ACUITY OFFICERS (from left to right)

MARCUS KNUTH Vice President - Enterprise Technology

SHERI MURPHY Vice President - Services & Administration

WENDY SCHULER Vice President - Finance

SHANE PALTZER Vice President - Marketing & Personal Lines

WALLY WALDHART Vice President - Sales & Communications

BEN SALZMANN President & CEO

ED WARREN Vice President - Commercial Lines

JAMIE LOIACONO Vice President - Claims

PAT TURES Vice President - Actuarial & Strategic Information

JOAN RAVANELLI MILLER General Counsel & Vice President - Human Resources

MELISSA WINTER Vice President - Business Consulting

WELCOME! 2016 has been a truly delectable 366 days at the Acuity Chocolate Factory. Turn the pages to learn more about all the magic that happened this year!

Acuity, A Mutual Insurance Company

1615141312111009080706050403020100

101.7

113.

410

1.811

7.2

90.9

108.

192

.310

0.7

89.1

99.6

84.8

99.8

89.0

93.8

97.5

96.4

101.0

101.4

100.

810

2.6

100.

7 104.

499

.610

8.7

94.2

105.

992

.499

.894

.999

.393

.099

.1

AVG.

100.

895

.110

3.0

Combined RatioAcuity Industry*

*Based on industry averages from Conning Research & Consulting, weighted by Acuity’s mix of business (GAAP).

92.9

1514131211100905

Surplus Growth

6.5

-3.9

6.6 7.6

12.5

-0.1

34.7

20.0

26.1

13.6

25.0

-0.8

22.3

19.9

11.4

8.2

18.2

11

.5 13.2

6.

25.

4-5

.914

.26.

920

.910

.710

.16.

9

Acuity Industry*

16

1.712

.40.

8

percent

*Based on industry averages from Conning Research & Consulting, weighted by Acuity’s mix of business (Statutory).

AVG.

13.8

5.4

08

-11.3

-12.5

00 01 02 03 04 06 07

8.0

Acuity Industry*

*Based on industry averages from Conning Research & Consulting, weighted by Acuity’s mix of business (GAAP).

24.6 26

.1 27.7

12.4

-3.2

-4.9

-5

.34.

3

17.1

14.4

15141312111009080706050403020100 16

7.0

4.6

3.5

3.3

percent

AVG.

10.5

4.5

Sales Growth

5.8

16.2 17

.515

.411

.6

3.9

9.3

3.1 6.

11.9 0.8

-1.7

-6.4

-0.6

8.1

3.8 6.

6

6.1

10.6

6.9

Comparative Written PremiumAcuity Acuity at Industry Growth Rate

in millions of dollars

289.

7 418.

233

6.7 53

4.1

395.

561

6.4

441.4

692.

545

8.6

756.

747

2.8

803.

248

1.880

9.8

473.

678

3.5

443.

374

4.7

419.

877

6.7

417.

383

9.6

433.

298

2.9

461.7

1,1

24.3

489.

9 1,2

43.0

523.

7

15141312111009080706050403020100

1,330

.1 54

7.8

341.2

16

1,376

.3

565.

9

We’re nota one-hit

wonder! Look atall those magical

years!

in thousands

28.8

03

31.4

04

35.0

05

40.1

06

44.3

07

47.5

08

54.7

09

55.7

10

58.5

11

67.0

12

68.0

13

67.1

14

66.9

15

Commercial LinesQuotes Received

69.2

16

in millions of dollars

840.7

923.0

976.0

Commercial LinesWritten Premium

09 1110 12 13 14 15

546.3

601.3

728.9

16

1,005.2

532.9

Commercial LinesQuote Hit Ratio

11 12 13 14 15

37.3

39.440.0

40.6

41.2

16

41.4

150.0

Personal LinesWritten Premium

standard, in millions of dollars

04 05 06 07 08 09 10 11 12 13 14 15

159.0 165.0180.3

195.6211.8

230.4238.3

253.0

283.6

320.0

354.1

16

371.2

In both commercial and personal lines,

we keep growing and growing!

CE Credits Earned byAgents Through Acuity

01-02 03-04 05-06 07-08 09-10 11-12 13-14 15-16

18,807

31,920

36,139 37,196 36,609

54,883

44,14544,988

Claims Satisfaction

94

85

*Based on surveys of claimants and insureds

percent

Acuity* Industry

Total Assets GAAP, in millions of dollars

03 04 05 06 07 08 09 10 11 12 13 14 15

1,178

1,4211,618

1,8501,999 1,961

2,1422,268

2,433

2,749

3,088

3,454

3,688

3,965

02

936

16

Policyholders’ SurplusGAAP, in millions of dollars

02 03 04 05 06 07 08 09 10 11 12 13 1401

248.

7

15

295.

0

380.

8

469.

9 567.

5 687.

5

761.4

681.3

817.

9 897.

9

980.

1 1,125

.5 1,289

.8 1,461

.0 1,573

.0

16

1,733

.0

Customers cancount on Acuity’s

claims service!

Net Written Premiumto Surplus Ratio

02 03 04 05 06 07 08 09 10 11 12 13 14 15

2.09

1.79

1.58

1.39

1.201.09

1.20

0.960.89 0.92 0.94 0.89 0.90 0.89

16

0.82

Staff Size

02 03 04 05 06 07 08 09 10 11 12 13 1401

645

15

710 727 734778

833 851 844 834 834 840 880

963

1,056

1,172

16

1,241 2016 was an amazing, record-setting year! Let’s take an even closer look at the ingredients that created a tasty recipe for

success!

STAT

EMEN

T OF

INC

OME

For t

he Y

ear E

ndin

g D

ecem

ber 3

1, 2

016

Und

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e

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incu

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$6

61,5

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curr

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376,

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637

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1,16

3,43

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Net

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(bef

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(afte

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211,

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66,5

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Stat

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the

cons

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the

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unc

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lidat

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acc

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coun

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prin

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AAP)

.

COMP

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STAT

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Dec

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s re

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41

3,65

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2 39

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h an

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50

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and

div

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24,1

19,0

59

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93,5

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Prop

erty

and

equ

ipm

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net

270,

054,

186

181,

513,

945

Rein

sura

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reco

vera

bles

14

2,26

2,35

0 11

8,62

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2

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erre

d ac

quis

ition

cos

ts

117,

657,

007

111,

518,

058

Oth

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isce

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ous

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ts

15,9

34,5

13

18,4

44,3

15

Tota

l Ass

ets

$3,9

65,0

71,1

08

$3,6

87,8

78,0

52

LIA

BILI

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AN

D S

URP

LUS

Loss

rese

rves

$1

,108

,289

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$1

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640,

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255,

361,

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242,

792,

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exp

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s 16

4,61

2,24

7 16

2,67

5,51

2

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53

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000

3,54

7,15

4

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bilit

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2,23

2,09

1,97

5 2,

114,

894,

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Polic

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ders

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plus

1,

732,

979,

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1,57

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5

Tota

l Lia

bilit

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and

Surp

lus

$3,9

65,0

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87,8

78,0

52

A.M

. Bes

t Rat

ed A

+, S

uper

ior /

Sta

ndar

d &

Poo

r’s R

ated

A+

Withnumbers like these, we’re turning the industry on its

EAR!

Where all your insurance dreams come true!