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Guarantee Insurance Company   Fort Lauderdale, Florida 

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www.pnigroup.com www.guaranteeins.com

Management Team  Steven Mariano: Chairman and CEO, Patriot National Group Charles Schuver: President & COO, Guarantee Insurance Company Judith Haddad: Chief Information Officer, Patriot National Group Richard Turner: Executive Vice President, Patriot National Group

Guarantee Insurance Company History  Wholly owned subsidiary of Patriot National Insurance Group Domiciled in Florida and began writing business in 2004 Writes business in all states except NH and VT 12/31/10 Policyholders’ statutory surplus: $25.2M $141.7M DWP and $62.3M NWP at 12/31/10 RBC ratio: 380

Related Businesses  Patriot Risk Services, Inc. provides nurse case management, cost containment and policy & claims administration for Guarantee and other partners Patriot Underwriters, Inc. provides managing general agency services and private label underwriting services 9 Carrier Partnerships: provides expanded geographical footprint and rated platform Patriot Recovery, Inc. provides special investigation and subrogation services fully integrated with all other claim SWARM services

Portfolios (GIC and Third­party carriers)  Traditional Markets – 7% of Total (2010 Projected DWP - $15M) 9 Small to medium size employers 9 Restaurants, retail, wholesale and artisan contractors 9 Annual premium per account less than $250k; average premium $11k 9 Guaranteed cost basis Preferred Agency Captives – 48% of Total (2010 Projected DWP $107M) 9 Segment of Alt Mkt but business mix is consistent with Traditional portfolio. 9 Agents select profitable accounts to include in captive arrangement 9 Currently reinsured in Traditional treaties Alternative Markets – 44% of Total (2010 Projected DWP - $101M) 9 Large deductible, respectively rated or policy holders who retain risk through a captive 9 Typically more sophisticated employees such as hospitality, large construction, car dealerships, staffing companies 9 Low to medium hazard classes with annual premium per account less than $5M; average premium $800k 9 Segregated Cell Captive Arrangements

Claims  

Guarantee Insurance Company   Fort Lauderdale, Florida 

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Proactive approach to claims management and sound reserving Average claims employee experience is 15 years

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Barbell Marketing Strategy  Small customers who recognize the need for superior service or follow the recommendation of their trusted agent Large customers who are focused on claims handling and interested in risk sharing through large deductible, captives and retro rating products Rapid response hands on underwriting –experienced underwriters review individual accounts and make account specific, sound underwriting decisions on each opportunity Low hazard predictable frequency book of business

Total Payroll By State  Other 16%

FL 21%

MI 2% VA 2%

Risk and Reward Sharing Business Model  Financial alignment with customers, agents and reinsurers Quota share reinsurance support provided by Swiss Re Per occurrence excess reinsurance led by Hanover, Tokio and Max Re

Regional Office Locations 

TX 2% IL 2% AR 2%

CA 14%

IN 3% MO 4%

Fort Lauderdale     401 East Las Olas Blvd. Suite 1650 Fort Lauderdale, FL 33301 Main Phone: 954.670.2900 Contact Carla Busick

GA 8%

NY 13% NJ 11%

Lake Mary  1000 Primera Blvd. Suite 3130 Lake Mary, FL 32746 Main Phone: 321.257.1300 Contact Chris Rhoden

Chesterfield  15450 South Outer Forty Dr. Suite 135 Chesterfield, MO 63017 Main Phone: 636.237.2027 Contact John Travis, RVP

Reference Premium Under Management 

Conshohocken  100 Four Falls Corporate Center, Suite 406 West Conshohocken, PA 19428 Main Phone: 484.567.0300 Contact Bev Bisazza, RVP

Rancho Cordova  2868 Prospect Park Drive, Suite 130 Rancho Cordova, CA 95670 Main Phone: ### Contact David Duval 

Charlotte  13925 Ballantyne Corporate Place, Charlotte, NC 28277 Main Phone: ### Contact Paul Halter, RVP

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Company Results 

Claim SWARM 

Denial Ratio  Subrogation

Driven by 100% fraud and compensability review

Claims Closure Ratio  Typical pattern: 86% closed by 12 months, 92% closed by 18 months and 99% closed by 36 months At 36 months the percent of open claims for Patriot are typically 1/3 of the national average for open claims per NCCI statistics

Claims Adjuster

First Report of Claim

Nurse Case Management

Medical Cost Control  Patriot’s average for medical bill review yields an 87% penetration rate and 52% savings rate

Ultimate Cost to Settle Claims 

Special Investigative Unit

Legal

Comparing actual Patriot closed claims to the NCCI average ultimate cost to close (2006 accident year) shows Patriot delivers an average indemnity savings of 25% to 35% across all its key states

Unique claims resolution process: The SWARM.   The secret to our success is in the high-touch, front-end loaded claims review and case management process given to every first report of injury received. We leverage technology with each notice of claim triaged simultaneously by all departments resulting in:

Combined Ratios – Calendar Year  Year GIC Industry

2008 98% 101%

2009 100% 110%

2010 93% 115% est.

More cases being denied Claims closing faster Claims settling cheaper Customers benefiting from less IBNR and lower claims development

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