadership to strengthen communities and enrich lives by raising funds and responding to the critical needs in our local communities. We hope you will join us!

National Office 2121 N. California Blvd., Suite 555 Walnut Creek, CA 94596 Phone: 925-280-8009 Fax: 925-280-8059 www.iicf.org contact@iicf.com FEIN: 20-1240972


RRGs Remain Financially Stable Despite Underwriting Losses in 2nd Quarter

Cover Story

Financial analysis of Risk Retention Groups based on reported historical results through the second quarter 2012.

Douglas A Powell | Senior Financial Analyst, Demotech, Inc. Overall RRG Performance - Second Quarter 2012 Based on second quarter 2012 reported financial information, risk retention groups continue to exhibit financial stability. In comparing the last five second quarter results, short-term assets, total admitted assets and policyholders surplus have continuned to increase at a quicker rate than total liabilities (figure 1). Since second quarter 2008, short-term assets have increased 35.7 percent and total admitted assets have increased 28 percent. More importantly, policyholders surplus has increased 64.2 percent during this time, while total liabilities have only increased 10.5 percent.

Figure 1 - RRG Balance Sheet Metrics

(In Billions)

$9

Short-term Assets

$8

Total Net Admitted Assets Total Liabilities

$7

Total Policyholders Surplus

$6

$5

$4

$3

The level of policyholders surplus becomes increasingly important in difficult economic conditions, as it determines whether or not an insurer can remain solvent while facing changing economic conditions and greater losses. Liquidity, as measured by liabilities to cash and invested assets, for second quarter 2012 was approximately 71.5 percent. A value less than 100 percent is considered favorable as it indicates that there was more than $1 of net liquid assets for each $1 of total liabilities. This also indicates an improvement for RRGs collectively over second quarter 2011 as liquidity was reported at 75.7 percent. Demotech prefers companies report leverage of less than 300 percent. Leverage, as measured by total liabilities to policyholders surplus, for second quarter 2012 was 139.5 percent. This indicates an improvement for RRGs collectively over second quarter 2011, as leverage was reported at 152.4 percent. The loss ratio for RRGs collectively, as measured by losses incurred plus loss adjustment expenses incurred to net premiums earned, for second quarter 2012 was approximately 65.3 percent. This is an improvement over second quarter 2011, as the loss ratio was 68.4 percent. Figure 2 - RRG Ratios - Total

Combined Ratio

Loss Ratio

100%

Expense Ratio

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2008Q2

2009Q2

2010Q2

2011Q2

2012Q2

$2

$1

$2008Q2

2009Q2

2010Q2

2011Q2

2012Q2

The expense ratio, as measured by other underwriting expenses incurred to net premiums written, for second quarter 2012 was approximately 27.6 percent. This indicates a decline for RRGs collectively over second quarter 2011 as the expense ratio was reported at 25.1 percent. The combined ratio, as measured by loss ratio plus expense ratio, for second quarter 2012 was 92.8 percent. This indicates an improvement for RRGs collectively over second quarter 2011, as the combined ratio was reported at 93.5 percent (figure 2). A nearly $7.6 million net underwriting profit was reported by RRGs collectively for second quarter 2012. Moreover, RRGs did collectively report a $108.2 million net income for second quarter 2012.

RRG Performance by Line of Business - Second Quarter 2012

RRGs reported direct premium written in nine lines of business, but 99.9 percent of this premium is derived from five lines — commercial auto liability, medical professional liability (claims-made), medical professional liability (occurrence), other liability (claims-made) and other liability (occurrence). Commerical Auto Liability RRGs whose primary line of business is commercial auto liability accounted for 5.1 percent of the total second quarter RRG direct premium written. This line of business consists of 19 RRGs. Liquidity for commercial auto liability RRGs was approximately 96.1 percent for the second quarter 2012. Compared to second quarter 2011, this indicates a decline for commercial auto liability RRGs collectively, as liquidity was reported at 90.2 percent.

ÂŽ


Leverage for commercial auto liability RRGs was approximately 188.9 percent for the second quarter 2012. Compared to second quarter 2011, this indicates a decline for commercial auto liability RRGs collectively, as leverage was reported at 175.3 percent. The loss ratio for commercial auto liability RRGs was 72.3 percent for second quarter 2012. Compared to second quarter 2011, this indicates a decline for commercial auto liability RRGs collectively, as the loss ratio was reported at 65.7 percent.

Figure 3 RRGs by Lines of Business 6/30/12

Liquidity

Leverage

Loss Ratio

Expense Ratio

Combined Ratio

Commercial Auto liability

96.1%

188.9%

72.3%

27.5%

99.8%

Medical Professional Liability (Claims-made)

74.5%

158.0%

65.3%

25.9%

91.1%

Medical Professional Liability (Occurrence)

89.9%

165.4%

87.7%

6.4%

94.0%

Other Liability (Claims-made)

54.0%

84.8%

63.8%

31.1%

94.9%

Other Liability (Occurrence)

80.2%

180.4%

52.2%

77.3%

129.6%

All Other Lines of Business

13.9%

15.3%

22.5%

123.6%

146.1%

The expense ratio for commercial auto liability RRGs was approximately 27.5 percent for second quarter 2012. Compared to second quarter 2011, this indicates an improvement for commercial auto liability RRGs collectively, as the expense ratio was reported at 32.1 percent.

The combined ratio for medical professional liability (claimsmade) RRGs was 91.1 percent for second quarter 2012. Compared to the second quarter 2011, this indicates a decline for medical professional liability (claims-made) RRGs collectively, as the combined ratio was reported at 89.9 percent.

The combined ratio for commercial auto liability RRGs was 99.8 percent for second quarter 2012. Compared to the second quarter 2011, this indicates a decline for commercial auto liability RRGs collectively, as the combined ratio was reported at 97.8 percent.

Medical professional liability (claims-made) RRGs collectively reported approximately a $18.3 million net underwriting gain and approximately a $72.2 million net income for second quarter 2012.

Commercial auto liability RRGs collectively reported approximately a $323,000 net underwriting loss and approximately a $1.4 million net income for second quarter 2012.

Medical Professional Liability (Occurrence) RRGs whose primary line of business is medical professional liability (occurrence) accounted for 5.8 percent of the total second quarter RRG direct premium written. This line of business consists of 10 RRGs.

Medical Professional Liability (Claims-made) RRGs whose primary line of business is medical professional liability (claims-made) accounted for 54.5 percent of the total second quarter RRG direct premium written. This line of business consists of 130 RRGs. Liquidity for medical professional liability (claims-made) RRGs was approximately 74.5 percent for the second quarter 2012. Compared to second quarter 2011, this indicates an improvement for medical professional liability (claimsmade) collectively, as liquidity was reported at 77.5 percent. Leverage for medical professional liability (claims-made) RRGs was approximately 158 percent for the second quarter 2012. Compared to second quarter 2011, this indicates an improvement for medical professional liability (claims-made) RRGs collectively, as leverage was reported at 170.2 percent.

Liquidity for medical professional liability (occurrence) RRGs was approximately 89.9 percent for the second quarter 2012. Compared to second quarter 2011, this indicates an improvement for medical professional liability (occurrence) RRGs collectively, as liquidity was reported at 136.1 percent. Leverage for medical professional liability (occurrence) RRGs was approximately 165.4 percent for the second quarter 2012. Compared to second quarter 2011, this indicates an improvement for medical professional liability (occurrence) RRGs collectively, as leverage was reported at 264.7 percent.

The second quarter results of RRGs indicate that these specialty insurers continue to exhibit financial stability.

The loss ratio for medical professional liability (claims-made) RRGs was approximately 65.3 percent for second quarter 2012. Compared to second quarter 2011, this indicates an improvement for medical professional liability (claims-made) RRGs collectively, as the loss ratio was reported at 67.5 percent.

The expense ratio for medical professional liability (claimsmade) RRGs was approximately 25.9 percent for second quarter 2012. Compared to second quarter 2011, this indicates a decline for medical professional liability (claims-made) RRGs collectively, as the expense ratio was reported at 22.4 percent.

The loss ratio for medical professional liability (occurrence) RRGs was approximately 87.7 percent for second quarter 2012. Compared to second quarter 2011, this indicates an improvement for medical professional liability (occurrence) RRGs collectively, as the loss ratio was reported at 106.6 percent.

The expense ratio for medical professional liability (occurrence) RRGs was approximately 6.4 percent for second quarter 2012. Compared to second quarter 2011, this indicates an improvement for medical professional liability (occurrence) RRGs collectively, as the expense ratio was reported at 12.1 percent. The combined ratio for medical professional liability (occurrence) RRGs was 94 percent for second quarter 2012. Compared to the second quarter 2011, this indicates an improvement for medical professional liability (occurrence) RRGs collectively, as the combined ratio was reported at 118.7 percent.


Medical professional liability (occurrence) RRGs collectively reported approximately a $1.8 million net underwriting loss and approximately a $5.6 net income for second quarter 2012. Other Liability (Claims-made) RRGs whose primary line of business is other liability (claimsmade) accounted for 27 percent of the total second quarter RRG direct premium written. This line of business consists of 46 RRGs. Liquidity for other liability (claims-made) RRGs was approximately 80.2 percent for the second quarter 2012. Compared to second quarter 2011, this indicates an improvement for other liability (claims-made) RRGs collectively, as liquidity was reported at 84 percent. Leverage for other liability (claims-made) RRGs was approximately 84.8 percent for the second quarter 2012. Compared to second quarter 2011, this indicates an improvement for other liability (claims-made) RRGs collectively, as leverage was reported at 96.6 percent. The loss ratio for other liability (claims-made) RRGs was approximately 63.8 percent for second quarter 2012. Compared to second quarter 2011, this indicates a decline for other liability (claims-made) RRGs collectively, as the loss ratio was reported at 58.5 percent. The expense ratio for other liability (claims-made) RRGs was approximately 31.1 percent for second quarter 2012. Compared to second quarter 2011, this indicates a slight improvement for commercial auto liability RRGs collectively, as the expense ratio was reported at 31.3 percent. The combined ratio for other liability (claims-made) RRGs was 86.9 percent for second quarter 2012. Compared to the second quarter 2011, this indicates a decline for other liability (claimsmade) RRGs collectively, as the combined ratio was reported at 77.2 percent. Other liability (claims-made) RRGs collectively reported approximately a $176,000 net underwriting loss and approximately a $19.5 million net income for second quarter 2012. Other Liability (Occurrence) RRGs whose primary line of business is other liability (occurrence) accounted for 7.5 percent of the total second quarter RRG direct premium written. This line of business consists of 42 RRGs. Liquidity for other liability (occurrence) RRGs was approximately 80.2 percent for the second quarter 2012. Compared to second quarter 2011, this indicates an improvement for other liability (occurrence) RRGs collectively, as liquidity was reported at 84 percent. Leverage for other liability (occurrence) RRGs was approximately 180.4 percent for the second quarter 2012. Compared to second quarter 2011, this indicates an improvement for other liability (occurrence) RRGs collectively, as leverage was reported at 181.3 percent. The loss ratio for other liability (occurrence) RRGs was approximately 52.2 percent for second quarter 2012. Compared to second quarter 2011, this indicates an improvement for other liability (occurrence) RRGs collectively, as the loss ratio was reported at 74 percent.

The expense ratio for other liability (occurrence) RRGs was approximately 77.3 percent for second quarter 2012. Compared to second quarter 2011, this indicates a decline for other liability (occurrence) RRGs collectively, as the expense ratio was reported at 35.4 percent. The combined ratio for other liability (occurrence) RRGs was 129.6 percent for second quarter 2012. Compared to the second quarter 2011, this indicates a decline for other liability (occurrence) RRGs collectively, as the combined ratio was reported at 109.5 percent. Other liability (occurrence) RRGs collectively reported approximately an $8.4 million net underwriting loss and approximately an $8.8 million net income for second quarter 2012. Conclusions Based on Second Quarter Results Even in light of political and economic uncertainty, RRGs remain financially stable and continue to provide specialized coverage to their insureds. The financial ratios calculated based on the second quarter results of the various lines of business of RRGs appear to be reasonable. It is typical for insurers’ financial ratios to increase and decrease period over period. Moreover, the reported underwiting losses are not indicative of a continuing trend. Equally important, RRGs have collectively reported a net income at year-end since 1996. The second quarter results of RRGs indicate that these specialty insurers continue to exhibit financial stability.

Financial stability can be independent of size. Regional and Specialty insurers are often mistakenly thought of as financially unstable due to their size. Financial Stability Ratings® look beyond the size of an insurer and evaluate solvency using a quantitative model based on insurance fundamentals. Innovative thinking, strategic analysis, commitment, insight and ongoing involvement with the insurance industry allow us to provide solutions as unique as your company. Financial Stability Ratings® offer the following benefits: • Acceptance by Fannie Mae, Freddie Mac and HUD • Eliminate Reinsurance Cut-Throughs • Access to Stand-Alone Umbrella Insurance • Premium Financing Available • Errors and Omissions Insolvency Gap Coverage Available For more information regarding the philosophy and methodology Demotech, Inc. utilizes in assessing the financial stability of RRGs, visit http://tinyurl.com/86flzzb.

®


Company Perspective

On the Spot with Michael Rogers Q&A with Michael Rogers, Chairman & CEO, Risk Services, LLC, on topics and current events affecting RRGs, as interviewed by Douglas A Powell

What do you see as the greatest barriers to entry for new RRGs in the geographic areas you serve? The operational beauty of Risk Retention Groups (RRGs) is that most reasonable barriers to entry for a well thought out group liability insurance program have been largely removed. To appreciate this, one must understand the hurdles of starting a traditional insurance company operating a multi-state program from scratch. The minimum capital and surplus requirement for a traditional insurer in most states is $5 million. To raise capital for such a venture among potential subscribers, a state and/or federal security offering must be filed. Legal fees in the hundreds of thousands of dollars are common. A traditional insurance company, so formed initially, can generally only operate in its state of domicile. To insure a policyholder outside of the insurer’s state of domicile, that insurer must generally become licensed in that state. Most states outside the insurer’s state of domicile impose “seasoning requirements,” meaning that the insurer must have operated in its state of domicile a number of years (three is common) before it can apply for a license in another state. Policy forms and rates are often strictly regulated by insurance departments of domiciliary and non-domiciliary states, often denying the insurance company and its policyholders much needed flexibility. In short, establishing a multi-state insurance company from scratch is an expensive and lengthy process. The federal Liability Risk Retention Act (LRRA) amendments of 1986 permit RRGs to form and operate with far less onerous barriers to entry and operation than traditional insurance companies. While traditional insurers generally must have initial minimum capital and surplus of at least $5 million, the minimum capital and surplus required of RRGs is typically $500,000 to $1 million. Keep in mind, however, that both of these figures are statutory minimums and actual minimum capital and surplus mandated by the regulator will invariably be somewhat higher. Under the LRRA, RRGs are preempted from mandatory federal and state securities and state “blue sky” registration filings, thereby obviating a costly and time consuming expense imposed on traditional insurance company formation. Since statutory definition under the LRRA states the RRG’s owners must be insureds and vice versa, the captive domicile laws under which virtually all RRGs are created focus its attention on the solvency of the entity itself rather than, in essence, protecting policyholders against themselves. Thus, unlike traditional insurance companies, policy form and rate regulation is afforded tremendous flexibility, viewed primarily by the regulator in the context of whether the policy form used and the rate charged will allow the RRG to meet its obligations to its policy holder insureds.

Risk Services, LLC

Perhaps most significantly, no seasoning requirements requiring an insurer to be in operation several years before it can apply for licensure in a non-domiciliary state can be imposed on RRGs. RRGs can largely operate on the basis of basically a file and use information filing in each state where it intends to do business. Equally as significant, most non-domiciliary regulation over an RRG is preempted by the LRRA including form and rate regulation. Thus, an RRG can operate on a multi-state basis with significant flexibility and/or uniformity not afforded to traditional insurers. There are still a number of hurdles faced by RRGs. Under the LRRA, RRGs can only offer liability insurance, so consequently they cannot offer “one-stop shopping,” including the provision of coverages such as property or workers’ compensation, which traditional carriers may provide. Also, while studies conducted by such industry publications as the Risk Retention Reporter indicate both the strength of RRGs as a whole and that the percentage of insolvencies for RRGs is the same or less than traditional insurers, there have been a few well publicized failures of RRGs, most notably insuring administrators of automobile extended service contracts. Let me put it this way; if a mutual insurance company fails, all other mutual insurers are not tarnished. The same is not yet true for RRGs. My theory is that due to the relative youth of the RRG sector, broader generalizations are made against them than other older sectors of the industry, such as surplus lines insurers. However, this is where a Financial Stability Rating® (FSR) assigned by Demotech can be a great equalizer, as it provides assurances of financial stability to a sector whose overall financial strength is sometimes questioned. Still, even with the reduced capital and surplus requirements afforded captives versus traditional insurers, coming up with the initial minimum statutory capital surplus of $500,000 to $1 million required to license the RRG can be a daunting proposition. Organizers are faced with a dilemma of securing capital and surplus contributions without having a licensed RRG to provide insurance, while not being able to secure a license due to lack of capital and surplus. This dilemma can often be addressed by having a party (often a service provider or organizer) put up a Letter of Credit or Surplus Note for capitalization to be retired gradually when the RRG begins writing premium and receiving capital and surplus contributions from its members. In other situations, regulators will issue an RRG a conditional license, allowing it to issue coverage when capital and surplus reaches a certain amount. This conditional licensing allows the RRG to preempt federal security registration and state “blue sky” law registration requirements otherwise required for soliciting funds to raise capital. Indeed, this is yet another key preemption afforded by the LRRA to facilitate the raising of capital for RRG formation. Preparing such registration filings, as anyone who has received such a stock prospectus can readily appreciate, is extremely labor intensive and involves high legal costs.

®


Company Perspective

Risk Services, LLC What differentiates the RRGs you serve from competitors? Over the past decade, Risk Services, LLC has formed and managed more RRGs than virtually all of our competitors, including the large brokerage houses with captive management appendages. As specialists in the RRG field, having organized and managed such a significant number of RRGs, there are few regulatory or insurance issues impacting RRGs that we have not seen. Moreover, Risk Services is singularly focused on forming and managing our RRG clients so that they perform with maximum efficiency and satisfaction for the RRG policyholder owners. Thus, for example, we do not approach captive management from the standpoint of an insurance producer, which often views the commission income earned from its parent as paramount and the captive management function as a reluctant accommodation to protect that commission income. While consultants may profess independence, all too often their ultimate concern may be the billable hours to form the facility, rather than the ultimate success of the captive or RRG so formed. Put another way, we have seen hundreds of thousands of dollars spent on consultant fees where the RRG had never become operational. Risk Services, on the other hand, prefers “to eat its own cooking.” We rarely, if ever, operate on a consulting basis for the formation of a captive or RRG which we do not ultimately manage. As a result, the noncapitalization formation costs for Risk Services’ clients are among the lowest in the industry.

How has being assigned a Financial Stability Rating® (FSR) by Demotech, Inc. benefited those RRGs? FSRs provided by Demotech are invaluable in a number of crucial areas. As I noted earlier, an FSR provides assurance of financial stability in a relative youthful RRG sector of the insurance marketplace which is sometimes subject to unfair generalizations based on the insolvencies of a few. Another crucial function FSRs serve is in the area of financial responsibility requirements imposed by governments or private parties on the insureds of RRGs. Thus, when “rated paper” is required to satisfy these local financial requirements, or when third parties on a less formal basis simply desire assurances of an RRG’s financial stability, an FSR satisfies these requirements. Also, for a variety of reasons, a rating from Demotech continues to be a superior alternative for our RRG clients in comparison to a rating from AM Best. An AM Best rating may be difficult to secure for a start-up RRG. Often, AM Best requires a track record of operation before assigning a rating and the methodology AM Best utilizes in their rating assignment process may be more invasive than many of our RRG clients would prefer. For instance, AM Best has a risk diversification bias, which may be fine for a traditional multi-line insurance company, but may implicitly require an RRG to assume exposures beyond their expertise.

What specific areas of business have RRGs seen the most positive impact in since being assigned an FSR? We see many third party certificate requests where the insureds contract with a third party hospital, landlord or vendor that requires an A rated certificate. It is our experience that having a qualified FSR from Demotech has satisfied this requirement about 90 percent of the time. The insured’s third party certificate request may be from only a small portion of the insured’s business, but unfortunately it is the tail wagging the dog. Without the FSR, the RRG cannot write any of the insured’s exposures. What types of processes or technology do you see RRGs utilize to conduct business? Why? RRGs are much more like traditional insurance companies than captives. RRGs are, by definition, direct writing insurance companies as opposed to captive reinsurance companies and, as such, require most of the processes and technology that a traditional insurer utilizes. The difference is that the RRG writes only specialty liability insurance and often on manuscript forms. Hence, rather than a one size fits all mentality, the processes and technology our RRG clients use are very client-specific and risk management focused. What types of processes or technological advances are RRGs exploring to implement? Why? The specialist nature of the risks of our RRG clients leads to the ability to provide processes and technologies that multi-line or multi-specialty traditional insurers may be unwilling or unable to provide. Examples include single specialty physician groups where clients utilize or create very specific risk management programs designed to address the specific needs of that specialty or the implementation of self-braking and camera monitoring in a long haul trucking operation.

About On the Spot On the Spot is a featured column in Analysis of Risk Retention Groups and utilizes a format of an informative and interactive discussion. The discussion is between Douglas A. Powell, Demotech, Inc., and a member of the risk retention group community. During the discussion, the member is asked a series of questions pertaining to the economic, jurisdictional, political or competitive factors influencing RRGs as well as other current issues. The purpose of the column is to present the expertise and point of view of the RRG community member.

®


Company Perspective

Risk Services, LLC

Company Profile - Risk Services, LLC The companies of Risk Services, LLC comprise several consulting, captive management, reinsurance intermediary and MGA/TPA entities operating in the major onshore and offshore captive insurance domiciles and engaged in all aspects of the alternative insurance marketplace. Their captive management units are based in the District of Columbia, Delaware, South Carolina, Vermont, Arizona, Nevada, Montana, Hawaii and Bermuda. Their experienced professionals assist their clients through the structuring, formation, reinsurance placement, licensure and multi-state registration process and thereafter provide complete management and regulatory compliance services. Risk Services is a recognized expert in the risk retention group industry, having formed and managed risk retention groups in every major US domicile. In fact, one of their principals, Jon Harkavy, was a drafter of the 1986 Amendments to the Federal Liability Risk Retention Act. Officers of Risk Services, LLC Michael T. Rogers, Chairman & CEO

Michael T. Rogers Chairman & CEO, Risk Services, LLC Mr. Rogers is the Chairman and CEO of Risk Services, one of the leading captive management firms in the United States. Mr. Rogers is a fellow of the Institute of Chartered Accountants of the Canadian Institute of Chartered Accountants, a member of the American Institute of Chartered Property and Casualty Underwriters and a licensed general and surplus lines insurance agent. Mr. Rogers brings over thirty years of experience, including 25 years in the captive management business, ten years with major accounting firms in Bermuda, Canada and Great Britain, and prior service as an insurance regulator. Mr. Rogers is an expert in the structuring of risk management and insurance programs and has extensive knowledge of the technical aspects of risk financing and the operation of alternative and traditional insurance programs.

Jon Harkavy, Executive Vice President B. Troy Winch, Vice President, Director of Captive Insurance

Demotech Levels the Playing Field for Regional and Specialty Insurers Financial Stability Ratings® look beyond the size of an insurer to evaluate stability based on insurance fundamentals. Financial Stability Ratings® offer: • Acceptance by Fannie Mae, Freddie Mac and HUD • Elimination of Reinsurance Cut-Throughs • Access to Stand-Alone Umbrella Insurance • Premium Financing • Errors and Omissions Insolvency Gap Coverage

Visit www.demotech.com/FSRBenefits for more information.

®


Emergency Medicine Professional Assurance Company Risk Retention Group Insurance coverages and policy limits Provides claims-made professional liability coverage to emergency medicine physicians, physician groups and other physician-related entities. Policies with limits of up to $1 million per occurrence/$3 million per physician and $7 million in the annual aggregate on a claims-made basis are available. (up to $1.3 million per occurrence/$3.9 million aggregate in NY). Geographic areas of coverage AL, AZ,AR, CA, CO, CT, DE, FL, GA, ID, IL, IN, IA, KY,LA, MD,MA, MI,MN, MS,MO, MT,NE, NV,NJ,NY, NC, OH, OK, OR, PA, RI, SC, TN, List of RRGs currently assigned a Financial Stability Rating (FSR) that TX, UT,VA, WA,WV, WY Risk Services, LLC. serves: Reinsurers American Builders Insurance Company Risk Retention Group, Inc. Wesco Ins. Co. (DE) Insurance coverages and policy limits Lancet Indemnity Risk Retention Group, Inc. Provides general liability insurance to members of the American Builders Association, LLC consisting of general and artisan contractors engaged in Insurance coverages and policy limits residential and/or commercial construction. Policy limits of $1 million per Provides medical professional liability insurance coverage. Policy limits of occurrence and $2 million aggregate are available; both occurrence and $100,000 per claim/$300,000 annual aggregate; $250,000 per claim/$750,000 annual aggregate are available. Higher limits of $1 million per claim/$3million claims-made policy forms are offered. annual aggregate are also available. Geographic areas of coverage ®

All states in the United States and DC, except AK and HI Reinsurer Greenlight Reinsurance, Ltd. (CYM) CARE Risk Retention Group, Inc. Insurance coverages and policy limits

Geographic areas of coverage

AL, AZ,AR, CA, CO, CT, DE, FL, GA, ID, IL, IN, IA, KY,LA, MD,MA, MI,MN, MS,MO, MT,NE, NV,NJ,NY, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT,VA, WA,WV, WY Reinsurers

Lloyd’s Syndicates (GBR) Provides medical professional liability coverage. Policy limits of up to $1 National Service Contract Insurance Company Risk Retention Group million per occurence/$3million aggregate are available on a claims-made Insurance coverages and policy limits basis (up to $1.3 million per occurrence/$3.9 million aggregate in NY). Provides contractual liability coverage for providers of warranties and service Geographic areas of coverage contracts. Policy limits of $75,000 maximum are available. AZ, AR,CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, KY,ME, MD,MI, Geographic areas of coverage MN,MT, NV,NJ, NY,NC, OH,OK,PA, SD, TN, TX, VT, VA All states in the United States and DC, except FL, LA, WI Reinsurer Amtrust International Ins. Ltd. (BDA); reinsurance is provided on a quota Reinsurer Amtrust International Ins., Ltd. (BDA) share basis. New York Healthcare Insurance Company, Inc., A Risk Retention Group Centurion Medical Liability Protection Risk Retention Group, Inc. Insurance coverages and policy limits

Insurance coverages and policy limits

Provides claims-made medical professional liability insurance policies to allopathic and osteopathic physicians. Policy limits of $100,000 per claim/$300,000 annual aggregate or $200,000 per claim/$600,000 annual aggregate with defense within the policy limits, and policy limits up to $1 million per claim/$3 million annual aggregate are available.

Provides medical professional liability and comprehensive general liability insurance coverages. Policy limits of $1 million per occurrence/$3million aggregate are available on a claims-made basis.

Geographic areas of coverage AZ, FL, MI, TX Reinsurers Lloyd’s Syndicates (GBR); Catlin Insurance Co. Ltd. (BDA) Continuing Care Risk Retention Group, Inc.

Geographic areas of coverage CT, DC, IL, NJ, NY Reinsurers Lloyd’s of London (GBR); Catlin Insurance Company Ltd. (BDA) PCH Mutual Insurance Company, Inc., A Risk Retention Group Insurance coverages and policy limits

Provides general liability, professional liability, and employment practices liability insurance coverages. Policy limits per occurrence and in the annual Provides professional medical liability and general liability coverages. Policy aggregate of $100,000, $300,000, $500,000, $1 million, $2 million, and $3 limits of $1 million per incident/$3 million annual aggregate are available on million on a claims-made basis are available. a claims paid and claims made basis. Geographic areas of coverage Geographic areas of coverage AL, AK, AZ, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KY,ME, AZ, CA,CO, CT, DE, GA, HI, ID, IL, IN, IA, KS, KY, LA,ME, MD, MA, MD,MA, MI,MO, MT, NE, NV, NJ, NY, NC, ND, OH, OK, OR, PA, RI, SC, MI, MN, MO, MT, NE, NH, NJ,NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA,WA, WI SD,TN, TX,UT, VT, VA, WA,WI, WY Reinsurers Insurance coverages and policy limits

Reinsurers

Lloyd’s of London (GBR); Aspen Insurance UK Limited (GBR)

Lloyd’s of London (GBR); Aspen Insurance UK Limited (GBR); Catlin Insurance Co. Ltd. (BDA)

®


Risk Retention Groups - Alive and Well at 25 By Joseph Deems, Executive Director, National Risk Retention Association

Here is some news that may surprise industry critics – Risk Retention Groups (RRGs) are alive and well. Our sector of the insurance industry weathered the great recession and is growing again despite the long-running soft market. As we celebrated the 25th anniversary of the National Risk Retention Association (NRRA) at our annual conference recently, the mood was optimistic. The same holds true for Purchasing Groups (PGs), RRGs’ cousins under the same federal law.

Industry Perspective

National Risk Retention Association

Those states imposed registration requirements and fees that exceeded the preemptions imposed upon them by the LRRA. Some non-domicile states went so far as to demand that an RRG join their state’s guaranty fund in order to operate when the federal law actually prohibits RRGs from joining guaranty funds. A few states even imposed their own definition of liability insurance permitted by the LRRA to attempt discriminatory restrictions against companies doing business in their venues.

Member companies reported strong financials and high renewal rates in the face of cutthroat price competition in some lines. RRGs that have been in business for decades said they were able to maintain cost-based pricing (translated: higher rates) because members know they’ll be around when the market turns hard and traditional carriers withdraw or raise prices to prohibitive levels. In networking sessions, CEOs and captive managers said the outlook is positive for RRGs even in the slow recovery of the overall economy.

Unfortunately, in fending off the traditional insurance industry’s lobbying against the passage of the LRRA in 1986, Congress failed to include an enforcement mechanism in the act. This left RRGs injured by state regulatory actions with no recourse other than the federal courts in which to assert their rights. Most RRGs are small companies with limited access to capital outside their own members. More than half of the top 100 RRGs write less than $10 million in premium a year – many RRGs write $5 million or less and simply cannot afford the cost and delay involved in a federal lawsuit. Consequently, The fact that RRGs as an industry sector held their own through they cave in to illegal state requirements or stay out of hostile the recession and the continuing soft market was confirmed in states. This limits the availability of badly needed insurance to the Risk Retention Reporter’s annual survey that was published consumers. as the NRRA conference concluded. “This year’s survey projects a solid turnaround in growth for RRG premium,” the Fortunately, companies facing encroachment on their authority industry journal stated. Premiums are forecast to grow 5.4 by non-domicile states have an effective advocate in the percent to a total of more than $2.6 billion. This would surpass NRRA. Our association has defended RRGs in a number of the all-time high set in 2006. So far this year, 12 RRGs have landmark cases over the years and won. Since federal circuit been formed with several more in the pipeline for the fourth court decisions are only binding in their own venue, our work quarter. This could make 2012 the second year in a row that must continue because even some non-domiciliary states argue new formations outpace retirements. that those decisions are not binding upon them because they are located in a different circuit. So far, none of these cases have Healthcare will account for 60 percent of the RRG market, with gone to the Supreme Court. premium for 2012 projected to reach almost $1.6 billion – an increase of 6.4 percent. Within the healthcare sector, hospitals Among its other initiatives, NRRA has proactively advocated and affiliates more than doubled the premium increases of other for legislation to amend the LRRA and, among other provisions, subsectors as more physicians joined hospital staffs leading up insert an enforcement mechanism through alternative dispute to full implementation of ObamaCare in 2014. Transportation resolution (arbitration, for example). The Bill (HR 2126) was will be the biggest gainer with premiums expected to reach $106 introduced last year but failed to move due to the preoccupation million – a 20.5 percent increase over 2011. In transportation, of Congress with other “bigger” issues. NRRA will continue the star performer is trucking with premiums forecast to jump with those efforts going forward. 28.6 percent to $73.8 million. Eight of the nine subsectors recorded premium gains with the financial sector being the only Outside the courts and Congress, NRRA will continue to speak up for RRGs and PGs before the National Association exception. of Insurance Commissioners (NAIC), where non-domicile state At NRRA, we are pleased with the good news. However, this is regulators find another forum to attempt further over-regulation not the time to get complacent. Major challenges to the stability of RRGs. Here we’re thankful to have effective allies in and growth of RRGs in particular remain. The Liability domicile states, such as Vermont, that have organized captive Risk Retention Act of 1986 (LRRA) specifically and clearly programs. In D.C., the Federal Insurance Office (FIO) that was authorizes RRGs to provide liability insurance in all 50 states created under Dodd-Frank is looking into possible regulation of when licensed in a single state and preempts most regulation the alternative risk transfer markets. This mostly affects other by states other than the state of domicile. However, from our captive segments, but NRRA remains vigilant on that front. The industry’s infancy, some non-domicile states sought to muzzle Government Accountability Office recently issued a misleading RRGs seeking to do business in their jurisdictions. report on RRGs that NRRA vigorously challenged.

®


Finally, education is key to many of our initiatives. We have discovered that much of the time opposition to our efforts is caused by ignorance of the law. This opposition collapses when we explain what the LRRA actually provides. We have our work cut out for us. NRRA has defended the industry effectively for 25 years and is stronger than ever today, as evidenced by the record turnout and the greatest amount of sponsors ever to support NRRA at our recent conference. That growth is countered by the ongoing challenges we face with Congress, the NAIC and those few states that continue to demonstrate unfounded ideological bias against RRGs. Nonetheless, we are confident that with enduring support by our members, who volunteer time and expertise, along with other industry partners, the obstacles to RRG growth will be overcome.

Joseph Deems Executive Director, National Risk Retention Association Mr. Deems served as a member and Secretary of the Board of Directors of the NRRA prior to serving as Executive Director. He continues to serve as Chairman of the NRRA Government Affairs Committee (GAC), which he took over in 2008. The GAC generates and manages NRRA’s response to developing regulatory or legislative changes and judicial matters which would adversely impact risk retention and purchasing groups accross the country. Mr. Deems has over 37 years of experience as an attorney licensed to pratice before both state and federal courts with an emphais on insurance law. His present practice also includes transactional corporate affairs, business formation and regulatory issues. He received his J.D. from Southwestern University School of Law and a B.A. from Loyola University of Los Angeles, California.

About the National Risk Retention Association (NRRA) The National Risk Retention Association (NRRA) was formed in September 1987 as a 501 (c)(6) non-profit trade association and is the only national association dedicated to the successful development, education and promotion of U.S. domiciled alternatives to traditional liability insurance. NRRA provides a forum where the country’s most knowledgeable individuals in risk retention insurance may exchange valuable and timely information. NRRA has a long history of successful legal and regulatory representation of the interests of risk retention and purchasing group liability insurance programs. NRRA has 25 years of advocacy. Mission Statement The NRRA’s central purpose is to promote Risk Retention Act authorized group insurance programs as a practical, economical, efficient, sustainable, and financially sound option for distributing the liability risks of member insureds. NRRA fulfills its mission through education, communication, networking, government relations and judicial advocacy. NRRA’s Purpose and Goals ƒƒ Establish high performance standards and the monitoring of industry practices to promote sound self-insurance management. ƒƒ Provide a forum for rigorous dialogue about industry issues, sharing of experiences and solutions, and cooperation among members. ƒƒ Educate and consult members about all aspects of selfinsurance. ƒƒ Encourage public acceptance through timely promotional and educational programs. ƒƒ Serve as the country’s most informed resource of up to the minute risk retention information, including interpretation and clarification of the law, legal issues, legislative and regulatory practices, and compliance procedures. ƒƒ Communicate the NRRA membership’s viewpoint to government leaders, including participation in legal action and lobbying. ƒƒ Translate the risk retention concept into practical, workable applications. ƒƒ Articulate, protect and help execute members’ risk retention interests. Visit www.nrra-usa.org for more information.

®


This page intentionally left blank.


Risk Retention Groups Listing of RRGs


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

12934 ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK

1250 BROADWAY, SUITE 3401, NEW YORK, NY 10001-3713

RETENTION GROUP

Statement Contact CLAIRE VERONICA OYELAJA

Phone (646) 808-0596

12557 ACBG RISK RETENTION GROUP, LLC Statement Contact LINDA B. ELLIOTT

Phone (802) 864-6301

13606 AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP Statement Contact RICK O'BRIEN

Phone (702) 938-3175

28380 AGRI INSURANCE EXCHANGE RRG Statement Contact P. DEAN DENHART

Phone (808) 585-3526

Phone 800-226-0793

Domiciled

VT

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Primary Line of Business Medical Professional Liability (Claims-made)

1707 VILLAGE CENTER CIRCLE, SUITE 100, LAS VEGAS, NV 89134-0515 Primary Line of Business Other Liability (Occurrence)

Domiciled

NV

Primary Line of Business Other Liability (Claims-made)

Domiciled

IN

Primary Line of Business Other Liability (Occurrence)

Domiciled

HI

Primary Line of Business Commercial Auto Liability

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

AZ

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

AZ

Primary Line of Business Other Liability (Occurrence)

Domiciled

MT

Primary Line of Business Commercial Auto Liability

Domiciled

TX

Domiciled

VT

Domiciled

IA

12544 HIGH BLUFF DRIVE, SUITE 430, SAN DIEGO, CA 92130-3052 Phone (802) 863-4400

44202 AMERICAN FEED INDUSTRY INS CO RRG Statement Contact SUSAN P. TINGLEFF

DC

12222 MERIT DRIVE, SUITE 1660, DALLAS, TX 75251-3212 Phone (800) 563-6051

10903 AMERICAN EXCESS INS EXCHANGE RRG Statement Contact KATHRYN MICHENER BOUCHE

Domiciled

27 NORTH 27TH STREET, SUITE 1900, CROWNE PLAZA, BILLINGS, MT 59101

12300 AMERICAN CONTRACTORS INS CO RRG Statement Contact SUZANNE WALSH

Primary Line of Business Other Liability (Claims-made)

15615 NORTH 71ST STREET, SUITE 103, SCOTTSDALE, AZ 85254-2150 Phone (802) 371-2229

12631 AMERICAN BUILDERS INSURANCE COMPANY RRG, INC. Statement Contact KATIE GRAY

AZ

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Phone (877) 872-7475

10232 AMERICAN ASSOC OF OTHODONTISTS RRG Statement Contact REBECCA J. AITCHISON

Domiciled

1100 W. TOWN & COUNTRY RD., STE. 1400, ORANGE, CA 92868 Phone 714-571-1864

12013 ALLIED SERVICES RISK RETENTION GROUP Statement Contact LEN T. LOGAN

Primary Line of Business Other Liability (Occurrence)

2386 AIRPORT ROAD BARRE, VT 05641-8629 Phone (802) 371-2227

11710 ALLIED PROFESSIONALS INSURANCE COMPANY, RRG Statement Contact DOUGLAS JOSEPH HAUSER

VT

745 FORT STREET, SUITE 1100, HONOLULU, HI 96813-3800

10023 ALLIANCE OF NONPROFITS FOR INS RRG Statement Contact CINDY L. LYFORD

Domiciled

5825 LAWTON LOOP EAST DRIVE INDIANAPOLIS, IN 46216-1064 Phone (317) 541-1800

11965 ALLEGIANT INS CO INC A RRG Statement Contact MARK HIRONAGA

Primary Line of Business Other Liability (Claims-made)

555 FAIRMOUNT AVENUE, BALTIMORE, MD 21286 Phone 410-339-7263-1

13677 AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP Statement Contact JAY E. CURTIS

VT

2700 NORTH THIRD STREET, SUITE 3050, PHOENIX, AZ 85004-4620 Phone (602) 200-6900

12252 AEGIS HEALTHCARE RRG, INC. Statement Contact BARBARA LABUSKES

Domiciled

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-2750

12166 ADVANCED PHYSICIANS INS RRG INC Statement Contact ED CALDWELL

Primary Line of Business Medical Professional Liability (Claims-made)

Primary Line of Business Medical Professional Liability (Claims-made)

4685 MERLE HAY ROAD, SUITE 200, DES MOINES, IA 50322-1982 Phone (515) 254-0400

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Other Liability (Occurrence)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

11590 AMERICAN FOREST CASUALTY COMPANY RRG Statement Contact TERESA MARIE MATTHEWS

1605 MAIN STREET, SUIT 800, SARASOTA, FL 34236-5840 Phone (941) 955-0793

25448 AMERICAN SAFETY RRG INC Statement Contact MATTHEW ROBERT POLLAK

Phone (770) 485-4423

11534 AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG Statement Contact PATRICIA LORRAINE MALONEY

Phone 406-523-3908

12171 AMERIGUARD RRG INC Statement Contact SCOTT C. STONE

Primary Line of Business Other Liability (Occurrence)

Domiciled

VT

Domiciled

MT

Domiciled

VT

Domiciled

AZ

Domiciled

DE

Domiciled

NV

Domiciled

KY

Domiciled

MT

Domiciled

SC

Domiciled

DC

Domiciled

HI

Domiciled

VT

111 NORTH HIGGINS, FOURTH FLOOR, MISSOULA, MT 59802 Primary Line of Business Commercial Auto Liability Primary Line of Business Commercial Auto Liability Primary Line of Business Medical Professional Liability (Claims-made)

2056 WESTINGS AVENUE, SUITE 20, NAPERVILLE, IL 60563-2495 Phone (800) 437-2342

13177 ARCOA RISK RETENTION GROUP, INC. Statement Contact MICHELLE RENEE TRIMBLE

SC

2555 E. CAMELBACK RD., PHOENIX, AZ 85016 Phone 623-427-3208

44148 ARCHITECTS & ENGINEERS INS CO RRG Statement Contact MICHAEL T. IANNOTTI

Domiciled

2386 AIRPORT ROAD BARRE, VT 05641-8629 Phone (802) 371-2231

11598 APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC. Statement Contact LEE MILIZIA

Primary Line of Business Commercial Auto Liability

100 GALLERIA PARKWAY, SE, SUITE 700, ATLANTA, GA 30339-5947

Primary Line of Business Other Liability (Claims-made)

1325 AIRMOTIVE WAY, SUITE 100, RENO, NV 89502-3294 Phone (602) 263-6755

13580 ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION

Primary Line of Business Commercial Auto Liability

1700 EASTPOINT PARKWAY LOUISVILLE, KY 40223-4140

GROUP

Statement Contact SUSAN LEDFORD

Phone (502) 244-1343

14005 ARTISAN CONTRACTORS INSURANCE COMPANY RISK RETENTION GROUP,

Primary Line of Business Boiler and Machinery

ORG CORPORATION, P.O. BOX 510, BIGFORK, MT 59911-0510

LLC

Statement Contact JOHN S. MALONEY

Phone (718) 937-2010

12224 ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC. Statement Contact VIRGINIA ADRIHAN

Phone (843) 853-0446

33677 ATTORNEYS INS MUTUAL OF ALABAMA INC Statement Contact MELANIE T. DIXON

Primary Line of Business Other Liability (Claims-made) Primary Line of Business Other Liability (Claims-made)

Domiciled

MT

Domiciled

DC

Domiciled

NV

1050 K STREET, NW, SUITE 400, WASHINGTON, DC 20001-4448 Phone (260) 486-0418

11033 AUTOMOTIVE UNDERWRITERS INS CO A RRG Statement Contact BJORN K. HUBBARD

Primary Line of Business Other Liability (Claims-made)

FLORENCE BUILDING, 111 NORTH HIGGINS AVENUE, SUITE 200, MISSOULA, MT 59802-4401 Phone (406) 728-3113

13795 ATTPRO RRG RECIPROCAL RISK RETENTION GROUP Statement Contact GARRETT JAMES DAVENPORT

Primary Line of Business Other Liability (Claims-made)

311 SOUTH WACKER DRIVE, SUITE 5700, CHICAGO, IL 60606-6629 Phone (312) 697-6950

32450 ATTORNEYS LIAB PROTECTION SOC RRG Statement Contact MARY PATRICIA NORDHAGEN

Primary Line of Business Other Liability (Occurrence)

140 KENNEDY DRIVE SOUTH BURLINGTON, VT 05403-6710 Phone (802) 651-3377

10639 ATTORNEYS LIAB ASSUR SOCIETY INC RRG Statement Contact KEITH RUSSELL CRAVEN

177 MEETING STREET, SUITE 470, CHARLESTON, SC 29401-3160 200 INVERNESS PARKWAY BIRMINGHAM, AL 35242-4813

Phone (205) 980-0009

22670 ATTORNEYS INSURANCE MUTUAL RRG INC Statement Contact KAREN M. VENNER

Primary Line of Business Other Liability (Occurrence)

Primary Line of Business Other Liability (Claims-made)

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307 Phone (941) 373-1129

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Other Liability (Occurrence)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

13791 AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC. Statement Contact DANIEL JOHN SEMAN

Phone (406) 523-3873

10174 BAR VERMONT RISK RETENTION GROUP INC Statement Contact JEREMIAH MAHANEY

Phone (802) 264-4715

Phone (800) 226-0793

13010 BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP Statement Contact MICHAEL T. ROGERS

Phone (702) 678-6868

13788 BROADLINE RISK RETENTION GROUP, INC. Statement Contact MELISSA H. LAROSE

Phone (802) 864-1716

Phone (847) 549-8225

10808 CASSATT RISK RETENTION GROUP INC Statement Contact SCOTT ANDREW MAILLE

Phone (406) 523-3873

11694 CENTRAL PA PHYSICIANS RRG INC Statement Contact VIRGINIA ADRIHAN

Primary Line of Business Medical Professional Liability (Claims-made)

NV

Domiciled

NV

Domiciled

VT

Domiciled

HI

Domiciled

AZ

Domiciled

DC

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307 Primary Line of Business Other Liability (Occurrence) Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

1850 WEST WINCHESTER ROAD, SUITE 109, LIBERTYVILLE, IL 60048-5355 Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Domiciled

MT

Domiciled

SC

Domiciled

AZ

Domiciled

AZ

Domiciled

GA

111 NORTH HIGGINS AVENUE, SUITE 200, MISSOULA, MT 59802-4401 Primary Line of Business Other Liability (Occurrence) Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Claims-made)

15255 N. 40TH STREET, SUITE 109, PHOENIX, AZ 85032-4638 Phone 602-952-9532-

11065 CHATTAHOOCHEE RRG CAPTIVE INSURANCE COMPANY Statement Contact CORY E. BROWN

Domiciled

1605 MAIN STREET, EIGHTH FLOOR, SARASOTA, FL 34236-5840

2700 N. THIRD STREET, SUITE 3050, PHOENIX, AZ 85004-1229 Phone 800-226-0793

12167 CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG Statement Contact R&Q QUEST MANAGEMENT SE

VT

177 MEETING STREET, SUITE 470, CHARLESTON, SC 29401-3160 Phone (843) 853-0446

11976 CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC. Statement Contact GEMMA AGUSTIN TUANQUI

Domiciled

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 264-4711

13784 CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP Statement Contact DANIEL JOHN SEMAN

Primary Line of Business Medical Professional Liability (Claims-made)

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Phone (802) 371-2251

12373 CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP Statement Contact CHAD CURTIS SWIGERT

VT

2233 WISCONSIN AVE, N.W., SUITE 310, WASHINGTON, DC 20007 Phone 802-479-7801

11544 CAREGIVERS UNITED LIAB INS CO RRG Statement Contact KIM CONNELLY BLOOMER

Domiciled

2999 NORTH 44TH STREET, SUITE 550, PHOENIX, AZ 85018-7295 Phone (303) 388-5688

11825 CARE RRG, INC. Statement Contact CHARLES HALSTEAD-JOHNSO

Primary Line of Business Other Liability (Claims-made)

9229 SIERRA COLLEGE BOULEVARD ROSEVILLE, CA 95661-5919 Phone (916) 772-5110

12180 CALIFORNIA MEDICAL GRP INS CO RRG Statement Contact BRYAN ALAN JONES

MT

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

44504 CALIFORNIA HEALTHCARE INS CO INC RRG Statement Contact JEFFREY DUECK

Domiciled

40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492 Phone (802) 264-2052

14169 BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC. Statement Contact ANDREW CARLTON

Primary Line of Business Product Liability (Occurrence)

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

12933 BEDFORD PHYSICIANS RISK RETENTION GROUP, INC. Statement Contact ALICIA M. RUBALCABA

111 NORTH HIGGINS AVENUE, SUITE 200, MISSOULA, MT 59802-4401

Phone (229) 226-1937

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Medical Professional Liability (Claims-made)

14382 US HIGHWAY 19, SOUTH THOMASVILLE, GA 31757-4801 Primary Line of Business Medical Professional Liability (Claims-made)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

11531 CHC CAS RRG Statement Contact AMY L. DAIGLE

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-1717

12308 CIMARRON INSURANCE EXCHANGE RRG Statement Contact PAULA A. FRENCH

Phone (802) 371-2321

11839 CIRCLE STAR INS CO RRG Statement Contact RENEE LAGUE

Phone (808) 521-0730

Phone (802) 864-2751

Domiciled

SC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

HI

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

AL

Primary Line of Business Other Liability (Claims-made)

Domiciled

HI

Primary Line of Business Other Liability (Occurrence)

Domiciled

VT

Primary Line of Business Warranty

Domiciled

VT

Primary Line of Business Other Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

IN

Domiciled

VT

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-1716

11259 COMMUNITY HOSPITAL RRG Statement Contact DONNA B. NORMAND

Primary Line of Business Medical Professional Liability (Occurrence)

7015 COLLEGE BOULEVARD, SUITE 400, OVERLAND PARK, KS 66211-1671 Phone (502) 882-4459

11536 COMMUNITY HEALTH ALLIANCE RECIP RRG Statement Contact MELISSA H. LAROSE

VT

2711 MIDDLEBURG DRIVE, SUITE 309-A, COLUMBIA, SC 29204-2475 Phone (941) 373-1129

13893 COMMUNITY BLOOD CENTERS EXCH RRG Statement Contact J. TODD ROSENBAUM

Domiciled

40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492 Phone (802) 264-2073

11807 COMMUNITIES OF FAITH RRG INC Statement Contact BJORN K. HUBBARD

Primary Line of Business Other Liability (Claims-made)

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

11864 COMCARE PRO INS RECIPROCAL RRG Statement Contact JONATHAN J. MCKENZIE

VT

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-2111

10803 COLUMBIA NATIONAL RRG INC Statement Contact JOHN H. RAYMOND

Domiciled

745 FORT STREET, SUITE 1100, HONOLULU, HI 96813-3810 Phone (808) 585-3584

13613 COLLEGE RISK RETENTION GROUP, INC. Statement Contact JENNIFER L. PETTENGILL

Primary Line of Business Commercial Auto Liability

509 OLIVER ROAD MONTGOMERY, AL 36117-2207 Phone (334) 271-5515

44598 COLLEGE LIABILITY INS CO A RECIP RRG Statement Contact TONI KANEHIRA

VT

30 MAIN STREET, SUITE 450, BURLINGTON, VT 05401-8427 Phone (802) 371-2231

11668 COASTAL INS RRG INC Statement Contact JOHN MARK KILLINGSWORTH

Domiciled

1003 BISHOP STREET, SUITE 1220, HONOLULU, HI 96813-6436

13756 CMIC RISK RETENTION GROUP Statement Contact SCOTT C. STONE

Primary Line of Business Medical Professional Liability (Claims-made)

151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238 Phone (843) 577-1034

43770 CLINIC MUTUAL INSURANCE CO RRG Statement Contact JASON L. PALMER

VT

17742 IRVINE BOULEVARD, SUITE 102, TUSTIN, CA 92780-3255 Phone (802) 371-2275

11992 CLARIAN HLTH RRG INC Statement Contact TONIA EPPS

Domiciled

58 EAST VIEW LANE, SUITE TWO, BARRE, VT 05641-5324 Phone (802) 223-2200

12172 CLAIM PROFESSIONALS LIAB INS CO RRG Statement Contact RAMON ROBERT RAMOS V

Primary Line of Business Other Liability (Claims-made)

30 MAIN STREET, SUITE 450, BURLINGTON, VT 05401-8427

Primary Line of Business Medical Professional Liability (Claims-made)

2547 WASHINGTON ROAD, 720 SUMMERFIELD COMMONS, UPPER SAINT CLAIR, PA 152412557 Phone (412) 833-5708

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

10075 CONSUMER SPECIALTIES INS CO RRG Statement Contact PAULA A. FRENCH

2386 AIRPORT ROAD-BERLIN BARRE, VT 05641-8629 Phone (802) 371-2321

11798 CONTINUING CARE RRG, INC. Statement Contact KATIE GRAY

Phone 800-226-0793

11603 CONTRACTORS INS CO OF NORTH AMER RRG Statement Contact STACEY GIBBS

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

Domiciled

HI

Domiciled

VT

201 MERCHANT STREET, SUITE 2400, HONOLULU, HI 96813-2929 Phone (802) 264-4588

10341 CONTROLLED RISK INS CO OF VT RRG Statement Contact MELISSA H. LAROSE

Primary Line of Business Other Liability (Occurrence)

223-B HEATLEY STREET, MONCKS CORNER, SC 29461

Primary Line of Business Other Liability (Occurrence)

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-1716

12042 COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A

Primary Line of Business Medical Professional Liability (Claims-made)

333 SOUTH HOPE STREET, EIGHTH FLOOR, LOS ANGELES, CA 90071-3001

RRG

Statement Contact NANCY VELASQUEZ

Phone (303) 469-8450

10164 CPA MUTUAL INS CO OF AMERICA RRG Statement Contact DAVID D. GUERINO

Phone (802) 371-2321

Phone (802) 861-2930

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DE

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

KY

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Domiciled

AZ

Domiciled

DE

Domiciled

NV

15615 NORTH 71ST STREET, SUITE 103, SCOTTSDALE, AZ 85254-2150 Phone (802) 371-2229

14163 EMERGENCY CAPITAL MANAGEMENT, LLC, RRG Statement Contact MELISSA ANNE HANCOCK

MT

148 COLLEGE STREET, SUITE 204, BURLINGTON, VT 05401-8476

10125 ELITE TRANSPORTATION RRG INC Statement Contact REBECCA J. AITCHISON

Domiciled

1200 G STREET, NW, SUITE 800, WASHINGTON, DC 20005-6705 Phone (814) 375-6377

10115 EASTERN DENTISTS INS CO RRG Statement Contact STEPHEN M. BROWN

Primary Line of Business Other Liability (Claims-made)

3370 SUGARLOAF PARKWAY SUITE G-2/302, LAWRENCEVILLE, GA 30044 Phone 877-614-6425-3

11842 DUBOIS MEDICAL RRG Statement Contact BRIAN S. KLINE

VT

845 THIRD AVENUE, 20TH FLOOR, NEW YORK, NY 10022-6601 Phone (212) 687-2525

13018 DOCTORS & SURGEONS NATIONAL RRG Statement Contact SARA M CARPENTER

Domiciled

126 COLLEGE STREET, SUITE 400, BURLINGTON, VT 05401-8456 Phone (802) 863-2398

43125 DELAWARE PROFESSIONAL INSURANCE CO Statement Contact I. DAVID GORDON

Primary Line of Business Other Liability (Claims-made)

30 MAIN STREET, SUITE 450, BURLINGTON, VT 05401-8427

13655 CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP Statement Contact MERISSA S. BUSHEY

HI

111 NORTH SEPULVEDA BOULEVARD, SUITE 243, MANHATTAN BEACH, CA 90266-6849 Phone (808) 988-3215

11676 CRUDEN BAY RRG INC Statement Contact PAULA A. FRENCH

Domiciled

11801 RESEARCH DRIVE, SUITE C, ALACHUA, FL 32615-6818 Phone (802) 264-2060

13720 CROSSFIT RISK RETENTION GROUP, INC. Statement Contact TONY JAMES SCHMIDT

Primary Line of Business Other Liability (Claims-made)

Primary Line of Business Commercial Auto Liability

1333 H STREET, SUITE 820, WASHINGTON, DC 20005 Phone 802-881-7142-

Primary Line of Business Medical Professional Liability (Claims-made)

12003 EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC) 5430 W. SAHARA, LAS VEGAS, NV 89146 Statement Contact BJORN K. HUBBARD

Phone 941-373-1129

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Medical Professional Liability (Claims-made)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

12015 EMERGENCY MEDICINE RRG INC Statement Contact MANNU LUO

151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238 Phone (843) 577-1035

11714 EMERGENCY PHYSICIANS INS CO RRG Statement Contact PAUL SHAMPAY

Phone (916) 772-2080

38466 EVERGREEN USA RRG INC Statement Contact ERIC GILCRIS

Phone (215) 235-5000

Phone (802) 864-5599

VT

Primary Line of Business Commercial Auto Liability

Domiciled

SC

Primary Line of Business Medical Professional Liability (Occurrence)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

AZ

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Other Liability (Occurrence)

Domiciled

VT

Primary Line of Business Other Liability (Claims-made)

Domiciled

HI

Primary Line of Business Commercial Auto Liability

Domiciled

VT

Domiciled

DC

Domiciled

NV

607 14TH STREET, NW, SUITE 900, WASHINGTON, DC 20005-2019 Phone (802) 223-2200

11145 GOLDEN INS CO RRG Statement Contact LEN CLAPP

Domiciled

148 COLLEGE ST., SUITE 204, BURLINGTON, VT 5401 Phone 802-861-2930 x

10991 GLOBAL INTL INS CO INC A RRG Statement Contact STEVE BEVINS

Primary Line of Business Medical Professional Liability (Occurrence)

15615 NORTH 71ST STREET, SUITE 103, SCOTTSDALE, AZ 85254-2150 Phone (480) 563-2315

11948 GLOBAL HAWK INSURANCE COMPANY RRG Statement Contact STEPHEN M BROWN

DC

76 SAINT PAUL STREET BURLINGTON, VT 05401-4470 Phone (802) 264-4713

13782 GERIC INSURANCE RISK RETENTION GROUP, INC. Statement Contact JONATHAN A. ARBEIT

Domiciled

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 264-4593

10163 GENERAL EASTERN SKI INS RRG INC Statement Contact DYAN O'HERNE

Primary Line of Business Medical Professional Liability (Claims-made)

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

12000 GEISINGER INS CORP RRG Statement Contact RONDA LYNN DEVINO

VT

2386 AIRPORT ROAD BARRE, VT 05641-8629 Phone (802) 371-2231

14032 GABLES RISK RETENTION GROUP, INC. Statement Contact JEFFREY M. TUCKER

Domiciled

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-2110

12016 FREDERICKSBURG PROFESSIONAL RISK EXC Statement Contact SCOTT C. STONE

Primary Line of Business Other Liability (Occurrence)

2555 EAST CAMELBACK ROAD, SUITE 700, PHOENIX, AZ 85016-4264 Phone (602) 427-3208

10842 FRANKLIN CASUALTY INS CO RRG Statement Contact DELISCA A. CHRISTIAN

NV

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-6332

12625 FORT WAYNE MEDICAL SURETY COMPANY, RRG Statement Contact LEE M. MILIZIA

Domiciled

4421 ARAMINGO AVENUE PHILADELPHIA, PA 19124-4101

11278 FIRST MEDICAL INS CO RRG Statement Contact JODI K. GUZZARDO

Primary Line of Business Medical Professional Liability (Claims-made)

ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441 Phone (843) 614-3132

11801 FIRST KEYSTONE RISK RETENTION GROUP, INC. Statement Contact JOSEPH SCHMIDT

SC

15255 NORTH 40TH STREET, SUITE 109, PHOENIX, AZ 85032-4638 Phone (602) 952-9532

11698 FAITH AFFILIATED RRG INC Statement Contact KELLY BOURNE

Domiciled

10 FALCON ROAD LEWISTON, ME 04240-5833 Phone (802) 264-4577

11840 FAIRWAY PHYSICIANS INS CO RRG Statement Contact RICHARD P. MARSHALL

Primary Line of Business Medical Professional Liability (Claims-made)

1528 EUREKA ROAD, SUITE 102, ROSEVILLE, CA 95661-3047

Primary Line of Business Other Liability (Claims-made)

2121 VALLEY SAND STREET LAS VEGAS, NV 89135-1101 Phone (303) 996-5446

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Other Liability (Claims-made)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

12512 GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC. Statement Contact DAWN M. DINARDO

Phone (843) 614-3134

13973 GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC. Statement Contact ANDREW CARLTON

Phone (800) 226-0793

11581 GRACO RRG INC Statement Contact DAWN M. DINARDO

Phone (773) 864-8280

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

MT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104 Phone (800) 226-0793

10080 HEALTH PROVIDERS INS RECIPROCAL RRG Statement Contact JASON L. PALMER

NV

8725 WEST HIGGINS ROAD, SUITE 810, CHICAGO, IL 60631-2734

11813 HEALTH NETWORK PROVIDERS MUT INS CO Statement Contact KATIE GRAY

Domiciled

30 MAIN STREET, SUITE 330, BURLINGTON, VT 05401-8427 Phone (802) 419-1218

12236 HEALTH CARE CAS RRG INC Statement Contact JOSEPH ROGER HERMAN

Primary Line of Business Other Liability (Claims-made)

151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238 Phone (843) 577-1032

13057 HAMDEN ASSURANCE RRG, INC. Statement Contact JOSEPH BERNARD PERCY

SC

40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492 Phone (843) 694-9698

12014 GUTHRIE RRG Statement Contact JASON MCMILLAN

Domiciled

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-5599

11696 GUARDIAN RRG INC Statement Contact JOCELYN M. LYMAN

Primary Line of Business Medical Professional Liability (Claims-made)

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441 Phone (843) 614-3134

11941 GREEN HILLS INS CO RRG Statement Contact JEFFREY M. TUCKER

ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Domiciled

HI

Domiciled

DC

1003 BISHOP STREET, SUITE 1220, HONOLULU, HI 96813-6436 Phone (808) 521-0730

11832 HEALTHCARE INDUSTRY LIABILITY RECIPROCAL INSURANCE COMPANY, RRG

Primary Line of Business Medical Professional Liability (Claims-made)

201 S. MAIN STREET, SUITE 200, ANN ARBOR, MI 48104

(HEALTHCAP RRG)

Statement Contact PETER M FEENEY

Phone 734 996-2700

11683 HEALTHCARE PROVIDERS INS CO RRG Statement Contact GEOFFREY LEWIS SALMON

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Phone (404) 835-0454

11998 HEARTLAND HEALTHCARE RECIP RRG Statement Contact DAVID D. GUERINO

SC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Other Liability (Claims-made)

Domiciled

SC

Domiciled

NV

Domiciled

VT

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307 Phone (941) 373-1114

26797 HOUSING AUTHORITY RRG INC Statement Contact PAULETTE ACHILLI

Domiciled

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Phone (802) 371-2251

11950 HOME CONSTRUCTION INS CO RRG Statement Contact MARY ELIZABETH GAROFALO

Primary Line of Business Medical Professional Liability (Claims-made)

40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492 Phone (802) 264-2060

11097 HERITAGE WARRANTY INS RRG INC Statement Contact KIM CONNELLY BLOOMER

Primary Line of Business Medical Professional Liability (Occurrence)

Primary Line of Business Other Liability (Occurrence)

189 COMMERCE COURT, P.O. BOX 189, CHESHIRE, CT 06410-0189 Phone (203) 272-8220

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Other Liability (Claims-made)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

41246 HOW INSURANCE COMPANY, A RISK RETENTION GROUP Statement Contact BRENDA J. STEWART

Phone (512) 404-6555

11268 ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP Statement Contact CHARLES WARREN BEHR

Phone (202) 326-5464

12018 INDEMNITY INSURANCE CORPORATION, RRG Statement Contact JEFFREY BRIAN COHEN

Phone 678-781-2444

Phone (802) 862-4400

Phone (800) 730-6614

11958 LIFE SERVICES NETWORK RECIP INS RRG Statement Contact TERESA MARIE MATTHEWS

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

AZ

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

NV

Primary Line of Business Other Liability (Occurrence)

Domiciled

SC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

GA

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

KY

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

KY

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

NV

Primary Line of Business Other Liability (Occurrence)

Domiciled

NE

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

NV

5679 SOUTH REDWOOD ROAD, SUITE 26, SALT LAKE CITY, UT 84123-5464 Primary Line of Business Commercial Auto Liability

Domiciled

UT

2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104 Phone (941) 955-0793

14084 LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP Statement Contact LINDA VILLANI

VT

3655 BROOKSIDE PARKWAY, SUITE 200, ALPHARETTA, GA 30022 Phone 678-781-2400

12627 LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY Statement Contact V. J. PETITT

Domiciled

1212 NORTH 96TH STREET OMAHA, NE 68114-2274 Phone (402) 399-3325

11947 LEWIS & CLARK LTC RRG, INC Statement Contact DONNA K. DALTON

Primary Line of Business Medical Professional Liability (Claims-made)

5430 W. SAHARA AVENUE, LAS VEGAS, NV 89146 Phone 800-226-0793

11500 LENDERS PROTECTION ASSUR CO RRG Statement Contact RONALD LEE WHEELER

DE

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

13014 LANCET INDEMNITY RISK RETENTION GROUP, INC. Statement Contact GEMMA AGUSTIN TUANQUI

Domiciled

2501 NELSON MILLER PARKWAY LOUISVILLE, KY 40223-2221 Phone (502) 992-4329

11803 LAKE STREET RRG INC Statement Contact THERESA MAE CARPENTER

Primary Line of Business Other Liability (Occurrence)

201 EAST JEFFERSON STREET, SUITE 104, LOUISVILLE, KY 40202-1250 Phone (802) 864-6301

11939 KENTUCKY HOSPITAL INS CO RRG Statement Contact DEBORAH ROSE RILEY

VT

14382 US HIGHWAY 19, SOUTH THOMASVILLE, GA 31757-4801 Phone (229) 226-1937

11872 KENTUCKIANA MEDICAL RECIPROCAL RRG Statement Contact JAY E. CURTIS

Domiciled

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Phone (802) 371-2252

12159 JOLIET AREA RRG CAPTIVE INSURANCE COMPANY Statement Contact CORY E. BROWN

Primary Line of Business Other Liability (Claims-made)

UUMC 3655 BROOKSIDE PARKWAY, SUITE 200, ALPHARETTA, GA 30022

11589 JAMESTOWN INS CO RRG Statement Contact JEFFRY M. DELMAS

VA

2325 EAST CAMELBACK ROAD, SUITE 600, PHOENIX, AZ 85016-3474 Phone (602) 337-6247

12594 J.M. WOODWORTH RRG, INC. Statement Contact DONNA K. DALTON

Domiciled

40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492 Phone (802) 264-2074

12320 INNOVATIVE PHYSICIAN SOLUTIONS RRG Statement Contact WENDY RAE BROWN

Primary Line of Business Product Liability (Occurrence)

1401 H STREET, NW, SUITE 1000, WASHINGTON, DC 20005-2031 950 RIDGEBROOK ROAD, SUITE 1500, SPARKS, MD 21152-9390

Phone (410) 472-6000

11692 INDIANA HEALTHCARE RECIP RRG Statement Contact ALIHAN ALIHAN

11401 CENTURY OAKS TERRACE, SUITE 310, AUSTIN, TX 78758-8702

Phone (800) 226-0793

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Domiciled

NV

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307 Primary Line of Business Other Liability (Claims-made)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

11684 LVHN RRG Statement Contact MANNU LUO

151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238 Phone (843) 577-1035

12554 MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP Statement Contact PATRICK GHISLAIN THERIAULT

Phone (802) 861-2630

11117 MARATHON FIN INS CO INC RRG Statement Contact STEPHEN D. KANTNER

Phone (925) 949-0101

Phone (802) 861-2930

12147 MIDWEST PROVIDER INSURANCE COMPANY, RRG Statement Contact JASON L. PALMER

Phone (808) 521-0730

Phone (843) 614-3132

11806 NATIONAL ASSISTED LIVING RRG, INC. Statement Contact ROSE PATRICK

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

MT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

HI

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Primary Line of Business Other Liability (Claims-made)

Domiciled

VT

Domiciled

VT

148 COLLEGE STREET, SUITE 204, BURLINGTON, VT 05401-8476 Primary Line of Business Other Liability (Claims-made) Primary Line of Business Other Liability (Claims-made)

Domiciled

AZ

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Primary Line of Business Commercial Auto Liability

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Domiciled

MT

Domiciled

WV

Domiciled

DC

40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492 Phone (802) 264-2060

12779 MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC. Statement Contact KELLY BOURNE

VT

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-2037

11585 MOUNTAIN STATES HEALTHCARE RECIP RRG Statement Contact DAVID D. GUERINO

Domiciled

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 264-4580

11547 MOUNTAIN LAUREL RRG INC Statement Contact AMANDA R. WESCOTT

Primary Line of Business Medical Professional Liability (Claims-made)

7701 FRANCE AVENUE, SOUTH, SUITE 500, MINNEAPOLIS, MN 55435-5288 Phone (952) 838-6766

13812 MOUNTAIN LAKE RISK RETENTION GROUP, INC. Statement Contact LOMY JAGNANDAN

DE

11201 NORTH TATUM BOULEVARD, SUITE 300, PHOENIX, AZ 85028-6039

14062 MMIC RRG, INC. Statement Contact JON GARY BEHNKEN

Domiciled

103 EISENHOWER PARKWAY, SUITE 101, ROSELAND, NJ 07068-1029 Phone (802) 863-2398

11999 MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP Statement Contact THAO T. NGUYEN

Primary Line of Business Other Liability (Occurrence)

5565 STERRETT PLACE, FIFTH FLOOR, COLUMBIA, MD 21044-2665 Phone (802) 864-2120

44237 MENTAL HEALTH RISK RETENTION GROUP Statement Contact MERISSA S. BUSHEY

DE

1050 K STREET, NW, SUITE 400, WASHINGTON, DC 20001-4448 Phone (260) 486-0418

10124 MEDSTAR LIABILITY LTD INS CO INC RRG Statement Contact LISA M. KANE

Domiciled

3000 OAK ROAD, SUITE 600, WALNUT CREEK, CA 94597-2071

13589 MEDPRO RRG RISK RETENTION GROUP Statement Contact GARRETT JAMES DAVENPORT

Primary Line of Business Commercial Auto Liability

805 MADISON STREET, SUITE 901, SEATTLE, WA 98104-1172 Phone (406) 282-0170

26257 MEDAMERICA MUTUAL RRG INC Statement Contact CHRISTOPHER PAUL MERTES

SC

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 652-1571

12355 MD RISK RETENTION GROUP, INC. Statement Contact BRENDA M. OLSON

Domiciled

1710 CORPORATE CROSSING, SUITE ONE, O'FALLON, IL 62269-3741 Phone (302) 651-8354

10697 MCIC VERMONT INC RRG Statement Contact DIANE M. HANSON

Primary Line of Business Medical Professional Liability (Claims-made)

NEMOURS BUILDING, 1007 ORANGE STREET, SUITE 1410, WILMINGTON, DE 19801-1242

Primary Line of Business Medical Professional Liability (Claims-made)

ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441 Primary Line of Business Medical Professional Liability (Claims-made)

3740 DAVINCI COURT, STE. 130, NORCROSS, GA 30092 Phone 770-255-4913

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Other Liability (Claims-made)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

12235 NATIONAL BUILDERS & CONTRACTORS INS Statement Contact GEMMA AGUSTIN TUANQUI

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307 Phone (800) 226-0793

10083 NATIONAL CATHOLIC RRG Statement Contact MARY MARIO RICHARDS

Phone (802) 861-2930

12293 NATIONAL CONTRACTORS INS CO INC RRG Statement Contact BRENDA M. OLSON

Phone (303) 306-0002

Phone (843) 614-3135

10234 NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG) Statement Contact CHARLES HALSTEAD-JOHNSO

Phone 802-479-7801

14130 NCMIC RISK RETENTION GROUP, INC. Statement Contact STEPHEN M. BROWN

Phone (941) 373-1129

12532 NEW STAR RISK RETENTION GROUP, INC. Statement Contact PIPER H. CROCKETT

Phone 800-226-0793

12581 NJ CAR RISK RETENTION GROUP Statement Contact ROBERT MYERS

Domiciled

MT

Primary Line of Business Medical Professional Liability (Occurrence)

Domiciled

HI

Primary Line of Business Other Liability (Claims-made)

Domiciled

CO

Primary Line of Business Commercial Auto Liability

Domiciled

SC

Domiciled

SC

Domiciled

DC

Domiciled

VT

Domiciled

NV

Domiciled

DC

ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441 Primary Line of Business Medical Professional Liability (Claims-made)

2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007 Primary Line of Business Other Liability (Occurrence) Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Claims-made)

10375 EAST HARVARD AVENUE, SUITE 100, DENVER, CO 80231-3966 Primary Line of Business Other Liability (Claims-made)

1180 SAM RITTENBERG BOULEVARD, SUITE 235, CHARLESTON, SC 29407-3384 Phone (843) 573-4946

12275 NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG Statement Contact KATIE GRAY

Primary Line of Business Other Liability (Occurrence)

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307 Phone (941) 955-0793

13792 NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP Statement Contact BJORN K. HUBBARD

VT

148 COLLEGE STREET, SUITE 204, BURLINGTON, VT 05401-8476 Phone (802) 861-2930

12539 NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC. Statement Contact TERESA MARIE MATTHEWS

Domiciled

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Phone (802) 371-2249

12529 NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC. Statement Contact MICHAEL JOHN COULTER

Primary Line of Business Other Liability (Occurrence)

ONE DENVER HIGHLANDS, 10375 EAST HARVARD AVENUE, SUITE 550, DENVER, CO 802313966

11197 NATIONAL INDEPENDENT TRUCKERS IC RRG Statement Contact NICOLE S. HUBLER

NV

4075 COPPER RIDGE DRIVE TRAVERSE CITY, MI 49684-7059 Phone (231) 946-6200

44016 NATIONAL HOME INSURANCE CO RRG Statement Contact HUGH B. MCCREERY

Domiciled

27 GAGE TERRACE BIGFORK, MT 59911-3544 Phone (406) 282-0170

36072 NATIONAL GUARDIAN RRG INC Statement Contact MARK A. BURNHEIMER

Primary Line of Business Other Liability (Occurrence)

148 COLLEGE STREET, SUITE 204, BURLINGTON, VT 05401-8476

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

1001 PENNSYLVANIA AVE., N.W., SUITE 400 SOUTH, WASHINGTON, DC 20004 Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Domiciled

DC

Domiciled

VT

1200 G STREET, NW, SUITE 800, WASHINGTON, DC 20005-6705 Phone (609) 883-5056

13059 NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION

Primary Line of Business Other Liability (Occurrence)

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

GROUP

Statement Contact LISA M. KANE

Phone (802) 864-2120

10752 NOVUS INS CO RRG Statement Contact ELIZABETH J. FORNEY

Primary Line of Business Medical Professional Liability (Claims-made)

1180 SAM RITTENBERG BOULEVARD, SUITE 235, CHARLESTON, SC 29407-3384 Phone (843) 573-4834

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

13644 OASIS RECIPROCAL RISK RETENTION GROUP Statement Contact GARY A. GRISWOLD

40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492 Phone (802) 658-9466

12845 OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC. Statement Contact BJORN K. HUBBARD

Phone (941) 373-1129

10158 OCEAN RRG INC Statement Contact MARY CLAIRE GOFF

Phone (415) 202-4618

Phone 941-955-0793

Domiciled

AZ

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

IL

Primary Line of Business Commercial Auto Liability

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

AZ

Primary Line of Business Other Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Commercial Auto Liability

Domiciled

TN

Primary Line of Business Other Liability (Claims-made)

Domiciled

DC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104 Phone (941) 373-1129

11587 PELICAN INS RRG Statement Contact JONATHAN J. MCKENZIE

Primary Line of Business Medical Professional Liability (Claims-made)

148 COLLEGE STREET, SUITE 204, BURLINGTON, VT 05401-8476 Phone (802) 861-2930

11772 PEDIATRICANS INS RRG OF AMER Statement Contact BJORN K. HUBBARD

SC

1605 MAIN STREET, SUITE 800, SARASOTA, FL 34236

11846 PEACE CHURCH RRG INC Statement Contact MARY MARIO RICHARDS

Domiciled

1000 RIDGEWAY LOOP ROAD, MEMPHIS, TN 38120 Phone 802-371-2219

11973 PCH MUTUAL INSURANCE COMPANY, RRG Statement Contact TERESA MARIE MATTHEWS

Primary Line of Business Medical Professional Liability (Claims-made)

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 652-1568

44130 PARATRANSIT INSURANCE COMPANY, RRG Statement Contact ANITA M. PERKINS

DC

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 652-1556

11575 PACE RRG INC Statement Contact GARY P. O'HARE

Domiciled

2999 NORTH 44TH STREET, SUITE 550, PHOENIX, AZ 85018-7295 Phone (941) 373-1114

10171 ORDINARY MUTUAL A RRG CORP Statement Contact TRISHA L. DESRANLEAU

Primary Line of Business Commercial Auto Liability

655 BEACH STREET SAN FRANCISCO, CA 94109-1336

12183 ORANGE COUNTY MEDICAL RECIP INS RRG Statement Contact MARY ELIZABETH GAROFALO

MT

58 EAST VIEW LANE, SUITE TWO, BARRE, VT 05641-5324 Phone (802) 223-2200

44105 OPHTHALMIC MUTUAL INS CO RRG Statement Contact LES J. SCACCALOSI

Domiciled

6133 NORTH RIVER ROAD, SUITE 650, ROSEMONT, IL 60018-5173 Phone (847) 384-0041

10353 OOIDA RISK RETENTION GROUP INC Statement Contact STEVE BEVINS

Primary Line of Business Medical Professional Liability (Claims-made)

1850 NORTH CENTRAL AVENUE, SUITE 1700, PHOENIX, AZ 85004-4574 Phone (602) 427-3217

44121 OMS NATL INS CO RRG Statement Contact KATHERINE ANN EHMANN

VT

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Phone (877) 872-7475

13062 OLYMPIA RISK RETENTION GROUP, INC. Statement Contact KIMBERLY E. WACK

Domiciled

1620 PROVIDENCE ROAD TOWSON, MD 21286-1525 Phone (877) 587-1763

12189 OCEANUS INS CO A RRG Statement Contact LEN T. LOGAN

Primary Line of Business Medical Professional Liability (Claims-made)

27 NORTH 27TH STREET, SUITE 1900, BILLINGS, MT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Domiciled

VT

40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492 Phone (802) 264-2073

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Medical Professional Liability (Claims-made)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

12004 PHOEBE RECIPROCAL RRG Statement Contact VIRGINIA ADRIHAN

177 MEETING STREET, SUITE 470, CHARLESTON, SC 29401-3160 Phone (843) 853-0446

12995 PHP RISK RETENTION GROUP, LIMITED Statement Contact SUSAN MUSCAT

Phone (802) 658-9466

13810 PHYSICIANS BENEFIT RESOURCES RISK RETENTION GROUP, INC. Statement Contact JAMES SHOOK

Phone (802) 371-2273

13995 PHYSICIANS CASUALTY RISK RETENTION GROUP, INC. Statement Contact ANDREW CARLTON

Phone (305) 662-7839

12746 PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC. Statement Contact ERNEST WILLIAM ARTERBERRY

Phone (954) 236-2400 Phone (802) 864-2037

12507 PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP Statement Contact CHRISTOPHER CRAIG LEIGH

Phone (843) 577-1360

11514 PHYSICIANS PROFESSIONAL LIABILTY RRG Statement Contact STACEY GIBBS

AZ

Domiciled

NV

Domiciled

NV

Domiciled

NV

15615 NORTH 71ST STREET, SUITE 103, SCOTTSDALE, AZ 85254-2150 Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Claims-made)

832 WILLOW STREET RENO, NV 89502-1304 Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

NV

Domiciled

VT

Domiciled

SC

Domiciled

VT

Domiciled

VT

Domiciled

MT

Domiciled

SC

Domiciled

MT

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Primary Line of Business Medical Professional Liability (Occurrence)

151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238 Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Medical Professional Liability (Occurrence)

27 GAGE TERRACE BIGFORK, MT 59911-3544 Phone (406) 282-0170

11513 PHYSICIANS SPECIALTY LTD RRG Statement Contact JEFFRY M. DELMAS

Domiciled

2386 AIRPORT ROAD BARRE, VT 05641-8629 Phone (802) 371-2221

13046 PHYSICIANS RISK RETENTION GROUP LLC Statement Contact BRENDA M. OLSON

Primary Line of Business Medical Professional Liability (Claims-made)

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 264-4588

10934 PHYSICIANS REIMBURSEMENT RRG Statement Contact MICHELE EMMONS

SC

BUILDING G, 7890 PETERS ROAD, SUITE 106, PLANTATION, FL 33324-4028

12918 PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP Statement Contact AMANDA R. WESCOTT

Domiciled

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307 Phone (800) 226-0793

12350 PHYSICIANS COMPLIANCE LIABILITY INSURANCE COMPANY, RRG Statement Contact MAURICIO FERNANDEZ

Primary Line of Business Other Liability (Claims-made)

40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492

Primary Line of Business Medical Professional Liability (Claims-made)

4535 DRESSLER ROAD, NW CANTON, OH 44718-2545 Phone (802) 371-2252

14108 PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION

Primary Line of Business Medical Professional Liability (Claims-made)

111 NORTH HIGGINS AVENUE, SUITE 200, MISSOULA, MT 59802-4401

GROUP

Statement Contact DANIEL JOHN SEMAN

Phone (406) 523-3873

13582 PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP Statement Contact JASON L. PALMER

Phone (808) 521-0730

12348 PINE TREE INS RECIPROCAL RRG Statement Contact SCOTT C. STONE

C/O WILLIS MANAGEMENT (HAWAII), 1003 BISHOP STREET, HONOLULU, HI 96813-6400 Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

HI

Domiciled

VT

2386 AIRPORT ROAD BARRE, VT 05641-8629 Phone (802) 371-2231

12198 PINELANDS INS CO RRG INC Statement Contact ANDREW CARLTON

Primary Line of Business Reinsurance - Nonproportional Assumed Liability

Primary Line of Business Medical Professional Liability (Claims-made)

2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104 Phone (800) 226-0793

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Commercial Auto Liability

Domiciled

DC

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

11980 PINNACLE CONSORTIUM OF HIGHER ED RRG Statement Contact MARCY WATERFALL

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-6269

11858 PINNACLE RRG INC Statement Contact RENEE LAGUE

Phone (802) 223-2200

14205 PLICO RISK RETENTION GROUP, INC. Statement Contact BRYAN SCOTTY POTTER

Phone (877) 587-1763

44083 PREFERRED PHYSICIANS MEDICAL RRG Statement Contact BRUCE WILLIAM ANDERSON

Phone (913) 262-2585

Phone (775) 887-2480

13179 PROAIR RISK RETENTION GROUP, INC. Statement Contact TERESA MARIE MATTHEWS

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

OK

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

FL

Domiciled

MT

Domiciled

MO

Domiciled

VT

Domiciled

NV

Domiciled

NV

Domiciled

DC

Domiciled

HI

Domiciled

VT

Domiciled

MT

Domiciled

VT

Domiciled

SC

1620 PROVIDENCE ROAD TOWSON, MD 21286-1525 Primary Line of Business Other Liability (Occurrence) Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Other Liability (Claims-made)

575 SOUTH SALIMAN ROAD CARSON CITY, NV 89701-5000 Primary Line of Business Medical Professional Liability (Claims-made) Primary Line of Business Other Liability (Occurrence)

2859 PACES FERRY ROAD, SUITE 800, ATLANTA, GA 30339-5733 Phone (770) 257-1709

10840 PROFESSIONAL MEDICAL INS RRG INC Statement Contact STEPHEN CHONG

DC

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307 Phone (941) 955-0793

11671 PROBUILDERS SPECIALTY INS CO RRG Statement Contact CRAIG BOWDEN

Domiciled

12544 HIGH BLUFF DRIVE, SUITE 430, SAN DIEGO, CA 92130-3052 Phone (802) 863-4400

12613 PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP Statement Contact JESSICA CONTRERAS

Primary Line of Business Other Liability (Occurrence)

9000 WEST 67TH STREET SHAWNEE MISSION, KS 66202-3656

10101 PREMIER INSURANCE EXCHANGE RRG Statement Contact KATHRYN MICHENER BOUCHE

VT

3655 BROOKSIDE PARKWAY, SUITE 200, ALPHARETTA, GA 30022 Phone 678-781-2444

12497 PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC Statement Contact MARY CLAIRE GOFF

Domiciled

226 DEAN A. MCGEE AVENUE OKLAHOMA CITY, OK 73102-3413 Phone (405) 815-4825

11809 PONCE DE LEON LTC RRG, INC. Statement Contact DONNA K. DALTON

Primary Line of Business Other Liability (Occurrence)

2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104

Primary Line of Business Other Liability (Occurrence)

201 MERCHANT STREET, SUITE 2400, HONOLULU, HI 96813-2929 Phone (808) 540-4323

12608 PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK

Primary Line of Business Medical Professional Liability (Occurrence)

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

RETENTION GROUP

Statement Contact MICHAEL A. CZAPLICKE

Phone (802) 864-2109

13067 PROFESSIONALS RISK RETENTION GROUP, INC. Statement Contact BRENDA M. OLSON

Phone (406) 282-0170

11350 PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG Statement Contact MARCY WATERFALL

Primary Line of Business Other Liability (Claims-made)

14382 US HIGHWAY 19, SOUTH THOMASVILLE, GA 31757-4801 Phone (229) 226-1937

13736 RED ROCK RISK RETENTION GROUP, INC. Statement Contact LEE M. MILIZIA

Primary Line of Business Medical Professional Liability (Claims-made)

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-6269

13078 RED CLAY RISK RETENTION GROUP, INC. Statement Contact CORY E. BROWN

Primary Line of Business Medical Professional Liability (Claims-made)

27 GAGE TERRACE BIGFORK, MT 59911-3544

Primary Line of Business Medical Professional Liability (Claims-made)

1850 NORTH CENTRAL AVENUE, SUITE 1700, PHOENIX, AZ 85004-4574 Phone (602) 427-3208

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Other Liability (Occurrence)

Domiciled

AZ

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

12010 REGIONAL HEALTH INS CO RRG Statement Contact DEBORAH ANN CANECO

1333 H STREET, NW, SUITE 820, WASHINGTON, DC 20005-4707 Phone (802) 861-6802

12019 REPUBLIC RRG Statement Contact ROBERT G. MEETZE

Phone (843) 573-4676

10691 RESIDENTIAL INS CO INC A RRG Statement Contact HUGH B. MCCREERY

Phone (802) 371-2238

Phone (877) 587-1763

11808 SCHUYKILL CROSSING RECIPROCAL RRG Statement Contact JEFFREY CALLANE

Phone (802) 864-1710

11267 SECURITY AMERICA RRG INC Statement Contact JODI K. GUZZARDO

Phone (802) 864-6332

Phone (802) 371-2253

12005 SENTINEL ASSUR RRG INC Statement Contact TONI KANEHIRA

VT

Primary Line of Business Product Liability (Occurrence)

Domiciled

HI

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

Domiciled

DC

Domiciled

VT

1620 PROVIDENCE ROAD TOWSON, MD 21286-1525 Primary Line of Business Other Liability (Occurrence) Primary Line of Business Medical Professional Liability (Claims-made)

7251 WEST LAKE MEAD BOULEVARD, SUITE 401, LAS VEGAS, NV 89128-8370 Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

NV

Primary Line of Business Other Liability (Occurrence)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

MT

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Primary Line of Business Other Liability (Claims-made)

Domiciled

DC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

HI

Primary Line of Business Other Liability (Claims-made)

Domiciled

DC

Domiciled

SC

ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441 Phone (843) 614-3132

10754 SPIRIT MOUNTAIN INS CO RRG INC Statement Contact CHARLES HALSTEAD-JOHNSON

Domiciled

C/O AON RISK SERVICES, INC., 1120 20TH STREET, N.W, WASHINGTON, DC 20036 Phone 202-862-5339

12907 SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC. Statement Contact KELLY BOURNE

Primary Line of Business Other Liability (Occurrence)

745 FORT STREET, SUITE 1100, HONOLULU, HI 96813-3810 Phone (808) 585-3584

13557 SIGMA RRG, INC. Statement Contact EMI SWAIM

HI

27 GAGE TERRACE BIGFORK, MT 59911-3544 Phone (406) 282-0170

13571 SELECT PROVIDERS INSURANCE RECIPROCAL EXCHANGE A RRG Statement Contact SHAMUS ROFF

Domiciled

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

14136 SELECT MD RRG Statement Contact BRENDA M. OLSON

Primary Line of Business Other Liability (Claims-made)

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 264-4719

12988 SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP Statement Contact REBECCA S. BOUDREAU

SC

ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441 Phone (843) 614-3134

12524 SCAFFOLD INDUSTRY INSURANCE COMPANY RISK RETENTION GROUP, INC. Statement Contact MARY CLAIRE GOFF

Domiciled

1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384

12511 SAMARITAN RISK RETENTION GROUP, INC. Statement Contact DAWN M. DINARDO

Primary Line of Business Other Liability (Occurrence)

201 MERCHANT STREET, SUITE 2400, HONOLULU, HI 96813-2929 Phone (808) 540-4312

11712 SAINT LUKE'S HLTH SYSTEM RRG Statement Contact ALICIA D. COLELLA

DC

58 EAST VIEW LANE, SUITE TWO, BARRE, VT 05641-5324 Phone (800) 226-0793

14135 RPX RRG Statement Contact NADINE TOMIYASU

Domiciled

1123 11TH AVENUE, SUITE 403A, HONOLULU, HI 96816-2433 Phone (303) 306-0002

12209 RESTORATION RISK RETENTION GROUP, INC. Statement Contact GEMMA AGUSTIN TUANQUI

Primary Line of Business Medical Professional Liability (Claims-made)

1180 SAM RITTENBERG BOULEVARD, SUITE 235, CHARLESTON, SC 29407-3384

Primary Line of Business Medical Professional Liability (Occurrence)

2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104 Phone (802) 223-2200

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Other Liability (Claims-made)

Domiciled

DC

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

11114 ST CHARLES INS CO RRG Statement Contact LEN T. LOGAN

3507 ROSEWOOD DRIVE COLUMBIA, SC 29205-3448 Phone (877) 872-7475

11688 ST LUKES HEALTH NETWORK INS CO RRG Statement Contact MARY B. DESRANLEAU

Phone (802) 264-4710

13993 STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC. Statement Contact KATIE GRAY

Phone (800) 226-0793

44075 STATES SELF-INSURERS RRG Statement Contact SHERYL ANN SATTLER

Phone (843) 614-3132

14026 SUNLAND RISK RETENTION GROUP, INC. Statement Contact LAURA LEE DURKIN

Phone (800) 872-7475 Phone (843) 573-4676

Phone (802) 652-1554

VT

Primary Line of Business Other Liability (Occurrence)

Domiciled

VT

Domiciled

SC

ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441 Primary Line of Business Medical Professional Liability (Claims-made)

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DE

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

SC

Primary Line of Business Other Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Occurrence)

Domiciled

VT

Primary Line of Business Other Liability (Occurrence)

Domiciled

SC

Primary Line of Business Other Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Other Liability (Occurrence)

Domiciled

DE

TWO WISCONSIN CIRCLE, FOURTH FLOOR, CHEVY CHASE, MD 20815-9913 Phone (301) 215-6423

10712 UNITED HOME INSURANCE CO A RRG Statement Contact DELISCA A. CHRISTIAN

Domiciled

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Phone (802) 371-2249

10020 UNITED EDUCATORS INS RRG INC Statement Contact KAREN LEE VERDON

Primary Line of Business Other Liability (Occurrence)

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

12280 UNITED CONTRACTORS INS CO INC RRG Statement Contact NICOLE S. HUBLER

NV

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 652-1556

11548 UNITED CENTRAL PA RRG Statement Contact SHERI TREMBLAY

Primary Line of Business Other Liability (Claims-made)

BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384 Phone (802) 371-2253

10084 TITLE INDUSTRY ASSURANCE CO RRG Statement Contact TRISHA L. DESRANLEAU

Domiciled

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-6269

11153 TITAN INS CO INC RRG Statement Contact SHAMUS ROFF

VT

2386 AIRPORT ROAD BARRE, VT 05641-8629 Phone (802) 371-2233

10152 THE HEALTHCARE UNDERWRITING CO RRG Statement Contact MARCY WATERFALL

Domiciled

1180 SAM RITTENBERG BOULEVARD, SUITE 235, CHARLESTON, SC 29407-3384

10113 TERRA INS CO RRG Statement Contact ABIGAIL M. BERNIER

Primary Line of Business Medical Professional Liability (Claims-made)

14362 NORTH FRANK LLOYD WRIGHT BOULEVARD, SUITE 1000, SCOTTSDALE, AZ 852608847

11669 SUPERIOR INS CO RRG Statement Contact ROBERT G. MEETZE

SC

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477 Phone (802) 264-4576

13135 SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC Statement Contact KELLY BOURNE

Domiciled

222 SOUTH NINTH STREET, SUITE 1300, MINNEAPOLIS, MN 55402-3332 Phone (612) 766-3000

10476 STICO MUT INS CO RRG Statement Contact BECKI MINOLI

Primary Line of Business Other Liability (Claims-made)

76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

Primary Line of Business Other Liability (Occurrence)

Domiciled

VT

Domiciled

VT

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-2110

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Warranty

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Company Name NAIC

Company Name

Address

12915 URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP Statement Contact ANDREW CARLTON

Phone (800) 226-0793

13988 UV INSURANCE RISK RETENTION GROUP, INC. Statement Contact CHRISTINA KAMAKA

Phone (808) 540-4305 Phone (843) 640-3170

13974 VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC. Statement Contact BRENDA M. OLSON

Phone (802) 264-4710

Phone (802) 864-2124

11796 YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP) Statement Contact ANITA M. PERKINS

Primary Line of Business Other Liability (Occurrence)

OK

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

MT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

DC

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Medical Professional Liability (Claims-made)

Domiciled

VT

Primary Line of Business Other Liability (Occurrence)

Domiciled

VT

Primary Line of Business Other Liability (Claims-made)

Domiciled

AZ

Domiciled

CO

Domiciled

VT

Domiciled

VT

9265 MADRAS COURT LITTLETON, CO 80130-4444 Phone (303) 263-0311

13154 WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP Statement Contact LISA H. MANLEY

Domiciled

2007 POOLE DRIVE HUNTSVILLE, AL 35810-3891

1850 NORTH CENTRAL AVENUE, SUITE 1700, PHOENIX, AZ 85004-4574 Phone (602) 427-3217

40940 WESTERN PACIFIC MUT INS CO RRG Statement Contact SHERLYN WILKINSON FARRELL

HI

140 KENNEDY DRIVE SOUTH BURLINGTON, VT 05403-6710 Phone (802) 922-9456

11978 WESTERN INS RRG INC Statement Contact KIMBERLY E. WACK

Domiciled

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Phone (802) 864-2111

14122 WESTERN CATHOLIC INSURANCE COMPANY RRG Statement Contact TRICIA L. ALGER

Primary Line of Business Other Liability (Claims-made)

76 SAINT PAUL STREET BURLINGTON, VT 05401-4470

11682 WELLSPAN RRG Statement Contact JENNIFER L. PETTENGILL

NV

201 S. MAIN STREET, SUITE 200, ANN ARBOR, MI 48104 Phone 734 996-2700

11802 WARREN RRG INC Statement Contact MARY B. DESRANLEAU

Domiciled

27 GAGE TERRACE BIGFORK, MT 59911-3544 Phone (406) 282-0170

13786 VIRGINIA SENIOR CARE RISK RETENTION GROUP Statement Contact PETER M FEENEY

Primary Line of Business Medical Professional Liability (Claims-made)

201 MERCHANT STREET, SUITE 2400, HONOLULU, HI 96813-2929

11063 VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP Statement Contact SUSAN MARIE URIE

5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

Phone (802) 371-2219

The most current FSRs must be verified by visiting www.demotech.com.

Primary Line of Business Other Liability (Claims-made)

100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946 Primary Line of Business Medical Professional Liability (Claims-made)

30 MAIN STREET, SUITE 450, BURLINGTON, VT 05401-8427 Primary Line of Business Medical Professional Liability (Claims-made)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups Analysis by Company


Risk Retention Groups - Assets NAIC

COMPANY

Cash and Invested Assets

Net Reinsurance

Other Assets

Total Assets

12934

ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP

$3,189,221

$0

$1,328,715

$4,517,936

12557

ACBG RISK RETENTION GROUP, LLC

$1,348,846

$0

$272,603

$1,621,449

12166

ADVANCED PHYSICIANS INS RRG INC

$1,306,816

$0

$277,190

$1,584,006

12252

AEGIS HEALTHCARE RRG, INC.

$2,176,456

$0

$1,764,248

$3,940,704

13677

AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP

$4,218,947

$0

$670,608

$4,889,555

13606

AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP

$1,380,365

$0

$548,300

$1,928,665

28380

AGRI INSURANCE EXCHANGE RRG

$13,713,125

$0

$130,631

$13,843,756

11965

ALLEGIANT INS CO INC A RRG

$9,605,109

$1,619,538

$305,099

$11,529,746

10023

ALLIANCE OF NONPROFITS FOR INS RRG

$46,064,072

$0

$8,375,889

$54,439,961

11710

ALLIED PROFESSIONALS INSURANCE COMPANY, RRG

$26,237,079

$93,390

$2,176,623

$28,507,092

12013

ALLIED SERVICES RISK RETENTION GROUP

$5,568,959

$0

$0

$5,568,959

10232

AMERICAN ASSOC OF OTHODONTISTS RRG

$31,944,854

$0

$1,555,058

$33,499,912

12631

AMERICAN BUILDERS INSURANCE COMPANY RRG, INC.

$1,133,658

$25,626

$14,043

$1,173,327

12300

AMERICAN CONTRACTORS INS CO RRG

$6,963,783

$0

$20,836,195

$27,799,978

10903

AMERICAN EXCESS INS EXCHANGE RRG

$397,571,208

$0

$6,550,234

$404,121,442

44202

AMERICAN FEED INDUSTRY INS CO RRG

$4,690,984

$0

$90,110

$4,781,094

11590

AMERICAN FOREST CASUALTY COMPANY RRG

$8,190,178

$0

$953,629

$9,143,807

25448

AMERICAN SAFETY RRG INC

$8,311,951

$0

$57,498,171

$65,810,122

11534

AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG

$14,096,318

$0

$938,039

$15,034,357

12171

AMERIGUARD RRG INC

$12,075,776

$0

$402,704

$12,478,480

11598

APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.

$67,550,099

$0

$23,545,834

$91,095,933

44148

ARCHITECTS & ENGINEERS INS CO RRG

$11,679,040

$0

$8,620,370

$20,299,410

13177

ARCOA RISK RETENTION GROUP, INC.

$10,727,418

$0

$1,609,851

$12,337,269

13580

ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP

$1,263,158

$0

$1,276,222

$2,539,380

12224

ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.

$2,020,385

$0

$21,090

$2,041,475

33677

ATTORNEYS INS MUTUAL OF ALABAMA INC

$14,824,423

$0

$415,182

$15,239,605

22670

ATTORNEYS INSURANCE MUTUAL RRG INC

$14,009,984

$0

$425,586

$14,435,570

10639

ATTORNEYS LIAB ASSUR SOCIETY INC RRG

$74,112,726

$0

$114,738,414

$188,851,140 $96,056,061

32450

ATTORNEYS LIAB PROTECTION SOC RRG

$82,879,245

$0

$13,176,816

13795

ATTPRO RRG RECIPROCAL RISK RETENTION GROUP

$1,429,235

$0

$76,233

$1,505,468

11033

AUTOMOTIVE UNDERWRITERS INS CO A RRG

$19,572,531

$0

$1,595,758

$21,168,289

10174

BAR VERMONT RISK RETENTION GROUP INC

$17,139,909

$0

$3,119,830

$20,259,739

12933

BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.

$21,035,025

$0

$13,825,835

$34,860,860

14169

BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC.

$515,240

$0

$14,931

$530,171

13010

BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP

$1,828,339

$0

$351,012

$2,179,351

13788

BROADLINE RISK RETENTION GROUP, INC.

$62,542,265

$0

$15,443,959

$77,986,224

44504

CALIFORNIA HEALTHCARE INS CO INC RRG

$99,114,327

$0

$16,529,566

$115,643,893

12180

CALIFORNIA MEDICAL GRP INS CO RRG

$10,809,748

$0

$3,286,883

$14,096,631

11825

CARE RRG, INC.

$9,028,372

$1,211,105

$1,721,350

$11,960,827

11544

CAREGIVERS UNITED LIAB INS CO RRG

$32,177,417

$0

$3,060,131

$35,237,548

12373

CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP

$42,142,150

$0

$38,185,667

$80,327,817

10808

CASSATT RISK RETENTION GROUP INC

$4,685,627

$0

$359,979

$5,045,606

13784

CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP

$1,010,830

$0

$91,326

$1,102,156

11694

CENTRAL PA PHYSICIANS RRG INC

$59,826,614

$0

$2,945,199

$62,771,813

11976

CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.

$12,656,028

$0

$2,954,495

$15,610,523

12167

CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG

$3,647,039

$110,162

$180,944

$3,938,145

11531

CHC CAS RRG

$36,735,080

$0

$5,368,842

$42,103,922

11839

CIRCLE STAR INS CO RRG

$2,034,281

$0

$8,597,875

$10,632,156

12172

CLAIM PROFESSIONALS LIAB INS CO RRG

$1,846,104

$0

$1,260,481

$3,106,585

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Assets NAIC

COMPANY

Cash and Invested Assets

Net Reinsurance

Other Assets

Total Assets $24,724,887

11992

CLARIAN HLTH RRG INC

$19,277,304

$0

$5,447,583

43770

CLINIC MUTUAL INSURANCE CO RRG

$5,313,947

$0

$178,896

$5,492,843

13756

CMIC RISK RETENTION GROUP

$3,256,424

$0

$420,511

$3,676,935

11668

COASTAL INS RRG INC

$47,284,223

$0

$7,358,331

$54,642,554

44598

COLLEGE LIABILITY INS CO A RECIP RRG

$10,233,713

$0

$2,080,169

$12,313,882

13613

COLLEGE RISK RETENTION GROUP, INC.

$10,783,587

$0

$259,847

$11,043,434

10803

COLUMBIA NATIONAL RRG INC

$1,708,833

$0

$37,383

$1,746,216

11864

COMCARE PRO INS RECIPROCAL RRG

$3,358,764

$0

$140,814

$3,499,578

11807

COMMUNITIES OF FAITH RRG INC

$13,881,635

$0

$578,541

$14,460,176

13893

COMMUNITY BLOOD CENTERS EXCH RRG

$22,614,772

$0

$1,199,629

$23,814,401

11536

COMMUNITY HEALTH ALLIANCE RECIP RRG

$119,437,323

$0

$7,548,994

$126,986,317

11259

COMMUNITY HOSPITAL RRG

$197,791,687

$0

$17,246,669

$215,038,356

10075

CONSUMER SPECIALTIES INS CO RRG

$4,341,976

$0

$1,327,805

$5,669,781

11798

CONTINUING CARE RRG, INC.

$1,478,755

$0

$3,750,649

$5,229,404

11603

CONTRACTORS INS CO OF NORTH AMER RRG

$35,112,495

$0

$5,770,070

$40,882,565

10341

CONTROLLED RISK INS CO OF VT RRG

$57,096,327

$0

$36,887,262

$93,983,589

12042

COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A RRG

$32,275,045

$0

$2,546,220

$34,821,265

10164

CPA MUTUAL INS CO OF AMERICA RRG

$17,270,279

$78,443

$4,983,022

$22,331,744

13720

CROSSFIT RISK RETENTION GROUP, INC.

$1,444,134

$0

$321,509

$1,765,643

11676

CRUDEN BAY RRG INC

$12,946,352

$0

$1,708,763

$14,655,115

13655

CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP

$6,329,819

$0

$4,788,338

$11,118,157

43125

DELAWARE PROFESSIONAL INSURANCE CO

$9,475,539

$0

$223,304

$9,698,843

13018

DOCTORS & SURGEONS NATIONAL RRG

$6,678,916

$0

$2,447,199

$9,126,115

11842

DUBOIS MEDICAL RRG

$7,681,648

$0

$11,159

$7,692,807

10115

EASTERN DENTISTS INS CO RRG

$39,714,076

$0

$5,196,291

$44,910,367

10125

ELITE TRANSPORTATION RRG INC

$11,332,453

$0

$2,716,584

$14,049,037

14163

EMERGENCY CAPITAL MANAGEMENT, LLC, RRG

$3,874,423

$0

$110,695

$3,985,118

12003

EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)

$11,838,930

$530,732

$10,053,300

$22,422,962

12015

EMERGENCY MEDICINE RRG INC

$9,145,123

$0

$2,576,457

$11,721,580

11714

EMERGENCY PHYSICIANS INS CO RRG

$36,005,495

$102,998

$5,919,271

$42,027,764

38466

EVERGREEN USA RRG INC

$9,240,781

$0

$6,233,409

$15,474,190

11840

FAIRWAY PHYSICIANS INS CO RRG

$16,777,424

$4,788,317

$5,817,479

$27,383,220

11698

FAITH AFFILIATED RRG INC

$7,063,311

$0

$195,450

$7,258,761

11801

FIRST KEYSTONE RISK RETENTION GROUP, INC.

$8,505,636

$0

$8,764,356

$17,269,992

11278

FIRST MEDICAL INS CO RRG

$111,962,217

$0

$988,634

$112,950,851

12625

FORT WAYNE MEDICAL SURETY COMPANY, RRG

$4,033,396

$0

$811,957

$4,845,353

10842

FRANKLIN CASUALTY INS CO RRG

$1,877,761

$0

$7,162,828

$9,040,589

$13,802,065

$0

$6,253,471

$20,055,536

$779,142

$0

$2,543,897

$3,323,039

$3,403,019

$0

$10,000,102

$13,403,121

12016

FREDERICKSBURG PROFESSIONAL RISK EXC

14032

GABLES RISK RETENTION GROUP, INC.

12000

GEISINGER INS CORP RRG

10163

GENERAL EASTERN SKI INS RRG INC

13782

GERIC INSURANCE RISK RETENTION GROUP, INC.

11948 10991 11145

$990,853

$0

$660,632

$1,651,485

$2,000,769

$0

$45,181

$2,045,950

GLOBAL HAWK INSURANCE COMPANY RRG

$8,800,829

$598,412

$1,922,664

$11,321,905

GLOBAL INTL INS CO INC A RRG

$18,351,469

$0

$1,328,857

$19,680,326

GOLDEN INS CO RRG

$3,638,885

$0

$1,360,588

$4,999,473

12512

GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.

$4,716,762

$0

$634,993

$5,351,755

13973

GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

$697,761

$0

$153,420

$851,181

11581

GRACO RRG INC

$580,661

$0

$899,485

$1,480,146

11941

GREEN HILLS INS CO RRG

$21,479,016

$0

$65,201

$21,544,217

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Assets NAIC

COMPANY

Cash and Invested Assets

Net Reinsurance

Other Assets

Total Assets

11696

GUARDIAN RRG INC

$5,226,706

$0

$632,516

$5,859,222

12014

GUTHRIE RRG

$38,145,282

$0

$421,031

$38,566,313

13057

HAMDEN ASSURANCE RRG, INC.

$2,204,165

$0

$75,087,521

$77,291,686

12236

HEALTH CARE CAS RRG INC

$14,823,218

$0

$2,509,263

$17,332,481

11813

HEALTH NETWORK PROVIDERS MUT INS CO

$6,933,696

$0

$486,624

$7,420,320

10080

HEALTH PROVIDERS INS RECIPROCAL RRG

$74,035,405

$0

$6,138,106

$80,173,511

11832

HEALTHCARE INDUSTRY LIABILITY RECIPROCAL INSURANCE COMPANY, RRG (HEALTHCAP RRG)

$18,145,417

$227,521

$16,787,345

$35,160,283

11998

HEARTLAND HEALTHCARE RECIP RRG

$14,241,761

$0

$286,625

$14,528,386

11097

HERITAGE WARRANTY INS RRG INC

$1,133,597

$0

$0

$1,133,597

11950

HOME CONSTRUCTION INS CO RRG

$5,810,362

$0

$235,939

$6,046,301

26797

HOUSING AUTHORITY RRG INC

$302,150,479

$0

$11,760,857

$313,911,336

41246

HOW INSURANCE COMPANY, A RISK RETENTION GROUP

$121,442,956

$0

$2,047,995

$123,490,951

11268

ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP

$279,572,941

$5,237,300

$19,730,251

$304,540,492

12018

INDEMNITY INSURANCE CORPORATION, RRG

$8,127,219

$191,300

$42,061,625

$50,380,144

11692

INDIANA HEALTHCARE RECIP RRG

$28,466,448

$0

$294,099

$28,760,547

12320

INNOVATIVE PHYSICIAN SOLUTIONS RRG

$5,445,052

$0

$1,112,902

$6,557,954

12594

J.M. WOODWORTH RRG, INC.

$12,665,939

$1,042,397

$3,209,228

$16,917,564

11589

JAMESTOWN INS CO RRG

$2,650,875

$0

$3,297,385

$5,948,260

11872

KENTUCKIANA MEDICAL RECIPROCAL RRG

$49,008,692

$0

$5,014,706

$54,023,398

11939

KENTUCKY HOSPITAL INS CO RRG

$18,174,599

$0

$2,575,177

$20,749,776

11803

LAKE STREET RRG INC

$2,025,787

$0

$163,253

$2,189,040

13014

LANCET INDEMNITY RISK RETENTION GROUP, INC.

$8,742,792

$0

$4,217,785

$12,960,577

11500

LENDERS PROTECTION ASSUR CO RRG

$2,371,664

$0

$95,664

$2,467,328

11947

LEWIS & CLARK LTC RRG, INC

$9,525,379

$1,696,821

$5,175,661

$16,397,861

12627

LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY

$3,901,814

$0

$2,304,203

$6,206,017

11958

LIFE SERVICES NETWORK RECIP INS RRG

$7,163,782

$0

$592,073

$7,755,855

14084

LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP

11684

LVHN RRG

$501,451

$0

$2,022

$503,473

$36,274,440

$0

$5,145,000

$41,419,440

12554

MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP

$2,449,013

$0

$1,457,651

$3,906,664

11117

MARATHON FIN INS CO INC RRG

$2,870,218

$0

$12,472,402

$15,342,620

10697

MCIC VERMONT INC RRG

$35,296,988

$0

$158,409,290

$193,706,278

12355

MD RISK RETENTION GROUP, INC.

$14,076,318

$238,841

$284,756

$14,599,915

26257

MEDAMERICA MUTUAL RRG INC

$66,868,084

$0

$10,746,017

$77,614,101

13589

MEDPRO RRG RISK RETENTION GROUP

$4,662,531

$0

$3,587,086

$8,249,617

10124

MEDSTAR LIABILITY LTD INS CO INC RRG

$3,560,778

$0

$534,883

$4,095,661

44237

MENTAL HEALTH RISK RETENTION GROUP

$23,413,277

$0

$1,743,000

$25,156,277

11999

MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP

$4,567,244

$0

$4,721,131

$9,288,375

12147

MIDWEST PROVIDER INSURANCE COMPANY, RRG

$6,839,216

$0

$1,581,804

$8,421,020

14062

MMIC RRG, INC.

$199,542

$0

$400,216

$599,758

13812

MOUNTAIN LAKE RISK RETENTION GROUP, INC.

$586,241

$0

$1,184,405

$1,770,646

11547

MOUNTAIN LAUREL RRG INC

$10,336,706

$0

$4,451,314

$14,788,020

11585

MOUNTAIN STATES HEALTHCARE RECIP RRG

$103,478,087

$0

$1,693,036

$105,171,123

12779

MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.

$26,380,240

$0

$2,148,520

$28,528,760

11806

NATIONAL ASSISTED LIVING RRG, INC.

$7,035,621

$0

$435,746

$7,471,367

12235

NATIONAL BUILDERS & CONTRACTORS INS

$4,190,731

$0

$806,011

$4,996,742

10083

NATIONAL CATHOLIC RRG

$57,371,482

$0

$7,171,096

$64,542,578

12293

NATIONAL CONTRACTORS INS CO INC RRG

$6,313,214

$3,711,444

$2,437,099

$12,461,757

36072

NATIONAL GUARDIAN RRG INC

$11,279,083

$652,818

$4,564,077

$16,495,978

44016

NATIONAL HOME INSURANCE CO RRG

$45,717,637

$0

$2,352,561

$48,070,198

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Assets NAIC

COMPANY

Cash and Invested Assets

Net Reinsurance

Other Assets

Total Assets $8,718,645

11197

NATIONAL INDEPENDENT TRUCKERS IC RRG

$4,591,906

$298,937

$3,827,802

12529

NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.

$4,954,851

$0

$1,551,042

$6,505,893

10234

NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)

$9,073,093

$87,664

$283,054

$9,443,811

14130

NCMIC RISK RETENTION GROUP, INC.

$1,883,384

$0

$0

$1,883,384

12539

NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.

$3,413,277

$0

$147,839

$3,561,116

13792

NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP

$9,508,854

$0

$1,516,325

$11,025,179

12532

NEW STAR RISK RETENTION GROUP, INC.

$7,459,162

$0

$253,766

$7,712,928

12275

NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG

$9,950,440

$0

$5,620,482

$15,570,922

13059

NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP

$9,088,752

$0

$1,000,950

$10,089,702

10752

NOVUS INS CO RRG

$2,690,332

$0

$1,502,153

$4,192,485

13644

OASIS RECIPROCAL RISK RETENTION GROUP

$6,160,914

$0

$1,592,984

$7,753,898

12845

OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC.

$2,151,169

$0

$805,837

$2,957,006

12189

OCEANUS INS CO A RRG

$60,007,866

$0

$8,451,779

$68,459,645

13062

OLYMPIA RISK RETENTION GROUP, INC.

44121

OMS NATL INS CO RRG

$779,202

$0

$923,457

$1,702,659

$330,670,882

$82,346

$44,306,216

$375,059,444

10353

OOIDA RISK RETENTION GROUP INC

$40,159,461

$0

$20,151,124

$60,310,585

44105

OPHTHALMIC MUTUAL INS CO RRG

$224,664,031

$0

$11,048,277

$235,712,308

12183

ORANGE COUNTY MEDICAL RECIP INS RRG

$4,447,395

$0

$1,322,639

$5,770,034

10171

ORDINARY MUTUAL A RRG CORP

$21,212,680

$0

$384,971

$21,597,651

11575

PACE RRG INC

$4,928,422

$5,442,845

$2,275,045

$12,646,312

44130

PARATRANSIT INSURANCE COMPANY, RRG

$21,564,059

$0

$1,704,719

$23,268,778

11973

PCH MUTUAL INSURANCE COMPANY, RRG

$6,988,400

$113,661

$849,242

$7,951,303

11846

PEACE CHURCH RRG INC

$20,354,192

$0

$1,939,254

$22,293,446

11772

PEDIATRICANS INS RRG OF AMER

$638,516

$0

$110,984

$749,500

11587

PELICAN INS RRG

$17,155,459

$0

$226,600

$17,382,059

12004

PHOEBE RECIPROCAL RRG

$4,734,369

$0

$231,380

$4,965,749

12995

PHP RISK RETENTION GROUP, LIMITED

$15,791,636

$0

$2,665,666

$18,457,302

13810

PHYSICIANS BENEFIT RESOURCES RISK RETENTION GROUP, INC.

$779,883

$0

$76,500

$856,383

13995

PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.

$1,298,243

$0

$903,202

$2,201,445

12746

PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.

$5,456,183

$0

$958,662

$6,414,845

12918

PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP

$4,159,403

$0

$362,296

$4,521,699

11514

PHYSICIANS PROFESSIONAL LIABILTY RRG

$38,924,889

$2,656

$3,175,602

$42,103,147

10934

PHYSICIANS REIMBURSEMENT RRG

$25,779,716

$0

$2,144,922

$27,924,638

11513

PHYSICIANS SPECIALTY LTD RRG

$9,470,767

$0

$2,299,214

$11,769,981

14108

PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

$1,155,589

$0

$600,913

$1,756,502

13582

PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP

$8,151,536

$0

$17,366

$8,168,902

12348

PINE TREE INS RECIPROCAL RRG

$13,611,840

$0

$1,651,471

$15,263,311

12198

PINELANDS INS CO RRG INC

$290,936

$0

$4,350,141

$4,641,077

11980

PINNACLE CONSORTIUM OF HIGHER ED RRG

$5,908,450

$0

$119,791

$6,028,241

11858

PINNACLE RRG INC

$2,536,927

$0

$2,214

$2,539,141

14205

PLICO RISK RETENTION GROUP, INC.

$1,597,579

$0

$0

$1,597,579

11809

PONCE DE LEON LTC RRG, INC.

$13,935,919

$239,457

$1,060,808

$15,236,184

44083

PREFERRED PHYSICIANS MEDICAL RRG

$190,069,072

$0

$4,749,676

$194,818,748

12613

PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP

$10,245,052

$0

$1,948,994

$12,194,046

13179

PROAIR RISK RETENTION GROUP, INC.

$88,632

$0

$622,891

$711,523

11671

PROBUILDERS SPECIALTY INS CO RRG

$14,859,716

$0

$38,685,595

$53,545,311

10840

PROFESSIONAL MEDICAL INS RRG INC

$323,943

$0

$14,238

$338,181

12608

PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

$2,345,620

$0

$163,567

$2,509,187

13067

PROFESSIONALS RISK RETENTION GROUP, INC.

$2,237,177

$0

$1,994,209

$4,231,386

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Assets NAIC

COMPANY

Cash and Invested Assets

Net Reinsurance

Other Assets

Total Assets

11350

PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG

$5,397,553

$0

$109,273

$5,506,826

13736

RED ROCK RISK RETENTION GROUP, INC.

$12,090,850

$0

$1,177,235

$13,268,085

12010

REGIONAL HEALTH INS CO RRG

$541,462

$0

$55,408

$596,870

10691

RESIDENTIAL INS CO INC A RRG

$2,113,230

$0

$418,183

$2,531,413

12209

RESTORATION RISK RETENTION GROUP, INC.

$44,049,099

$0

$5,092,376

$49,141,475

14135

RPX RRG

$4,029,616

$0

$0

$4,029,616

11712

SAINT LUKE'S HLTH SYSTEM RRG

$22,252,763

$0

$301,456

$22,554,219

12511

SAMARITAN RISK RETENTION GROUP, INC.

$18,057,875

$0

$5,282,314

$23,340,189

11808

SCHUYKILL CROSSING RECIPROCAL RRG

$25,961,002

$0

$3,269,182

$29,230,184

12988

SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP

$8,891,081

$0

$1,176,267

$10,067,348

11267

SECURITY AMERICA RRG INC

$3,239,853

$0

$709,239

$3,949,092

14136

SELECT MD RRG

$1,679,183

$0

$612,269

$2,291,452

12005

SENTINEL ASSUR RRG INC

$15,212,183

$0

$3,990,691

$19,202,874

13557

SIGMA RRG, INC.

$9,511,140

$0

$1,436,643

$10,947,783

12907

SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.

$49,213,550

$0

$13,149,292

$62,362,842

10754

SPIRIT MOUNTAIN INS CO RRG INC

$5,254,645

$0

$425,187

$5,679,832

11114

ST CHARLES INS CO RRG

$10,477,074

$0

$521,350

$10,998,424

11688

ST LUKES HEALTH NETWORK INS CO RRG

$43,162,150

$0

$5,294,816

$48,456,966

13993

STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.

$262,939

$0

$473,722

$736,661

44075

STATES SELF-INSURERS RRG

$19,972,173

$0

$615,328

$20,587,501

10476

STICO MUT INS CO RRG

$17,794,939

$280,199

$2,744,172

$20,819,310

13135

SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC

$889,695

$0

$38,849

$928,544

14026

SUNLAND RISK RETENTION GROUP, INC.

$217,539

$0

$3,672,342

$3,889,881

11669

SUPERIOR INS CO RRG

$12,877,546

$0

$5,565,419

$18,442,965

10113

TERRA INS CO RRG

$24,845,794

$0

$7,034,430

$31,880,224

10152

THE HEALTHCARE UNDERWRITING CO RRG

$14,752,340

$0

$95,576,748

$110,329,088

11153

TITAN INS CO INC RRG

$31,430,484

$0

$1,264,659

$32,695,143

10084

TITLE INDUSTRY ASSURANCE CO RRG

$4,896,523

$0

$2,506,709

$7,403,232

11548

UNITED CENTRAL PA RRG

$20,334,549

$0

$2,196,616

$22,531,165

12280

UNITED CONTRACTORS INS CO INC RRG

$16,081,012

$64,400

$6,992,628

$23,138,040

10020

UNITED EDUCATORS INS RRG INC

$642,216,754

$0

$27,819,279

$670,036,033

10712

UNITED HOME INSURANCE CO A RRG

$2,923,036

$0

$1,207,087

$4,130,123

$2,044,653

$0

$238,823

$2,283,476

$182,843

$0

$640,000

$822,843

12915

URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP

13988

UV INSURANCE RISK RETENTION GROUP, INC.

11063

VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP

$2,744,313

$0

$6,457

$2,750,770

13974

VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.

$1,498,535

$0

$687,237

$2,185,772

13786

VIRGINIA SENIOR CARE RISK RETENTION GROUP

$2,756,393

$0

$56,230

$2,812,623

11802

WARREN RRG INC

$7,417,875

$0

$409,746

$7,827,621

11682

WELLSPAN RRG

$16,036,526

$0

$9,527,569

$25,564,095

14122

WESTERN CATHOLIC INSURANCE COMPANY RRG

$2,183,341

$0

$160,797

$2,344,138

11978

WESTERN INS RRG INC

40940

WESTERN PACIFIC MUT INS CO RRG

$510,255

$0

$7,860

$518,115

$130,484,098

$0

$3,168,402

$133,652,500

13154

WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP

$2,664,344

$0

$184,794

$2,849,138

11796

YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)

$15,923,562

$0

$4,662,312

$20,585,874

TOTAL - ALL RRGs $6,306,046,413

The most current FSRs must be verified by visiting www.demotech.com.

$28,769,330

$1,412,807,831

$7,747,623,574

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

Loss and LAE Reserve Position (000's omitted)

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

12934 ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP

$301,281

$454,558

$2,151,668

$2,907,507

$1,610,429

($213)

$213

$0

12557 ACBG RISK RETENTION GROUP, LLC

$13,400

$0

$24,739

$38,139

$1,583,310

$0

($8)

($202)

$0

$201,626

$36,983

$238,609

$1,345,397

$0

$1,674,714

$708,397

$428,397

$2,811,508

$1,129,196

$1

($97)

($563)

13677 AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP

$579,718

$187,213

$1,147,201

$1,914,132

$2,975,423

$1

$1

$0

13606 AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP

$961,886

$257,500

$2,580

$1,221,966

$706,699

($849)

$0

($300)

28380 AGRI INSURANCE EXCHANGE RRG

$1,970,000

$363,274

$169,246

$2,502,520

$11,341,236

($31)

($242)

($336)

11965 ALLEGIANT INS CO INC A RRG

$6,562,712

$0

$2,336,676

$8,899,388

$2,630,358

$0

$1,543

$1,490

10023 ALLIANCE OF NONPROFITS FOR INS RRG

$20,041,984

$6,235,460

$1,558,967

$27,836,411

$26,603,550

$46

($301)

($1,745)

11710 ALLIED PROFESSIONALS INSURANCE COMPANY, RRG

$6,564,181

$7,882,391

$1,949,648

$16,396,220

$12,110,872

($50)

($895)

($964)

12013 ALLIED SERVICES RISK RETENTION GROUP

$2,647,470

$0

$228,913

$2,876,383

$2,692,576

($160)

$189

$870

10232 AMERICAN ASSOC OF OTHODONTISTS RRG

$19,843,051

$2,423,036

$876,746

$23,142,833

$10,357,079

($1)

($4,633)

($5,798)

$113,004

$1,374

$303,069

$417,447

$755,880

($1)

($1)

($50)

12300 AMERICAN CONTRACTORS INS CO RRG

$0

$0

$20,881,233

$20,881,233

$6,918,745

$0

$0

$0

10903 AMERICAN EXCESS INS EXCHANGE RRG

$148,744,140

$21,364,536

$12,975,017

$183,083,693

$221,037,749

($19,563)

($16,983)

($47,752)

44202 AMERICAN FEED INDUSTRY INS CO RRG

$1,282,596

$0

$90,609

$1,373,205

$3,407,889

($289)

($889)

($1,719)

11590 AMERICAN FOREST CASUALTY COMPANY RRG

$4,808,607

$673,262

$292,457

$5,774,326

$3,369,481

$0

($410)

($1,907)

25448 AMERICAN SAFETY RRG INC

$5,234,517

$4,987,809

$46,995,290

$57,217,616

$8,592,506

($46,114)

($2,424)

($444)

11534 AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG

$5,928,757

$1,405,702

$3,288,966

$10,623,425

$4,410,932

$189

$355

$73

12171 AMERIGUARD RRG INC

$3,185,643

$28,000

$1,848,778

$5,062,421

$7,416,059

($397)

($1,896)

($3,115)

11598 APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.

$47,143,792

$17,492,833

$2,068,214

$66,704,839

$24,391,094

$0

($1,038)

($2,579)

44148 ARCHITECTS & ENGINEERS INS CO RRG

$3,660,784

$3,122,076

$4,342,518

$11,125,378

$9,174,032

($290)

($136)

$53

13177 ARCOA RISK RETENTION GROUP, INC.

$8,744,206

$0

$396,550

$9,140,756

$3,196,513

$1,669

$1,108

$2,540

$137,500

$353,229

$143,314

$634,043

$1,905,337

$0

($75)

($25)

$0

$0

$0

12166 ADVANCED PHYSICIANS INS RRG INC 12252 AEGIS HEALTHCARE RRG, INC.

12631 AMERICAN BUILDERS INSURANCE COMPANY RRG, INC.

13580 ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP 14005 ARTISAN CONTRACTORS INSURANCE COMPANY RISK RETENTION GROUP, LLC 12224 ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC. 33677 ATTORNEYS INS MUTUAL OF ALABAMA INC

$607,551

$0

$398,900

$1,006,451

$1,035,024

$0

$127

$717

$4,644,000

$1,170,885

$1,267,160

$7,082,045

$8,157,560

($42)

($1,881)

($3,230)

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

Loss and LAE Reserve Position (000's omitted)

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

22670 ATTORNEYS INSURANCE MUTUAL RRG INC

$6,387,539

$0

$77,567

$6,465,106

$7,970,464

($1)

$1,662

$1,087

10639 ATTORNEYS LIAB ASSUR SOCIETY INC RRG

$52,888,637

$11,679,299

$62,528,246

$127,096,182

$61,754,958

$418

($1,017)

($1,464)

32450 ATTORNEYS LIAB PROTECTION SOC RRG

$46,189,194

$14,487,675

$4,153,345

$64,830,214

$31,225,847

($2,438)

($1,543)

($7,956)

$2,411

$2,896

$64,705

$70,012

$1,435,456

$1

$0

$0

$0

$11,882,525

$1,096,517

$12,979,042

$8,189,247

$0

$0

$0

$0

$71

$0

13795 ATTPRO RRG RECIPROCAL RISK RETENTION GROUP 11033 AUTOMOTIVE UNDERWRITERS INS CO A RRG 13791 AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC. 10174 BAR VERMONT RISK RETENTION GROUP INC

$4,782,998

$553,961

$1,603,954

$6,940,913

$13,318,826

($24)

($845)

($1,459)

12933 BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.

$15,825,179

$2,609,219

$12,339,607

$30,774,005

$4,086,855

$0

($1,096)

($815)

$0

$3,441

$19,338

$22,779

$507,392

$0

$0

$0

$44,384

$902,090

$143,619

$1,090,093

$1,089,258

$1

$0

$0

13788 BROADLINE RISK RETENTION GROUP, INC.

$54,408,223

$0

$166,541

$54,574,764

$23,411,460

($828)

($3,839)

$0

44504 CALIFORNIA HEALTHCARE INS CO INC RRG

$55,937,813

$7,418,996

$8,627,650

$71,984,459

$43,659,434

($430)

($6,639)

($15,472)

12180 CALIFORNIA MEDICAL GRP INS CO RRG

$7,292,279

$2,163,120

($270,324)

$9,185,075

$4,911,556

$576

11825 CARE RRG, INC.

$4,488,232

$1,898,611

$706,613

$7,093,456

$4,867,371

$0

($787)

($1,286)

11544 CAREGIVERS UNITED LIAB INS CO RRG

$9,572,983

$3,000,410

$945,962

$13,519,355

$21,718,192

($2,978)

($2,361)

($4,384)

12373 CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP

$9,024,004

$3,244,986

$34,864,083

$47,133,073

$33,194,744

$0

($238)

($781)

10808 CASSATT RISK RETENTION GROUP INC

$382,040

$0

$961,161

$1,343,201

$3,702,405

($67)

($1)

($436)

13784 CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP

$17,975

$10,000

$43,684

$71,659

$1,030,497

($56)

($6)

$0

11694 CENTRAL PA PHYSICIANS RRG INC

$32,751,296

$6,819,393

$2,930,993

$42,501,682

$20,270,131

($1)

$5,749

($1,256)

11976 CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.

$7,023,892

$1,685,815

$377,062

$9,086,769

$6,523,754

$56

($632)

($1,738)

$254,978

$444,461

$86,611

$786,050

$3,152,095

($75)

($27)

($82)

$0

($225)

($541)

($749)

($2,096)

($1,709)

$0

$387

$526

14169 BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC. 13010 BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP

12167 CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG 11065 CHATTAHOOCHEE RRG CAPTIVE INSURANCE COMPANY 11531 CHC CAS RRG

$24,610,626

$4,748,245

$1,031,117

$30,389,988

$11,713,934

12308 CIMARRON INSURANCE EXCHANGE RRG 11839 CIRCLE STAR INS CO RRG

$377,696

$400,490

$8,508,133

$9,286,319

$1,345,837

$0

$0

$0

12172 CLAIM PROFESSIONALS LIAB INS CO RRG

$752,327

$219,866

$684,246

$1,656,439

$1,450,146

$56

($86)

($73)

$0

$0

$22,292,029

$22,292,029

$2,432,858

$270

$0

$0

11992 CLARIAN HLTH RRG INC

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

Loss and LAE Reserve Position (000's omitted)

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

43770 CLINIC MUTUAL INSURANCE CO RRG

$139,148

$30,955

$22,468

$192,571

$5,300,272

$39

($187)

($336)

13756 CMIC RISK RETENTION GROUP

$23,434

$73,345

$498,838

$595,617

$3,081,318

$0

$0

$0

11668 COASTAL INS RRG INC

$20,433,788

$3,057,792

$8,549,388

$32,040,968

$22,601,586

$215

($3,319)

($5,336)

44598 COLLEGE LIABILITY INS CO A RECIP RRG

$2,893,083

$0

$70,869

$2,963,952

$9,349,931

$297

($886)

($535)

13613 COLLEGE RISK RETENTION GROUP, INC.

$5,791,625

$797,114

$137,849

$6,726,588

$4,316,846

($100)

($518)

($335)

$0

$382,554

$221,901

$604,455

$1,141,761

$0

$0

$0

$547,358

$145,263

$54,992

$747,613

$2,751,965

$210

$306

($99)

11807 COMMUNITIES OF FAITH RRG INC

$1,247,290

$684,964

$79,273

$2,011,527

$12,448,649

($70)

($482)

($297)

13893 COMMUNITY BLOOD CENTERS EXCH RRG

$6,555,181

$1,420,563

$2,983,960

$10,959,704

$12,854,697

$0

($2,002)

($3,403)

11536 COMMUNITY HEALTH ALLIANCE RECIP RRG

$56,723,932

$5,686,824

$47,444,796

$109,855,552

$17,130,765

$211

($332)

$8,655

11259 COMMUNITY HOSPITAL RRG

$117,625,884

$17,770,583

$10,229,694

$145,626,161

$69,412,194

$1,231

($8,363)

($12,245)

10075 CONSUMER SPECIALTIES INS CO RRG

$1,779,453

$223,549

$324,055

$2,327,057

$3,342,724

$139

($428)

($692)

11798 CONTINUING CARE RRG, INC.

$1,036,002

$821,850

$380,707

$2,238,559

$2,990,845

($102)

$88

$0

11603 CONTRACTORS INS CO OF NORTH AMER RRG

$22,720,648

$453,960

$862,204

$24,036,812

$16,845,753

($390)

$10,900

$5,033

10341 CONTROLLED RISK INS CO OF VT RRG

$20,365,262

$8,133,542

$35,134,757

$63,633,561

$30,350,028

$0

($1,103)

($2,414)

10164 CPA MUTUAL INS CO OF AMERICA RRG

$8,388,787

$829,851

$2,832,564

$12,051,202

$10,280,542

($234)

($1,204)

($2,213)

13720 CROSSFIT RISK RETENTION GROUP, INC.

$197,774

$440,844

$198,064

$836,682

$928,961

($23)

$0

$0

11676 CRUDEN BAY RRG INC

$8,794,380

$1,554,247

$803,374

$11,152,001

$3,503,114

$560

($3,044)

($1,637)

13655 CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP

$1,978,017

$2,452,225

$3,488,695

$7,918,937

$3,199,220

$1

$734

$0

43125 DELAWARE PROFESSIONAL INSURANCE CO

$4,905,697

$502,243

$114,388

$5,522,328

$4,176,515

$1

($1,641)

($3,305)

13018 DOCTORS & SURGEONS NATIONAL RRG

$2,923,743

$2,444,146

$1,129,433

$6,497,322

$2,628,793

($73)

$2

$257

11842 DUBOIS MEDICAL RRG

$2,774,366

$195,416

$11,525

$2,981,307

$4,711,500

$19

($45)

$26

10115 EASTERN DENTISTS INS CO RRG

$21,508,864

$4,198,599

$1,917,255

$27,624,718

$17,285,648

$0

($3,877)

($6,457)

10125 ELITE TRANSPORTATION RRG INC

$5,309,625

$1,534,258

$4,906,582

$11,750,465

$2,298,572

($122)

($167)

$34

12003 EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)

$8,287,261

$793,617

$6,694,259

$15,775,137

$6,647,825

$454

$6,668

$6,142

12015 EMERGENCY MEDICINE RRG INC

$3,529,672

$573,235

$727,654

$4,830,561

$6,891,019

$692

$18

($19,909)

11714 EMERGENCY PHYSICIANS INS CO RRG

$25,675,855

$6,262,700

$1,714,490

$33,653,045

$8,374,719

$300

$1,701

$1,924

38466 EVERGREEN USA RRG INC

$6,657,350

$1,938,825

$788,318

$9,384,493

$6,089,697

$114

($1,089)

$637

10803 COLUMBIA NATIONAL RRG INC 11864 COMCARE PRO INS RECIPROCAL RRG

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

Loss and LAE Reserve Position (000's omitted)

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

11840 FAIRWAY PHYSICIANS INS CO RRG

$16,644,497

$4,641,420

$1,144,720

$22,430,637

$4,952,583

$13

$7,038

$4,366

11698 FAITH AFFILIATED RRG INC

$2,459,519

$148,169

$73,449

$2,681,137

$4,577,624

($63)

$721

$1,043

11801 FIRST KEYSTONE RISK RETENTION GROUP, INC.

$8,888,121

$4,930,092

$879,345

$14,697,558

$2,572,434

$990

$1,654

$3,725

11278 FIRST MEDICAL INS CO RRG

$42,735,178

$0

$95,103

$42,830,281

$70,120,570

$261

($7,563)

($14,742)

12625 FORT WAYNE MEDICAL SURETY COMPANY, RRG

$1,283,518

$1,139,026

$286,141

$2,708,685

$2,136,668

($206)

10842 FRANKLIN CASUALTY INS CO RRG

$6,707,373

$0

$131,448

$6,838,821

$2,201,768

($374)

$323

($208)

12016 FREDERICKSBURG PROFESSIONAL RISK EXC

$7,674,981

$1,049,286

$82,250

$8,806,517

$11,249,019

$87

($641)

($1,632)

14032 GABLES RISK RETENTION GROUP, INC.

$470,781

$1,104,616

$44,076

$1,619,473

$1,703,566

$0

($640)

($459)

12000 GEISINGER INS CORP RRG

$485,000

$0

$1,397,620

$1,882,620

$11,520,501

$0

$0

$0

10163 GENERAL EASTERN SKI INS RRG INC

$404,396

$0

$171,059

$575,455

$1,076,030

$108

($158)

($116)

$379

$36,712

$1,000

$38,091

$2,007,859

$0

$0

$0

$2,548,318

$3,778,026

$131,686

$6,458,030

$4,863,875

($488)

$268

$33

$0

$0

$881,692

$881,692

$18,798,634

$0

$0

$0

$733,697

$1,773,602

$272,504

$2,779,803

$2,219,670

$234

$69

$728

$4,111,005

$536,148

$110,320

$4,757,473

$594,282

$1,543

$1,169

$443

13973 GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

$0

$136,057

$202,944

$339,001

$512,180

$0

$0

$0

11581 GRACO RRG INC

$0

$252,850

$716,733

$969,583

$510,563

$0

$0

$0

11941 GREEN HILLS INS CO RRG

$7,824,645

$0

$1,403,857

$9,228,502

$12,315,715

$806

($1,438)

($3,354)

11696 GUARDIAN RRG INC

$1,345,319

$520,595

$80,701

$1,946,615

$3,912,607

($204)

($676)

($756)

12014 GUTHRIE RRG

$24,098,963

$25,537

$115,284

$24,239,784

$14,326,529

$661

($6,770)

($7,573)

$0

$0

$75,758,003

$75,758,003

$1,533,683

$0

$0

$0

12236 HEALTH CARE CAS RRG INC

$5,406,319

$1,326,256

$8,873,320

$15,605,895

$1,726,586

($122)

($454)

($801)

11813 HEALTH NETWORK PROVIDERS MUT INS CO

$3,122,336

$291,115

$1,373,549

$4,787,000

$2,633,320

$0

($896)

($1,394)

10080 HEALTH PROVIDERS INS RECIPROCAL RRG

$27,646,253

$5,993,950

$1,138,716

$34,778,919

$45,394,592

$88

($3,676)

($10,100)

11832 HEALTHCARE INDUSTRY LIABILITY RECIPROCAL INSURANCE COMPANY, RRG (HEALTHCAP RRG)

$8,173,707

$1,660,492

$16,005,399

$25,839,598

$9,320,685

$3

$298

$170

$0

($1,514)

($5,846)

13782 GERIC INSURANCE RISK RETENTION GROUP, INC. 11948 GLOBAL HAWK INSURANCE COMPANY RRG 10991 GLOBAL INTL INS CO INC A RRG 11145 GOLDEN INS CO RRG 12512 GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.

13057 HAMDEN ASSURANCE RRG, INC.

11683 HEALTHCARE PROVIDERS INS CO RRG 11998 HEARTLAND HEALTHCARE RECIP RRG 11097 HERITAGE WARRANTY INS RRG INC

$5,707,388

$1,456,078

$266,470

$7,429,936

$7,098,450

($19)

($730)

($1,438)

$5,100

$385,256

$109,922

$500,278

$633,319

($72)

($161)

($67)

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

Loss and LAE Reserve Position (000's omitted)

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

$2,985,163

$4,350

$921,974

$3,911,487

$2,134,814

$0

($297)

($476)

$100,792,878

$13,237,343

$19,548,915

$133,579,136

$180,332,200

($1,998)

($31,903)

($51,087)

41246 HOW INSURANCE COMPANY, A RISK RETENTION GROUP

$1,742,240

$0

$11,834,669

$13,576,909

$109,914,041

$96

$23,459

$44,592

11268 ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP

$56,338,755

$9,343,950

$18,891,530

$84,574,235

$219,966,257

($4,887)

($9,333)

($28,577)

12018 INDEMNITY INSURANCE CORPORATION, RRG

$15,379,226

$15,920,279

$3,633,995

$34,933,500

$15,446,644

$449

($1,235)

$96

11692 INDIANA HEALTHCARE RECIP RRG

$12,584,627

$2,473,352

$600,917

$15,658,896

$13,101,651

($38)

($2,446)

($2,708)

12320 INNOVATIVE PHYSICIAN SOLUTIONS RRG

$2,167,121

$0

$1,936,188

$4,103,309

$2,454,645

$344

12594 J.M. WOODWORTH RRG, INC.

$9,209,556

$3,173,483

$98,667

$12,481,706

$4,435,859

($1)

$2,478

$3,491

11589 JAMESTOWN INS CO RRG

$2,482,996

$1,177,408

$3,226,563

$6,886,967

($938,707)

($111)

($819)

($1,110)

$0

($471)

($754)

11950 HOME CONSTRUCTION INS CO RRG 26797 HOUSING AUTHORITY RRG INC

12159 JOLIET AREA RRG CAPTIVE INSURANCE COMPANY 11872 KENTUCKIANA MEDICAL RECIPROCAL RRG

$24,909,134

$2,980,852

$105,865

$27,995,851

$26,027,547

$0

($5,486)

($8,737)

11939 KENTUCKY HOSPITAL INS CO RRG

$8,381,029

$1,414,286

$1,825,468

$11,620,783

$9,128,993

$202

($1,544)

($1,366)

$566,095

$156,991

$62,048

$785,134

$1,403,906

$0

($77)

($828)

$5,247,084

$3,740,115

$697,333

$9,684,532

$3,276,045

$669

$186

$76

$0

$0

$77,303

$77,303

$2,390,025

$0

$0

$0

11947 LEWIS & CLARK LTC RRG, INC

$11,344,038

$2,921,679

$302,416

$14,568,133

$1,829,728

$1

$6,905

$4,945

12627 LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY

$4,538,704

$184,923

$422,009

$5,145,636

$1,060,382

$557

$870

$386

11958 LIFE SERVICES NETWORK RECIP INS RRG

$2,092,228

$578,773

$160,208

$2,831,209

$4,924,646

$150

$33

($195)

14084 LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP

$0

$14

$1,323

$1,337

$502,136

$0

$0

$0

11684 LVHN RRG

$0

$0

$36,419,440

$36,419,440

$5,000,000

$1,267

$0

$0

$1,177,260

$847,476

$431,900

$2,456,636

$1,450,028

($100)

($287)

($117)

$60,000

$299,647

$12,840,342

$13,199,989

$2,142,631

$103

($265)

($175)

10697 MCIC VERMONT INC RRG

$21,388,517

$23,210,000

$137,828,901

$182,427,418

$11,278,860

$244

$4

$3

12355 MD RISK RETENTION GROUP, INC.

$7,300,771

$0

$455,617

$7,756,388

$6,843,528

($1)

($2,321)

($312)

26257 MEDAMERICA MUTUAL RRG INC

$27,139,838

$8,427,620

$9,120,581

$44,688,039

$32,926,061

$0

($6,333)

($7,359)

$841,017

$374,072

$4,207,928

$5,423,017

$2,826,600

($16)

($5)

($1)

10124 MEDSTAR LIABILITY LTD INS CO INC RRG

$2,273,185

$392,249

$422,342

$3,087,776

$1,007,885

($1,782)

($310)

($716)

44237 MENTAL HEALTH RISK RETENTION GROUP

$10,559,982

$1,607,921

$1,814,446

$13,982,349

$11,173,928

$486

($5,057)

($6,286)

11803 LAKE STREET RRG INC 13014 LANCET INDEMNITY RISK RETENTION GROUP, INC. 11500 LENDERS PROTECTION ASSUR CO RRG

12554 MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP 11117 MARATHON FIN INS CO INC RRG

13589 MEDPRO RRG RISK RETENTION GROUP

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

Loss and LAE Reserve Position (000's omitted)

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

$3,555,518

$1,111,189

$2,807,996

$7,474,703

$1,813,673

($6)

($11)

($1,476)

12147 MIDWEST PROVIDER INSURANCE COMPANY, RRG

$964,215

$354,573

$5,630,952

$6,949,740

$1,471,280

$0

13812 MOUNTAIN LAKE RISK RETENTION GROUP, INC.

$408,278

$41,667

$318,719

$768,664

$1,001,982

$158

$0

$0

11547 MOUNTAIN LAUREL RRG INC

$11,107,296

$0

$1,315,020

$12,422,316

$2,365,704

$1,823

($166)

($1,015)

11585 MOUNTAIN STATES HEALTHCARE RECIP RRG

$48,897,660

$9,552,186

$3,272,432

$61,722,278

$43,448,845

$441

($9,179)

($14,278)

12779 MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.

$14,015,193

$3,233,099

$744,954

$17,993,246

$10,535,514

$28

($2,505)

($3,719)

11806 NATIONAL ASSISTED LIVING RRG, INC.

$2,960,314

$823,336

$494,431

$4,278,081

$3,193,286

($204)

($458)

($775)

12235 NATIONAL BUILDERS & CONTRACTORS INS

$2,720,836

$187,849

$391,076

$3,299,761

$1,696,981

$1

($314)

$1,332

10083 NATIONAL CATHOLIC RRG

$42,312,680

$3,089,595

$4,892,718

$50,294,993

$14,247,584

$1,718

$2,946

$2,835

12293 NATIONAL CONTRACTORS INS CO INC RRG

$6,049,074

$1,815,262

$707,470

$8,571,806

$3,889,951

($773)

36072 NATIONAL GUARDIAN RRG INC

$8,919,072

$1,210,459

$846,411

$10,975,942

$5,520,036

($133)

($1,200)

($2,590)

44016 NATIONAL HOME INSURANCE CO RRG

$5,442,144

$18,251,341

$8,300,158

$31,993,643

$16,076,555

$441

($425)

$0

11197 NATIONAL INDEPENDENT TRUCKERS IC RRG

$1,731,297

$908,274

$777,150

$3,416,721

$5,301,924

($24)

($160)

($498)

12529 NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.

$0

$0

$3,669,365

$3,669,365

$2,836,529

$0

$0

$0

10234 NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)

$20,000

$1,490,363

$270,628

$1,780,991

$7,662,820

$0

($5)

($320)

$0

$0

$19,156

$19,156

$1,864,228

$0

$0

$0

12539 NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.

$2,061,661

$334,631

$174,660

$2,570,952

$990,164

($71)

($454)

($605)

13792 NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP

$159,794

$3,926,461

$1,768,936

$5,855,191

$5,169,988

$14

($11)

$0

12532 NEW STAR RISK RETENTION GROUP, INC.

$1,076,100

$99,649

$2,510,880

$3,686,629

$4,026,299

$15

$292

$1,595

12275 NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG

$10,381,586

$2,908,131

($1,132,700)

$12,157,017

$3,413,905

$829

$935

$888

11999 MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP

14130 NCMIC RISK RETENTION GROUP, INC.

12581 NJ CAR RISK RETENTION GROUP

$0

13059 NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP

$4,341,582

$1,724,722

$2,327,650

$8,393,954

$1,695,748

($1)

($536)

$122

10752 NOVUS INS CO RRG

$14,240,715

$1,567,278

($13,839,515)

$1,968,478

$2,224,007

$52

$6,802

$8,445

13644 OASIS RECIPROCAL RISK RETENTION GROUP

$2,891,861

$340,724

$2,956,016

$6,188,601

$1,565,297

($891)

($531)

($224)

12845 OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC.

$1,536,380

$440,742

$9,881

$1,987,003

$970,003

($584)

$323

$519

$0

$1,050

$2,985

$1,857

($771)

($1,869)

10158 OCEAN RRG INC 12189 OCEANUS INS CO A RRG

$33,770,851

The most current FSRs must be verified by visiting www.demotech.com.

$13,265,738

$6,209,573

$53,246,162

$15,213,483

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

Loss and LAE Reserve Position (000's omitted)

13062 OLYMPIA RISK RETENTION GROUP, INC.

$1,096,995

$0

$101,414

$1,198,409

$504,250

($306)

10353 OOIDA RISK RETENTION GROUP INC

$15,561,549

$4,986,110

$18,518,003

$39,065,662

$21,244,923

44105 OPHTHALMIC MUTUAL INS CO RRG

$50,627,116

$22,188,691

$14,740,950

$87,556,757

12183 ORANGE COUNTY MEDICAL RECIP INS RRG

$2,102,375

$289,875

$129,414

10171 ORDINARY MUTUAL A RRG CORP

$11,354,548

$0

11575 PACE RRG INC

$6,780,694

44130 PARATRANSIT INSURANCE COMPANY, RRG

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

($1,010)

($1,290)

($8,045)

$148,155,551

$0

($3,797)

($8,036)

$2,521,664

$3,248,370

$1

($455)

($869)

$601,992

$11,956,540

$9,641,111

($576)

$1,061

($1,473)

$167,950

$2,867,039

$9,815,683

$2,830,629

$38

($4)

$1,943

$10,198,670

$1,306,337

$2,022,883

$13,527,890

$9,740,888

$1

($1,842)

($3,183)

11973 PCH MUTUAL INSURANCE COMPANY, RRG

$3,851,364

$1,235,398

$142,196

$5,228,958

$2,722,345

($100)

($171)

($913)

11846 PEACE CHURCH RRG INC

$7,170,647

$1,470,328

$575,990

$9,216,965

$13,076,477

$6

($1,712)

($3,206)

$204,443

$0

($5,735)

$198,708

$550,792

($37)

($246)

$97

11587 PELICAN INS RRG

$2,727,746

$1,709,741

$1,341,114

$5,778,601

$11,603,458

$153

($1,072)

($2,310)

12004 PHOEBE RECIPROCAL RRG

$1,452,790

$206,967

$34,139

$1,693,896

$3,271,853

($1)

($118)

($423)

12995 PHP RISK RETENTION GROUP, LIMITED

$14,075,197

$588,439

$149,744

$14,813,380

$3,643,922

$499

13810 PHYSICIANS BENEFIT RESOURCES RISK RETENTION GROUP, INC.

$10,507

$51,416

$264,644

$326,567

$529,816

$0

$0

$0

13995 PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.

$565,045

$328,678

$767,127

$1,660,850

$540,595

$0

$0

$0

11772 PEDIATRICANS INS RRG OF AMER

12350 PHYSICIANS COMPLIANCE LIABILITY INSURANCE COMPANY, RRG

$0

12746 PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.

$3,163,064

$1,142,308

$471,175

$4,776,547

$1,638,298

($98)

($315)

($593)

12918 PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP

$2,757,078

$250,348

$119,596

$3,127,022

$1,394,677

$54

($636)

($601)

$0

($822)

($2,787)

12507 PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP 11514 PHYSICIANS PROFESSIONAL LIABILTY RRG

$16,717,502

$7,281,779

$106,353

$24,105,634

$17,997,512

$359

($3,595)

($8,163)

10934 PHYSICIANS REIMBURSEMENT RRG

$15,866,298

$1,568,479

$263,312

$17,698,089

$10,226,549

$94

($1,901)

($5,310)

13046 PHYSICIANS RISK RETENTION GROUP LLC 11513 PHYSICIANS SPECIALTY LTD RRG

$0 $4,902,017

$0

$3,089,833

$7,991,850

$3,778,131

($587)

($627)

($696)

14108 PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

$16,671

$79,224

$131,939

$227,834

$1,528,668

$0

$0

$0

13582 PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP

$2,637,611

$1,447,452

$117,505

$4,202,568

$3,966,334

$30

($1,173)

($616)

12348 PINE TREE INS RECIPROCAL RRG

$5,433,494

$1,231,611

$2,036,198

$8,701,303

$6,562,008

$79

($1,656)

($512)

12198 PINELANDS INS CO RRG INC

$1,377,068

$545,277

$1,852,447

$3,774,792

$866,285

$119

$137

$1,121

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

11980 PINNACLE CONSORTIUM OF HIGHER ED RRG 11858 PINNACLE RRG INC 11809 PONCE DE LEON LTC RRG, INC.

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

Loss and LAE Reserve Position (000's omitted)

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

$2,137,424

$0

$97,447

$2,234,871

$3,793,370

$81

($24)

$93

$59,294

$0

$110,964

$170,258

$2,368,883

($34)

($122)

($395)

$5,164,765

$1,863,282

$238,546

$7,266,593

$7,969,592

($1)

$204

$1,573

$0

($322)

$494

($3,963)

($6,147)

($14,360)

$0

($178)

($692)

12497 PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC 44083 PREFERRED PHYSICIANS MEDICAL RRG

$70,839,480

$6,551,282

$22,589,995

$99,980,757

$94,837,991

10101 PREMIER INSURANCE EXCHANGE RRG 12613 PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP

$3,981,686

$2,642,142

$2,270,755

$8,894,583

$3,299,463

($772)

13179 PROAIR RISK RETENTION GROUP, INC.

$37,165

$71,708

$86,096

$194,969

$516,554

($32)

($49)

($36)

11671 PROBUILDERS SPECIALTY INS CO RRG

$36,495,344

$0

$2,688,789

$39,184,133

$14,361,178

$1

($10)

$687

10840 PROFESSIONAL MEDICAL INS RRG INC

$0

$0

$12,892

$12,892

$325,289

$0

$0

$0

12608 PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

$122,422

$11,400

$180,032

$313,854

$2,195,333

$6

13067 PROFESSIONALS RISK RETENTION GROUP, INC.

$989,453

$1,522,873

$768,286

$3,280,612

$950,774

$312

($219)

($211)

$1,023,505

$482,311

$51,646

$1,557,462

$3,949,364

$1

($437)

($236)

$0

($167)

($336)

11350 PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG 13078 RED CLAY RISK RETENTION GROUP, INC. 13736 RED ROCK RISK RETENTION GROUP, INC. 12010 REGIONAL HEALTH INS CO RRG

$7,196,654

$901,275

$152,582

$8,250,511

$5,017,574

($59)

$571

$0

$558,034

$0

$53,525

$611,559

($14,689)

$175

$176

$222

$0

$0

($18)

12019 REPUBLIC RRG 10691 RESIDENTIAL INS CO INC A RRG

$502,460

$782,079

$427,360

$1,711,899

$819,514

($56)

$50

$50

$22,168,855

$5,443,867

$4,540,621

$32,153,343

$16,988,132

$0

($2,937)

($4,147)

$0

$0

$54,282

$54,282

$3,975,334

$0

($36,883)

($64,950)

11712 SAINT LUKE'S HLTH SYSTEM RRG

$4,779,179

$416,110

$2,424,763

$7,620,052

$14,934,167

$1

$31

($1,311)

12511 SAMARITAN RISK RETENTION GROUP, INC.

$3,821,628

$5,822,474

$652,216

$10,296,318

$13,043,870

$11

($1,770)

($2,045)

$0

($84)

($193)

12209 RESTORATION RISK RETENTION GROUP, INC. 14135 RPX RRG

12524 SCAFFOLD INDUSTRY INSURANCE COMPANY RISK RETENTION GROUP, INC. 11808 SCHUYKILL CROSSING RECIPROCAL RRG

$16,837,824

$2,138,260

$2,145,032

$21,121,116

$8,109,068

($1,505)

($2,209)

($1,441)

12988 SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP

$4,636,794

$1,890,672

$163,592

$6,691,058

$3,376,290

$175

$96

($103)

11267 SECURITY AMERICA RRG INC

$837,916

$865,371

($309,937)

$1,393,350

$2,555,742

$142

$247

$277

14136 SELECT MD RRG

$101,223

$884,056

$273,458

$1,258,737

$1,032,715

$0

$0

$0

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

13571 SELECT PROVIDERS INSURANCE RECIPROCAL EXCHANGE A RRG

Loss and LAE Reserve Position (000's omitted)

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

$0

($547)

($111)

12005 SENTINEL ASSUR RRG INC

$5,150,596

$3,196,828

$383,978

$8,731,402

$10,471,472

($887)

($1,737)

($3,839)

13557 SIGMA RRG, INC.

$4,870,673

$1,027,104

$85,775

$5,983,552

$4,964,231

($20)

($820)

($123)

12907 SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.

$36,320,761

$8,096,592

$6,742,196

$51,159,549

$11,203,293

$312

$2,468

$3,823

10754 SPIRIT MOUNTAIN INS CO RRG INC

$1,824,311

$439,814

$525,185

$2,789,310

$2,890,522

($516)

($1,229)

($1,650)

11114 ST CHARLES INS CO RRG

$4,792,153

$14,138

$470,351

$5,276,642

$5,721,782

$0

($6,792)

($6,792)

11688 ST LUKES HEALTH NETWORK INS CO RRG

$33,595,578

$3,990,809

$59,514

$37,645,901

$10,811,065

$316

$2,748

($1,119)

$0

$39,307

$39,114

$78,421

$658,240

$0

$0

$0

44075 STATES SELF-INSURERS RRG

$9,958,157

$372,141

$1,317,787

$11,648,085

$8,939,417

$0

$300

$217

10476 STICO MUT INS CO RRG

$4,209,320

$5,725,608

$416,599

$10,351,527

$10,467,782

$56

($1,128)

($948)

$0

$0

$340,039

$340,039

$588,505

$0

$0

$0

$220,337

$216,984

$2,331,943

$2,769,264

$1,120,618

($82)

$0

$0

11669 SUPERIOR INS CO RRG

$12,731,885

$0

$582,492

$13,314,377

$5,128,588

$1,885

$208

$1,941

10113 TERRA INS CO RRG

$2,561,666

$3,110,320

$10,355,810

$16,027,796

$15,852,428

($1)

($220)

$358

10152 THE HEALTHCARE UNDERWRITING CO RRG

$33,598,146

$46,526,190

$4,151,104

$84,275,440

$26,053,648

$232

$1,985

$964

$0

$5,896,423

$707,364

$6,603,787

$26,091,356

$0

$0

$0

10084 TITLE INDUSTRY ASSURANCE CO RRG

$3,406,857

$352,024

$1,464,188

$5,223,069

$2,180,163

$0

($310)

$52

11548 UNITED CENTRAL PA RRG

$5,796,701

$1,872,510

$138,899

$7,808,110

$14,723,055

$521

$553

($529)

12280 UNITED CONTRACTORS INS CO INC RRG

$11,045,345

$3,276,238

$35,881

$14,357,464

$8,780,576

$3,349

$5,535

$11,977

10020 UNITED EDUCATORS INS RRG INC

$345,094,234

$29,249,209

$48,812,554

$423,155,997

$246,880,037

($2,051)

($6,003)

($23,170)

$0

$2,015,762

$140,295

$2,156,057

$1,974,066

$0

$0

$0

12915 URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP

$575,681

$568,393

($212,197)

$931,877

$1,351,599

$20

$3

($332)

13988 UV INSURANCE RISK RETENTION GROUP, INC.

$114,375

$150,411

$27,360

$292,146

$530,697

($59)

$0

$0

$0

$218,207

$213,982

$432,189

$2,318,581

$0

($250)

$0

13974 VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.

$218,340

$917,800

$255,864

$1,392,004

$793,769

($1)

$0

$0

13786 VIRGINIA SENIOR CARE RISK RETENTION GROUP

$651,122

$168,055

$23,480

$842,657

$1,969,966

$0

($2)

$0

$3,305,777

$617,033

$111,817

$4,034,627

$3,792,994

($73)

($1,772)

($2,371)

13993 STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.

13135 SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC 14026 SUNLAND RISK RETENTION GROUP, INC.

11153 TITAN INS CO INC RRG

10712 UNITED HOME INSURANCE CO A RRG

11063 VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP

11802 WARREN RRG INC

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Liabilities NAIC

Company Name

Losses and LAE Reserves

Unearned Premium Reserves

Other Liabilities

Total Liabilities

Policyholders' Surplus

Loss and LAE Reserve Position (000's omitted)

1-Year Loss and LAE Development (000's omitted)

2-Year Loss and LAE Development (000's omitted)

11682 WELLSPAN RRG

$16,218,571

$3,289,500

$46,656

$19,554,727

$6,009,368

$0

($2,808)

($3,164)

$704,360

$0

$368,310

$1,072,670

$1,271,468

$654

$0

$0

$0

$0

$2,001

$2,001

$516,114

$0

$23,346,921

$22,579,019

$504,388

$46,430,328

$87,222,172

($2,068)

$248,009

$252,628

$51,207

$551,844

$2,297,294

$13

$0

$0

$6,655,104

$1,893,207

$7,613,274

$16,161,585

$4,424,289

$105

($1,086)

($2,030)

$2,646,922,597

$623,658,883

$995,808,290

$4,266,389,770

$3,065,170,638

($70,518)

($183,942)

($401,670)

14122 WESTERN CATHOLIC INSURANCE COMPANY RRG 11978 WESTERN INS RRG INC 40940 WESTERN PACIFIC MUT INS CO RRG 13154 WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP 11796 YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP) TOTAL - ALL RRGs

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Ratios NAIC

Company Name

Cash and Invested Assets / Loss and LAE Reserves

Loss and LAE Reserves / Policyholders Surplus

Liabilities / Policyholders Surplus

Net Premium Written / Policyholders Surplus

12934

ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP

10.59

0.19

1.81

0.20

12557

ACBG RISK RETENTION GROUP, LLC

100.66

0.01

0.02

0.00

12166

ADVANCED PHYSICIANS INS RRG INC

0.00

0.00

0.18

0.29

12252

AEGIS HEALTHCARE RRG, INC.

1.30

1.48

2.49

0.83

13677

AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP

7.28

0.19

0.64

0.13

13606

AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP

1.44

1.36

1.73

0.68

28380

AGRI INSURANCE EXCHANGE RRG

6.96

0.17

0.22

0.06

11965

ALLEGIANT INS CO INC A RRG

1.46

2.49

3.38

0.21

10023

ALLIANCE OF NONPROFITS FOR INS RRG

2.30

0.75

1.05

0.25

11710

ALLIED PROFESSIONALS INSURANCE COMPANY, RRG

4.00

0.54

1.35

0.67

12013

ALLIED SERVICES RISK RETENTION GROUP

2.10

0.98

1.07

0.00

10232

AMERICAN ASSOC OF OTHODONTISTS RRG

1.61

1.92

2.23

0.21

12631

AMERICAN BUILDERS INSURANCE COMPANY RRG, INC.

10.03

0.15

0.55

-0.01

12300

AMERICAN CONTRACTORS INS CO RRG

0.00

0.00

3.02

0.00

10903

AMERICAN EXCESS INS EXCHANGE RRG

2.67

0.67

0.83

0.11

44202

AMERICAN FEED INDUSTRY INS CO RRG

3.66

0.38

0.40

0.00

11590

AMERICAN FOREST CASUALTY COMPANY RRG

1.70

1.43

1.71

0.20

25448

AMERICAN SAFETY RRG INC

1.59

0.61

6.66

-4.71

11534

AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG

2.38

1.34

2.41

-0.03

12171

AMERIGUARD RRG INC

3.79

0.43

0.68

0.10

11598

APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.

1.43

1.93

2.73

0.74

44148

ARCHITECTS & ENGINEERS INS CO RRG

3.19

0.40

1.21

0.10

13177

ARCOA RISK RETENTION GROUP, INC.

1.23

2.74

2.86

0.76

13580

ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP

9.19

0.07

0.33

0.20

14005

ARTISAN CONTRACTORS INSURANCE COMPANY RISK RETENTION GROUP, LLC

0.00

0.00

0.00

0.00

12224

ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.

3.33

0.59

0.97

0.00

33677

ATTORNEYS INS MUTUAL OF ALABAMA INC

3.19

0.57

0.87

0.15

22670

ATTORNEYS INSURANCE MUTUAL RRG INC

2.19

0.80

0.81

0.00

10639

ATTORNEYS LIAB ASSUR SOCIETY INC RRG

1.40

0.86

2.06

0.37

32450

ATTORNEYS LIAB PROTECTION SOC RRG

1.79

1.48

2.08

0.52

13795

ATTPRO RRG RECIPROCAL RISK RETENTION GROUP

592.80

0.00

0.05

0.00

11033

AUTOMOTIVE UNDERWRITERS INS CO A RRG

0.00

0.00

1.58

0.24

13791

AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC.

0.00

0.00

0.00

0.00

10174

BAR VERMONT RISK RETENTION GROUP INC

3.58

0.36

0.52

0.00

12933

BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.

1.33

3.87

7.53

1.16

14169

BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC.

0.00

0.00

0.04

0.01

13010

BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP

41.19

0.04

1.00

0.23

13788

BROADLINE RISK RETENTION GROUP, INC.

1.15

2.32

2.33

0.00

44504

CALIFORNIA HEALTHCARE INS CO INC RRG

1.77

1.28

1.65

0.19

12180

CALIFORNIA MEDICAL GRP INS CO RRG

1.48

1.48

1.87

0.49

11825

CARE RRG, INC.

2.01

0.92

1.46

0.49

11544

CAREGIVERS UNITED LIAB INS CO RRG

3.36

0.44

0.62

0.20

12373

CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP

4.67

0.27

1.42

0.20

10808

CASSATT RISK RETENTION GROUP INC

12.26

0.10

0.36

-0.01

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Ratios NAIC

Company Name

Cash and Invested Assets / Loss and LAE Reserves

Loss and LAE Reserves / Policyholders Surplus

Liabilities / Policyholders Surplus

Net Premium Written / Policyholders Surplus

13784

CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP

56.24

0.02

0.07

0.15

11694

CENTRAL PA PHYSICIANS RRG INC

1.83

1.62

2.10

0.44

11976

CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.

1.80

1.08

1.39

0.31

12167

CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG

14.30

0.08

0.25

0.28

11065

CHATTAHOOCHEE RRG CAPTIVE INSURANCE COMPANY

0.00

0.00

0.00

0.00

11531

CHC CAS RRG

1.49

2.10

2.59

0.82

12308

CIMARRON INSURANCE EXCHANGE RRG

0.00

0.00

0.00

0.00

11839

CIRCLE STAR INS CO RRG

5.39

0.28

6.90

0.44

12172

CLAIM PROFESSIONALS LIAB INS CO RRG

2.45

0.52

1.14

0.19

11992

CLARIAN HLTH RRG INC

0.00

0.00

9.16

0.00

43770

CLINIC MUTUAL INSURANCE CO RRG

38.19

0.03

0.04

0.01

13756

CMIC RISK RETENTION GROUP

138.96

0.01

0.19

-0.03

11668

COASTAL INS RRG INC

2.31

0.90

1.42

0.23

44598

COLLEGE LIABILITY INS CO A RECIP RRG

3.54

0.31

0.32

0.00

13613

COLLEGE RISK RETENTION GROUP, INC.

1.86

1.34

1.56

0.00

10803

COLUMBIA NATIONAL RRG INC

0.00

0.00

0.53

0.05

11864

COMCARE PRO INS RECIPROCAL RRG

6.14

0.20

0.27

0.11

11807

COMMUNITIES OF FAITH RRG INC

11.13

0.10

0.16

0.11

13893

COMMUNITY BLOOD CENTERS EXCH RRG

3.45

0.51

0.85

0.09

11536

COMMUNITY HEALTH ALLIANCE RECIP RRG

2.11

3.31

6.41

0.66

11259

COMMUNITY HOSPITAL RRG

1.68

1.69

2.10

0.01

10075

CONSUMER SPECIALTIES INS CO RRG

2.44

0.53

0.70

0.06

11798

CONTINUING CARE RRG, INC.

1.43

0.35

0.75

0.92

11603

CONTRACTORS INS CO OF NORTH AMER RRG

1.55

1.35

1.43

0.04

10341

CONTROLLED RISK INS CO OF VT RRG

2.80

0.67

2.10

0.54

12042

COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A RRG

3.14

0.50

0.69

0.31

10164

CPA MUTUAL INS CO OF AMERICA RRG

2.06

0.82

1.17

0.09

13720

CROSSFIT RISK RETENTION GROUP, INC.

7.30

0.21

0.90

0.53

11676

CRUDEN BAY RRG INC

1.47

2.51

3.18

0.88

13655

CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP

3.20

0.62

2.48

1.08

43125

DELAWARE PROFESSIONAL INSURANCE CO

1.93

1.17

1.32

0.00

13018

DOCTORS & SURGEONS NATIONAL RRG

2.28

1.11

2.47

0.90

11842

DUBOIS MEDICAL RRG

2.77

0.59

0.63

0.00

10115

EASTERN DENTISTS INS CO RRG

1.85

1.24

1.60

0.15

10125

ELITE TRANSPORTATION RRG INC

2.13

2.31

5.11

1.05

14163

EMERGENCY CAPITAL MANAGEMENT, LLC, RRG

5.06

0.44

1.32

1.23

12003

EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)

1.43

1.25

2.37

0.20

12015

EMERGENCY MEDICINE RRG INC

2.59

0.51

0.70

0.01

11714

EMERGENCY PHYSICIANS INS CO RRG

1.40

3.07

4.02

0.79

38466

EVERGREEN USA RRG INC

1.39

1.09

1.54

0.34

11840

FAIRWAY PHYSICIANS INS CO RRG

1.01

3.36

4.53

0.99

11698

FAITH AFFILIATED RRG INC

2.87

0.54

0.59

0.03

11801

FIRST KEYSTONE RISK RETENTION GROUP, INC.

0.96

3.46

5.71

1.84

11278

FIRST MEDICAL INS CO RRG

2.62

0.61

0.61

0.00

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Ratios NAIC

Company Name

Cash and Invested Assets / Loss and LAE Reserves

Loss and LAE Reserves / Policyholders Surplus

Liabilities / Policyholders Surplus

Net Premium Written / Policyholders Surplus

12625

FORT WAYNE MEDICAL SURETY COMPANY, RRG

3.14

0.60

1.27

0.59

10842

FRANKLIN CASUALTY INS CO RRG

0.28

3.05

3.11

0.00

12016

FREDERICKSBURG PROFESSIONAL RISK EXC

1.80

0.68

0.78

0.19

14032

GABLES RISK RETENTION GROUP, INC.

1.65

0.28

0.95

1.00

12000

GEISINGER INS CORP RRG

7.02

0.04

0.16

0.00

10163

GENERAL EASTERN SKI INS RRG INC

2.45

0.38

0.53

0.00

13782

GERIC INSURANCE RISK RETENTION GROUP, INC.

5,279.07

0.00

0.02

0.02

11948

GLOBAL HAWK INSURANCE COMPANY RRG

3.45

0.52

1.33

0.73

10991

GLOBAL INTL INS CO INC A RRG

0.00

0.00

0.05

0.02

11145

GOLDEN INS CO RRG

4.96

0.33

1.25

0.34

12512

GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.

1.15

6.92

8.01

1.80

13973

GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

0.00

0.00

0.66

0.06

11581

GRACO RRG INC

0.00

0.00

1.90

0.73

11941

GREEN HILLS INS CO RRG

2.75

0.64

0.75

0.00

11696

GUARDIAN RRG INC

3.89

0.34

0.50

0.27

12014

GUTHRIE RRG

1.58

1.68

1.69

0.00

13057

HAMDEN ASSURANCE RRG, INC.

0.00

0.00

49.40

0.00

12236

HEALTH CARE CAS RRG INC

2.74

3.13

9.04

1.03

11813

HEALTH NETWORK PROVIDERS MUT INS CO

2.22

1.19

1.82

0.13

10080

HEALTH PROVIDERS INS RECIPROCAL RRG

2.68

0.61

0.77

0.15

11832

HEALTHCARE INDUSTRY LIABILITY RECIPROCAL INSURANCE COMPANY, RRG (HEALTHCAP RRG)

2.22

0.88

2.77

3.50

11683

HEALTHCARE PROVIDERS INS CO RRG

0.00

0.00

0.00

0.00

11998

HEARTLAND HEALTHCARE RECIP RRG

2.50

0.80

1.05

0.41

11097

HERITAGE WARRANTY INS RRG INC

222.27

0.01

0.79

0.00

11950

HOME CONSTRUCTION INS CO RRG

1.95

1.40

1.83

0.03

26797

HOUSING AUTHORITY RRG INC

3.00

0.56

0.74

0.08

41246

HOW INSURANCE COMPANY, A RISK RETENTION GROUP

69.71

0.02

0.12

0.00

11268

ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP

4.96

0.26

0.38

0.04

12018

INDEMNITY INSURANCE CORPORATION, RRG

0.53

1.00

2.26

1.08

11692

INDIANA HEALTHCARE RECIP RRG

2.26

0.96

1.20

0.38

12320

INNOVATIVE PHYSICIAN SOLUTIONS RRG

2.51

0.88

1.67

0.00

12594

J.M. WOODWORTH RRG, INC.

1.38

2.08

2.81

0.66

11589

JAMESTOWN INS CO RRG

1.07

-2.65

-7.34

-0.91

12159

JOLIET AREA RRG CAPTIVE INSURANCE COMPANY

0.00

0.00

0.00

0.00

11872

KENTUCKIANA MEDICAL RECIPROCAL RRG

1.97

0.96

1.08

0.21

11939

KENTUCKY HOSPITAL INS CO RRG

2.17

0.92

1.27

0.27

11803

LAKE STREET RRG INC

3.58

0.40

0.56

0.23

13014

LANCET INDEMNITY RISK RETENTION GROUP, INC.

1.67

1.60

2.96

0.99

11500

LENDERS PROTECTION ASSUR CO RRG

0.00

0.00

0.03

0.00

11947

LEWIS & CLARK LTC RRG, INC

0.84

6.20

7.96

1.65

12627

LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY

0.86

4.28

4.85

0.10

11958

LIFE SERVICES NETWORK RECIP INS RRG

3.42

0.42

0.57

0.25

14084

LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP

0.00

0.00

0.00

0.00

11684

LVHN RRG

0.00

0.00

7.28

0.00

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Ratios NAIC

Company Name

Cash and Invested Assets / Loss and LAE Reserves

Loss and LAE Reserves / Policyholders Surplus

Liabilities / Policyholders Surplus

Net Premium Written / Policyholders Surplus

12554

MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP

2.08

0.81

1.69

0.59

11117

MARATHON FIN INS CO INC RRG

47.84

0.03

6.16

5.01

10697

MCIC VERMONT INC RRG

1.65

1.90

16.17

4.41

12355

MD RISK RETENTION GROUP, INC.

1.93

1.07

1.13

0.31

26257

MEDAMERICA MUTUAL RRG INC

2.46

0.82

1.36

0.51

13589

MEDPRO RRG RISK RETENTION GROUP

5.54

0.30

1.92

0.10

10124

MEDSTAR LIABILITY LTD INS CO INC RRG

1.57

2.26

3.06

0.59

44237

MENTAL HEALTH RISK RETENTION GROUP

2.22

0.95

1.25

0.20

11999

MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP

1.28

1.96

4.12

0.85

12147

MIDWEST PROVIDER INSURANCE COMPANY, RRG

7.09

0.66

4.72

0.17

14062

MMIC RRG, INC.

0.00

0.00

0.00

0.00

13812

MOUNTAIN LAKE RISK RETENTION GROUP, INC.

1.44

0.41

0.77

0.00

11547

MOUNTAIN LAUREL RRG INC

0.93

4.70

5.25

0.01

11585

MOUNTAIN STATES HEALTHCARE RECIP RRG

2.12

1.13

1.42

0.44

12779

MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.

1.88

1.33

1.71

0.61

11806

NATIONAL ASSISTED LIVING RRG, INC.

2.38

0.93

1.34

0.27

12235

NATIONAL BUILDERS & CONTRACTORS INS

1.54

1.60

1.94

0.15

10083

NATIONAL CATHOLIC RRG

1.36

2.97

3.53

0.20

12293

NATIONAL CONTRACTORS INS CO INC RRG

1.04

1.56

2.20

0.12

36072

NATIONAL GUARDIAN RRG INC

1.26

1.62

1.99

0.43

44016

NATIONAL HOME INSURANCE CO RRG

8.40

0.34

1.99

0.00

11197

NATIONAL INDEPENDENT TRUCKERS IC RRG

2.65

0.33

0.64

0.18

12529

NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.

0.00

0.00

1.29

0.00

10234

NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)

453.65

0.00

0.23

0.06

14130

NCMIC RISK RETENTION GROUP, INC.

0.00

0.00

0.01

0.00

12539

NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.

1.66

2.08

2.60

0.42

13792

NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP

59.51

0.03

1.13

0.18

12532

NEW STAR RISK RETENTION GROUP, INC.

6.93

0.27

0.92

0.05

12275

NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG

0.96

3.04

3.56

0.79

12581

NJ CAR RISK RETENTION GROUP

0.00

0.00

0.00

0.00

13059

NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP

2.09

2.56

4.95

1.61

10752

NOVUS INS CO RRG

0.19

6.40

0.89

0.03

13644

OASIS RECIPROCAL RISK RETENTION GROUP

2.13

1.85

3.95

-0.19

12845

OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC.

1.40

1.58

2.05

0.33

10158

OCEAN RRG INC

0.00

0.00

0.00

0.00

12189

OCEANUS INS CO A RRG

1.78

2.22

3.50

0.76

13062

OLYMPIA RISK RETENTION GROUP, INC.

0.71

2.18

2.38

0.01

44121

OMS NATL INS CO RRG

2.01

1.07

1.45

0.18

10353

OOIDA RISK RETENTION GROUP INC

2.58

0.73

1.84

0.23

44105

OPHTHALMIC MUTUAL INS CO RRG

4.44

0.34

0.59

0.12

12183

ORANGE COUNTY MEDICAL RECIP INS RRG

2.12

0.65

0.78

0.27

10171

ORDINARY MUTUAL A RRG CORP

1.87

1.18

1.24

0.00

11575

PACE RRG INC

0.73

2.40

3.47

0.11

44130

PARATRANSIT INSURANCE COMPANY, RRG

2.11

1.05

1.39

0.13

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Ratios NAIC

Company Name

Cash and Invested Assets / Loss and LAE Reserves

Loss and LAE Reserves / Policyholders Surplus

Liabilities / Policyholders Surplus

Net Premium Written / Policyholders Surplus

11973

PCH MUTUAL INSURANCE COMPANY, RRG

1.81

1.41

1.92

0.43

11846

PEACE CHURCH RRG INC

2.84

0.55

0.70

0.23

11772

PEDIATRICANS INS RRG OF AMER

3.12

0.37

0.36

0.01

11587

PELICAN INS RRG

6.29

0.24

0.50

0.20

12004

PHOEBE RECIPROCAL RRG

3.26

0.44

0.52

0.13

12995

PHP RISK RETENTION GROUP, LIMITED

1.12

3.86

4.07

0.04

13810

PHYSICIANS BENEFIT RESOURCES RISK RETENTION GROUP, INC.

74.23

0.02

0.62

-0.07

13995

PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.

2.30

1.05

3.07

0.79

12350

PHYSICIANS COMPLIANCE LIABILITY INSURANCE COMPANY, RRG

0.00

0.00

0.00

0.00

12746

PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.

1.72

1.93

2.92

0.85

12918

PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP

1.51

1.98

2.24

0.08

12507

PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP

0.00

0.00

0.00

0.00

11514

PHYSICIANS PROFESSIONAL LIABILTY RRG

2.33

0.93

1.34

0.18

10934

PHYSICIANS REIMBURSEMENT RRG

1.62

1.55

1.73

0.31

13046

PHYSICIANS RISK RETENTION GROUP LLC

0.00

0.00

0.00

0.00

11513

PHYSICIANS SPECIALTY LTD RRG

1.93

1.30

2.12

0.21

14108

PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

69.32

0.01

0.15

0.00

13582

PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP

3.09

0.66

1.06

0.72

12348

PINE TREE INS RECIPROCAL RRG

2.51

0.83

1.33

0.38

12198

PINELANDS INS CO RRG INC

0.21

1.59

4.36

0.61

11980

PINNACLE CONSORTIUM OF HIGHER ED RRG

2.76

0.56

0.59

0.00

11858

PINNACLE RRG INC

42.79

0.03

0.07

0.01

14205

PLICO RISK RETENTION GROUP, INC.

0.00

0.00

0.00

0.00

11809

PONCE DE LEON LTC RRG, INC.

2.70

0.65

0.91

0.16

12497

PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC

0.00

0.00

0.00

0.00

44083

PREFERRED PHYSICIANS MEDICAL RRG

2.68

0.75

1.05

0.14

10101

PREMIER INSURANCE EXCHANGE RRG

0.00

0.00

0.00

0.00

12613

PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP

2.57

1.21

2.70

0.70

13179

PROAIR RISK RETENTION GROUP, INC.

2.38

0.07

0.38

0.21

11671

PROBUILDERS SPECIALTY INS CO RRG

0.41

2.54

2.73

0.00

10840

PROFESSIONAL MEDICAL INS RRG INC

0.00

0.00

0.04

0.00

12608

PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

19.16

0.06

0.14

0.06

13067

PROFESSIONALS RISK RETENTION GROUP, INC.

2.26

1.04

3.45

0.34

11350

PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG

5.27

0.26

0.39

0.24

13078

RED CLAY RISK RETENTION GROUP, INC.

0.00

0.00

0.00

0.00

13736

RED ROCK RISK RETENTION GROUP, INC.

1.68

1.43

1.64

0.29

12010

REGIONAL HEALTH INS CO RRG

0.97

-37.99

-41.63

0.00

12019

REPUBLIC RRG

0.00

0.00

0.00

0.00

10691

RESIDENTIAL INS CO INC A RRG

4.21

0.61

2.09

0.00

12209

RESTORATION RISK RETENTION GROUP, INC.

1.99

1.30

1.89

0.42

14135

RPX RRG

0.00

0.00

0.01

0.00

11712

SAINT LUKE'S HLTH SYSTEM RRG

4.66

0.32

0.51

0.01

12511

SAMARITAN RISK RETENTION GROUP, INC.

4.73

0.29

0.79

0.41

12524

SCAFFOLD INDUSTRY INSURANCE COMPANY RISK RETENTION GROUP, INC.

0.00

0.00

0.00

0.00

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Ratios NAIC

Company Name

Cash and Invested Assets / Loss and LAE Reserves

Loss and LAE Reserves / Policyholders Surplus

Liabilities / Policyholders Surplus

Net Premium Written / Policyholders Surplus

11808

SCHUYKILL CROSSING RECIPROCAL RRG

1.54

2.08

2.60

0.05

12988

SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP

1.92

1.37

1.98

1.11

11267

SECURITY AMERICA RRG INC

3.87

0.33

0.55

0.36

14136

SELECT MD RRG

16.59

0.10

1.22

0.30

13571

SELECT PROVIDERS INSURANCE RECIPROCAL EXCHANGE A RRG

0.00

0.00

0.00

0.00

12005

SENTINEL ASSUR RRG INC

2.95

0.49

0.83

0.35

13557

SIGMA RRG, INC.

1.95

0.98

1.21

0.00

12907

SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.

1.35

3.24

4.57

1.33

10754

SPIRIT MOUNTAIN INS CO RRG INC

2.88

0.63

0.96

0.28

11114

ST CHARLES INS CO RRG

2.19

0.84

0.92

0.08

11688

ST LUKES HEALTH NETWORK INS CO RRG

1.28

3.11

3.48

0.15

13993

STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.

0.00

0.00

0.12

0.02

44075

STATES SELF-INSURERS RRG

2.01

1.11

1.30

0.05

10476

STICO MUT INS CO RRG

4.23

0.40

0.99

0.19

13135

SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC

0.00

0.00

0.58

0.00

14026

SUNLAND RISK RETENTION GROUP, INC.

0.99

0.20

2.47

0.38

11669

SUPERIOR INS CO RRG

1.01

2.48

2.60

0.00

10113

TERRA INS CO RRG

9.70

0.16

1.01

0.39

10152

THE HEALTHCARE UNDERWRITING CO RRG

0.44

1.29

3.23

1.96

11153

TITAN INS CO INC RRG

0.00

0.00

0.25

0.07

10084

TITLE INDUSTRY ASSURANCE CO RRG

1.44

1.56

2.40

0.17

11548

UNITED CENTRAL PA RRG

3.51

0.39

0.53

0.26

12280

UNITED CONTRACTORS INS CO INC RRG

1.46

1.26

1.64

0.41

10020

UNITED EDUCATORS INS RRG INC

1.86

1.40

1.71

0.10

10712

UNITED HOME INSURANCE CO A RRG

0.00

0.00

1.09

0.00

12915

URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP

3.55

0.43

0.69

0.23

13988

UV INSURANCE RISK RETENTION GROUP, INC.

1.60

0.22

0.55

0.57

11063

VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP

0.00

0.00

0.19

0.01

13974

VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.

6.86

0.28

1.75

0.46

13786

VIRGINIA SENIOR CARE RISK RETENTION GROUP

4.23

0.33

0.43

0.00

11802

WARREN RRG INC

2.24

0.87

1.06

0.26

11682

WELLSPAN RRG

0.99

2.70

3.25

1.09

14122

WESTERN CATHOLIC INSURANCE COMPANY RRG

3.10

0.55

0.84

0.00

11978

WESTERN INS RRG INC

0.00

0.00

0.00

0.01

40940

WESTERN PACIFIC MUT INS CO RRG

5.59

0.27

0.53

0.01

13154

WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP

10.74

0.11

0.24

0.12

11796

YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)

2.39

1.50

3.65

0.84

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups Analysis by State


RRG Direct Premium Written ‐ Through Second Quarter Based on Schedule T (000s Omitted)

State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming American Samoa Guam Puerto Rico U.S. Virgin Islands Northern Mariana Islands Canada Aggregate Other Alien Total

DPW 6/30/12 17,373 3,104 27,654 17,371 127,241 20,211 67,535 15,485 38,433 82,683 23,554 3,585 7,360 59,986 39,917 3,947 7,912 18,912 9,154 5,955 84,482 144,528 22,489 10,491 13,813 25,626 11,447 6,702 13,031 3,214 29,648 11,509 281,458 16,356 953 30,111 8,968 13,188 126,241 3,104 6,728 1,121 13,007 61,362 6,216 2,507 25,579 30,219 21,359 9,196 5,892 0 35 128 581 48 242 13,039 1,651,992

DPW 6/30/11 18,461 3,069 38,384 15,435 120,437 20,713 69,923 11,313 39,337 62,784 23,811 3,172 5,846 63,815 39,774 4,892 7,643 19,805 8,558 5,990 80,056 148,846 22,882 10,231 13,601 26,877 15,302 6,225 13,345 3,105 29,675 11,674 280,431 15,776 842 29,877 11,542 13,003 125,652 2,974 6,355 1,132 13,281 63,717 7,670 2,565 25,006 28,994 20,078 8,561 6,162 0 31 25 596 40 263 12,247 1,641,802

DPW 6/30/10 20,951 3,096 33,984 15,592 120,827 20,739 73,792 5,615 41,375 57,298 23,578 3,118 5,454 65,999 36,701 4,632 8,077 19,233 8,850 7,120 80,419 144,305 20,617 11,535 14,801 25,823 14,511 5,283 14,703 2,844 38,641 11,284 274,873 16,297 845 31,503 11,904 9,779 124,600 3,138 18,032 1,028 12,117 63,025 7,551 3,505 27,291 28,642 19,435 8,318 5,528 0 30 55 593 41 152 13,569 1,642,650

The most current Financial Stability Ratings® must be verified by visiting www.demotech.com.

DPW 6/30/09 21,533 3,509 29,525 13,571 122,010 20,348 72,932 5,539 43,547 60,160 25,955 2,707 8,048 70,184 37,089 4,161 8,020 22,180 8,911 6,901 75,290 145,448 20,263 9,967 15,575 28,235 11,946 4,342 14,567 3,008 38,162 11,187 250,179 14,613 857 34,400 12,403 9,220 128,814 3,399 23,824 1,046 12,618 66,271 6,758 2,820 27,339 29,984 16,166 8,802 4,520 0 31 73 564 41 131 13,915 1,633,605

DPW 6/30/08 21,375 3,712 31,039 9,089 128,224 19,626 71,048 4,927 48,015 59,194 27,562 2,966 7,024 64,311 35,164 3,982 6,347 23,910 8,808 6,678 72,071 139,304 20,254 10,209 14,645 26,131 14,627 3,943 16,201 2,828 36,239 10,685 241,439 15,002 845 36,817 11,948 10,901 126,659 3,940 7,039 1,108 12,186 74,986 7,448 2,569 26,201 36,320 13,267 9,220 4,877 0 24 8 585 49 119 12,737 1,606,430 Second Quarter 2012 ‐ RRG Analysis


Risk Retention Groups - Listing by State NAIC Company Name

Primary Line of Business ALABAMA Medical Professional Liability (Claims-made)

11668 COASTAL INS RRG INC

ARIZONA Other Liability (Occurrence)

12166 ADVANCED PHYSICIANS INS RRG INC 11710 ALLIED PROFESSIONALS INSURANCE COMPANY, RRG

Medical Professional Liability (Claims-made)

10232 AMERICAN ASSOC OF OTHODONTISTS RRG

Medical Professional Liability (Claims-made)

11598 APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.

Medical Professional Liability (Claims-made)

12180 CALIFORNIA MEDICAL GRP INS CO RRG

Medical Professional Liability (Claims-made)

11976 CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.

Medical Professional Liability (Claims-made)

12167 CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG

Medical Professional Liability (Claims-made) Commercial Auto Liability

10125 ELITE TRANSPORTATION RRG INC 12625 FORT WAYNE MEDICAL SURETY COMPANY, RRG

Medical Professional Liability (Claims-made)

12320 INNOVATIVE PHYSICIAN SOLUTIONS RRG

Medical Professional Liability (Claims-made)

12147 MIDWEST PROVIDER INSURANCE COMPANY, RRG

Other Liability (Claims-made)

13062 OLYMPIA RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

12183 ORANGE COUNTY MEDICAL RECIP INS RRG

Medical Professional Liability (Claims-made)

12995 PHP RISK RETENTION GROUP, LIMITED

Medical Professional Liability (Claims-made) Other Liability (Occurrence)

13736 RED ROCK RISK RETENTION GROUP, INC.

Other Liability (Claims-made)

11978 WESTERN INS RRG INC

COLORADO 44016 NATIONAL HOME INSURANCE CO RRG

Other Liability (Claims-made)

40940 WESTERN PACIFIC MUT INS CO RRG

Other Liability (Claims-made)

DISTRICT OF COLUMBIA 12252 AEGIS HEALTHCARE RRG, INC.

Other Liability (Claims-made)

33677 ATTORNEYS INS MUTUAL OF ALABAMA INC

Other Liability (Claims-made)

13795 ATTPRO RRG RECIPROCAL RISK RETENTION GROUP

Other Liability (Claims-made)

11825 CARE RRG, INC.

Medical Professional Liability (Claims-made)

12373 CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP

Medical Professional Liability (Claims-made)

13756 CMIC RISK RETENTION GROUP

Medical Professional Liability (Claims-made)

11842 DUBOIS MEDICAL RRG

Medical Professional Liability (Claims-made)

11840 FAIRWAY PHYSICIANS INS CO RRG

Medical Professional Liability (Claims-made)

10991 GLOBAL INTL INS CO INC A RRG

Other Liability (Claims-made)

12236 HEALTH CARE CAS RRG INC

Medical Professional Liability (Claims-made)

11813 HEALTH NETWORK PROVIDERS MUT INS CO

Medical Professional Liability (Claims-made)

11832 HEALTHCARE INDUSTRY LIABILITY RECIPROCAL INSURANCE COMPANY, RRG (HEALTHCAP RRG)

Medical Professional Liability (Occurrence)

11958 LIFE SERVICES NETWORK RECIP INS RRG

Medical Professional Liability (Claims-made)

13589 MEDPRO RRG RISK RETENTION GROUP

Medical Professional Liability (Claims-made)

10124 MEDSTAR LIABILITY LTD INS CO INC RRG

Medical Professional Liability (Claims-made)

14062 MMIC RRG, INC.

Medical Professional Liability (Claims-made)

11806 NATIONAL ASSISTED LIVING RRG, INC. 10234 NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG) The most current FSRs must be verified by visiting www.demotech.com.

Other Liability (Claims-made) Other Liability (Occurrence) Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by State NAIC Company Name

Primary Line of Business

13792 NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP

Other Liability (Claims-made)

12275 NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG

Medical Professional Liability (Claims-made) Other Liability (Occurrence)

12581 NJ CAR RISK RETENTION GROUP

Commercial Auto Liability

10158 OCEAN RRG INC

Other Liability (Claims-made)

11973 PCH MUTUAL INSURANCE COMPANY, RRG

Medical Professional Liability (Claims-made)

11772 PEDIATRICANS INS RRG OF AMER

Commercial Auto Liability

12198 PINELANDS INS CO RRG INC 11858 PINNACLE RRG INC

Other Liability (Occurrence)

11671 PROBUILDERS SPECIALTY INS CO RRG

Other Liability (Occurrence) Medical Professional Liability (Claims-made)

12010 REGIONAL HEALTH INS CO RRG 12524 SCAFFOLD INDUSTRY INSURANCE COMPANY RISK RETENTION GROUP, INC.

Other Liability (Occurrence)

13571 SELECT PROVIDERS INSURANCE RECIPROCAL EXCHANGE A RRG

Other Liability (Claims-made)

13557 SIGMA RRG, INC.

Other Liability (Claims-made)

10754 SPIRIT MOUNTAIN INS CO RRG INC

Other Liability (Claims-made) Medical Professional Liability (Claims-made)

13786 VIRGINIA SENIOR CARE RISK RETENTION GROUP

DELAWARE Other Liability (Claims-made)

44148 ARCHITECTS & ENGINEERS INS CO RRG 43125 DELAWARE PROFESSIONAL INSURANCE CO

Medical Professional Liability (Claims-made)

14163 EMERGENCY CAPITAL MANAGEMENT, LLC, RRG

Medical Professional Liability (Claims-made) Other Liability (Occurrence)

12018 INDEMNITY INSURANCE CORPORATION, RRG 12554 MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP

Commercial Auto Liability Other Liability (Occurrence)

11117 MARATHON FIN INS CO INC RRG 14026 SUNLAND RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

12280 UNITED CONTRACTORS INS CO INC RRG

Other Liability (Occurrence)

FLORIDA Medical Professional Liability (Claims-made)

11809 PONCE DE LEON LTC RRG, INC.

GEORGIA 11065 CHATTAHOOCHEE RRG CAPTIVE INSURANCE COMPANY

Medical Professional Liability (Claims-made)

12159 JOLIET AREA RRG CAPTIVE INSURANCE COMPANY

Medical Professional Liability (Claims-made)

HAWAII 11965 ALLEGIANT INS CO INC A RRG

Other Liability (Occurrence)

22670 ATTORNEYS INSURANCE MUTUAL RRG INC

Other Liability (Claims-made)

44504 CALIFORNIA HEALTHCARE INS CO INC RRG

Medical Professional Liability (Claims-made)

43770 CLINIC MUTUAL INSURANCE CO RRG

Medical Professional Liability (Claims-made)

44598 COLLEGE LIABILITY INS CO A RECIP RRG 11603 CONTRACTORS INS CO OF NORTH AMER RRG

Other Liability (Claims-made) Other Liability (Occurrence)

12042 COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A RRG

Other Liability (Claims-made)

13782 GERIC INSURANCE RISK RETENTION GROUP, INC.

Other Liability (Claims-made)

10080 HEALTH PROVIDERS INS RECIPROCAL RRG

Medical Professional Liability (Claims-made)

26257 MEDAMERICA MUTUAL RRG INC

Medical Professional Liability (Claims-made)

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by State NAIC Company Name

Primary Line of Business Medical Professional Liability (Occurrence)

36072 NATIONAL GUARDIAN RRG INC 13582 PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP

Medical Professional Liability (Claims-made) Medical Professional Liability (Occurrence)

10840 PROFESSIONAL MEDICAL INS RRG INC

Other Liability (Claims-made)

10691 RESIDENTIAL INS CO INC A RRG

Product Liability (Occurrence)

14135 RPX RRG

Medical Professional Liability (Claims-made)

12005 SENTINEL ASSUR RRG INC

Other Liability (Claims-made)

13988 UV INSURANCE RISK RETENTION GROUP, INC.

IOWA Other Liability (Occurrence)

44202 AMERICAN FEED INDUSTRY INS CO RRG

ILLINOIS Medical Professional Liability (Claims-made)

44121 OMS NATL INS CO RRG

INDIANA Other Liability (Claims-made)

28380 AGRI INSURANCE EXCHANGE RRG

Medical Professional Liability (Claims-made)

13893 COMMUNITY BLOOD CENTERS EXCH RRG

KENTUCKY 13580 ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP

Boiler and Machinery

13018 DOCTORS & SURGEONS NATIONAL RRG

Medical Professional Liability (Claims-made)

11872 KENTUCKIANA MEDICAL RECIPROCAL RRG

Medical Professional Liability (Claims-made)

11939 KENTUCKY HOSPITAL INS CO RRG

Medical Professional Liability (Claims-made)

MISSOURI Medical Professional Liability (Claims-made)

44083 PREFERRED PHYSICIANS MEDICAL RRG

MONTANA 12631 AMERICAN BUILDERS INSURANCE COMPANY RRG, INC. 11534 AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG 14005 ARTISAN CONTRACTORS INSURANCE COMPANY RISK RETENTION GROUP, LLC 32450 ATTORNEYS LIAB PROTECTION SOC RRG 13791 AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC. 13784 CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP 13720 CROSSFIT RISK RETENTION GROUP, INC.

Other Liability (Occurrence) Commercial Auto Liability Other Liability (Occurrence) Other Liability (Claims-made) Product Liability (Occurrence) Other Liability (Occurrence) Other Liability (Claims-made)

11696 GUARDIAN RRG INC

Medical Professional Liability (Claims-made)

12355 MD RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

11585 MOUNTAIN STATES HEALTHCARE RECIP RRG

Medical Professional Liability (Claims-made)

12293 NATIONAL CONTRACTORS INS CO INC RRG

Other Liability (Occurrence)

12845 OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC.

Medical Professional Liability (Claims-made)

13046 PHYSICIANS RISK RETENTION GROUP LLC

Medical Professional Liability (Claims-made)

14108 PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP 12497 PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC

Reinsurance - Nonproportional Assumed Liability Other Liability (Occurrence)

13067 PROFESSIONALS RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

14136 SELECT MD RRG

Medical Professional Liability (Claims-made)

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by State NAIC Company Name

Primary Line of Business

13974 VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

NEBRASKA Other Liability (Occurrence)

11500 LENDERS PROTECTION ASSUR CO RRG

NEVADA 13606 AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP

Other Liability (Occurrence) Commercial Auto Liability

13177 ARCOA RISK RETENTION GROUP, INC.

Other Liability (Occurrence)

11033 AUTOMOTIVE UNDERWRITERS INS CO A RRG 14169 BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC. 13010 BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP

Medical Professional Liability (Claims-made) Other Liability (Occurrence)

12003 EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)

Medical Professional Liability (Claims-made)

11714 EMERGENCY PHYSICIANS INS CO RRG

Medical Professional Liability (Claims-made)

11145 GOLDEN INS CO RRG

Other Liability (Claims-made)

13973 GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

Other Liability (Claims-made) Other Liability (Occurrence)

11950 HOME CONSTRUCTION INS CO RRG 12594 J.M. WOODWORTH RRG, INC.

Medical Professional Liability (Claims-made)

13014 LANCET INDEMNITY RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

11947 LEWIS & CLARK LTC RRG, INC

Medical Professional Liability (Claims-made)

14084 LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP

Other Liability (Claims-made) Other Liability (Occurrence)

12235 NATIONAL BUILDERS & CONTRACTORS INS 12539 NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

13810 PHYSICIANS BENEFIT RESOURCES RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

13995 PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

12350 PHYSICIANS COMPLIANCE LIABILITY INSURANCE COMPANY, RRG

Medical Professional Liability (Claims-made)

12746 PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

12613 PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP

Medical Professional Liability (Claims-made) Other Liability (Occurrence)

13179 PROAIR RISK RETENTION GROUP, INC. 12988 SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP 13993 STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC. 12915 URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP

Medical Professional Liability (Claims-made) Other Liability (Claims-made) Medical Professional Liability (Claims-made)

OKLAHOMA Medical Professional Liability (Claims-made)

14205 PLICO RISK RETENTION GROUP, INC. 11063 VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP

Other Liability (Occurrence)

SOUTH CAROLINA 12013 ALLIED SERVICES RISK RETENTION GROUP 11590 AMERICAN FOREST CASUALTY COMPANY RRG 12224 ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made) Commercial Auto Liability Other Liability (Occurrence)

11544 CAREGIVERS UNITED LIAB INS CO RRG

Medical Professional Liability (Claims-made)

11694 CENTRAL PA PHYSICIANS RRG INC

Medical Professional Liability (Claims-made)

11992 CLARIAN HLTH RRG INC

Medical Professional Liability (Occurrence)

11807 COMMUNITIES OF FAITH RRG INC

Medical Professional Liability (Claims-made)

11798 CONTINUING CARE RRG, INC.

Medical Professional Liability (Claims-made)

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by State NAIC Company Name

Primary Line of Business Medical Professional Liability (Claims-made)

12015 EMERGENCY MEDICINE RRG INC

Commercial Auto Liability

11801 FIRST KEYSTONE RISK RETENTION GROUP, INC. 12512 GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

11581 GRACO RRG INC

Medical Professional Liability (Claims-made)

12014 GUTHRIE RRG

Medical Professional Liability (Claims-made)

11683 HEALTHCARE PROVIDERS INS CO RRG

Medical Professional Liability (Claims-made) Other Liability (Claims-made)

11097 HERITAGE WARRANTY INS RRG INC

Other Liability (Occurrence)

11589 JAMESTOWN INS CO RRG

Medical Professional Liability (Claims-made)

11684 LVHN RRG

Commercial Auto Liability

11197 NATIONAL INDEPENDENT TRUCKERS IC RRG 12529 NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

12532 NEW STAR RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

10752 NOVUS INS CO RRG

Medical Professional Liability (Claims-made)

12189 OCEANUS INS CO A RRG

Medical Professional Liability (Claims-made) Other Liability (Claims-made)

12004 PHOEBE RECIPROCAL RRG 12507 PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP

Medical Professional Liability (Claims-made)

11513 PHYSICIANS SPECIALTY LTD RRG

Medical Professional Liability (Claims-made)

13078 RED CLAY RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made) Other Liability (Occurrence)

12019 REPUBLIC RRG 11712 SAINT LUKE'S HLTH SYSTEM RRG

Medical Professional Liability (Claims-made)

12511 SAMARITAN RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

12907 SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.

Medical Professional Liability (Occurrence) Other Liability (Claims-made)

11114 ST CHARLES INS CO RRG 13135 SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC

Medical Professional Liability (Claims-made)

11669 SUPERIOR INS CO RRG

Medical Professional Liability (Claims-made)

11153 TITAN INS CO INC RRG

Other Liability (Occurrence)

TENNESSEE Commercial Auto Liability

44130 PARATRANSIT INSURANCE COMPANY, RRG

TEXAS Commercial Auto Liability

12300 AMERICAN CONTRACTORS INS CO RRG

UTAH 12627 LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY

Commercial Auto Liability

VIRGINIA 41246 HOW INSURANCE COMPANY, A RISK RETENTION GROUP

Product Liability (Occurrence)

VERMONT 12934 ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP 12557 ACBG RISK RETENTION GROUP, LLC 13677 AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP 10023 ALLIANCE OF NONPROFITS FOR INS RRG 10903 AMERICAN EXCESS INS EXCHANGE RRG 25448 AMERICAN SAFETY RRG INC The most current FSRs must be verified by visiting www.demotech.com.

Medical Professional Liability (Claims-made) Other Liability (Claims-made) Medical Professional Liability (Claims-made) Commercial Auto Liability Medical Professional Liability (Claims-made) Other Liability (Occurrence) Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by State NAIC Company Name 12171 AMERIGUARD RRG INC

Primary Line of Business Commercial Auto Liability

10639 ATTORNEYS LIAB ASSUR SOCIETY INC RRG

Other Liability (Claims-made)

10174 BAR VERMONT RISK RETENTION GROUP INC

Other Liability (Claims-made)

12933 BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

13788 BROADLINE RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

10808 CASSATT RISK RETENTION GROUP INC

Medical Professional Liability (Claims-made)

11531 CHC CAS RRG 12308 CIMARRON INSURANCE EXCHANGE RRG 11839 CIRCLE STAR INS CO RRG

Other Liability (Claims-made) Medical Professional Liability (Claims-made) Commercial Auto Liability

12172 CLAIM PROFESSIONALS LIAB INS CO RRG

Other Liability (Claims-made)

13613 COLLEGE RISK RETENTION GROUP, INC.

Other Liability (Occurrence)

10803 COLUMBIA NATIONAL RRG INC 11864 COMCARE PRO INS RECIPROCAL RRG

Warranty Other Liability (Claims-made)

11536 COMMUNITY HEALTH ALLIANCE RECIP RRG

Medical Professional Liability (Claims-made)

11259 COMMUNITY HOSPITAL RRG

Medical Professional Liability (Claims-made)

10075 CONSUMER SPECIALTIES INS CO RRG 10341 CONTROLLED RISK INS CO OF VT RRG 10164 CPA MUTUAL INS CO OF AMERICA RRG

Other Liability (Occurrence) Medical Professional Liability (Claims-made) Other Liability (Claims-made)

11676 CRUDEN BAY RRG INC

Medical Professional Liability (Claims-made)

13655 CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP

Medical Professional Liability (Claims-made)

10115 EASTERN DENTISTS INS CO RRG

Medical Professional Liability (Claims-made)

38466 EVERGREEN USA RRG INC

Other Liability (Occurrence)

11698 FAITH AFFILIATED RRG INC

Medical Professional Liability (Occurrence)

11278 FIRST MEDICAL INS CO RRG

Medical Professional Liability (Occurrence)

10842 FRANKLIN CASUALTY INS CO RRG

Medical Professional Liability (Claims-made)

12016 FREDERICKSBURG PROFESSIONAL RISK EXC

Medical Professional Liability (Claims-made)

14032 GABLES RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

12000 GEISINGER INS CORP RRG

Medical Professional Liability (Claims-made)

10163 GENERAL EASTERN SKI INS RRG INC 11948 GLOBAL HAWK INSURANCE COMPANY RRG

Other Liability (Occurrence) Commercial Auto Liability

11941 GREEN HILLS INS CO RRG

Medical Professional Liability (Claims-made)

13057 HAMDEN ASSURANCE RRG, INC.

Medical Professional Liability (Claims-made)

11998 HEARTLAND HEALTHCARE RECIP RRG

Medical Professional Liability (Claims-made)

26797 HOUSING AUTHORITY RRG INC

Other Liability (Claims-made)

11268 ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP

Other Liability (Claims-made)

11692 INDIANA HEALTHCARE RECIP RRG

Medical Professional Liability (Claims-made)

11803 LAKE STREET RRG INC

Medical Professional Liability (Claims-made)

10697 MCIC VERMONT INC RRG

Medical Professional Liability (Claims-made)

44237 MENTAL HEALTH RISK RETENTION GROUP

Other Liability (Claims-made)

11999 MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP

Other Liability (Claims-made)

13812 MOUNTAIN LAKE RISK RETENTION GROUP, INC. 11547 MOUNTAIN LAUREL RRG INC The most current FSRs must be verified by visiting www.demotech.com.

Commercial Auto Liability Medical Professional Liability (Claims-made) Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by State NAIC Company Name

Primary Line of Business Other Liability (Occurrence)

10083 NATIONAL CATHOLIC RRG 14130 NCMIC RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made)

13059 NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP

Medical Professional Liability (Claims-made)

13644 OASIS RECIPROCAL RISK RETENTION GROUP

Medical Professional Liability (Claims-made) Commercial Auto Liability

10353 OOIDA RISK RETENTION GROUP INC

Medical Professional Liability (Claims-made)

44105 OPHTHALMIC MUTUAL INS CO RRG

Other Liability (Claims-made)

10171 ORDINARY MUTUAL A RRG CORP 11575 PACE RRG INC

Medical Professional Liability (Claims-made)

11846 PEACE CHURCH RRG INC

Medical Professional Liability (Claims-made)

11587 PELICAN INS RRG

Medical Professional Liability (Claims-made)

12918 PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP

Medical Professional Liability (Occurrence) Medical Professional Liability (Claims-made)

11514 PHYSICIANS PROFESSIONAL LIABILTY RRG

Medical Professional Liability (Occurrence)

10934 PHYSICIANS REIMBURSEMENT RRG

Medical Professional Liability (Claims-made)

12348 PINE TREE INS RECIPROCAL RRG 11980 PINNACLE CONSORTIUM OF HIGHER ED RRG

Other Liability (Occurrence) Other Liability (Claims-made)

10101 PREMIER INSURANCE EXCHANGE RRG 12608 PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP 11350 PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG 12209 RESTORATION RISK RETENTION GROUP, INC.

Medical Professional Liability (Claims-made) Other Liability (Claims-made) Other Liability (Occurrence) Medical Professional Liability (Claims-made)

11808 SCHUYKILL CROSSING RECIPROCAL RRG

Other Liability (Occurrence)

11267 SECURITY AMERICA RRG INC

Medical Professional Liability (Claims-made)

11688 ST LUKES HEALTH NETWORK INS CO RRG 44075 STATES SELF-INSURERS RRG

Other Liability (Occurrence)

10476 STICO MUT INS CO RRG

Other Liability (Occurrence) Other Liability (Claims-made)

10113 TERRA INS CO RRG

Medical Professional Liability (Occurrence)

10152 THE HEALTHCARE UNDERWRITING CO RRG

Other Liability (Claims-made)

10084 TITLE INDUSTRY ASSURANCE CO RRG

Medical Professional Liability (Claims-made)

11548 UNITED CENTRAL PA RRG

Other Liability (Occurrence)

10020 UNITED EDUCATORS INS RRG INC

Warranty

10712 UNITED HOME INSURANCE CO A RRG 11802 WARREN RRG INC

Medical Professional Liability (Claims-made)

11682 WELLSPAN RRG

Medical Professional Liability (Claims-made)

14122 WESTERN CATHOLIC INSURANCE COMPANY RRG

Other Liability (Occurrence)

13154 WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP

Medical Professional Liability (Claims-made)

11796 YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)

Medical Professional Liability (Claims-made)

WEST VIRGINIA 12779 MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.

The most current FSRs must be verified by visiting www.demotech.com.

Medical Professional Liability (Claims-made)

Second Quarter 2012 - RRG Analysis


Risk Retention Groups Analysis By Line of Business


RRG Direct Premium Written ‐ Through Second Quarter Based on Line of Business (000s Omitted)

Line of Business Aircraft Allied Lines Auto Phys Boiler & Machinery Burglary & Theft Comm'l Auto Liab Comm'l Multi Prl Crdt A&H (Grp, Ind) Credit Earthquake Excess Workers Comp Farmowners MP Fidelity Financial Guaranty Fire Grp A&H Homeowners MP Inland Marine International Med Prof Liab (Claims Made) Med Prof Liab (Occurrence) Mrtg Guaranty Ocean Marine Oth A&H Oth Liab (Claims) Oth Liab (Occurrence) Other P&C Product Liab (Claims) Product Liab (Occ) Pvt Pass Auto Liab Reins (NP Assmd Finl) Reins (NP Assmd Liab) Reins (NP Assmd Prop) Surety Warranty Workers' Comp Total

DPW 6/30/12 0 0 0 408 0 62,191 0 0 0 0 0 0 2,324 0 0 0 0 0 0 853,288 92,302 0 0 0 464,587 142,900 746 1,131 884 0 0 0 0 0 60 0 1,620,822

DPW 6/30/11 0 0 0 417 0 65,036 0 0 0 0 0 0 2,692 0 0 0 0 0 0 907,542 69,060 0 0 0 479,290 115,635 446 1,145 489 0 0 0 0 0 48 0 1,641,802

DPW 6/30/10 0 0 0 353 0 59,242 0 0 0 0 0 0 2,781 9,327 0 0 0 0 0 860,969 65,894 0 0 0 519,274 123,249 278 1,188 0 0 0 0 0 0 94 0 1,642,650

The most current Financial Stability Ratings® must be verified by visiting www.demotech.com.

DPW 6/30/09 0 0 0 1 0 51,351 0 0 0 0 0 0 2,921 0 0 0 0 0 0 844,821 66,055 0 0 0 535,687 130,114 170 1,843 0 0 0 0 0 0 60 0 1,633,025

DPW 6/30/08 0 0 0 0 0 46,227 0 0 0 0 0 0 0 0 0 0 0 0 0 819,496 72,292 0 0 0 534,181 128,421 307 1,373 0 0 0 0 0 0 0 0 1,602,297

Second Quarter 2012 ‐ RRG Analysis


Risk Retention Groups - Listing by Primary Line of Business NAIC Company Name

State of Domicile Boiler and Machinery

13580 ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP

KENTUCKY

Commercial Auto Liability 10023 ALLIANCE OF NONPROFITS FOR INS RRG 12300 AMERICAN CONTRACTORS INS CO RRG 11590 AMERICAN FOREST CASUALTY COMPANY RRG 11534 AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG

VERMONT TEXAS SOUTH CAROLINA MONTANA VERMONT

12171 AMERIGUARD RRG INC 13177 ARCOA RISK RETENTION GROUP, INC.

NEVADA VERMONT

11839 CIRCLE STAR INS CO RRG 10125 ELITE TRANSPORTATION RRG INC 11801 FIRST KEYSTONE RISK RETENTION GROUP, INC. 11948 GLOBAL HAWK INSURANCE COMPANY RRG 12627 LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY 12554 MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP 13812 MOUNTAIN LAKE RISK RETENTION GROUP, INC. 11197 NATIONAL INDEPENDENT TRUCKERS IC RRG

ARIZONA SOUTH CAROLINA VERMONT UTAH DELAWARE VERMONT SOUTH CAROLINA DISTRICT OF COLUMBIA

10158 OCEAN RRG INC 10353 OOIDA RISK RETENTION GROUP INC 44130 PARATRANSIT INSURANCE COMPANY, RRG

VERMONT TENNESSEE DISTRICT OF COLUMBIA

12198 PINELANDS INS CO RRG INC

Medical Professional Liability (Claims-made) 12934 ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP

VERMONT

13677 AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP

VERMONT

11710 ALLIED PROFESSIONALS INSURANCE COMPANY, RRG 12013 ALLIED SERVICES RISK RETENTION GROUP 10232 AMERICAN ASSOC OF OTHODONTISTS RRG 10903 AMERICAN EXCESS INS EXCHANGE RRG 11598 APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC. 12933 BEDFORD PHYSICIANS RISK RETENTION GROUP, INC. 14169 BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC. 13788 BROADLINE RISK RETENTION GROUP, INC. 44504 CALIFORNIA HEALTHCARE INS CO INC RRG 12180 CALIFORNIA MEDICAL GRP INS CO RRG 11825 CARE RRG, INC. 11544 CAREGIVERS UNITED LIAB INS CO RRG 12373 CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP 10808 CASSATT RISK RETENTION GROUP INC 11694 CENTRAL PA PHYSICIANS RRG INC 11976 CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC. The most current FSRs must be verified by visiting www.demotech.com.

ARIZONA SOUTH CAROLINA ARIZONA VERMONT ARIZONA VERMONT NEVADA VERMONT HAWAII ARIZONA DISTRICT OF COLUMBIA SOUTH CAROLINA DISTRICT OF COLUMBIA VERMONT SOUTH CAROLINA ARIZONA Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Primary Line of Business NAIC Company Name

State of Domicile

12167 CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG

ARIZONA

11065 CHATTAHOOCHEE RRG CAPTIVE INSURANCE COMPANY

GEORGIA

12308 CIMARRON INSURANCE EXCHANGE RRG 43770 CLINIC MUTUAL INSURANCE CO RRG 13756 CMIC RISK RETENTION GROUP 11668 COASTAL INS RRG INC 11807 COMMUNITIES OF FAITH RRG INC 13893 COMMUNITY BLOOD CENTERS EXCH RRG

VERMONT HAWAII DISTRICT OF COLUMBIA ALABAMA SOUTH CAROLINA INDIANA

11536 COMMUNITY HEALTH ALLIANCE RECIP RRG

VERMONT

11259 COMMUNITY HOSPITAL RRG

VERMONT

11798 CONTINUING CARE RRG, INC.

SOUTH CAROLINA

10341 CONTROLLED RISK INS CO OF VT RRG

VERMONT

11676 CRUDEN BAY RRG INC

VERMONT

13655 CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP

VERMONT

43125 DELAWARE PROFESSIONAL INSURANCE CO 13018 DOCTORS & SURGEONS NATIONAL RRG 11842 DUBOIS MEDICAL RRG 10115 EASTERN DENTISTS INS CO RRG 14163 EMERGENCY CAPITAL MANAGEMENT, LLC, RRG 12003 EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC) 12015 EMERGENCY MEDICINE RRG INC 11714 EMERGENCY PHYSICIANS INS CO RRG 11840 FAIRWAY PHYSICIANS INS CO RRG 12625 FORT WAYNE MEDICAL SURETY COMPANY, RRG

DELAWARE KENTUCKY DISTRICT OF COLUMBIA VERMONT DELAWARE NEVADA SOUTH CAROLINA NEVADA DISTRICT OF COLUMBIA ARIZONA

10842 FRANKLIN CASUALTY INS CO RRG

VERMONT

12016 FREDERICKSBURG PROFESSIONAL RISK EXC

VERMONT

14032 GABLES RISK RETENTION GROUP, INC.

VERMONT

12000 GEISINGER INS CORP RRG

VERMONT

12512 GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.

SOUTH CAROLINA

11581 GRACO RRG INC

SOUTH CAROLINA

11941 GREEN HILLS INS CO RRG 11696 GUARDIAN RRG INC 12014 GUTHRIE RRG 13057 HAMDEN ASSURANCE RRG, INC.

VERMONT MONTANA SOUTH CAROLINA VERMONT

12236 HEALTH CARE CAS RRG INC

DISTRICT OF COLUMBIA

11813 HEALTH NETWORK PROVIDERS MUT INS CO

DISTRICT OF COLUMBIA

10080 HEALTH PROVIDERS INS RECIPROCAL RRG

HAWAII

11683 HEALTHCARE PROVIDERS INS CO RRG

SOUTH CAROLINA

11998 HEARTLAND HEALTHCARE RECIP RRG

VERMONT

11692 INDIANA HEALTHCARE RECIP RRG

VERMONT

12320 INNOVATIVE PHYSICIAN SOLUTIONS RRG The most current FSRs must be verified by visiting www.demotech.com.

ARIZONA Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Primary Line of Business NAIC Company Name

State of Domicile

12594 J.M. WOODWORTH RRG, INC.

NEVADA

12159 JOLIET AREA RRG CAPTIVE INSURANCE COMPANY

GEORGIA

11872 KENTUCKIANA MEDICAL RECIPROCAL RRG

KENTUCKY

11939 KENTUCKY HOSPITAL INS CO RRG

KENTUCKY

11803 LAKE STREET RRG INC

VERMONT

13014 LANCET INDEMNITY RISK RETENTION GROUP, INC.

NEVADA

11947 LEWIS & CLARK LTC RRG, INC

NEVADA

11958 LIFE SERVICES NETWORK RECIP INS RRG 11684 LVHN RRG 10697 MCIC VERMONT INC RRG 12355 MD RISK RETENTION GROUP, INC. 26257 MEDAMERICA MUTUAL RRG INC

DISTRICT OF COLUMBIA SOUTH CAROLINA VERMONT MONTANA HAWAII

13589 MEDPRO RRG RISK RETENTION GROUP

DISTRICT OF COLUMBIA

10124 MEDSTAR LIABILITY LTD INS CO INC RRG

DISTRICT OF COLUMBIA

14062 MMIC RRG, INC.

DISTRICT OF COLUMBIA

11547 MOUNTAIN LAUREL RRG INC 11585 MOUNTAIN STATES HEALTHCARE RECIP RRG 12779 MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC. 12529 NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC. 14130 NCMIC RISK RETENTION GROUP, INC. 12539 NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC. 12532 NEW STAR RISK RETENTION GROUP, INC. 12275 NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG 13059 NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP 10752 NOVUS INS CO RRG 13644 OASIS RECIPROCAL RISK RETENTION GROUP 12845 OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC. 12189 OCEANUS INS CO A RRG 13062 OLYMPIA RISK RETENTION GROUP, INC. 44121 OMS NATL INS CO RRG 44105 OPHTHALMIC MUTUAL INS CO RRG 12183 ORANGE COUNTY MEDICAL RECIP INS RRG

VERMONT MONTANA WEST VIRGINIA SOUTH CAROLINA VERMONT NEVADA SOUTH CAROLINA DISTRICT OF COLUMBIA VERMONT SOUTH CAROLINA VERMONT MONTANA SOUTH CAROLINA ARIZONA ILLINOIS VERMONT ARIZONA

11575 PACE RRG INC

VERMONT

11846 PEACE CHURCH RRG INC

VERMONT

11772 PEDIATRICANS INS RRG OF AMER 11587 PELICAN INS RRG

DISTRICT OF COLUMBIA VERMONT

12995 PHP RISK RETENTION GROUP, LIMITED

ARIZONA

13810 PHYSICIANS BENEFIT RESOURCES RISK RETENTION GROUP, INC.

NEVADA

13995 PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.

NEVADA

12350 PHYSICIANS COMPLIANCE LIABILITY INSURANCE COMPANY, RRG

NEVADA

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Primary Line of Business NAIC Company Name

State of Domicile

12746 PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC. 12507 PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP

NEVADA SOUTH CAROLINA

11514 PHYSICIANS PROFESSIONAL LIABILTY RRG

VERMONT

13046 PHYSICIANS RISK RETENTION GROUP LLC

MONTANA

11513 PHYSICIANS SPECIALTY LTD RRG 13582 PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP 12348 PINE TREE INS RECIPROCAL RRG 14205 PLICO RISK RETENTION GROUP, INC. 11809 PONCE DE LEON LTC RRG, INC.

SOUTH CAROLINA HAWAII VERMONT OKLAHOMA FLORIDA

44083 PREFERRED PHYSICIANS MEDICAL RRG

MISSOURI

12613 PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP

NEVADA

12608 PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP 13067 PROFESSIONALS RISK RETENTION GROUP, INC. 13078 RED CLAY RISK RETENTION GROUP, INC.

VERMONT MONTANA SOUTH CAROLINA

12010 REGIONAL HEALTH INS CO RRG

DISTRICT OF COLUMBIA

11712 SAINT LUKE'S HLTH SYSTEM RRG

SOUTH CAROLINA

12511 SAMARITAN RISK RETENTION GROUP, INC.

SOUTH CAROLINA

11808 SCHUYKILL CROSSING RECIPROCAL RRG 12988 SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP

VERMONT NEVADA MONTANA

14136 SELECT MD RRG

HAWAII

12005 SENTINEL ASSUR RRG INC 11688 ST LUKES HEALTH NETWORK INS CO RRG 13135 SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC 14026 SUNLAND RISK RETENTION GROUP, INC.

VERMONT SOUTH CAROLINA DELAWARE SOUTH CAROLINA

11669 SUPERIOR INS CO RRG

VERMONT

11548 UNITED CENTRAL PA RRG 12915 URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP 13974 VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC. 13786 VIRGINIA SENIOR CARE RISK RETENTION GROUP

NEVADA MONTANA DISTRICT OF COLUMBIA

11802 WARREN RRG INC

VERMONT

11682 WELLSPAN RRG

VERMONT

13154 WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP

VERMONT

11796 YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)

VERMONT

Medical Professional Liability (Occurrence) 11992 CLARIAN HLTH RRG INC

SOUTH CAROLINA

11698 FAITH AFFILIATED RRG INC

VERMONT

11278 FIRST MEDICAL INS CO RRG

VERMONT

11832 HEALTHCARE INDUSTRY LIABILITY RECIPROCAL INSURANCE COMPANY, RRG (HEALTHCAP RRG) 36072 NATIONAL GUARDIAN RRG INC 12918 PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP The most current FSRs must be verified by visiting www.demotech.com.

DISTRICT OF COLUMBIA HAWAII VERMONT Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Primary Line of Business NAIC Company Name

State of Domicile VERMONT

10934 PHYSICIANS REIMBURSEMENT RRG 10840 PROFESSIONAL MEDICAL INS RRG INC 12907 SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC. 10152 THE HEALTHCARE UNDERWRITING CO RRG

HAWAII SOUTH CAROLINA VERMONT

Other Liability (Claims-made) 12557 ACBG RISK RETENTION GROUP, LLC 12252 AEGIS HEALTHCARE RRG, INC. 28380 AGRI INSURANCE EXCHANGE RRG 44148 ARCHITECTS & ENGINEERS INS CO RRG 33677 ATTORNEYS INS MUTUAL OF ALABAMA INC 22670 ATTORNEYS INSURANCE MUTUAL RRG INC 10639 ATTORNEYS LIAB ASSUR SOCIETY INC RRG 32450 ATTORNEYS LIAB PROTECTION SOC RRG 13795 ATTPRO RRG RECIPROCAL RISK RETENTION GROUP

VERMONT DISTRICT OF COLUMBIA INDIANA DELAWARE DISTRICT OF COLUMBIA HAWAII VERMONT MONTANA DISTRICT OF COLUMBIA

10174 BAR VERMONT RISK RETENTION GROUP INC

VERMONT

11531 CHC CAS RRG

VERMONT

12172 CLAIM PROFESSIONALS LIAB INS CO RRG

VERMONT

44598 COLLEGE LIABILITY INS CO A RECIP RRG 11864 COMCARE PRO INS RECIPROCAL RRG 12042 COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A RRG

HAWAII VERMONT HAWAII

10164 CPA MUTUAL INS CO OF AMERICA RRG

VERMONT

13720 CROSSFIT RISK RETENTION GROUP, INC.

MONTANA

13782 GERIC INSURANCE RISK RETENTION GROUP, INC. 10991 GLOBAL INTL INS CO INC A RRG

HAWAII DISTRICT OF COLUMBIA

11145 GOLDEN INS CO RRG

NEVADA

13973 GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

NEVADA

11097 HERITAGE WARRANTY INS RRG INC

SOUTH CAROLINA

26797 HOUSING AUTHORITY RRG INC

VERMONT

11268 ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP

VERMONT

14084 LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP

NEVADA

44237 MENTAL HEALTH RISK RETENTION GROUP

VERMONT

11999 MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP

VERMONT

12147 MIDWEST PROVIDER INSURANCE COMPANY, RRG 11806 NATIONAL ASSISTED LIVING RRG, INC. 44016 NATIONAL HOME INSURANCE CO RRG 13792 NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP 10171 ORDINARY MUTUAL A RRG CORP 11973 PCH MUTUAL INSURANCE COMPANY, RRG 12004 PHOEBE RECIPROCAL RRG 10101 PREMIER INSURANCE EXCHANGE RRG The most current FSRs must be verified by visiting www.demotech.com.

ARIZONA DISTRICT OF COLUMBIA COLORADO DISTRICT OF COLUMBIA VERMONT DISTRICT OF COLUMBIA SOUTH CAROLINA VERMONT Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Primary Line of Business NAIC Company Name

State of Domicile

11350 PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG

VERMONT HAWAII

10691 RESIDENTIAL INS CO INC A RRG 13571 SELECT PROVIDERS INSURANCE RECIPROCAL EXCHANGE A RRG

DISTRICT OF COLUMBIA

13557 SIGMA RRG, INC.

DISTRICT OF COLUMBIA

10754 SPIRIT MOUNTAIN INS CO RRG INC

DISTRICT OF COLUMBIA SOUTH CAROLINA

11114 ST CHARLES INS CO RRG 13993 STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.

NEVADA

10113 TERRA INS CO RRG

VERMONT

10084 TITLE INDUSTRY ASSURANCE CO RRG

VERMONT

13988 UV INSURANCE RISK RETENTION GROUP, INC.

HAWAII ARIZONA

11978 WESTERN INS RRG INC

COLORADO

40940 WESTERN PACIFIC MUT INS CO RRG

Other Liability (Occurrence) 12166 ADVANCED PHYSICIANS INS RRG INC

ARIZONA

13606 AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP

NEVADA

11965 ALLEGIANT INS CO INC A RRG 12631 AMERICAN BUILDERS INSURANCE COMPANY RRG, INC. 44202 AMERICAN FEED INDUSTRY INS CO RRG 25448 AMERICAN SAFETY RRG INC 14005 ARTISAN CONTRACTORS INSURANCE COMPANY RISK RETENTION GROUP, LLC 12224 ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.

HAWAII MONTANA IOWA VERMONT MONTANA SOUTH CAROLINA

11033 AUTOMOTIVE UNDERWRITERS INS CO A RRG

NEVADA

13010 BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP

NEVADA

13784 CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP

MONTANA

13613 COLLEGE RISK RETENTION GROUP, INC.

VERMONT

10075 CONSUMER SPECIALTIES INS CO RRG

VERMONT

11603 CONTRACTORS INS CO OF NORTH AMER RRG

HAWAII

38466 EVERGREEN USA RRG INC

VERMONT

10163 GENERAL EASTERN SKI INS RRG INC

VERMONT

11950 HOME CONSTRUCTION INS CO RRG

NEVADA

12018 INDEMNITY INSURANCE CORPORATION, RRG 11589 JAMESTOWN INS CO RRG 11500 LENDERS PROTECTION ASSUR CO RRG 11117 MARATHON FIN INS CO INC RRG 12235 NATIONAL BUILDERS & CONTRACTORS INS 10083 NATIONAL CATHOLIC RRG 12293 NATIONAL CONTRACTORS INS CO INC RRG

DELAWARE SOUTH CAROLINA NEBRASKA DELAWARE NEVADA VERMONT MONTANA

10234 NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)

DISTRICT OF COLUMBIA

12581 NJ CAR RISK RETENTION GROUP

DISTRICT OF COLUMBIA

11980 PINNACLE CONSORTIUM OF HIGHER ED RRG 11858 PINNACLE RRG INC The most current FSRs must be verified by visiting www.demotech.com.

VERMONT DISTRICT OF COLUMBIA Second Quarter 2012 - RRG Analysis


Risk Retention Groups - Listing by Primary Line of Business NAIC Company Name

State of Domicile

12497 PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC

MONTANA

13179 PROAIR RISK RETENTION GROUP, INC.

NEVADA

11671 PROBUILDERS SPECIALTY INS CO RRG

DISTRICT OF COLUMBIA ARIZONA

13736 RED ROCK RISK RETENTION GROUP, INC.

SOUTH CAROLINA

12019 REPUBLIC RRG

VERMONT

12209 RESTORATION RISK RETENTION GROUP, INC. 12524 SCAFFOLD INDUSTRY INSURANCE COMPANY RISK RETENTION GROUP, INC.

DISTRICT OF COLUMBIA

11267 SECURITY AMERICA RRG INC

VERMONT

44075 STATES SELF-INSURERS RRG

VERMONT

10476 STICO MUT INS CO RRG

VERMONT SOUTH CAROLINA

11153 TITAN INS CO INC RRG

DELAWARE

12280 UNITED CONTRACTORS INS CO INC RRG

VERMONT

10020 UNITED EDUCATORS INS RRG INC 11063 VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP 14122 WESTERN CATHOLIC INSURANCE COMPANY RRG

OKLAHOMA VERMONT

Product Liability (Occurrence) 13791 AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC. 41246 HOW INSURANCE COMPANY, A RISK RETENTION GROUP

MONTANA VIRGINIA HAWAII

14135 RPX RRG

Reinsurance - Nonproportional Assumed Liability 14108 PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

MONTANA

Warranty 10803 COLUMBIA NATIONAL RRG INC

VERMONT

10712 UNITED HOME INSURANCE CO A RRG

VERMONT

The most current FSRs must be verified by visiting www.demotech.com.

Second Quarter 2012 - RRG Analysis


Risk Retention Groups Additional Analysis of RRGs Assigned a Financial Stability Rating速


P&C - 2-Page Profiles provided courtesy of SNL Financial. The 2-page printout provides a comprehensive profile of a selected P&C Company or SNL Group. The 2-page printout includes profitability, investment analysis, asset quality, capital adequacy, IRIS ratios along with complete balance sheet and income statement with multiple charts. P&C - 2-Page Profiles and other excel templates are available to SNL subscribers in the SNLxl Template Library. About SNL Financial SNL Financial collects, standardizes and disseminates all relevant corporate, financial, market and M&A data — plus news and analysis — for the industries we cover: banking, financial services, insurance, real estate, energy and media/communications. SNL Financial was originally founded as “S&L Securities” in New Jersey in 1987 with an initial focus on the savings and loan industry. But state law would not permit the incorporation of a non-bank with “S&L” in the official company name. So we replaced the “&” with an “N” to create “SNL.” And our universe soon expanded well beyond savings & loans to the various business sectors we cover today. Since our founding, SNL has continuously expanded our global operations, as well as the scope and depth of our coverage and products — all without compromising the standards of quality and customer service that drive our success. Throughout our organization, SNL has infused 4 core tenets — Accuracy, Relevance, Completeness and Timeliness — and we stand behind our published information with a unique Accuracy Guarantee. As a result, leading investment banks, investment managers, corporate executives, ratings agencies, government agencies, consulting firms, law firms and media such as The New York Times, The Wall Street Journal, USA Today, Washington Post, Forbes and Fortune rely on SNL Financial for the best possible information on the companies in our sectors. Visit www.snl.com for more information.

®


Financial Stability Ratings (FSRs) - Risk Retention Groups as of 11/2/2012 NAIC COMPANY

FSR

12252 AEGIS Healthcare RRG, Inc.

A

11710 Allied Professionals Insurance Company, RRG

A'

12631 American Builders Insurance Company RRG, Inc.

A

11534 American Trucking and Transportation Insurance Company, RRG

A

11598 Applied Medico-Legal Solutions RRG, Inc.

A'

11825 CARE RRG, Inc.

A

11976 Centurion Medical Liability Protective RRG, Inc.

A

12167 Charitable Service Providers Reciprocal RRG

A

11065 Chattahoochee RRG Captive Insurance Company

A

14388 Cherokee Guarantee Company Inc., RRG

A

11798 Continuing Care RRG, Inc.

A

13018 Doctors & Surgeons National RRG

A

14163 Emergency Capital Management, LLC, RRG

A

12003 Emergency Medicine Professional Assurance Company RRG (EMPAC)

A

11948 Global Hawk Insurance Company RRG

A

11832 Healthcare Industry Liability Reciprocal Insurance Company, RRG (HEALTHCAP RRG)

A

12594 J.M. Woodworth RRG, Inc.

A

12159 Joliet Area RRG Captive Insurance Company

A

13014 Lancet Indemnity Risk Retention Group, Inc.

A

11806 National Assisted Living RRG, Inc.

A

10234 National Service Contract Insurance Company (RRG)

A

12275 New York Healthcare Insurance Company, Inc., RRG

A

44130 Paratransit Insurance Company, RRG

A'

11973 PCH Mutual Insurance Company, RRG

A

11809 Ponce De Leon LTC RRG, Inc.

A

12613 Premier Physicians Insurance Company, a Risk Retention Group

A

13078 Red Clay Risk Retention Group, Inc.

A

13557 Sigma RRG, Inc.

A

The most current FSRs must be verified by visiting www.demotech.com.


AEGIS Healthcare RRG Inc. (Baltimore, MD) Address and Geographic 555 Fairmount Avenue Baltimore, MD 21286-5417

Business Profile NAIC Company Code : 12252 Business Focus : P&C Minimum NPW Geographic Focus: Geography Minimum NPW NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-1516551 Distribution Channel: Direct Response

MSA: Baltimore-Towson, MD (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Barbara Labuskes Phone : (410) 339-7263x1203 Fax : -Email : --

Direction -----

Watch/Outlook Not Covered by SNL ----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

2008Y 2,535 1,024 1,511 105 1,124

2009Y 2,472 1,222 1,250 164 1,056

2010Y 2,860 1,371 1,489 183 1,070

2011Y 3,329 1,148 2,181 -224 652

2012L2 3,941 1,129 2,812 -253 636

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

757 345 1,063 1,373 127.66 10.82 0.34

1,694 988 988 1,097 135.19 22.43 0.81

1,624 978 978 1,385 136.76 20.42 0.71

1,561 615 615 1,785 239.78 -26.06 0.54

1,587 -4 601 1,675 271.12 -31.36 0.00

Liquidity

OFFICERS & ADVISORS Auditor Johnson Lambert & Co. LLP Actuary Towers Watson & Co. CEO -CFO -President Isabella M. Firth

Total Assets

2008Y 4.23 17.73 10.61 3.38 57.99 116.18 52.34 174.17 168.42 5.75 0.00

Profitability Ratios

2009Y 4.18 7.39 15.70 5.06 41.70 41.41 35.63 83.10 75.71 7.39 0.00

2010Y 5.82 9.42 14.88 5.43 53.42 30.35 34.49 83.77 74.36 9.42 0.00

3,500

2011Y 2.14 6.05 -17.36 -6.29 95.23 65.55 83.83 160.78 154.73 6.05 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 1.87 -863.33 -21.24 -6.78 99.16 NM 87.09 NM NM NA 0.00

20.00 15.00

174.2 160.8

10.00 5.00 0.00 -5.00 -15.00 -20.00 -25.00 2009Y

2010Y

2011Y

0.0 2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 5.65 44.19 0.00 11.43 60.56 757 616 400 46 45.54 12.66 9.54

2009Y 6.07 16.01 0.00 4.08 21.31 1,694 412 409 167 58.34 29.93 22.19

2010Y 18.94 15.33 0.00 4.86 10.16 1,624 522 297 159 60.20 33.57 23.44

2011Y 11.39 23.89 0.00 7.52 34.15 1,561 585 403 -374 39.39 NM -51.60

2012L2 12.07 NA NA NA NA NA 596 414 -409 NA NM -58.75

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 0 45.54 NA 0.00 0 0

2009Y 0 58.34 NA 0.00 0 0

2010Y 0 60.20 NA 0.00 0 0

2011Y 1 39.39 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

1,800

2,000 1,500 1,000 500 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 18.88 93.30 27.86 107.00 0.00 102.69 -446 -336 47.91 47.91 9.39

2009Y 20.76 122.99 21.24 81.00 0.00 140.15 -69 71 93.69 94.45 18.44

2011Y 2010Y 35.71 114.16 38.77 88.00 0.00 122.77 500 339 192.45 239.17 21.17

2012L2 2011Y 23.11 78.45 43.91 127.00 0.00 95.89 43 80 105.08 105.08 11.48

2012L2 32.55 77.41 81.05 129.00 0.00 91.33 47 201 104.32 93.45 8.76

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --139 118 NPW to Policyholders' Surplus 300 --81 71 Change in Net Premiums Written 33 -33 187* -1 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --104* 76 Investment Yield 6.5 3 5.1 5.9 Gross Change in Policyholders' Surplus 50 -10 19 12 Net Change in Adj Policyholders' Surplus 25 -10 21 12 Liabilities to Liquid Assets 100 --81 88 Agents' Bal to Policyholders' Surplus 40 --0 0 1-Yr Resv Dev to Policyholders' Surplus 20 ---16 -22 2-Yr Resv Dev to Policyholders' Surplus 20 --3 -36 Est Curr Resv Defi/Policyholders' Surplus 25 --4 -38 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y -26.98 -39.33 -65.60 5.39 39.08 20.06 -57.00 16.25 20.67 17.94

2009Y -2.51 -17.28 186.88 118.50 55.98 -20.10 123.93 8.60 20.39 13.53

2010Y 15.72 19.11 -1.09 7.00 11.39 26.22 -4.16 3.25 10.81 6.48

2011Y 136 54 -37* NA 106* 2.2* -16* -16* 127* 0 -7 -46 -99

2011Y 16.40 46.49 -37.11 NM NM 28.95 -3.88 -2.69 5.14 -0.38

2012L2 5.92 15.93 NM NM NM 15.73 1.92 9.67 4.27 7.95

60.2

58.3

1,400 1,000 800

88.0

81.0

2,500

Capital + Capital Ratios

1,600 1,200

129.0

107.0

83.8

83.1

-10.00

2008Y

Liabilities / Liquid Assets (IRIS Ratio)

127.0

4,000 3,000

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

Total Liabilities

4,500

ACL Risk Based Capital

45.5

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

1,600

39.4

1,400

600

1,200

400

1,000

200

800

0 -200 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

600 400

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

200

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 20.06 -1.83 -35.43 127.66 -1.69 63.16 134.07

2009Y -20.10 -16.30 2.96 135.19 -16.89 86.62 89.80

2010Y 26.22 -22.36 -36.46 136.76 -27.93 53.19 100.97

2011Y 28.95 -7.10 -46.11 239.78 -15.85 36.44 155.51

2012L2 15.73 NA NA 271.12 NA NA 148.31

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 1,024 NA NA NA NA 13 -13 0 0.00 34.75 147.57 0.00

2009Y 1,222 NA NA NA NA 0 54 0 0.00 94.61 102.33 0.00

2010Y 2010Y 1,371 NA NA NA NA 24 -17 0 0.00 79.61 108.58 0.00

2011Y 2011Y 1,148 NA NA NA NA 0 1 0 0.00 47.61 189.97 0.09

2012L2 1,129 NA NA NA NA 0 19 0 0.00 -0.34 248.98 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


AEGIS Healthcare RRG Inc. (Baltimore, MD) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 1,125 0 0 0 0 0 0 0 285 0 1,410 0 128 998 0 2,535

0 0 1,278 0 0 0 0 0 0 0 259 0 1,537 0 63 871 0 2,472

0 0 1,168 0 0 0 0 0 0 0 532 0 1,700 0 0 1,160 0 2,860

0 0 1,207 0 0 0 0 0 0 0 504 0 1,711 0 276 1,343 0 3,329

0 0 1,261 0 0 0 0 0 0 0 915 0 2,176 627 0 1,137 0 3,941

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

1,283 90 1,373 0 0 107 0 31 1,511

1,006 91 1,097 0 0 114 0 40 1,250

1,290 95 1,385 0 0 104 0 0 1,489

1,675 111 1,785 0 275 121 0 0 2,181

1,564 111 1,675 708 275 154 0 0 2,812

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

154 0 0 238 632 1,024

154 0 0 456 612 1,222

154 0 0 605 612 1,371

146 0 0 382 620 1,148

151 0 0 345 633 1,129

Total Liabilities and C&S

2,535

2,472

2,860

3,329

3,941

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 61 13 -13 1,410 0 0 0 1,125 0 0

2009Y 73 0 54 1,537 0 0 0 1,278 0 0

2010Y 92 24 -17 1,700 0 0 0 1,168 0 0

2011Y 37 0 1 1,711 0 0 0 1,207 0 0

2012L2 35 0 19 2,176 0 0 0 1,261 0 0

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA NA NA NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 757 0 757

0 1,694 0 1,694

0 1,624 0 1,624

0 1,561 0 1,561

0 1,587 NA 1,587

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-412 345 -718 1,063

-706 988 0 988

-646 978 0 978

-946 615 0 615

-1,591 -4 -605 601

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 329 0 329 58 0 227 0 2 229 616 400 0 0 46 0 1,017

0 629 0 629 59 0 -277 0 1 -276 412 409 0 0 167 0 821

0 53 0 53 181 0 284 0 4 288 522 297 0 0 159 0 819

0 406 0 406 54 0 110 0 16 125 585 403 0 0 -374 0 989

NA NA NA NA NA NA NA NA NA NA 596 414 0 0 -409 0 1,010

61 13 0 0 120 15 105

73 0 0 -6 234 70 164

92 24 0 0 275 92 183

37 0 0 0 -336 -112 -224

35 0 0 0 -374 -121 -253

107 1,137 528

234 1,056 462

251 1,094 488

-336 652 450

-374 636 NA

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 0.0%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 70.5%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Maryland - 100.0%

Alaska - 0.0%

Arkansas - 0.0%

Arizona - 0.0%

2009Y Mortgage Loans - 0.0%

2008Y Other Invstmts - 29.5%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y

Alabama - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Maryland 2. Alaska 3. Alabama 4. Arkansas 5. Arizona All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 1,561 0 0 0 0 0 2008Y 0.00 NA 1,760 21.12

Rank and LOBs

DPW ($000)

All Other 2009Y 0.00 NA 757 30.98

2010Y 0.00 14.68 1,694 20.78

2011Y 0.00 1.90 1,624 20.76

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -3.79 1,561 33.02

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 0 1,207 0 1,207

Fair Value 0 1,207 0 1,207

Actual Cost 0 1,151 0 1,151

Par Value 0 --0

Total 0 3,564 0 --

2008Y NA 0.00 0.00 0.00 109.81 79.76 0.00 20.24 0.00 NA 0.00 0.00 0.00 0.00 5.03 0.00 39.35 55.61 2.41

2009Y NA 0.00 0.00 0.00 104.62 83.12 0.00 16.88 0.00 NA 0.00 0.00 0.00 0.00 2.54 0.00 35.25 62.21 2.95

2010Y NA 0.00 0.00 0.00 85.19 68.72 0.00 31.28 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 40.57 59.43 3.22

2011Y NA 0.00 0.00 0.00 105.12 70.54 0.00 29.46 0.00 NA 0.00 0.00 0.00 0.00 8.27 0.00 40.33 51.39 1.12

2012L2 NA 0.00 0.00 0.00 111.70 57.95 0.00 42.05 0.00 NA 0.00 0.00 0.00 15.91 0.00 0.00 28.86 55.23 0.89

6 - The Securities and Bond section are held at carrying value


Allied Professionals Ins Co. (Orange, CA) Address and Geographic 1100 West Town & Country Road Suite 1400 Orange, CA 92868-4655 MSA: Los Angeles-Long Beach-Santa Ana, CA (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 11710 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: National NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 86-1070645 Distribution Channel: Broker

Rating A----

Date 10/04/10 ----

STATUTORY CONTACT INFORMATION Name : Douglas Joseph Hauser Phone : (714) 571-1864 Fax : (714) 571-1863 Email : NSXDiehard@cs.com

Direction

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook 0 Not Covered by SNL ----

----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

Liquidity

OFFICERS & ADVISORS Auditor Warfield & Company Actuary Perr & Knight CEO -CFO -President Philip Christopher Stump 2008Y 2.93 5.56 20.13 8.40 30.52 44.85 12.99 75.37 69.41 5.96 0.00

Profitability Ratios

2009Y 2.29 4.33 14.88 6.79 23.13 56.01 11.96 79.14 74.52 4.62 0.00

2010Y 1.80 4.11 11.06 4.40 37.93 44.79 14.29 82.71 78.24 4.47 0.00

2011Y 1.67 3.69 21.71 9.55 20.93 44.42 8.37 65.34 61.44 3.90 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 1.59 3.51 17.58 7.86 21.16 52.07 8.22 73.22 69.57 3.65 0.00

82.7

79.1

75.4

2010Y 22,115 9,043 13,072 940 8,043

2011Y 24,157 11,350 12,808 2,235 9,443

2012L2 28,507 12,111 16,396 1,976 10,354

9,815 7,084 6,602 4,283 60.92 29.22 1.00

10,561 8,512 7,986 4,898 56.51 21.64 1.02

12,639 8,363 7,699 6,431 74.64 16.21 0.92

13,553 9,614 9,088 6,275 73.02 31.77 0.85

16,919 10,402 9,989 6,564 64.39 25.13 0.86

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

64.0

25,000

25.00 20.00

2009Y 18,918 8,367 10,551 1,196 8,355

30,000

20,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 16,256 7,117 9,139 1,243 6,996

73.2 65.3

15.00

62.0 61.0

61.0

15,000 57.0

10,000 5,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 31.14 163.88 39.98 61.00 0.00 199.72 2,787 2,427 164.94 183.35 37.94

2009Y 23.31 164.12 29.39 61.00 0.00 199.91 2,506 2,406 143.44 155.14 39.21

2011Y 2010Y 13.62 155.39 19.69 64.00 0.00 197.29 3,351 3,760 166.82 171.31 36.59

2012L2 2011Y 19.06 173.70 21.51 57.00 0.00 209.45 3,428 2,958 154.01 173.71 43.05

2012L2 30.24 160.02 40.94 62.00 0.00 181.61 5,119 5,136 165.12 174.66 39.15

10.00 5.00 0.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 17.52 14.88 0.00 3.71 26.26 9,815 2,015 3,177 1,410 72.18 31.12 25.78

2009Y 11.17 28.32 0.00 3.81 23.88 10,561 1,847 4,767 1,372 80.60 31.62 20.83

2010Y 23.64 19.00 0.00 3.92 21.86 12,639 2,920 3,745 1,034 66.17 31.85 17.13

2011Y 12.56 19.19 0.03 4.07 21.12 13,553 1,902 4,270 2,916 70.94 31.71 34.64

2012L2 12.93 NA NA NA NA NA 2,113 5,416 2,460 NA 29.99 27.28

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 1,235 72.18 1.21 0.00 0 0

2009Y 1,289 80.60 11.48 0.00 0 0

2010Y 2,185 66.17 20.32 0.00 0 0

2011Y 2,412 70.94 27.07 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

16,000

12,000

GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 19.71 17.93 6.84 -35.59 -35.39 23.34 7.15 154.79 52.55 76.59

2009Y 16.37 15.45 20.15 -3.48 -3.71 14.35 7.60 36.53 47.41 40.74

2010Y 16.90 23.89 -1.75 -20.83 -21.40 31.30 19.68 20.21 28.60 23.24

2011Y 119 85 15 3 70 1.7* 26 26* 57 8 -10 -12 -7

2011Y 9.24 -2.02 14.96 137.35 137.66 -2.42 7.23 14.38 23.75 18.24

2012L2 21.29 23.90 -10.48 -4.72 1.23 -4.73 29.28 16.15 22.16 18.48

Capital + Capital Ratios

80.6

14,000

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --126 140 NPW to Policyholders' Surplus 300 --102 92 Change in Net Premiums Written 33 -33 20 -2 Surplus Aid to Policyholders' Surplus 15 --3 3 Two-Year Overall Operating Ratio 100 --72 75 Investment Yield 6.5 3 2.3* 1.8* Gross Change in Policyholders' Surplus 50 -10 18 8 Net Change in Adj Policyholders' Surplus 25 -10 18 8 Liabilities to Liquid Assets 100 --61 64 Agents' Bal to Policyholders' Surplus 40 --11 10 1-Yr Resv Dev to Policyholders' Surplus 20 ---10 -2 2-Yr Resv Dev to Policyholders' Surplus 20 ---13 -12 Est Curr Resv Defi/Policyholders' Surplus 25 ---13 -24 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio.

72.2

70.9

66.2

ACL Risk Based Capital

10,000

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

12,000 318.8

8,000

10,000

6,000 4,000

8,000

2,000

6,000

295.1

288.3

284.7 211.7

0 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

4,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

2,000

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 23.34 -8.04 -14.88 60.92 -7.10 28.74 60.18

2009Y 14.35 -9.58 -12.90 56.51 -8.54 29.49 58.54

2010Y 31.30 -2.01 -11.93 74.64 -2.18 19.97 71.11

2011Y -2.42 -9.90 -11.51 73.02 -9.85 26.09 55.29

2012L2 -4.73 NA NA 64.39 NA NA 54.20

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 7,117 7,117 1,206 590.14 295.07 1 0 0 0.00 114.78 128.40 17.35

2009Y 8,367 8,367 1,976 423.45 211.72 9 0 0 0.00 105.82 126.10 15.41

2010Y 2010Y 9,043 9,043 1,588 569.34 284.67 2 0 0 0.00 98.35 144.55 24.16

2011Y 2011Y 11,350 11,350 1,780 637.62 318.81 2 15 0 0.00 93.38 112.85 21.25

2012L2 12,111 NA NA NA NA -2 49 0 0.00 92.53 135.38 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Allied Professionals Ins Co. (Orange, CA) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

12,031 0 0 0 0 0 0 0 0 0 2,845 0 14,876 664 63 652 0 16,256

14,657 0 0 0 0 0 0 0 0 0 2,459 0 17,116 910 51 839 0 18,918

18,532 0 0 0 0 0 0 0 0 0 1,781 0 20,313 877 41 883 0 22,115

19,046 0 760 0 0 0 0 0 0 0 2,441 0 22,247 899 15 996 0 24,157

20,482 0 797 0 0 0 0 0 0 0 4,958 0 26,237 1,212 93 964 0 28,507

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

2,659 1,624 4,283 3,784 403 69 0 601 9,139

3,077 1,821 4,898 4,309 396 295 0 653 10,551

3,684 2,747 6,431 4,972 688 327 0 653 13,072

3,716 2,559 6,275 5,498 194 282 0 559 12,808

3,863 2,701 6,564 7,882 1,172 216 0 562 16,396

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

600 0 0 6,167 350 7,117

600 0 0 7,417 350 8,367

600 0 0 8,093 350 9,043

600 0 0 10,400 350 11,350

600 0 0 11,161 350 12,111

16,256

18,918

22,115

24,157

28,507

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 394 1 0 14,876 0 12,131 0 0 0 0

2009Y 369 9 0 17,116 0 14,857 0 0 0 0

2010Y 344 2 0 20,313 0 18,532 0 0 0 0

2011Y 354 2 15 22,247 0 19,046 0 760 0 0

2012L2 365 -2 2 49 26,237 0 20,482 0 797 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Total Liabilities and C&S Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 9,815 0 9,815

0 10,561 0 10,561

0 12,639 0 12,639

0 13,553 0 13,553

0 16,919 NA 16,919

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-2,731 7,084 482 6,602

-2,049 8,512 525 7,986

-4,276 8,363 663 7,699

-3,939 9,614 526 9,088

-6,517 10,402 413 9,989

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 554 0 554 650 0 304 0 507 811 2,015 3,177 0 0 1,410 0 5,192

0 537 0 537 695 0 418 0 197 615 1,847 4,767 0 0 1,372 0 6,614

0 493 0 493 894 0 607 0 926 1,533 2,920 3,745 0 0 1,034 0 6,665

0 728 0 728 1,329 0 32 0 -187 -155 1,902 4,270 0 0 2,916 0 6,172

NA NA NA NA NA NA NA NA NA NA 2,113 5,416 0 0 2,460 0 7,529

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income

394 1 0 0 1,804 562 1,243

369 9 0 0 1,750 553 1,196

344 2 0 0 1,380 440 940

354 2 0 0 3,273 1,038 2,235

365 -2 0 0 2,823 847 1,976

Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses

1,803 6,996 3,833

1,741 8,364 5,463

1,378 8,045 4,640

3,271 9,445 5,601

2,824 10,352 NA

2007Y

2008Y

2009Y

2010Y

2011Y

11,459 0

12,131 0

13,736 1,120

17,855 677

17,704 1,343

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 85.6%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 3.4%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

California - 22.4% Texas - 4.4%

New York - 17.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Florida - 9.3%

Washington - 4.1%

2008Y Other Invstmts - 11.0%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. California 2. New York 3. Florida 4. Texas 5. Washington All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 3,032 2,308 1,263 590 556 5,805 2008Y 0.00 NA 9,160 12.33

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 79.19 9,815 14.55

DPW ($000) 13,553 0 0 0 0 0 2010Y 0.00 13.27 10,561 10.03

2011Y 0.00 12.08 12,639 21.88

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 9.40 13,553 9.27

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

10,910 0 0 550

12,031 0 0 0

1,045 3,685 9,926 0

1,370 7,194 9,968 0

2,179 7,094 9,773 0

Carr Value 19,046 760 0 19,806

Fair Value 19,179 760 0 19,938

Actual Cost 19,748 745 0 20,494

Par Value 18,160 --18,160

Total 76,133 2,264 0 --

2008Y 1.00 0.00 0.00 80.87 0.00 0.00 0.00 19.13 0.00 NA 0.00 0.00 0.00 4.09 0.39 0.00 4.01 91.51 2.42

2009Y 1.08 0.00 0.00 85.63 0.00 0.00 0.00 14.37 0.00 NA 0.00 0.00 0.00 4.81 0.27 0.01 4.43 90.47 1.95

2010Y 1.04 0.00 0.00 91.23 0.00 0.00 0.00 8.77 0.00 NA 0.00 0.00 0.00 3.97 0.19 0.00 3.99 91.85 1.56

2011Y 1.07 0.00 0.00 85.61 6.69 3.41 0.00 10.97 0.00 NA 0.00 0.00 0.00 3.72 0.06 0.00 4.12 92.09 1.47

2012L2 1.06 0.00 0.00 78.06 6.58 3.04 0.00 18.90 0.00 NA 0.00 0.00 0.00 4.25 0.33 0.00 3.38 92.04 1.28

6 - The Securities and Bond section are held at carrying value


Amer Builders Ins Co. RRG Inc. (Billings, MT) Address and Geographic Crowne Plaza 27 North 27th Street, Suite 1900 Billings, MT 59101-2343 MSA: Billings, MT (Metro)

Business Profile NAIC Company Code : 12631 Business Focus : P&C Minimum NPW Geographic Focus: Geography Minimum NPW NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-5162272 Distribution Channel: Direct Response

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Katie Gray Phone : (800) 226-0793 Fax : (941) 906-7538 Email : kgray@pboa.com

Direction -----

Watch/Outlook Not Covered by SNL ----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

2008Y 1,605 870 735 -121 96

2009Y 1,180 800 380 -234 -66

2010Y 1,569 752 818 -58 51

2011Y 1,130 698 432 -65 44

2012L2 1,173 756 417 -48 35

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

186 33 92 142 138.19 -7.43 0.04

227 -52 -66 159 NM -29.30 -0.07

154 36 51 534 1,144.22 -7.58 0.05

189 45 44 117 383.31 -8.63 0.06

28 7 35 113 321.20 -9.43 0.01

Liquidity

OFFICERS & ADVISORS Auditor Shores Tagman Butler & Co P.A. Actuary Milliman Inc. CEO -CFO -President Robert J. Arowood

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

1,800 1,600

999.0

1,400

999.0

1,200 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 1.15 12.02 -12.66 -8.44 54.53 354.74 13.37 409.27 404.96 4.31 0.00

Profitability Ratios

2009Y 0.30 -1.36 -29.76 -17.93 NM NM NM NM NM NA 0.00

2010Y 0.10 0.23 -7.52 -3.53 -40.26 356.80 -47.94 316.54 316.37 0.17 0.00

2011Y -0.04 -0.05 -8.75 -5.35 53.05 189.46 24.39 242.51 242.56 -0.05 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 0.01 0.18 -6.50 -4.11 42.17 NM 18.24 1,395.69 1,395.65 0.03 0.00

5.00 0.00

1,395.7

-5.00 -10.00 -15.00 -20.00 409.3

-25.00

316.5

242.5

-30.00 -35.00

0.0 2009Y

2008Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 41.16 -372.52 0.00 81.32 645.93 186 50 116 -75 17.63 NM -74.17

2009Y NM NM 0.00 NM NM 227 21 143 -231 -23.13 NM NM

2010Y 7.68 -154.22 0.00 85.06 425.96 154 -21 130 -59 23.63 NM -114.33

2011Y 28.67 -107.01 0.00 -11.17 307.64 189 23 85 -64 23.68 NM -147.22

2012L2 23.93 NA NA NA NA NA 15 90 -70 NA NM -200.19

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 110 17.63 0.00 0.00 0 0

2009Y 530 -23.13 0.00 0.00 0 0

2010Y 438 23.63 0.00 0.00 0 0

2011Y 427 23.68 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

250

800 411.0

600 400 200

123.0 37.0

0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 81.03 81.03 68.48 123.00 0.00 450.70 419 423 430.72 430.72 -14.50

2009Y 8.63 8.63 4.10 999.00 0.00 300.22 -728 -727 -862.04 -862.04 -39.51

2011Y 2010Y 7.83 7.83 8.51 999.00 0.00 84.43 38 38 153.46 153.46 -33.42

2012L2 2011Y 24.33 24.33 15.05 411.00 0.00 401.95 29 29 262.24 262.24 -52.18

2012L2 271.57 271.57 149.98 37.00 0.00 991.15 1,047 1,047 -11.14 -11.14 -49.66

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --28 21 NPW to Policyholders' Surplus 300 --0 5 Change in Net Premiums Written 33 -33 -99* 999* Surplus Aid to Policyholders' Surplus 15 --2 3 Two-Year Overall Operating Ratio 100 --999* 999* Investment Yield 6.5 3 0.2* 0.2* Gross Change in Policyholders' Surplus 50 -10 -8 -6 Net Change in Adj Policyholders' Surplus 25 -10 -27* -7 Liabilities to Liquid Assets 100 --999* 999* Agents' Bal to Policyholders' Surplus 40 --18 2 1-Yr Resv Dev to Policyholders' Surplus 20 --0 -4 2-Yr Resv Dev to Policyholders' Surplus 20 ---4 -3 Est Curr Resv Defi/Policyholders' Surplus 25 ---28 0 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 27.05 158.16 -82.24 NM NM 44.16 -83.55 NA NA NA

2009Y -26.43 -48.24 NM NM NM 11.96 21.77 14.35 -5.15 -0.32

2010Y 32.94 114.95 NM NM NM 236.75 -31.93 33.90 -5.37 7.12

2011Y 27 6 23 2 268* 0* -7 -9 411* 1 0 -6 0

2011Y -28.00 -47.19 22.65 NM NM -78.09 22.41 11.16 -5.72 -1.06

2012L2 0.09 -1.11 -83.02 NM NM -5.86 -82.85 1.56 -4.88 -2.87

Capital + Capital Ratios

23.7

23.6

200

1,000

17.6

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

150 1,200

100 0.0

676.1

1,000

50 0

800

558.2

550.9

529.5 464.4

-50

-23.1

600

-100 2008Y

2009Y

2010Y

2011Y

400

2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

200

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 44.16 -3.58 -0.11 138.19 -38.20 62.14 16.29

2009Y 11.96 0.00 -3.58 NM 0.00 62.39 19.82

2010Y 236.75 -3.62 -3.22 1,144.22 -56.79 12.37 71.05

2011Y -78.09 -0.13 -6.25 383.31 -2.29 50.39 16.76

2012L2 -5.86 NA NA 321.20 NA NA 14.95

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 870 870 82 1,059.03 529.51 0 0 0 0.00 3.44 84.51 12.65

2009Y 800 800 59 1,352.23 676.11 0 0 0 0.00 -6.68 47.55 66.25

2010Y 2010Y 752 752 81 928.89 464.44 0 0 0 0.00 4.73 108.80 58.28

2011Y 2011Y 698 698 63 1,101.70 550.85 0 0 0 0.00 6.01 61.85 61.16

2012L2 756 NA NA NA NA 0 0 0 0.00 0.90 55.23 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Amer Builders Ins Co. RRG Inc. (Billings, MT) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 596 0 596 -3 0 1,012 0 1,605

0 0 0 0 0 0 0 0 0 0 33 0 33 144 1 1,003 0 1,180

0 0 0 0 0 0 0 0 0 0 64 0 64 18 421 1,066 0 1,569

0 0 0 0 0 0 0 0 0 0 105 0 105 4 17 1,004 0 1,130

0 0 0 0 0 0 0 0 0 0 1,134 0 1,134 -16 26 30 0 1,173

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

91 51 142 15 520 59 0 0 735

101 58 159 29 67 126 0 0 380

348 186 534 61 13 194 0 16 818

63 54 117 15 2 298 0 0 432

62 51 113 1 -9 312 0 0 417

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

1,000 0 0 -233 102 870

1,000 0 150 -466 116 800

1,000 0 150 -524 126 752

1,000 0 150 -590 138 698

0 0 1,202 -583 137 756

Total Liabilities and C&S

1,605

1,180

1,569

1,130

1,173

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 4 0 0 596 0 0 0 0 0 0

2009Y 1 0 0 33 0 0 0 0 0 0

2010Y 0 0 0 64 0 0 0 0 0 0

2011Y 0 0 0 105 0 0 0 0 0 0

2012L2 0 0 0 1,134 0 0 0 0 0 0

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA NA NA NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

2008Y

2009Y

2010Y

2011Y

2012L2

0 186 0 186

0 227 0 227

0 154 0 154

0 189 0 189

0 28 NA 28

-153 33 -59 92

-279 -52 14 -66

-118 36 -15 51

-144 45 1 44

-22 7 -28 35

0 0 0 0 7 0 12 0 31 43 50 116 0 0 -75 0 166

0 0 0 0 4 0 10 0 7 17 21 143 0 0 -231 0 164

0 5 0 5 5 0 -29 0 -1 -31 -21 130 0 0 -59 0 110

0 19 0 19 15 0 -8 0 -3 -11 23 85 0 0 -64 0 108

NA NA NA NA NA NA NA NA NA NA 15 90 0 0 -70 0 104

4 0 0 0 -71 50 -121

1 0 0 0 -230 4 -234

0 0 0 0 -58 0 -58

0 0 0 0 -64 1 -65

0 0 0 0 -70 -22 -48

-71 96 130

-230 -66 74

-58 51 52

-64 44 -4

-70 35 NA

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 0.0%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 0.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Florida - 88.4% Louisiana - 1.3%

Alabama - 3.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Georgia - 2.4%

Tennessee - 1.2%

2008Y Other Invstmts - 100.0%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Oth, Prod Liab Cmbnd - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Florida 2. Alabama 3. Georgia 4. Louisiana 5. Tennessee All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 167 6 4 2 2 7 2008Y 0.00 NA 1,133 41.55

Rank and LOBs 1. Oth, Prod Liab Cmbnd 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 186 25.87

2010Y 0.00 NA 227 -18.06

DPW ($000) 189 0 0 0 0 0 2011Y 0.00 NA 154 -56.88

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -5.74 189 33.47

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 0 0 0 0

Fair Value 0 0 0 0

Actual Cost 0 0 0 0

Par Value 0 --0

Total 0 0 0 --

2008Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 -0.18 0.00 0.00 63.06 37.12 0.25

2009Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 12.16 0.10 0.00 84.95 2.78 0.06

2010Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 1.16 26.80 0.00 67.96 4.08 0.01

2011Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.35 1.53 0.00 88.83 9.30 0.00

2012L2 NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 -1.40 2.18 0.00 2.59 96.62 0.00

6 - The Securities and Bond section are held at carrying value


Amer Trucking & Transportation (Missoula, MT) Address and Geographic 111 North Higgins Avenue Fourth Floor Missoula, MT 59802-4437 MSA: Missoula, MT (Metro)

Business Profile NAIC Company Code : 11534 Business Focus : Commercial Property Focus Geographic Focus: Regional - Western Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 33-1019877 Distribution Channel: Direct Response

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Patricia Lorraine Maloney Phone : (406) 523-3908 Fax : (406) 523-3935 Email : tmaloney@atticrrg.com

Direction -----

Watch/Outlook Not Covered by SNL ----

2008Y 4.28 8.87 22.73 6.11 70.15 15.56 32.45 85.70 76.73 8.97 0.00

Profitability Ratios

2009Y 3.57 15.97 9.20 2.23 74.35 32.06 28.99 106.41 92.75 13.66 0.00

2010Y 3.56 12.16 17.15 4.72 59.05 22.92 10.57 81.98 68.03 13.95 0.00

2011Y 3.01 13.80 -1.03 -0.32 97.69 30.42 51.02 128.11 113.15 14.96 0.00 Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

128.0

106.4 85.7

82.0

10.00 5.00 0.00 -5.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 37.70 1.85 5.15 5.04 3.53 6,376 2,662 597 536 60.17 35.23 24.15

2009Y 45.36 3.91 10.84 6.65 10.67 4,846 1,727 637 -41 41.00 36.88 15.97

2010Y 48.48 1.45 7.41 7.18 6.88 6,644 1,725 768 428 50.41 31.92 26.75

2011Y 46.67 -0.57 10.26 6.45 14.28 5,967 2,373 801 -745 44.11 NM -11.66

2012L2 54.20 NA NA NA NA NA 2,073 719 -642 NA NM -9.02

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 9,600 60.17 0.15 0.00 0 0

2009Y 15,875 41.00 1.88 0.00 0 0

2010Y 9,727 50.41 4.84 0.00 0 0

2011Y 11,467 44.11 9.51 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

7,000 6,000

2011Y 14,354 3,914 10,440 -41 2,842

2012L2 15,034 4,411 10,623 -12 2,561

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

6,376 3,837 3,795 5,750 154.82 36.19 1.44

4,846 1,987 2,323 6,400 274.39 16.10 0.61

6,644 3,349 2,921 6,088 225.01 25.72 0.79

5,967 2,632 2,429 5,702 256.58 -8.25 0.67

6,040 2,274 2,150 5,929 284.61 -5.90 0.52

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

127.0

12,000

20.00 15.00

2010Y 13,854 4,217 9,637 607 3,403

14,000

25.00 128.1

2009Y 12,964 3,239 9,725 257 2,814

16,000

2012L2 2.71 15.13 -0.31 -0.09 96.39 31.63 42.19 128.02 112.02 16.00 0.00

Return on Average Equity (C&S)

2008Y 11,680 2,660 9,020 651 4,296

Liquidity

OFFICERS & ADVISORS Auditor Anderson ZurMuehlen & Co. P.C Actuary Turner Consulting Inc. CEO Kenneth Carl Crippen CFO -President Kenneth Carl Crippen

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

100.0

10,000 74.0

8,000

78.0

75.0

6,000 4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 20.20 86.54 68.47 127.00 0.00 199.82 216 482 108.08 116.11 5.69

2009Y 6.36 102.17 19.09 100.00 0.00 295.39 1,226 1,334 162.28 180.53 9.59

2011Y 2010Y 24.45 133.58 55.87 74.00 0.00 258.99 3,494 3,800 219.65 224.52 13.83

2012L2 2011Y 22.12 126.25 59.00 78.00 0.00 289.41 335 525 109.52 116.58 11.77

2012L2 13.98 130.81 33.68 75.00 0.00 192.19 980 1,670 136.82 126.18 14.54

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --150 158 NPW to Policyholders' Surplus 300 --61 79 Change in Net Premiums Written 33 -33 -48* 69* Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --76 74 Investment Yield 6.5 3 3.8 3.6 Gross Change in Policyholders' Surplus 50 -10 22 30 Net Change in Adj Policyholders' Surplus 25 -10 22 28* Liabilities to Liquid Assets 100 --100* 74 Agents' Bal to Policyholders' Surplus 40 --85* 4 1-Yr Resv Dev to Policyholders' Surplus 20 ---10 11 2-Yr Resv Dev to Policyholders' Surplus 20 --24* -3 Est Curr Resv Defi/Policyholders' Surplus 25 ---76 8 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 0.67 3.39 2.41 176.71 242.65 2.35 -6.06 16.91 16.73 16.87

2009Y 10.99 7.82 -48.21 -56.69 -60.58 11.30 -24.00 15.03 17.72 15.67

2010Y 6.87 -0.91 68.55 102.61 136.43 -4.87 37.10 6.64 15.52 8.92

2011Y 152 67 -21 NA 87 2.8* -7 -4 78 0 8 2 9

2011Y 3.61 8.34 -21.41 NM NM -6.35 -10.19 6.31 9.09 7.02

2012L2 14.52 24.05 -32.01 NM NM -3.97 -7.60 5.38 7.35 5.93

Capital + Capital Ratios 60.2 ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

50.4

5,000

44.1

41.0

4,000

4,500 160.6

4,000 3,000

3,500

2,000

3,000 2,500

1,000 0 2008Y

2009Y

2010Y

2011Y

2,000

0.0 2012L2

1,500 1,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 2.35 20.04 21.51 154.82 15.21 36.95 216.14

2009Y 11.30 -10.19 24.28 274.39 -11.66 38.87 197.58

2010Y -4.87 11.45 -2.52 225.01 12.70 40.09 144.36

2011Y -6.35 8.42 2.25 256.58 14.62 34.19 145.68

2012L2 -3.97 NA NA 284.61 NA NA 134.41

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 2,660 NA NA NA NA -32 -863 0 0.00 133.86 339.06 360.86

2009Y 3,239 NA NA NA NA -42 636 -250 97.36 71.18 300.22 490.08

2010Y 2010Y 4,217 NA NA NA NA -19 453 -100 16.47 94.63 228.51 230.64

2011Y 2011Y 3,914 3,914 1,219 321.10 160.55 107 -249 0 0.00 65.51 266.75 292.98

2012L2 4,411 NA NA NA NA 46 -138 0 0.00 58.15 240.84 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Amer Trucking & Transportation (Missoula, MT) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

2,785 0 2,422 0 0 0 0 0 0 0 1,822 0 7,029 3,882 386 383 0 11,680

5,772 0 3,244 0 0 0 0 0 0 0 619 0 9,634 2,745 0 586 0 12,964

7,268 0 3,316 0 0 0 0 0 0 0 2,356 0 12,941 169 169 576 0 13,854

7,546 0 3,477 0 0 0 0 0 0 0 2,309 0 13,333 0 38 984 0 14,354

7,972 0 4,565 0 0 0 0 0 0 0 1,486 73 14,096 671 0 267 0 15,034

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

2,760 2,990 5,750 2,572 -27 529 0 196 9,020

3,138 3,262 6,400 2,236 962 127 0 0 9,725

2,789 3,300 6,088 2,664 580 176 0 129 9,637

2,929 2,773 5,702 2,867 1,576 141 0 155 10,440

3,072 2,856 5,929 1,406 2,534 1 0 755 10,623

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

1,996 0 0 664 0 2,660

1,996 0 0 1,243 0 3,239

2,072 0 229 1,917 0 4,217

2,072 0 152 1,690 0 3,914

2,072 0 152 2,187 0 4,411

11,680

12,964

13,854

14,354

15,034

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 340 -32 32 -863 7,029 0 3,582 0 2,422 0 0

2009Y 317 -42 42 636 9,634 0 6,174 0 3,244 0 0

2010Y 407 -19 19 453 12,941 0 7,268 0 3,316 0 0

2011Y 363 107 -249 13,333 0 7,546 0 3,477 0 0

2012L2 344 46 -138 14,096 0 7,990 0 4,565 0 0

0.00 0.00 0.57 NA 0.00 NA NA

8.10 15.44 1.62 NA 0.00 NA NA

NM -39.26 0.93 NA 0.00 NA NA

2.32 4.47 2.01 NA 0.00 NA NA

NA NA 1.81 NA NA NA NA

Total Liabilities and C&S Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 6,376 0 6,376

0 4,846 0 4,846

0 6,644 0 6,644

0 5,967 0 5,967

0 6,040 NA 6,040

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-2,539 3,837 42 3,795

-2,859 1,987 -336 2,323

-3,295 3,349 428 2,921

-3,335 2,632 203 2,429

-3,766 2,274 124 2,150

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 1,071 0 1,071 -1,560 0 161 0 2,990 3,151 2,662 597 0 0 536 0 3,259

0 295 0 295 782 0 378 0 272 650 1,727 637 0 0 -41 0 2,364

0 658 0 658 1,378 0 -350 0 38 -312 1,725 768 0 0 428 0 2,493

0 1,099 0 1,099 1,660 0 140 0 -526 -387 2,373 801 0 0 -745 0 3,173

NA NA NA NA NA NA NA NA NA NA 2,073 719 0 0 -642 0 2,792

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income

340 -32 161 0 1,006 354 651

317 -42 173 0 407 150 257

407 -19 75 0 892 285 607

363 107 50 0 -224 -183 -41

344 46 67 0 -185 -173 -12

Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses

1,037 4,264 -906

449 2,771 1,488

910 3,384 2,240

-331 2,949 2,563

-231 2,607 NA

2007Y

2008Y

2009Y

2010Y

2011Y

4,339 244

2,252 1,309

3,639 2,434

5,358 1,843

5,571 1,824

42 0 0 0

0 0 0 20

100 0 0 0

68 0 0 0

152 0 0 0

BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 56.6%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 26.1%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Washington - 33.3% Oregon - 10.7%

Montana - 27.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Multi Prl - 0.0%

Fidelity & Surety - 0.0%

All Other - 0.0%

Louisiana - 20.5%

Ohio - 8.5%

2008Y Other Invstmts - 17.3%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Comm'l Auto St - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Washington 2. Montana 3. Louisiana 4. Oregon 5. Ohio All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 1,985 1,610 1,226 639 508 0 2008Y 0.00 NA 6,787 -25.84

Rank and LOBs 1. Comm'l Auto St 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Multi Prl 5. Fidelity & Surety All Other 2009Y 0.00 NA 6,376 110.71

DPW ($000) 5,967 0 0 0 0 0 2010Y 0.00 -1.38 4,846 163.99

2011Y 0.00 -1.01 6,644 -65.77

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -0.55 5,967 169.40

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.50

1.00

1.50

2.00

2.50

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

368 0

948 0

NA NA

0 0 0 0

0 0 0 0

541 0 0 0

1,359 0 0 0

2,008 0 0 0

Carr Value 7,546 3,477 0 11,023

Fair Value 7,667 3,477 0 11,144

Actual Cost 7,577 3,308 0 10,885

Par Value 7,626 --7,626

Total 30,416 10,263 0 --

2008Y 1.39 0.77 0.77 39.62 91.05 34.46 0.00 25.92 0.00 NA 0.00 0.00 0.00 33.24 3.31 0.00 3.28 60.17 2.91

2009Y 1.43 3.09 0.00 59.91 100.13 33.67 0.00 6.42 0.00 NA 0.00 0.00 0.00 21.17 0.00 0.00 4.52 74.31 2.45

2010Y 1.27 1.61 0.00 56.17 78.63 25.63 0.00 18.21 0.00 NA 0.00 0.00 0.00 1.22 1.22 0.00 4.16 93.41 2.94

2011Y 1.28 3.88 0.00 56.60 88.84 26.08 0.00 17.32 0.00 NA 0.00 0.00 0.00 0.00 0.26 0.00 6.85 92.88 2.53

2012L2 1.25 3.28 0.00 56.55 103.50 32.39 0.00 10.54 0.00 NA 0.00 0.00 0.52 4.46 0.00 0.00 1.78 93.76 2.29

6 - The Securities and Bond section are held at carrying value


Applied Medico-Legal Solutions (Phoenix, AZ) Address and Geographic 2555 East Camelback Road Suite 700 Phoenix, AZ 85016-4264 MSA: Phoenix-Mesa-Glendale, AZ (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 11598 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: National NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 81-0603029 Distribution Channel: General Agnt/Managing General Agnt

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Lee M. Milizia Phone : (602) 427-3208 Fax : (623) 427-3032 Email : lee_milizia@agl.aon.com

Direction -----

Watch/Outlook Not Covered by SNL ----

2008Y 4.33 7.20 10.23 3.47 59.80 29.69 44.94 89.48 82.02 7.46 0.00

Profitability Ratios

2009Y 2.27 3.04 8.72 3.01 68.83 23.40 43.05 92.23 88.67 3.56 0.00

2010Y 3.40 5.68 4.49 1.39 71.82 28.86 46.84 100.68 94.49 6.18 0.00

Return on Average Equity (C&S)

2011Y 4.62 8.84 5.58 1.56 74.30 29.60 43.34 103.90 94.55 9.35 0.00

2012L2 4.28 8.13 5.94 1.62 73.88 27.25 44.42 101.14 91.52 9.62 0.00

101.1

100.7

92.2 89.5

4.00 2.00 0.00

2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 14.86 26.64 0.00 0.73 2.32 23,013 11,322 5,828 1,783 85.31 41.84 17.00

2009Y 25.78 17.34 0.00 1.20 4.86 30,001 16,952 6,752 926 96.18 30.23 8.78

2010Y 24.98 20.60 0.00 1.55 6.71 33,162 18,421 8,064 -835 84.26 37.99 4.26

2011Y 30.96 20.10 0.00 1.44 8.06 36,078 21,546 9,075 -1,622 84.99 34.46 4.66

2012L2 29.46 NA NA NA NA NA 21,004 9,167 -1,743 NA 32.12 4.31

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 6,109 85.31 21.66 0.00 0 0

2009Y 4,827 96.18 29.63 0.00 0 0

2010Y 5,937 84.26 22.17 0.00 0 0

2011Y 7,039 84.99 15.84 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

40,000

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

23,013 19,633 18,933 21,017 104.17 22.15 1.19

30,001 28,855 24,630 26,278 93.98 12.22 1.52

33,162 27,943 25,651 34,225 120.78 5.68 1.35

36,078 30,663 28,999 43,422 138.20 6.73 1.38

37,547 33,638 28,427 47,144 154.50 5.84 1.38

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

99.0

98.0

99.0

60,000

93.0

50,000 40,000 30,000

84.0

20,000 10,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 14.69 96.22 27.34 93.00 0.00 128.83 4,605 5,130 134.18 142.88 16.72

2009Y 10.71 94.13 23.02 99.00 0.00 115.45 9,154 9,878 150.60 153.64 10.88

2011Y 2010Y 10.64 97.51 26.15 98.00 0.00 114.84 9,308 8,880 149.54 153.41 5.49

2012L2 2011Y 10.37 100.45 28.82 99.00 0.00 113.69 6,370 9,124 127.33 130.13 2.91

2012L2 10.74 100.83 29.37 84.00 0.00 104.51 6,058 9,026 124.35 125.97 3.26

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --158 160 NPW to Policyholders' Surplus 300 --152 135 Change in Net Premiums Written 33 -33 47* -3 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --84 89 Investment Yield 6.5 3 2.4* 3.5 Gross Change in Policyholders' Surplus 50 -10 15 9 Net Change in Adj Policyholders' Surplus 25 -10 -5 -6 Liabilities to Liquid Assets 100 --99 98 Agents' Bal to Policyholders' Surplus 40 --42* 38 1-Yr Resv Dev to Policyholders' Surplus 20 --5 -5 2-Yr Resv Dev to Policyholders' Surplus 20 --NA NA Est Curr Resv Defi/Policyholders' Surplus 25 --4 -33 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 10.82 15.77 8.91 9.37 -25.58 20.80 14.98 74.59 40.58 57.33

2009Y 26.92 33.15 46.97 -35.09 0.31 25.03 30.37 41.40 35.31 39.28

2010Y 19.21 24.15 -3.16 -48.31 -42.69 30.24 10.53 35.81 22.98 31.26

2011Y 162 138 10 NA 93 4.9 7 -5 99 41* -5 -14 -48

2011Y 17.42 21.50 9.73 26.85 32.92 26.87 8.79 27.21 12.75 22.27

2012L2 11.36 12.70 17.23 18.72 38.87 15.33 8.83 21.13 11.46 18.04

Capital + Capital Ratios

35,000 30,000

2012L2 91,096 24,391 66,705 1,380 31,528

70,000

8.00 6.00

2011Y 83,910 22,205 61,705 1,240 32,116

80,000

103.9

10.00

2010Y 71,460 20,673 50,787 933 27,665

90,000

Combined Ratio

12.00

2009Y 59,943 19,036 40,908 1,628 25,985

100,000

Return on Avg Assets

Net Yield on Invested Assets

2008Y 47,230 16,507 30,724 1,623 20,663

Liquidity

OFFICERS & ADVISORS Auditor Saslow Lufkin & Buggy LLP Actuary Aon Global Risk Consulting CEO -CFO -President Richard B. Welch

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

96.2

ACL Risk Based Capital

85.3

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

85.0

84.3

25,000

25,000

20,000 20,000

15,000

299.2

281.8 255.3

10,000

217.5

15,000

187.2

5,000 0 2008Y

2009Y

2010Y

2011Y

10,000

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 20.80 -4.84 -9.47 104.17 -4.11 33.13 127.32

2009Y 25.03 5.16 -0.44 93.98 3.46 30.26 138.05

2010Y 30.24 -5.19 0.29 120.78 -3.85 28.93 165.56

2011Y 26.87 -5.02 -13.54 138.20 -3.58 26.68 195.55

2012L2 15.33 NA NA 154.50 NA NA 193.28

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

5,000 0 2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 16,507 16,507 2,929 563.59 281.80 -724 -2,414 0 0.00 123.78 186.13 37.01

2009Y 19,036 19,036 3,728 510.55 255.28 53 1,020 -3,000 184.31 154.62 214.90 25.36

2010Y 2010Y 20,673 20,673 4,752 435.07 217.53 325 1,999 -3,949 423.27 134.55 245.67 28.72

2011Y 2011Y 22,205 22,205 5,930 374.45 187.23 397 630 -2,986 240.79 137.92 277.89 31.70

2012L2 24,391 NA NA NA NA 675 848 -2,969 215.21 144.78 273.48 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Applied Medico-Legal Solutions (Phoenix, AZ) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

23,975 14 3,827 0 0 0 0 0 0 0 4,513 381 32,709 6,451 0 8,071 0 47,230

32,158 0 4,346 0 0 0 0 0 0 0 4,382 26 40,912 8,062 0 10,970 0 59,943

40,799 0 5,102 0 0 0 0 0 0 0 5,406 9 51,316 7,907 163 12,073 0 71,460

45,941 0 9,672 0 0 0 0 0 0 0 6,400 -23 61,990 9,011 286 12,624 0 83,910

46,697 0 13,689 0 0 0 0 0 0 0 7,164 0 67,550 9,720 0 13,826 0 91,096

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

17,773 3,244 21,017 9,115 0 323 0 268 30,724

21,018 5,260 26,278 13,339 0 677 0 613 40,908

28,018 6,207 34,225 15,632 0 590 0 341 50,787

35,210 8,212 43,422 17,296 0 444 0 543 61,705

41,883 5,260 47,144 17,493 0 358 0 1,710 66,705

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

12,943 0 0 7,896 -4,333 16,507

16,262 0 0 6,523 -3,750 19,036

19,071 0 0 3,920 -2,318 20,673

21,566 0 0 2,446 -1,806 22,205

23,093 0 0 2,967 -1,668 24,391

Total Liabilities and C&S

47,230

59,943

71,460

83,910

91,096

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

2008Y 1,413 -724 724 -2,414 32,709 0 24,184 14 3,827 0 0

2009Y 876 53 1,020 40,912 0 32,158 0 4,346 0 0

2010Y 1,586 325 1,999 51,316 0 42,826 0 5,102 0 0

2011Y 2,711 397 630 61,990 0 50,141 0 9,672 0 0

2012L2 2,734 675 848 67,550 0 50,637 0 13,689 0 0

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%)

0.00 0.00 12.24 NA 0.00 NA NA

0.00 0.00 7.40 NA 0.00 NA NA

0.00 0.00 8.91 NA 0.00 NA NA

0.00 0.00 8.43 NA 0.00 NA NA

NA NA 8.35 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 23,013 0 23,013

0 30,001 0 30,001

0 33,162 0 33,162

0 36,078 0 36,078

0 37,547 NA 37,547

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-3,380 19,633 700 18,933

-1,147 28,855 4,224 24,630

-5,218 27,943 2,293 25,651

-5,416 30,663 1,664 28,999

-3,910 33,638 5,210 28,427

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 4,882 0 4,882 2,820 0 3,626 0 -7 3,619 11,322 5,828 0 0 1,783 0 17,150

0 7,357 0 7,357 4,334 0 3,245 0 2,016 5,261 16,952 6,752 0 0 926 0 23,705

0 5,014 0 5,014 5,461 0 7,000 0 946 7,946 18,421 8,064 0 0 -835 0 26,486

0 5,376 0 5,376 6,972 0 7,192 0 2,006 9,198 21,546 9,075 0 0 -1,622 0 30,621

NA NA NA NA NA NA NA NA NA NA 21,004 9,167 0 0 -1,743 0 30,171

1,413 -724 317 0 2,790 1,167 1,623

876 53 478 0 2,333 705 1,628

1,586 325 428 0 1,504 571 933

2,711 397 343 63 1,892 652 1,240

2,734 675 304 63 2,032 653 1,380

Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses

3,513 19,939 8,825

2,280 26,038 11,206

1,179 27,990 13,644

1,495 32,513 15,677

1,357 32,203 NA

BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

2007Y

2008Y

2009Y

2010Y

2011Y

9,915 0

19,438 1,785

27,985 1,792

35,318 3,694

40,925 4,988

0 0 0 0

320 2,636 0 4

0 2,380 0 0

0 3,815 0 0

0 4,227 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 74.1%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 15.6%

Top 5 States by DPW - 2011Y

New York - 31.6% Texas - 11.6%

Arizona - 13.1%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Florida - 12.2%

Connecticut - 8.2%

2008Y Other Invstmts - 10.3%

SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. New York 2. Arizona 3. Florida 4. Texas 5. Connecticut All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 11,403 4,738 4,407 4,188 2,973 8,370 2008Y 0.00 NA 20,015 42.33

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 66.02 23,013 47.79

DPW ($000) 36,078 0 0 0 0 0 2010Y 0.01 30.01 30,001 37.00

2011Y 0.01 23.19 33,162 47.43

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.01 15.02 36,078 43.84

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.00

5.00

10.00

15.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

5,352 0

NA NA

0 0 0 0

9,217 0 0 0

12,151 0 0 0

1,004 2,410 9,728 0

1,460 2,001 11,572 0

Carr Value 45,941 9,672 0 55,613

Fair Value 45,941 9,672 0 55,613

Actual Cost 44,981 9,602 0 54,583

Par Value 43,124 --43,124

Total 179,987 28,946 0 --

2008Y 1.43 17.94 0.02 73.30 23.18 11.70 0.08 13.80 0.00 NA 0.00 0.00 1.16 13.66 0.00 0.00 17.09 69.25 2.99

2009Y 1.28 12.51 0.00 78.60 22.83 10.62 0.00 10.71 0.00 NA 0.00 0.00 0.06 13.45 0.00 0.00 18.30 68.25 1.46

2010Y 1.35 18.45 0.00 79.50 24.68 9.94 0.00 10.54 0.00 NA 0.00 0.00 0.02 11.07 0.23 0.00 16.89 71.81 2.22

2011Y 1.35 19.04 0.00 74.11 43.56 15.60 0.00 10.32 0.00 NA 0.00 0.00 -0.04 10.74 0.34 0.00 15.04 73.88 3.23

2012L2 1.39 17.34 0.00 69.13 56.12 20.26 0.00 10.61 0.00 NA 0.00 0.00 0.00 10.67 0.00 0.00 15.18 74.15 3.00

6 - The Securities and Bond section are held at carrying value


CARE RRG Inc. (Washington, DC) Address and Geographic 2233 Wisconsin Avenue, NW Suite 310 Washington, DC 20007-4104 MSA: Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 11825 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Southern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 52-2395338 Distribution Channel: Broker, Independent Agency

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Charles Halstead-Johnson Phone : (802) 479-7801 Fax : (802) 223-3911 Email : cjohnson@riskservcos.com

Direction -----

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook Not Covered by SNL ----

Liquidity

OFFICERS & ADVISORS Auditor Shores Tagman Butler & Co P.A. Actuary Milliman Inc. CEO Daniel L. Hafendorfer CFO Michael T. Rogers President Daniel L. Hafendorfer

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 2.00 11.63 1.36 0.15 73.92 40.92 56.77 114.84 105.96 8.87 0.00

Profitability Ratios

2009Y 1.03 7.18 8.34 0.92 38.15 38.38 14.73 76.53 70.00 6.52 0.00

2010Y 0.67 5.59 3.64 0.44 56.80 27.33 36.27 84.13 78.81 5.32 0.00

2011Y 1.36 13.28 11.79 3.73 30.03 16.11 5.12 46.15 34.77 11.37 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

35,000

2012L2 1.32 4.25 5.10 2.08 50.31 18.62 1.19 68.93 60.58 8.35 0.00

114.8 84.1

76.5

2009Y 35,604 4,154 31,451 346 1,626

2010Y 33,340 4,307 29,033 155 1,356

2011Y 11,784 4,802 6,981 535 1,249

2012L2 11,961 4,867 7,093 243 1,599

9,181 1,836 2,406 25,816 1,051.93 2.05 0.43

6,928 1,386 1,526 24,588 1,629.34 12.32 0.33

6,124 1,225 1,287 23,749 1,892.51 6.80 0.28

4,802 960 1,121 4,323 631.45 16.70 0.20

5,536 2,900 1,476 4,488 306.12 6.65 0.60

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

343.0 310.0

30,000

10.00 8.00

2008Y 37,544 4,303 33,241 59 2,620

40,000

14.00 12.00

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

68.9

306.0

25,000 20,000 15,000 10,000

78.0

72.0

5,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 18.45 29.47 142.55 343.00 0.00 112.03 -90 -189 95.10 116.90 3.71

2009Y 23.52 39.08 178.11 310.00 0.00 112.22 600 948 172.78 143.44 4.90

2011Y 2010Y 26.08 38.41 175.78 306.00 0.00 116.30 -416 -574 66.91 90.37 5.69

2012L2 2011Y 35.26 138.48 51.26 72.00 0.00 598.23 252 285 126.15 138.45 20.30

2012L2 26.48 127.28 38.60 78.00 0.00 141.36 2,858 2,731 257.69 273.45 20.54

6.00 46.1

4.00 2.00 0.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 17.15 7.00 0.00 1.49 32.42 9,181 1,779 751 -124 20.00 34.00 3.43

2009Y 23.42 -32.12 0.00 2.55 67.95 6,928 582 532 412 20.00 32.32 31.48

2010Y 20.54 -21.60 0.00 1.88 47.05 6,124 731 335 221 20.00 46.51 21.37

2011Y 24.91 -73.45 0.00 2.92 86.65 4,802 337 155 630 20.00 29.57 60.64

2012L2 49.12 NA NA NA NA NA 743 540 194 NA 22.67 19.82

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 23,978 20.00 0.00 0.00 0 0

2009Y 21,443 20.00 0.00 0.00 0 0

2010Y 21,894 20.00 0.00 0.00 0 0

2011Y 19,091 20.00 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

10,000

GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y -4.12 -4.79 -38.90 -90.49 -90.51 9.95 -38.90 93.53 43.10 82.35

2009Y -5.17 -5.38 -24.54 470.01 484.54 -4.76 -24.54 67.73 32.26 60.00

2010Y -6.36 -7.69 -11.60 -43.38 -55.25 -3.41 -11.60 47.06 13.50 38.65

2011Y 100 20 -22 12 58 1.3* 12 12 72 8 -18 -31 296*

2011Y -64.66 -75.95 -21.59 161.30 244.90 -81.80 -21.59 -25.42 5.81 -19.04

2012L2 3.07 1.54 163.40 -45.64 -29.89 -5.57 0.58 -25.88 3.93 -19.65

Capital + Capital Ratios

9,000 8,000

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --167 142 NPW to Policyholders' Surplus 300 --33 28 Change in Net Premiums Written 33 -33 -25 -12 Surplus Aid to Policyholders' Surplus 15 --14 12 Two-Year Overall Operating Ratio 100 --92 74 Investment Yield 6.5 3 1* 0.7* Gross Change in Policyholders' Surplus 50 -10 -3 4 Net Change in Adj Policyholders' Surplus 25 -10 8 4 Liabilities to Liquid Assets 100 --310* 306* Agents' Bal to Policyholders' Surplus 40 --27 15 1-Yr Resv Dev to Policyholders' Surplus 20 ---9 -2 2-Yr Resv Dev to Policyholders' Surplus 20 ---2 -11 Est Curr Resv Defi/Policyholders' Surplus 25 ---99 -99 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio.

20.0

20.0

20.0

20.0

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

7,000 6,000

6,000 5,000

220.6

5,000

4,000 3,000

4,000

2,000 3,000

1,000 0 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

166.1

2,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

1,000

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 9.95 6.39 5.75 1,051.93 11.26 6.47 599.88

2009Y -4.76 -8.71 -2.22 1,629.34 -24.57 7.13 591.95

2010Y -3.41 -2.29 -11.20 1,892.51 -7.38 6.85 551.40

2011Y -81.80 -18.27 -30.96 631.45 -70.20 29.78 90.02

2012L2 -5.57 NA NA 306.12 NA NA 92.21

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

156.6

146.9

138.0

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 4,303 4,303 1,465 293.80 146.90 0 0 0 0.00 42.01 772.42 557.18

2009Y 4,154 4,154 1,326 313.20 156.60 0 4 0 0.00 33.36 757.19 516.25

2010Y 2010Y 4,307 4,307 1,296 332.29 166.14 0 -2 0 0.00 28.76 674.08 508.34

2011Y 2011Y 4,802 4,802 1,089 441.12 220.56 2 -39 0 0.00 21.18 145.38 397.54

2012L2 4,867 NA NA NA NA -3 6 0 0.00 60.84 145.73 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


CARE RRG Inc. (Washington, DC) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

100 0 3,456 0 0 0 0 0 0 0 6,135 0 9,690 883 22,201 4,770 0 37,544

2,717 0 0 0 0 0 0 0 0 0 7,398 0 10,115 1,121 20,502 3,866 0 35,604

1,905 0 0 0 0 0 0 0 0 0 7,571 0 9,475 637 19,462 3,764 0 33,340

6,259 0 947 0 0 0 0 0 0 0 2,462 0 9,667 371 850 895 0 11,784

5,971 0 1,179 0 0 0 0 0 0 0 1,879 0 9,028 696 1,211 1,026 0 11,961

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

16,958 8,858 25,816 4,238 1,611 927 0 649 33,241

15,943 8,644 24,588 3,535 1,888 748 0 692 31,451

15,987 7,762 23,749 3,223 1,021 520 0 519 29,033

2,965 1,359 4,323 484 1,010 619 0 546 6,981

2,733 1,755 4,488 1,899 94 508 0 105 7,093

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

1,000 0 0 1,393 1,911 4,303

1,000 0 0 1,743 1,411 4,154

1,000 0 0 1,896 1,411 4,307

1,000 0 0 2,392 1,411 4,802

1,000 0 0 2,457 1,411 4,867

37,544

35,604

33,340

11,784

11,961

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

2008Y 214 0 0 9,690 0 205 0 3,456 0 0

2009Y 100 0 4 10,115 0 4,892 0 0 0 0

2010Y 69 0 -2 9,475 0 3,580 0 0 0 0

2011Y 128 2 -39 9,667 0 6,259 0 947 0 0

2012L2 123 -3 3 6 9,028 0 5,971 0 1,179 0 0

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%)

48.74 2.32 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Total Liabilities and C&S Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 9,181 0 9,181

0 6,928 0 6,928

0 6,124 0 6,124

0 4,802 0 4,802

0 5,536 NA 5,536

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-7,345 1,836 -570 2,406

-5,542 1,386 -141 1,526

-4,899 1,225 -62 1,287

-3,841 960 -161 1,121

-2,637 2,900 1,423 1,476

0 618 0 618 475 0 748 0 -63 685 1,779 751 0 0 -124 0 2,530

0 482 0 482 442 0 -257 0 -84 -341 582 532 0 0 412 0 1,114

0 443 0 443 439 0 24 0 -174 -151 731 335 0 0 221 0 1,066

0 287 0 287 470 0 -229 0 -191 -420 337 155 0 0 630 0 491

NA NA NA NA NA NA NA NA NA NA 743 540 0 0 194 0 1,282

214 0 0 0 90 31 59

100 0 0 0 512 165 346

69 0 0 0 290 135 155

128 2 0 0 759 224 535

123 -3 0 0 314 71 243

90 2,620 1,075

512 1,626 1,155

290 1,356 1,166

757 1,250 87

317 1,597 NA

2007Y

2008Y

2009Y

2010Y

2011Y

1,468 0

205 0

4,892 0

3,580 0

6,259 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 64.7%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 9.8%

Top 5 States by DPW - 2011Y

Florida - 21.8% Texas - 11.8%

New York - 14.7%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

California - 12.2%

Kentucky - 9.7%

2008Y Other Invstmts - 25.5%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Florida 2. New York 3. California 4. Texas 5. Kentucky All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 1,045 707 587 565 467 1,430 2008Y 0.00 NA 15,027 38.88

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 9,181 44.92

DPW ($000) 4,802 0 0 0 0 0 2010Y 0.00 0.49 6,928 18.28

2011Y 0.00 -13.99 6,124 35.09

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -22.20 4,802 4.82

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 6,259 947 0 7,206

Fair Value 6,259 947 0 7,206

Actual Cost 6,274 1,018 0 7,292

Par Value 6,196 --6,196

Total 24,987 2,912 0 --

2008Y 1.00 0.00 0.00 1.03 80.30 35.66 0.00 63.31 0.00 NA 0.00 0.00 0.00 2.35 59.13 0.00 12.71 25.81 0.57

2009Y 1.00 0.00 0.00 26.86 0.00 0.00 0.00 73.14 0.00 NA 0.00 0.00 0.00 3.15 57.58 0.00 10.86 28.41 0.28

2010Y 1.00 0.00 0.00 20.10 0.00 0.00 0.00 79.90 0.00 NA 0.00 0.00 0.00 1.91 58.38 0.00 11.29 28.42 0.21

2011Y 1.00 0.00 0.00 64.74 19.73 9.80 0.00 25.46 0.00 NA 0.00 0.00 0.00 3.15 7.21 0.00 7.60 82.04 1.08

2012L2 1.00 0.00 0.00 66.13 24.22 13.06 0.00 20.81 0.00 NA 0.00 0.00 0.00 5.82 10.13 0.00 8.58 75.48 1.03

6 - The Securities and Bond section are held at carrying value


Centurion Med Liab Prtctv RRG (Phoenix, AZ) Address and Geographic 2700 North Third Street Suite 3050 Phoenix, AZ 85004-1229 MSA: Phoenix-Mesa-Glendale, AZ (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 11976 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Southern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-1145017 Distribution Channel: Direct Response

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Gemma Agustin Tuanqui Phone : (800) 226-0793 Fax : (941) 906-7538 Email : gtuanqui@pboa.com

Direction -----

Watch/Outlook Not Covered by SNL ----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

2008Y 8,492 3,435 5,058 146 2,781

2009Y 10,547 4,973 5,574 1,420 3,816

2010Y 12,979 5,653 7,325 505 4,311

2011Y 14,707 6,096 8,611 816 4,055

2012L2 15,611 6,524 9,087 852 4,357

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

3,172 3,038 2,592 3,315 125.24 24.93 0.88

3,825 3,712 3,599 3,507 107.01 57.29 0.75

4,399 4,337 4,082 5,457 106.54 12.10 0.77

4,099 3,538 3,778 6,516 162.36 19.58 0.58

4,043 3,959 4,080 7,024 160.26 19.77 0.61

Liquidity

OFFICERS & ADVISORS Auditor Shores Tagman Butler & Co P.A. Actuary Cas Actuarial Consultants Inc. CEO -CFO -President Vicente M. Juan

18,000 16,000

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

85.0

14,000

74.0

69.0

73.0

71.0

12,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 3.44 6.24 4.38 1.81 51.33 20.37 27.56 71.71 64.40 7.31 0.00

Profitability Ratios

2009Y 3.14 5.85 36.99 14.89 23.96 20.32 23.50 44.28 38.26 6.03 0.00

2010Y 2.58 5.27 9.27 4.34 69.50 18.77 52.26 88.27 82.67 5.60 0.00

2011Y 2.56 7.81 13.83 5.84 53.23 25.12 42.52 78.35 71.04 7.32 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 2.35 7.00 13.89 5.77 55.65 22.05 38.06 77.70 70.90 6.79 0.00

40.00 88.3

35.00

78.4

30.00

77.7

71.7

25.00 20.00

10,000 8,000 6,000 4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 19.47 116.17 28.68 85.00 0.00 125.75 1,311 1,052 184.33 213.74 9.83

2009Y 28.46 144.07 31.89 69.00 0.00 162.02 2,176 2,068 243.87 265.76 22.50

2011Y 2010Y 19.31 134.53 25.02 74.00 0.00 138.27 2,358 1,453 238.61 305.93 23.53

2012L2 2011Y 18.56 136.06 26.22 73.00 0.00 148.69 2,201 2,232 216.78 228.98 23.77

2012L2 14.12 139.28 19.67 71.00 0.00 145.31 1,904 1,947 189.71 198.61 25.14

44.3

15.00 10.00 5.00 0.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 23.77 8.18 0.00 2.55 9.64 3,172 1,331 619 642 95.77 66.31 29.91

2009Y 0.46 9.21 3.64 1.82 5.65 3,825 862 754 1,982 97.04 33.80 57.63

2010Y 17.24 9.21 3.20 1.58 4.77 4,399 2,837 814 431 98.59 27.10 15.30

2011Y 10.72 11.51 4.65 2.17 6.78 4,099 2,011 889 878 86.32 31.41 28.48

2012L2 17.59 NA NA NA NA NA 2,270 873 936 NA 31.93 27.85

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 128 95.77 25.00 0.00 0 0

2009Y 200 97.04 25.00 0.00 0 0

2010Y 293 98.59 24.91 0.00 0 0

2011Y 332 86.32 25.60 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

5,000

GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 12.60 18.96 34.05 5.81 -70.32 17.04 39.98 111.68 8.22 32.49

2009Y 24.19 10.20 22.18 164.34 871.34 5.80 20.58 85.77 14.71 30.79

2010Y 23.06 31.43 16.85 -70.01 -64.42 55.58 15.01 29.87 17.04 23.28

2011Y 67 58 -18 NA 78 2.6* 8 8 73 3 -11 -35 -55

2011Y 13.31 17.55 -18.42 75.07 61.44 19.40 -6.83 18.91 17.36 18.25

2012L2 9.75 11.50 4.25 141.57 84.13 16.72 -7.39 16.80 18.43 17.47

Capital + Capital Ratios

4,500 4,000

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --77 78 NPW to Policyholders' Surplus 300 --75 77 Change in Net Premiums Written 33 -33 22 17 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --48 61 Investment Yield 6.5 3 3.1 2.6* Gross Change in Policyholders' Surplus 50 -10 45 14 Net Change in Adj Policyholders' Surplus 25 -10 45* 14 Liabilities to Liquid Assets 100 --69 74 Agents' Bal to Policyholders' Surplus 40 --2 4 1-Yr Resv Dev to Policyholders' Surplus 20 ---39 -19 2-Yr Resv Dev to Policyholders' Surplus 20 ---41 -53 Est Curr Resv Defi/Policyholders' Surplus 25 ---21 -50 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio.

95.8

98.6

97.0

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

86.3

3,500

7,000

3,000 2,500

631.1

6,000

2,000

545.4

1,500

5,000

1,000

4,000

500 0 2008Y

2009Y

2010Y

2011Y

466.5 410.5

3,000

0.0 2012L2

2,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

1,000

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 17.04 -52.34 -55.78 125.24 -66.44 41.59 96.52

2009Y 5.80 -39.16 -40.91 107.01 -37.37 27.09 70.52

2010Y 55.58 -18.58 -53.01 106.54 -22.64 22.54 96.52

2011Y 19.40 -11.18 -34.94 162.36 -16.73 25.24 106.89

2012L2 16.72 NA NA 160.26 NA NA 107.67

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

469.0

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 3,435 3,435 366 938.02 469.01 -398 -2 0 0.00 91.05 147.26 3.73

2009Y 4,973 4,973 394 1,262.29 631.15 -54 118 0 0.00 96.69 112.08 4.02

2010Y 2010Y 5,653 5,653 689 821.04 410.52 33 175 0 0.00 79.58 129.57 5.18

2011Y 2011Y 6,096 6,096 653 933.09 466.54 35 47 -420 51.49 60.01 141.27 5.45

2012L2 6,524 NA NA NA NA 38 18 -420 49.29 64.52 139.29 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Centurion Med Liab Prtctv RRG (Phoenix, AZ) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

4,093 0 797 0 0 0 0 0 0 0 985 0 5,876 177 0 2,439 0 8,492

5,407 0 1,036 0 0 0 0 0 0 0 1,586 0 8,030 105 0 2,412 0 10,547

6,415 0 1,949 0 0 0 0 0 0 0 1,414 0 9,779 228 0 2,972 0 12,979

7,997 0 2,120 0 0 0 0 0 0 0 1,598 0 11,716 183 0 2,808 0 14,707

9,089 0 2,284 0 0 0 0 0 0 0 1,283 0 12,656 190 0 2,764 0 15,611

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

1,756 1,559 3,315 1,459 2 225 0 57 5,058

2,370 1,137 3,507 1,572 -93 157 0 430 5,574

4,133 1,323 5,457 1,827 -245 250 0 37 7,325

5,343 1,172 6,516 1,587 259 214 0 35 8,611

5,593 1,431 7,024 1,686 208 159 0 10 9,087

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

600 0 0 835 2,000 3,435

600 0 0 2,373 2,000 4,973

600 0 0 3,053 2,000 5,653

600 0 0 3,496 2,000 6,096

600 0 0 3,924 2,000 6,524

Total Liabilities and C&S

8,492

10,547

12,979

14,707

15,611

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 189 -398 398 -2 5,876 0 4,093 0 797 0 0

2009Y 217 -54 54 118 8,030 0 5,407 0 1,036 0 0

2010Y 228 33 175 9,779 0 6,492 0 1,949 0 0

2011Y 276 35 47 11,716 0 7,997 0 2,120 0 0

2012L2 277 38 18 12,656 0 9,089 0 2,284 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 3,172 0 3,172

0 3,825 0 3,825

0 4,399 0 4,399

0 4,099 0 4,099

0 4,043 NA 4,043

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-134 3,038 446 2,592

-113 3,712 113 3,599

-62 4,337 255 4,082

-561 3,538 -240 3,778

-84 3,959 -120 4,080

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 423 0 423 425 0 292 0 191 483 1,331 619 0 0 642 0 1,949

0 232 0 232 438 0 614 0 -422 192 862 754 0 0 1,982 0 1,617

0 370 0 370 517 0 1,763 0 186 1,949 2,837 814 0 0 431 0 3,651

0 396 0 396 556 0 1,210 0 -151 1,059 2,011 889 0 0 878 0 2,900

NA NA NA NA NA NA NA NA NA NA 2,270 873 0 0 936 0 3,143

189 -398 0 0 434 288 146

217 -54 0 0 2,145 725 1,420

228 33 0 0 693 188 505

276 35 0 0 1,189 374 816

277 38 0 0 1,252 400 852

832 2,383 1,156

2,199 3,762 1,299

660 4,344 1,372

1,155 4,089 1,539

1,213 4,395 NA

2007Y

2008Y

2009Y

2010Y

2011Y

3,087 0

4,093 0

5,407 0

6,492 0

7,997 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 68.3%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 18.1%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Texas - 53.3% Alaska - 0.0%

Arizona - 41.6%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Michigan - 5.1%

Alabama - 0.0%

2008Y Other Invstmts - 13.6%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Texas 2. Arizona 3. Michigan 4. Alaska 5. Alabama All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 2,185 1,704 210 0 0 0 2008Y 0.00 NA 2,266 20.36

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 3,172 27.99

DPW ($000) 4,099 0 0 0 0 0 2010Y 0.00 76.29 3,825 22.23

2011Y 0.00 18.13 4,399 50.76

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 10.26 4,099 48.23

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 637

0 698

0 774

NA NA

0 0

0 0

0 0

0 0

NA NA

1,774 0 0 1,162

1,919 0 0 1,537

0 0 0 2,424

0 0 0 0

0 0 0 0

Carr Value 7,997 2,120 0 10,118

Fair Value 7,997 2,120 0 10,118

Actual Cost 7,552 1,983 0 9,535

Par Value 7,326 --7,326

Total 30,872 6,224 0 --

2008Y 1.00 0.00 0.00 69.67 23.22 13.57 0.00 16.76 0.00 NA 0.00 0.00 0.00 2.09 0.00 0.00 28.72 69.19 2.23

2009Y 1.00 0.00 0.00 67.34 20.84 12.91 0.00 19.75 0.00 NA 0.00 0.00 0.00 1.00 0.00 0.00 22.87 76.13 2.06

2010Y 1.00 0.00 0.00 65.61 34.48 19.93 0.00 14.46 0.00 NA 0.00 0.00 0.00 1.76 0.00 0.00 22.90 75.34 1.76

2011Y 1.00 0.00 0.00 68.26 34.79 18.10 0.00 13.64 0.00 NA 0.00 0.00 0.00 1.24 0.00 0.00 19.09 79.66 1.88

2012L2 1.00 0.00 0.00 71.81 35.01 18.05 0.00 10.14 0.00 NA 0.00 0.00 0.00 1.22 0.00 0.00 17.71 81.07 1.78

6 - The Securities and Bond section are held at carrying value


Charitable Svc Prvdrs Recpl (Phoenix, AZ) Address and Geographic 15255 North 40th Street Suite 109 Phoenix, AZ 85032-4638 MSA: Phoenix-Mesa-Glendale, AZ (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 12167 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Western Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-8095873 Distribution Channel: Direct Response

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Richard P. Marshall Phone : (602) 952-9532 Fax : (602) 952-8789 Email : Dick.Marshall@rqih.com

Direction -----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook Not Covered by SNL ----

Liquidity

OFFICERS & ADVISORS Auditor Brown Smith Wallace LLC Actuary Milliman Inc. CEO David Barger Ellis CFO Matthew Luger President David Barger Ellis 2008Y 2.14 5.85 18.35 11.58 11.48 46.28 -4.15 57.76 51.91 5.85 0.00

Profitability Ratios

2009Y 1.29 2.91 38.20 27.15 9.68 29.11 9.30 38.79 35.89 2.91 0.00

2010Y 2.19 6.42 27.39 20.65 5.17 37.30 0.96 42.47 36.05 6.42 0.00

3,500

2011Y 1.92 7.53 20.01 15.40 15.01 33.99 9.20 49.00 41.47 7.53 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 1.65 8.27 20.50 16.26 -8.53 49.53 -10.87 41.00 33.65 7.35 0.00

40.00 57.8 49.0

30.00 25.00

42.5

38.8

41.0

20.00 15.00 10.00 5.00 0.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 15.63 0.00 0.00 2.05 44.23 1,334 89 358 327 57.99 0.00 45.43

2009Y 0.38 0.00 0.00 1.70 27.41 1,349 106 318 669 81.00 0.00 62.30

2010Y 4.22 0.00 0.00 5.35 31.94 1,327 54 391 603 78.98 0.00 60.09

2011Y 5.81 0.00 0.00 1.72 32.27 1,338 138 311 467 68.49 0.00 54.43

2012L2 2.34 NA NA NA NA NA -70 363 532 NA 5.84 66.91

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 159 57.99 0.00 0.00 0 0

2009Y 132 81.00 0.00 0.00 0 0

2010Y 120 78.98 0.00 0.00 0 0

2011Y 148 68.49 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

1,600 81.0

1,400

2011Y 3,521 3,244 277 579 985

2012L2 3,938 3,152 786 628 886

1,334 773 773 252 35.64 24.90 0.48

1,349 1,093 1,093 314 23.27 37.50 0.52

1,327 1,048 1,048 325 32.07 26.87 0.36

1,338 916 916 206 46.71 18.55 0.28

1,086 734 825 255 42.03 19.36 0.23

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

21.0 18.0 15.0

2,500

12.0

2,000 1,500

8.0

1,000 500 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 96.30 584.25 19.76 18.00 0.00 773.49 314 362 167.68 167.68 52.91

2009Y 55.38 664.46 8.93 15.00 0.00 764.50 572 632 262.09 254.38 72.72

2011Y 2010Y 41.13 836.86 5.08 12.00 0.00 958.58 559 648 228.17 228.17 78.90

2012L2 2011Y 69.80 NM 5.95 8.00 0.00 1,714.21 538 651 196.59 196.59 82.80

2012L2 25.28 463.97 6.31 21.00 0.00 521.42 30 136 104.61 104.61 71.68

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --64 46 NPW to Policyholders' Surplus 300 --52 36 Change in Net Premiums Written 33 -33 41* -4 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --42 35 Investment Yield 6.5 3 1.6* 2.6* Gross Change in Policyholders' Surplus 50 -10 31 37 Net Change in Adj Policyholders' Surplus 25 -10 41* 37* Liabilities to Liquid Assets 100 --15 12 Agents' Bal to Policyholders' Surplus 40 --0 0 1-Yr Resv Dev to Policyholders' Surplus 20 ---13 -7 2-Yr Resv Dev to Policyholders' Surplus 20 ---12 -13 Est Curr Resv Defi/Policyholders' Surplus 25 ---9 -7 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 15.02 -6.74 -9.66 4.81 -24.62 -18.22 -3.41 -28.74 30.22 1.32

2009Y 26.22 2.99 41.28 88.34 160.41 24.81 1.14 -23.30 30.38 5.87

2010Y 32.46 4.81 -4.04 -4.28 -4.24 3.48 -1.59 -6.28 40.23 25.90

2011Y 41 28 -13 NA 39 2.2* 12 12 8 0 -1 -4 1

2011Y 8.11 -22.73 -12.59 -20.01 -15.34 -36.70 0.80 1.14 27.57 23.58

2012L2 -0.38 -30.15 -29.78 14.67 13.22 -55.07 -18.89 -3.82 22.32 13.33

Capital + Capital Ratios

79.0

ACL Risk Based Capital

68.5

1,200 1,000

2010Y 3,257 2,899 358 683 1,116

4,000

45.00 35.00

2009Y 2,458 2,117 342 714 1,124

4,500

3,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 1,948 1,616 332 274 819

58.0

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

3,500

800

1,242.7

3,000

600

2,500

400

958.9

939.3

2009Y

2010Y

2,000

200 0 2008Y

2009Y

2010Y

2011Y

1,500

0.0 2012L2

1,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y -18.22 -11.14 0.52 35.64 -19.27 53.86 15.57

2009Y 24.81 -12.68 -12.03 23.27 -18.76 40.38 14.84

2010Y 3.48 -6.76 -12.68 32.07 -13.64 43.17 11.21

2011Y -36.70 -0.93 -3.87 46.71 -2.95 65.78 6.34

2012L2 -55.07 NA NA 42.03 NA NA 8.09

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

592.9 451.8

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2008Y 1,616 1,616 136 1,185.73 592.87 -98 3 0 0.00 51.78 20.52 9.84

2009Y 2,117 2,117 110 1,917.71 958.85 13 44 0 0.00 58.49 16.13 6.24

2010Y 2,899 2,899 154 1,878.52 939.26 13 98 0 0.00 42.02 12.35 4.14

2011Y 2011Y 3,244 3,244 131 2,485.35 1,242.68 42 57 -290 50.10 31.70 8.53 4.56

2012L2 3,152 NA NA NA NA 74 37 -324 51.70 23.97 24.94 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Charitable Svc Prvdrs Recpl (Phoenix, AZ) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

1,265 0 203 0 0 0 0 0 0 0 319 0 1,788 0 0 160 0 1,948

1,737 0 344 0 0 0 0 0 0 0 189 0 2,269 0 162 27 0 2,458

2,386 0 462 0 0 0 0 0 0 0 147 0 2,996 0 215 46 0 3,257

2,512 0 674 0 0 0 0 0 0 0 193 0 3,379 0 56 86 0 3,521

2,807 0 641 0 0 0 0 0 0 0 199 0 3,647 0 110 181 0 3,938

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

148 104 252 0 5 17 0 58 332

237 77 314 0 0 25 0 2 342

246 79 325 0 0 23 0 10 358

135 70 206 0 0 53 0 17 277

182 73 255 444 0 10 0 76 786

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

0 0 381 1,031 204 1,616

0 0 125 1,788 204 2,117

0 0 125 2,570 204 2,899

0 0 125 2,915 204 3,244

0 0 125 2,823 204 3,152

Total Liabilities and C&S

1,948

2,458

3,257

3,521

3,938

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 45 -98 98 3 1,788 0 1,415 0 203 0 0

2009Y 32 13 44 2,269 0 1,737 0 344 0 0

2010Y 67 13 98 2,996 0 2,386 0 462 0 0

2011Y 69 42 57 3,379 0 2,512 0 674 0 0

2012L2 61 74 37 3,647 0 2,807 0 641 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 1,334 0 1,334

0 1,349 0 1,349

0 1,327 0 1,327

0 1,338 0 1,338

0 1,086 NA 1,086

-560 773 0 773

-256 1,093 0 1,093

-279 1,048 0 1,048

-422 916 0 916

-353 734 -91 825

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 55 0 55 89 0 -87 0 31 -56 89 358 0 0 327 0 447

0 12 0 12 31 0 89 0 -27 62 106 318 0 0 669 0 424

0 1 0 1 43 0 9 0 1 11 54 391 0 0 603 0 445

0 195 0 195 62 0 -111 0 -8 -119 138 311 0 0 467 0 449

NA NA NA NA NA NA NA NA NA NA -70 363 0 0 532 0 293

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income

45 -98 0 0 274 0 274

32 13 0 0 714 0 714

67 13 0 0 683 0 683

69 42 0 0 579 0 579

61 74 0 0 666 39 628

Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses

372 721 468

700 1,137 343

670 1,129 436

536 1,028 343

593 960 NA

2007Y

2008Y

2009Y

2010Y

2011Y

1,120 0

1,415 0

1,737 0

2,334 52

2,455 57

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 74.3%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 20.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Arizona - 65.5% Alabama - 0.0%

Colorado - 34.5%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Alaska - 0.0%

Arkansas - 0.0%

2008Y Other Invstmts - 5.7%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Arizona 2. Colorado 3. Alaska 4. Alabama 5. Arkansas All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 876 462 0 0 0 0 2008Y 0.00 NA 1,381 38.57

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 1,334 18.95

DPW ($000) 1,338 0 0 0 0 0 2010Y 0.00 0.68 1,349 6.04

2011Y 0.00 174.09 1,327 0.13

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 0.45 1,338 14.49

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 45

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 2,512 674 0 3,186

Fair Value 2,512 674 0 3,186

Actual Cost 2,399 620 0 3,019

Par Value 2,231 --2,231

Total 9,653 1,969 0 --

2008Y 1.00 0.00 0.00 70.78 12.56 11.36 0.00 17.86 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 8.22 91.78 2.32

2009Y 1.00 0.00 0.00 76.53 16.23 15.14 0.00 8.33 0.00 NA 0.00 0.00 0.00 0.00 6.60 0.00 1.10 92.31 1.29

2010Y 1.02 0.00 0.00 79.65 15.95 15.44 0.00 4.91 0.00 NA 0.00 0.00 0.00 0.00 6.60 0.00 1.41 91.99 2.07

2011Y 1.02 0.00 0.00 74.33 20.79 19.96 0.00 5.71 0.00 NA 0.00 0.00 0.00 0.00 1.59 0.00 2.43 95.98 1.96

2012L2 1.02 0.00 0.00 76.98 20.33 17.57 0.00 5.45 0.00 NA 0.00 0.00 0.00 0.00 2.80 0.00 4.59 92.61 1.54

6 - The Securities and Bond section are held at carrying value


Chattahoochee RRG Captive Ins (Thomasville, GA) Address and Geographic 14382 US Highway 19, South Thomasville, GA 31757-4801

Business Profile NAIC Company Code : 11065 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Southern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-2848730 Distribution Channel: Direct Response

MSA: Thomasville, GA (Micro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Cory E. Brown Phone : (229) 226-1937x106 Fax : (229) 226-5394 Email : cory.brown@mailtcs.com

Direction -----

Watch/Outlook Not Covered by SNL ----

2008Y 3.69 9.70 20.47 9.35 51.83 30.90 26.83 82.73 73.03 9.70 0.00

Profitability Ratios

2009Y 2.67 8.26 12.33 5.38 50.06 31.72 32.63 81.77 73.51 8.26 0.00

2010Y 3.30 11.53 15.93 6.99 40.72 34.92 8.44 75.65 64.11 11.53 0.00

Return on Average Equity (C&S)

2011Y 2.84 12.09 6.22 2.41 56.94 36.79 8.83 93.73 81.64 12.09 0.00

2011Y 5,716 2,392 3,324 133 1,372

2012L2 6,276 2,527 3,749 481 1,589

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

1,800 1,282 1,282 1,888 102.03 21.27 0.69

2,046 1,382 1,382 2,189 131.47 19.27 0.71

1,803 1,328 1,328 2,280 158.86 22.61 0.63

1,646 1,168 1,168 2,701 212.98 12.92 0.49

7 -471 1,372 2,803 190.95 26.12 -0.19

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

60.0

5,000 2012L2 2.74 -31.40 20.11 8.24 38.85 NM -8.88 NM NM NA 0.00

Combined Ratio

93.7 82.7

2010Y 4,816 2,123 2,693 366 1,524

6,000

25.00 20.00

2009Y 4,724 1,941 2,783 262 1,540

7,000

Return on Avg Assets

Net Yield on Invested Assets

2008Y 4,270 1,854 2,416 362 1,437

Liquidity

OFFICERS & ADVISORS Auditor Sewell Morgan & Hilliard P.C. Actuary Milliman Inc. CEO -CFO -President Ashish Jain

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

81.8 75.6

15.00

59.0

59.0

4,000 58.0

3,000 57.0

2,000 1,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 50.48 171.66 65.77 58.00 0.00 283.51 1,141 1,280 451.89 452.19 9.42

2009Y 20.15 165.45 28.89 60.00 0.00 282.44 358 508 135.65 135.14 12.94

2011Y 2010Y 18.69 173.97 23.72 57.00 0.00 226.43 532 371 167.21 210.52 21.72

2012L2 2011Y 35.40 168.92 49.20 59.00 0.00 227.24 1,100 1,076 545.24 634.95 24.11

2012L2 12.54 150.55 18.60 59.00 0.00 160.94 1,107 1,293 390.13 424.99 25.90

10.00 5.00 0.00 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 25.00 0.00 0.00 7.27 23.63 1,800 665 396 221 71.23 0.00 26.18

2009Y 17.43 0.00 0.00 7.23 24.49 2,046 692 438 252 67.56 39.33 26.59

2010Y 32.28 19.81 0.00 6.78 8.33 1,803 541 464 323 73.63 31.45 34.09

2011Y 48.11 0.00 0.00 7.18 29.61 1,646 665 430 73 70.99 55.49 20.17

2012L2 47.73 NA NA NA NA NA 533 431 408 NA 21.66 39.33

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 1,205 71.23 0.00 0.00 0 0

2009Y 1,578 67.56 15.34 0.00 0 0

2010Y 476 73.63 29.62 0.00 0 0

2011Y 523 70.99 29.83 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

2,500 2,000

71.2

73.6

GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 50.61 47.75 63.41 NM NM 51.39 13.62 69.87 22.54 41.71

2009Y 10.64 15.19 7.80 8.84 -27.61 15.95 13.65 54.15 17.82 33.21

2010Y 1.94 -3.22 -3.96 26.87 39.68 4.14 -11.88 40.45 16.07 26.27

2011Y 69 49 -12 NA 68 2.8* 13 10 59 0 -11 -28 -46

2011Y 18.67 23.41 -12.00 -46.73 -63.63 18.49 -8.74 24.86 16.23 20.79

2012L2 13.03 6.13 NM 48.03 65.04 12.11 -99.60 17.28 13.62 15.72

Capital + Capital Ratios

71.0

67.6

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --105 85 NPW to Policyholders' Surplus 300 --71 63 Change in Net Premiums Written 33 -33 8 -4 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --71 65 Investment Yield 6.5 3 2.6* 3.3 Gross Change in Policyholders' Surplus 50 -10 5 9 Net Change in Adj Policyholders' Surplus 25 -10 2 6 Liabilities to Liquid Assets 100 --60 57 Agents' Bal to Policyholders' Surplus 40 --0 0 1-Yr Resv Dev to Policyholders' Surplus 20 ---12 -22 2-Yr Resv Dev to Policyholders' Surplus 20 ---31 -33 Est Curr Resv Defi/Policyholders' Surplus 25 ---27 -37 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio.

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

1,500 3,000

1,000 500

2,500

0

2,000

564.4

427.9

397.7 346.8

-500

1,500

-1,000 2008Y

2009Y

2010Y

2011Y

249.3

0.0 2012L2

1,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 51.39 -13.00 -13.57 102.03 -12.17 28.64 101.81

2009Y 15.95 -11.87 -31.33 131.47 -15.91 35.09 112.74

2010Y 4.14 -22.46 -33.11 158.86 -32.84 25.69 107.38

2011Y 18.49 -10.59 -27.87 212.98 -19.25 27.35 112.93

2012L2 12.11 NA NA 190.95 NA NA 110.92

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 1,854 1,854 164 1,128.70 564.35 -14 -8 0 0.00 72.51 130.29 64.99

2009Y 1,941 1,941 280 693.59 346.79 22 0 0 0.00 65.07 143.34 81.28

2010Y 2010Y 2,123 2,123 267 795.33 397.66 15 0 0 0.00 57.79 126.88 22.42

2011Y 2011Y 2,392 2,392 279 855.86 427.93 22 0 0 0.00 54.58 138.97 21.87

2012L2 2,527 NA NA NA NA -11 170 0 0.00 -19.68 148.34 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Chattahoochee RRG Captive Ins (Thomasville, GA) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

2,850 0 78 0 0 0 0 0 0 0 1,220 0 4,147 0 0 123 0 4,270

3,766 0 278 0 0 0 0 0 0 0 561 0 4,604 0 0 120 0 4,724

3,835 0 347 0 0 0 0 0 0 0 503 0 4,686 0 0 131 0 4,816

3,990 0 448 0 0 0 0 0 0 0 1,177 0 5,614 0 0 101 0 5,716

4,480 0 694 0 0 0 0 0 0 0 470 0 5,644 380 0 252 0 6,276

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

1,041 847 1,888 0 0 146 0 382 2,416

1,218 971 2,189 0 0 56 0 538 2,783

1,086 1,194 2,280 0 0 54 0 360 2,693

1,189 1,512 2,701 0 102 84 0 437 3,324

1,339 1,464 2,803 704 177 65 0 0 3,749

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

1,485 0 0 402 -34 1,854

1,512 0 0 612 -182 1,941

1,549 0 0 1,046 -472 2,123

1,586 0 0 1,378 -572 2,392

1,681 0 0 1,625 -779 2,527

Total Liabilities and C&S

4,270

4,724

4,816

5,716

6,276

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 124 -14 14 -8 4,147 0 2,850 0 78 0 0

2009Y 114 22 0 4,604 0 3,766 0 278 0 0

2010Y 153 15 0 4,686 0 3,835 0 347 0 0

2011Y 141 22 0 5,614 0 3,990 0 448 0 0

2012L2 148 -11 11 170 5,644 0 4,480 0 694 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 1,800 0 1,800

0 2,046 0 2,046

0 1,803 0 1,803

0 1,646 0 1,646

0 1,696 NA 7

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-518 1,282 0 1,282

-664 1,382 0 1,382

-476 1,328 0 1,328

-477 1,168 0 1,168

-477 -471 -1,843 1,372

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 0 0 0 24 0 344 0 297 641 665 396 0 0 221 0 1,061

0 274 0 274 117 0 177 0 124 301 692 438 0 0 252 0 1,130

0 244 0 244 206 0 -132 0 223 91 541 464 0 0 323 0 1,004

0 0 0 0 244 0 103 0 318 421 665 430 0 0 73 0 1,095

NA NA NA NA NA NA NA NA NA NA 533 431 0 0 408 0 964

124 -14 30 0 362 0 362

114 22 43 0 432 170 262

153 15 43 0 534 168 366

141 22 62 0 299 166 133

148 -11 69 0 614 133 481

376 1,423 448

409 1,562 594

519 1,538 712

277 1,394 720

625 1,578 NA

2007Y

2008Y

2009Y

2010Y

2011Y

2,063 0

2,675 175

3,766 0

3,835 0

3,990 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 71.1%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 8.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Georgia - 100.0% Arkansas - 0.0%

Alaska - 0.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Alabama - 0.0%

Arizona - 0.0%

2008Y Other Invstmts - 21.0%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Georgia 2. Alaska 3. Alabama 4. Arkansas 5. Arizona All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 1,646 0 0 0 0 0 2008Y 0.00 NA 1,585 23.31

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 1,800 33.33

DPW ($000) 1,646 0 0 0 0 0 2010Y 0.00 NA 2,046 0.00

2011Y 0.00 23.53 1,803 0.00

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 1.97 1,646 6.27

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

420 0

0 0

NA NA

0 0 0 0

376 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 3,990 461 0 4,451

Fair Value 4,076 448 0 4,524

Actual Cost 3,853 461 0 4,315

Par Value 3,752 --3,752

Total 15,672 1,371 0 --

2008Y 1.06 0.00 0.00 68.71 4.20 1.88 0.00 29.41 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 2.88 97.12 2.91

2009Y 1.00 0.00 0.00 81.78 14.32 6.04 0.00 12.18 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 2.54 97.46 2.42

2010Y 1.00 0.00 0.00 81.84 16.36 7.41 0.00 10.74 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 2.71 97.29 3.18

2011Y 1.00 0.00 0.00 71.07 18.72 7.98 0.00 20.96 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 1.76 98.23 2.47

2012L2 1.00 0.00 0.00 79.38 27.45 12.29 0.00 8.33 0.00 NA 0.00 0.00 0.00 6.05 0.00 0.00 4.02 89.93 2.35

6 - The Securities and Bond section are held at carrying value


Continuing Care RRG Inc. (Moncks Corner, SC) Address and Geographic 223-B Heatley Street Moncks Corner, SC 29461-3781

Business Profile NAIC Company Code : 11798 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Western Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-0221911 Distribution Channel: Broker

MSA: Charleston-North Charleston-Summerville, SC (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Katie Gray Phone : (800) 226-0793 Fax : (941) 906-7538 Email : kgray@pboa.com

Direction -----

Watch/Outlook Not Covered by SNL ----

2008Y 2.49 1.77 -14.14 -7.81 78.21 42.99 49.68 121.20 119.43 1.77 0.00

Profitability Ratios

2009Y 1.23 0.52 -9.54 -5.37 68.40 44.33 39.50 112.73 112.21 0.52 0.00

2010Y 0.01 0.00 -43.40 -19.31 89.41 39.61 69.06 129.02 129.02 0.00 0.00

2011Y 0.03 0.02 26.80 14.20 39.25 43.19 21.20 82.44 82.42 0.02 0.00 Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

112.7

104.4

10.00 82.4

0.00 -10.00 -20.00 -30.00 -40.00 -50.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 28.53 9.63 0.00 5.01 28.35 5,441 3,514 1,931 -952 82.57 NM -18.85

2009Y 28.90 8.83 0.00 4.69 30.81 5,453 3,330 2,158 -620 89.27 NM -12.05

2010Y 20.35 9.08 0.00 4.74 25.79 5,820 4,663 2,066 -1,514 89.62 NM -28.96

2011Y 18.06 9.24 0.00 4.51 29.44 4,276 1,526 1,679 683 90.92 -14.96 17.61

2012L2 15.12 NA NA NA NA NA 1,263 1,684 -225 NA NM -8.26

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y -555 82.57 0.00 0.00 0 0

2009Y -817 89.27 0.00 0.00 0 0

2010Y 79 89.62 0.00 0.00 0 0

2011Y -15 90.92 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

7,000 6,000

2012L2 5,229 2,991 2,239 106 2,723

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

5,441 4,493 4,493 10 21.80 -21.42 1.13

5,453 4,868 4,868 0 22.06 -14.29 1.28

5,820 5,216 5,216 412 32.21 -49.34 2.04

4,276 3,887 3,887 535 39.99 23.31 1.16

3,397 2,904 2,723 1,036 49.03 -7.19 0.97

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

217.0

151.0

4,000 3,000 2,000

83.0 53.0

1,000

49.0

0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y

2008Y 120.69 135.77 51.13 83.00 0.00 14,742.41 -1,706 -1,551 68.58 68.58 -11.01

2009Y 46.05 46.05 28.59 217.00 0.00 NA -1,204 -1,170 77.71 77.71 -16.45

2011Y 2010Y 187.57 187.57 78.66 53.00 0.00 508.10 838 840 113.00 113.00 -64.49

2012L2 2011Y 205.07 205.07 74.96 49.00 0.00 468.43 489 491 115.57 115.57 -33.87

2012L2 66.06 66.06 49.44 151.00 0.00 79.59 -2,068 -2,068 57.89 57.89 -39.63

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --143 227 NPW to Policyholders' Surplus 300 --128 204 Change in Net Premiums Written 33 -33 8 7 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --116* 121* Investment Yield 6.5 3 1.6* 0* Gross Change in Policyholders' Surplus 50 -10 -4 -33* Net Change in Adj Policyholders' Surplus 25 -10 -10* -35* Liabilities to Liquid Assets 100 --217* 53 Agents' Bal to Policyholders' Surplus 40 --0 0 1-Yr Resv Dev to Policyholders' Surplus 20 --0 0 2-Yr Resv Dev to Policyholders' Surplus 20 ---5 NA Est Curr Resv Defi/Policyholders' Surplus 25 --0 -16 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y -15.02 -32.05 -37.93 NM NM -95.14 -1.83 22.41 44.58 35.43

2009Y 9.14 40.49 8.35 NM NM NM 0.22 -3.43 23.49 8.31

2010Y -41.05 -54.54 7.14 NM NM NM 6.72 -19.75 -5.27 -11.20

2011Y 127 116 -25 NA 109* 0* 31 31* 49 0 3 NA -10

2011Y 26.43 14.55 -25.47 NM NM 29.93 -26.53 -12.10 -1.70 -5.23

2012L2 -12.16 -26.11 -24.96 NM -66.51 -47.39 -20.17 -6.22 -4.23 -5.12

Capital + Capital Ratios

90.9

89.6

89.3

2011Y 4,595 3,365 1,230 787 3,890

5,000

129.0

121.2

20.00

2010Y 3,635 2,561 1,074 -1,329 5,218

6,000

40.00 30.00

2009Y 6,166 3,804 2,362 -394 4,898

7,000

2012L2 -0.04 -0.04 3.40 1.93 46.40 58.00 31.28 104.40 104.44 -0.04 0.00

Return on Average Equity (C&S)

2008Y 5,650 3,968 1,681 -570 4,582

Liquidity

OFFICERS & ADVISORS Auditor Shores Tagman Butler & Co P.A. Actuary Milliman Inc. CEO -CFO -President Leslie Breckenridge

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

82.6

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

5,000 4,500

4,000

4,000 3,000

310.8 288.9

3,500

2,000

3,000

253.6

241.7

2,500

1,000 0 2008Y

2009Y

2010Y

2011Y

185.2

2,000

0.0 2012L2

1,500 1,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y -95.14 -4.91 0.06 21.80 -4.56 88.98 0.25

2009Y NM -0.25 -4.91 22.06 -0.21 NA 0.00

2010Y NM 0.00 -0.25 32.21 0.00 48.27 16.09

2011Y 29.93 3.44 0.00 39.99 2.26 40.21 15.91

2012L2 -47.39 NA NA 49.03 NA NA 34.64

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 3,968 3,968 638 621.55 310.78 0 -2 0 0.00 111.44 42.37 -13.99

2009Y 3,804 3,804 750 507.26 253.63 0 2 0 0.00 117.87 62.09 -21.48

2010Y 2010Y 2,561 2,561 691 370.34 185.17 0 0 0 0.00 170.27 41.93 3.08

2011Y 2011Y 3,365 3,365 582 577.88 288.94 0 0 0 0.00 132.28 36.55 -0.45

2012L2 2,991 NA NA NA NA 0 0 0 0.00 92.90 74.85 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Continuing Care RRG Inc. (Moncks Corner, SC) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 2,029 0 2,029 43 57 3,521 0 5,650

0 0 0 0 0 0 0 0 0 0 1,088 0 1,088 0 216 4,863 0 6,166

0 0 0 0 0 0 0 0 0 0 2,014 0 2,014 9 0 1,611 0 3,635

0 0 0 0 0 0 0 0 0 0 2,523 0 2,523 0 0 2,073 0 4,595

0 0 0 0 0 0 0 0 0 0 1,479 0 1,479 28 0 3,722 0 5,229

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

9 1 10 0 612 928 0 131 1,681

0 0 0 0 1,033 1,299 0 30 2,362

354 58 412 0 -79 695 0 46 1,074

285 250 535 0 15 680 0 0 1,230

511 525 1,036 822 -217 598 0 0 2,239

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

0 0 0 -622 4,591 3,968

0 0 0 -1,015 4,819 3,804

0 0 0 -2,344 4,905 2,561

0 0 0 -1,557 4,922 3,365

0 0 0 -2,073 5,063 2,991

Total Liabilities and C&S

5,650

6,166

3,635

4,595

5,229

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 79 0 -2 2,029 0 254 0 0 0 0

2009Y 25 0 2 1,088 0 0 0 0 0 0

2010Y 0 0 0 2,014 0 0 0 0 0 0

2011Y 1 0 0 2,523 0 0 0 0 0 0

2012L2 -1 0 0 1,479 0 0 0 0 0 0

0.00 0.00 0.00 NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA NA NA NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 5,441 0 5,441

0 5,453 0 5,453

0 5,820 0 5,820

0 4,276 0 4,276

0 3,397 NA 3,397

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-948 4,493 0 4,493

-585 4,868 0 4,868

-604 5,216 0 5,216

-388 3,887 0 3,887

-493 2,904 181 2,723

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 2,397 0 2,397 1,428 0 -164 0 -146 -311 3,514 1,931 0 0 -952 0 5,445

0 1,932 0 1,932 1,408 0 -9 0 -1 -10 3,330 2,158 0 0 -620 0 5,488

0 3,248 0 3,248 1,003 0 354 0 58 412 4,663 2,066 0 0 -1,514 0 6,729

0 892 0 892 510 0 -68 0 192 123 1,526 1,679 0 0 683 0 3,205

NA NA NA NA NA NA NA NA NA NA 1,263 1,684 0 0 -225 0 2,948

79 0 10 0 -864 -294 -570

25 0 4 0 -590 -196 -394

0 0 2 0 -1,511 -182 -1,329

1 0 1 0 685 -102 787

-1 0 1 0 -225 -331 106

-864 4,582 3,483

-590 4,898 3,314

-1,511 5,218 3,414

685 3,890 2,250

-225 2,723 NA

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

254 0

0 0

0 0

0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 0.0%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 0.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

California - 47.7% North Carolina - 5.5%

Arizona - 18.6%

Top Lines of Business by DPW - 2011Y Med Prof Liab - 75.0%

Oth, Prod Liab Cmbnd - 25.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

All Other - 0.0%

Indiana - 9.6%

Texas - 5.4%

2009Y Mortgage Loans - 0.0%

2008Y Other Invstmts - 100.0%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000) LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. California 2. Arizona 3. Indiana 4. North Carolina 5. Texas All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 2,041 797 412 233 230 562 2008Y 0.00 NA 5,543 66.61

Rank and LOBs 1. Med Prof Liab 2. Oth, Prod Liab Cmbnd 3. Total Cmbnd A&H 4. Aircraft 5. Comm'l Auto St All Other 2009Y 0.00 149.26 5,441 41.02

2010Y 0.00 26.52 5,453 35.26

DPW ($000) 3,207 1,069 0 0 0 0 2011Y 0.00 7.91 5,820 61.89

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -3.19 4,276 19.27

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 0 0 0 0

Fair Value 0 0 0 0

Actual Cost 0 0 0 0

Par Value 0 --0

Total 0 0 0 --

2008Y 1.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.76 1.01 0.00 62.31 35.92 1.40

2009Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.00 3.50 0.00 78.86 17.64 0.41

2010Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.26 0.00 0.00 44.32 55.42 0.00

2011Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 45.11 54.89 0.02

2012L2 NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.54 0.00 0.00 71.18 28.28 -0.02

6 - The Securities and Bond section are held at carrying value


Doctors & Surgeons Natl RRG (Lawrenceville, GA) Address and Geographic 3370 Sugarloaf Parkway Suite G-2/302 Lawrenceville, GA 30044-5486 MSA: Atlanta-Sandy Springs-Marietta, GA (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 13018 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: National NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 68-0656137 Distribution Channel: Broker

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Sara Mary Carpenter Phone : (706) 232-9591x12 Fax : (706) 232-0195 Email : scarpenter@alliantplans.com

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook Not Covered by SNL ----

Liquidity

OFFICERS & ADVISORS Auditor Munninghoff Lange & Company Actuary Merlinos & Associates Inc. CEO -CFO -President William Peter Graper

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 2.63 3.49 6.64 3.79 26.47 8.34 2.99 34.80 21.97 12.83 0.00

Profitability Ratios 18.00

Direction -----

2009Y 1.98 6.23 0.51 0.21 63.87 49.30 45.36 113.17 107.99 5.19 0.00

2010Y 1.63 2.10 11.35 3.93 52.70 35.45 36.15 88.16 85.81 2.35 0.00

2011Y 2.46 3.00 3.49 1.22 51.33 36.22 20.45 87.55 83.55 4.00 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

14.00

88.2

2012L2 2.71 3.42 15.59 4.74 45.84 32.47 20.22 78.31 74.00 4.31 0.00

8.00 34.8

4.00 2.00 0.00 2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 23.48 3.34 0.00 0.97 4.03 1,430 84 97 136 81.36 62.46 53.01

2009Y 18.52 18.33 0.00 1.25 29.71 1,294 612 393 -47 61.70 34.00 0.87

2010Y 16.55 12.81 0.00 0.82 21.82 3,928 1,203 904 176 64.90 33.87 10.74

2011Y 30.88 14.67 0.00 0.61 20.95 5,146 1,544 1,452 12 77.88 53.42 5.13

2012L2 25.62 NA NA NA NA NA 1,634 1,457 474 NA 45.47 17.25

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 199 81.36 100.00 0.00 0 0

2009Y 199 61.70 0.00 0.00 0 0

2010Y 776 64.90 48.58 0.00 0 0

2011Y 472 77.88 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

6,000 81.4

1,430 1,164 316 38 20.05 18.37 0.95

1,294 798 958 764 46.46 0.75 0.63

3,928 2,549 2,283 1,753 53.41 17.10 1.25

5,146 4,008 3,007 2,941 72.14 7.48 1.81

5,802 4,487 3,565 2,924 77.98 28.62 1.71

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

97.0

95.0 75.0

6,000 62.0

5,000 4,000

52.0

3,000 2,000 1,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 191.83 191.83 158.83 52.00 0.00 241.26 936 996 532.90 534.00 3.66

2009Y 135.53 253.53 174.46 62.00 0.00 193.53 614 651 514.74 514.74 4.74

2011Y 2010Y 30.91 131.47 42.50 75.00 0.00 164.43 837 769 174.99 189.20 6.35

2012L2 2011Y 8.55 104.97 20.80 95.00 0.00 124.92 1,997 2,083 225.74 231.20 5.14

2012L2 13.83 101.27 34.18 97.00 0.00 124.42 2,152 2,331 216.38 218.36 8.88

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --101 193 NPW to Policyholders' Surplus 300 --63 125 Change in Net Premiums Written 33 -33 -31 219* Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --71 91 Investment Yield 6.5 3 2.2* 1.7* Gross Change in Policyholders' Surplus 50 -10 5 59* Net Change in Adj Policyholders' Surplus 25 -10 5 13 Liabilities to Liquid Assets 100 --62 75 Agents' Bal to Policyholders' Surplus 40 --3 31 1-Yr Resv Dev to Policyholders' Surplus 20 --0 28* 2-Yr Resv Dev to Policyholders' Surplus 20 --NA 16 Est Curr Resv Defi/Policyholders' Surplus 25 ---50 21 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 118.68 NM NM NM 842.48 NM NM NA NA NA

2009Y 30.95 62.71 -31.40 -95.65 -91.84 1,920.03 -9.55 NA NA NA

2010Y 65.45 70.19 219.39 NM NM 129.36 203.64 NM 26.35 67.96

2011Y 233 181 57* NA 84 2.6* 9 4 95 54* 0 20* -8

2011Y 57.08 92.32 57.21 -36.13 -55.07 67.74 31.02 368.52 21.67 65.17

2012L2 54.44 76.10 88.08 52.44 17.74 49.69 50.28 47.46 22.62 37.72

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

64.9

61.7

4,000

2012L2 9,126 2,629 6,497 351 3,736

Capital + Capital Ratios

77.9

5,000

2011Y 7,583 2,209 5,375 76 3,157

7,000

78.3

2008Y

2010Y 4,828 2,033 2,795 168 2,360

8,000

10.00 6.00

2009Y 2,918 1,276 1,642 6 1,014

9,000

87.6

12.00

2008Y 2,228 1,219 1,009 74 385

10,000

113.2

16.00

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

2,500

3,000

32,956.7

2,000 2,000 1,500

1,000 0 2008Y

2009Y

2010Y

2011Y

1,000

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y NM 0.00 0.00 20.05 0.00 25.01 3.10

2009Y 1,920.03 0.41 0.00 46.46 0.52 40.47 59.92

2010Y 129.36 27.98 16.32 53.41 15.64 28.27 86.24

2011Y 67.74 0.10 20.15 72.14 0.07 23.35 133.16

2012L2 49.69 NA NA 77.98 NA NA 111.22

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

500 1,248.7

0 2007Y

365.9 2009Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2008Y 1,219 1,219 49 2,497.33 1,248.66 -8 0 0 0.00 104.86 82.80 16.33

2009Y 1,276 1,276 174 731.77 365.88 0 0 0 0.00 67.11 128.72 15.60

240.3 2010Y

2010Y 2,033 2,033 423 480.65 240.33 1 0 0 0.00 171.98 137.48 38.17

167.9 2011Y

2011Y 2,209 2,209 658 335.87 167.94 0 0 0 0.00 185.26 243.37 21.37

2012L2 2,629 NA NA NA NA -1 0 0 0.00 199.22 247.16 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Doctors & Surgeons Natl RRG (Lawrenceville, GA) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 1,936 0 1,936 0 75 217 0 2,228

351 0 33 0 0 0 0 0 0 0 2,226 0 2,610 36 30 242 0 2,918

2,787 0 24 0 0 0 0 0 0 0 864 0 3,674 632 29 493 0 4,828

5,145 0 38 0 0 0 0 0 0 0 459 0 5,642 1,192 0 749 0 7,583

5,711 0 69 0 0 0 0 0 0 0 898 0 6,679 1,202 0 890 0 9,126

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

9 28 38 847 0 2 2 120 1,009

589 175 764 687 0 87 20 84 1,642

1,182 572 1,753 953 0 88 0 0 2,795

1,737 1,204 2,941 1,953 109 308 63 0 5,375

1,529 1,394 2,924 2,444 419 375 291 45 6,497

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

500 0 0 81 638 1,219

500 0 0 138 638 1,276

500 0 0 307 1,226 2,033

500 0 0 390 1,319 2,209

500 0 0 810 1,319 2,629

Total Liabilities and C&S

2,228

2,918

4,828

7,583

9,126

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 41 -8 8 0 1,936 0 0 0 0 0 0

2009Y 50 0 0 2,610 0 1,904 0 33 0 0

2010Y 54 1 0 3,674 0 2,787 0 24 0 0

2011Y 120 0 0 5,642 0 5,145 0 38 0 0

2012L2 154 -1 1 0 6,679 0 5,711 0 69 0 0

NA 0.00 NA NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 1.73 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 1,430 0 1,430

0 1,294 0 1,294

0 3,928 0 3,928

0 5,146 0 5,146

0 5,802 NA 5,802

-267 1,164 847 316

-495 798 -160 958

-1,379 2,549 266 2,283

-1,139 4,008 1,000 3,007

-1,315 4,487 922 3,565

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 0 0 0 46 0 9 0 28 38 84 97 0 0 136 0 181

0 -145 0 -145 31 0 580 0 147 727 612 393 0 0 -47 0 1,006

0 233 0 233 105 0 592 0 272 865 1,203 904 0 0 176 0 2,107

0 60 0 60 172 0 555 0 757 1,312 1,544 1,452 0 0 12 0 2,995

NA NA NA NA NA NA NA NA NA NA 1,634 1,457 0 0 474 0 3,091

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income

41 -8 0 28 196 123 74

50 0 0 6 9 3 6

54 1 0 24 254 86 168

120 0 0 30 162 87 76

154 -1 0 17 644 293 351

Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses

204 377 141

9 1,015 340

253 2,361 1,056

162 3,158 1,517

645 3,735 NA

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

1,904 0

2,787 0

5,043 102

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 91.2%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 0.7%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

New York - 41.5% Indiana - 4.7%

Michigan - 30.2%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Florida - 7.1%

Pennsylvania - 3.1%

2008Y Other Invstmts - 8.1%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. New York 2. Michigan 3. Florida 4. Indiana 5. Pennsylvania All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 2,135 1,553 366 242 160 690 2008Y 0.00 NA 0 NA

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 1,430 3.30

DPW ($000) 5,146 0 0 0 0 0 2010Y 0.00 NA 1,294 29.77

2011Y 0.00 NA 3,928 25.30

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 NA 5,146 14.79

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.50

1.00

1.50

2.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 5,145 38 0 5,183

Fair Value 5,095 38 0 5,133

Actual Cost 5,192 38 0 5,230

Par Value 5,071 --5,071

Total 20,503 113 0 --

2008Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.00 3.37 0.00 9.74 86.89 1.82

2009Y 1.00 0.00 0.00 13.45 2.62 1.28 0.00 85.27 0.00 NA 0.00 0.00 0.00 1.25 1.01 0.00 8.29 89.45 1.70

2010Y 1.00 0.00 0.00 75.84 1.17 0.65 0.00 23.51 0.00 NA 0.00 0.00 0.00 13.08 0.60 0.00 10.21 76.11 1.11

2011Y 1.02 0.00 0.00 91.19 1.71 0.67 0.00 8.14 0.00 NA 0.00 0.00 0.00 15.72 0.00 0.00 9.88 74.40 1.59

2012L2 1.06 3.77 0.00 85.51 2.64 1.04 0.00 13.45 0.00 NA 0.00 0.00 0.00 13.17 0.00 3.90 9.75 73.18 1.68

6 - The Securities and Bond section are held at carrying value


Emergency Cap Mgmt LLC A RRG (Washington, DC) Address and Geographic 1333 H Street Suite 820 Washington, DC 20005 MSA: Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Business Profile NAIC Company Code : 14163 Business Focus : P&C Minimum NPW Geographic Focus: Geography Minimum NPW NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 45-4057491 Distribution Channel: --

Date -----

STATUTORY CONTACT INFORMATION Name : Melissa Anne Hancock Phone : (802) 881-7142 Fax : (802) 863-2198 Email : melissa.hancock@strategicrisks.com

Direction -----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

2008Y NA NA NA NA NA

2009Y NA NA NA NA NA

2010Y NA NA NA NA NA

2011Y NA NA NA NA NA

2012L2 3,985 1,721 2,264 NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA 765 NA NA NA

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook Not Covered by SNL ----

Liquidity

OFFICERS & ADVISORS Auditor -Actuary -CEO -CFO -President Rodney W. Smith

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

4,500 4,000 58.0

3,500 3,000

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y NA NA NA NA NA NA NA NA NA NA NA

Profitability Ratios

2009Y NA NA NA NA NA NA NA NA NA NA NA

2010Y NA NA NA NA NA NA NA NA NA NA NA

2011Y NA NA NA NA NA NA NA NA NA NA NA

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 NA NA NA NA NA NA NA NA NA NA NA

1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y NA NA NA NA NA NA NA NA NA NA NA NA

2009Y NA NA NA NA NA NA NA NA NA NA NA NA

2010Y NA NA NA NA NA NA NA NA NA NA NA NA

2011Y NA NA NA NA NA NA NA NA NA NA NA NA

2012L2 NA NA NA NA NA NA NA NA NA NA NA NA

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y NA NA NA NA NA NA

2009Y NA NA NA NA NA NA

2010Y NA NA NA NA NA NA

2011Y NA NA NA NA NA NA

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

1

2,500 2,000 1,500 1,000 500 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y NA NA NA NA NA NA NA NA NA NA NA

2009Y NA NA NA NA NA NA NA NA NA NA NA

2011Y 2010Y NA NA NA NA NA NA NA NA NA NA NA

2012L2 2011Y NA NA NA NA NA NA NA NA NA NA NA

2012L2 37.02 176.65 48.69 58.00 0.00 211.22 NA NA NA NA -1.35

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --NA NA NPW to Policyholders' Surplus 300 --NA NA Change in Net Premiums Written 33 -33 NA NA Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --NA NA Investment Yield 6.5 3 NA NA Gross Change in Policyholders' Surplus 50 -10 NA NA Net Change in Adj Policyholders' Surplus 25 -10 NA NA Liabilities to Liquid Assets 100 --NA NA Agents' Bal to Policyholders' Surplus 40 --NA NA 1-Yr Resv Dev to Policyholders' Surplus 20 --NA NA 2-Yr Resv Dev to Policyholders' Surplus 20 --NA NA Est Curr Resv Defi/Policyholders' Surplus 25 --NA NA *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y NA NA NA NA NA NA NA NA NA NA

2009Y NA NA NA NA NA NA NA NA NA NA

2010Y NA NA NA NA NA NA NA NA NA NA

2011Y NA NA NA NA NA NA NA NA NA NA NA NA NA

2011Y NA NA NA NA NA NA NA NA NA NA

2012L2 NA NA NA NA NA NA NA NA NA NA

Capital + Capital Ratios

1 1

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

1 1 1

1 1

0

1 1

0

1 1

0 0 0

0.0 2008Y

0.0 2009Y

0.0 2010Y

0.0 2011Y

0 0

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y NA NA NA NA NA NA NA

2009Y NA NA NA NA NA NA NA

2010Y NA NA NA NA NA NA NA

2011Y NA NA NA NA NA NA NA

2012L2 NA NA NA NA NA NA 44.46

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

0 0 0 2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y NA NA NA NA NA NA NA NA NA NA NA NA

2009Y NA NA NA NA NA NA NA NA NA NA NA NA

2010Y 2010Y NA NA NA NA NA NA NA NA NA NA NA NA

2011Y 2011Y NA NA NA NA NA NA NA NA NA NA NA NA

2012L2 1,721 NA NA NA NA NA NA NA NA NA 131.53 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Emergency Cap Mgmt LLC A RRG (Washington, DC) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

1,980 0 1,056 0 0 0 0 0 0 0 838 0 3,874 0 0 111 0 3,985

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA

765 0 765 1,069 249 141 0 39 2,264

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

NA NA NA NA NA NA

NA NA NA NA NA NA

NA NA NA NA NA NA

NA NA NA NA NA NA

0 0 0 -54 1,775 1,721

Total Liabilities and C&S

NA

NA

NA

NA

3,985

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

0 0 0 0 0 0 0

2008Y NA NA NA NA NA NA NA NA NA NA

2009Y NA NA NA NA NA NA NA NA NA NA

2010Y NA NA NA NA NA NA NA NA NA NA

2011Y NA NA NA NA NA NA NA NA NA NA

2012L2 NA NA NA 3,874 0 2,105 0 1,056 0 0

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA 0.00 NA NA NA NA

INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted) Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

2007Y

2008Y

2009Y

2010Y

2011Y

NA NA

NA NA

NA NA

NA NA

NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

2011Y 2010Y 2009Y 2008Y 0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States

DPW ($000)

All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

Rank and LOBs

DPW ($000)

All Other 2008Y NA NA NA NA

2009Y NA NA NA NA

2010Y NA NA NA NA

2011Y NA NA NA NA

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 NA NA NA NA

Bond Rated 3-6/Total Bond (%) 2012L2

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

NA NA

NA NA

NA NA

NA NA

NA NA

NA NA

NA NA

NA NA

NA NA

NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

Carr Value NA NA NA NA

Fair Value NA NA NA NA

Actual Cost NA NA NA NA

Par Value NA --NA

Total -----

2008Y NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

2009Y NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

2010Y NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

2011Y NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

2012L2 1.00 0.00 0.00 51.11 61.36 27.26 0.00 21.63 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 2.78 97.22 NA

6 - The Securities and Bond section are held at carrying value


Emergency Medicine Prof Assr (Las Vegas, NV) Address and Geographic 5430 West Sahara Avenue Las Vegas, NV 89146-3307

Business Profile NAIC Company Code : 12003 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Midwestern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-1141933 Distribution Channel: Direct Response

MSA: Las Vegas-Paradise, NV (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Bjorn K. Hubbard Phone : (941) 373-1129 Fax : (941) 366-1076 Email : bhubbard@riskservcos.com

Direction -----

Watch/Outlook Not Covered by SNL ----

2008Y 2.01 4.31 -4.25 -1.68 46.40 58.34 35.04 104.73 100.47 4.26 0.00

Profitability Ratios

2009Y 2.45 4.63 -11.01 -3.14 56.74 48.85 44.83 105.60 100.62 4.98 0.00

2010Y 2.63 4.47 9.44 2.85 50.83 52.77 29.78 103.60 99.37 4.22 0.00

2011Y 2.14 3.54 11.42 3.80 45.01 43.57 16.66 88.58 84.76 3.82 0.00 Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

103.6 101.4

0.00 -5.00

88.6

-10.00 -15.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 11.35 15.47 0.00 7.63 35.24 7,039 1,760 2,188 -155 53.28 NM 0.17

2009Y 11.91 12.62 0.00 4.28 31.95 7,303 2,250 2,085 -369 58.43 NM -4.13

2010Y 21.04 11.48 0.00 3.66 37.63 7,715 2,947 2,891 -40 71.00 -27.06 3.39

2011Y 28.35 9.82 0.00 5.55 28.20 8,724 2,665 2,787 469 73.32 32.10 11.31

2012L2 28.47 NA NA NA NA NA 8,834 3,270 242 NA 37.86 5.16

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 4,139 53.28 48.01 0.00 0 0

2009Y 5,426 58.43 72.82 0.00 0 0

2010Y 5,779 71.00 69.44 0.00 0 0

2011Y 5,980 73.32 78.08 3.44 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

12,000

2012L2 22,423 6,648 15,775 483 12,763

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

7,039 3,750 3,793 5,147 132.27 0.14 1.01

7,303 4,268 3,966 6,343 147.87 -4.84 1.17

7,715 5,478 5,797 6,531 109.18 4.84 1.14

8,424 6,396 5,921 7,770 121.30 12.51 1.01

4,731 10,955 12,346 8,287 63.04 10.64 1.65

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

132.0

15,000

104.0

104.0

96.0

10,000 5,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 19.47 95.45 41.71 104.00 0.00 177.56 391 651 109.26 110.43 -12.00

2009Y 28.63 103.03 69.66 96.00 0.00 179.54 1,296 1,535 152.44 146.49 -9.02

2011Y 2010Y 7.00 95.60 12.93 104.00 0.00 179.02 -19 256 99.64 99.64 -4.42

2012L2 2011Y 24.09 70.02 63.15 142.00 0.00 181.35 1,961 2,226 141.26 141.26 2.24

2012L2 18.66 72.47 44.28 132.00 0.00 130.37 6,445 6,929 227.11 227.11 3.95

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --200 160 NPW to Policyholders' Surplus 300 --117 114 Change in Net Premiums Written 33 -33 14 28 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --100* 99 Investment Yield 6.5 3 2.4* 2.8* Gross Change in Policyholders' Surplus 50 -10 -2 32 Net Change in Adj Policyholders' Surplus 25 -10 7 14 Liabilities to Liquid Assets 100 --96 104* Agents' Bal to Policyholders' Surplus 40 --14 12 1-Yr Resv Dev to Policyholders' Surplus 20 ---9 25* 2-Yr Resv Dev to Policyholders' Surplus 20 ---14 -31 Est Curr Resv Defi/Policyholders' Surplus 25 ---64 38* *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y -2.43 13.49 -22.73 -91.96 NM 12.17 -1.12 43.28 24.86 35.95

2009Y 7.08 11.31 13.79 NM NM 23.24 3.76 36.22 18.96 29.61

2010Y 9.61 0.33 28.35 NM NM 2.96 5.64 12.57 16.82 13.96

2011Y 138 101 17 NA 92 2.3* 31 23 142* 6 -10 12 6

2011Y 66.82 86.15 16.77 239.05 58.69 18.98 9.18 22.89 5.98 16.56

2012L2 49.19 65.43 95.11 8.51 -44.25 17.39 -45.20 19.98 6.18 14.75

Capital + Capital Ratios

73.3

71.0

10,000

2011Y 22,902 6,324 16,578 635 6,147

142.0

105.6

104.7

5.00

2010Y 13,729 4,823 8,906 400 6,042

20,000

15.00 10.00

2009Y 12,525 3,649 8,877 -392 4,163

25,000

2012L2 1.63 1.97 7.81 2.33 71.55 29.85 43.09 101.40 99.65 1.75 0.00

Return on Average Equity (C&S)

2008Y 11,697 3,722 7,975 -201 3,954

Liquidity

OFFICERS & ADVISORS Auditor Shores Tagman Butler & Co P.A. Actuary Milliman Inc. CEO -CFO -President --

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

58.4

8,000

53.3

7,000

6,000

6,000

4,000

5,000

2,000

4,000

0 2008Y

2009Y

2010Y

2011Y

176.2

168.5

165.7

2007Y

2008Y

2009Y

2010Y

3,000

0.0 2012L2

2,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

1,000

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 12.17 -7.13 -11.63 132.27 -9.33 19.11 138.29

2009Y 23.24 -8.68 -13.87 147.87 -8.14 8.98 173.84

2010Y 2.96 25.46 -31.35 109.18 16.02 13.40 135.42

2011Y 18.98 -9.56 12.11 121.30 -7.79 21.62 122.88

2012L2 17.39 NA NA 63.04 NA NA 124.66

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

211.6 171.9

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2008Y 3,722 3,722 1,056 352.47 176.23 -287 -581 -577 NM 79.35 214.26 111.20

2009Y 3,649 3,649 1,083 336.96 168.48 -316 642 24 NM 119.98 243.28 148.71

2010Y 4,823 4,823 1,455 331.47 165.74 110 123 0 0.00 129.21 184.67 119.83

2011Y 2011Y 6,324 6,324 1,494 423.13 211.57 240 -67 0 0.00 115.09 262.16 94.57

2012L2 6,648 NA NA NA NA 119 4 0 0.00 177.15 237.30 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Emergency Medicine Prof Assr (Las Vegas, NV) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

3,802 0 2,257 0 0 0 0 0 0 0 1,553 0 7,612 299 751 3,035 0 11,697

4,617 0 1,987 0 0 0 0 0 0 0 2,542 0 9,145 493 82 2,805 0 12,525

4,631 0 3,260 0 0 0 0 0 0 0 623 0 8,514 558 260 4,397 0 13,729

6,106 0 1,510 0 0 0 0 0 0 0 3,993 0 11,609 357 754 10,182 0 22,902

5,780 406 2,710 0 0 0 0 0 0 0 2,944 0 11,839 193 531 9,860 0 22,423

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

3,239 1,908 5,147 1,471 681 631 0 45 7,975

4,655 1,688 6,343 1,773 374 350 0 37 8,877

4,564 1,967 6,531 1,453 84 838 0 0 8,906

4,991 2,779 7,770 1,929 27 943 0 5,910 16,578

4,987 3,301 8,287 794 115 778 0 5,801 15,775

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

0 0 0 -1,403 5,125 3,722

0 0 0 -1,130 4,778 3,649

0 0 0 -607 5,429 4,823

0 0 0 514 5,810 6,324

0 0 0 885 5,763 6,648

Total Liabilities and C&S

11,697

12,525

13,729

22,902

22,423

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 162 -287 287 -581 7,612 0 3,802 0 2,257 0 0

2009Y 197 -316 316 642 9,145 0 4,617 0 1,987 0 0

2010Y 245 110 123 8,514 0 4,631 0 3,260 0 0

2011Y 226 240 -67 11,609 0 6,106 0 1,510 0 0

2012L2 216 119 4 11,839 0 5,780 406 2,710 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 7,039 0 7,039

0 7,303 0 7,303

0 7,715 0 7,715

0 8,424 0 8,424

0 4,731 NA 4,731

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-3,288 3,750 -42 3,793

-3,036 4,268 302 3,966

-2,238 5,478 -320 5,797

-2,028 6,396 475 5,921

6,225 10,955 -1,391 12,346

0 800 0 800 401 0 529 0 29 558 1,760 2,188 0 0 -155 0 3,948

0 362 0 362 692 0 1,416 0 -220 1,196 2,250 2,085 0 0 -369 0 4,335

0 1,817 0 1,817 942 0 -90 0 278 188 2,947 2,891 0 0 -40 0 5,837

0 560 0 560 866 0 427 0 812 1,239 2,665 2,787 0 0 469 0 5,452

NA NA NA NA NA NA NA NA NA NA 8,834 3,270 0 0 242 0 12,104

162 -287 0 0 -280 -79 -201

197 -316 0 0 -488 -97 -392

245 110 0 0 315 -85 400

226 240 0 0 935 300 635

216 119 200 0 778 294 483

7 3,667 2,743

-172 3,847 3,162

205 6,152 3,147

695 6,387 3,743

658 12,882 NA

2007Y

2008Y

2009Y

2010Y

2011Y

4,332 0

3,802 0

4,617 0

4,631 0

6,106 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 52.6%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 13.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Illinois - 21.8% Florida - 7.8%

Ohio - 17.7%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Indiana - 16.3%

Kentucky - 7.1%

2008Y Other Invstmts - 34.4%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Illinois 2. Ohio 3. Indiana 4. Florida 5. Kentucky All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 1,834 1,491 1,372 657 597 2,473 2008Y 0.00 NA 7,118 26.06

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 7,039 50.86

DPW ($000) 8,424 0 0 0 0 0 2010Y 0.00 28.52 7,303 50.96

2011Y 0.00 12.35 7,715 36.14

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 4.79 8,424 12.12

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

2,953 0 0 759

3,414 0 0 0

3,386 0 0 0

2,264 0 0 0

3,574 0 0 0

Carr Value 6,106 1,510 0 7,615

Fair Value 6,106 1,510 0 7,615

Actual Cost 5,916 1,440 0 7,356

Par Value 5,485 --5,485

Total 23,613 4,459 0 --

2008Y 1.00 0.00 0.00 49.94 60.65 29.66 0.00 20.40 0.00 NA 0.00 0.00 0.00 2.56 6.42 0.00 25.95 65.08 1.38

2009Y 1.00 0.00 0.00 50.48 54.45 21.72 0.00 27.79 0.00 NA 0.00 0.00 0.00 3.94 0.66 0.00 22.39 73.02 1.58

2010Y 1.00 0.00 0.00 54.39 67.59 38.29 0.00 7.32 0.00 NA 0.00 0.00 0.00 4.07 1.89 0.00 32.03 62.02 1.78

2011Y 1.00 0.00 0.00 52.60 23.87 13.00 0.00 34.40 0.00 NA 0.00 0.00 0.00 1.56 3.29 0.00 44.46 50.69 0.99

2012L2 1.00 0.00 0.00 48.82 40.76 22.89 6.11 24.86 0.00 NA 0.00 0.00 0.00 0.86 2.37 0.00 43.97 52.80 0.96

6 - The Securities and Bond section are held at carrying value


Global Hawk Insurance Co a RRG (Burlington, VT) Address and Geographic 148 College Street Suite 204 Burlington, VT 05401-8476 MSA: Burlington-South Burlington, VT (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 11948 Business Focus : Commercial Property Focus Geographic Focus: Regional - Western Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-0073152 Distribution Channel: Direct Response

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Stephen M. Brown Phone : (802) 861-2930x102 Fax : (802) 861-2929 Email : steve.brown@townermanagement.com

Direction -----

Watch/Outlook Not Covered by SNL ----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

2008Y 4,235 1,949 2,286 -288 2,299

2009Y 5,914 3,117 2,797 -28 671

2010Y 7,474 4,171 3,303 1,387 2,734

2011Y 9,768 4,348 5,419 221 4,047

2012L2 11,322 4,864 6,458 926 4,942

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

-1,150 750 2,168 2,183 148.73 -15.44 0.39

2,081 1,873 647 1,426 240.71 -0.99 0.60

3,637 3,610 2,714 1,327 55.46 40.45 0.87

5,403 4,995 4,006 2,076 48.39 5.74 1.15

6,552 6,329 4,903 2,548 44.81 21.88 1.30

Liquidity

OFFICERS & ADVISORS Auditor Saslow Lufkin & Buggy LLP Actuary CapRisk Consulting Group CEO -CFO -President Jasbir S. Thandi

Total Assets

2008Y 2.65 17.45 -15.44 -3.99 49.99 200.32 39.74 250.31 244.28 6.04 0.00

Profitability Ratios

2009Y 0.64 1.28 -0.99 -0.57 48.06 20.74 -37.90 68.79 65.08 3.71 0.00

2010Y 0.41 0.55 40.45 20.82 13.14 27.42 1.06 40.57 39.83 0.74 0.00

2011Y 0.61 0.82 5.74 2.66 62.88 26.16 47.92 89.04 88.01 1.03 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 0.52 0.63 21.78 9.55 50.84 24.01 37.02 74.85 74.04 0.81 0.00

50.00 40.00

Liabilities / Liquid Assets (IRIS Ratio)

73.0

72.0

10,000

64.0

8,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

Total Liabilities

12,000

250.3

30.00 20.00

53.0

52.0

6,000 4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 157.30 157.30 184.57 64.00 0.00 164.72 -3,031 -2,803 25.69 23.63 -41.81

2009Y 36.03 133.04 32.33 52.00 0.00 146.65 -677 -643 52.04 51.33 -29.82

2011Y 2010Y 190.17 190.17 150.63 53.00 0.00 190.43 2,870 2,882 297.26 297.26 -10.44

2012L2 2011Y 138.55 138.55 172.67 72.00 0.00 142.24 1,809 1,834 158.08 158.62 -7.45

2012L2 136.28 136.28 180.94 73.00 0.00 139.11 1,863 1,904 146.73 146.76 -1.87

10.00 89.0

0.00

74.9

68.8

-10.00

40.6

-20.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 10.25 104.64 0.00 2.44 93.25 -1,150 1,084 1,503 -419 NM 0.00 -12.52

2009Y 85.95 6.14 0.00 1.10 13.50 2,081 311 388 -52 90.00 0.00 -4.19

2010Y 12.08 11.22 0.00 2.19 14.01 3,637 357 990 1,367 99.27 0.00 50.73

2011Y 14.96 14.14 0.00 2.41 9.61 5,403 2,519 1,307 180 92.44 0.00 5.47

2012L2 13.82 NA NA NA NA NA 2,493 1,520 890 NA 0.46 18.82

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 0 NM NA 0.00 0 0

2009Y 167 90.00 0.00 0.00 0 0

2010Y 287 99.27 0.00 0.00 0 0

2011Y -129 92.44 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

7,000

GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y -57.28 -70.22 -79.43 NM NM -47.70 NM 362.43 10.65 34.22

2009Y 39.65 22.33 149.60 NM NM -34.71 NM 254.44 19.11 35.29

2010Y 26.37 18.10 92.75 NM NM -6.89 74.75 4.36 30.60 14.69

2011Y 124 115 38* NA 69 0.6* 4 1 72 25 6 1 83*

2011Y 30.69 64.05 38.34 -84.04 -84.04 56.43 48.56 -2.35 17.61 3.98

2012L2 37.07 45.23 43.27 115.83 114.83 31.46 46.21 -3.36 21.44 3.57

Capital + Capital Ratios

6,000 99.3

5,000

ACL Risk Based Capital

92.4

90.0

4,000

RBC - Total Adjusted Capital

Capital and Surplus

5,000 4,500

3,000 2,000 0

Co. Action Level RBC (TAC/(ACL RBC*2))

723.1

4,000 3,500

1,000

640.0 578.6

3,000 2,500

-1,000 -2,000

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --67 87 NPW to Policyholders' Surplus 300 --60 87 Change in Net Premiums Written 33 -33 150* 93* Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --116* 44 Investment Yield 6.5 3 0.7* 0.4* Gross Change in Policyholders' Surplus 50 -10 60* 34 Net Change in Adj Policyholders' Surplus 25 -10 0 32* Liabilities to Liquid Assets 100 --52 53 Agents' Bal to Policyholders' Surplus 40 --23 14 1-Yr Resv Dev to Policyholders' Surplus 20 ---3 -14 2-Yr Resv Dev to Policyholders' Surplus 20 --13 -24 Est Curr Resv Defi/Policyholders' Surplus 25 ---26 44* *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio.

0.0 2008Y

2009Y

2010Y

2011Y

2,000 1,500

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y -47.70 8.27 55.58 148.73 8.53 79.37 112.05

2009Y -34.71 -3.02 13.32 240.71 -9.09 67.41 45.74

2010Y -6.89 -13.83 -23.87 55.46 -15.89 27.30 31.83

2011Y 56.43 6.43 1.05 48.39 6.70 26.70 47.75

2012L2 31.46 NA NA 44.81 NA NA 52.39

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

1,000 500

113.1

134.3

2007Y

2008Y

0

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 1,949 1,949 725 268.68 134.34 0 0 0 0.00 40.25 117.34 0.00

2009Y 3,117 3,117 244 1,279.96 639.98 0 0 0 0.00 66.20 89.73 5.36

2010Y 2010Y 4,171 4,171 288 1,446.27 723.14 0 0 0 0.00 105.30 79.21 6.88

2011Y 2011Y 4,348 4,348 376 1,157.14 578.57 0 0 0 0.00 129.52 124.63 -2.97

2012L2 4,864 NA NA NA NA 0 0 0 0.00 148.90 132.78 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Global Hawk Insurance Co a RRG (Burlington, VT) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 3,597 0 3,597 629 0 10 0 4,235

0 0 2,713 0 0 0 0 0 0 0 1,008 0 3,721 1,571 0 622 0 5,914

0 0 0 0 0 0 0 0 0 0 6,282 0 6,282 601 0 591 0 7,474

0 0 0 0 0 0 0 0 0 0 7,508 0 7,508 1,087 0 1,150 0 9,768

0 0 0 0 0 0 0 0 0 0 8,801 0 8,801 1,198 598 724 0 11,322

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

2,157 27 2,183 0 0 103 0 0 2,286

1,197 229 1,426 1,226 -30 149 0 27 2,797

998 329 1,327 2,122 -286 139 1 0 3,303

1,597 480 2,076 3,111 129 100 2 0 5,419

1,965 583 2,548 3,778 48 81 3 0 6,458

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

1,064 0 600 -1,771 2,055 1,949

1,142 0 302 -1,764 3,438 3,117

1,212 0 202 -781 3,538 4,171

1,337 0 202 -728 3,538 4,348

1,337 0 202 -212 3,538 4,864

4,235

5,914

7,474

9,768

11,322

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 131 0 0 3,597 0 0 0 0 0 0

2009Y 24 0 0 3,721 0 0 0 2,713 0 0

2010Y 20 0 0 6,282 0 0 0 0 0 0

2011Y 41 0 0 7,508 0 0 0 0 0 0

2012L2 40 0 0 8,801 0 0 0 0 0 0

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA NA NA NA NA NA NA

Total Liabilities and C&S Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 -1,150 0 -1,150

0 2,081 0 2,081

0 3,637 0 3,637

0 5,403 0 5,403

0 6,552 NA 6,552

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

1,900 750 -1,418 2,168

-208 1,873 1,226 647

-26 3,610 897 2,714

-408 4,995 989 4,006

-223 6,329 1,427 4,903

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 2,266 0 2,266 836 0 -1,404 0 -614 -2,018 1,084 1,503 0 0 -419 0 2,587

0 715 0 715 268 0 -960 0 288 -672 311 388 0 0 -52 0 700

0 227 0 227 314 0 -198 0 14 -184 357 990 0 0 1,367 0 1,347

0 1,321 0 1,321 449 0 599 0 151 749 2,519 1,307 0 0 180 0 3,825

NA NA NA NA NA NA NA NA NA NA 2,493 1,520 0 0 890 0 4,012

131 0 0 0 -288 0 -288

24 0 0 0 -28 0 -28

20 0 0 0 1,387 0 1,387

41 0 0 0 221 0 221

40 0 0 0 930 4 926

-288 2,299 2,347

-28 671 615

1,387 2,734 1,314

221 4,047 1,794

930 4,942 NA

2007Y

2008Y

2009Y

2010Y

2011Y

750 0

0 0

0 0

0 0

0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 0.0%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 0.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

California - 82.6% Alabama - 0.0%

Texas - 17.4%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Multi Prl - 0.0%

Fidelity & Surety - 0.0%

All Other - 0.0%

Alaska - 0.0%

Arkansas - 0.0%

2008Y Other Invstmts - 100.0%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Comm'l Auto St - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. California 2. Texas 3. Alaska 4. Alabama 5. Arkansas All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 4,461 942 0 0 0 0 2008Y 0.00 NA 5,946 58.08

Rank and LOBs 1. Comm'l Auto St 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Multi Prl 5. Fidelity & Surety All Other 2009Y 0.00 NA -1,150 37.55

DPW ($000) 5,403 0 0 0 0 0 2010Y 0.00 NA 2,081 -34.24

2011Y 0.00 1.21 3,637 1.00

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 0.27 5,403 43.49

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 0 0 0 0

Fair Value 0 0 0 0

Actual Cost 0 0 0 0

Par Value 0 --0

Total 0 0 0 --

2008Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 14.84 0.00 0.00 0.24 84.92 3.09

2009Y NA 0.00 0.00 0.00 87.05 72.92 0.00 27.08 0.00 NA 0.00 0.00 0.00 26.57 0.00 0.00 10.51 62.92 0.41

2010Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 8.04 0.00 0.00 7.90 84.05 0.27

2011Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 11.13 0.00 0.23 11.78 76.87 0.42

2012L2 NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 10.59 5.29 0.00 6.40 77.73 0.35

6 - The Securities and Bond section are held at carrying value


HlthCare Industry Liab Recpl (Ann Arbor, MI) Address and Geographic 201 South Main Street Suite 200 Ann Arbor, MI 48104-2153 MSA: Ann Arbor, MI (Metro)

Business Profile NAIC Company Code : 11832 Business Focus : P&C Minimum NPW Geographic Focus: Geography Minimum NPW NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 43-2032415 Distribution Channel: General Agnt/Managing General Agnt, Independent Agency

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Peter M. Feeney Phone : (734) 996-2700 Fax : (734) 996-1261 Email : peter.feeney@chelsearhone.com

Direction -----

Watch/Outlook Not Covered by SNL ----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Liquidity

OFFICERS & ADVISORS Auditor BDO USA LLP Actuary Demotech Inc. CEO -CFO -President Peter M. Feeney

2008Y 123,451 5,518 117,933 1,131 3,488

2009Y 136,164 6,226 129,939 744 2,861

2010Y 154,307 7,484 146,823 1,147 3,436

2011Y 158,899 8,688 150,211 1,162 4,153

2012L2 35,160 9,321 25,840 1,119 4,116

34,828 2,969 3,388 82,722 420.14 34.05 0.54

35,305 2,967 2,836 95,933 3,135.50 21.51 0.48

40,369 3,565 3,170 103,129 3,133.13 23.43 0.48

42,136 3,736 3,708 107,924 2,843.53 22.01 0.43

40,588 34,662 3,676 8,174 1,901.73 19.03 3.72

Total Assets

Total Liabilities

160,000

916.0 832.0

140,000

805.0 721.0

120,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 1.10 3.36 22.60 0.98 75.90 -26.52 51.40 49.38 46.44 2.94 0.00

Profitability Ratios

2009Y 0.20 0.85 12.58 0.58 73.08 -16.28 57.59 56.80 55.91 0.89 0.00

2010Y 1.77 7.48 16.55 0.81 75.00 -15.81 52.50 59.19 50.78 8.41 0.00

2011Y 2.54 11.90 14.30 0.76 79.79 -15.93 57.91 63.86 51.87 11.99 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 2.41 1.27 12.81 1.02 82.28 -1.65 59.67 80.63 68.66 11.97 0.00

25.00 80.6

20.00 63.9

59.2

56.8

15.00

Liabilities / Liquid Assets (IRIS Ratio)

180,000

49.4

100,000 80,000 60,000 40,000 20,000

90.0

0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 9.64 9.64 206.01 916.00 0.00 90.50 4,768 4,258 -526.94 -607.48 3.58

2009Y 7.52 10.93 157.00 832.00 0.00 94.59 3,389 2,843 -629.00 -758.05 3.76

2011Y 2010Y 2.07 11.15 40.66 805.00 0.00 96.15 2,297 2,275 2,056.51 2,439.75 4.14

2012L2 2011Y 2.09 12.47 36.17 721.00 0.00 96.57 2,537 2,373 959.49 1,213.55 4.78

2012L2 7.51 69.16 20.82 90.00 0.00 184.51 1,287 952 164.88 210.27 23.38

10.00 5.00 0.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 24.50 -35.85 0.00 4.35 4.97 34,828 2,572 -787 1,604 8.52 33.63 48.84

2009Y 15.49 -23.04 0.00 1.01 5.75 35,305 2,072 -483 1,246 8.40 41.51 44.45

2010Y 22.50 -19.54 0.00 0.38 3.35 40,767 2,377 -564 1,356 8.75 29.98 47.23

2011Y 21.88 -19.70 0.00 0.52 3.26 42,568 2,959 -595 1,345 8.78 37.77 43.08

2012L2 22.61 NA NA NA NA NA 3,025 -571 1,222 NA 36.23 40.38

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 78,315 8.52 91.24 0.00 0 0

2009Y 92,840 8.40 88.93 0.00 0 0

2010Y 103,693 8.75 85.68 0.97 0 0

2011Y 106,689 8.78 87.88 1.02 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

45,000 40,000

8.5

GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 11.13 10.53 -15.94 -1.37 -1.45 NM -8.57 25.53 35.97 25.93

2009Y 10.30 10.18 -0.06 -25.35 -34.21 15.97 1.37 21.50 29.77 21.83

2010Y 13.32 12.99 20.16 27.61 54.13 7.50 14.35 19.75 27.80 20.08

2011Y 490 43 5 76* 52 2.5* 16 16 721* 21 4 3 177*

2011Y 2.98 2.31 4.78 10.25 1.34 4.65 4.38 13.07 21.81 13.46

2012L2 -76.89 -82.05 828.88 -5.58 -10.12 -92.26 -3.70 -21.20 19.51 -16.93

Capital + Capital Ratios

8.8

8.7

8.4

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --567 545 NPW to Policyholders' Surplus 300 --48 48 Change in Net Premiums Written 33 -33 0 20 Surplus Aid to Policyholders' Surplus 15 --72* 74* Two-Year Overall Operating Ratio 100 --52 53 Investment Yield 6.5 3 0.2* 1.7* Gross Change in Policyholders' Surplus 50 -10 13 20 Net Change in Adj Policyholders' Surplus 25 -10 13 20 Liabilities to Liquid Assets 100 --832* 805* Agents' Bal to Policyholders' Surplus 40 --20 47* 1-Yr Resv Dev to Policyholders' Surplus 20 --4 -2 2-Yr Resv Dev to Policyholders' Surplus 20 --8 3 Est Curr Resv Defi/Policyholders' Surplus 25 ---99 -99 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio.

35,000

ACL Risk Based Capital

30,000

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

10,000 9,000

25,000 20,000

8,000 7,000

15,000 10,000

6,000 5,000

5,000 0 2008Y

2009Y

2010Y

2011Y

4,000 3,000

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y NM 5.13 6.60 420.14 6.64 3.31 1,499.12

2009Y 15.97 3.59 7.82 3,135.50 6.98 3.44 1,540.89

2010Y 7.50 -1.93 3.00 3,133.13 -3.79 3.17 1,378.01

2011Y 4.65 3.98 2.70 2,843.53 8.04 3.16 1,242.17

2012L2 -92.26 NA NA 1,901.73 NA NA 87.69

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2,000 1,000 0 2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 5,518 NA NA NA NA 0 0 0 0.00 59.35 2,137.22 NM

2009Y 6,226 NA NA NA NA 0 -36 0 0.00 50.18 2,087.09 NM

2010Y 2010Y 7,484 NA NA NA NA 15 112 0 0.00 51.47 1,961.85 NM

2011Y 2011Y 8,688 NA NA NA NA 78 42 0 0.00 45.97 1,728.88 NM

2012L2 9,321 NA NA NA NA 92 25 0 0.00 396.86 277.23 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


HlthCare Industry Liab Recpl (Ann Arbor, MI) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 11,368 0 11,368 15,227 77,169 19,688 0 123,451

4,375 0 0 0 0 0 0 0 0 0 9,775 0 14,149 13,050 89,072 19,893 0 136,164

13,469 0 0 0 0 0 0 0 0 0 3,043 0 16,511 16,618 95,384 25,794 0 154,307

15,822 0 0 0 0 0 0 0 0 0 3,142 0 18,965 14,501 99,623 25,810 0 158,899

16,205 0 0 0 0 0 0 0 0 0 1,941 0 18,145 12,054 228 4,733 0 35,160

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

58,145 24,577 82,722 16,375 13,867 4,269 0 700 117,933

71,996 23,937 95,933 17,171 11,910 4,180 0 745 129,939

81,585 21,544 103,129 21,884 15,218 5,605 0 987 146,823

84,019 23,904 107,924 22,197 13,217 5,948 0 926 150,211

6,632 1,542 8,174 1,660 10,961 4,243 0 801 25,840

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

0 0 0 4,418 1,100 5,518

0 0 0 5,126 1,100 6,226

0 0 0 6,384 1,100 7,484

0 0 0 7,588 1,100 8,688

0 0 0 8,221 1,100 9,321

123,451

136,164

154,307

158,899

35,160

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 100 0 0 11,368 0 0 0 0 0 0

2009Y 25 0 -36 14,149 0 4,430 0 0 0 0

2010Y 267 15 112 16,511 0 13,327 0 0 0 0

2011Y 445 78 42 18,965 0 15,594 0 0 0 0

2012L2 440 92 25 18,145 0 15,930 0 0 0 0

NA 0.00 NA NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Total Liabilities and C&S Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 34,828 0 34,828

0 35,305 0 35,305

0 40,369 0 40,369

0 42,136 0 42,136

0 40,588 NA 40,588

-31,859 2,969 -419 3,388

-32,338 2,967 132 2,836

-36,804 3,565 396 3,170

-38,400 3,736 28 3,708

-5,926 34,662 30,986 3,676

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 287 0 287 250 0 1,457 0 580 2,035 2,572 -787 0 0 1,604 0 1,784

0 322 0 322 423 0 1,311 0 16 1,326 2,072 -483 0 0 1,246 0 1,589

0 803 0 803 414 0 861 0 299 1,160 2,377 -564 0 0 1,356 0 1,813

0 1,458 0 1,458 1,264 0 689 0 -453 237 2,959 -595 0 0 1,345 0 2,364

NA NA NA NA NA NA NA NA NA NA 3,025 -571 0 0 1,222 0 2,454

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income

100 0 0 0 1,704 573 1,131

25 0 0 0 1,272 528 744

267 15 0 0 1,638 491 1,147

445 78 0 0 1,867 705 1,162

440 92 0 0 1,754 636 1,119

Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses

1,704 3,488 54

1,272 2,861 32

1,623 3,451 -1,370

1,789 4,231 175

1,662 4,209 NA

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

4,430 0

13,327 0

15,594 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 83.4%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 0.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Michigan - 17.5%

Illinois - 12.3%

New York - 5.2%

Tennessee - 5.1%

2009Y Mortgage Loans - 0.0%

2008Y Other Invstmts - 16.6%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y

Ohio - 5.4%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Michigan 2. Illinois 3. Ohio 4. New York 5. Tennessee All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 7,378 5,165 2,272 2,179 2,159 22,984 2008Y 0.01 NA 38,091 53.63

Rank and LOBs

DPW ($000)

All Other 2009Y 0.01 NA 34,828 51.99

2010Y 0.01 NA 35,305 53.63

2011Y 0.01 5.73 40,369 52.50

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.01 3.59 42,136 50.04

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 121

0 4,486

NA NA

0 0

0 0

0 0

694 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

2,709 0 0 0

Carr Value 15,594 0 0 15,594

Fair Value 15,822 0 0 15,822

Actual Cost 15,779 0 0 15,779

Par Value 14,981 --14,981

Total 62,176 0 0 --

2008Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 12.33 62.51 0.00 15.95 9.21 0.08

2009Y 1.00 0.00 0.00 30.92 0.00 0.00 0.00 69.08 0.00 NA 0.00 0.00 0.00 9.58 65.42 0.00 14.61 10.39 0.02

2010Y 1.00 0.00 0.00 81.57 0.00 0.00 0.00 18.43 0.00 NA 0.00 0.00 0.00 10.77 61.81 0.00 16.72 10.70 0.17

2011Y 1.00 0.00 0.00 83.43 0.00 0.00 0.00 16.57 0.00 NA 0.00 0.00 0.00 9.13 62.70 0.00 16.24 11.93 0.28

2012L2 1.00 0.00 0.00 89.30 0.00 0.00 0.00 10.70 0.00 NA 0.00 0.00 0.00 34.28 0.65 0.00 13.46 51.61 1.25

6 - The Securities and Bond section are held at carrying value


J.M. Woodworth RRG Inc. (Alpharetta, GA) Address and Geographic 3655 Brookside Parkway Suite 200 Alpharetta, GA 30022-1430 MSA: Atlanta-Sandy Springs-Marietta, GA (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 12594 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Northeastern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-4803611 Distribution Channel: Broker

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Donna K. Dalton Phone : (678) 781-2400 Fax : (678) 781-2450 Email : ddalton@uni-ter.com

Direction -----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook Not Covered by SNL ----

Liquidity

OFFICERS & ADVISORS Auditor Johnson Lambert & Co. LLP Actuary Deloitte Consulting LLP CEO -CFO -President Seth Evan Kronenberg

2008Y 8,631 5,089 3,542 166 2,304

2009Y 11,845 5,152 6,693 -861 3,342

2010Y 14,005 5,165 8,840 -334 4,427

2011Y 16,584 4,254 12,330 -968 7,032

2012L2 16,918 4,436 12,482 -742 6,940

3,913 3,159 2,269 979 22.33 -4.90 0.62

5,878 4,034 3,266 1,765 38.13 -17.62 0.78

7,483 4,941 4,386 3,309 51.97 -9.76 0.96

8,460 7,906 6,962 7,750 84.48 -33.53 1.86

9,200 8,245 6,922 9,210 115.28 -28.12 1.86

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

18,000 16,000

101.0

97.0

14,000

101.0 93.0

12,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 0.47 0.51 5.09 3.08 48.06 43.47 18.55 91.53 90.82 0.71 0.00

Profitability Ratios

2009Y 1.17 1.68 -17.45 -8.95 65.36 51.48 28.38 116.84 114.77 2.07 0.00

2010Y 0.54 0.83 -6.66 -2.69 63.22 43.39 45.29 106.61 105.68 0.93 0.00

2011Y 0.77 0.89 -20.78 -5.92 86.32 32.69 47.80 119.01 118.00 1.01 0.00

2012L2 0.16 0.21 -16.45 -4.21 80.05 32.34 39.95 112.39 112.14 0.25 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

10.00 5.00

119.0

116.8

112.4

106.6

0.00

91.5

-5.00

10,000 8,000

57.0

6,000 4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 11.02 162.45 7.67 57.00 0.00 230.58 1,751 1,711 256.66 256.66 -9.70

2009Y 25.30 99.37 32.87 97.00 0.00 143.89 -42 99 98.70 98.70 -14.61

2011Y 2010Y 14.39 93.55 24.62 101.00 0.00 119.74 1,434 1,454 138.31 138.31 -14.06

2012L2 2011Y 26.33 94.77 76.30 101.00 0.00 119.89 3,475 3,565 243.83 242.99 -17.81

2012L2 31.49 101.48 88.61 93.00 0.00 102.28 4,340 4,430 -1,470.85 -1,463.48 -17.12

-10.00 -15.00 -20.00 -25.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 29.51 5.68 0.00 2.95 34.84 3,913 1,090 1,373 -195 80.75 NM -6.96

2009Y 36.98 6.20 0.00 2.32 42.96 5,878 2,135 2,077 -946 68.63 NM -26.02

2010Y 17.93 10.67 0.00 4.73 27.99 7,483 2,773 2,144 -531 66.03 NM -11.06

2011Y 38.52 7.23 0.00 2.45 23.01 8,460 6,009 2,585 -1,632 93.45 NM -22.21

2012L2 40.10 NA NA NA NA NA 5,541 2,666 -1,285 NA NM -18.27

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y -90 80.75 0.00 0.00 0 0

2009Y -879 68.63 0.00 0.00 0 0

2010Y -953 66.03 0.00 0.00 0 0

2011Y 2,096 93.45 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

9,000 7,000

GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

80.8

ACL Risk Based Capital

68.6

6,000

2008Y 124.84 144.62 508.32 NM NM 755.83 310.39 NA NA NA

2009Y 37.24 88.95 27.69 NM NM 80.34 50.24 75.14 35.97 53.18

2010Y 18.23 32.08 22.47 NM NM 87.50 27.29 63.21 25.99 43.58

2011Y 199 186 60* 1 113* 0.7* -18* -19* 101* 17 48* 68* 57*

2011Y 18.41 39.48 60.02 NM NM 134.19 13.07 58.16 15.73 38.15

2012L2 3.55 10.58 30.23 NM NM 80.33 10.09 106.00 20.75 52.30

Capital + Capital Ratios

93.4

8,000

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --114 145 NPW to Policyholders' Surplus 300 --78 96 Change in Net Premiums Written 33 -33 28 22 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --104* 110* Investment Yield 6.5 3 1.1* 0.5* Gross Change in Policyholders' Surplus 50 -10 1 0 Net Change in Adj Policyholders' Surplus 25 -10 -18* -5 Liabilities to Liquid Assets 100 --97 101* Agents' Bal to Policyholders' Surplus 40 --13 12 1-Yr Resv Dev to Policyholders' Surplus 20 --5 1 2-Yr Resv Dev to Policyholders' Surplus 20 --1 3 Est Curr Resv Defi/Policyholders' Surplus 25 --1 -19 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio.

66.0

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

6,000

5,000

458.8

4,000

5,000

3,000

4,000

2,000 1,000

321.5 272.7

3,000

0 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

1,000

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 755.83 7.36 -0.97 22.33 7.76 28.08 19.23

2009Y 80.34 5.40 1.34 38.13 8.42 31.19 34.26

2010Y 87.50 0.74 3.00 51.97 0.87 43.86 64.07

2011Y 134.19 47.98 67.75 84.48 35.59 40.28 182.18

2012L2 80.33 NA NA 115.28 NA NA 207.62

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

249.8

2,000

145.6

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 5,089 5,089 555 917.53 458.76 8 30 0 0.00 96.65 69.60 -1.77

2009Y 5,152 5,152 945 545.30 272.65 -46 -32 0 0.00 81.76 129.90 -17.06

2010Y 2010Y 5,165 5,165 1,034 499.68 249.84 -10 95 0 0.00 98.48 171.15 -18.45

2011Y 2011Y 4,254 4,254 1,461 291.17 145.59 74 -16 0 0.00 169.73 289.82 49.27

2012L2 4,436 NA NA NA NA 121 3 0 0.00 182.89 281.38 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


J.M. Woodworth RRG Inc. (Alpharetta, GA) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

5,364 0 0 0 0 0 0 0 0 0 390 0 5,755 660 900 1,317 0 8,631

4,957 0 0 0 0 0 0 0 0 0 1,694 0 6,651 905 2,848 1,442 0 11,845

6,998 0 0 0 0 0 0 0 0 0 1,272 0 8,269 1,025 2,973 1,738 0 14,005

8,438 0 0 0 0 0 0 0 0 0 3,246 0 11,684 1,245 1,136 2,518 0 16,584

8,736 0 0 0 0 0 0 0 0 0 3,930 0 12,666 775 1,042 2,434 0 16,918

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

421 558 979 1,478 753 244 0 88 3,542

748 1,017 1,765 2,246 2,034 505 0 143 6,693

2,297 1,012 3,309 2,801 2,391 259 0 80 8,840

5,110 2,641 7,750 3,744 597 158 0 79 12,330

6,603 2,606 9,210 3,173 0 39 0 59 12,482

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

41 0 2,150 -837 3,736 5,089

50 0 2,150 -1,730 4,683 5,152

52 0 2,150 -1,970 4,933 5,165

55 0 1,950 -2,954 5,203 4,254

56 0 1,950 -2,897 5,327 4,436

Total Liabilities and C&S

8,631

11,845

14,005

16,584

16,918

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 16 8 30 5,755 0 5,364 0 0 0 0

2009Y 68 -46 46 -32 6,651 0 4,957 0 0 0 0

2010Y 41 -10 10 95 8,269 0 6,998 0 0 0 0

2011Y 70 74 -16 11,684 0 8,438 0 0 0 0

2012L2 17 121 3 12,666 0 8,736 0 0 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 3,913 0 3,913

0 5,878 0 5,878

0 7,483 0 7,483

0 8,460 0 8,460

0 9,200 NA 9,200

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-753 3,159 891 2,269

-1,844 4,034 768 3,266

-2,542 4,941 554 4,386

-555 7,906 943 6,962

-955 8,245 1,323 6,922

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 0 0 0 226 0 421 0 444 864 1,090 1,373 0 0 -195 0 2,464

0 600 0 600 748 0 327 0 460 786 2,135 2,077 0 0 -946 0 4,211

0 437 0 437 792 0 1,549 0 -5 1,544 2,773 2,144 0 0 -531 0 4,917

0 515 0 515 1,053 0 2,813 0 1,628 4,441 6,009 2,585 0 0 -1,632 0 8,594

NA NA NA NA NA NA NA NA NA NA 5,541 2,666 0 0 -1,285 0 8,208

16 8 0 19 -153 -319 166

68 -46 0 8 -915 -54 -861

41 -10 0 0 -499 -165 -334

70 74 0 0 -1,488 -520 -968

17 121 0 0 -1,147 -405 -742

-160 2,311 1,596

-870 3,296 2,580

-490 4,417 3,205

-1,562 7,106 3,766

-1,268 7,061 NA

2007Y

2008Y

2009Y

2010Y

2011Y

909 0

5,364 0

4,957 0

6,998 0

8,438 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 72.2%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 0.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

New York - 99.3% Alaska - 0.0%

Connecticut - 0.7%

Oth Comm'l - 14.9%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

All Other - 0.0%

Pennsylvania - 0.0%

Alabama - 0.0%

2008Y Other Invstmts - 27.8%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 85.1%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. New York 2. Connecticut 3. Pennsylvania 4. Alaska 5. Alabama All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 8,400 59 1 0 0 0 2008Y 0.00 NA 953 0.00

Rank and LOBs 1. Med Prof Liab 2. Oth Comm'l 3. Total Cmbnd A&H 4. Aircraft 5. Comm'l Auto St All Other 2009Y 0.00 NA 3,913 17.09

DPW ($000) 7,198 1,262 0 0 0 0 2010Y 0.00 NA 5,878 23.18

2011Y 0.00 NA 7,483 29.90

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 72.05 8,460 59.68

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 997 0

0 0 1,488 0

Carr Value 8,438 0 0 8,438

Fair Value 8,438 0 0 8,438

Actual Cost 8,393 0 0 8,393

Par Value 8,217 --8,217

Total 33,486 0 0 --

2008Y 1.00 0.00 0.00 93.22 0.00 0.00 0.00 6.78 0.00 NA 0.00 0.00 0.00 7.65 10.43 0.00 15.26 66.67 0.19

2009Y 1.00 0.00 0.00 74.53 0.00 0.00 0.00 25.47 0.00 NA 0.00 0.00 0.00 7.64 24.04 0.00 12.18 56.15 0.57

2010Y 1.00 0.00 0.00 84.62 0.00 0.00 0.00 15.38 0.00 NA 0.00 0.00 0.00 7.32 21.23 0.00 12.41 59.05 0.29

2011Y 1.00 0.00 0.00 72.22 0.00 0.00 0.00 27.78 0.00 NA 0.00 0.00 0.00 7.51 6.85 0.00 15.19 70.46 0.42

2012L2 1.00 0.00 0.00 68.97 0.00 0.00 0.00 31.03 0.00 NA 0.00 0.00 0.00 4.58 6.16 0.00 14.39 74.87 0.10

6 - The Securities and Bond section are held at carrying value


Joliet Area RRG Captive Ins Co (Thomasville, GA) Address and Geographic 14382 US Highway 19, South Thomasville, GA 31757-4801

Business Profile NAIC Company Code : 12159 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Midwestern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 83-0395967 Distribution Channel: Direct Response

MSA: Thomasville, GA (Micro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Cory E. Brown Phone : (229) 226-1937x106 Fax : (229) 226-5394 Email : cory.brown@mailtcs.com

Watch/Outlook Not Covered by SNL ----

2008Y 2.85 9.99 20.52 5.74 45.25 27.20 0.02 72.45 62.46 9.99 0.00

Profitability Ratios

2009Y 2.47 7.22 4.88 1.28 85.33 21.41 45.51 106.73 99.51 7.22 0.00

2010Y 3.18 19.89 17.45 3.56 73.43 39.42 -22.50 112.85 92.96 19.89 0.00

2011Y 2.65 15.22 -7.45 -1.65 26.99 32.46 25.95 59.45 44.23 15.22 0.00

Combined Ratio

2012L2 3.04 -43.04 -40.20 -8.63 51.97 NM 59.86 NM NM NA 0.00

112.9

72.5 59.5

-20.00 -30.00 -40.00 -50.00 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 45.23 0.00 0.00 2.91 24.29 2,736 881 530 537 71.19 -17.81 35.36

2009Y 39.82 14.47 0.00 2.88 4.05 2,838 2,024 508 -160 83.58 57.43 3.19

2010Y 95.94 0.00 0.00 3.66 35.76 1,890 933 501 -163 67.22 25.86 22.93

2011Y 1.04 0.00 0.00 3.28 29.18 2,019 397 478 597 72.91 NM -3.79

2012L2 -7.89 NA NA NA NA NA 722 482 186 NA NM -56.53

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 3,387 71.19 0.00 0.00 0 0

2009Y 3,473 83.58 9.79 0.00 0 0

2010Y 3,076 67.22 14.92 0.00 0 0

2011Y 4,411 72.91 18.86 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

3,500 2,500

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

2,736 1,948 1,948 4,632 225.81 35.42 1.29

2,838 2,372 2,372 5,605 193.26 4.08 1.14

1,890 1,270 1,270 5,904 457.28 23.54 0.60

2,019 1,472 1,472 5,353 367.30 -1.55 0.90

9 -537 1,390 4,719 355.42 -23.07 -0.30

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

99.0

6,000

79.0

79.0

2008Y

2009Y

81.0

82.0

5,000 4,000 3,000 2,000 1,000 0

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 12.67 126.22 43.46 79.00 0.00 214.11 990 1,451 205.24 182.20 1.27

2009Y 9.48 125.74 27.79 79.00 0.00 198.96 -285 -92 88.80 91.28 9.16

2011Y 2010Y 7.99 123.09 26.19 81.00 0.00 195.67 776 1,066 183.11 212.04 14.06

2012L2 2011Y 11.91 120.61 50.06 82.00 0.00 237.24 1,474 553 312.82 350.99 9.07

2012L2 9.18 88.84 35.58 99.00 0.00 106.46 316 -628 121.87 126.10 11.66

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --136 90 NPW to Policyholders' Surplus 300 --114 60 Change in Net Premiums Written 33 -33 22 -46* Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --80 85 Investment Yield 6.5 3 2.4* 3.2 Gross Change in Policyholders' Surplus 50 -10 38 1 Net Change in Adj Policyholders' Surplus 25 -10 35* -5 Liabilities to Liquid Assets 100 --79 81 Agents' Bal to Policyholders' Surplus 40 --0 0 1-Yr Resv Dev to Policyholders' Surplus 20 --10 -16 2-Yr Resv Dev to Policyholders' Surplus 20 ---24 3 Est Curr Resv Defi/Policyholders' Surplus 25 ---29 -99 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y -3.40 11.32 -4.71 110.32 31.26 11.63 -4.62 35.04 1.97 22.67

2009Y 22.55 18.04 21.77 -89.20 -77.70 21.01 3.72 31.46 8.34 22.65

2010Y 9.74 12.76 -46.44 411.81 217.07 5.34 -33.40 23.37 7.13 18.18

2011Y 123 90 16 NA 86 2.7* -22* -23* 82 0 -22 -36 -43

2011Y -5.34 -0.21 15.86 NM NM -9.34 6.82 13.20 -5.25 7.82

2012L2 -11.55 -7.32 NM NM NM -6.30 -99.54 6.52 -6.60 2.86

Capital + Capital Ratios

83.6

3,000

2012L2 8,601 1,765 6,837 -758 769

7,000

10.00 0.00

2011Y 8,507 1,635 6,872 -154 843

8,000

Return on Avg Assets

-10.00

2010Y 8,987 2,101 6,886 316 1,860

9,000

Net Yield on Invested Assets

106.7

2009Y 8,190 2,083 6,107 100 2,615

10,000

Return on Average Equity (C&S)

30.00

2008Y 6,682 1,509 5,174 447 2,183

Liquidity

OFFICERS & ADVISORS Auditor Sewell Morgan & Hilliard Actuary Milliman Inc. CEO -CFO -President Thomas J. Moore

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

20.00

Direction -----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

72.9

71.2

ACL Risk Based Capital

67.2

2,000

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

2,500

1,500 1,000

2,000

210.5

500 0

177.6

164.3

1,500

162.2 127.1

-500 -1,000 2008Y

2009Y

2010Y

2011Y

1,000

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 11.63 -31.19 -57.27 225.81 -36.35 28.19 306.99

2009Y 21.01 10.47 -24.19 193.26 6.66 30.96 269.13

2010Y 5.34 -16.23 2.58 457.28 -26.61 19.47 281.04

2011Y -9.34 -22.42 -36.20 367.30 -32.01 24.94 327.38

2012L2 -6.30 NA NA 355.42 NA NA 267.41

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

500 0 2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 1,509 1,509 459 328.66 164.33 -392 0 0 0.00 89.37 342.90 224.49

2009Y 2,083 2,083 586 355.28 177.64 151 -134 0 0.00 116.13 293.23 166.76

2010Y 2010Y 2,101 2,101 648 324.45 162.22 0 197 0 0.00 70.09 327.79 146.42

2011Y 2011Y 1,635 1,635 643 254.12 127.06 0 -338 0 0.00 71.28 420.30 269.78

2012L2 1,765 NA NA NA NA -262 275 0 0.00 -28.51 387.43 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Joliet Area RRG Captive Ins Co (Thomasville, GA) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

3,783 0 2,091 0 0 0 0 0 0 0 656 0 6,530 0 0 152 0 6,682

4,290 0 2,810 0 0 0 0 0 0 0 579 0 7,679 0 284 227 0 8,190

4,515 0 3,412 0 0 0 0 0 0 0 550 0 8,477 0 0 511 0 8,987

4,369 0 3,100 0 0 0 0 0 0 0 819 0 8,288 0 0 219 0 8,507

3,107 0 2,339 0 0 0 0 0 0 0 628 0 6,074 764 1,297 466 0 8,601

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

2,831 1,801 4,632 0 0 0 0 542 5,174

3,510 2,095 5,605 0 0 -1 0 502 6,107

3,224 2,680 5,904 0 444 176 0 362 6,886

2,660 2,693 5,353 0 1,108 17 0 394 6,872

2,160 2,559 4,719 986 1,108 24 0 0 6,837

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

2,008 0 0 85 -584 1,509

2,041 0 0 750 -709 2,083

2,116 0 0 1,264 -1,279 2,101

2,130 0 0 772 -1,267 1,635

2,130 0 0 1,003 -1,369 1,765

Total Liabilities and C&S

6,682

8,190

8,987

8,507

8,601

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 195 -392 392 0 6,530 0 3,783 0 2,091 0 0

2009Y 171 151 -134 7,679 0 4,290 0 2,810 0 0

2010Y 253 0 197 8,477 0 4,515 0 3,412 0 0

2011Y 224 0 -338 8,288 0 4,369 0 3,100 0 0

2012L2 231 -262 262 275 6,074 0 3,107 0 2,339 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 2,736 0 2,736

0 2,838 0 2,838

0 1,890 0 1,890

0 2,019 0 2,019

0 2,012 NA 9

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-788 1,948 0 1,948

-466 2,372 0 2,372

-619 1,270 0 1,270

-547 1,472 0 1,472

-547 -537 -1,927 1,390

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 0 0 0 399 0 0 0 482 482 881 530 0 0 537 0 1,411

0 400 0 400 651 0 679 0 294 973 2,024 508 0 0 -160 0 2,531

0 0 0 0 634 0 -286 0 585 299 933 501 0 0 -163 0 1,434

0 947 0 947 2 0 -565 0 13 -552 397 478 0 0 597 0 875

NA NA NA NA NA NA NA NA NA NA 722 482 0 0 186 0 1,204

195 -392 60 -20 380 -68 447

171 151 72 0 234 135 100

253 0 43 295 427 110 316

224 0 78 -931 -32 122 -154

231 -262 79 -931 -697 61 -758

772 1,791 980

83 2,766 1,205

427 1,860 1,193

-32 843 544

-435 507 NA

2007Y

2008Y

2009Y

2010Y

2011Y

3,529 0

3,783 0

4,290 0

4,515 0

4,369 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 52.7%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 37.4%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Illinois - 100.0% Arkansas - 0.0%

Alaska - 0.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Alabama - 0.0%

Arizona - 0.0%

2008Y Other Invstmts - 9.9%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Illinois 2. Alaska 3. Alabama 4. Arkansas 5. Arizona All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 2,019 0 0 0 0 0 2008Y 0.00 NA 2,868 45.43

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 2,736 0.01

DPW ($000) 2,019 0 0 0 0 0 2010Y 0.00 18.60 2,838 0.00

2011Y 0.00 -10.90 1,890 0.00

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -8.40 2,019 18.92

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

190 0

0 0

NA NA

309 0 0 1,284

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 4,369 3,096 0 7,465

Fair Value 4,533 3,100 0 7,633

Actual Cost 4,254 3,096 0 7,350

Par Value 4,091 --4,091

Total 17,248 9,292 0 --

2008Y 1.00 0.00 0.00 57.93 138.61 32.02 0.00 10.04 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 2.28 97.72 2.91

2009Y 1.00 0.00 0.00 55.87 134.92 36.59 0.00 7.54 0.00 NA 0.00 0.00 0.00 0.00 3.46 0.00 2.77 93.76 2.09

2010Y 1.00 0.00 0.00 53.26 162.39 40.25 0.00 6.49 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 5.68 94.32 2.81

2011Y 1.00 0.00 0.00 52.72 189.60 37.40 0.00 9.88 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 2.57 97.43 2.63

2012L2 1.00 0.00 0.00 51.15 132.56 38.51 0.00 10.34 0.00 NA 0.00 0.00 0.00 8.89 15.08 0.00 5.42 70.61 2.69

6 - The Securities and Bond section are held at carrying value


Lancet Indemnity RRG Inc. (Las Vegas, NV) Address and Geographic 5430 West Sahara Avenue Las Vegas, NV 89146-3307

Business Profile NAIC Company Code : 13014 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Southern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 26-1479165 Distribution Channel: Direct Response

MSA: Las Vegas-Paradise, NV (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Gemma Agustin Tuanqui Phone : (800) 226-0793 Fax : (941) 906-7538 Email : gtuanqui@pboa.com

Direction -----

2008Y NA 0.02 NA NA 42.80 30.62 32.10 73.42 73.37 0.04 0.00

Profitability Ratios

2009Y 0.36 0.13 32.12 7.05 41.34 15.39 22.42 56.74 56.40 0.33 0.00

2010Y 1.45 1.18 21.09 4.94 54.46 33.16 35.76 87.63 86.32 1.30 0.00

2011Y 0.49 0.48 3.46 0.88 58.89 38.72 21.49 97.61 97.11 0.50 0.00

Liquidity

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

12,000

108.6 87.6

20.00

73.4

15.00

56.7

10.00 5.00 0.00 -5.00 -10.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 10.70 5.91 0.00 2.57 22.14 647 118 198 -40 100.00 NM -14.36

2009Y 18.92 4.55 0.00 0.69 10.16 5,499 755 750 322 88.60 32.45 17.88

2010Y 18.71 10.39 0.00 1.49 21.28 5,805 2,679 1,793 447 93.11 34.10 10.26

2011Y 37.39 16.04 0.00 0.83 21.85 8,826 3,640 2,504 37 73.27 35.43 2.12

2012L2 50.23 NA NA NA NA NA 4,621 2,776 -463 NA NM -4.34

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 0 100.00 NA 0.00 0 0

2009Y 392 88.60 0.00 0.00 0 0

2010Y 2,261 93.11 0.00 0.00 0 0

2011Y 2,250 73.27 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

10,000

2012L2 12,961 3,276 9,685 -205 7,089

647 647 277 118 NA NA 1.27

5,499 4,873 1,827 818 24.02 47.55 4.60

5,805 5,406 4,919 2,113 29.97 32.01 2.69

8,826 6,467 6,182 4,057 48.25 5.36 2.33

9,788 6,619 6,934 5,247 58.01 -10.73 2.02

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

157.0 127.0

132.0 117.0

8,000 6,000 4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 63.54 63.54 86.77 157.00 0.00 90.80 384 385 466.24 466.24 -2.79

2009Y 70.03 70.03 345.02 143.00 0.00 95.50 2,721 2,713 279.96 280.85 2.99

2011Y 2010Y 78.94 78.94 235.57 127.00 0.00 116.15 362 257 112.03 117.63 6.56

2012L2 2011Y 75.73 78.96 275.91 132.00 11.77 124.07 2,842 2,563 168.73 177.80 4.88

2012L2 85.58 90.28 252.99 117.00 13.88 97.28 2,359 2,375 146.92 149.64 5.14

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --520 289 NPW to Policyholders' Surplus 300 --460* 269 Change in Net Premiums Written 33 -33 653* 11 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --59 75 Investment Yield 6.5 3 0.3* 1.5* Gross Change in Policyholders' Surplus 50 -10 107* 90* Net Change in Adj Policyholders' Surplus 25 -10 43* 32* Liabilities to Liquid Assets 100 --143* 127* Agents' Bal to Policyholders' Surplus 40 --126* 88* 1-Yr Resv Dev to Policyholders' Surplus 20 ---20 22* 2-Yr Resv Dev to Policyholders' Surplus 20 --NA -22 Est Curr Resv Defi/Policyholders' Surplus 25 --NA -33 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y NA NA NA NA NA NA NA NA NA NA

2009Y 418.58 646.78 653.26 NM NM 591.14 750.13 NA NA NA

2010Y 27.44 14.83 10.94 55.96 52.14 158.31 5.57 NA NA NA

2011Y 318 233 20 NA 92 0.5* 38 5 132* 102* 9 7 -40

2011Y 61.12 68.79 19.63 -73.94 -74.46 91.98 52.03 143.70 75.71 120.00

2012L2 46.94 56.03 9.95 NM NM 78.82 41.73 119.93 57.54 92.40

Capital + Capital Ratios

9,000 8,000

2011Y 12,880 2,774 10,106 86 6,278

143.0

97.6

25.00

2010Y 7,994 2,006 5,987 337 4,983

10,000

35.00 30.00

2009Y 6,273 1,058 5,214 221 1,833

14,000

2012L2 0.14 0.16 -7.16 -1.73 66.65 41.94 16.41 108.59 108.43 0.15 0.00

Return on Average Equity (C&S)

2008Y 1,210 511 698 -34 277

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook Not Covered by SNL ----

OFFICERS & ADVISORS Auditor Shores Tagman Butler & Co P.A. Actuary Milliman Inc. CEO -CFO -President Alan Joseph Iezzi

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

100.0

93.1

88.6

7,000

ACL Risk Based Capital

73.3

6,000 5,000

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

3,000 306.3

2,500

4,000 3,000

2,000

2,000 1,500

1,000 0 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y NA NA 0.00 NA 0.00 75.00 23.15

2009Y 591.14 -19.95 0.00 24.02 -5.58 45.03 77.31

2010Y 158.31 22.02 -22.49 29.97 4.74 47.86 105.33

2011Y 91.98 9.27 7.18 48.25 3.01 28.04 146.27

2012L2 78.82 NA NA 58.01 NA NA 160.17

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

168.5

1,000

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 511 511 83 612.55 306.27 0 0 0 0.00 NA 136.55 0.00

2009Y 1,058 1,058 314 337.05 168.52 0 0 0 0.00 706.83 492.71 37.04

125.7

115.7

2010Y

2011Y

2010Y 2,006 2,006 798 251.33 125.66 0 0 0 0.00 338.50 298.40 112.68

2011Y 2,774 2,774 1,199 231.42 115.71 0 17 0 0.00 260.24 364.33 81.11

2012L2 3,276 NA NA NA NA 0 102 0 0.00 230.70 295.62 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Lancet Indemnity RRG Inc. (Las Vegas, NV) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 444 0 444 157 0 609 0 1,210

0 0 0 0 0 0 0 0 0 0 3,651 0 3,651 1,334 0 1,287 0 6,273

0 0 0 0 0 0 0 0 0 0 4,727 0 4,727 1,756 0 1,511 0 7,994

0 0 326 0 0 0 0 0 0 0 7,653 0 7,980 2,834 0 2,066 0 12,880

0 0 455 0 0 0 0 0 0 0 8,288 0 8,743 2,440 0 1,778 0 12,961

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

89 30 118 370 0 196 0 14 698

493 325 818 3,416 131 343 0 506 5,214

1,252 862 2,113 3,903 -1,447 647 0 771 5,987

2,098 1,960 4,057 4,188 -35 1,046 0 851 10,106

2,436 2,812 5,247 3,740 -582 573 0 706 9,685

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

505 0 0 -34 41 511

298 0 75 188 497 1,058

29 0 75 524 1,378 2,006

27 0 75 628 2,044 2,774

28 0 75 667 2,507 3,276

1,210

6,273

7,994

12,880

12,961

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 326 0 0 0 326

0 0 455 0 0 0 455

2008Y 0 0 0 444 0 0 0 0 0 0

2009Y 6 0 0 3,651 0 0 0 0 0 0

2010Y 64 0 0 4,727 0 0 0 0 0 0

2011Y 31 0 17 7,980 326 0 0 326 0 0

2012L2 11 0 102 8,743 455 0 0 455 0 0

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA NA NA NA NA NA NA

Total Liabilities and C&S Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 647 0 647

0 5,499 0 5,499

0 5,805 0 5,805

0 8,826 0 8,826

0 9,788 NA 9,788

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

0 647 370 277

-627 4,873 3,045 1,827

-400 5,406 487 4,919

-2,359 6,467 285 6,182

-3,169 6,619 -315 6,934

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 0 0 0 0 0 89 0 30 118 118 198 0 0 -40 0 316

0 5 0 5 51 0 405 0 295 700 755 750 0 0 322 0 1,505

0 1,001 0 1,001 383 0 758 0 537 1,295 2,679 1,793 0 0 447 0 4,471

0 483 0 483 1,214 0 846 0 1,098 1,944 3,640 2,504 0 0 37 0 6,144

NA NA NA NA NA NA NA NA NA NA 4,621 2,776 0 0 -463 0 7,397

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income

0 0 0 0 -40 -6 -34

6 0 0 0 328 106 221

64 0 0 0 511 174 337

31 0 65 0 133 47 86

11 0 145 0 -308 -102 -205

Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses

-40 277 105

328 1,833 1,507

511 4,983 2,008

133 6,278 3,701

-308 7,089 NA

2007Y

2008Y

2009Y

2010Y

2011Y

NA NA

0 0

0 0

0 0

0 0

NA NA NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 0.0%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 0.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Florida - 54.6% Kentucky - 3.9%

California - 17.9%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Michigan - 16.9%

Texas - 2.9%

2008Y Other Invstmts - 100.0%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Florida 2. California 3. Michigan 4. Kentucky 5. Texas All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 4,820 1,583 1,493 341 254 335 2008Y NA NA NA NA

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 647 32.10

DPW ($000) 8,826 0 0 0 0 0 2010Y 0.00 NA 5,499 23.50

2011Y 0.00 NA 5,805 36.90

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 NA 8,826 22.13

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

NA NA

0 0

0 0

0 0

NA NA

NA NA

0 0

0 0

0 0

NA NA

NA NA NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 0 326 0 326

Fair Value 0 326 0 326

Actual Cost 0 300 0 300

Par Value 0 --0

Total 0 953 0 --

2008Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 12.95 0.00 0.00 50.37 36.68 0.01

2009Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 21.27 0.00 0.00 20.52 58.21 0.10

2010Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 21.97 0.00 0.00 18.90 59.13 0.80

2011Y NA 0.00 0.00 0.00 11.77 0.00 0.00 95.91 0.00 NA 0.00 0.00 0.00 22.00 0.00 0.00 16.04 61.96 0.24

2012L2 NA 0.00 0.00 0.00 13.88 0.00 0.00 94.80 0.00 NA 0.00 0.00 0.00 18.83 0.00 0.00 13.72 67.46 0.08

6 - The Securities and Bond section are held at carrying value


National Assisted Living RRG (Norcross, GA) Address and Geographic 3740 Davinci Court Suite 130 Norcross, GA 30092-7634 MSA: Atlanta-Sandy Springs-Marietta, GA (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 11806 Business Focus : Commercial General Liability Focus Geographic Focus: Regional - Southern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-0127980 Distribution Channel: Direct Response

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Rose Patrick Phone : (770) 255-4913 Fax : (770) 246-8536 Email : rpatrick@venturecaptive.com

Watch/Outlook Not Covered by SNL ----

2008Y 1.08 3.31 8.63 3.82 43.92 45.03 26.40 88.94 85.81 3.13 0.00

Profitability Ratios

2009Y 0.56 1.55 6.20 2.58 36.67 41.07 15.07 77.74 76.04 1.70 0.00

2010Y 1.84 6.07 6.21 2.54 49.67 47.04 33.91 96.71 90.87 5.84 0.00

2011Y 2.31 9.88 8.97 3.72 44.68 54.42 23.88 99.10 90.41 8.69 0.00 Return on Avg Assets Combined Ratio

99.1

2012L2 1.88 9.94 6.91 2.95 44.06 51.29 19.57 95.35 86.81 8.54 0.00

95.4

77.7

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 17.51 10.13 0.00 5.58 29.32 1,786 830 792 255 100.00 34.01 15.30

2009Y 21.60 8.80 0.00 5.02 27.24 2,001 670 822 335 100.00 28.45 19.36

2010Y 15.77 10.01 0.00 6.16 30.88 1,873 967 881 99 100.00 36.38 10.29

2011Y 20.80 10.90 0.00 6.74 36.78 1,540 782 838 130 100.00 22.45 13.22

2012L2 24.49 NA NA NA NA NA 649 650 175 NA 25.62 16.95

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 0 100.00 NA 0.00 0 0

2009Y 0 100.00 NA 0.00 0 0

2010Y 0 100.00 NA 0.00 0 0

2011Y 0 100.00 NA 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

2,500 2,000

2011Y 6,955 3,088 3,868 263 1,867

2012L2 7,471 3,193 4,278 211 1,564

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

1,786 1,786 1,889 2,454 120.32 11.32 0.70

2,001 2,001 1,828 2,235 137.02 14.14 0.67

1,873 1,873 1,947 2,597 126.31 7.80 0.63

1,540 1,540 1,750 2,721 158.53 8.41 0.50

1,266 1,266 1,473 2,960 192.50 8.68 0.40

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

63.0

6,000

Net Yield on Invested Assets

2009Y

2010Y 6,958 2,981 3,978 169 2,060

7,000

88.9

2008Y

2009Y 6,323 2,978 3,345 157 1,850

8,000

Return on Average Equity (C&S)

96.7

2008Y 6,059 2,567 3,492 225 1,929

Liquidity

OFFICERS & ADVISORS Auditor Porter Keadle Moore LLC Actuary Merlinos & Associates Inc. CEO -CFO -President Guy Stephen Pierce

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

Direction -----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

61.0

61.0

5,000 4,000

59.0

3,000 57.0

2,000 1,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 13.84 158.88 18.83 63.00 0.00 170.78 669 925 158.66 142.28 2.25

2009Y 159.60 174.55 179.25 57.00 0.00 182.20 225 142 113.80 120.83 9.79

2011Y 2010Y 23.91 170.33 31.91 61.00 0.00 187.15 526 579 135.70 138.98 13.07

2012L2 2011Y 12.99 174.08 16.27 59.00 0.00 193.10 -48 -4 96.90 104.13 15.27

2012L2 15.32 164.46 20.52 61.00 0.00 185.95 105 141 108.38 115.27 15.95

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --67 63 NPW to Policyholders' Surplus 300 --67 63 Change in Net Premiums Written 33 -33 12 -6 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --81 83 Investment Yield 6.5 3 0.5* 1.9* Gross Change in Policyholders' Surplus 50 -10 16 0 Net Change in Adj Policyholders' Surplus 25 -10 19 -3 Liabilities to Liquid Assets 100 --57 61 Agents' Bal to Policyholders' Surplus 40 --6 3 1-Yr Resv Dev to Policyholders' Surplus 20 ---28 -13 2-Yr Resv Dev to Policyholders' Surplus 20 ---43 -39 Est Curr Resv Defi/Policyholders' Surplus 25 ---33 -29 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 9.06 18.91 -4.22 NM NM 26.93 -4.22 53.50 13.38 27.77

2009Y 4.36 -4.22 12.05 21.38 -30.16 -8.90 12.05 28.38 12.75 19.51

2010Y 10.05 18.92 -6.41 -40.84 7.41 16.17 -6.41 18.85 9.77 14.42

2011Y 50 50 -18 NA 91 2.3* 4 2 59 3 -15 -26 -34

2011Y -0.04 -2.76 -17.80 16.43 55.98 4.79 -17.80 13.70 5.29 9.49

2012L2 1.21 -2.52 -30.30 14.11 -31.20 2.42 -30.30 11.91 4.96 8.61

Capital + Capital Ratios 100.0

100.0

100.0

100.0

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

3,500

1,500

375.0

3,000 1,000

324.3

2,500 500

2,000 202.5

0 2008Y

2009Y

2010Y

2011Y

1,500

0.0 2012L2

1,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 26.93 -19.48 -9.70 120.32 -27.00 65.00 95.59

2009Y -8.90 -28.01 -42.69 137.02 -39.34 62.27 75.06

2010Y 16.17 -12.86 -39.11 126.31 -19.67 69.38 87.11

2011Y 4.79 -15.37 -26.02 158.53 -26.17 68.54 88.13

2012L2 2.42 NA NA 192.50 NA NA 92.70

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

187.9

158.2

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 2,567 2,567 811 316.45 158.22 46 -342 0 0.00 68.52 136.04 0.00

2009Y 2,978 2,978 397 750.06 375.03 -139 326 0 0.00 78.97 112.31 0.00

2010Y 2010Y 2,981 2,981 736 405.00 202.50 53 83 0 0.00 68.95 133.44 0.00

2011Y 2011Y 3,088 3,088 822 375.84 187.92 93 -161 0 0.00 52.49 125.27 0.00

2012L2 3,193 NA NA NA NA 19 12 0 0.00 41.48 133.97 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


National Assisted Living RRG (Norcross, GA) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

499 0 4,566 0 0 0 0 0 0 0 483 0 5,548 8 0 502 0 6,059

500 0 0 0 0 0 0 0 0 0 5,338 0 5,838 169 0 315 0 6,323

1,401 0 4,183 0 0 0 0 0 0 0 951 0 6,536 76 0 347 0 6,958

1,015 0 5,061 0 0 0 0 0 0 0 502 0 6,578 90 0 288 0 6,955

839 0 5,541 0 0 0 0 0 0 0 655 0 7,036 72 0 364 0 7,471

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

1,952 501 2,454 795 0 68 0 175 3,492

1,710 526 2,235 969 0 106 0 34 3,345

2,034 563 2,597 895 0 119 0 367 3,978

2,085 636 2,721 685 0 118 0 343 3,868

2,236 724 2,960 823 0 117 0 377 4,278

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

2,240 0 190 136 0 2,567

2,329 0 30 619 0 2,978

2,420 0 30 909 -378 2,981

2,454 0 30 1,062 -458 3,088

2,483 0 30 1,192 -511 3,193

Total Liabilities and C&S

6,059

6,323

6,958

6,955

7,471

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 59 46 -342 5,548 0 499 0 4,566 0 0

2009Y 31 -139 139 326 5,838 0 500 0 0 0 0

2010Y 114 53 83 6,536 0 1,641 0 4,183 0 0

2011Y 152 93 -161 6,578 0 1,170 0 5,061 0 0

2012L2 126 19 12 7,036 0 839 0 5,541 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 1,786 0 1,786

0 2,001 0 2,001

0 1,873 0 1,873

0 1,540 0 1,540

0 1,266 NA 1,266

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

0 1,786 -103 1,889

0 2,001 174 1,828

0 1,873 -74 1,947

0 1,540 -210 1,750

0 1,266 -207 1,473

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 56 0 56 253 0 443 0 78 521 830 792 13 0 255 0 1,634

0 518 0 518 370 0 -243 0 24 -218 670 822 0 0 335 0 1,492

0 336 0 336 270 0 324 0 37 361 967 881 0 0 99 0 1,848

0 367 0 367 291 0 51 0 73 124 782 838 0 0 130 0 1,620

NA NA NA NA NA NA NA NA NA NA 649 650 0 0 175 0 1,299

59 46 0 -19 341 116 225

31 -139 0 -8 220 62 157

114 53 0 0 265 97 169

152 93 0 -35 339 76 263

126 19 0 -35 284 73 211

295 1,975 1,144

358 1,712 1,228

212 2,113 1,247

247 1,959 1,254

265 1,582 NA

2007Y

2008Y

2009Y

2010Y

2011Y

4,676 0

499 0

500 0

1,641 0

1,170 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 15.4%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 76.9%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Florida - 45.6% South Carolina - 3.1%

North Carolina - 43.9%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Georgia - 4.3%

Virginia - 3.0%

2008Y Other Invstmts - 7.6%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Oth, Prod Liab Cmbnd - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Florida 2. North Carolina 3. Georgia 4. South Carolina 5. Virginia All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 702 677 66 48 46 2 2008Y 0.00 NA 1,865 46.10

Rank and LOBs 1. Oth, Prod Liab Cmbnd 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 44.41 1,786 26.40

2010Y 0.00 15.86 2,001 15.07

DPW ($000) 1,540 0 0 0 0 0 2011Y 0.00 6.54 1,873 33.91

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -0.75 1,540 23.88

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 1,015 5,061 0 6,075

Fair Value 1,015 5,061 0 6,075

Actual Cost 1,001 5,166 0 6,166

Par Value 932 --932

Total 3,962 15,287 0 --

2008Y 1.00 0.00 0.00 9.00 177.87 82.29 0.00 8.71 0.00 NA 0.00 0.00 0.00 0.14 0.00 0.00 8.29 91.57 0.98

2009Y 1.00 0.00 0.00 8.56 0.00 0.00 0.00 91.44 0.00 NA 0.00 0.00 0.00 2.68 0.00 0.00 4.99 92.33 0.49

2010Y 1.00 0.00 0.00 21.44 140.34 64.01 0.00 14.55 0.00 NA 0.00 0.00 0.00 1.09 0.00 0.00 4.99 93.92 1.63

2011Y 1.00 0.00 0.00 15.43 163.90 76.94 0.00 7.64 0.00 NA 0.00 0.00 0.00 1.29 0.00 0.00 4.14 94.57 2.19

2012L2 1.00 0.00 0.00 11.92 173.54 78.76 0.00 9.31 0.00 NA 0.00 0.00 0.00 0.96 0.00 0.00 4.87 94.17 1.68

6 - The Securities and Bond section are held at carrying value


Natl Svc Contract Ins Co. RRG (Washington, DC) Address and Geographic 2233 Wisconsin Avenue, NW Suite 310 Washington, DC 20007-4104 MSA: Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Business Profile NAIC Company Code : 10234 Business Focus : P&C Minimum NPW Geographic Focus: Geography Minimum NPW NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 99-0319305 Distribution Channel: General Agnt/Managing General Agnt, Independent Agency Date -----

STATUTORY CONTACT INFORMATION Name : Charles Halstead-Johnson Phone : (802) 479-7801 Fax : (802) 223-3911 Email : cjohnson@riskservcos.com

Direction -----

Watch/Outlook Not Covered by SNL ----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Liquidity

OFFICERS & ADVISORS Auditor PricewaterhouseCoopers LLP Actuary -CEO -CFO -President Mark H. Mishler 2008Y 3.72 98.23 2.60 2.12 63.02 201.04 63.02 264.06 242.46 21.60 0.00

Profitability Ratios 5.00 4.00 3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 -4.00 -5.00

2009Y 0.92 21.37 -1.40 -1.24 77.22 126.62 77.22 203.84 193.66 10.18 0.00

2010Y 2.02 56.97 0.56 0.51 NM -159.72 NM NM NM NA 0.00

2011Y 1.48 44.85 0.29 0.23 29.30 230.06 29.30 259.37 238.58 20.79 0.00 Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

264.1

2008Y

194.2

0.0 2010Y

2009Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 0.00 33.77 0.00 17.16 150.10 595 1,470 1,031 -168 86.14 -9.08 11.82

2009Y 0.00 13.00 0.00 7.23 106.38 739 1,020 797 -496 85.12 NM -24.82

2010Y 0.00 10.04 0.00 8.73 -178.49 615 349 716 35 82.10 56.28 NM

2011Y 0.00 4.93 0.00 11.72 213.41 500 246 864 -302 77.99 0.00 -12.54

2012L2 0.00 NA NA NA NA NA 172 923 -406 NA 0.00 -51.27

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y -13 86.14 0.00 -7.12 0 0

2009Y 0 85.12 NA -1.26 0 0

2010Y 0 82.10 NA -1.15 0 0

2011Y -32 77.99 0.00 -0.20 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

800 700

2011Y 9,363 7,654 1,709 28 1,016

2012L2 9,444 7,663 1,781 -299 723

638 513 2,332 531 23.74 2.39 0.04

748 629 1,321 320 33.17 -2.57 0.05

622 505 -422 25 NM 2.33 0.04

501 390 841 20 2.60 -1.33 0.05

655 545 689 20 2.90 -4.82 0.07

Total Assets

Total Liabilities

14,000

259.4 203.8

2010Y 14,503 12,444 2,059 77 -134

Liabilities / Liquid Assets (IRIS Ratio)

16,000

2012L2 0.36 6.38 -3.88 -3.04 24.92 169.30 24.92 194.22 189.17 5.05 0.00

Return on Average Equity (C&S)

2009Y 15,317 13,945 1,372 -197 1,455

18,000

12,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 16,508 14,213 2,294 366 2,836

20.0

19.0 16.0

15.0

10,000 8,000

10.0

6,000 4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 227.86 652.04 36.78 16.00 0.00 649.02 -1,921 -304 23.05 29.18 60.95

2009Y 729.52 NM 71.78 10.00 0.00 1,121.70 -1,527 -269 24.93 24.73 63.93

2011Y 2010Y 322.65 680.42 53.38 15.00 0.00 738.18 790 1,156 -262.80 -204.19 57.17

2012L2 2011Y 389.41 538.25 86.96 19.00 0.00 635.96 -603 -346 43.85 41.76 37.39

2012L2 374.02 509.44 86.93 20.00 0.00 600.72 -219 -209 74.77 87.61 37.17

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --5 5 NPW to Policyholders' Surplus 300 --5 4 Change in Net Premiums Written 33 -33 23 -20 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --211* 238* Investment Yield 6.5 3 0.9* 2* Gross Change in Policyholders' Surplus 50 -10 -2 -11* Net Change in Adj Policyholders' Surplus 25 -10 -2 -11* Liabilities to Liquid Assets 100 --10 15 Agents' Bal to Policyholders' Surplus 40 --1 0 1-Yr Resv Dev to Policyholders' Surplus 20 ---2 -2 2-Yr Resv Dev to Policyholders' Surplus 20 ---4 -4 Est Curr Resv Defi/Policyholders' Surplus 25 ---2 0 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y -9.21 -46.48 -65.34 -56.51 -39.15 -0.90 -59.96 -8.34 6.88 3.75

2009Y -7.21 -40.19 22.68 NM NM -39.79 17.37 -25.13 5.50 -1.48

2010Y -5.31 50.05 -19.79 NM NM -92.18 -16.94 -19.65 -0.16 -4.95

2011Y 7 5 -23 NA 209* 1.5* -38* -38* 19 0 0 -2 0

2011Y -35.44 -16.98 -22.76 NM -64.06 -20.00 -19.45 -22.41 -10.45 -13.53

2012L2 -25.65 -63.62 3.52 NM NM 0.00 2.31 -18.94 -10.85 -12.77

Capital + Capital Ratios 86.1

85.1

82.1

78.0

600

ACL Risk Based Capital

500

16,000

400

14,000

300

12,000

200

10,000

100

8,000

0 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

Capital and Surplus

1,889.1

Co. Action Level RBC (TAC/(ACL RBC*2))

1,838.4

1,457.3

996.5

944.0

6,000 4,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

2,000

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y -0.90 -1.58 -4.44 23.74 -9.43 100.00 3.74

2009Y -39.79 -2.22 -3.86 33.17 -23.92 100.00 2.29

2010Y -92.18 -2.29 -3.73 NM NM 100.00 0.20

2011Y -20.00 -0.04 -2.29 2.60 -0.59 100.00 0.26

2012L2 0.00 NA NA 2.90 NA NA 0.26

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

RBC - Total Adjusted Capital

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 14,213 14,213 488 2,914.61 1,457.30 0 19 0 0.00 3.65 16.14 -0.09

2009Y 13,945 13,945 369 3,778.23 1,889.12 -12 -51 0 0.00 4.47 9.84 0.00

2010Y 2010Y 12,444 12,444 338 3,676.85 1,838.43 -146 111 0 0.00 3.65 16.54 0.00

2011Y 2011Y 7,654 7,654 405 1,888.08 944.04 155 214 -5,000 NM 4.08 22.33 -0.42

2012L2 7,663 NA NA NA NA 72 117 0 0.00 7.08 23.24 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Natl Svc Contract Ins Co. RRG (Washington, DC) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

8,864 0 0 0 0 0 0 0 0 0 5,227 0 14,091 7 989 529 0 16,508

3,612 0 580 0 0 0 0 0 0 0 10,010 0 14,201 116 87 405 0 15,317

6,705 0 661 0 0 0 0 0 0 0 6,643 0 14,008 49 87 282 0 14,503

2,318 0 226 0 0 0 0 0 0 0 6,656 0 9,200 0 88 40 0 9,363

2,234 0 177 0 0 0 0 0 0 0 6,661 0 9,073 0 88 52 0 9,444

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

531 0 531 1,638 13 112 0 0 2,294

320 0 320 946 0 106 0 0 1,372

25 0 25 1,873 0 161 0 0 2,059

20 0 20 1,422 33 235 0 0 1,709

20 0 20 1,490 0 271 0 0 1,781

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

30 0 0 10,061 4,122 14,213

30 0 0 9,792 4,122 13,945

30 0 0 8,292 4,122 12,444

30 0 0 3,501 4,122 7,654

30 0 0 3,510 4,122 7,663

Total Liabilities and C&S

16,508

15,317

14,503

9,363

9,444

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 504 0 19 14,091 0 9,731 0 0 0 0

2009Y 134 -12 12 -51 14,201 0 3,612 0 580 0 0

2010Y 287 -146 146 111 14,008 0 6,705 0 661 0 0

2011Y 175 155 214 9,200 0 2,318 0 226 0 0

2012L2 35 72 117 9,073 0 2,234 0 177 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 638 0 638

0 748 0 748

0 622 0 622

0 501 0 501

0 655 NA 655

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-125 513 -1,820 2,332

-119 629 -692 1,321

-117 505 926 -422

-111 390 -451 841

-110 545 -144 689

0 1,475 0 1,475 0 0 -5 0 0 -5 1,470 1,031 0 0 -168 0 2,501

0 1,231 0 1,231 0 0 -211 0 0 -211 1,020 797 0 0 -496 0 1,817

0 643 0 643 0 0 -295 0 0 -295 349 716 -1,522 0 35 0 -457

0 251 0 251 0 0 -5 0 0 -5 246 864 32 0 -302 0 1,143

NA NA NA NA NA NA NA NA NA NA 172 923 0 0 -406 0 1,094

504 0 0 0 335 -30 366

134 -12 0 0 -373 -176 -197

287 -146 0 0 177 100 77

175 155 0 0 28 0 28

35 72 0 0 -299 0 -299

335 2,836 1,021

-361 1,444 803

323 -280 660

-127 1,171 819

-371 795 NA

2007Y

2008Y

2009Y

2010Y

2011Y

5,552 0

9,731 0

3,612 0

6,705 0

2,318 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 25.2%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 2.5%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Texas - 21.8% Washington - 4.7%

Arizona - 10.6%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Colorado - 4.8%

Nevada - 4.2%

2008Y Other Invstmts - 72.3%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Oth, Prod Liab Cmbnd - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Texas 2. Arizona 3. Colorado 4. Washington 5. Nevada All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 109 53 24 23 21 270 2008Y 0.00 4.02 1,593 -3.46

Rank and LOBs 1. Oth, Prod Liab Cmbnd 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 -23.15 638 -0.41

2010Y 0.00 -22.95 748 -33.46

DPW ($000) 501 0 0 0 0 0 2011Y 0.00 -13.34 622 NM

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -18.68 501 0.00

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

2,751 0 0 0

5,164 0 0 0

2,435 0 0 633

0 5,341 0 0

1,802 67 0 448

Carr Value 2,318 226 0 2,544

Fair Value 2,318 226 0 2,544

Actual Cost 2,128 228 0 2,356

Par Value 2,185 --2,185

Total 8,948 680 0 --

2008Y 1.00 0.00 0.00 62.90 0.00 0.00 0.00 37.10 0.00 NA 0.00 0.00 0.00 0.04 5.99 5.40 3.21 85.36 3.05

2009Y 1.00 0.00 0.00 25.43 4.16 4.08 0.00 70.48 0.00 NA 0.00 0.00 0.00 0.76 0.57 3.31 2.65 92.72 0.88

2010Y 1.00 0.00 0.00 47.86 5.31 4.72 0.00 47.42 0.00 NA 0.00 0.00 0.00 0.34 0.60 0.53 1.94 96.59 1.98

2011Y 1.00 0.00 0.00 25.19 2.96 2.46 0.00 72.35 0.00 NA 0.00 0.00 0.00 0.00 0.93 0.38 0.43 98.26 1.87

2012L2 1.00 0.00 0.00 24.63 2.32 1.96 0.00 73.42 0.00 NA 0.00 0.00 0.00 0.00 0.93 2.45 0.55 96.07 0.37

6 - The Securities and Bond section are held at carrying value


NY Hlthcr Ins Co. Inc. A RRG (Washington, DC) Address and Geographic 1001 Pennsylvania Avenue, NW Suite 400 South Washington, DC 20004-2505 MSA: Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 12275 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Northeastern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-2487981 Distribution Channel: Direct Response

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Katie Gray Phone : (800) 226-0793 Fax : (941) 906-7538 Email : kgray@pboa.com

Direction -----

Watch/Outlook Not Covered by SNL ----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

2008Y 9,693 2,469 7,224 5 3,378

2009Y 12,886 2,587 10,298 -225 3,983

2010Y 14,733 3,068 11,665 263 4,233

2011Y 14,178 3,195 10,983 13 5,868

2012L2 15,571 3,414 12,157 -104 6,185

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

5,131 3,549 3,288 4,853 104.10 -1.22 1.44

5,251 4,061 3,894 7,736 160.02 -8.63 1.57

5,464 4,390 4,113 9,259 209.40 11.09 1.43

6,485 6,098 5,713 9,265 145.92 -2.23 1.91

7,742 6,829 6,023 10,382 152.19 -7.88 2.00

Liquidity

OFFICERS & ADVISORS Auditor Shores Tagman Butler & Co P.A. Actuary Milliman Inc. CEO Robert Schuck CFO Robert Schuck President Robert Schuck

Total Assets

Total Liabilities

16,000

161.0

155.0

149.0

14,000

2008Y 2.40 2.51 0.22 0.06 66.24 34.56 58.41 100.80 98.09 2.71 0.00

Profitability Ratios

2009Y 1.52 2.19 -8.68 -1.98 70.29 36.20 35.61 106.49 104.20 2.28 0.00

2010Y 1.64 2.73 9.93 1.91 51.38 41.58 44.70 92.97 90.06 2.91 0.00

2011Y 1.85 2.55 0.39 0.10 66.09 33.06 38.52 101.77 99.06 2.72 2.63

2012L2 1.76 2.37 -3.12 -0.72 75.81 25.38 48.73 103.67 100.98 2.69 2.49

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

15.00 106.5

10.00

103.7 101.8

100.8

5.00

122.0

121.0

12,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

Liabilities / Liquid Assets (IRIS Ratio)

18,000

10,000 8,000 6,000 4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 62.05 62.05 181.50 161.00 0.00 94.99 1,711 1,796 223.68 223.68 -0.70

2009Y 66.90 66.90 266.29 149.00 0.00 94.54 1,986 2,065 206.06 206.86 -2.28

2011Y 2010Y 26.01 65.24 98.91 155.00 0.00 93.70 300 429 112.40 112.35 -0.12

2012L2 2011Y 29.37 82.56 100.96 121.00 0.00 112.02 1,447 1,333 136.42 135.10 -1.14

2012L2 32.58 81.76 116.02 122.00 0.00 74.87 1,087 1,130 125.19 121.09 -0.43

0.00 93.0

-5.00 -10.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 7.83 14.44 0.00 4.18 15.94 5,131 2,178 1,227 -116 69.17 NM -0.81

2009Y 34.69 13.36 0.00 3.77 19.07 5,251 2,738 1,470 -313 77.33 NM -5.62

2010Y 6.68 12.81 0.00 3.60 25.16 5,464 2,113 1,825 174 80.33 11.27 6.95

2011Y 27.57 10.54 0.00 2.97 19.55 6,485 3,776 2,016 -79 94.04 NM -1.25

2012L2 27.07 NA NA NA NA NA 4,566 1,733 -276 NA NM -4.26

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 2,620 69.17 17.33 0.00 0 0

2009Y 3,045 77.33 17.41 0.00 0 0

2010Y 3,901 80.33 17.38 0.00 0 0

2011Y 4,291 94.04 16.62 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

8,000

GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

7,000 80.3

77.3

2008Y 48.16 59.11 16.99 NM -85.44 119.52 24.71 148.84 26.90 79.45

2009Y 32.94 42.57 14.42 NM NM 59.41 2.35 116.49 20.96 66.48

2010Y 14.34 13.27 8.10 NM NM 19.69 4.05 90.19 20.48 54.43

2011Y 203 191 39* NA 95 1.9* 4 -5 121* 71* 30* 34* 130*

2011Y -3.77 -5.85 38.92 NM -95.06 0.06 18.67 45.53 16.01 34.65

2012L2 21.99 27.05 29.70 NM NM 28.09 24.21 35.30 14.18 28.53

Capital + Capital Ratios

94.0

6,000

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --203 178 NPW to Policyholders' Surplus 300 --157 143 Change in Net Premiums Written 33 -33 14 8 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --101* 97 Investment Yield 6.5 3 1.6* 1.7* Gross Change in Policyholders' Surplus 50 -10 5 19 Net Change in Adj Policyholders' Surplus 25 -10 -9 11 Liabilities to Liquid Assets 100 --149* 155* Agents' Bal to Policyholders' Surplus 40 --59* 79* 1-Yr Resv Dev to Policyholders' Surplus 20 --17 -4 2-Yr Resv Dev to Policyholders' Surplus 20 ---27 -15 Est Curr Resv Defi/Policyholders' Surplus 25 ---99 -79 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio.

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

69.2

5,000

3,500

4,000

3,000

3,000

259.5

2,500

2,000

178.4

2,000

1,000 0 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

153.4

1,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 119.52 -24.82 -24.20 104.10 -15.11 9.18 196.52

2009Y 59.41 16.77 -26.62 160.02 10.63 20.67 298.99

2010Y 19.69 -4.06 -15.35 209.40 -2.55 17.69 301.82

2011Y 0.06 30.48 34.32 145.92 16.37 27.70 289.95

2012L2 28.09 NA NA 152.19 NA NA 304.10

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

164.3 142.2

1,500

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 2,469 2,469 692 356.81 178.41 0 0 0 0.00 158.91 292.53 106.10

2009Y 2,587 2,587 910 284.33 142.16 0 0 0 0.00 156.55 398.04 117.69

2010Y 2010Y 3,068 3,068 934 328.61 164.31 3 12 0 0.00 165.66 380.25 127.16

2011Y 2011Y 3,195 3,195 1,042 306.71 153.35 53 72 0 0.00 184.74 343.72 134.29

2012L2 3,414 NA NA NA NA 60 64 0 0.00 204.24 356.10 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


NY Hlthcr Ins Co. Inc. A RRG (Washington, DC) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 4,482 0 4,482 1,326 1,190 2,695 0 9,693

0 0 0 0 0 0 0 0 0 0 6,890 0 6,890 1,536 1,639 2,821 0 12,886

3,293 0 1,190 0 0 0 0 0 0 0 3,034 0 7,518 2,413 1,822 2,981 0 14,733

4,446 0 1,373 0 0 0 0 0 0 0 3,226 0 9,044 2,261 29 2,844 0 14,178

4,219 18 1,753 0 0 0 0 0 0 0 3,961 0 9,950 2,644 0 2,977 0 15,571

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

3,932 921 4,853 2,624 -617 350 0 15 7,224

5,785 1,951 7,736 2,773 -610 400 0 0 10,298

7,813 1,446 9,259 2,928 -1,406 754 0 131 11,665

7,483 1,782 9,265 2,640 -2,235 1,242 0 72 10,983

8,644 1,737 10,382 2,908 -2,009 876 0 0 12,157

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

2,537 0 0 -68 0 2,469

2,812 0 0 -293 69 2,587

3,017 0 0 -18 69 3,068

3,293 0 0 -162 65 3,195

3,416 0 0 -67 65 3,414

Total Liabilities and C&S

9,693

12,886

14,733

14,178

15,571

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 89 0 0 4,482 0 0 0 0 0 0

2009Y 89 0 0 6,890 0 0 0 0 0 0

2010Y 120 3 12 7,518 0 3,386 0 1,190 0 0

2011Y 155 53 72 9,044 0 4,469 0 1,373 0 0

2012L2 162 60 64 9,950 0 4,226 18 1,753 0 0

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 5,131 0 5,131

0 5,251 0 5,251

0 5,464 0 5,464

0 6,485 0 6,485

0 7,742 NA 7,742

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-1,582 3,549 261 3,288

-1,191 4,061 166 3,894

-1,075 4,390 277 4,113

-386 6,098 385 5,713

-912 6,829 806 6,023

0 5 0 5 170 0 1,916 0 88 2,003 2,178 1,227 0 0 -116 0 3,405

0 40 0 40 264 0 1,347 0 1,087 2,434 2,738 1,470 0 0 -313 0 4,207

0 68 0 68 705 0 1,771 0 -430 1,341 2,113 1,825 0 0 174 0 3,939

0 961 0 961 987 0 1,240 0 587 1,827 3,776 2,016 0 0 -79 150 5,791

NA NA NA NA NA NA NA NA NA NA 4,566 1,733 0 0 -276 150 6,299

89 0 0 0 -27 -32 5

89 0 0 0 -224 1 -225

120 3 0 0 297 33 263

155 53 0 0 -20 -33 13

162 60 0 0 -204 -99 -104

-27 3,378 1,362

-224 3,983 1,833

294 4,235 2,365

-74 5,921 3,008

-264 6,245 NA

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

3,348 38

4,410 59

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 49.2%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 15.2%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

New York - 100.0% Arkansas - 0.0%

Alaska - 0.0%

Top Lines of Business by DPW - 2011Y Med Prof Liab - 75.0%

Oth, Prod Liab Cmbnd - 25.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

All Other - 0.0%

Alabama - 0.0%

Arizona - 0.0%

2009Y Mortgage Loans - 0.0%

2008Y Other Invstmts - 35.7%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000) LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. New York 2. Alaska 3. Alabama 4. Arkansas 5. Arizona All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 6,485 0 0 0 0 0 2008Y 0.00 NA 4,114 45.81

Rank and LOBs 1. Med Prof Liab 2. Oth, Prod Liab Cmbnd 3. Total Cmbnd A&H 4. Aircraft 5. Comm'l Auto St All Other 2009Y 0.00 NA 5,131 47.02

2010Y 0.00 NA 5,251 37.10

DPW ($000) 4,863 1,621 0 0 0 0 2011Y 0.00 52.57 5,464 39.47

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 33.10 6,485 28.25

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

1,062 0 0 0

1,294 0 0 0

Carr Value 4,446 1,373 0 5,818

Fair Value 4,446 1,373 0 5,818

Actual Cost 4,343 1,371 0 5,715

Par Value 4,143 --4,143

Total 17,378 4,117 0 --

2008Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 13.68 12.28 0.00 27.80 46.24 0.92

2009Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 11.92 12.72 0.00 21.89 53.47 0.69

2010Y 1.01 0.00 0.00 43.81 38.80 15.83 0.00 40.36 0.00 NA 0.00 0.00 0.00 16.38 12.36 0.00 20.23 51.03 0.81

2011Y 1.01 0.00 0.00 49.15 42.96 15.18 0.00 35.67 0.00 NA 0.00 0.00 0.00 15.95 0.21 0.00 20.06 63.79 1.09

2012L2 1.01 0.00 0.00 42.40 51.35 17.62 0.53 39.80 0.00 NA 0.00 0.00 0.00 16.98 0.00 0.00 19.12 63.90 1.04

6 - The Securities and Bond section are held at carrying value


Paratransit Ins Co. A Mutl RRG (Memphis, TN) Address and Geographic 1000 Ridgeway Loop Road Memphis, TN 38120-4045

Business Profile NAIC Company Code : 44130 Business Focus : Commercial Property Focus Geographic Focus: National NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 36-3584321 Distribution Channel: Direct Response, Independent Agency

MSA: Memphis, TN-MS-AR (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating A----

Date 02/01/10 ----

STATUTORY CONTACT INFORMATION Name : Anita M. Perkins Phone : (802) 371-2219 Fax : (802) 371-2225 Email : aperkins@usarisk.com

Direction Upgrade ----

Watch/Outlook Not Covered by SNL ----

2008Y 3.72 24.29 1.83 0.63 40.46 37.01 31.61 98.94 74.29 24.64 21.48

Profitability Ratios

2009Y 3.68 24.19 3.31 1.17 49.27 39.09 41.62 110.97 85.98 24.99 22.60

2010Y 3.41 24.12 5.51 2.08 45.90 28.99 42.28 111.30 87.27 24.03 36.41

2011Y 3.02 20.37 6.80 2.70 22.09 29.73 17.46 94.58 73.48 21.10 42.76

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

98.9 94.6

94.6

2.00 1.00 0.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 8.85 1.33 0.00 7.72 27.96 4,197 1,130 1,049 615 67.54 62.61 20.19

2009Y 7.65 1.46 0.00 6.30 31.34 4,304 1,308 1,072 274 63.73 32.43 9.94

2010Y 3.62 1.67 0.00 4.73 22.59 4,162 1,261 793 693 65.74 19.08 10.29

2011Y 4.63 1.77 0.00 6.30 21.65 4,570 646 900 1,377 66.26 29.77 21.14

2012L2 5.14 NA NA NA NA NA 700 885 1,406 NA 29.65 20.25

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 5,577 67.54 0.00 0.00 0 0

2009Y 5,877 63.73 0.00 0.00 0 0

2010Y 4,465 65.74 0.00 0.00 0 0

2011Y 5,444 66.26 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

5,000 4,500 4,000

2012L2 23,269 9,741 13,528 609 3,555

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

4,197 2,835 2,794 10,430 400.69 10.10 0.44

4,304 2,743 2,655 10,275 391.87 4.67 0.34

4,162 2,736 2,747 10,200 389.52 4.36 0.32

4,570 3,028 2,923 10,200 366.83 8.44 0.33

4,597 3,015 2,991 10,199 353.75 7.78 0.31

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

62.0

2012L2 2.67 18.52 6.59 2.66 23.41 29.36 18.27 94.56 75.89 18.67 41.79

5.00

3.00

2011Y 23,250 9,170 14,080 604 3,546

65.0

6.00

4.00

2010Y 22,091 8,552 13,539 442 3,404

20,000

111.3

111.0

2009Y 21,244 8,003 13,240 233 3,309

25,000

8.00 7.00

2008Y 19,484 6,474 13,010 128 3,482

Liquidity

OFFICERS & ADVISORS Auditor Faulkner Mackie & Cochran P.C. Actuary -CEO -CFO -President William Hamilton Smythe III

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

15,000 59.0 58.0

10,000

57.0

5,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 1.64 135.32 3.30 65.00 0.00 195.55 119 -189 104.62 82.20 14.07

2009Y 8.00 144.48 13.23 62.00 0.00 209.56 202 252 106.85 90.59 19.28

2011Y 2010Y 15.69 153.21 24.84 59.00 0.00 211.37 1,003 1,074 162.28 120.76 20.38

2012L2 2011Y 15.22 153.19 23.37 58.00 0.00 223.87 983 390 164.39 111.33 21.39

2012L2 19.20 164.95 26.66 57.00 0.00 187.43 907 217 138.25 107.76 23.46

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --54 49 NPW to Policyholders' Surplus 300 --34 32 Change in Net Premiums Written 33 -33 -3 0 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --80 87 Investment Yield 6.5 3 3.7 3.4 Gross Change in Policyholders' Surplus 50 -10 24 7 Net Change in Adj Policyholders' Surplus 25 -10 21 5 Liabilities to Liquid Assets 100 --62 59 Agents' Bal to Policyholders' Surplus 40 --0 0 1-Yr Resv Dev to Policyholders' Surplus 20 ---25 -18 2-Yr Resv Dev to Policyholders' Surplus 20 ---38 -41 Est Curr Resv Defi/Policyholders' Surplus 25 ---26 -21 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y -6.69 -4.25 6.25 122.89 -61.31 -3.09 1.21 3.99 3.96 3.98

2009Y 9.03 1.77 -3.24 -53.21 82.63 -1.49 2.55 2.19 5.98 3.52

2010Y 3.99 2.26 -0.25 6.43 89.81 -0.73 -3.31 1.80 5.91 3.28

2011Y 50 33 11 NA 79 3* 7 6 58 0 -22 -40 -20

2011Y 5.25 3.99 10.69 114.14 36.59 0.00 9.82 1.33 5.78 2.95

2012L2 3.40 0.84 6.35 117.82 35.74 -7.78 10.05 -0.42 6.87 2.27

Capital + Capital Ratios 67.5

66.3

65.7

63.7

ACL Risk Based Capital

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

3,500 3,000 2,500

10,000 9,000

2,000

8,000 7,000

1,500

6,000 5,000

1,000 500 0 2008Y

2009Y

2010Y

2011Y

629.9

2010Y

2011Y

452.6 402.6

4,000 3,000

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y -3.09 -12.15 -36.30 400.69 -31.71 51.55 161.10

2009Y -1.49 -24.51 -37.70 391.87 -59.78 67.89 128.38

2010Y -0.73 -17.96 -40.58 389.52 -52.32 65.20 119.27

2011Y 0.00 -21.54 -39.77 366.83 -63.01 63.56 111.23

2012L2 -7.78 NA NA 353.75 NA NA 104.70

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

643.5 525.1

2,000 1,000 0 2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 6,474 6,474 715 905.12 452.56 -362 -608 0 0.00 40.74 200.95 86.14

2009Y 8,003 8,003 762 1,050.21 525.11 16 455 0 0.00 38.89 165.43 73.43

2010Y 8,552 8,552 665 1,286.96 643.48 197 145 0 0.00 34.08 158.32 52.21

2011Y 9,170 9,170 728 1,259.89 629.95 111 -32 0 0.00 34.09 153.54 59.37

2012L2 9,741 NA NA NA NA 146 -117 0 0.00 32.60 138.88 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Paratransit Ins Co. A Mutl RRG (Memphis, TN) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

13,899 0 3,492 0 0 0 0 0 0 0 214 0 17,605 1,451 0 428 0 19,484

14,461 0 3,183 0 0 0 0 0 0 0 1,059 0 18,702 1,586 508 447 0 21,244

14,594 0 3,427 0 0 0 0 0 0 0 2,125 0 20,146 1,548 0 398 0 22,091

14,861 0 3,853 0 0 0 0 0 0 0 2,143 0 20,857 1,871 19 504 0 23,250

14,732 0 4,235 0 0 0 0 0 0 0 2,597 0 21,564 1,164 0 541 0 23,269

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

10,143 288 10,430 1,424 -121 216 0 1,060 13,010

10,011 265 10,275 1,454 448 164 0 898 13,240

10,028 172 10,200 1,443 336 174 0 1,385 13,539

9,989 211 10,200 1,548 319 213 0 1,800 14,080

10,065 133 10,199 1,306 7 181 0 1,834 13,528

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

0 0 0 2,741 3,734 6,474

0 0 0 4,095 3,908 8,003

0 0 0 4,502 4,050 8,552

0 0 0 4,974 4,196 9,170

0 0 0 5,459 4,282 9,741

19,484

21,244

22,091

23,250

23,269

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 689 -362 362 -608 17,605 0 13,899 0 3,492 0 0

2009Y 663 16 455 18,702 0 14,888 0 3,183 0 0

2010Y 660 197 145 20,146 0 15,193 0 3,427 0 0

2011Y 617 111 -32 20,857 0 15,573 0 3,853 0 0

2012L2 558 146 -117 21,564 0 15,482 0 4,235 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Total Liabilities and C&S Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 4,197 0 4,197

0 4,304 0 4,304

0 4,162 0 4,162

0 4,570 0 4,570

0 4,597 NA 4,597

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-1,362 2,835 41 2,794

-1,561 2,743 88 2,655

-1,426 2,736 -11 2,747

-1,542 3,028 105 2,923

-1,582 3,015 24 2,991

0 1,201 0 1,201 262 0 -318 0 -15 -333 1,130 1,049 0 0 615 600 2,179

0 1,237 0 1,237 226 0 -132 0 -23 -155 1,308 1,072 0 0 274 600 2,380

0 1,143 0 1,143 192 0 18 0 -93 -75 1,261 793 0 0 693 1,000 2,054

0 550 0 550 96 0 -40 0 40 0 646 900 0 0 1,377 1,250 1,546

NA NA NA NA NA NA NA NA NA NA 700 885 0 0 1,406 1,250 1,586

689 -362 0 0 341 214 128

663 16 0 -9 345 112 233

660 197 0 -3 547 104 442

617 111 0 6 860 256 604

558 146 0 6 866 257 609

703 3,121 1,324

329 3,325 1,411

350 3,601 1,041

750 3,657 1,061

720 3,701 NA

2007Y

2008Y

2009Y

2010Y

2011Y

14,313 0

13,797 102

14,888 0

15,193 0

14,903 670

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 71.3%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 18.5%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Virginia - 13.6% Missouri - 8.2%

Utah - 12.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Multi Prl - 0.0%

Fidelity & Surety - 0.0%

All Other - 0.0%

Kentucky - 9.4%

Ohio - 7.8%

2008Y Other Invstmts - 10.3%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Comm'l Auto St - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Virginia 2. Utah 3. Kentucky 4. Missouri 5. Ohio All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 620 547 430 373 355 2,244 2008Y 0.00 2.45 4,147 -11.25

Rank and LOBs 1. Comm'l Auto St 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Multi Prl 5. Fidelity & Surety All Other 2009Y 0.00 3.86 4,197 30.53

DPW ($000) 4,570 0 0 0 0 0 2010Y 0.00 0.53 4,304 57.77

2011Y 0.00 0.81 4,162 23.51

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 1.06 4,570 47.80

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 50 0

0 0 39 0

Carr Value 14,861 3,853 0 18,714

Fair Value 16,060 3,853 0 19,913

Actual Cost 15,008 3,192 0 18,199

Par Value 14,486 --14,486

Total 60,415 10,898 0 --

2008Y 1.01 0.00 0.00 78.95 53.94 19.84 0.00 1.21 0.00 NA 0.00 0.00 0.00 7.45 0.00 0.00 2.20 90.35 3.53

2009Y 1.00 0.00 0.00 77.32 39.77 17.02 0.00 5.66 0.00 NA 0.00 0.00 0.00 7.47 2.39 0.00 2.11 88.04 3.12

2010Y 1.00 0.00 0.00 72.45 40.07 17.01 0.00 10.55 0.00 NA 0.00 0.00 0.00 7.01 0.00 0.00 1.80 91.19 2.99

2011Y 1.04 0.00 0.00 71.25 42.02 18.47 0.00 10.27 0.00 NA 0.00 0.00 0.00 8.05 0.08 0.00 2.17 89.71 2.65

2012L2 1.04 0.00 0.00 68.32 43.48 19.64 0.00 12.04 0.00 NA 0.00 0.00 0.00 5.00 0.00 0.00 2.33 92.67 2.40

6 - The Securities and Bond section are held at carrying value


PCH Mutual Ins Co. Inc. A RRG (Sarasota, FL) Address and Geographic 1605 Main Street Suite 800 Sarasota, FL 34236-5823 MSA: North Port-Bradenton-Sarasota, FL (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 11973 Business Focus : Commercial General Liability Focus Geographic Focus: National NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-1065673 Distribution Channel: Direct Response

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Teresa Marie Matthews Phone : (941) 955-0793 Fax : (941) 366-1076 Email : tmatthews@pboa.com

Direction -----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook Not Covered by SNL ----

Liquidity

OFFICERS & ADVISORS Auditor Saslow Lufkin & Buggy LLP Actuary Milliman Inc. CEO -CFO Troy Winch President Edgar Blumenfeld 2008Y 2.47 4.31 4.80 1.56 46.63 53.80 26.87 100.43 96.26 4.17 0.00

Profitability Ratios

2009Y 1.08 1.79 -65.61 -15.70 120.52 35.14 79.39 157.90 156.07 1.84 2.24

2010Y 0.89 2.92 28.15 4.92 41.77 41.00 22.45 83.29 80.94 2.35 0.52

2011Y 0.67 2.28 1.26 0.36 57.27 46.82 42.97 104.10 101.85 2.25 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 0.81 2.42 1.97 0.60 52.69 44.52 16.90 97.21 94.54 2.67 0.00

157.9

0.00 104.1

100.4

-20.00

97.2

83.3

-40.00 -60.00 -80.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 19.76 19.37 0.00 4.32 30.11 4,694 1,790 1,997 52 79.06 34.55 5.30

2009Y 41.13 15.93 0.00 2.34 16.86 4,834 5,285 1,445 -2,485 93.30 NM -56.04

2010Y 19.32 26.51 0.00 5.44 9.05 3,561 1,266 1,143 761 68.70 33.99 26.34

2011Y 14.30 20.34 0.00 4.56 21.92 3,009 1,322 1,067 -81 75.77 -715.67 -1.24

2012L2 35.79 NA NA NA NA NA 1,198 1,113 -37 NA -107.97 1.00

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 1,497 79.06 19.84 0.00 0 0

2009Y 1,688 93.30 19.96 0.00 0 0

2010Y 1,640 68.70 20.00 0.00 0 0

2011Y 1,121 75.77 20.61 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

6,000

2011Y 8,566 2,538 6,028 32 2,360

2012L2 7,951 2,722 5,229 51 2,335

4,694 3,711 3,838 3,631 83.08 7.33 1.23

4,834 4,510 4,385 7,049 118.56 -98.51 2.62

3,561 2,447 3,030 6,119 231.21 42.83 0.97

3,009 2,280 2,308 4,187 215.71 -1.15 0.90

3,298 2,501 2,274 3,851 194.75 0.89 0.92

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

119.0 96.0

94.0 81.0

75.0

6,000 4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 10.19 104.20 22.85 96.00 0.00 142.41 1,087 760 145.35 165.55 10.02

2009Y 41.17 122.18 227.59 119.00 0.00 102.29 693 487 123.83 125.85 -4.98

2011Y 2010Y 69.17 130.39 215.59 94.00 0.00 128.91 -663 202 82.42 60.85 0.98

2012L2 2011Y 32.49 137.38 77.17 81.00 0.00 155.75 -862 -903 76.14 78.85 0.77

2012L2 19.33 149.92 37.14 75.00 0.00 137.38 -493 -497 84.40 86.24 2.73

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --281 141 NPW to Policyholders' Surplus 300 --262 97 Change in Net Premiums Written 33 -33 22 -46* Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --126* 125* Investment Yield 6.5 3 1.1* 0.9* Gross Change in Policyholders' Surplus 50 -10 -43* 47 Net Change in Adj Policyholders' Surplus 25 -10 -51* 38* Liabilities to Liquid Assets 100 --119* 94 Agents' Bal to Policyholders' Surplus 40 --24 6 1-Yr Resv Dev to Policyholders' Surplus 20 --73* -49 2-Yr Resv Dev to Policyholders' Surplus 20 --69* 72* Est Curr Resv Defi/Policyholders' Surplus 25 ---48 -67 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 21.87 22.72 -8.66 -73.93 -74.18 49.62 -7.95 86.84 51.24 71.46

2009Y 14.46 40.17 21.54 NM NM 94.12 2.99 76.40 24.36 58.15

2010Y -7.59 -17.38 -45.76 NM NM -13.19 -26.33 56.52 24.94 44.20

2011Y 119 90 -7 NA 94 0.7* 1 -1 81 7 -7 -53 -12

2011Y -17.42 -23.24 -6.82 NM -94.03 -31.57 -15.51 15.94 13.67 15.24

2012L2 -5.05 -9.05 19.55 -97.46 -91.92 -21.40 9.29 9.18 10.13 9.50

Capital + Capital Ratios

93.3

5,000

2010Y 10,373 2,520 7,853 537 3,102

Total Assets

10,000

40.00 20.00

2009Y 11,225 1,720 9,505 -1,667 4,466

12,000

8,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 9,806 3,025 6,781 139 3,998

79.1

ACL Risk Based Capital

75.8

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

68.7

4,000

3,500

3,000

3,000

2,000

175.6 163.5 148.9

2,500

140.1

2,000

1,000 0 2008Y

2009Y

2010Y

2011Y

1,500

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 49.62 30.47 -4.50 83.08 20.01 15.50 120.04

2009Y 94.12 73.52 68.80 118.56 50.71 23.16 409.90

2010Y -13.19 -48.97 72.06 231.21 -27.79 21.52 242.85

2011Y -31.57 -6.79 -53.11 215.71 -7.41 25.96 164.99

2012L2 -21.40 NA NA 194.75 NA NA 141.47

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

81.4

1,000

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 3,025 3,025 1,016 297.80 148.90 0 -31 0 0.00 128.38 224.18 49.49

2009Y 1,720 1,720 1,056 162.83 81.42 -1 125 0 0.00 177.54 552.76 98.16

2010Y 2010Y 2,520 2,520 899 280.16 140.08 -4 124 0 0.00 128.27 311.69 65.09

2011Y 2011Y 2,538 2,538 776 327.08 163.54 33 -67 0 0.00 89.46 237.51 44.17

2012L2 2,722 NA NA NA NA 1 -16 0 0.00 95.54 192.08 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


PCH Mutual Ins Co. Inc. A RRG (Sarasota, FL) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

866 0 5,509 0 0 0 0 0 0 0 691 0 7,066 290 1,069 1,381 0 9,806

1,999 0 2,058 0 0 0 0 0 0 0 3,914 0 7,970 409 583 2,262 0 11,225

1,022 0 1,897 0 0 0 0 0 0 0 5,432 0 8,351 147 1,112 763 0 10,373

3,675 0 1,792 0 0 0 0 0 0 0 1,958 0 7,425 181 326 634 0 8,566

4,040 0 1,938 0 0 0 0 0 0 0 1,011 0 6,988 252 114 597 0 7,951

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

2,903 729 3,631 2,382 167 602 0 0 6,781

4,968 2,081 7,049 2,393 -624 547 0 140 9,505

3,938 2,181 6,119 1,632 -226 319 0 9 7,853

2,409 1,778 4,187 1,300 278 263 0 0 6,028

1,935 1,916 3,851 1,235 -113 238 0 16 5,229

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

0 0 0 983 2,042 3,025

0 0 0 -559 2,279 1,720

0 0 0 101 2,418 2,520

0 0 0 66 2,472 2,538

0 0 0 217 2,506 2,722

Total Liabilities and C&S

9,806

11,225

10,373

8,566

7,951

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 160 0 -31 7,066 0 866 0 5,509 0 0

2009Y 81 -1 1 125 7,970 0 5,642 0 2,058 0 0

2010Y 71 -4 4 124 8,351 0 2,911 0 1,897 0 0

2011Y 52 33 -67 7,425 0 4,531 0 1,792 0 0

2012L2 61 1 -16 6,988 0 4,890 0 1,938 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 4,694 0 4,694

0 4,834 0 4,834

0 3,561 0 3,561

0 3,009 0 3,009

0 3,298 NA 3,298

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-983 3,711 -127 3,838

-324 4,510 125 4,385

-1,115 2,447 -584 3,030

-729 2,280 -28 2,308

-797 2,501 226 2,274

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 517 0 517 429 0 514 0 329 843 1,790 1,997 0 0 52 0 3,786

0 858 0 858 524 0 2,623 0 1,280 3,903 5,285 1,445 140 0 -2,485 98 6,870

0 2,102 0 2,102 546 0 -1,422 0 39 -1,382 1,266 1,143 -140 0 761 16 2,269

0 1,768 0 1,768 450 0 -776 0 -120 -896 1,322 1,067 0 0 -81 0 2,389

NA NA NA NA NA NA NA NA NA NA 1,198 1,113 0 0 -37 0 2,312

160 0 0 0 212 73 139

81 -1 0 0 -2,504 -837 -1,667

71 -4 0 0 813 276 537

52 33 0 0 4 -28 32

61 1 0 0 25 -27 51

212 3,998 1,880

-2,503 4,465 2,056

817 3,098 1,750

-29 2,393 1,614

23 2,337 NA

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

866 0

5,642 0

2,911 0

4,531 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 49.5%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 24.1%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Washington - 24.9% Oregon - 5.5%

Pennsylvania - 22.8%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Michigan - 6.6%

Maryland - 5.2%

2008Y Other Invstmts - 26.4%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Oth, Prod Liab Cmbnd - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Washington 2. Pennsylvania 3. Michigan 4. Oregon 5. Maryland All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 748 685 199 165 157 1,055 2008Y 0.00 NA 5,099 27.91

Rank and LOBs 1. Oth, Prod Liab Cmbnd 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 4,694 28.33

2010Y 0.00 40.64 4,834 62.30

DPW ($000) 3,009 0 0 0 0 0 2011Y 0.00 9.79 3,561 27.51

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -0.22 3,009 42.41

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

409 0 0 1,489

407 0 0 508

396 0 0 3,160

Carr Value 3,675 1,792 0 5,467

Fair Value 3,675 1,792 0 5,467

Actual Cost 3,651 1,605 0 5,257

Par Value 3,600 --3,600

Total 14,601 5,189 0 --

2008Y 1.00 0.00 0.00 12.25 182.13 77.97 0.00 9.78 0.00 NA 0.00 0.00 0.00 2.96 10.90 0.00 14.08 72.06 1.63

2009Y 1.00 0.00 0.00 25.08 119.67 25.82 0.00 49.10 0.00 NA 0.00 0.00 0.00 3.64 5.20 0.00 20.15 71.01 0.72

2010Y 1.00 0.00 0.00 12.24 75.29 22.72 0.00 65.04 0.00 NA 0.00 0.00 0.00 1.41 10.72 0.00 7.36 80.51 0.69

2011Y 1.00 0.00 0.00 49.49 70.61 24.13 0.00 26.37 0.00 NA 0.00 0.00 0.00 2.11 3.80 0.00 7.40 86.69 0.61

2012L2 1.00 0.00 0.00 57.80 71.18 27.73 0.00 14.47 0.00 NA 0.00 0.00 0.00 3.17 1.43 0.00 7.51 87.89 0.76

6 - The Securities and Bond section are held at carrying value


Ponce De Leon LTC RRG Inc. (Alpharetta, GA) Address and Geographic 3655 Brookside Parkway Suite 200 Alpharetta, GA 30022-1429 MSA: Atlanta-Sandy Springs-Marietta, GA (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 11809 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Southern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 02-0650614 Distribution Channel: Direct Response, General Agnt/Managing General Agnt

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Donna K. Dalton Phone : (678) 781-2400 Fax : (678) 781-2450 Email : ddalton@uni-ter.com

Direction -----

Watch/Outlook Not Covered by SNL ----

2008Y 4.19 13.62 7.13 3.07 52.46 42.94 17.63 95.40 82.13 13.27 0.00

Profitability Ratios

2009Y 2.97 10.41 1.71 0.80 41.24 51.26 13.60 92.50 82.30 10.20 0.00

2010Y 2.20 6.62 -5.99 -2.95 79.38 39.91 43.80 119.29 111.94 7.35 0.00

Return on Average Equity (C&S)

2011Y 2.14 7.85 -6.50 -3.04 83.17 50.03 38.13 133.20 126.55 6.64 0.00

2012L2 1.89 7.37 1.37 0.67 58.80 52.23 17.13 111.04 104.34 6.70 0.00

119.3 111.0

2.00

92.5

0.00 -2.00 -4.00 -6.00 -8.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 34.83 1.44 0.00 4.39 37.11 5,607 2,827 2,254 307 93.62 41.86 17.92

2009Y 27.64 11.59 0.00 3.68 36.00 5,191 1,969 2,398 407 90.11 75.66 18.91

2010Y 35.59 5.55 0.00 2.37 31.99 5,597 3,859 2,154 -1,152 96.46 NM -14.63

2011Y 45.04 5.69 0.00 2.68 41.67 4,524 4,091 2,084 -1,256 92.07 NM -17.63

2012L2 41.67 NA NA NA NA NA 2,410 1,946 -258 NA 0.00 0.47

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y -559 93.62 0.00 0.00 0 0

2009Y -144 90.11 0.00 0.00 0 0

2010Y -83 96.46 0.00 0.00 0 0

2011Y 50 92.07 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

6,000 5,000

2012L2 15,236 7,970 7,267 110 4,377

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

5,607 5,249 5,388 6,285 125.08 13.98 0.67

5,191 4,677 4,773 5,524 125.57 12.43 0.51

5,597 5,399 4,861 5,918 113.56 -8.79 0.63

4,524 4,165 4,918 5,249 118.50 -11.41 0.51

4,093 3,725 4,098 5,165 133.45 0.26 0.47

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

64.0

62.0 55.0

59.0 52.0

14,000

4.00 95.4

2011Y 16,789 8,194 8,595 -527 5,249

16,000

133.2

6.00

2010Y 18,727 8,622 10,104 -523 5,246

18,000

Combined Ratio

8.00

2009Y 18,528 9,165 9,363 140 5,385

20,000

Return on Avg Assets

Net Yield on Invested Assets

2008Y 18,355 7,808 10,546 566 6,190

Liquidity

OFFICERS & ADVISORS Auditor Johnson Lambert & Co. LLP Actuary Milliman Inc. CEO -CFO -President Jack Mease Norton

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

12,000 10,000 8,000 6,000 4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 32.90 154.98 44.44 64.00 0.00 177.01 -1,085 -921 82.82 92.18 0.82

2009Y 26.39 181.95 26.96 55.00 0.00 209.58 -418 -98 90.81 98.80 8.03

2011Y 2010Y 12.96 160.80 15.19 62.00 0.00 179.76 -886 -723 84.81 88.87 7.32

2012L2 2011Y 6.17 167.06 6.47 59.00 0.00 190.35 -2,352 -1,746 65.82 62.55 5.12

2012L2 11.41 191.78 10.40 52.00 0.00 198.29 -1,457 -900 69.63 64.92 6.39

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --57 65 NPW to Policyholders' Surplus 300 --51 63 Change in Net Premiums Written 33 -33 -11 15 Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --80 95 Investment Yield 6.5 3 2.9* 2.2* Gross Change in Policyholders' Surplus 50 -10 17 -6 Net Change in Adj Policyholders' Surplus 25 -10 17 -1 Liabilities to Liquid Assets 100 --55 62 Agents' Bal to Policyholders' Surplus 40 --8 13 1-Yr Resv Dev to Policyholders' Surplus 20 ---15 12 2-Yr Resv Dev to Policyholders' Surplus 20 ---20 -8 Est Curr Resv Defi/Policyholders' Surplus 25 ---13 0 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y -4.60 -6.78 -12.66 -23.14 -45.72 -11.45 -12.30 34.45 5.64 17.10

2009Y 0.94 -11.22 -10.89 -8.19 -75.20 -12.12 -7.42 14.51 4.74 9.03

2010Y 1.07 7.92 15.42 NM NM 7.15 7.83 4.91 2.88 3.95

2011Y 55 51 -23 NA 118* 2.1* -5 -6 59 10 2 17 18

2011Y -10.35 -14.94 -22.86 NM NM -11.31 -19.18 -3.57 1.27 -1.39

2012L2 -10.35 -18.85 -30.97 NM NM -12.12 -26.37 -9.37 2.41 -4.27

Capital + Capital Ratios 93.6

96.5

90.1

ACL Risk Based Capital

92.1

4,000 3,000

10,000 9,000

2,000

8,000 7,000

1,000

6,000 5,000

0 2008Y

2009Y

2010Y

2011Y

443.4

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

467.2

476.0

2009Y

2010Y

453.2

368.6

4,000 3,000

0.0 2012L2

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y -11.45 -13.32 -25.82 125.08 -19.60 49.83 80.49

2009Y -12.12 -14.91 -19.86 125.57 -24.38 37.31 60.27

2010Y 7.15 11.96 -7.85 113.56 22.55 54.33 68.64

2011Y -11.31 2.37 17.16 118.50 4.16 53.56 64.06

2012L2 -12.12 NA NA 133.45 NA NA 64.81

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

RBC - Total Adjusted Capital

2,000 1,000 0 2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2008Y 7,808 7,808 881 886.81 443.41 -136 -360 0 0.00 66.12 135.06 -7.16

2009Y 9,165 9,165 981 934.42 467.21 -442 305 0 0.00 57.06 102.16 -1.57

2010Y 8,622 8,622 906 952.06 476.03 -59 394 0 0.00 61.84 117.19 -0.96

2011Y 2011Y 8,194 8,194 904 906.46 453.23 171 4 0 0.00 51.37 104.90 0.61

2012L2 7,970 NA NA NA NA 89 13 0 0.00 46.26 91.18 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Ponce De Leon LTC RRG Inc. (Alpharetta, GA) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

11,831 0 1,043 0 0 0 0 0 0 0 3,470 0 16,344 576 1,007 427 0 18,355

12,828 0 1,737 0 0 0 0 0 0 0 2,471 0 17,036 691 462 339 0 18,528

12,815 0 2,123 0 0 0 0 0 0 0 1,310 0 16,248 1,127 606 747 0 18,727

11,668 0 2,161 0 0 0 0 0 0 0 530 0 14,359 782 537 1,111 0 16,789

10,729 0 2,378 0 0 0 0 0 0 0 829 0 13,936 162 239 899 0 15,236

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

5,348 937 6,285 2,632 739 858 0 32 10,546

4,737 787 5,524 2,536 312 887 0 105 9,363

5,217 701 5,918 3,074 296 816 0 0 10,104

4,441 808 5,249 2,321 317 708 0 0 8,595

4,571 594 5,165 1,863 0 239 0 0 7,267

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

18 0 5,807 151 1,832 7,808

18 0 5,806 1,487 1,853 9,165

19 0 5,358 1,372 1,874 8,622

20 0 5,350 859 1,965 8,194

20 0 4,980 974 1,996 7,970

18,355

18,528

18,727

16,789

15,236

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 715 -136 136 -360 16,344 0 11,831 0 1,043 0 0

2009Y 487 -442 442 305 17,036 0 12,828 0 1,737 0 0

2010Y 357 -59 59 394 16,248 0 12,815 0 2,123 0 0

2011Y 327 171 4 14,359 0 11,668 0 2,161 0 0

2012L2 275 89 13 13,936 0 10,729 0 2,378 0 0

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Total Liabilities and C&S Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 5,607 0 5,607

0 5,191 0 5,191

0 5,597 0 5,597

0 4,524 0 4,524

0 4,093 NA 4,093

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-358 5,249 -139 5,388

-513 4,677 -96 4,773

-198 5,399 538 4,861

-359 4,165 -753 4,918

-367 3,725 -373 4,098

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 1,801 0 1,801 1,839 0 -851 0 38 -813 2,827 2,254 0 0 307 0 5,081

0 1,261 0 1,261 1,469 0 -612 0 -149 -761 1,969 2,398 0 0 407 0 4,366

0 1,648 0 1,648 1,816 0 481 0 -86 395 3,859 2,154 0 0 -1,152 0 6,013

0 2,652 0 2,652 2,108 0 -776 0 107 -669 4,091 2,084 0 0 -1,256 0 6,174

NA NA NA NA NA NA NA NA NA NA 2,410 1,946 0 0 -258 0 4,356

715 -136 0 87 974 408 566

487 -442 0 124 577 437 140

357 -59 0 27 -827 -303 -523

327 171 0 4 -754 -227 -527

275 89 0 4 110 0 110

1,109 6,055 4,134

1,019 4,943 3,888

-768 5,187 4,094

-925 5,420 4,349

21 4,466 NA

2007Y

2008Y

2009Y

2010Y

2011Y

14,804 0

11,831 0

12,828 0

12,815 0

11,668 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 81.3%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 15.1%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Florida - 100.0% Arkansas - 0.0%

Alaska - 0.0%

Top Lines of Business by DPW - 2011Y Med Prof Liab - 70.0%

Oth, Prod Liab Cmbnd - 30.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

All Other - 0.0%

Alabama - 0.0%

Arizona - 0.0%

2009Y Mortgage Loans - 0.0%

2008Y Other Invstmts - 3.7%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000) LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Florida 2. Alaska 3. Alabama 4. Arkansas 5. Arizona All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 4,524 0 0 0 0 0 2008Y 0.00 NA 6,393 22.22

Rank and LOBs 1. Med Prof Liab 2. Oth, Prod Liab Cmbnd 3. Total Cmbnd A&H 4. Aircraft 5. Comm'l Auto St All Other 2009Y 0.00 17.10 5,607 16.48

2010Y 0.00 2.72 5,191 12.25

DPW ($000) 3,167 1,358 0 0 0 0 2011Y 0.00 0.08 5,597 45.72

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 -7.23 4,524 38.57

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 2,412 0

0 0 1,941 0

Carr Value 11,668 2,161 0 13,829

Fair Value 11,842 2,161 0 14,003

Actual Cost 11,719 1,757 0 13,475

Par Value 11,468 --11,468

Total 46,696 6,079 0 --

2008Y 1.00 0.00 0.00 72.39 13.36 6.38 0.00 21.23 0.00 NA 0.00 0.00 0.00 3.14 5.49 0.00 2.33 89.05 3.90

2009Y 1.00 0.00 0.00 75.30 18.96 10.20 0.00 14.50 0.00 NA 0.00 0.00 0.00 3.73 2.49 0.00 1.83 91.95 2.63

2010Y 1.00 0.00 0.00 78.87 24.62 13.07 0.00 8.06 0.00 NA 0.00 0.00 0.00 6.02 3.23 0.00 3.99 86.76 1.91

2011Y 1.00 0.00 0.00 81.26 26.38 15.05 0.00 3.69 0.00 NA 0.00 0.00 0.00 4.66 3.20 0.00 6.61 85.53 1.95

2012L2 1.00 0.00 0.00 76.98 29.84 17.07 0.00 5.95 0.00 NA 0.00 0.00 0.00 1.06 1.57 0.00 5.90 91.47 1.80

6 - The Securities and Bond section are held at carrying value


Premier Physicians Ins Co. (Carson City, NV) Address and Geographic 575 South Saliman Road Carson City, NV 89701-5000

Business Profile NAIC Company Code : 12613 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Western Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 20-3831358 Distribution Channel: Direct Response

MSA: Carson City, NV (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Jessica Contreras Phone : (775) 887-2480 Fax : (775) 887-2481 Email : jessicacontreras@pgmnv.com

Direction -----

Watch/Outlook Not Covered by SNL ----

2008Y 2.04 1.93 -6.64 -2.31 34.10 69.94 13.00 104.04 102.01 2.03 0.00

Profitability Ratios

2009Y 1.32 1.41 12.44 4.19 41.82 44.63 26.33 86.45 84.89 1.55 0.00

2010Y 1.11 2.20 -4.12 -1.24 51.71 54.47 19.85 106.18 104.02 2.16 0.00

2011Y 1.02 1.38 17.81 4.28 52.29 35.87 14.86 88.16 86.59 1.57 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

88.2

86.4

2012L2 1.00 1.58 24.78 6.18 42.06 41.53 8.52 83.58 81.93 1.66 0.00

83.6

10.00 5.00 0.00 -5.00 -10.00 2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 21.10 26.21 0.00 1.12 42.60 5,792 1,882 4,051 -413 100.00 NM -5.34

2009Y 15.48 3.90 9.48 0.58 30.67 6,459 2,453 2,883 531 100.00 35.91 10.44

2010Y 31.86 7.38 19.04 1.13 26.92 6,297 2,162 2,232 -212 65.06 NM -2.86

2011Y 37.43 6.33 12.66 0.81 16.07 7,510 2,960 2,314 387 85.87 0.00 8.28

2012L2 33.54 NA NA NA NA NA 2,363 2,442 813 NA 16.65 15.87

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 511 100.00 0.00 0.00 0 0

2009Y -177 100.00 0.00 0.00 0 0

2010Y -2,433 65.06 0.00 0.00 0 0

2011Y -1,439 85.87 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

8,000 7,000

2011Y 12,692 3,309 9,383 491 5,749

2012L2 12,194 3,299 8,895 744 5,711

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

5,792 5,792 5,521 2,786 45.86 -10.06 1.82

6,459 6,459 5,866 2,979 47.66 19.40 1.93

6,297 4,097 4,181 2,934 87.53 -3.84 1.46

7,510 6,449 5,660 3,952 63.25 17.27 1.95

6,942 5,881 5,618 3,982 69.61 30.21 1.78

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

100.0 98.0

10,000

15.00

2008Y

2010Y 11,467 2,802 8,665 -131 4,272

12,000

106.2

104.0

20.00

2009Y 10,008 3,340 6,667 399 5,957

14,000

30.00 25.00

2008Y 9,531 3,187 6,344 -198 5,633

Liquidity

OFFICERS & ADVISORS Auditor Casey Neilon & Associates LLC Actuary Bickerstaff, Whatley, Ryan CEO K. Warren Volker CFO -President --

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

8,000 6,000

89.0 86.0

86.0

4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 112.21 112.21 223.33 89.00 0.00 142.55 2,230 2,111 163.75 170.69 4.56

2009Y 115.72 115.72 230.99 86.00 0.00 122.82 990 781 118.58 124.30 6.44

2011Y 2010Y 24.32 38.56 75.20 100.00 0.00 103.24 2,155 2,113 150.91 154.91 0.73

2012L2 2011Y 25.88 101.69 73.38 98.00 0.00 103.68 428 626 110.06 110.06 4.14

2012L2 33.78 52.27 91.05 86.00 0.00 154.67 2,174 2,251 161.70 164.94 4.89

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --193 225 NPW to Policyholders' Surplus 300 --193 146 Change in Net Premiums Written 33 -33 12 -37* Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --93 92 Investment Yield 6.5 3 1.2* 1.1* Gross Change in Policyholders' Surplus 50 -10 5 -16* Net Change in Adj Policyholders' Surplus 25 -10 1 -19* Liabilities to Liquid Assets 100 --86 100* Agents' Bal to Policyholders' Surplus 40 --1 0 1-Yr Resv Dev to Policyholders' Surplus 20 --12 -43 2-Yr Resv Dev to Policyholders' Surplus 20 --5 -12 Est Curr Resv Defi/Policyholders' Surplus 25 ---7 -53 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y 27.23 55.33 15.40 NM NM 97.78 15.40 NA NA NA

2009Y 5.00 5.10 11.51 NM NM 6.95 11.51 43.71 11.26 28.91

2010Y 14.58 29.96 -36.57 NM NM -1.52 -2.50 40.14 3.68 25.17

2011Y 227 195 57* NA 93 1* 18 13 98 10 -17 -43 -47

2011Y 10.69 8.29 57.42 NM NM 34.70 19.27 33.10 6.41 22.13

2012L2 13.59 13.56 51.01 NM NM 13.77 13.90 23.71 -0.47 13.59

Capital + Capital Ratios 100.0

100.0

ACL Risk Based Capital

6,000

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

85.9

5,000

4,000 65.1

4,000

3,500

3,000

3,000

2,000

2,500

1,000

136.5

2,000

0 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

1,500 1,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y 97.78 4.43 8.25 45.86 2.74 0.00 87.40

2009Y 6.95 11.98 5.43 47.66 6.51 0.00 89.20

2010Y -1.52 -42.75 -12.49 87.53 -34.15 0.00 104.72

2011Y 34.70 -16.70 -43.14 63.25 -8.27 0.00 119.46

2012L2 13.77 NA NA 69.61 NA NA 120.68

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 3,187 NA NA NA NA 0 0 0 0.00 193.81 199.03 16.03

2009Y 3,340 NA NA NA NA 0 0 -188 47.27 201.51 199.61 -5.30

2010Y 2010Y 2,802 NA NA NA NA -37 116 0 0.00 128.75 309.24 -86.83

2011Y 2011Y 3,309 3,309 1,212 273.04 136.52 15 -49 0 0.00 234.06 283.60 -43.49

2012L2 3,299 NA NA NA NA -14 -41 0 0.00 196.03 269.58 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Premier Physicians Ins Co. (Carson City, NV) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 7,118 0 7,118 96 511 1,806 0 9,531

0 0 0 0 0 0 0 0 0 0 7,716 0 7,716 47 349 1,896 0 10,008

5,295 0 1,234 0 0 0 0 0 0 0 2,107 0 8,636 4 65 2,762 0 11,467

5,924 0 1,190 0 0 0 0 0 0 0 2,428 0 9,542 324 448 2,378 0 12,692

5,595 0 1,645 0 0 0 0 0 0 0 3,004 0 10,245 168 599 1,182 0 12,194

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

1,621 1,165 2,786 2,566 0 885 0 107 6,344

1,782 1,197 2,979 3,158 257 117 0 156 6,667

1,997 937 2,934 3,074 2,433 39 0 185 8,665

2,761 1,192 3,952 3,863 1,439 37 0 92 9,383

2,702 1,280 3,982 2,642 1,808 11 0 451 8,895

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

0 0 0 435 2,752 3,187

0 0 0 645 2,695 3,340

0 0 0 84 2,718 2,802

0 0 0 525 2,783 3,309

0 0 0 596 2,703 3,299

Total Liabilities and C&S

9,531

10,008

11,467

12,692

12,194

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 112 0 0 7,118 0 0 0 0 0 0

2009Y 91 0 0 7,716 0 0 0 0 0 0

2010Y 90 -37 37 116 8,636 0 0 0 1,234 0 0

2011Y 89 15 -49 9,542 0 5,924 0 1,190 0 0

2012L2 93 -14 14 -41 10,245 0 0 0 1,645 0 0

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA NA NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 5,792 0 5,792

0 6,459 0 6,459

0 6,297 0 6,297

0 7,510 0 7,510

0 6,942 NA 6,942

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

0 5,792 271 5,521

0 6,459 592 5,866

-2,200 4,097 -84 4,181

-1,061 6,449 789 5,660

-1,061 5,881 262 5,618

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 505 0 505 0 0 212 0 1,165 1,377 1,882 4,051 0 0 -413 0 5,933

0 1,384 0 1,384 876 0 161 0 32 194 2,453 2,883 0 0 531 0 5,336

0 616 0 616 1,592 0 214 0 -260 -45 2,162 2,232 0 0 -212 0 4,394

0 77 0 77 1,864 0 764 0 254 1,018 2,960 2,314 0 0 387 0 5,273

NA NA NA NA NA NA NA NA NA NA 2,363 2,442 0 0 813 0 4,805

112 0 0 0 -301 -102 -198

91 0 0 0 622 223 399

90 -37 0 0 -159 -28 -131

89 15 0 0 491 0 491

93 -14 0 0 892 149 744

-301 5,633 5,460

622 5,957 3,759

-122 4,235 3,862

476 5,764 4,224

906 5,697 NA

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

5,924 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 62.1%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 12.5%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Nevada - 96.4% Alaska - 0.0%

California - 3.3%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Arizona - 0.4%

Alabama - 0.0%

2008Y Other Invstmts - 25.4%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Nevada 2. California 3. Arizona 4. Alaska 5. Alabama All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 7,237 247 27 0 0 0 2008Y 0.00 NA 5,019 24.27

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 5,792 37.35

DPW ($000) 7,510 0 0 0 0 0 2010Y 0.00 NA 6,459 48.15

2011Y 0.00 NA 6,297 26.16

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 18.18 7,510 12.51

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

0 0

0 0

0 0

0 0

NA NA

0 0

0 0

0 0

0 0

NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 5,924 1,190 0 7,114

Fair Value 5,924 1,190 0 7,114

Actual Cost 5,993 1,048 0 7,041

Par Value 5,730 --5,730

Total 23,572 3,427 0 --

2008Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 1.00 5.37 0.00 18.94 74.69 1.17

2009Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.47 3.49 0.00 18.95 77.10 0.91

2010Y NA 0.00 0.00 61.31 44.04 14.29 0.00 24.40 0.00 NA 0.00 0.00 0.00 0.03 0.57 0.00 24.09 75.31 0.79

2011Y 1.00 0.00 0.00 62.09 35.96 12.47 0.00 25.44 0.00 NA 0.00 0.00 0.00 2.55 3.53 0.00 18.73 75.18 0.70

2012L2 NA 0.00 0.00 54.62 49.87 16.06 0.00 29.32 0.00 NA 0.00 0.00 0.00 1.38 4.91 0.00 9.69 84.02 0.76

6 - The Securities and Bond section are held at carrying value


Red Clay RRG Inc. (Thomasville, GA) Address and Geographic 14382 US Highway 19, South Thomasville, GA 31757-4801

Business Profile NAIC Company Code : 13078 Business Focus : Commercial Medical Malpractice Focus Geographic Focus: Regional - Southern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 26-0394644 Distribution Channel: Direct Response

MSA: Thomasville, GA (Micro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Cory E. Brown Phone : (229) 226-1937x106 Fax : (229) 226-5394 Email : cory.brown@mailtcs.com

Direction -----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue

Liquidity

Profitability Ratios 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 -5.00 -10.00

2009Y -1.90 -3.35 -3.79 -2.40 68.89 41.38 13.48 110.26 113.61 -3.35 0.00

2010Y -1.63 -3.41 4.28 2.52 49.96 39.75 14.57 89.71 93.12 -3.41 0.00

2011Y -1.48 -3.75 4.86 2.53 52.01 35.57 24.50 87.57 91.33 -3.75 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2009Y

2012L2 -1.89 9.59 35.99 19.09 -14.46 NM -25.01 NM NM NA 0.00

87.6

2010Y

2011Y

0.0 2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 6.07 45.74 0.00 9.61 36.71 728 327 348 -180 51.92 NM -29.10

2009Y 55.41 0.00 0.00 6.55 34.82 1,125 495 297 -74 63.84 NM -10.15

2010Y 35.39 0.00 0.00 6.33 33.42 1,585 507 403 104 64.01 3.80 10.50

2011Y 27.50 0.00 0.00 6.39 29.18 1,652 554 434 132 64.51 10.06 12.35

2012L2 10.55 NA NA NA NA NA -167 403 973 NA 0.71 84.00

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y 0 51.92 NA 0.00 0 0

2009Y 385 63.84 0.00 0.00 0 0

2010Y 522 64.01 0.00 0.00 0 0

2011Y 474 64.51 0.00 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

2,000

728 378 495 327 NA NA 0.20

1,125 718 718 776 104.20 -3.52 0.32

1,585 1,015 1,015 1,224 94.76 4.45 0.41

1,652 1,066 1,066 1,704 139.29 5.40 0.44

-2 -589 1,155 1,237 130.69 36.25 -0.18

Total Assets

Total Liabilities

Liabilities / Liquid Assets (IRIS Ratio)

70.0 61.0

51.0

48.0

3,000 2,000 1,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y 2008Y 197.41 197.41 41.94 51.00 0.00 380.40 119 144 139.44 140.71 -11.47

2009Y 169.80 169.80 78.15 59.00 0.00 272.18 549 546 243.51 244.62 -11.04

2011Y 2010Y 162.88 162.88 101.25 61.00 0.00 248.81 636 628 249.03 249.98 -6.52

2012L2 2011Y 142.34 142.34 125.09 70.00 0.00 205.91 542 521 187.65 190.94 -7.23

2012L2 152.12 152.12 103.23 48.00 0.00 274.69 704 678 228.51 229.74 8.23

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --51 64 NPW to Policyholders' Surplus 300 --32 41 Change in Net Premiums Written 33 -33 90* 41* Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --124* 98 Investment Yield 6.5 3 0* 0* Gross Change in Policyholders' Surplus 50 -10 16 13 Net Change in Adj Policyholders' Surplus 25 -10 -5 3 Liabilities to Liquid Assets 100 --59 61 Agents' Bal to Policyholders' Surplus 40 --0 0 1-Yr Resv Dev to Policyholders' Surplus 20 ---2 -8 2-Yr Resv Dev to Policyholders' Surplus 20 --NA -9 Est Curr Resv Defi/Policyholders' Surplus 25 --NA -25 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y NA NA NA NA NA NA NA NA NA NA

2009Y 39.52 150.95 89.99 NM NM 137.31 54.52 NA NA NA

2010Y 25.18 52.25 41.31 NM NM 57.67 40.93 NA NA NA

2011Y 68 44 5 NA 92 0* -3 -4 70 0 -7 -15 -34

2011Y 12.87 37.73 5.06 23.19 15.18 39.31 4.24 73.93 8.35 25.39

2012L2 15.66 -3.09 NM 727.15 804.12 -17.27 NM 46.86 14.02 22.83

Capital + Capital Ratios

64.5

64.0

63.8

2012L2 5,525 3,291 2,233 947 1,136

59.0

110.3

2008Y

2011Y 4,560 2,427 2,133 118 1,065

5,000

158.2

89.7

2010Y 4,040 2,491 1,549 103 1,017

6,000

4,000 2008Y NA 3.36 NA NA 66.11 92.05 60.05 158.16 155.59 2.57 0.00

2009Y 3,227 2,210 1,017 -79 719

Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook Not Covered by SNL ----

OFFICERS & ADVISORS Auditor Jarrard Nowell & Russell LLC Actuary Milliman Inc. CEO -CFO -President Charles E. Sharp Jr.

PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

2008Y 2,313 1,908 405 -156 523

1,500

ACL Risk Based Capital

51.9

1,000

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

3,000

500

2,500

584.2 537.6

0

535.9

2,000

-500

458.3

1,500

-1,000 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

1,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

500

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y NA NA 0.00 NA 0.00 89.30 17.14

2009Y 137.31 -1.63 0.00 104.20 -4.32 50.75 35.11

2010Y 57.67 -7.69 -8.60 94.76 -16.75 27.92 49.12

2011Y 39.31 -6.70 -15.23 139.29 -15.66 23.63 70.24

2012L2 -17.27 NA NA 130.69 NA NA 37.58

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2007Y

2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 1,908 1,908 177 1,075.13 537.56 0 0 0 0.00 NA 21.25 0.00

2009Y 2,210 2,210 189 1,168.37 584.19 0 -6 0 0.00 34.62 46.02 17.42

2010Y 2010Y 2,491 2,491 272 916.61 458.30 0 -10 0 0.00 42.30 62.16 20.95

2011Y 2011Y 2,427 2,427 226 1,071.79 535.90 0 0 0 0.00 43.77 87.88 19.53

2012L2 3,291 NA NA NA NA 0 -24 0 0.00 -22.37 67.86 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Red Clay RRG Inc. (Thomasville, GA) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 800 0 800 0 0 1,513 0 2,313

0 0 0 0 0 0 0 0 0 0 1,727 0 1,727 0 0 1,500 0 3,227

0 0 0 0 0 0 0 0 0 0 2,522 0 2,522 0 0 1,517 0 4,040

0 0 0 0 0 0 0 0 0 0 3,036 0 3,036 0 0 1,524 0 4,560

0 0 0 0 0 0 0 0 0 0 3,398 0 3,398 594 0 1,533 0 5,525

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

297 30 327 -117 0 58 0 137 405

394 382 776 0 0 6 0 236 1,017

542 682 1,224 0 0 42 0 283 1,549

803 902 1,704 0 97 34 0 297 2,133

403 834 1,237 0 97 26 0 874 2,233

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

673 0 0 -265 1,500 1,908

1,084 0 0 -356 1,482 2,210

1,301 0 0 -263 1,454 2,491

1,327 0 0 -330 1,430 2,427

1,407 0 0 455 1,430 3,291

Total Liabilities and C&S

2,313

3,227

4,040

4,560

5,525

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 13 0 0 800 0 0 0 0 0 0

2009Y -24 0 -6 1,727 0 0 0 0 0 0

2010Y -35 0 -10 2,522 0 0 0 0 0 0

2011Y -40 0 0 3,036 0 0 0 0 0 0

2012L2 -56 0 -24 3,398 0 0 0 0 0 0

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

NA NA NA NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 728 0 728

0 1,125 0 1,125

0 1,585 0 1,585

0 1,652 0 1,652

0 1,711 NA -2

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-350 378 -117 495

-407 718 0 718

-570 1,015 0 1,015

-586 1,066 0 1,066

-586 -589 -1,743 1,155

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 0 0 0 30 0 297 0 0 297 327 348 0 0 -180 0 675

0 0 0 0 398 0 97 0 0 97 495 297 0 0 -74 0 792

0 0 0 0 59 0 148 0 300 448 507 403 0 0 104 0 910

0 0 0 0 73 0 261 0 220 481 554 434 -55 0 132 0 934

NA NA NA NA NA NA NA NA NA NA -167 403 -55 0 973 0 182

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income

13 0 15 0 -152 4 -156

-24 0 25 0 -73 6 -79

-35 0 37 0 107 4 103

-40 0 39 0 132 13 118

-56 0 37 0 954 7 947

Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses

-152 523 319

-73 719 740

107 1,017 515

132 1,065 564

954 1,136 NA

2007Y

2008Y

2009Y

2010Y

2011Y

NA NA

0 0

0 0

0 0

0 0

NA NA NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 0.0%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 0.0%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Alabama - 100.0% Arizona - 0.0%

Alaska - 0.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Arkansas - 0.0%

California - 0.0%

2008Y Other Invstmts - 100.0%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Med Prof Liab - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Alabama 2. Alaska 3. Arkansas 4. Arizona 5. California All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 1,652 0 0 0 0 0 2008Y NA NA NA NA

Rank and LOBs 1. Med Prof Liab 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 728 60.03

DPW ($000) 1,652 0 0 0 0 0 2010Y 0.00 NA 1,125 0.00

2011Y 0.00 NA 1,585 9.32

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 NA 1,652 15.81

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

NA NA

0 0

0 0

0 0

NA NA

NA NA

0 0

0 0

0 0

NA NA

NA NA NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 0 0 0 0

Fair Value 0 0 0 0

Actual Cost 0 0 0 0

Par Value 0 --0

Total 0 0 0 --

2008Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 65.41 34.59 0.55

2009Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 46.48 53.52 -0.75

2010Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 37.56 62.44 -0.86

2011Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 0.00 0.00 0.00 33.42 66.58 -0.88

2012L2 NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 10.76 0.00 0.00 27.75 61.50 -1.02

6 - The Securities and Bond section are held at carrying value


Sigma RRG Inc. (Washington, DC) Address and Geographic c/o Aon Risk Services, Inc. 1120 20th Street, NW, Suite 60 Washington, DC 20036-3406 MSA: Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro)

Credit Ratings AM Best Financial Strength Rating Moody's Financial Strength Rating Fitch Financial Strength Rating DBRS Financial Strength Rating

Business Profile NAIC Company Code : 13557 Business Focus : Commercial General Liability Focus Geographic Focus: Regional - Northeastern Quadrant NAIC Ownership Structure: Risk Retention Group Tax Identification Number : 26-3690684 Distribution Channel: Direct Response

Rating -----

Date -----

STATUTORY CONTACT INFORMATION Name : Emi Swaim Phone : (202) 862-5339 Fax : (847) 953-3462 Email : emi.swaim@aon.com

Direction -----

HIGHLIGHTS ($000) Total Assets Policyholder Surplus Total Liabilities Net Income Total Revenue Direct Premiums Written Net Premiums Written Net Premiums Earned Loss & Loss Adj Exp Reserves Loss & LAE Reserves/ NPE (%) Pre-tax Operating ROAE (%) Operating Leverage (%)1

Watch/Outlook Not Covered by SNL ----

Liquidity

OFFICERS & ADVISORS Auditor Saslow Lufkin & Buggy LLP Actuary Aon Global Risk Consulting CEO Richard A. Graciano Jr. CFO -President Ross J. Nese

2008Y 5,721 1,323 4,398 23 2,580

2009Y 7,304 1,898 5,406 75 1,096

2010Y 9,824 3,532 6,292 531 2,144

2011Y 10,992 4,592 6,400 655 2,529

2012L2 10,948 4,964 5,984 758 2,468

3,878 3,515 2,578 2,330 NA NA 2.66

2,120 1,770 1,081 2,920 247.74 9.19 0.93

2,849 2,849 2,097 3,450 166.42 35.17 0.81

2,351 2,351 2,538 4,062 161.72 26.49 0.51

2,349 2,349 2,440 4,871 180.88 26.55 0.47

Total Assets

10,000

2008Y NA 0.06 NA NA 90.39 6.55 90.39 96.94 96.86 0.08 0.00

Profitability Ratios

2009Y 0.41 0.89 5.33 1.44 65.98 14.35 -72.00 80.33 78.86 1.46 0.00

2010Y 0.85 1.65 22.77 7.25 50.14 9.53 43.54 59.67 57.43 2.25 0.00

2011Y -0.12 -0.37 17.07 6.90 48.61 11.88 37.58 60.49 60.84 -0.35 0.00

Return on Average Equity (C&S)

Return on Avg Assets

Net Yield on Invested Assets

Combined Ratio

2012L2 0.33 1.19 17.35 7.41 42.09 11.93 28.65 54.02 52.88 1.14 0.00

25.00 20.00

96.9

15.00

80.3

10.00

60.5

59.7

54.0

5.00 0.00 -5.00 2008Y

2009Y

2010Y

2011Y

2012L2

UNDERWRITING ANALYSIS (%) Loss Adjustment Expense Ratio Net Commission Ratio Salaries & Benefits Ratio Tax, License & Fees Ratio Admin & Other Expense Ratio Gross Premiums Written ($000)3 Loss & Loss Adj Expense ($000) Other Underwriting Exp Incurred ($000) Net Underwriting Gains ($000) Retention Ratio Effective Tax Rate Pre-Tax Operating Margin

2008Y 0.00 0.00 0.00 1.79 4.76 3,878 2,330 230 18 90.65 -19.33 0.76

2009Y 137.98 0.00 0.00 2.43 11.92 2,120 713 254 114 83.49 42.05 11.81

2010Y 6.60 0.00 0.00 2.21 7.32 2,849 1,051 272 774 100.00 33.70 38.29

2011Y 11.03 0.00 0.00 2.90 8.98 2,351 1,234 279 1,025 100.00 35.30 40.17

2012L2 13.44 NA NA NA NA NA 1,027 280 1,133 NA 34.50 47.03

REINSURANCE ANALYSIS ($000) Reinsurance Recoverable ex US Aff Retention Ratio (NPW/GPW) (%)3 Unauthorized Net Recov. (ex US Aff) (%) Nonaffiliated Reins Assumed / GPW (%) Reinsurance Payable on Losses, LAE Reinsurance on Known Case Reserves

2008Y -24 90.65 0.00 0.00 0 0

2009Y -23 83.49 0.00 0.00 0 0

2010Y 0 100.00 NA 0.00 0 0

2011Y 0 100.00 NA 0.00 0 0

2012L2 NA NA NA NA NA NA

Premiums

Net Premiums Written

Gross Premiums Written

Retention Ratio (NPW/GPW)

4,500

89.0 76.0

6,000

63.0

4,000 2,000 0 2008Y

2009Y

CASH FLOW & LIQUIDITY (%) Cash, Short-Term Investments / Liabilities Cash, Common & Liquid Bonds / Liabilities Cash & Short-Term Investments / C&S Liabilities / Liquid Assets (IRIS Ratio) Affiliated Investments / Capital & Surplus Reserve coverage2 Cash From Underwriting ($000) Net Cash From Operations ($000) Underwriting Cash Flow Ratio Operating Cash Flow Ratio Unassigned Funds / Total Assets

2010Y

2008Y 88.81 88.81 295.17 113.00 0.00 107.65 2,538 2,538 4,067.05 4,067.05 0.41

2009Y 86.41 86.41 246.08 116.00 0.00 95.38 664 376 260.32 333.95 1.35

2011Y 2010Y 103.29 112.11 183.99 89.00 0.00 121.01 1,299 1,287 265.07 271.68 6.41

2012L2 2011Y 119.35 131.81 166.33 76.00 0.00 134.89 1,628 1,044 281.02 345.13 11.69

2012L2 145.70 158.95 175.62 63.00 0.00 161.27 2,036 1,742 513.93 571.99 12.67

Unusual Values Equal to or IRIS RATIO ANALYSIS (%) Over Under 2009Y 2010Y GPW to Policyholders' Surplus3 900 --112 81 NPW to Policyholders' Surplus 300 --93 81 Change in Net Premiums Written 33 -33 -50* 61* Surplus Aid to Policyholders' Surplus 15 --NA NA Two-Year Overall Operating Ratio 100 --92 65 Investment Yield 6.5 3 0.4* 0.8* Gross Change in Policyholders' Surplus 50 -10 43 86* Net Change in Adj Policyholders' Surplus 25 -10 6 28* Liabilities to Liquid Assets 100 --116* 89 Agents' Bal to Policyholders' Surplus 40 --103* 67* 1-Yr Resv Dev to Policyholders' Surplus 20 ---56 -24 2-Yr Resv Dev to Policyholders' Surplus 20 --NA -78 Est Curr Resv Defi/Policyholders' Surplus 25 --NA -15 *Indicates an unusual value. NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the complements of each ratio. GROWTH RATES & TRENDS (%) Admitted Assets Growth Total Liabilities Growth Net Premiums Written Growth Pre-Tax Operating Income Growth Net Income Growth Loss & Loss Adj Exp Reserves Growth Direct Premiums Written Growth Total Liabilities Five-year CAGR Capital & Surplus Five-year CAGR Admitted Assets Five-year CAGR

2008Y NA NA NA NA NA NA NA NA NA NA

2009Y 27.66 22.91 -49.65 562.42 221.69 25.30 -45.34 NA NA NA

2010Y 34.50 16.39 60.99 534.04 608.30 18.16 34.41 NA NA NA

2011Y 51 51 -17 NA 59 0* 30 19 76 48* -23 -6 18

2011Y 11.89 1.72 -17.49 23.74 23.21 17.72 -17.49 13.32 51.40 24.32

2012L2 21.10 12.76 -9.98 60.09 63.66 19.08 -9.98 20.81 54.91 32.29

Capital + Capital Ratios

4,000 3,500

Liabilities / Liquid Assets (IRIS Ratio)

116.0

113.0

8,000 PROFITABILITY RATIOS (%) Net Yield on Invested Assets Net Investment Income/Earned Premiums Return on Average Equity (C&S) Return on Avg Assets Loss and LAE Ratio Expense Ratio Loss Ratio Combined Ratio Operating Ratio Investment ratio Policyholder Dividend Ratio

Total Liabilities

12,000

100.0

100.0

ACL Risk Based Capital

90.6

RBC - Total Adjusted Capital

Capital and Surplus

Co. Action Level RBC (TAC/(ACL RBC*2))

83.5

3,000

600,000

2,500 2,000

389.8

500,000

1,500

355.9

400,000

1,000 500

232.1

300,000

0 2008Y

2009Y

2010Y

2011Y

0.0 2012L2

200,000

ASBESTOS/ENVIRONMENTAL RESV One-Year Survival Ratio (%) Asbestos Environmental Combined Three-Year Survival Ratio (%) Asbestos Environmental Combined

2008Y

2009Y

2010Y

2011Y

2012L2

100,000

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

0

NA NA NA

NA NA NA

NA NA NA

NA NA NA

NA NA NA

RESERVE ANALYSIS (%) Change in Loss & LAE Resv / Reserves 1 Yr Loss Reserve Dev / 1Y Prior C&S 2 Yr Loss Reserve Dev / 2Y Prior C&S Loss and LAE Reserves / NPE 1 Yr Loss Reserve Development / NPE IBNR/ Total Reserves Reserves/ Equity

2008Y NA NA 0.00 NA 0.00 80.42 176.10

2009Y 25.30 -56.15 0.00 247.74 -68.76 51.62 153.82

2010Y 18.16 -24.28 -77.53 166.42 -21.99 59.28 97.68

2011Y 17.72 -23.21 -6.47 161.72 -32.31 52.16 88.45

2012L2 19.08 NA NA 180.88 NA NA 98.12

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2007Y

0.1 2008Y

CAPITAL/LEVERAGE ANALYSIS ($000) Capital and Surplus RBC - Total Adjusted Capital ACL Risk Based Capital Risk Based Capital Ratio (TAC/ACL RBC) Co. Action Level RBC (TAC/(ACL RBC*2)) Realized Capital Gains (Losses) Net Unrealized Capital Gains (Losses) Dividends to Stockholders Dividend Payout Ratio (%) Net Premiums Written / Avg C&S (%) Liabilities / Capital & Surplus (%) Total Reins Recov Excl US Aff / C&S (%)

2009Y 2008Y 1,323 1,323 485,146 0.27 0.14 0 0 0 0.00 NA 332.35 -1.81

2009Y 1,898 1,898 409 464.14 232.07 0 0 0 0.00 125.62 284.76 -1.21

2010Y 2010Y 3,532 3,532 496 711.89 355.94 -19 0 0 0.00 122.06 178.12 0.00

2011Y 2011Y 4,592 4,592 589 779.62 389.81 -4 0 0 0.00 61.30 139.37 0.00

2012L2 4,964 NA NA NA NA -3 0 0 0.00 53.74 120.53 NA

2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums) 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies Companies.


Sigma RRG Inc. (Washington, DC) BALANCE SHEET ($000) Assets Bonds Preferred Stocks Common Stocks First Lien Real Estate Loans Real Estate Loans Less First Liens Total Mortgage Loans Occupied Properties Income Generating Properties Properties for Sale Total Real Estate Net Adm Cash,Cash Equi, Short-Term Inv Other Investments Subtotals, Cash & Invested Assets Premiums & Considerations Due Reinsurance Recoverable All Other Admitted Assets Separate Account Assets Total Net Admitted Assets

2008Y

2009Y

2010Y

2011Y

2012L2

0 0 0 0 0 0 0 0 0 0 3,906 0 3,906 1,276 0 539 0 5,721

0 0 0 0 0 0 0 0 0 0 4,671 0 4,671 1,955 0 678 0 7,304

555 0 0 0 0 0 0 0 0 0 6,499 0 7,054 2,369 0 402 0 9,824

283 0 514 0 0 0 0 0 0 0 7,638 0 8,436 2,192 0 364 0 10,992

222 0 571 0 0 0 0 0 0 0 8,718 0 9,511 942 0 494 0 10,948

Liabilities Unpaid Losses Unpaid Loss Adj Expenses Loss & Loss Adj Exp Reserves Unearned Premiums Total Reinsurance Liabilities Commissions, Other Exp & Taxes Payable to Parent, Subs & Affiliates Other Liabilities Total Liabilities

2,330 0 2,330 1,276 363 166 94 169 4,398

1,552 1,368 2,920 1,953 350 129 0 53 5,406

2,250 1,200 3,450 2,379 0 135 0 327 6,292

2,861 1,201 4,062 2,192 0 137 0 9 6,400

3,429 1,442 4,871 1,027 0 86 0 0 5,984

Total Capital and Surplus Common Capital Stock Preferred Capital Stock Surplus Notes Unassigned Surplus Other Including Gross Contributed Capital & Surplus

0 0 0 23 1,300 1,323

1,800 0 0 98 0 1,898

2,903 0 0 630 0 3,532

3,308 0 0 1,285 0 4,592

3,578 0 0 1,387 0 4,964

Total Liabilities and C&S

5,721

7,304

9,824

10,992

10,948

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

2008Y 2 0 0 3,906 0 0 0 0 0 0

2009Y 16 0 0 4,671 0 0 0 0 0 0

2010Y 47 -19 19 0 7,054 0 555 0 0 0 0

2011Y -9 -4 4 0 8,436 0 283 0 514 0 0

2012L2 28 -3 3 0 9,511 0 222 0 571 0 0

NA 0.00 NA NA 0.00 NA NA

NA 0.00 NA NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

0.00 0.00 0.00 NA 0.00 NA NA

NA NA 0.00 NA NA NA NA

Memo: Affiliated Investments ($000) Bonds Preferred Stocks Common Stocks Mortgage Loans Cash & Short Term Investments All Other Investments Total Affiliated Investments INVESTMENT ANALYSIS ($000) Net Investment Income Realized Capital Gains R li d C it l G i Unrealized Capital Gains Total Cash & Investments Affiliated Cash & Investments Total Bonds (incl Short-Term) Total Preferred Stock (incl Nonadmitted) Total Common Stock (incl Nonadmitted) Total Mortgage Loans (incl Nonadmitted) Total Real Estate (incl Nonadmitted)

INCOME STATEMENT ($000) Revenue Personal P&C Direct Premiums Commercial P&C Direct Premiums Accident & Health Direct Premiums Direct Premiums Written

2008Y

2009Y

2010Y

2011Y

2012L2

0 3,878 0 3,878

0 2,120 0 2,120

0 2,849 0 2,849

0 2,351 0 2,351

0 2,349 NA 2,349

Net Reinsurance Premiums5 Net Premiums Written Change in U/E Premiums Reserve Net Premiums Earned

-363 3,515 937 2,578

-350 1,770 689 1,081

0 2,849 752 2,097

0 2,351 -187 2,538

0 2,349 -91 2,440

Underwriting Deductions ($000) Net Losses Paid - Personal Net Losses Paid - Commercial Net Losses Paid - A&H Net Losses Paid Net LAE Paid Change in Loss Reserves - Personal Change in Loss Reserves - Commercial Change in Loss Reserves - A&H Change in LAE Reserves Net Change in Loss and LAE Reserves Losses and LAE Incurred Other Underwriting Expense Incurred Other Underwriting Deductions Net Income Protected Cells Net Underwriting Gain (Loss) Policyholder Dividends (PHD) Total underwriting deductions

0 0 0 0 0 0 2,330 0 0 2,330 2,330 230 0 0 18 0 2,561

0 0 0 0 123 0 -778 0 1,368 590 713 254 0 0 114 0 967

0 215 0 215 306 0 698 0 -168 530 1,051 272 0 0 774 0 1,323

0 343 0 343 279 0 611 0 1 611 1,234 279 0 0 1,025 0 1,513

NA NA NA NA NA NA NA NA NA NA 1,027 280 0 0 1,133 0 1,307

2 0 0 0 20 -4 23

16 0 0 0 129 54 75

47 -19 0 0 802 270 531

-9 -4 0 0 1,012 357 655

28 -3 0 0 1,158 399 758

20 2,580 230

129 1,096 380

821 2,125 581

1,016 2,525 565

1,161 2,465 NA

2007Y

2008Y

2009Y

2010Y

2011Y

NA NA

0 0

0 0

555 0

283 0

NA NA NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Income ($000) Net Investment Income Net Realized Capital Gains (Losses) Finance Service Charges All Other Income Income after cap gains (loss) before tax Federal Income Tax Net Income Pre-tax Operating Income Memo: Total Revenue Memo: Paid Expenses BOND QUALITY ($000) - Annual Only6 Investment Grade Class 1 Class 2 Non - Investment Grade Class 3 Class 4 Class 5 Class 6

Investment Portfolio (%) - 2011

Bond Rated 3-6/Total Bond (%) 2012L2

Bonds - 3.4%

2011Y Preferred Stocks - 0.0%

2010Y Common Stocks - 6.1%

Privately Placed Bonds/Total Bonds (%) Privately Placed Bonds / C&S (%) Bonds Rated 3-6 / Total Bonds (%) Mortgages in Foreclosure / Total (%) Mortgages in Foreclosure / C&S (%) Mortgages in Good Standing / Total (%) Real Estate Occupied / Total (%) Top 5 States by DPW - 2011Y

Pennsylvania - 100.0% Arkansas - 0.0%

Alaska - 0.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Auto St - 0.0%

Comm'l Multi Prl - 0.0%

All Other - 0.0%

Alabama - 0.0%

Arizona - 0.0%

2008Y Other Invstmts - 90.5%

0.00 SECURITIES ($000) - Annual Only6 CMBS Exposure Total: LT Bond, Def MC Com MBS Total: LT Bond, Oth MC Com MB/ABS RMBS Exposure Total: LT Bond, Def MC Res MBS Total: LT Bond, Oth MC Res MBS Municipal Securities Issued States & Territories ($000) Issued Political Subdivisions ($000) Issued State Rev Obligations ($000) Issued Industrial Development ($000)

Top Lines of Business by DPW - 2011Y Oth, Prod Liab Cmbnd - 100.0%

2009Y Mortgage Loans - 0.0%

LT BONDS & STOCKS SUMMARY ($000) LT Bond Common Stock Preferred Stock Total

Rank and States 1. Pennsylvania 2. Alaska 3. Alabama 4. Arkansas 5. Arizona All Other MARKET POSITION ANALYSIS (%) Market Share Ratio DPW 5 Yr CAGR National DPW ($000) Adjusted Loss Ratio

DPW ($000) 2,351 0 0 0 0 0 2008Y NA NA NA NA

Rank and LOBs 1. Oth, Prod Liab Cmbnd 2. Total Cmbnd A&H 3. Aircraft 4. Comm'l Auto St 5. Comm'l Multi Prl All Other 2009Y 0.00 NA 3,878 89.56

2010Y 0.00 NA 2,120 -53.94

DPW ($000) 2,351 0 0 0 0 0 2011Y 0.00 NA 2,849 44.79

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially when an inter-company pooling arrangement exists.

2012L2 0.00 NA 2,351 37.58

ASSET QUALITY (%) Bond Avg Asset Quality (1-6) (Actual) Bonds Rated 3-6 / C&S Class 5 and 6 Bonds / C&S Bonds/Invested Assets Common Stocks / C&S Unaff common stock/Invested Assets Preferred Stocks / C&S Cash/Invested Assets Mortgage & Real Estate / C&S Mortgages in Foreclosure/Mortgages Mortgages Loans/Invested Assets Real Estate/Invested Assets Other Investments/Invested Assets Premiums & Cons due/Total Assets Reinsurance recoverable/Total Assets Rec from parent,sub or aff./Total Assets All other admitted assets/Total Assets Invested Assets/Total Assets Investment Income/Total Assets

0.20

0.40

0.60

0.80

1.00

2007Y

2008Y

2009Y

2010Y

2011Y

NA NA

0 0

0 0

0 0

NA NA

NA NA

0 0

0 0

0 0

NA NA

NA NA NA NA

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

Carr Value 283 514 0 797

Fair Value 283 514 0 797

Actual Cost 275 537 0 813

Par Value 275 --275

Total 1,116 1,566 0 --

2008Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 22.30 0.00 0.00 9.43 68.27 0.04

2009Y NA 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 NA 0.00 0.00 0.00 26.76 0.00 0.00 9.28 63.95 0.22

2010Y 1.00 0.00 0.00 7.87 0.00 0.00 0.00 92.13 0.00 NA 0.00 0.00 0.00 24.11 0.00 0.00 4.09 71.80 0.48

2011Y 1.00 0.00 0.00 3.35 11.20 6.10 0.00 90.55 0.00 NA 0.00 0.00 0.00 19.94 0.00 0.00 3.31 76.74 -0.08

2012L2 1.00 0.00 0.00 2.34 11.49 6.00 0.00 91.66 0.00 NA 0.00 0.00 0.00 8.61 0.00 0.00 4.51 86.88 0.25

6 - The Securities and Bond section are held at carrying value


Financial stability is independent of size. Financial Stability Ratings® (FSRs) are a leading indicator of the financial stability of Property and Casualty (P&C) insurers and Title underwriters. An FSR summarizes our opinion as to the insurer’s ability to insulate itself from the business cycle that exists in the general economy as well as the underwriting cycle that exists in the insurance industry. Thus, an FSR summarizes our opinion as to the relative ability of an insurer to survive a downturn in general economic conditions as well as a downturn in the underwriting cycle. FSRs are not an endorsement of any particular insurer or its products. Insureds and agents need to independently evaluate their relationship with a particular insurer as well as the applicability of that insurer’s products to the needs of the insured or agent. FSRs present our opinion of the ability of the insurer to meet its insurance related obligations based upon our assessment of financial information. Our focus is unique. While we acknowledge and recognize the importance of profitability, we believe that balance sheet strength and financial integrity are the ultimate determinants of the long term financial stability required to honor meritorious claims. Accordingly, while operating profit remains an important element in the assignment of FSRs, the ability of an insurer to remain financially stable under a variety of economic stress tests requires a focus on balance sheet integrity. Quality and quantity of reinsurance, relative adequacy of loss and loss adjustment expense reserves, the liquidity and quality of assets and rate adequacy are some of the more critical items we evaluate. Our rating process provides an objective baseline for assessing solvency based upon changes in financial stability, as manifested in an insurer’s balance sheet. FSRs are based upon a series of quantitative ratios and considerations that comprise our Financial Stability Analysis Model. The Financial Stability Analysis Model is the major component of the FSR assignment process and can be applied to statutory insurance accounting data or data compiled under Generally Accepted Accounting Principles (GAAP). The Financial Stability Analysis Model includes a tactile review as well as computation and analysis of critical financial ratios to determine the current and anticipated financial stability of the insurance company being reviewed. The Financial Stability Analysis Model cross checks and analyzes financial statement calculations and relationships. A critical item to determine the financial stability of a P&C insurer is the calculation of financial stability ratios measured against our financial stability benchmarks. These ratios and benchmarks have been compiled on an industry-wide basis and have been substantiated by third parties. Since our incorporation in 1985, Demotech has proactively responded to the challenges faced by the insurance industry. In 1989, Demotech gained acceptance from the Federal National Mortgage Association (Fannie Mae) for FSRs of A or better. In 1990, we received similar accreditation from Federal Home Loan Mortgage Corporation (Freddie Mac). In 1993, the United States Department of Housing and Urban Development (HUD) published its acceptance of FSRs of A or better. The acceptance of FSRs of A or better leveled the playing field for regional P&C insurance companies while simultaneously assisting insurance agents, reinsurers and insurance carriers through the elimination of reinsurance endorsements and cut-through endorsements.

Demotech, Inc. Corporate Milestones 1986 First to issue Financial Stability Ratings® (FSRs) for health maintenance organizations (HMOs). 1987 First to issue FSRs for public entity liability self-insured pools through the development of our Management Audit Process. 1989 First to have Property and Casualty insurance company rating process formally reviewed and accepted by Fannie Mae. An FSR of A or better eliminates the need for property insurance cut-through endorsements by mortgage lenders. 1990 First to have Property and Casualty insurance company rating process formally reviewed and accepted by Freddie Mac. Began offering Property and Casualty insurance companies and Title underwriters loss cost analysis and rate, rule and form filing assistance. Addressed the National Association of Insurance Commissioners (NAIC) requirements for Property and Casualty insurers to submit actuarial opinions related to loss and loss adjustment expense reserves concurrent with the 1990 Property and Casualty annual statement. 1992 First to issue FSRs for Title underwriters. First to have Property and Casualty insurance company rating process formally 1993 reviewed and accepted by HUD. Fannie Mae issued Title underwriting guidelines, naming Demotech as an 1994 approved Title underwriter rating service. First to promulgate Commercial Real Estate Recommendations (CRERs) to 1995 provide additional financial due diligence of Title underwriters involved in larger real estate transactions. 1996 Contacted by the Florida Office of Insurance Regulation (OIR) when the property insurance market encountered newly established insurers that did not have the representative historical operating experience to meet traditional rating requirements. Demotech developed evaluation procedures for the assignment of FSRs to newly formed companies. Coordinated the first seminar regarding the implementation of Statements of Actuarial Opinion for Title insurance companies on behalf of the Conference of Consulting Actuaries. 2005 HUD approved Demotech’s rating process for professional liability insurance under Notice H04-15, Professional Liability Insurance f or Section 232 and 223(f) Programs. 2007 Designated the Official Research Partner of Insurance Journal, providing research, actuarial and statistical support and collaborating on special joint reports pertaining to insurance industry performance and financial results. 2008 Introduced Insurance Agents’ Errors and Omissions Insolvency Gap Legal Defense Coverage. 2009 Expanded the Insolvency Gap Coverage to include indemnity as well as legal defense. 2010 Participated in a comprehensive examination of insurer financial strength authored by Florida State University and The University of North Texas.

Solutions as Unique as Your Organization

Similarly, in 1996 we began reviewing newly formed P&C insurance companies incorporated in the State of Florida to facilitate their efforts to depopulate the Florida residual market mechanism. In 2005, FSRs of A or better were deemed acceptable for qualification under HUD’s Section 232 and 223 (f) Programs, thereby assisting financially stable risk retention groups writing nursing facility general and professional liability insurance.

Demotech is committed to serving its clients while maintaining the highest standards. Innovative thinking, strategic analysis, commitment, insight and on-going involvement with the insurance industry allow us to provide solutions as unique as your organization.

We encourage you to contact us with any current needs or problems you are experiencing. We are confident we can provide a solution for your organization.

Contact Douglas Powell at dpowell@demotech.com to discuss any needs or problems your organization is experiencing.

We encourage you to contact us with any current needs or problems you are experiencing. We are confident we can provide a solution.

®

®


Demotech, Inc. 2715 Tuller Parkway Dublin, OH 43017-2310 www.demotech.com

Analysis of Risk Retention Groups - Second Quarter 2012  

The financial ratios calculated based on the second quarter results of the various lines of business of RRGs appear to be reasonable. Moreov...

Read more
Read more
Similar to
Popular now
Just for you