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Analysis of Risk Retention GroupsYear-End 2012

Demotech, Inc.

May 2013

www.demotech.com Volume 3 Issue 2

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ISSN 2168-7013 (online) Published May 3, 2013 COPYRIGHT©

2013 Demotech, Inc.

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

Contents

5 Special thank you to the following people for their contributions, comments and commitment:

RRGs Report Financially Stable Results at Year-End 2012 By Douglas A. Powell, Senior Financial Analyst, Demotech, Inc.

Company Information and Financial Results of RRGs

Analysis of Risk Retention Groups May 2013 Volume 3 Issue 2

Additional Analysis of RRGs Assigned an FSR 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.

INDUSTRY PERSPECTIVE

FEATURED ARTICLE

Lewis Bivona, Jr., CPA, AFE | Insurance Practice Leader,

WithumSmith+Brown, PC

W. Burke Coleman | Legal Counsel and Compliance Manager,

Demotech, Inc.

James Cutts | Publisher, Risk Retention Reporter

Joseph Deems | Executive Director, National Risk Retention Association

Melissa-Anne Duncan | Executive Director,

Insurance Industry Charitable Foundation

Keith Enslow | Senior Program Manager, SNL Center for Financial Education

Karrie Hyatt | Managing Editor,

Risk Retention Reporter

Barry Koestler | Chief Ratings Officer, Demotech, Inc.

Josh Magden | Vice President of

Insurance and Institutional Marketing, Sage Advisory Services

Mechlin Moore | Communications Director,

National Risk Retention Association

Paul Osborne | Senior Consultant, Demotech, Inc.

11 Ninth Circuit Court Upholds Preemption of Most State Regulation Over RRGs By Joseph Deems, Executive Director, National Risk Retention Association

10 Risk Retention Reporter and Demotech Partner to Release Supplemental Publication

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12

3 Opening Remarks

INDUSTRY PERSPECTIVE

RRG Growth Trends in 2012 and Beyond By Karrie Hyatt, Managing Editor, Risk Retention Reporter

REGULATORY PERSPECTIVE

How RRGs Can Weather Risk Focused Examinations By Lewis Bivona, Jr., Insurance Practice Leader, WithumSmith+Brown, PC

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69The 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.

A Purpose Driven Portfolio - Part 2 By Josh Magden, Vice President of Insurance and Institutional Marketing, Sage Advisory Services

13LEGAL PERSPECTIVE

The Liability Risk Retention Act’s Preemption of State Law By W. Burke Coleman, Esq., Legal Counsel and Compliance Manager, Demotech, Inc.

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SPECIAL ANNOUNCEMENT

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Analysis of Risk Retention Groups – Year-End 2012

Welcome to the second issue of 2013. Based on feedback I have received, you will notice that more financial statement results as well as more key performance ratios are presented in this issue. Although we look at many other indicators and metrics, I believe this will give the reader a better understanding of some of the key indicators we assess in determing the financial stability of RRGs.

Analysis of Risk Retention Groups – Year-End 2012 contains expert analysis from Demotech, Inc. as well as perspective on other topics pertaining to RRGs from other industry experts. If you would like to be a contributing columnist for a future issue of Analysis of Risk Retention Groups, please contact me with the nature of your proposed article.

I would like to point out a special announcement on page 10. Demotech recently partnered with Risk Retention Reporter to create the Market Analysis and Financial Stability Supplement. The Supplement will add to this analysis and will include a review of the state of the RRG marketplace.

As always, I hope you find this information applicable and informative. If you have any questions, comments or suggestions, please contact me at dpowell@demotech.com. Also, you can follow me on Twitter, @powdoug, or connect with me on LinkedIn, www.linkedin.com/in/powdoug.

Thank you,nk you,

Douglas A. Powell | Senior Financial Analyst, Demotech, Inc.

Opening Remarks

Zap this to discover the benefits of being assigned a Financial Stability Rating®.

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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.

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.

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.

Women in Insurance Global Conference

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.

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!

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.

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.

In reviewing the reported financial results of risk retention groups (RRGs), one gets the impression that this is a group of insurers with a great deal of financial stability. Based on year-end 2012 reported financial information, RRGs continue to collectively provide specialized coverage to their

insureds. Over the past five years, RRGs have remained committed to maintaining adequate capital to handle losses. It is important to note that ownership of an RRG is restricted to the policyholders of the RRG. This unique ownership structure required of RRGs may be a driving force in the strengthened capital position exhibited by RRGs.

Since RRGs are restricted to liability coverage, they tend to insure medical providers, product manufacturers, law enforcement officials and contractors, as well as other professional industries. While RRGs reported direct premium written in eleven lines of business in 2012, more than 50 percent of this premium was contained in the medical professional liability lines.

Balance Sheet Analysis

Comparing the last five years of results, cash and invested assets, total admitted assets and policyholders’ surplus have all continued to increase at a faster rate than total liabilities (figure 1). The level of policyholders’ surplus becomes increasingly important in times of difficult economic conditions, as properly capitalized insurers can remain solvent while facing uncertain economic conditions.

Since 2008, cash and invested assets increased 40.5 percent and total admitted assets increased 33.9 percent. More importantly, over a five year period from 2008 through 2012, RRGs collectively increased policyholders’ surplus 71.5 percent. This increase represents the addition of more than $1.4 billion to policyholders’ surplus. During this same time period, liabilities increased only 13.7 percent, slightly more than $500 million. These reported results indicate that RRGs collectively are adequately capitalized and able to remain solvent if faced with adverse economic conditions or increased losses.

Liquidity, as measured by liabilities to cash and invested assets, for year-end 2012 was approximately 65.4 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 as liquidity was reported at 69.5 percent at year-end 2011. Moreover, this ratio has improved steadily each of the last five years.

Loss and loss adjustment expense (LAE) reserves represent the total reserves for unpaid losses and unpaid LAE. This includes reserves for any incurred but not reported losses as well as supplemental reserves established by the company. The cash and invested assets to loss and LAE reserves ratio measures liquidity in terms of the carried reserves. The cash and invested assets to loss and LAE reserves ratio for year-end 2012 was 236.9 percent and indicates an improvement over 2011, as this ratio was 214 percent. These results indicate that RRGs remain conservative in terms of liquidity.

In evaluating individual RRGs, Demotech, Inc. prefers companies to report leverage of less than 300 percent. Leverage for all RRGs, as measured by total liabilities to policyholders’ surplus, for year-end 2012 was 123.3 percent. This indicates an improvement for RRGs collectively as leverage was reported at 138.4 percent at year-end 2011.

The loss and LAE reserves to policyholders’ surplus ratio for year-end 2012 was 79.7 percent and indicates an improvement over 2011, as this ratio was 93 percent. The higher the ratio of loss reserves to surplus, the more an insurer’s stability is dependent on having and maintaining reserve adequacy.

In regards to RRGs collectively, the ratios pertaining to the balance sheet appear to be appropriate.

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RRGs Report Financially Stable Results at Year-End 2012 Financial analysis of Risk Retention Groups based on reported historical results through year-end 2012.

Douglas A Powell | Senior Financial Analyst, Demotech, Inc.

Featured Article

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Short‐term Assets

Net Admitted Assets

Liabilities

Policyholders Surplus

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$1 

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$3 

20122011201020092008

Figure 1 - RRG Balance Sheet Metrics (In Billions)

Premium Written Analysis

RRGs collectively reported $2.6 of billion direct premium written (DPW) at year-end 2012, an increase of nearly 5 percent over 2011. RRGs reported $1.3 billion of net premium written (NPW) at year-end 2012, an increase of 3.7 percent over 2011. These increases are favorable and reasonable.

The DPW to policyholders’ surplus ratio for RRGs collectively for year-end 2012 was 74.3 percent and indicates an improvement over 2011, as this ratio was 78.1 percent. The NPW to policyholders’ surplus ratio for RRGs for year-end 2012 was 36.6 percent and indicates an improvement over 2011, as this ratio was 38.9 percent.

An insurer’s DPW to surplus ratio is indicative of its policyholders’ surplus leverage on a direct basis, without consideration for the effect of reinsurance. An insurer’s NPW to surplus ratio is indicative of its policyholders’ surplus leverage on a net basis. An insurer relying heavily on reinsurance will have a large disparity in these two ratios.

A DPW to surplus ratio in excess of 600 percent would subject an individual RRG to greater scrutiny during the financial review process. Likewise, a NPW to surplus ratio greater than 300 percent would subject an individual RRG to greater scrutiny. In certain cases, premium to surplus ratios in excess of those listed would be deemed appropriate if the RRG had demonstrated that a contributing factor to the higher ratio is relative improvement in rate adequacy.

In regards to RRGs collectively, the ratios pertaining to premium written appear to be conservative.

Income Statement Analysis

The profitability of RRG operations remains positive (figure 2). RRGs reported an aggregate underwriting gain for 2012 of nearly $181 million, an increase of 19.7 percent over the prior year, and a net investment gain of nearly $221 million, an increase of 6.7 percent over the prior year. RRGs collectively reported net income of over $324 million, an increase of 8.6 percent over the prior year. Looking further back, RRGs have collectively reported an underwriting gain since 2004 and positive net income at each year-end since 1996.

The loss ratio for RRGs collectively, as measured by losses and loss adjustment expenses incurred to net premiums earned, for year-end 2012 was approximately 55.7 percent and indicates an improvement over 2011, as the loss ratio was

59.6 percent. This ratio is a measure an insurer’s underlying profitability on its book of business.

The expense ratio, as measured by other underwriting expenses incurred to net premiums written, for year-end 2012 was 28.8 percent and was comparable to 2011, as the expense ratio was reported at 28 percent. This ratio measurers

an insurer’s operational efficiency in underwriting its book of business.

The combined ratio, loss ratio plus expense ratio, for year-end 2012 was 84.5 percent and indicates an improvement over 2011, as the combined ratio was reported at 87.6 percent. This ratio measures an insurer’s overall underwriting profitability. A combined ratio of less than 100 percent indicates an underwriting profit.

Regarding RRGs collectively, the ratios pertaining to income statement analysis appear to be appropriate. Moreover,

these ratios have remained fairly stable each of the last five years and well within a profitable range (figure 3).

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The year-end results of RRGs indicate that these specialty insurers continue to exhibit financial stability.

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2008 2009 2010 2011 2012

Underwriting Income

Investment Income

Net Income

Figure 2 - RRG Income (In Millions)

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100%Combined Ratio Loss Ratio Expense Ratio

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2008 2009 2010 2011 2012

Figure 3 - RRG Ratios - Total

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No. of RRGs Liquidity

Cash/ Losses & LAE Res. Leverage

Losses & LAE Res./

PHSDPW/ PHS

NPW/ PHS Loss Ratio

Expense Ratio

Combined Ratio

One Year Loss Dev./

PHS

Two Year Loss Dev./

PHS

Net Underwriting Gain (Loss)

Net Investment Gain (Loss)

Net Income (Loss)

Commercial Auto 19 90.3% 206.5% 172.7% 92.7% 143.8% 67.9% 69.2% 26.7% 95.9% 0.0% 0.0% $1.1M $4.6M $4.9M

Medical Professional (Claims-made) 128 69.1% 229.3% 136.6% 86.2% 75.7% 43.3% 53.6% 27.6% 81.2% -4.8% -8.4% $139.4M $116.9M $206.8M

Medical Professional (Occurrence) 10 82.7% 166.7% 156.6% 113.5% 99.5% 48.9% 79.7% 11.9% 91.6% 0.0% 0.0% $4.2M $12.0M $18.4M

Other (Claims-made) 47 45.7% 351.6% 70.6% 43.9% 72.4% 20.4% 44.4% 36.0% 80.4% -1.9% -3.8% $40.1M $54.5M $68.6M

Other (Occurrence) 38 74.2% 189.1% 172.7% 123.0% 67.7% 37.5% 65.4% 34.6% 100% -1.3% -1.5% -$9.2M $31.4M $21.0M

Figure 4 - Key Ratios and Metrics - 12/31/12

Mr. Powell has nearly ten years of progressively responsible experience involving financial analysis and business consulting. Email your questions or comments to Mr. Powell at dpowell@demotech.com. Follow Mr. Powell on Twitter, @powdoug.

Loss and Loss Adjustment Expense Reserve Analysis

A key indicator of management’s commitment to financial stability, solvency and capital adequacy is their desire and ability to record adequate loss and loss adjustment expense reserves (loss reserves) on a consistent basis. Adequate loss reserves meet a higher standard than reasonable loss reserves. Demotech views adverse loss reserve development as an impediment to the acceptance of the reported value of current, and future, surplus and that any amount of adverse loss reserve development on a consistent basis is unacceptable. Consistent adverse loss development may be indicative of management’s inability or unwillingness to properly estimate ultimate incurred losses.

RRGs collectively have reported adequate loss reserves at year-end 2012 as exhibited by the one-year and two-year loss development results. The loss development to policyholders’ surplus ratio measures reserve deficiency or redundancy in relation to policyholder surplus and the degree to which surplus was either overstated, exhibited by a percentage greater than zero, or understated, exhibited by a percentage less than zero.

The one-year loss development to prior year’s policyholders’ surplus for 2012 was -7.2 percent and indicates an improvement over 2011, as this ratio was reported at -6 percent. The two-year loss development to second prior year-end policyholders’ surplus for 2012 was -12.2 percent and indicates a diminishment over 2011, as this ratio was reported at -14.1 percent.

In regards to RRGs collectively, the ratios pertaining to loss reserve analysis appear to be favorable.

Analysis by Primary Lines of Business

The financial ratios calculated based on the year-end results of the various primary lines of business appear to be reasonable (figure 4). Also, the RRGs have continued to report changes in DPW within a reasonable threshold (figure 5). It is typical for insurers’ financial ratios to fluctuate year over year. Moreover, none of the reported results are indicative of a continuing negative trend.

Jurisdictional Analysis

Much like insurers, it is typical for jurisdictions to compete for new business. Some of the factors that may impact an insurer’s decision to do business in a certain jurisdiction include minimum policyholders’ surplus requirements and the premium tax rate. RRGs have continued to report changes in DPW, on a jurisdictional basis, within a reasonable threshold (figure 6). (A more extensive breakout of DPW by line of business by jurisdictions for year-end 2012 is available in figure 7.)

Conclusions Based on 2012 Results

Despite political and economic uncertainty, RRGs remain financially stable and continue to provide specialized coverage to their insureds. The financial ratios calculated based on year-end results of RRGs appear to be reasonable, keeping in mind that it is typical for insurers’ financial ratios to fluctuate over time.

The year-end results of RRGs indicate that these specialty insurers continue to exhibit financial stability. It is important to note again that while RRGs have reported net underwriting gains and net profits, they have also continued to maintain adequate loss reserves while increasing premium written

year over year. RRGs continue to exhibit a great deal of financial stability.

Boiler & Machinery 731 757 656 187 0Comm'l Auto Liab 118,029 101,678 112,588 90,542 88,739Fidelity 9,812 9,847 9,841 10,512 0Med Prof Liab (Claims Made) 1,307,747 1,263,731 1,277,284 1,275,282 1,228,567Med Prof Liab (Occurrence) 135,916 126,002 106,754 108,202 106,662Oth Liab (Claims) 675,951 676,354 656,948 718,419 709,548Oth Liab (Occurrence) 343,105 295,876 297,928 320,643 314,715Other P&C 1,707 1,262 1,093 1,014 1,384Product Liab (Claims) 1,668 1,435 1,316 1,474 1,828Product Liab (Occ) 2,307 1,622 681 0 0

Total 2,596,974 2,478,566 2,465,088 2,526,275 2,451,443

Line of BusinessDPW

12/31/12DPW

12/31/11DPW

12/31/10DPW

12/31/09DPW

12/31/08

Figure 5- Direct Premium Written by Lines of Business (000’s omitted)

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Alabama 21,560 20,059 19,096 19,050 19,105Alaska 5,014 5,047 5,480 5,753 6,163Arizona 44,315 44,732 57,684 45,569 49,407Arkansas 16,619 12,677 12,106 9,922 10,556California 231,371 219,391 219,134 234,037 233,428Colorado 36,309 30,629 28,693 27,841 29,592Connecticut 65,368 66,426 70,706 85,992 82,533Delaware 28,550 29,654 27,238 19,773 16,482District of Columbia 51,354 47,049 44,168 47,507 54,178Florida 129,798 105,430 100,734 100,634 101,940Georgia 34,858 34,978 32,651 34,258 37,166Hawaii 6,395 6,136 5,208 5,071 5,265Idaho 9,120 8,754 8,925 11,515 10,467Illinois 81,536 84,963 83,252 86,594 85,082Indiana 48,606 48,116 43,586 44,935 42,229Iowa 8,212 9,679 8,443 7,972 7,826Kansas 11,693 11,995 10,986 11,678 10,046Kentucky 26,988 27,436 25,643 30,647 32,663Louisiana 18,118 15,504 14,602 13,172 12,466Maine 8,327 8,089 9,204 8,977 8,920Maryland 79,510 80,665 85,696 97,659 83,848Massachusetts 175,261 177,153 172,156 176,098 159,043Michigan 36,119 35,532 30,159 28,900 29,117Minnesota 14,660 13,790 14,782 12,719 13,195Mississippi 23,457 23,508 24,033 25,576 26,910Missouri 36,523 39,325 37,449 39,353 39,787Montana 21,802 22,607 21,848 19,413 22,168Nebraska 13,289 11,035 9,807 8,350 7,279Nevada 25,494 23,901 24,325 25,044 28,109New Hampshire 7,007 6,724 6,065 6,150 6,370New Jersey 73,736 69,924 70,133 70,227 64,888New Mexico 15,137 15,251 14,863 14,146 14,488New York 377,271 346,761 360,028 364,920 328,736North Carolina 29,470 27,996 29,581 27,036 25,709North Dakota 2,050 1,814 1,520 1,442 1,566Ohio 44,153 42,793 43,392 46,347 52,616Oklahoma 16,892 15,992 15,711 14,716 15,597Oregon 23,074 20,913 17,820 16,041 20,692Pennsylvania 383,853 367,620 367,165 360,866 346,719Rhode Island 6,480 6,448 6,397 6,912 7,857South Carolina 12,511 10,332 15,369 47,370 13,070South Dakota 2,350 2,290 1,976 1,938 2,059Tennessee 19,828 17,536 16,737 17,043 16,211Texas 101,805 90,096 86,918 87,570 100,305Utah 14,207 17,328 11,803 9,559 9,883Vermont 6,405 6,926 6,667 6,137 6,222Virginia 43,270 41,660 44,435 43,243 42,369Washington 45,756 43,278 41,454 42,032 55,351West Virginia 26,779 24,901 23,959 21,573 18,742Wisconsin 12,369 11,734 11,100 11,680 11,972Wyoming 9,266 9,046 8,054 7,143 7,478American Samoa 0 0 0 0 0Guam 433 419 421 416 402Puerto Rico 229 143 139 168 122U.S. Virgin Islands 911 911 923 879 916Northern Mariana Islands 57 51 50 49 58Canada 242 263 130 119 119Aggregate Other Alien 22,516 22,220 22,229 23,952 23,284Total 2,608,283 2,485,630 2,472,833 2,533,686 2,458,770

DPW12/31/11

DPW12/31/10

DPW12/31/09State

DPW12/31/12

DPW12/31/08

Figure 6 - Direct Premium Written by State (000’s omitted)

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Other P&CAlabama 55 5,097 1,016,312 0 5,737,793 10,231,211 4,508,921 0 39,672 0 21,539,006Alaska 34 5,199 60,470 0 387,249 3,880,403 614,975 0 65,822 0 5,014,118Arizona 72 1,850 2,113,318 73,625 27,375,630 9,259,596 5,342,002 0 56,053 630 44,222,704Arkansas 56 7,843 9,259,492 0 2,887,518 1,794,828 2,554,534 0 110,955 0 16,615,170California 89 73,652 14,269,226 1,477,026 112,349,203 61,339,096 38,883,555 0 434,664 3,210 228,829,632Colorado 67 4,922 706,263 151,750 16,987,776 9,701,279 8,602,905 0 129,429 5,400 36,289,724Connecticut 58 4,594 796,357 99,800 48,341,191 9,335,513 6,706,578 0 81,317 0 65,365,350Delaware 52 4,629 412,747 0 3,675,570 9,580,493 14,869,075 0 5,929 0 28,548,443District of Columbia 43 674 650,401 5,225 5,571,140 39,952,883 5,107,819 0 0 0 51,288,142Florida 82 4,407 1,659,506 2,550 89,957,403 22,077,385 15,614,290 0 403,125 24,090 129,742,756Georgia 67 11,910 3,375,571 0 10,364,457 17,779,812 3,229,264 0 34,742 7,260 34,803,016Hawaii 35 2,636 211,475 0 1,686,086 1,895,898 2,597,494 0 0 0 6,393,589Idaho 49 1,836 184,807 0 2,827,184 3,912,071 817,257 0 0 0 7,743,155Illinois 78 40,450 1,982,561 307,012 30,691,295 33,685,398 14,691,019 0 120,774 8,760 81,527,269Indiana 70 33,784 1,320,385 0 33,305,885 9,809,085 3,926,889 0 76,563 13,740 48,486,331Iowa 51 8,240 413,272 103,500 2,989,894 3,479,904 1,196,204 0 2,396 0 8,193,410Kansas 48 3,171 432,208 312,300 2,758,946 6,237,001 1,865,881 0 65,635 0 11,675,142Kentucky 63 6,262 843,297 0 15,480,648 8,331,652 2,106,611 0 209,945 0 26,978,415Louisiana 55 8,962 3,976,715 0 4,141,608 6,246,113 3,684,630 0 16,982 0 18,075,010Maine 38 5,654 179,618 0 3,925,940 3,095,398 1,115,059 0 0 0 8,321,669Maryland 64 17,650 2,213,348 988,200 52,961,419 17,380,142 5,716,499 0 2,500 6,750 79,286,508Massachusetts 58 23,719 190,984 1,180,580 126,783,524 34,684,530 12,353,860 0 10,951 0 175,228,148Michigan 60 15,456 1,569,268 0 19,164,843 12,332,075 2,971,860 0 52,112 0 36,105,614Minnesota 49 39,672 393,403 5,335 4,194,148 6,208,979 3,590,947 0 17,530 8,130 14,458,144Mississippi 46 12,235 768,996 0 18,879,511 2,466,150 1,323,789 0 0 0 23,450,681Missouri 61 16,426 1,636,464 153,000 15,116,195 13,812,089 5,594,422 0 164,865 0 36,493,461Montana 43 1,328 1,216,277 0 12,503,234 4,182,937 394,834 0 24,153 0 18,322,763Nebraska 45 4,239 567,315 28,820 3,285,849 2,044,201 7,355,588 0 0 0 13,286,012Nevada 64 15,510 780,793 0 15,111,473 4,864,751 4,653,577 0 41,347 9,300 25,476,751New Hampshire 47 7,150 190,968 0 2,456,086 1,773,555 2,569,252 0 7,987 0 7,004,998New Jersey 82 29,418 12,971,999 570,245 31,454,260 16,301,271 11,949,410 0 0 0 73,276,603New Mexico 50 1,036 443,644 0 9,088,028 3,071,004 1,874,327 0 170,811 0 14,648,850New York 89 13,789 2,136,693 1,796,962 242,906,618 82,566,615 39,842,453 1,707,396 154,275 0 371,124,801North Carolina 68 30,640 1,257,510 0 15,850,610 8,715,799 3,520,047 0 34,968 6,180 29,415,754North Dakota 27 2,074 55,637 0 136,054 1,434,233 266,813 0 147,777 0 2,042,588Ohio 79 16,247 1,783,285 0 21,089,388 15,814,510 5,184,067 0 231,303 0 44,118,800Oklahoma 58 14,986 809,949 0 10,854,721 2,264,558 2,701,750 0 158,447 0 16,804,411Oregon 58 9,641 2,281,607 0 8,180,868 5,810,054 6,737,926 0 27,578 0 23,047,674Pennsylvania 104 67,402 15,617,037 1,872,620 302,257,473 32,007,542 31,842,535 0 55,323 0 383,719,932Rhode Island 40 4,250 184,564 0 1,899,530 1,945,444 2,439,934 0 0 0 6,473,722South Carolina 61 3,090 1,014,717 8,578 4,009,419 6,331,603 1,089,619 0 12,957 10,500 12,480,483South Dakota 30 464 56,421 0 188,187 1,834,695 269,471 0 0 0 2,349,238Tennessee 63 28,588 1,330,158 0 8,240,085 7,861,941 2,242,299 0 79,763 0 19,782,834Texas 84 29,555 11,159,811 532,997 26,837,795 36,826,791 25,740,224 0 494,909 38,460 101,660,542Utah 44 15,565 4,224,637 0 3,170,824 4,747,107 2,039,543 0 0 0 14,197,676Vermont 44 2,276 300,954 0 612,797 2,888,318 2,599,268 0 0 0 6,403,613Virginia 75 17,577 3,943,545 28,080 14,504,353 16,991,267 7,672,926 0 0 3,690 43,161,438Washington 74 15,988 4,385,894 47,800 21,106,825 12,658,352 6,924,076 0 137,257 0 45,276,192West Virginia 50 9,867 296,733 0 18,042,172 7,479,339 914,818 0 29,507 0 26,772,436Wisconsin 41 25,723 350,732 66,244 3,083,156 7,280,686 1,493,586 0 59,611 0 12,359,738Wyoming 38 3,457 31,590 0 5,220,839 2,515,855 763,576 0 0 0 8,535,317American Samoa 0 0 0 0 0 0 0 0 0 0 0Guam 2 0 0 0 0 185,612 247,677 0 0 0 433,289Puerto Rico 3 0 0 0 5,050 224,079 0 0 0 0 229,129U.S. Virgin Islands 4 0 0 0 4,901 777,018 128,988 0 0 0 910,907Northern Mariana Islands 1 0 0 0 0 56,712 0 0 0 0 56,712Canada 2 0 0 0 0 236,795 0 0 4,996 0 241,791Aggregate Other Alien 5 0 0 0 0 22,569,132 0 0 0 0 22,569,132

730,790 118,028,934 9,812,249 1,440,642,651 672,770,760 343,044,923 1,707,396 3,974,930 146,100 2,590,858,733

Product Liab

RRGsWriting inState Warranty Total

Other LiabClaims Made

Other LiabOccurrenceFidelity

MedicalProf Liab

CommercialAuto Liab

Total

StateBoiler &

Machinery

Figure 7- Direct Premium Written by Lines of Business by State - 12/31/12

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The Risk Retention Reporter (RRR) and Demotech, Inc. have partnered to create an in-depth analysis of the risk retention group (RRG) marketplace to be published in conjunction with the Risk Retention Reporter’s annual book, the Risk Retention Group Directory and Guide. The Market Analysis and Financial Stability Supplement will be available as a supplement to the 2013 edition of the Risk Retention Group Directory and Guide. The supplement will review the state of the RRG marketplace in the context of trends that developed from 2008 through 2012.

“As risk retention groups have grown into a major alternative to traditional insurance, with more than 250 companies generating over $2.5 billion of revenue, there is increasing demand for data and analysis of the sector’s marketplace impact and financial strength. Our new report draws upon Demotech’s extensive expertise and long experience in rating RRGs combined with the Risk Retention Reporter’s in-depth reporting on industry trends,” said James Cutts, publisher of the Risk Retention Reporter and the Risk Retention Group Directory and Guide.

Joseph Petrelli, President of Demotech, added, “This Supplement will help risk retention groups make informed decisions and give those working in the risk retention group marketplace detailed data on industry trends. It will become an important resource for RRGs and industry analysts that want to remain leaders.”

The Supplement will add to Demotech’s quarterly analysis, Analysis of Risk Retention Groups. “We are delighted to have partnered with the Risk Retention Reporter to publish this new resource,” said Douglas Powell, Senior Financial Analyst. “Combining Demotech’s analytical capabilities and the RRR’s long-history of covering the industry will provide the ingredients for a robust companion publication. In fact, we believe this Supplement will become an essential reference for anyone working in the risk retention group marketplace.”

The Supplement will have four sections:

Section I – A review of trends by business area in the RRG marketplace focusing on 2012 financial information in the context of the prior five years of data.

Section II – A review of financial stability data from 2008 through 2012.

Section III – An in-depth look at the RRG marketplace by business area, including trends in premium, policyholder count and the financial stability of each sector.

Section IV – Financial data for individual RRGs with a comparison to industry benchmarks.

Karrie Hyatt, Editor of Risk Retention Reporter, managed the project and Powell provided financial data and analysis.

The Market Analysis and Financial Stability Supplement will be included as a companion to the Risk Retention Group Directory and Guide. The CD-Rom version will contain files for both the Directory and Supplement on a single disc. The price for either the printed books or the CD-Rom is $445. Pre-orders can be placed online at www.rrr.com/order.

Special Announcement

Risk Retention Reporter and Demotech Partner to Release Supplemental PublicationBy Douglas A Powell | Senior Financial Analyst, Demotech, Inc.

Zap this to jump to the Risk Retention Reporter’s online order form and order your copy of the 2013 Edition of the Risk Retention Group Directory and Guide. The Market Analysis and Financial Stability Supplement is included in the purchase price.

Financial Stability Ratings® look beyond the size of an insurer to evaluate stability based on insurance fundamentals.

Demotech Levels the Playing Field for Risk Retention Groups

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.

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How many federal court decisions will it take to deter some states from throwing up roadblocks to the legal operation of risk retention groups? A few weeks ago, the Ninth Circuit Court of Appeals cited the clear language of the Liability Risk Retention Act of 1986 (LRRA) to declare the right of RRGs to operate free of most regulation by states other than their state of domicile.

In this case, the Ninth Circuit affirmed a District Court ruling that under federal law the state cannot deny an RRG the right to do business in the state. As in other cases where states have attempted to impose requirements on RRGs that violate federal law, the Court of Appeals issued an unqualified opinion upholding the preemption provisions of the LRRA. However, challenging the state was a long and costly process that could be unaffordable for many RRGs.

In 2010, after nine years of doing business in Nevada, the Alliance of Non-Profits for Insurance Risk Retention Group (ANI) was ordered by then Nevada Commissioner of Insurance, Brett Barratt, to cease writing auto liability insurance in the state as it was not an “authorized insurer” under Nevada law. ANI won a summary judgment in the District court finding that the LRRA preempts state regulation over RRGs. The three-judge Appellate panel affirmed the lower court decision stating that, “The LRRA broadly preempts any state law, rule, regulation or order to the extent that such law, rule, regulation or order would … make unlawful, or regulate, directly or indirectly the operation of a risk retention group.”

The ruling in the ANI case is one in a series of court decisions confirming the operating authority of RRGs in non-domiciliary states. In 1992, a Pennsylvania challenge to the right of an RRG that insured limousine companies to operate in the state was struck down under federal preemption. In 1997, the National Risk Retention Association (NRRA) and three RRGs won a judgment against Louisiana’s onerous registration and fee requirements. In 2000, National Warranty Insurance disputed an Oregon law requiring that service contract liability insurance be written by an “authorized” insurer and secured a ruling that the law violated the preemption provisions of the LRRA. In 2001, the Attorney’s Liability Assurance Society and the Housing Authority RRG challenged Michigan’s imposition of certain fees and won. In 2008, a federal court issued a preliminary injunction against a California Department of Insurance “cease and desist” order that interfered with the operation of Auto Dealers RRG.

Defending the LRRA has been NRRA’s top priority for more than 25 years. We have joined with RRGs in some cases and have filed amicus briefs in others. At the same time, we have engaged with state governments and regulatory authorities to gain decisions favorable to the industry without going to court. Most RRGs are small companies, formed by individual practitioners and affiliated groups to provide stable, affordable liability insurance to their members. Faced with the specter of a costly court fight, it is understandable that some choose to comply with burdensome regulation outside their home states just to stay in business. The NRRA continues to support these companies in their efforts to assert the right to operate without interference.

Industry Perspective National Risk Retention Association

The long-term solution is to strengthen the LRRA by putting an enforcement mechanism into the law, arguing to legislators and regulators that the LRRA provided a right without a remedy. For several years, along with a coalition, NRRA advocated legislation to amend the LRRA by creating an arbitration mechanism to resolve disputes without litigation. Unfortunately, due to the preoccupation of Congress on other issues, we have not mustered enough support in the House and Senate to enact the legislation. Bills were introduced, but they did not move as Congress focused on other matters. Amending the act remains a priority, but until that happens, the NRRA will continue to fight the good fight in the courts.

Clearly, the Ninth Circuit Court ruling in the ANI case is a victory for the industry, albeit a mixed victory. The Court declined to uphold an award of attorneys’ fees to ANI on grounds that the LRRA’s “preemption provision did not unambiguously confer a right to be free from state law” under the US Constitution, distinguishing in its opinion the difference between a statutory versus a constitutional right. While NRRA, and no doubt others, are disappointed with the Court’s decision to deny attorneys’ fees, it is important to note that attorneys’ fees have been granted in other cases, including Greenfield v. National Warranty, an earlier decision by this very court. NRRA questions the constitutional grounds cited by the Court in the ANI case and will continue to argue for compensating legal fees that RRGs incur when courts rule in their favor. Failure to recover attorneys’ fees is a major deterrent to smaller RRGs asserting their rights and it encourages states to keep the pressure on RRGs to “cave-in” to regulation that is preempted under the LRRA.

The inability to recover attorneys’ fees will not deter larger risk retention groups and associations like NRRA. We will continue to rely on the substantive law of this very favorable decision affirming preemption and at the same time advocate strongly for payment of attorneys’ fees to support our right to resist unlawful overregulation by the states.

It is just a matter of time before we will be able to persuade the lawmakers and the courts that the individual owners of RRGs, like all other citizens, are entitled to be free from discriminatory actions. Meanwhile, NRRA is ready to go to court as many times as it takes to convince states that they cannot win against the unequivocal language of the Liability Risk Retention Act.

Ninth Circuit Court Upholds Preemption of Most State Regulation Over RRGsBy Joseph Deems | Executive Director, National Risk Retention Association

Mr. Deems served as a member and Secretary of the Board of Directors of the National Risk Retention Association (NRRA) prior to serving as Executive Director. He continues to serve as Chairman of the NRRA Government Affairs Committee. Email your questions or comments to Mr. Deems at joe@riskretention.org. Visit www.nrra-usa.org for more information regarding NRRA.

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Examining 2012

Risk retention groups (RRGs) finished 2012 in larger numbers than they began the year, 261 operating RRGs. Formations well out-paced retirements in 2012, with 18 new formations and 13 retirements. The large number of formations last year was the same number as in 2008, at the beginning of the economic recession, when 18 RRGs were formed and eleven retired.

After the large drop off in RRG numbers in 2009 – nine formations and 18 retirements – retirements have held steady over the last three years at about 13 or 14. In 2012, all thirteen retirements occurred during the first two quarters.

Nevada had the most formations in 2012 with five. However, the domicile also lost three RRGs, for a net gain of only two RRGs. Hawaii netted three RRGs last year, licensing three new RRGs and retiring none. South Carolina formed two new RRGs after three years without any new formations. Delaware also netted one new risk retention group. Tennessee, which last licensed a new RRG in the early 1990s, and Oklahoma, which licensed its only other RRG in 2005, each added an RRG in 2012.

Losing RRGs this year were the District of Columbia, which formed three RRGs but retired five, as well as Montana and Vermont, which both had net losses in RRGs, down one each. Arizona gained one RRG and lost one.

Healthcare once again led RRG formations in 2012 with eleven, forming nearly twice as many RRGs as the other business sectors combined. However, the sector also lost nine RRGs, for a net of only two. Healthcare RRG formations and retirements will likely remain volatile in the next two or three years as the Affordable Care Act is implemented throughout the United States. The Financial sector also gained two groups – going from one RRG to three. Environmental and Manufacturing & Commerce sectors both netted one new RRG each. The Leisure sector was the only area to lose any ground as it retired one RRG.

Examining Policyholders and Insureds

RRG insureds and policyholders have been steadily rising over the last five years, even while the market has contracted financially. In 2012, RRG insureds reached over 459,000 and will likely surpass half a million in 2013. RRG policyholders grew to 333,043. RRG policyholders are the members of a risk retention group, while insureds are the number of entities covered by those policies owned by RRG members.

The Risk Retention Reporter has only recently made the distinction between policyholders and number of insureds and began monitoring both individually in 2010. Between 2011 and 2012, policyholders doubled, with much of the increase being fueled by high growth in the Government & Institutions, Healthcare and Property Development sectors.

Government & Institutions grew from 7,090 policyholders in 2011 to 20,353 in 2012 and added two new RRGs during that period. Property Development went from 30,390 policyholders in 2011 to 47,650 in 2012, showing strong growth after a number of years of contraction.

Much of the exponential growth in the Healthcare sector, increasing from 97,970 policyholders in 2011 to 206,420 in 2012, was driven by the Other Healthcare Practitioners subsector and one RRG in particular – Allied Professionals RRG. It tripled the number of policyholders and number of insureds between 2011 and 2012.

Industry Perspective Risk Retention Reporter

The number of insureds grew by 47 percent between 2011 and 2012, increasing from 311,423 to 459,651. However, this is only part of the story, as the number of insureds was 232,286 in 2008. The Government & Institutions, Healthcare, and Transportation sectors were the key business areas driving growth over the last few years.

Government & Institutions saw a small contraction in insureds in 2012, declining by 3.8 percent. However, between 2008 and 2011, the sector grew from 6,352 to 28,568. This expansion was supported by several well-established, successful RRGs, such as United Educators Insurance RRG and The National Catholic RRG, but was also helped by a number of new RRGs formed during the same period.

Just as with number of policyholders, the number of insureds in the Healthcare business area is being spurred by the Other Healthcare Practitioners subarea. However, both the Hospitals & Affiliates and Physicians subareas are also showing strong growth over the last five years. Hospitals & Affiliates has grown from 33,934 in 2008 to 44,809 in 2012. Physicians has had an even more dramatic increase going from 21,557 in 2008 to 43,140 in 2012, adding nearly 5,000 new insureds between 2011 and 2012.

In terms of premium, the Transportation sector was one of the sectors hardest hit during the economic downturn. However, the number of policyholders and the number of insureds has continued to grow. Growth in insureds has been especially strong, going from 7,301 in 2008 to 18,639 last year, an increase of 131 percent. Most of the growth was between 2009 and 2010, but the sector still grew by more than 1,000 between 2011 and 2012.

Looking at 2013

As of the beginning of April, there are 256 operating RRGs. As is usually the case in the first quarter of any year, the number of RRGs has declined. Many RRGs close up shop at the end of the year. Then it takes a few weeks for the news to be released and they are not counted until after the new year. Consequently, the early part of 2013 saw the usual loss of RRGs. Only two new RRGs have been formed so far in 2013, but a number of applications have been submitted to regulators of several popular domiciles. 2013 is proving to be another dynamic year for the RRG marketplace. The insurance market, as a whole, is forecast to see growth in 2013. Changes in the healthcare and health insurance marketplace could have wide-ranging effects on RRGs. These factors, as well as others, have the potential to see the RRG marketplace grow, perhaps not as enthusiastically as in the middle part of the last decade, but definitely with solid growth.

RRG Growth Trends in 2012 and BeyondBy Karrie Hyatt | Managing Editor, Risk Retention Reporter

Ms. Hyatt is the Managing Editor of the Risk Retention Reporter, the leading journal for the risk retention marketplace. The Risk Retention Reporter is the go-to source for risk retention group news. Email your questions or comments to Ms. Hyatt at khyatt@rrr.com. For more information about the Risk Retention Reporter and related publications, visit www.rrr.com.

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Editor’s note: Part 1 of Mr. Magden’s column was published in Analysis of Risk Retention Groups – Third Quarter 2012. Visit http://bit.ly/10CwbZW to read Part 1.

Last quarter, we discussed several tenets of insurance portfolio management, in particular the risk-based capital standards that are both prudent and generally required by regulators. In many cases, risk retention groups (RRGs) abide by the same regulatory framework as general carriers in their state of domicile, meaning a more prescribed range of investments than applies to some of their self-insured brethren such as single parent captives.

The deployment of an insurance entity’s economic capital affects all aspects of its business operation, and the decision-making must take into account various risks, both financial and non-financial. Financial risks surrounding the investment portfolio include the following:

Credit

Duration

Default

Credit spread

Liquidity

Currency

Interest rate risk.

Non-financial risks surrounding the investment portfolio include the following:

Underwriting

Expense

Reserving risk.

Of the aforementioned financial risks, interest rate risk – specifically rising rates – is a concern to most fixed income investors. Yet there appears to be little evidence that interest rates will rise in the near-term and inflation indicators have been subdued. There are areas where insurers need to pay attention, however, and one important area in today’s market is credit risk. As mentioned, RRG portfolios must be built primarily of fixed income components that conform to defined regulatory guidelines. Indeed, aggregate 2012 P&C industry data from SNL Financial indicates that asset allocation breaks down to roughly 74 percent fixed income, 11 percent equity, 2 percent preferred stock, 9 percent cash and 4 percent other. An RRG’s portfolio is often oriented around fixed income segments such as corporate credit, Treasuries and Agencies. (While mortgage-backed securities offer good opportunities for insurance portfolios, they are often avoided due to seeming complexity, a topic for a future column.) Thus it may be presumed more likely that RRGs will first look for additional yield within the asset classes and segments of the fixed income market that are familiar to them.

Industry Perspective Sage Advisory Services

Yields on five, ten and 30-year Treasuries were hovering around 0.7 percent, 1.72 percent and 2.9 percent, respectively, at mid-April 2013. Current interest rates on government agency debt from Fannie Mae, Freddie Mac and the Federal Home Loan Bank are equally paltry. To be sure, there are still some insurance portfolios today built in 2008 “bunker mentality” and are comprised primarily of short Treasuries. There may be less risk of capital volatility for such a portfolio, but it puts tremendous pressure on the other areas of the economic capital structure, most of it probably falling on premiums.

Intuitively then, in this environment an RRG may be inclined to allocate more of its portfolio towards corporates because of the low yields in the Treasury/Agency segments. In so doing, an RRG should be aware that the volume of issuance today is skewing towards lower-rated credits. Corporate issuance hit $1.4 trillion in 2012, and high yield new issuance (credits rated lower than the BBB category) was $329 billion of that total, up from $43 billion in 2008 amidst the financial crisis. Moreover, trading activity – an indication of what is available for purchase in the market – is also up in the A and BBB segments (the lower half of the investment grade universe) as shown in Securities Industry and Financial Markets Association (SIFMA) data. The take-away from all of this is that not only are there a greater number of lower-rated corporate credits being issued, but the availability from day-to-day of fixed income credits, as measured by trading volume, reflects the same trend. Indeed, according to Morningstar data, the average intermediate core bond fund now holds 36 percent in BBB credits versus 22 percent just five years ago. Investors are hungry for yield, and lower-rated issuers are willing to oblige them as they themselves seek to take advantage of low rates.

For an RRG, the word of caution is to pay attention to the portfolio even in territory as seemingly familiar as corporate debt. Credit risk persists, and a portfolio’s liquidity should remain a foremost concern. In a bond market that is providing more opportunity to buy lower-rated credits than it ever has historically, an insurer must stay vigilant in terms of the overall credit quality of its portfolio. Markets have proven themselves to move quickly over the past few years, and volatility can be more pronounced. For a fixed income portfolio that has drifted into lower rated credits in search of yield, this can lead to more rapid risk-based capital erosion, and that becomes a dinner party at which one is at risk of being on the menu rather than simply having a seat at the table.

A Purpose Driven Portfolio - Part 2By Josh Magden | Vice President of Insurance and Institutional Marketing, Sage Advisory Services

Mr. Magden serves as Vice President of Insurance & Institutional Marketing at Sage Advisory Services working with clients including insurance entities, public agencies and nonprofits on mission and liability-driven portfolio solutions. Prior to joining Sage, he was a First Vice President with George K. Baum & Company where he spent a year on the firm’s trading desk and seven years as a banker structuring bond issues. Email your questions or comments to Mr. Magden at jmagden@sageadvisory.com. Visit www.sageadvisory.com for more information about Sage Advisory Services.

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Legal Perspective Demotech, Inc. The Liability Risk Retention Act’s Preemption

of State LawBy W. Burke Coleman, Esq. | Legal Counsel and Compliance Manger, Demotech, Inc.

One of the most significant legal issues facing risk retention groups (RRGs) is their treatment by non-domiciliary states. The McCarran-Ferguson Act has long affirmed that states retain the authority to regulate the “business of insurance,” but not without exception. The Liability Risk Retention Act of 1986 (LRRA) exempts RRGs from much state regulation. In an effort to increase the availability of liability insurance, decrease rates, and promote competition, Congress passed the LRRA to “eliminate state law hurdles to interstate operation.” An RRG’s state of domicile may regulate the formation and operation of the RRG, but non-domiciliary states have far less regulatory power and must allow RRGs to operate within the state without discrimination. The LRRA is intended to protect RRGs from undue interference from state regulators but has created tension between RRGs and some non-domiciliary states.

The interplay between state regulation and the LRRA has often involved the interpretation of two provisions in the LRRA. The LRRA states that RRGs are exempt from any state law that would “make unlawful, or regulate directly or indirectly, the operation of a risk retention group… [or] discriminate against a risk retention group or any of its members.” 15 U.S.C. § 3902(a)(1), (4). Subject to the anti-discrimination provision, a separate provision enables states to “specify acceptable means of demonstrating financial responsibility” which may “include or exclude coverage obtained from an admitted insurance company, an excess lines company, a risk retention group…” 15 U.S.C. § 3905(d). Courts disagree as to how to apply these provisions, with some interpreting the preemptive effects of the LRRA broadly and others favoring the financial responsibility exception.

In one of the earliest cases, a federal court in Pennsylvania interpreted the anti-discrimination provision broadly and found the LRRA to preempt a state law. In Charter Risk Retention Group Ins. Co. v. Rolka, 796 F.Supp. 154 (M.D.Pa. 1992), a Pennsylvania statute required limousine services to have insurance from an insurer authorized to do business in the state, thereby excluding RRGs. The state argued that the financial responsibility exception in the LRRA controlled, allowing it to exclude RRGs. But the Court concluded that to interpret the exception that way would grant states “unlimited discretion to dictate the means of demonstrating financial responsibility [and] would render meaningless the anti-discrimination provisions of the [LRRA].”

Reading the provisions together, the court held that a state may exclude a particular RRG that does not meet the state’s financial responsibility requirements but may not categorically exclude all RRGs because such a law would be discriminatory and would be preempted by the LRRA.

This same issue has come before the Ninth Circuit twice. In Nat’l Warranty Ins. Co. RRG v. Greenfield, 214 F.3d 1073 (9th Cir. 2000) and again in the recent case of Alliance of Nonprofits for Insurance, RRG v. Kipper, 2013 U.S. App. LEXIS 7042, the Ninth

Circuit employed the same analysis as the court in Charter and similarly concluded that the financial responsibility exception in the LRRA allows states to exclude an RRG that is financially unsound or otherwise dangerous to policyholders but not to exclude all RRGs as a group. The court explained that a state law discriminates against RRGs if it differentiates between insurers without an acceptable justification.

While these courts favored the preemptive effects of the LRRA and applied its anti-discrimination provision broadly, other courts have taken a narrower approach to the issue, giving more weight to the exception. In Mears Transp. Group v. Florida, 34 F.3d 1013 (11th Cir. 1994), an RRG challenged a state requirement that for-hire vehicles purchase liability insurance from members of the Florida Insurance Guaranty Association (FIGA). Because RRGs are not eligible to participate in state insolvency guaranty funds they could not insure for-hire vehicles. The Eleventh Circuit found that the Florida statute was not discriminatory because it did not single out RRGs but rather excluded all insurers that are ineligible for membership in FIGA.

The Seventh Circuit followed the Eleventh Circuit’s lead in applying the anti-discrimination provision narrowly and deferring to the financial responsibility exception. In Ophthalmic Mut. Ins. Co. v. Musser, 143 F.3d 1062 (7th Cir. 1998), the court recognized that RRGs are subject to state financial responsibility statutes as long as they do not discriminate against RRGs, but held that “a state can require a licensee to demonstrate that he is insured by a state-licensed insurer, even if this means that non-domestic RRGs turn out to be among the pool of non-qualifying insurers.” According to the Seventh Circuit, the LRRA is designed to prevent state laws “intending to thwart RRGs,” but a state law that only incidentally discriminates against RRGs does not violate the LRRA.

While the LRRA preempts state law and prohibits discrimination, courts have viewed the preemptive qualities and the application of the LRRA differently. Although the recent Ninth Circuit decision represents a positive development for RRGs by affirming the preemption provisions of the LRRA, additional judicial and legislative clarity would enhance the regulatory environment and promote a more competitive and well-defined marketplace for RRGs.

Since joining Demotech, Mr. Coleman has focused on supporting the advancement of the organization’s business interests, as well as providing counsel on all legal issues and compliance matters. Mr. Coleman also supports Demotech’s client companies by providing insight into legal and regulatory developments affecting the insurance industry. He is a member in good standing of the Ohio State Bar Association and the Columbus Bar Association. Email your questions or comments to Mr. Coleman at bcoleman@demotech.com.

®

Risk Retention Groups (RRGs) are subject to the same risk focused examinations as traditional insurance companies. The primary reason for this requirement was precipitated by a large number of failures in the early 2000s. The failure of these RRGs was basically a byproduct of hardening commercial liability markets which created the desire to form RRGs at an unprecedented pace. Prior to 2011, state department of insurance Part A Financial Regulatory standards (laws and regulations) did not apply to RRGs which were formed under federal law. Now RRGs are subjected to the same oversight, including examinations, as traditional insurers. While there are a number of strengthened requirements for RRGs that center on reinsurance, risk limitations, holding company status, investment valuations and other considerations, this specific discussion will be on what RRGs can do to prepare for, and weather, an examination.

While most RRGs are not anywhere near as complex as a traditional insurance company, the examination standards are essentially the same, just on a smaller scale. Recall that David Provost, from the Vermont Department of Financial Regulation, laid out the phases and general considerations of a risk focused examination in Analysis of Risk Retention Groups – Third Quarter 2012 (see http://bit.ly/10CwbZW for his article). The guidance that follows will build on this baseline so that RRG owners and managers can be adequately prepared to meet examination expectations.

First, the absolute best thing to do is to keep the financial analyst at your domiciled state happy. How do you do that? Make sure all your statutory filings are submitted on time. If the analyst assigned to your RRG has questions or concerns, be prompt and forthcoming about what is going on with the RRG. Do not cover up the truth, as it will eventually become evident anyway and the only thing you have done is ruin the trust factor with your regulator ally. This is also important, in that all examinations essentially start with the background information you have provided, plus the analytical work products and the industry concerns that have been documented by the department’s financial analyst. The examiner in charge of your examination will be handed the financial baton from the analyst in charge of your RRG. If the hand off is smooth, the examination pace and finish will be that much faster. Another cost saver would be to ask your RRG manager if they manage several RRGs in your state of domicile; if this is the case, you may have an opportunity to ask your domiciliary department to consolidate several RRG examinations with yours which could potentially lower overall costs due to common management, controls and IT platform.

Regulatory Perspective WithumSmith+Brown, PC

The second most important step for the examiners is gathering information through discussions with management and key advisors (RRG management, actuaries, auditors, accounting staff, Board members, etc.). During these discussions, the examiner is trying to understand if they are engaged, aware of operating considerations, IT operating environment (hint, your RRG manager should have an SSAE16, aka SOC report, to cover key operating and IT controls), investment activities, financial requirements and the overall strategic direction of the RRG.

A lot of what the examiner finds out here will affect their assessment of the inherent risks related to the entity and their examination plans. It cannot be emphasized enough, the more involved, independent and sophisticated your Board is can have a major effect on examiner perspective.

Other key factors considered are regularity of financial reports, review of said reports and the frequency and documentation of those

meetings. Experience of your RRG manager and staff cannot be forgotten either, as it will affect the overall confidence level of the examiner, particularly if your manager does not have experience managing the particular insurance risk housed in your RRG or if the manager is not financially stable. If the RRG can articulate risks and discuss how it mitigates these risks with the examiner through the understanding phase of the engagement, things will progress much more quickly.

The next phase of the examination will center on the risks the examiners have identified as well as what controls are in place to mitigate those risks. It is important that your auditors’ and your actuaries’ workpapers are complete and accurate since they will be leveraged, to the extent possible, by the examiners in evaluating how the auditors and actuaries assessed risks, controls and exposures. Other mitigating factors would include how carefully the Board oversees and monitors the operations of the RRG, how clear are management policies, and whether the RRG manager regularly tests controls and procedures, including compliance with domiciliary state regulations and NAIC guidance. Remember, if

the RRG manager is not testing the effectiveness of its own controls, the examiners will, which in turn will add to the costs of the examination. The overall assessment of residual risk will be factored by the findings related to the control environment of the particular RRG, which in turn will determine the amount of substantive work that may be done.

How RRGs Can Weather Risk Focused Examinations By Lewis Bivona, Jr., CPA, AFE | Insurance Practice Leader, WithumSmith+Brown, PC

Good corporate governance practices, including oversight of your RRG manager, regular substantive documented meetings and review of financial statements are essential.

®

Substantive detail tests are determined by the amount of judgmental residual risk ascribed to the RRG. If controls are critical but the examiner is uncertain that the risk has been mitigated by their previous activities, they will dive into direct tests of details. If there is a concern that the RRG manager may not be financially solvent, they may ask for financial statements of the manager. If the examiner believes that the RRG may have to potentially access a letter of credit, they may actually evaluate the financial strength of the issuing bank.

If your RRG is not reporting or disclosing reconciliations between GAAP and SAP, they may select significant reconciling items and evaluate the accuracy of the GAAP to SAP reporting differences. Claims and reinsurance will certainly be considered due to the general materiality to most RRGs.

If the annual development of claims varies significantly from prior year estimates, it will give examiners pause to question the actuaries’ opinions and calculation, in addition to questioning the reserving methodology overall. This may precipitate an external actuarial opinion or increased analytical work by the examiner to evaluate claims and related LAE, especially in long tail lines. The most important lesson to be learned here is that if you have not performed “what if” or stress scenarios with your RRG and come up with solutions, the examiners will assess these risks in their testing and come up with their own conclusions.

Ultimately, the work performed above will make it into an examination report. If there are findings, you and your RRG manager should be prepared to address them in a timely fashion. Some findings may not make it to the report if they address proprietary information or processes, but they will be addressed in a management letter. Any unresolved issues or perspective concerns will be documented in a supervisory plan that will be followed up on by the financial analyst of your RRG. If your RRG does business in other states, copies of the examination report will be forwarded to them as well.

The most important takeaway is that the more you run your RRG like a miniature insurance company, the better off you will be. Good corporate governance practices, including oversight of your RRG manager, regular substantive documented meetings and review of financial statements, are essential. Your board should also stay abreast of regulatory and industry issues so that they are not unprepared to challenge their RRG manager or to speak intelligently to a state analyst or examiner. Hire or make sure your RRG manager hires seasoned actuaries and accountants that are familiar with your risks and accounting needs, respectively. Make sure your RRG management retains seasoned staff, maintains good internal controls and has external control validation annually done by an independent SOC provider. Last, but not least, make sure you and your RRG manager stay close to your regulators; it is valuable when things are going well and even more so when you might be in a tight spot.

Demotech, Inc. Understands and Actively Supports Risk Retention Groups Demotech, Inc. understands the unique structure and opportunities that RRGs bring to the Property and Casualty industry. In our working relationship with analysts as well as government entities and business associations, Demotech is often called upon for our expertise and perspective.

Today, more than at any time in recent history, insureds, agents and constituents need to have independent verification of financial stability. Since Demotech’s rating methodology is based upon a review and analysis of insurance fundamentals, focused specialists, such as RRGs, are not penalized for operating under restrictions or constraints that limit product line diversification.Financial Stability Rating® PhilosophyFinancial Stability Ratings® (FSRs) are a leading indicator of the financial stability of Property and Casualty insurers and Title underwriters. Demotech’s rating process provides an objective baseline for assessing solvency based upon changes in financial stability, as manifested in an insurer’s balance sheet and income statement. FSRs are based upon a series of quantitative ratios and considerations which together comprise our Financial Stability Analysis Model.

An FSR summarizes Demotech’s opinion as to an 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 Demotech’s opinion as to the relative ability of an insurer to honor meritorious claims during a downturn in general economic conditions as well as a downturn in the underwriting cycle.

Our Financial Stability Analysis Model is the major component of the FSR assignment process. The Financial Stability Analysis Model can be applied to statutory insurance accounting data or data compiled under Generally Accepted Accounting Principles (GAAP).

Demotech’s focus is somewhat unique. While Demotech acknowledges and recognizes 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 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, including a review of the quality and quantity of reinsurance protection.

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 Demotech’s opinion of the ability of the insurer to meet its insurance related obligations based upon our assessment and interpretation of financial information.

Please contact Douglas Powell, Senior Financial Analyst, at dpowell@demotech.com if you would like to discuss the process of being assigned a Financial Stability Rating® (FSR) or the benefits of having a qualified FSR.

Mr. Bivona is the Managing Partner of the Insurance Practice of WithumSmith+Brown, PC. The depth of his experience has been garnered from high-level positions within the public accounting, HMO, consulting and insurance industries as well as a period in HMO regulation. He has been a team leader on many financial condition examinations, both full and limited scope. Email your questions or comments to Mr. Bivona at lbivona@withum.com. Visit www.withum.com for more information about WithumSmith+Brown, PC.

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Listing of RRGsRisk Retention Groups

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Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP

12934 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

CLAIRE VERONICA OYELAJA (646) 808-0596 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

ADVANCED PHYSICIANS INS RRG INC12166 2700 NORTH THIRD STREET, SUITE 3050, PHOENIX, AZ 85004-4620

ED CALDWELL (602) 200-6900 AZPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

AEGIS HEALTHCARE RRG, INC.12252 555 FAIRMOUNT AVENUE, BALTIMORE, MD

BARBARA LABUSKES 410-339-7263-1 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP13677 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

JAY E. CURTIS (802) 864-6301 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP13606 1707 VILLAGE CENTER CIRCLE, SUITE 100, LAS VEGAS, NV 89134-0515

RICK O'BRIEN (702) 938-3175 NVPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

AGRI INSURANCE EXCHANGE RRG28380 5825 LAWTON LOOP EAST DRIVE INDIANAPOLIS, IN 46216-1064

KEVIN MANDEVILLE (317) 541-1800 INPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ALLEGIANT INS CO INC A RRG11965 745 FORT STREET, SUITE 1100, HONOLULU, HI 96813-3800

MARK HIRONAGA (808) 585-3526 HIPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

ALLIANCE OF NONPROFITS FOR INS RRG10023 2386 AIRPORT ROAD BARRE, VT 05641-8629

CINDY L. LYFORD (802) 371-2227 VTPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

ALLIED PROFESSIONALS INSURANCE COMPANY, RRG11710 1100 W. TOWN & COUNTRY RD., STE. 1400, ORANGE, CA US

DOUGLAS JOSEPH HAUSER 714-571-1864 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

ALLIED SERVICES RISK RETENTION GROUP12013 BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384

LEN T. LOGAN (877) 872-7475 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

AMERICAN ASSOC OF OTHODONTISTS RRG10232 15615 NORTH 71ST STREET, SUITE 103, SCOTTSDALE, AZ 85254-2150

REBECCA J. AITCHISON (802) 371-2229 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

AMERICAN BUILDERS INSURANCE COMPANY RRG, INC.12631 27 NORTH 27TH STREET, SUITE 1900, CROWNE PLAZA, BILLINGS, MT

KATIE GRAY 800-226-0793 MTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

AMERICAN CONTRACTORS INS CO RRG12300 12222 MERIT DRIVE, SUITE 1660, DALLAS, TX 75251-3212

AMANDA CHORN (800) 563-6051 TXPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

AMERICAN EXCESS INS EXCHANGE RRG10903 12544 HIGH BLUFF DRIVE, SUITE 430, SAN DIEGO, CA 92130-3052

KATHRYN MICHENER BOUCHE (802) 863-4400 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

AMERICAN FEED INDUSTRY INS CO RRG44202 4685 MERLE HAY ROAD, SUITE 200, DES MOINES, IA 50322-1982

SUSAN P. TINGLEFF (515) 254-0400 IAPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

AMERICAN FOREST CASUALTY COMPANY RRG11590 1605 MAIN STREET, SUIT 800, SARASOTA, FL 34236-5840

TERESA MARIE MATTHEWS (941) 955-0793 SCPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

AMERICAN SAFETY RRG INC25448 100 GALLERIA PARKWAY, SE, SUITE 700, ATLANTA, GA 30339-5947

MATTHEW ROBERT POLLAK (770) 485-4423 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG11534 111 NORTH HIGGINS, FOURTH FLOOR, MISSOULA, MT US

PATRICIA LORRAINE MALONEY 406-523-3908 MTPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

AMERIGUARD RRG INC12171 2386 AIRPORT ROAD BARRE, VT 05641-8629

SCOTT C. STONE (802) 371-2231 VTPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.11598 2555 E. CAMELBACK RD., PHOENIX, AZ

LEE MILIZIA 623-427-3208 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

ARCHITECTS & ENGINEERS INS CO RRG44148 2056 WESTINGS AVENUE, SUITE 20, NAPERVILLE, IL 60563-2495

MICHAEL T. IANNOTTI (800) 437-2342 DEPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ARCOA RISK RETENTION GROUP, INC.13177 1325 AIRMOTIVE WAY, SUITE 100, RENO, NV 89502-3294

MICHELLE RENEE TRIMBLE (602) 263-6755 NVPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP13580 1700 EASTPOINT PARKWAY LOUISVILLE, KY 40223-4140

SUSAN LEDFORD (502) 244-1343 KYPhoneStatement Contact Primary Line of Business Boiler and Machinery Domiciled

ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.12224 177 MEETING STREET, SUITE 470, CHARLESTON, SC 29401-3160

MATT WATSON (843) 853-0446 SCPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

ASSOCIATION OF CERTIFIED MORTGAGE ORIGINATORS RISK RETENTION GROUP, INC.

14425 9550 SOUTH EASTERN AVENUE, SUITE 253, LAS VEGAS, NV 89123-8042

LINDA VILLANI (941) 373-1116 NVPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ATTORNEYS INS MUTUAL OF ALABAMA INC33677 200 INVERNESS PARKWAY BIRMINGHAM, AL 35242-4813

MELANIE T. DIXON (205) 980-0009 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ATTORNEYS INSURANCE MUTUAL RRG INC22670 140 KENNEDY DRIVE SOUTH BURLINGTON, VT 05403-6710

KAREN M. VENNER (802) 651-3377 HIPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ATTORNEYS LIAB ASSUR SOCIETY INC RRG10639 311 SOUTH WACKER DRIVE, SUITE 5700, CHICAGO, IL 60606-6629

KEITH RUSSELL CRAVEN (312) 697-6950 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ATTORNEYS LIAB PROTECTION SOC RRG32450 FLORENCE BUILDING, 111 NORTH HIGGINS AVENUE, SUITE 200, MISSOULA, MT 59802-4401

MARY PATRICIA NORDHAGEN (406) 728-3113 MTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ATTPRO RRG RECIPROCAL RISK RETENTION GROUP13795 1050 K STREET, NW, SUITE 400, WASHINGTON, DC 20001-4448

GARRETT JAMES DAVENPORT (260) 486-0418 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC.13791 111 NORTH HIGGINS AVENUE, SUITE 200, MISSOULA, MT 59802-4401

DANIEL JOHN SEMAN (406) 523-3873 MTPhoneStatement Contact Primary Line of Business Product Liability (Occurrence) Domiciled

BAR VERMONT RISK RETENTION GROUP INC10174 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

JEREMIAH MAHANEY (802) 264-4715 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.12933 40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492

ALICIA M. RUBALCABA (212) 915-8498 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC.14169 1605 MAIN STREET, EIGHTH FLOOR, SARASOTA, FL 34236-5840

ANDREW CARLTON (800) 226-0793 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP13010 9550 SOUTH EASTERN AVENUE LAS VEGAS, NV 89123-8038

MICHAEL T. ROGERS (702) 678-6868 NVPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

BROADLINE RISK RETENTION GROUP, INC.13788 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

MELISSA H. LAROSE (802) 864-1716 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

CALIFORNIA HEALTHCARE INS CO INC RRG44504 9229 SIERRA COLLEGE BOULEVARD ROSEVILLE, CA 95661-5919

JEFFREY DUECK (916) 772-5110 HIPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CALIFORNIA MEDICAL GRP INS CO RRG12180 2999 NORTH 44TH STREET, SUITE 550, PHOENIX, AZ 85018-7295

BRYAN ALAN JONES (303) 388-5688 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CARE RRG, INC.11825 2233 WISCONSIN AVE, N.W., SUITE 310, WASHINGTON, DC

CHARLES HALSTEAD-JOHNSO 802-479-7801 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CAREGIVERS UNITED LIAB INS CO RRG11544 BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384

KIM CONNELLY BLOOMER (802) 371-2251 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP12373 1850 WEST WINCHESTER ROAD, SUITE 109, LIBERTYVILLE, IL 60048-5355

CHAD CURTIS SWIGERT (847) 549-8225 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CASSATT RISK RETENTION GROUP INC10808 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

SCOTT ANDREW MAILLE (802) 264-4711 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP13784 111 NORTH HIGGINS AVENUE, SUITE 200, MISSOULA, MT 59802-4401

DANIEL JOHN SEMAN (406) 523-3873 MTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

CENTRAL PA PHYSICIANS RRG INC11694 177 MEETING STREET, SUITE 470, CHARLESTON, SC 29401-3160

MATT WATSON (843) 853-0446 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.11976 2700 N. THIRD STREET, SUITE 3050, PHOENIX, AZ

GEMMA AGUSTIN TUANQUI 800-226-0793 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG12167 15255 NORTH 40TH STREET, SUITE 109, PHOENIX, AZ 85032-4638

RICHARD P. MARSHALL (602) 952-9532 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CHC CAS RRG11531 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

AMY L. DAIGLE (802) 864-1717 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

CHEROKEE GUARANTEE COMPANY INC., RRG14388 18835 N. THOMPSON PEAK PARKWAY, SUITE 220, SCOTTSDALE, AZ

ANDREW SCOTT MARSON 480-682-4983- AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CIRCLE STAR INS CO RRG11839 58 EAST VIEW LANE, SUITE TWO, BARRE, VT 05641-5324

RENEE LAGUE (802) 479-7803 VTPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

CLAIM PROFESSIONALS LIAB INS CO RRG12172 2386 AIRPORT ROAD BARRE, VT 05641-8629

RAMON ROBERT RAMOS V (802) 371-2275 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

CLARIAN HLTH RRG INC11992 151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238

TONIA A. EPPS (843) 577-1034 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

CLINIC MUTUAL INSURANCE CO RRG43770 1003 BISHOP STREET, SUITE 1220, HONOLULU, HI 96813-6436

JASON L. PALMER (808) 521-0730 HIPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CMIC RISK RETENTION GROUP13756 30 MAIN STREET, SUITE 450, BURLINGTON, VT 05401-8427

SCOTT C. STONE (802) 371-2231 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

COASTAL INS RRG INC11668 509 OLIVER ROAD MONTGOMERY, AL 36117-2207

JOHN MARK KILLINGSWORTH (334) 271-5515 ALPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

COLLEGE LIABILITY INS CO A RECIP RRG44598 745 FORT STREET, SUITE 1100, HONOLULU, HI 96813-3810

TONI KANEHIRA (808) 585-3584 HIPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

COLLEGE RISK RETENTION GROUP, INC.13613 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

JENNIFER L. PETTENGILL (802) 864-2111 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

COLUMBIA NATIONAL RRG INC10803 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

JOHN H. RAYMOND (802) 864-2751 VTPhoneStatement Contact Primary Line of Business Warranty Domiciled

COMCARE PRO INS RECIPROCAL RRG11864 40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492

SHERRY ANN RICKER (802) 264-2086 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

COMMUNITIES OF FAITH RRG INC11807 2711 MIDDLEBURG DRIVE, SUITE 309-A, COLUMBIA, SC 29204-2475

MARY ELIZABETH GAROFALO (941) 373-1114 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

COMMUNITY BLOOD CENTERS EXCH RRG13893 7015 COLLEGE BOULEVARD, SUITE 400, OVERLAND PARK, KS 66211-1671

J. TODD ROSENBAUM (502) 882-4459 INPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

COMMUNITY HEALTH ALLIANCE RECIP RRG11536 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

MELISSA H. LAROSE (802) 864-1716 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

COMMUNITY HOSPITAL RRG11259 2547 WASHINGTON ROAD, 720 SUMMERFIELD COMMONS, UPPER SAINT CLAIR, PA 15241-2557

DONNA B. NORMAND (412) 212-3476 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CONSUMER SPECIALTIES INSURANCE COMPANY RRG10075 2386 AIRPORT ROAD, BARRE, VT US

PAULA A. FRENCH 802-371-2321 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

CONTINUING CARE RRG, INC.11798 223-B HEATLEY STREET, MONCKS CORNER, SC

KATIE GRAY 800-226-0793 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CONTRACTORS INS CO OF NORTH AMER RRG11603 201 MERCHANT STREET, SUITE 2400, HONOLULU, HI 96813-2929

STACEY GIBBS (802) 264-4588 HIPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

CONTROLLED RISK INS CO OF VT RRG10341 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

MELISSA H. LAROSE (802) 864-1716 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A RRG12042 333 SOUTH HOPE STREET, EIGHTH FLOOR, LOS ANGELES, CA 90071-3001

ANDREW SCOTT MARSON (480) 682-4983 HIPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

COVERYS RRG, INC.14160 101 ARCH STREET BOSTON, MA 02110-1129

CAROL LOUISE HICKMAN (617) 330-1755 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CPA MUTUAL INS CO OF AMERICA RRG10164 4923 NORTHWEST 43RD STREET, SUITE C, GAINESVILLE, FL 32606-4460

DAVID D. GUERINO (802) 264-2060 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

CROSSFIT RISK RETENTION GROUP, INC.13720 111 NORTH SEPULVEDA BOULEVARD, SUITE 243, MANHATTAN BEACH, CA 90266-6849

TONY JAMES SCHMIDT (808) 988-3215 MTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

CRUDEN BAY RRG INC11676 30 MAIN STREET, SUITE 450, BURLINGTON, VT 05401-8427

PAULA A. FRENCH (802) 371-2321 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP13655 126 COLLEGE STREET, SUITE 400, BURLINGTON, VT 05401-8456

MERISSA S. BUSHEY (802) 863-2398 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

DELAWARE PROFESSIONAL INSURANCE CO43125 845 THIRD AVENUE, 20TH FLOOR, NEW YORK, NY 10022-6601

I. DAVID GORDON (212) 687-2525 DEPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

DOCTORS & SURGEONS NATIONAL RRG13018 3370 SUGARLOAF PARKWAY SUITE G-2/302, LAWRENCEVILLE, GA US

SARA M CARPENTER 877-614-6425-3 KYPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

DUBOIS MEDICAL RRG11842 1200 G STREET, NW, SUITE 800, WASHINGTON, DC 20005-6705

BRIAN S. KLINE (814) 375-6377 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

EASTERN DENTISTS INS CO RRG10115 126 COLLEGE STREET, SUITE 400, BURLINGTON, VT 05401-8456

KAREN L. MAHONEY (802) 383-0419 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

ELITE TRANSPORTATION RRG INC10125 15615 NORTH 71ST STREET, SUITE 103, SCOTTSDALE, AZ 85254-2150

REBECCA J. AITCHISON (802) 371-2229 AZPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

EMERGENCY CAPITAL MANAGEMENT, LLC, RRG14163 1627 CONNECTICUT AVE NW, SUITE 6, WASHINGTON, DC

MELISSA ANNE HANCOCK 202-802-1439- DEPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)12003 9550 S. EASTERN AVENUE, SUITE 253, LAS VEGAS, NV

BRIAN TROY WINCH 941-373-1105 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

EMERGENCY MEDICINE RRG INC12015 151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238

MANNU LUO (843) 577-1035 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

EMERGENCY PHYSICIANS INS CO RRG11714 1528 EUREKA ROAD, SUITE 102, ROSEVILLE, CA 95661-3047

PAUL SHAMPAY (916) 772-2080 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

EVERGREEN USA RRG INC38466 10 FALCON ROAD LEWISTON, ME 04240-5833

ERIC GILCRIS (802) 264-4577 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

FAIRWAY PHYSICIANS INS CO RRG11840 15255 NORTH 40TH STREET, SUITE 109, PHOENIX, AZ 85032-4638

RICHARD P. MARSHALL (602) 952-9532 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

FAITH AFFILIATED RRG INC11698 ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441

KELLY BOURNE (843) 614-3132 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

FIDUCIARIES RISK RETENTION GROUP, INC.14439 1605 MAIN STREET, SUITE 800, SARASOTA, FL 34236-5823

TERESA MARIE MATTHEWS (941) 955-0793 NVPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

FIRST KEYSTONE RISK RETENTION GROUP, INC.11801 4421 ARAMINGO AVENUE PHILADELPHIA, PA 19124-4101

JOSEPH SCHMIDT (215) 235-5000 SCPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

FIRST MEDICAL INS CO RRG11278 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

JODI K. GUZZARDO (802) 864-6332 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

FORT WAYNE MEDICAL SURETY COMPANY, RRG12625 2555 EAST CAMELBACK ROAD, SUITE 700, PHOENIX, AZ 85016-4264

LEE M. MILIZIA (602) 427-3208 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

FRANKLIN CASUALTY INS CO RRG10842 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

LINDA B. ELLIOTT (802) 864-2750 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

FREDERICKSBURG PROFESSIONAL RISK EXC12016 2386 AIRPORT ROAD BARRE, VT 05641-8629

SCOTT C. STONE (802) 371-2231 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

GABLES RISK RETENTION GROUP, INC.14032 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

JEFFREY M. TUCKER (802) 864-5599 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

GEISINGER INS CORP RRG12000 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

RONDA LYNN DEVINO (802) 264-4593 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

GENERAL EASTERN SKI INS RRG INC10163 76 SAINT PAUL STREET BURLINGTON, VT 05401-4470

DYAN O'HERNE (802) 264-4713 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

GERIC INSURANCE RISK RETENTION GROUP, INC.13782 15615 NORTH 71ST STREET, SUITE 103, SCOTTSDALE, AZ 85254-2150

JAMES SHOOK (802) 371-2273 HIPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

GLOBAL HAWK INSURANCE COMPANY RRG11948 84 PINE STREET SUITE 450, BURLINGTON, VT US

STEPHEN BROWN 802-651-0168 VTPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

GLOBAL INTL INS CO INC A RRG10991 607 14TH STREET, NW, SUITE 900, WASHINGTON, DC 20005-2019

STEVE BEVINS (802) 479-7802 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

GOLDEN INS CO RRG11145 2121 VALLEY SAND STREET LAS VEGAS, NV 89135-1101

LEN CLAPP (303) 996-5446 NVPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.12512 ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441

DAWN M. DINARDO (843) 614-3134 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.13973 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

ANDREW CARLTON (800) 226-0793 NVPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

GRACO RRG INC11581 ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441

DAWN M. DINARDO (843) 614-3134 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

GREEN HILLS INS CO RRG11941 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

JEFFREY M. TUCKER (802) 864-5599 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

GUARDIAN RRG INC11696 40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492

TRISHA L. DESRANLEAU (802) 264-2071 MTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

GUTHRIE RRG12014 151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238

JASON MCMILLAN (843) 577-1032 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

HAMDEN ASSURANCE RRG, INC.13057 30 MAIN STREET, SUITE 330, BURLINGTON, VT 05401-8427

JOSEPH BERNARD PERCY (802) 419-1218 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

HEALTH CARE CAS RRG INC12236 8725 WEST HIGGINS ROAD, SUITE 810, CHICAGO, IL 60631-2734

JOSEPH ROGER HERMAN (773) 864-8280 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

HEALTH NETWORK PROVIDERS MUT INS CO11813 2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104

KATIE GRAY (800) 226-0793 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

HEALTH PROVIDERS INS RECIPROCAL RRG10080 1003 BISHOP STREET, SUITE 1220, HONOLULU, HI 96813-6436

JASON L. PALMER (808) 521-0730 HIPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

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

11832 201 S. MAIN STREET, SUITE 200, ANN ARBOR, MI US

PETER M FEENEY 734 996-2700 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

HEALTHCARE PROVIDERS INS CO RRG11683 BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384

GEOFFREY LEWIS SALMON (404) 835-0454 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

HEARTLAND HEALTHCARE RECIP RRG11998 40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492

DAVID D. GUERINO (802) 264-2060 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

HERITAGE WARRANTY INS RRG INC11097 BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384

KIM CONNELLY BLOOMER (802) 371-2251 SCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

HOME CONSTRUCTION INS CO RRG11950 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

MARY ELIZABETH GAROFALO (941) 373-1114 NVPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

HOUSING AUTHORITY RRG INC26797 189 COMMERCE COURT, P.O. BOX 189, CHESHIRE, CT 06410-0189

PAULETTE ACHILLI (203) 272-8220 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

HOW INSURANCE COMPANY, A RISK RETENTION GROUP41246 11401 CENTURY OAKS TERRACE, SUITE 310, AUSTIN, TX 78758-8702

BRENDA J. STEWART (512) 404-6555 VAPhoneStatement Contact Primary Line of Business Product Liability (Occurrence) Domiciled

ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP11268 1401 H STREET, NW, SUITE 1000, WASHINGTON, DC 20005-2031

CHARLES WARREN BEHR (202) 326-5464 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

INDEMNITY INSURANCE CORPORATION, RRG12018 950 RIDGEBROOK ROAD, SUITE 1500, SPARKS, MD 21152-9390

JEFFREY BRIAN COHEN (410) 472-6000 DEPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

INDIANA HEALTHCARE RECIP RRG11692 40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492

ALIHAN ALIHAN (802) 264-2074 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

INNOVATIVE PHYSICIAN SOLUTIONS RRG12320 2325 EAST CAMELBACK ROAD, SUITE 600, PHOENIX, AZ 85016-3474

WENDY RAE BROWN (602) 337-6247 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

IRONSHORE RISK RETENTION GROUP, INC.14375 1333 H STREET, NW, SUITE 820, WASHINGTON, DC 20005-4707

MELISSA ANNE HANCOCK (802) 881-7142 DEPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

J.M. WOODWORTH RRG, INC.12594 UUMC 3655 BROOKSIDE PARKWAY, SUITE 200, ALPHARETTA, GA US

CAROLYN VERDE 678-781-2400 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

KENTUCKIANA MEDICAL RECIPROCAL RRG11872 201 EAST JEFFERSON STREET, SUITE 104, LOUISVILLE, KY 40202-1250

JAY E. CURTIS (802) 864-6301 KYPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

KENTUCKY HOSPITAL INS CO RRG11939 2501 NELSON MILLER PARKWAY LOUISVILLE, KY 40223-2221

DEBORAH ROSE RILEY (502) 992-4329 KYPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

LAKE STREET RRG INC11803 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

DANIEL S. SCOTT (802) 862-4400 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

LAMMICO RRG, INC.14444 1333 H STREET, NW, SUITE 820E, WASHINGTON, DC 20005-4781

THOMAS LANE MCCORMICK (504) 831-3756 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

LANCET INDEMNITY RISK RETENTION GROUP, INC.13014 9550 S. EASTERN AVENUE, SUITE 253, LAS VEGAS, NV

GEMMA AGUSTIN TUANQUI 800-226-0793 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

LENDERS PROTECTION ASSUR CO RRG11500 1212 NORTH 96TH STREET OMAHA, NE 68114-2274

RONALD LEE WHEELER (402) 399-3325 NEPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY12627 5679 SOUTH REDWOOD ROAD, SUITE 25, SALT LAKE CITY, UT 84123-5464

V. J. PETITT (800) 730-6614 UTPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

LIFE SERVICES NETWORK RECIP INS RRG11958 2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104

TERESA MARIE MATTHEWS (941) 955-0793 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP14084 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

LINDA VILLANI (941) 373-1116 NVPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

LVHN RRG11684 151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238

MANNU LUO (843) 577-1035 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP12554 1925 LOVERING AVENUE WILMINGTON, DE 19806-2157

PATRICK GHISLAIN THERIAULT (802) 861-2630 DEPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

MARATHON FIN INS CO INC RRG11117 1710 CORPORATE CROSSING, SUITE ONE, O'FALLON, IL 62269-3741

STEPHEN D. KANTNER (302) 651-8354 DEPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

MCIC VERMONT INC RRG10697 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

DIANE M. HANSON (802) 652-1571 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

MD RISK RETENTION GROUP, INC.12355 805 MADISON STREET, SUITE 901, SEATTLE, WA 98104-1172

BRENDA M. OLSON (406) 282-0170 MTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

MEDAMERICA MUTUAL RRG INC26257 3000 OAK ROAD, SUITE 600, WALNUT CREEK, CA 94597-2071

CHRISTOPHER PAUL MERTES (925) 949-0101 HIPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

MEDPRO RRG RISK RETENTION GROUP13589 1050 K STREET, NW, SUITE 400, WASHINGTON, DC 20001-4448

GARRETT JAMES DAVENPORT (260) 486-0418 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

MEDSTAR LIABILITY LTD INS CO INC RRG10124 5565 STERRETT PLACE, FIFTH FLOOR, COLUMBIA, MD 21044-2665

LISA M. KANE (802) 864-2120 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

MENTAL HEALTH RISK RETENTION GROUP44237 103 EISENHOWER PARKWAY, SUITE 101, ROSELAND, NJ 07068-1029

MERISSA S. BUSHEY (802) 863-2398 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP11999 148 COLLEGE STREET, SUITE 204, BURLINGTON, VT 05401-8476

THAO T. NGUYEN (802) 861-2930 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

MILLBROOK NMF RISK RETENTION GROUP, INC.14219 360 CONCORD STREET, SUITE 106, CHARLESTON, SC 29401-6303

LAURA ELIZABETH ROEMER (843) 884-5902 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

MMIC RRG, INC.14062 7701 FRANCE AVENUE, SOUTH, SUITE 500, MINNEAPOLIS, MN 55435-5288

JON GARY BEHNKEN (952) 838-6766 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

MOUNTAIN LAKE RISK RETENTION GROUP, INC.13812 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

ANDREW HAMME (802) 264-4592 VTPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

MOUNTAIN LAUREL RRG INC11547 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

AMANDA R. WESCOTT (802) 864-2037 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

MOUNTAIN STATES HEALTHCARE RECIP RRG11585 40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492

DAVID D. GUERINO (802) 264-2060 MTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.12779 ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441

KELLY BOURNE (843) 614-3132 WVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

NASW RISK RETENTION GROUP, INC.14366 1333 H STREET, NW, SUITE 820, WASHINGTON, DC 20005-4707

LEN CLAPP (303) 996-5446 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

NATIONAL ASSISTED LIVING RRG, INC.11806 3740 DAVINCI COURT, STE. 130, NORCROSS, GA

ROSE PATRICK 770-255-4913 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

NATIONAL BUILDERS & CONTRACTORS INS12235 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

GEMMA AGUSTIN TUANQUI (800) 226-0793 NVPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

NATIONAL CATHOLIC RRG10083 148 COLLEGE STREET, SUITE 204, BURLINGTON, VT 05401-8476

MARY MARIO RICHARDS (802) 861-2930 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

NATIONAL CONTRACTORS INS CO INC RRG12293 27 GAGE TERRACE BIGFORK, MT 59911-3544

BRENDA M. OLSON (406) 282-0170 MTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

NATIONAL GUARDIAN RISK RETENTION GROUP36072 4075 COPPER RIDGE DRIVE, TRAVERSE CITY, MI US

MARK A BURNHEIMER 231-946-6200 HIPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

NATIONAL HOME INSURANCE CO RRG44016 ONE DENVER HIGHLANDS, 10375 EAST HARVARD AVENUE, SUITE 550, DENVER, CO 80231-3966

HUGH B. MCCREERY (303) 306-0002 COPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

NATIONAL INDEPENDENT TRUCKERS IC RRG11197 BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384

NICOLE S. HUBLER (802) 371-2249 SCPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.12529 ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441

MICHAEL JOHN COULTER (843) 614-3135 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)10234 2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104

CHARLES HALSTEAD-JOHNSON (802) 479-7801 DCPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

NCMIC RISK RETENTION GROUP, INC.14130 148 COLLEGE STREET, SUITE 204, BURLINGTON, VT 05401-8476

STEPHEN M. BROWN (802) 861-2930 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.12539 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

TERESA MARIE MATTHEWS (941) 955-0793 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP13792 10375 EAST HARVARD AVENUE, SUITE 100, DENVER, CO 80231-3966

BJORN K. HUBBARD (941) 373-1129 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

NEW STAR RISK RETENTION GROUP, INC.12532 151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238

TONIA A. EPPS (843) 577-1034 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG12275 1001 PENNSYLVANIA AVE., N.W., SUITE 400 SOUTH, WASHINGTON, DC

KATIE GRAY 800-226-0793 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP13059 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

LISA M. KANE (802) 864-2120 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

NOVUS INS CO RRG10752 1180 SAM RITTENBERG BOULEVARD, SUITE 235, CHARLESTON, SC 29407-3384

MILES J. HOPKINS (843) 573-4834 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

OASIS RECIPROCAL RISK RETENTION GROUP13644 40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492

GARY A. GRISWOLD (802) 658-9466 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC.12845 27 NORTH 27TH STREET, SUITE 1900, BILLINGS, MT

BJORN K. HUBBARD (941) 373-1129 MTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

OCEAN RRG INC10158 1620 PROVIDENCE ROAD TOWSON, MD 21286-1525

MARY CLAIRE GOFF (877) 587-1763 DCPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

OCEANUS INS CO A RRG12189 BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384

LEN T. LOGAN (877) 872-7475 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

OLYMPIA RISK RETENTION GROUP, INC.13062 2555 EAST CAMELBACK ROAD, SUITE 700, PHOENIX, AZ 85016-4264

KIMBERLY E. WACK (602) 427-3217 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

OMS NATL INS CO RRG44121 6133 NORTH RIVER ROAD, SUITE 650, ROSEMONT, IL 60018-5173

KATHERINE ANN EHMANN (847) 384-0041 ILPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

OOIDA RISK RETENTION GROUP INC10353 58 EAST VIEW LANE, SUITE TWO, BARRE, VT 05641-5324

STEVE BEVINS (802) 479-7802 VTPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

OPHTHALMIC MUTUAL INS CO RRG44105 655 BEACH STREET SAN FRANCISCO, CA 94109-1336

LES J. SCACCALOSI (415) 202-4618 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

ORANGE COUNTY MEDICAL RECIP INS RRG12183 2999 NORTH 44TH STREET, SUITE 550, PHOENIX, AZ 85018-7295

MARY ELIZABETH GAROFALO (941) 373-1114 AZPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

ORDINARY MUTUAL A RRG CORP10171 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

MARK PIDGEON (802) 264-4574 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ORTHOFORUM INSURANCE COMPANY (A RISK RETENTION GROUP)14260 4000 FABER PLACE DRIVE, SUITE 300, NORTH CHARLESTON, SC 29405-8587

JONATHAN J. MCKENZIE (802) 264-2073 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PACE RRG INC11575 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

GARY P. O'HARE (802) 652-1568 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PARATRANSIT INSURANCE COMPANY, RRG44130 1715 AARON BRENNER DRIVE, SUITE 512, MEMPHIS, TN US

ANITA M. PERKINS 802-371-2219 TNPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

PCH MUTUAL INSURANCE COMPANY, RRG11973 1605 MAIN STREET, SUITE 800, SARASOTA, FL

TERESA MARIE MATTHEWS 941-955-0793 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

PEACE CHURCH RRG INC11846 148 COLLEGE STREET, SUITE 204, BURLINGTON, VT 05401-8476

MARY MARIO RICHARDS (802) 861-2930 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PEDIATRICANS INS RRG OF AMER11772 2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104

CHARLES HALSTEAD-JOHNSON (802) 479-7801 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PELICAN INS RRG11587 40 MAIN STREET, SUITE 200, BURLINGTON, VT 05401-8492

JONATHAN J. MCKENZIE (802) 264-2073 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PHOEBE RECIPROCAL RRG12004 177 MEETING STREET, SUITE 470, CHARLESTON, SC 29401-3160

MATT WATSON (843) 853-0446 SCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.13995 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

ANDREW CARLTON (800) 226-0793 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.12746 BUILDING G, 7890 PETERS ROAD, SUITE 106, PLANTATION, FL 33324-4028

ERNEST WILLIAM ARTERBERRY (954) 236-2400 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP12918 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

AMANDA R. WESCOTT (802) 864-2037 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP12507 151 MEETING STREET, SUITE 301, CHARLESTON, SC 29401-2238

CHRISTOPHER CRAIG LEIGH (843) 577-1360 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PHYSICIANS PROFESSIONAL LIABILTY RRG11514 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

STACEY GIBBS (802) 264-4588 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PHYSICIANS REIMBURSEMENT RRG10934 2386 AIRPORT ROAD BARRE, VT 05641-8629

MICHELE EMMONS (802) 371-2221 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

PHYSICIANS SPECIALTY LTD RRG11513 4535 DRESSLER ROAD, NW CANTON, OH 44718-2545

JEFFRY M. DELMAS (802) 371-2252 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP14108 111 NORTH HIGGINS AVENUE, SUITE 200, MISSOULA, MT 59802-4401

DANIEL JOHN SEMAN (406) 523-3873 MTPhoneStatement Contact Primary Line of Business Reinsurance - Nonproportional Assumed Liability Domiciled

PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP13582 C/O WILLIS MANAGEMENT (HAWAII), 1003 BISHOP STREET, HONOLULU, HI 96813-6400

JASON L. PALMER (808) 521-0730 HIPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PINE TREE INS RECIPROCAL RRG12348 2386 AIRPORT ROAD BARRE, VT 05641-8629

SCOTT C. STONE (802) 371-2231 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PINELANDS INS CO RRG INC12198 2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104

ANDREW CARLTON (800) 226-0793 DCPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

PINNACLE CONSORTIUM OF HIGHER ED RRG11980 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

MARCY WATERFALL (802) 864-6269 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

PINNACLE RRG INC11858 2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104

RENEE LAGUE (802) 479-7803 DCPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

PLICO RISK RETENTION GROUP, INC.14205 226 DEAN A. MCGEE AVENUE, OKLAHOMA CITY, OK

BRYAN SCOTTY POTTER 405-815-4825 OKPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PONCE DE LEON LTC RRG, INC.11809 3655 BROOKSIDE PARKWAY, SUITE 200, ALPHARETTA, GA US

CAROLYN VERDE 678-781-2400 FLPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC12497 1620 PROVIDENCE ROAD TOWSON, MD 21286-1525

MARY CLAIRE GOFF (877) 587-1763 MTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

PREFERRED PHYSICIANS MEDICAL RRG44083 9000 WEST 67TH STREET SHAWNEE MISSION, KS 66202-3656

TIMOTHY J. MCGILL MOPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP12613 575 SOUTH SALIMAN ROAD CARSON CITY, NV 89701-5000

JESSICA CONTRERAS (775) 887-2480 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

PROAIR RISK RETENTION GROUP, INC.13179 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

TERESA MARIE MATTHEWS (941) 955-0793 NVPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

PROBUILDERS SPECIALTY INS CO RRG11671 2859 PACES FERRY ROAD, SUITE 800, ATLANTA, GA 30339-5733

CRAIG BOWDEN (770) 257-1709 DCPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

PROFESSIONAL EXCHANGE ASSURANCE COMPANY (A RISK RETENTION GROUP)14461 201 MERCHANT STREET, SUITE 2400, HONOLULU, HI 96813-2929

NADINE TOMIYASU (808) 540-4312 HIPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

PROFESSIONAL MEDICAL INS RRG INC10840 201 MERCHANT STREET, SUITE 2400, HONOLULU, HI 96813-2929

STEPHEN CHONG (808) 540-4323 HIPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

12608 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

MICHAEL A. CZAPLICKE (802) 864-2109 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PROFESSIONALS RISK RETENTION GROUP, INC.13067 27 GAGE TERRACE BIGFORK, MT 59911-3544

BRENDA M. OLSON (406) 282-0170 MTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG11350 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

MARCY WATERFALL (802) 864-6269 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

RED CLAY RISK RETENTION GROUP, INC.13078 14382 US HIGHWAY 19, SOUTH THOMASVILLE, GA 31757-4801

CORY E. BROWN (229) 226-1937 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

RED ROCK RISK RETENTION GROUP, INC.13736 2555 EAST CAMELBACK ROAD, SUITE 700, PHOENIX, AZ 85016-4264

LEE M. MILIZIA (602) 427-3208 AZPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

REPUBLIC RRG12019 1180 SAM RITTENBERG BOULEVARD, SUITE 235, CHARLESTON, SC 29407-3384

ROBERT G. MEETZE (843) 573-4676 SCPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

RESTORATION RISK RETENTION GROUP, INC.12209 58 EAST VIEW LANE, SUITE TWO, BARRE, VT 05641-5324

GEMMA AGUSTIN TUANQUI (800) 226-0793 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

RPX RRG14135 201 MERCHANT STREET, SUITE 2400, HONOLULU, HI 96813-2929

NADINE TOMIYASU (808) 540-4312 HIPhoneStatement Contact Primary Line of Business Product Liability (Occurrence) Domiciled

SAINT LUKE'S HLTH SYSTEM RRG11712 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384

ALICIA D. COLELLA (802) 371-2238 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

SAMARITAN RISK RETENTION GROUP, INC.12511 ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441

DAWN M. DINARDO (843) 614-3134 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

SCHUYKILL CROSSING RECIPROCAL RRG11808 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

JEFFREY CALLANE (802) 264-4719 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP12988 7251 WEST LAKE MEAD BOULEVARD, SUITE 401, LAS VEGAS, NV 89128-8370

REBECCA S. BOUDREAU (802) 864-1710 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

SECURITY AMERICA RRG INC11267 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

JODI K. GUZZARDO (802) 864-6332 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

SELECT MD RRG14136 27 GAGE TERRACE BIGFORK, MT 59911-3544

BRENDA M. OLSON (406) 282-0170 MTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

SENTINEL ASSUR RRG INC12005 745 FORT STREET, SUITE 1100, HONOLULU, HI 96813-3810

TONI KANEHIRA (808) 585-3584 HIPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

SIGMA RRG, INC.13557 C/O AON RISK SERVICES, INC., 1120 20TH STREET, N.W, WASHINGTON, DC

EMI SWAIM 202-862-5339 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.12907 ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441

KELLY BOURNE (843) 614-3132 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

SPIRIT COMMERCIAL AUTO RISK RETENTION GROUP14207 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

BJORN K. HUBBARD (941) 373-1129 NVPhoneStatement Contact Primary Line of Business Commercial Auto Liability Domiciled

SPIRIT MOUNTAIN INS CO RRG INC10754 2233 WISCONSIN AVENUE, NW, SUITE 310, WASHINGTON, DC 20007-4104

CHARLES HALSTEAD-JOHNSON (802) 479-7801 DCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ST CHARLES INS CO RRG11114 3507 ROSEWOOD DRIVE COLUMBIA, SC 29205-3448

LEN T. LOGAN (877) 872-7475 SCPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

ST LUKES HEALTH NETWORK INS CO RRG11688 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

MARY B. DESRANLEAU (802) 264-4710 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.13993 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

KATIE GRAY (800) 226-0793 NVPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

STATES SELF-INSURERS RRG44075 222 SOUTH NINTH STREET, SUITE 1300, MINNEAPOLIS, MN 55402-3332

SHERYL ANN SATTLER (612) 766-3000 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

STICO MUT INS CO RRG10476 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

BECKI MINOLI (802) 264-4576 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC13135 ONE POSTON ROAD, SUITE 155, CHARLESTON, SC 29407-3441

KELLY BOURNE (843) 614-3132 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

SUNLAND RISK RETENTION GROUP, INC.14026 14362 NORTH FRANK LLOYD WRIGHT BOULEVARD, SUITE 1000, SCOTTSDALE, AZ 85260-8847

LAURA LEE DURKIN (800) 872-7475 DEPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

SUPERIOR INS CO RRG11669 1180 SAM RITTENBERG BOULEVARD, SUITE 235, CHARLESTON, SC 29407-3384

PIPER H. CROCKETT (843) 573-4946 SCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

TERRA INS CO RRG10113 2386 AIRPORT ROAD BARRE, VT 05641-8629

ABIGAIL M. BERNIER (802) 371-2233 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

TERRAFIRMA RISK RETENTION GROUP LLC14395 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

MARCY WATERFALL (802) 864-6269 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

THE HEALTHCARE UNDERWRITING CO RRG10152 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

MARCY WATERFALL (802) 864-6269 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Occurrence) Domiciled

TITAN INS CO INC RRG11153 BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384SCPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

TITLE INDUSTRY ASSURANCE CO RRG10084 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

BECKI MINOLI (802) 264-4576 VTPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC Address

Risk Retention Groups - Listing by Company Name

UNITED CENTRAL PA RRG11548 76 SAINT PAUL STREET, SUITE 500, BURLINGTON, VT 05401-4477

SHERI TREMBLAY (802) 652-1554 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

UNITED CONTRACTORS INS CO INC RRG12280 BUILDING C, 1327 ASHLEY RIVER ROAD, SUITE 200, CHARLESTON, SC 29407-5384

NICOLE S. HUBLER (802) 371-2249 DEPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

UNITED EDUCATORS INS RRG INC10020 TWO WISCONSIN CIRCLE, FOURTH FLOOR, CHEVY CHASE, MD 20815-9913

KAREN LEE VERDON (301) 215-6423 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

UNITED HOME INSURANCE CO A RRG10712 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

DELISCA A. CHRISTIAN (802) 864-2110 VTPhoneStatement Contact Primary Line of Business Warranty Domiciled

URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP12915 5430 WEST SAHARA AVENUE LAS VEGAS, NV 89146-3307

ANDREW CARLTON (800) 226-0793 NVPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

UV INSURANCE RISK RETENTION GROUP, INC.13988 201 MERCHANT STREET, SUITE 2400, HONOLULU, HI 96813-2929

CHRISTINA KAMAKA (808) 540-4305 HIPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP11063 2007 POOLE DRIVE HUNTSVILLE, AL 35810-3891

SUSAN MARIE URIE (843) 640-3170 OKPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.13974 27 GAGE TERRACE BIGFORK, MT 59911-3544

BRENDA M. OLSON (406) 282-0170 MTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

VIRGINIA SENIOR CARE RISK RETENTION GROUP13786 201 S. MAIN STREET, SUITE 200, ANN ARBOR, MI US

PETER M FEENEY 734 996-2700 DCPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

WARREN RRG INC11802 76 SAINT PAUL STREET BURLINGTON, VT 05401-4470

MARY B. DESRANLEAU (802) 264-4710 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

WELLSPAN RRG11682 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

JENNIFER L. PETTENGILL (802) 864-2111 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

WESTERN CATHOLIC INSURANCE COMPANY RRG14122 140 KENNEDY DRIVE SOUTH BURLINGTON, VT 05403-6710

TRICIA LYNN ALGER (802) 922-9456 VTPhoneStatement Contact Primary Line of Business Other Liability (Occurrence) Domiciled

WESTERN INS RRG INC11978 2555 EAST CAMELBACK ROAD, SUITE 700, PHOENIX, AZ 85016-4264

KIMBERLY E. WACK (602) 427-3217 AZPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

WESTERN PACIFIC MUT INS CO RRG40940 9265 MADRAS COURT LITTLETON, CO 80130-4444

SHERLYN WILKINSON FARRELL (303) 263-0311 COPhoneStatement Contact Primary Line of Business Other Liability (Claims-made) Domiciled

WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP13154 100 BANK STREET, SUITE 610, BURLINGTON, VT 05401-4946

LISA H. MANLEY (802) 864-2124 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)11796 30 MAIN STREET, SUITE 450, BURLINGTON, VT 05401-8427

ANITA M. PERKINS (802) 371-2219 VTPhoneStatement Contact Primary Line of Business Medical Professional Liability (Claims-made) Domiciled

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by Primary Line of BusinessState of Domicile

Boiler and MachineryARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP

13580 KENTUCKY

Commercial Auto LiabilityALLIANCE OF NONPROFITS FOR INS RRG10023 VERMONT

AMERICAN CONTRACTORS INS CO RRG12300 TEXAS

AMERICAN FOREST CASUALTY COMPANY RRG11590 SOUTH CAROLINA

AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG11534 MONTANA

AMERIGUARD RRG INC12171 VERMONT

ARCOA RISK RETENTION GROUP, INC.13177 NEVADA

CIRCLE STAR INS CO RRG11839 VERMONT

ELITE TRANSPORTATION RRG INC10125 ARIZONA

FIRST KEYSTONE RISK RETENTION GROUP, INC.11801 SOUTH CAROLINA

GLOBAL HAWK INSURANCE COMPANY RRG11948 VERMONT

LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY12627 UTAH

MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP12554 DELAWARE

MOUNTAIN LAKE RISK RETENTION GROUP, INC.13812 VERMONT

NATIONAL INDEPENDENT TRUCKERS IC RRG11197 SOUTH CAROLINA

OCEAN RRG INC10158 DISTRICT OF COLUMBIA

OOIDA RISK RETENTION GROUP INC10353 VERMONT

PARATRANSIT INSURANCE COMPANY, RRG44130 TENNESSEE

PINELANDS INS CO RRG INC12198 DISTRICT OF COLUMBIA

SPIRIT COMMERCIAL AUTO RISK RETENTION GROUP14207 NEVADA

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

12934 VERMONT

AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP13677 VERMONT

ALLIED PROFESSIONALS INSURANCE COMPANY, RRG11710 ARIZONA

ALLIED SERVICES RISK RETENTION GROUP12013 SOUTH CAROLINA

AMERICAN ASSOC OF OTHODONTISTS RRG10232 ARIZONA

AMERICAN EXCESS INS EXCHANGE RRG10903 VERMONT

APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.11598 ARIZONA

BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.12933 VERMONT

BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC.14169 NEVADA

BROADLINE RISK RETENTION GROUP, INC.13788 VERMONT

CALIFORNIA HEALTHCARE INS CO INC RRG44504 HAWAII

CALIFORNIA MEDICAL GRP INS CO RRG12180 ARIZONA

CARE RRG, INC.11825 DISTRICT OF COLUMBIA

CAREGIVERS UNITED LIAB INS CO RRG11544 SOUTH CAROLINA

CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP12373 DISTRICT OF COLUMBIA

CASSATT RISK RETENTION GROUP INC10808 VERMONT

CENTRAL PA PHYSICIANS RRG INC11694 SOUTH CAROLINA

CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.11976 ARIZONA

CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG12167 ARIZONA

CHEROKEE GUARANTEE COMPANY INC., RRG14388 ARIZONA

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by Primary Line of BusinessState of Domicile

CLINIC MUTUAL INSURANCE CO RRG43770 HAWAII

CMIC RISK RETENTION GROUP13756 DISTRICT OF COLUMBIA

COASTAL INS RRG INC11668 ALABAMA

COMMUNITIES OF FAITH RRG INC11807 SOUTH CAROLINA

COMMUNITY BLOOD CENTERS EXCH RRG13893 INDIANA

COMMUNITY HEALTH ALLIANCE RECIP RRG11536 VERMONT

COMMUNITY HOSPITAL RRG11259 VERMONT

CONTINUING CARE RRG, INC.11798 SOUTH CAROLINA

CONTROLLED RISK INS CO OF VT RRG10341 VERMONT

COVERYS RRG, INC.14160 DISTRICT OF COLUMBIA

CRUDEN BAY RRG INC11676 VERMONT

CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP13655 VERMONT

DELAWARE PROFESSIONAL INSURANCE CO43125 DELAWARE

DOCTORS & SURGEONS NATIONAL RRG13018 KENTUCKY

DUBOIS MEDICAL RRG11842 DISTRICT OF COLUMBIA

EASTERN DENTISTS INS CO RRG10115 VERMONT

EMERGENCY CAPITAL MANAGEMENT, LLC, RRG14163 DELAWARE

EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)12003 NEVADA

EMERGENCY MEDICINE RRG INC12015 SOUTH CAROLINA

EMERGENCY PHYSICIANS INS CO RRG11714 NEVADA

FAIRWAY PHYSICIANS INS CO RRG11840 DISTRICT OF COLUMBIA

FORT WAYNE MEDICAL SURETY COMPANY, RRG12625 ARIZONA

FRANKLIN CASUALTY INS CO RRG10842 VERMONT

FREDERICKSBURG PROFESSIONAL RISK EXC12016 VERMONT

GABLES RISK RETENTION GROUP, INC.14032 VERMONT

GEISINGER INS CORP RRG12000 VERMONT

GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.12512 SOUTH CAROLINA

GRACO RRG INC11581 SOUTH CAROLINA

GREEN HILLS INS CO RRG11941 VERMONT

GUARDIAN RRG INC11696 MONTANA

GUTHRIE RRG12014 SOUTH CAROLINA

HAMDEN ASSURANCE RRG, INC.13057 VERMONT

HEALTH CARE CAS RRG INC12236 DISTRICT OF COLUMBIA

HEALTH NETWORK PROVIDERS MUT INS CO11813 DISTRICT OF COLUMBIA

HEALTH PROVIDERS INS RECIPROCAL RRG10080 HAWAII

HEALTHCARE PROVIDERS INS CO RRG11683 SOUTH CAROLINA

HEARTLAND HEALTHCARE RECIP RRG11998 VERMONT

INDIANA HEALTHCARE RECIP RRG11692 VERMONT

INNOVATIVE PHYSICIAN SOLUTIONS RRG12320 ARIZONA

IRONSHORE RISK RETENTION GROUP, INC.14375 DELAWARE

J.M. WOODWORTH RRG, INC.12594 NEVADA

KENTUCKIANA MEDICAL RECIPROCAL RRG11872 KENTUCKY

KENTUCKY HOSPITAL INS CO RRG11939 KENTUCKY

LAKE STREET RRG INC11803 VERMONT

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by Primary Line of BusinessState of Domicile

LAMMICO RRG, INC.14444 DISTRICT OF COLUMBIA

LANCET INDEMNITY RISK RETENTION GROUP, INC.13014 NEVADA

LIFE SERVICES NETWORK RECIP INS RRG11958 DISTRICT OF COLUMBIA

LVHN RRG11684 SOUTH CAROLINA

MCIC VERMONT INC RRG10697 VERMONT

MD RISK RETENTION GROUP, INC.12355 MONTANA

MEDAMERICA MUTUAL RRG INC26257 HAWAII

MEDPRO RRG RISK RETENTION GROUP13589 DISTRICT OF COLUMBIA

MEDSTAR LIABILITY LTD INS CO INC RRG10124 DISTRICT OF COLUMBIA

MILLBROOK NMF RISK RETENTION GROUP, INC.14219 SOUTH CAROLINA

MMIC RRG, INC.14062 DISTRICT OF COLUMBIA

MOUNTAIN LAUREL RRG INC11547 VERMONT

MOUNTAIN STATES HEALTHCARE RECIP RRG11585 MONTANA

MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.12779 WEST VIRGINIA

NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.12529 SOUTH CAROLINA

NCMIC RISK RETENTION GROUP, INC.14130 VERMONT

NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.12539 NEVADA

NEW STAR RISK RETENTION GROUP, INC.12532 SOUTH CAROLINA

NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG12275 DISTRICT OF COLUMBIA

NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP

13059 VERMONT

NOVUS INS CO RRG10752 SOUTH CAROLINA

OASIS RECIPROCAL RISK RETENTION GROUP13644 VERMONT

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

OCEANUS INS CO A RRG12189 SOUTH CAROLINA

OLYMPIA RISK RETENTION GROUP, INC.13062 ARIZONA

OMS NATL INS CO RRG44121 ILLINOIS

OPHTHALMIC MUTUAL INS CO RRG44105 VERMONT

ORANGE COUNTY MEDICAL RECIP INS RRG12183 ARIZONA

ORTHOFORUM INSURANCE COMPANY (A RISK RETENTION GROUP)14260 SOUTH CAROLINA

PACE RRG INC11575 VERMONT

PEACE CHURCH RRG INC11846 VERMONT

PEDIATRICANS INS RRG OF AMER11772 DISTRICT OF COLUMBIA

PELICAN INS RRG11587 VERMONT

PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.13995 NEVADA

PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.12746 NEVADA

PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP12507 SOUTH CAROLINA

PHYSICIANS PROFESSIONAL LIABILTY RRG11514 VERMONT

PHYSICIANS SPECIALTY LTD RRG11513 SOUTH CAROLINA

PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP13582 HAWAII

PINE TREE INS RECIPROCAL RRG12348 VERMONT

PLICO RISK RETENTION GROUP, INC.14205 OKLAHOMA

PONCE DE LEON LTC RRG, INC.11809 FLORIDA

PREFERRED PHYSICIANS MEDICAL RRG44083 MISSOURI

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by Primary Line of BusinessState of Domicile

PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP12613 NEVADA

PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

12608 VERMONT

PROFESSIONALS RISK RETENTION GROUP, INC.13067 MONTANA

RED CLAY RISK RETENTION GROUP, INC.13078 SOUTH CAROLINA

SAINT LUKE'S HLTH SYSTEM RRG11712 SOUTH CAROLINA

SAMARITAN RISK RETENTION GROUP, INC.12511 SOUTH CAROLINA

SCHUYKILL CROSSING RECIPROCAL RRG11808 VERMONT

SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP12988 NEVADA

SELECT MD RRG14136 MONTANA

SENTINEL ASSUR RRG INC12005 HAWAII

ST LUKES HEALTH NETWORK INS CO RRG11688 VERMONT

SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC13135 SOUTH CAROLINA

SUNLAND RISK RETENTION GROUP, INC.14026 DELAWARE

SUPERIOR INS CO RRG11669 SOUTH CAROLINA

UNITED CENTRAL PA RRG11548 VERMONT

URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP12915 NEVADA

VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.13974 MONTANA

VIRGINIA SENIOR CARE RISK RETENTION GROUP13786 DISTRICT OF COLUMBIA

WARREN RRG INC11802 VERMONT

WELLSPAN RRG11682 VERMONT

WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP13154 VERMONT

YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)11796 VERMONT

Medical Professional Liability (Occurrence)CLARIAN HLTH RRG INC11992 SOUTH CAROLINA

FAITH AFFILIATED RRG INC11698 VERMONT

FIRST MEDICAL INS CO RRG11278 VERMONT

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

11832 DISTRICT OF COLUMBIA

NATIONAL GUARDIAN RISK RETENTION GROUP36072 HAWAII

PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP12918 VERMONT

PHYSICIANS REIMBURSEMENT RRG10934 VERMONT

PROFESSIONAL MEDICAL INS RRG INC10840 HAWAII

SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.12907 SOUTH CAROLINA

THE HEALTHCARE UNDERWRITING CO RRG10152 VERMONT

Other Liability (Claims-made)AEGIS HEALTHCARE RRG, INC.12252 DISTRICT OF COLUMBIA

AGRI INSURANCE EXCHANGE RRG28380 INDIANA

ARCHITECTS & ENGINEERS INS CO RRG44148 DELAWARE

ASSOCIATION OF CERTIFIED MORTGAGE ORIGINATORS RISK RETENTION GROUP, INC.

14425 NEVADA

ATTORNEYS INS MUTUAL OF ALABAMA INC33677 DISTRICT OF COLUMBIA

ATTORNEYS INSURANCE MUTUAL RRG INC22670 HAWAII

ATTORNEYS LIAB ASSUR SOCIETY INC RRG10639 VERMONT

ATTORNEYS LIAB PROTECTION SOC RRG32450 MONTANA

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by Primary Line of BusinessState of Domicile

ATTPRO RRG RECIPROCAL RISK RETENTION GROUP13795 DISTRICT OF COLUMBIA

BAR VERMONT RISK RETENTION GROUP INC10174 VERMONT

CHC CAS RRG11531 VERMONT

CLAIM PROFESSIONALS LIAB INS CO RRG12172 VERMONT

COLLEGE LIABILITY INS CO A RECIP RRG44598 HAWAII

COMCARE PRO INS RECIPROCAL RRG11864 VERMONT

COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A RRG12042 HAWAII

CPA MUTUAL INS CO OF AMERICA RRG10164 VERMONT

CROSSFIT RISK RETENTION GROUP, INC.13720 MONTANA

FIDUCIARIES RISK RETENTION GROUP, INC.14439 NEVADA

GERIC INSURANCE RISK RETENTION GROUP, INC.13782 HAWAII

GLOBAL INTL INS CO INC A RRG10991 DISTRICT OF COLUMBIA

GOLDEN INS CO RRG11145 NEVADA

GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

13973 NEVADA

HERITAGE WARRANTY INS RRG INC11097 SOUTH CAROLINA

HOUSING AUTHORITY RRG INC26797 VERMONT

ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP11268 VERMONT

LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP14084 NEVADA

MENTAL HEALTH RISK RETENTION GROUP44237 VERMONT

MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP11999 VERMONT

NASW RISK RETENTION GROUP, INC.14366 DISTRICT OF COLUMBIA

NATIONAL ASSISTED LIVING RRG, INC.11806 DISTRICT OF COLUMBIA

NATIONAL HOME INSURANCE CO RRG44016 COLORADO

NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP13792 DISTRICT OF COLUMBIA

ORDINARY MUTUAL A RRG CORP10171 VERMONT

PCH MUTUAL INSURANCE COMPANY, RRG11973 DISTRICT OF COLUMBIA

PHOEBE RECIPROCAL RRG12004 SOUTH CAROLINA

PROFESSIONAL EXCHANGE ASSURANCE COMPANY (A RISK RETENTION GROUP)

14461 HAWAII

PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG11350 VERMONT

SIGMA RRG, INC.13557 DISTRICT OF COLUMBIA

SPIRIT MOUNTAIN INS CO RRG INC10754 DISTRICT OF COLUMBIA

ST CHARLES INS CO RRG11114 SOUTH CAROLINA

STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.13993 NEVADA

TERRA INS CO RRG10113 VERMONT

TERRAFIRMA RISK RETENTION GROUP LLC14395 VERMONT

TITLE INDUSTRY ASSURANCE CO RRG10084 VERMONT

UV INSURANCE RISK RETENTION GROUP, INC.13988 HAWAII

WESTERN INS RRG INC11978 ARIZONA

WESTERN PACIFIC MUT INS CO RRG40940 COLORADO

Other Liability (Occurrence)ADVANCED PHYSICIANS INS RRG INC12166 ARIZONA

AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP13606 NEVADA

ALLEGIANT INS CO INC A RRG11965 HAWAII

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by Primary Line of BusinessState of Domicile

AMERICAN BUILDERS INSURANCE COMPANY RRG, INC.12631 MONTANA

AMERICAN FEED INDUSTRY INS CO RRG44202 IOWA

AMERICAN SAFETY RRG INC25448 VERMONT

ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.12224 SOUTH CAROLINA

BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP13010 NEVADA

CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP13784 MONTANA

COLLEGE RISK RETENTION GROUP, INC.13613 VERMONT

CONSUMER SPECIALTIES INSURANCE COMPANY RRG10075 VERMONT

CONTRACTORS INS CO OF NORTH AMER RRG11603 HAWAII

EVERGREEN USA RRG INC38466 VERMONT

GENERAL EASTERN SKI INS RRG INC10163 VERMONT

HOME CONSTRUCTION INS CO RRG11950 NEVADA

INDEMNITY INSURANCE CORPORATION, RRG12018 DELAWARE

LENDERS PROTECTION ASSUR CO RRG11500 NEBRASKA

MARATHON FIN INS CO INC RRG11117 DELAWARE

NATIONAL BUILDERS & CONTRACTORS INS12235 NEVADA

NATIONAL CATHOLIC RRG10083 VERMONT

NATIONAL CONTRACTORS INS CO INC RRG12293 MONTANA

NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)10234 DISTRICT OF COLUMBIA

PINNACLE CONSORTIUM OF HIGHER ED RRG11980 VERMONT

PINNACLE RRG INC11858 DISTRICT OF COLUMBIA

PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC12497 MONTANA

PROAIR RISK RETENTION GROUP, INC.13179 NEVADA

PROBUILDERS SPECIALTY INS CO RRG11671 DISTRICT OF COLUMBIA

RED ROCK RISK RETENTION GROUP, INC.13736 ARIZONA

REPUBLIC RRG12019 SOUTH CAROLINA

RESTORATION RISK RETENTION GROUP, INC.12209 VERMONT

SECURITY AMERICA RRG INC11267 VERMONT

STATES SELF-INSURERS RRG44075 VERMONT

STICO MUT INS CO RRG10476 VERMONT

TITAN INS CO INC RRG11153 SOUTH CAROLINA

UNITED CONTRACTORS INS CO INC RRG12280 DELAWARE

UNITED EDUCATORS INS RRG INC10020 VERMONT

VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP11063 OKLAHOMA

WESTERN CATHOLIC INSURANCE COMPANY RRG14122 VERMONT

Product Liability (Occurrence)AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC.13791 MONTANA

HOW INSURANCE COMPANY, A RISK RETENTION GROUP41246 VIRGINIA

RPX RRG14135 HAWAII

Reinsurance - Nonproportional Assumed LiabilityPIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

14108 MONTANA

WarrantyCOLUMBIA NATIONAL RRG INC10803 VERMONT

UNITED HOME INSURANCE CO A RRG10712 VERMONT

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by StatePrimary Line of Business

ALABAMACOASTAL INS RRG INC11668 Medical Professional Liability (Claims-made)

ARIZONAADVANCED PHYSICIANS INS RRG INC12166 Other Liability (Occurrence)

ALLIED PROFESSIONALS INSURANCE COMPANY, RRG11710 Medical Professional Liability (Claims-made)

AMERICAN ASSOC OF OTHODONTISTS RRG10232 Medical Professional Liability (Claims-made)

APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.11598 Medical Professional Liability (Claims-made)

CALIFORNIA MEDICAL GRP INS CO RRG12180 Medical Professional Liability (Claims-made)

CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.11976 Medical Professional Liability (Claims-made)

CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG12167 Medical Professional Liability (Claims-made)

CHEROKEE GUARANTEE COMPANY INC., RRG14388 Medical Professional Liability (Claims-made)

ELITE TRANSPORTATION RRG INC10125 Commercial Auto Liability

FORT WAYNE MEDICAL SURETY COMPANY, RRG12625 Medical Professional Liability (Claims-made)

INNOVATIVE PHYSICIAN SOLUTIONS RRG12320 Medical Professional Liability (Claims-made)

OLYMPIA RISK RETENTION GROUP, INC.13062 Medical Professional Liability (Claims-made)

ORANGE COUNTY MEDICAL RECIP INS RRG12183 Medical Professional Liability (Claims-made)

RED ROCK RISK RETENTION GROUP, INC.13736 Other Liability (Occurrence)

WESTERN INS RRG INC11978 Other Liability (Claims-made)

COLORADONATIONAL HOME INSURANCE CO RRG44016 Other Liability (Claims-made)

WESTERN PACIFIC MUT INS CO RRG40940 Other Liability (Claims-made)

DISTRICT OF COLUMBIAAEGIS HEALTHCARE RRG, INC.12252 Other Liability (Claims-made)

ATTORNEYS INS MUTUAL OF ALABAMA INC33677 Other Liability (Claims-made)

ATTPRO RRG RECIPROCAL RISK RETENTION GROUP13795 Other Liability (Claims-made)

CARE RRG, INC.11825 Medical Professional Liability (Claims-made)

CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP12373 Medical Professional Liability (Claims-made)

CMIC RISK RETENTION GROUP13756 Medical Professional Liability (Claims-made)

COVERYS RRG, INC.14160 Medical Professional Liability (Claims-made)

DUBOIS MEDICAL RRG11842 Medical Professional Liability (Claims-made)

FAIRWAY PHYSICIANS INS CO RRG11840 Medical Professional Liability (Claims-made)

GLOBAL INTL INS CO INC A RRG10991 Other Liability (Claims-made)

HEALTH CARE CAS RRG INC12236 Medical Professional Liability (Claims-made)

HEALTH NETWORK PROVIDERS MUT INS CO11813 Medical Professional Liability (Claims-made)

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

11832 Medical Professional Liability (Occurrence)

LAMMICO RRG, INC.14444 Medical Professional Liability (Claims-made)

LIFE SERVICES NETWORK RECIP INS RRG11958 Medical Professional Liability (Claims-made)

MEDPRO RRG RISK RETENTION GROUP13589 Medical Professional Liability (Claims-made)

MEDSTAR LIABILITY LTD INS CO INC RRG10124 Medical Professional Liability (Claims-made)

MMIC RRG, INC.14062 Medical Professional Liability (Claims-made)

NASW RISK RETENTION GROUP, INC.14366 Other Liability (Claims-made)

NATIONAL ASSISTED LIVING RRG, INC.11806 Other Liability (Claims-made)

NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)10234 Other Liability (Occurrence)

NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP13792 Other Liability (Claims-made)

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by StatePrimary Line of Business

NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG12275 Medical Professional Liability (Claims-made)

OCEAN RRG INC10158 Commercial Auto Liability

PCH MUTUAL INSURANCE COMPANY, RRG11973 Other Liability (Claims-made)

PEDIATRICANS INS RRG OF AMER11772 Medical Professional Liability (Claims-made)

PINELANDS INS CO RRG INC12198 Commercial Auto Liability

PINNACLE RRG INC11858 Other Liability (Occurrence)

PROBUILDERS SPECIALTY INS CO RRG11671 Other Liability (Occurrence)

SIGMA RRG, INC.13557 Other Liability (Claims-made)

SPIRIT MOUNTAIN INS CO RRG INC10754 Other Liability (Claims-made)

VIRGINIA SENIOR CARE RISK RETENTION GROUP13786 Medical Professional Liability (Claims-made)

DELAWAREARCHITECTS & ENGINEERS INS CO RRG44148 Other Liability (Claims-made)

DELAWARE PROFESSIONAL INSURANCE CO43125 Medical Professional Liability (Claims-made)

EMERGENCY CAPITAL MANAGEMENT, LLC, RRG14163 Medical Professional Liability (Claims-made)

INDEMNITY INSURANCE CORPORATION, RRG12018 Other Liability (Occurrence)

IRONSHORE RISK RETENTION GROUP, INC.14375 Medical Professional Liability (Claims-made)

MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP12554 Commercial Auto Liability

MARATHON FIN INS CO INC RRG11117 Other Liability (Occurrence)

SUNLAND RISK RETENTION GROUP, INC.14026 Medical Professional Liability (Claims-made)

UNITED CONTRACTORS INS CO INC RRG12280 Other Liability (Occurrence)

FLORIDAPONCE DE LEON LTC RRG, INC.11809 Medical Professional Liability (Claims-made)

HAWAIIALLEGIANT INS CO INC A RRG11965 Other Liability (Occurrence)

ATTORNEYS INSURANCE MUTUAL RRG INC22670 Other Liability (Claims-made)

CALIFORNIA HEALTHCARE INS CO INC RRG44504 Medical Professional Liability (Claims-made)

CLINIC MUTUAL INSURANCE CO RRG43770 Medical Professional Liability (Claims-made)

COLLEGE LIABILITY INS CO A RECIP RRG44598 Other Liability (Claims-made)

CONTRACTORS INS CO OF NORTH AMER RRG11603 Other Liability (Occurrence)

COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A RRG12042 Other Liability (Claims-made)

GERIC INSURANCE RISK RETENTION GROUP, INC.13782 Other Liability (Claims-made)

HEALTH PROVIDERS INS RECIPROCAL RRG10080 Medical Professional Liability (Claims-made)

MEDAMERICA MUTUAL RRG INC26257 Medical Professional Liability (Claims-made)

NATIONAL GUARDIAN RISK RETENTION GROUP36072 Medical Professional Liability (Occurrence)

PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP13582 Medical Professional Liability (Claims-made)

PROFESSIONAL EXCHANGE ASSURANCE COMPANY (A RISK RETENTION GROUP)14461 Other Liability (Claims-made)

PROFESSIONAL MEDICAL INS RRG INC10840 Medical Professional Liability (Occurrence)

RPX RRG14135 Product Liability (Occurrence)

SENTINEL ASSUR RRG INC12005 Medical Professional Liability (Claims-made)

UV INSURANCE RISK RETENTION GROUP, INC.13988 Other Liability (Claims-made)

IOWAAMERICAN FEED INDUSTRY INS CO RRG44202 Other Liability (Occurrence)

ILLINOISOMS NATL INS CO RRG44121 Medical Professional Liability (Claims-made)

INDIANAYear-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by StatePrimary Line of Business

AGRI INSURANCE EXCHANGE RRG28380 Other Liability (Claims-made)

COMMUNITY BLOOD CENTERS EXCH RRG13893 Medical Professional Liability (Claims-made)

KENTUCKYARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP13580 Boiler and Machinery

DOCTORS & SURGEONS NATIONAL RRG13018 Medical Professional Liability (Claims-made)

KENTUCKIANA MEDICAL RECIPROCAL RRG11872 Medical Professional Liability (Claims-made)

KENTUCKY HOSPITAL INS CO RRG11939 Medical Professional Liability (Claims-made)

MISSOURIPREFERRED PHYSICIANS MEDICAL RRG44083 Medical Professional Liability (Claims-made)

MONTANAAMERICAN BUILDERS INSURANCE COMPANY RRG, INC.12631 Other Liability (Occurrence)

AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG11534 Commercial Auto Liability

ATTORNEYS LIAB PROTECTION SOC RRG32450 Other Liability (Claims-made)

AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC.13791 Product Liability (Occurrence)

CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP13784 Other Liability (Occurrence)

CROSSFIT RISK RETENTION GROUP, INC.13720 Other Liability (Claims-made)

GUARDIAN RRG INC11696 Medical Professional Liability (Claims-made)

MD RISK RETENTION GROUP, INC.12355 Medical Professional Liability (Claims-made)

MOUNTAIN STATES HEALTHCARE RECIP RRG11585 Medical Professional Liability (Claims-made)

NATIONAL CONTRACTORS INS CO INC RRG12293 Other Liability (Occurrence)

OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC.12845 Medical Professional Liability (Claims-made)

PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP14108 Reinsurance - Nonproportional Assumed Liability

PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC12497 Other Liability (Occurrence)

PROFESSIONALS RISK RETENTION GROUP, INC.13067 Medical Professional Liability (Claims-made)

SELECT MD RRG14136 Medical Professional Liability (Claims-made)

VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.13974 Medical Professional Liability (Claims-made)

NEBRASKALENDERS PROTECTION ASSUR CO RRG11500 Other Liability (Occurrence)

NEVADAAGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP13606 Other Liability (Occurrence)

ARCOA RISK RETENTION GROUP, INC.13177 Commercial Auto Liability

ASSOCIATION OF CERTIFIED MORTGAGE ORIGINATORS RISK RETENTION GROUP, INC.

14425 Other Liability (Claims-made)

BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC.14169 Medical Professional Liability (Claims-made)

BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP13010 Other Liability (Occurrence)

EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)12003 Medical Professional Liability (Claims-made)

EMERGENCY PHYSICIANS INS CO RRG11714 Medical Professional Liability (Claims-made)

FIDUCIARIES RISK RETENTION GROUP, INC.14439 Other Liability (Claims-made)

GOLDEN INS CO RRG11145 Other Liability (Claims-made)

GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

13973 Other Liability (Claims-made)

HOME CONSTRUCTION INS CO RRG11950 Other Liability (Occurrence)

J.M. WOODWORTH RRG, INC.12594 Medical Professional Liability (Claims-made)

LANCET INDEMNITY RISK RETENTION GROUP, INC.13014 Medical Professional Liability (Claims-made)

LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP14084 Other Liability (Claims-made)

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by StatePrimary Line of Business

NATIONAL BUILDERS & CONTRACTORS INS12235 Other Liability (Occurrence)

NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.12539 Medical Professional Liability (Claims-made)

PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.13995 Medical Professional Liability (Claims-made)

PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.12746 Medical Professional Liability (Claims-made)

PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP12613 Medical Professional Liability (Claims-made)

PROAIR RISK RETENTION GROUP, INC.13179 Other Liability (Occurrence)

SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP12988 Medical Professional Liability (Claims-made)

SPIRIT COMMERCIAL AUTO RISK RETENTION GROUP14207 Commercial Auto Liability

STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.13993 Other Liability (Claims-made)

URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP12915 Medical Professional Liability (Claims-made)

OKLAHOMAPLICO RISK RETENTION GROUP, INC.14205 Medical Professional Liability (Claims-made)

VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP11063 Other Liability (Occurrence)

SOUTH CAROLINAALLIED SERVICES RISK RETENTION GROUP12013 Medical Professional Liability (Claims-made)

AMERICAN FOREST CASUALTY COMPANY RRG11590 Commercial Auto Liability

ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.12224 Other Liability (Occurrence)

CAREGIVERS UNITED LIAB INS CO RRG11544 Medical Professional Liability (Claims-made)

CENTRAL PA PHYSICIANS RRG INC11694 Medical Professional Liability (Claims-made)

CLARIAN HLTH RRG INC11992 Medical Professional Liability (Occurrence)

COMMUNITIES OF FAITH RRG INC11807 Medical Professional Liability (Claims-made)

CONTINUING CARE RRG, INC.11798 Medical Professional Liability (Claims-made)

EMERGENCY MEDICINE RRG INC12015 Medical Professional Liability (Claims-made)

FIRST KEYSTONE RISK RETENTION GROUP, INC.11801 Commercial Auto Liability

GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.12512 Medical Professional Liability (Claims-made)

GRACO RRG INC11581 Medical Professional Liability (Claims-made)

GUTHRIE RRG12014 Medical Professional Liability (Claims-made)

HEALTHCARE PROVIDERS INS CO RRG11683 Medical Professional Liability (Claims-made)

HERITAGE WARRANTY INS RRG INC11097 Other Liability (Claims-made)

LVHN RRG11684 Medical Professional Liability (Claims-made)

MILLBROOK NMF RISK RETENTION GROUP, INC.14219 Medical Professional Liability (Claims-made)

NATIONAL INDEPENDENT TRUCKERS IC RRG11197 Commercial Auto Liability

NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.12529 Medical Professional Liability (Claims-made)

NEW STAR RISK RETENTION GROUP, INC.12532 Medical Professional Liability (Claims-made)

NOVUS INS CO RRG10752 Medical Professional Liability (Claims-made)

OCEANUS INS CO A RRG12189 Medical Professional Liability (Claims-made)

ORTHOFORUM INSURANCE COMPANY (A RISK RETENTION GROUP)14260 Medical Professional Liability (Claims-made)

PHOEBE RECIPROCAL RRG12004 Other Liability (Claims-made)

PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP12507 Medical Professional Liability (Claims-made)

PHYSICIANS SPECIALTY LTD RRG11513 Medical Professional Liability (Claims-made)

RED CLAY RISK RETENTION GROUP, INC.13078 Medical Professional Liability (Claims-made)

REPUBLIC RRG12019 Other Liability (Occurrence)

SAINT LUKE'S HLTH SYSTEM RRG11712 Medical Professional Liability (Claims-made)

SAMARITAN RISK RETENTION GROUP, INC.12511 Medical Professional Liability (Claims-made)

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by StatePrimary Line of Business

SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.12907 Medical Professional Liability (Occurrence)

ST CHARLES INS CO RRG11114 Other Liability (Claims-made)

SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC13135 Medical Professional Liability (Claims-made)

SUPERIOR INS CO RRG11669 Medical Professional Liability (Claims-made)

TITAN INS CO INC RRG11153 Other Liability (Occurrence)

TENNESSEEPARATRANSIT INSURANCE COMPANY, RRG44130 Commercial Auto Liability

TEXASAMERICAN CONTRACTORS INS CO RRG12300 Commercial Auto Liability

UTAHLIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY12627 Commercial Auto Liability

VIRGINIAHOW INSURANCE COMPANY, A RISK RETENTION GROUP41246 Product Liability (Occurrence)

VERMONTACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP

12934 Medical Professional Liability (Claims-made)

AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP13677 Medical Professional Liability (Claims-made)

ALLIANCE OF NONPROFITS FOR INS RRG10023 Commercial Auto Liability

AMERICAN EXCESS INS EXCHANGE RRG10903 Medical Professional Liability (Claims-made)

AMERICAN SAFETY RRG INC25448 Other Liability (Occurrence)

AMERIGUARD RRG INC12171 Commercial Auto Liability

ATTORNEYS LIAB ASSUR SOCIETY INC RRG10639 Other Liability (Claims-made)

BAR VERMONT RISK RETENTION GROUP INC10174 Other Liability (Claims-made)

BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.12933 Medical Professional Liability (Claims-made)

BROADLINE RISK RETENTION GROUP, INC.13788 Medical Professional Liability (Claims-made)

CASSATT RISK RETENTION GROUP INC10808 Medical Professional Liability (Claims-made)

CHC CAS RRG11531 Other Liability (Claims-made)

CIRCLE STAR INS CO RRG11839 Commercial Auto Liability

CLAIM PROFESSIONALS LIAB INS CO RRG12172 Other Liability (Claims-made)

COLLEGE RISK RETENTION GROUP, INC.13613 Other Liability (Occurrence)

COLUMBIA NATIONAL RRG INC10803 Warranty

COMCARE PRO INS RECIPROCAL RRG11864 Other Liability (Claims-made)

COMMUNITY HEALTH ALLIANCE RECIP RRG11536 Medical Professional Liability (Claims-made)

COMMUNITY HOSPITAL RRG11259 Medical Professional Liability (Claims-made)

CONSUMER SPECIALTIES INSURANCE COMPANY RRG10075 Other Liability (Occurrence)

CONTROLLED RISK INS CO OF VT RRG10341 Medical Professional Liability (Claims-made)

CPA MUTUAL INS CO OF AMERICA RRG10164 Other Liability (Claims-made)

CRUDEN BAY RRG INC11676 Medical Professional Liability (Claims-made)

CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP13655 Medical Professional Liability (Claims-made)

EASTERN DENTISTS INS CO RRG10115 Medical Professional Liability (Claims-made)

EVERGREEN USA RRG INC38466 Other Liability (Occurrence)

FAITH AFFILIATED RRG INC11698 Medical Professional Liability (Occurrence)

FIRST MEDICAL INS CO RRG11278 Medical Professional Liability (Occurrence)

FRANKLIN CASUALTY INS CO RRG10842 Medical Professional Liability (Claims-made)

FREDERICKSBURG PROFESSIONAL RISK EXC12016 Medical Professional Liability (Claims-made)

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by StatePrimary Line of Business

GABLES RISK RETENTION GROUP, INC.14032 Medical Professional Liability (Claims-made)

GEISINGER INS CORP RRG12000 Medical Professional Liability (Claims-made)

GENERAL EASTERN SKI INS RRG INC10163 Other Liability (Occurrence)

GLOBAL HAWK INSURANCE COMPANY RRG11948 Commercial Auto Liability

GREEN HILLS INS CO RRG11941 Medical Professional Liability (Claims-made)

HAMDEN ASSURANCE RRG, INC.13057 Medical Professional Liability (Claims-made)

HEARTLAND HEALTHCARE RECIP RRG11998 Medical Professional Liability (Claims-made)

HOUSING AUTHORITY RRG INC26797 Other Liability (Claims-made)

ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP11268 Other Liability (Claims-made)

INDIANA HEALTHCARE RECIP RRG11692 Medical Professional Liability (Claims-made)

LAKE STREET RRG INC11803 Medical Professional Liability (Claims-made)

MCIC VERMONT INC RRG10697 Medical Professional Liability (Claims-made)

MENTAL HEALTH RISK RETENTION GROUP44237 Other Liability (Claims-made)

MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP11999 Other Liability (Claims-made)

MOUNTAIN LAKE RISK RETENTION GROUP, INC.13812 Commercial Auto Liability

MOUNTAIN LAUREL RRG INC11547 Medical Professional Liability (Claims-made)

NATIONAL CATHOLIC RRG10083 Other Liability (Occurrence)

NCMIC RISK RETENTION GROUP, INC.14130 Medical Professional Liability (Claims-made)

NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP13059 Medical Professional Liability (Claims-made)

OASIS RECIPROCAL RISK RETENTION GROUP13644 Medical Professional Liability (Claims-made)

OOIDA RISK RETENTION GROUP INC10353 Commercial Auto Liability

OPHTHALMIC MUTUAL INS CO RRG44105 Medical Professional Liability (Claims-made)

ORDINARY MUTUAL A RRG CORP10171 Other Liability (Claims-made)

PACE RRG INC11575 Medical Professional Liability (Claims-made)

PEACE CHURCH RRG INC11846 Medical Professional Liability (Claims-made)

PELICAN INS RRG11587 Medical Professional Liability (Claims-made)

PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP12918 Medical Professional Liability (Occurrence)

PHYSICIANS PROFESSIONAL LIABILTY RRG11514 Medical Professional Liability (Claims-made)

PHYSICIANS REIMBURSEMENT RRG10934 Medical Professional Liability (Occurrence)

PINE TREE INS RECIPROCAL RRG12348 Medical Professional Liability (Claims-made)

PINNACLE CONSORTIUM OF HIGHER ED RRG11980 Other Liability (Occurrence)

PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

12608 Medical Professional Liability (Claims-made)

PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG11350 Other Liability (Claims-made)

RESTORATION RISK RETENTION GROUP, INC.12209 Other Liability (Occurrence)

SCHUYKILL CROSSING RECIPROCAL RRG11808 Medical Professional Liability (Claims-made)

SECURITY AMERICA RRG INC11267 Other Liability (Occurrence)

ST LUKES HEALTH NETWORK INS CO RRG11688 Medical Professional Liability (Claims-made)

STATES SELF-INSURERS RRG44075 Other Liability (Occurrence)

STICO MUT INS CO RRG10476 Other Liability (Occurrence)

TERRA INS CO RRG10113 Other Liability (Claims-made)

TERRAFIRMA RISK RETENTION GROUP LLC14395 Other Liability (Claims-made)

THE HEALTHCARE UNDERWRITING CO RRG10152 Medical Professional Liability (Occurrence)

TITLE INDUSTRY ASSURANCE CO RRG10084 Other Liability (Claims-made)

Year-End 2012 - RRG Analysis

Company NameNAIC

Risk Retention Groups - Listing by StatePrimary Line of Business

UNITED CENTRAL PA RRG11548 Medical Professional Liability (Claims-made)

UNITED EDUCATORS INS RRG INC10020 Other Liability (Occurrence)

UNITED HOME INSURANCE CO A RRG10712 Warranty

WARREN RRG INC11802 Medical Professional Liability (Claims-made)

WELLSPAN RRG11682 Medical Professional Liability (Claims-made)

WESTERN CATHOLIC INSURANCE COMPANY RRG14122 Other Liability (Occurrence)

WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP13154 Medical Professional Liability (Claims-made)

YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)11796 Medical Professional Liability (Claims-made)

WEST VIRGINIAMOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.12779 Medical Professional Liability (Claims-made)

Year-End 2012 - RRG Analysis

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Analysis by CompanyRisk Retention Groups

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COMPANYNAIC Cash & Invested Assets

Reinsurance Recoverables

Risk Retention Groups - Selected Statutory Balance Sheet and Schedule P DataOther Assets Total Assets Loss & LAE

ReservesUnearned

Premium ReserveOther Liabilities Total Liabilities Policyholders'

Surplus1 Year

Development (000s)

2 Year Development

(000s)

ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP

12934 $2,685,410 $0 $3,122,909$437,499 $324,204 $79,500 $1,491,024$1,087,320 $1,631,885 $73($244)

ADVANCED PHYSICIANS INS RRG INC12166 $1,456,159 $0 $1,594,581$138,422 $0 $0 $15,195$15,195 $1,579,386 $0$0

AEGIS HEALTHCARE RRG, INC.12252 $2,323,282 $0 $3,287,563$964,281 $1,674,668 ($126,511) $2,087,425$539,268 $1,200,137 ($162)($156)

AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP13677 $3,967,213 $0 $5,035,047$1,067,834 $643,771 $0 $1,993,859$1,350,088 $3,041,188 $0($2)

AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP

13606 $1,406,825 $0 $1,912,858$506,033 $2,810,484 $0 $2,852,362$41,878 ($939,504) $0$0

AGRI INSURANCE EXCHANGE RRG28380 $14,042,928 $0 $14,176,402$133,474 $1,940,000 $0 $2,274,410$334,410 $11,901,992 ($478)($211)

ALLEGIANT INS CO INC A RRG11965 $13,231,556 $1,741,402 $15,805,355$832,397 $8,207,939 $0 $10,809,542$2,601,603 $4,995,813 $2,905$1,460

ALLIANCE OF NONPROFITS FOR INS RRG10023 $46,621,313 $0 $57,087,097$10,465,784 $20,435,773 $7,407,252 $29,202,178$1,359,153 $27,884,919 ($973)$258

ALLIED PROFESSIONALS INSURANCE COMPANY, RRG11710 $28,789,593 $0 $31,531,900$2,742,307 $7,917,387 $8,161,001 $18,528,597$2,450,209 $13,003,304 ($964)$31

ALLIED SERVICES RISK RETENTION GROUP12013 $6,323,447 $0 $6,348,597$25,150 $3,318,088 $503,329 $3,919,555$98,138 $2,429,042 $553$657

AMERICAN ASSOC OF OTHODONTISTS RRG10232 $35,795,123 $0 $37,354,236$1,559,113 $20,686,761 $3,457,460 $26,434,956$2,290,735 $10,919,280 ($7,603)($5,815)

AMERICAN BUILDERS INSURANCE COMPANY RRG, INC.12631 $1,160,699 $42,758 $1,230,700$27,243 $110,307 $0 $438,623$328,316 $792,077 ($3)$0

AMERICAN CONTRACTORS INS CO RRG12300 $7,566,008 $0 $18,842,272$11,276,264 $0 $0 $11,589,017$11,589,017 $7,253,255 $0$0

AMERICAN EXCESS INS EXCHANGE RRG10903 $404,340,463 $0 $406,894,452$2,553,989 $147,562,159 $9,629,985 $169,004,220$11,812,076 $237,890,232 ($33,172)($16,424)

AMERICAN FEED INDUSTRY INS CO RRG44202 $3,672,782 $0 $3,747,732$74,950 $969,660 $0 $1,065,642$95,982 $2,682,090 ($1,427)($538)

AMERICAN FOREST CASUALTY COMPANY RRG11590 $8,555,162 $0 $9,058,905$503,743 $4,090,843 $842,161 $5,270,850$337,846 $3,788,055 ($1,202)($994)

AMERICAN SAFETY RRG INC25448 $12,650,685 $0 $20,700,430$8,049,745 $3,831,459 $3,974,714 $10,867,813$3,061,640 $9,832,617 ($43,660)($47,639)

AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG

11534 $14,219,731 $213,825 $15,256,443$822,887 $5,551,608 $2,938,625 $10,833,587$2,343,354 $4,422,856 ($513)($557)

AMERIGUARD RRG INC12171 $11,853,733 $0 $12,210,140$356,407 $2,388,860 $4,000 $4,700,374$2,307,514 $7,509,765 ($2,566)($325)

APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.11598 $72,723,257 $247,855 $92,319,499$19,348,387 $46,206,085 $19,656,779 $67,201,571$1,338,707 $25,117,928 ($5,321)($4,526)

ARCHITECTS & ENGINEERS INS CO RRG44148 $12,320,225 $0 $21,710,546$9,390,321 $3,538,345 $2,678,800 $12,135,490$5,918,345 $9,575,056 ($403)($422)

ARCOA RISK RETENTION GROUP, INC.13177 $10,578,542 $0 $12,556,189$1,977,647 $10,041,522 $0 $10,354,774$313,252 $2,201,415 $3,473$2,934

ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP

13580 $1,419,178 $0 $2,541,430$1,122,252 $150,000 $288,470 $638,410$199,940 $1,903,020 ($75)($125)

ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.12224 $1,972,317 $0 $1,995,412$23,095 $534,315 $0 $949,234$414,919 $1,046,178 $43($89)

ASSOCIATION OF CERTIFIED MORTGAGE ORIGINATORS RISK RETENTION GROUP, INC.

14425 $1,002,674 $0 $1,004,843$2,169 $0 $0 $8,553$8,553 $996,290 $0$0

ATTORNEYS INS MUTUAL OF ALABAMA INC33677 $15,047,603 $0 $15,645,593$597,990 $4,275,844 $1,132,627 $7,649,343$2,240,872 $7,996,250 ($1,416)($699)

ATTORNEYS INSURANCE MUTUAL RRG INC22670 $13,861,935 $0 $14,774,488$912,553 $4,732,423 $1,771,530 $7,234,794$730,841 $7,539,694 $1,021$625

ATTORNEYS LIAB ASSUR SOCIETY INC RRG10639 $112,199,500 $0 $153,694,779$41,495,279 $56,895,753 $41,370 $94,464,153$37,527,030 $59,230,626 ($834)$1,756

ATTORNEYS LIAB PROTECTION SOC RRG32450 $87,245,762 $0 $96,048,171$8,802,409 $42,759,706 $12,413,333 $62,402,358$7,229,319 $33,645,813 ($4,055)($2,637)

ATTPRO RRG RECIPROCAL RISK RETENTION GROUP13795 $1,427,726 $0 $1,507,962$80,236 $4,956 $4,402 $93,798$84,440 $1,414,164 $0$0

AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC.13791 $1,449,167 $0 $2,812,973$1,363,806 $267,942 $1,271,962 $1,771,655$231,751 $1,041,318 ($14)($135)

BAR VERMONT RISK RETENTION GROUP INC10174 $20,878,902 $0 $22,703,482$1,824,580 $4,913,329 $1,512,904 $8,839,198$2,412,965 $13,864,284 ($1,450)($394)

BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.12933 $25,144,096 $0 $32,060,442$6,916,346 $17,294,743 $0 $26,945,443$9,650,700 $5,114,999 ($2,290)($647)

BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC.14169 $524,182 $0 $529,205$5,023 $0 $6,584 $17,848$11,264 $511,357 $0$0

BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP

13010 $2,237,425 $0 $2,607,682$370,257 $49,146 $1,061,850 $1,448,519$337,523 $1,159,163 $2$0

BROADLINE RISK RETENTION GROUP, INC.13788 $68,370,266 $0 $93,431,924$25,061,658 $53,120,999 $9,696,195 $63,440,004$622,810 $29,991,920 ($8,662)($5,829)

CALIFORNIA HEALTHCARE INS CO INC RRG44504 $96,275,817 $0 $114,392,887$18,117,070 $52,283,879 $8,385,295 $68,987,532$8,318,358 $45,405,355 ($10,173)($4,836)

CALIFORNIA MEDICAL GRP INS CO RRG12180 $12,339,907 $0 $13,838,564$1,498,657 $5,335,682 $982,440 $7,096,620$778,498 $6,741,944 ($2,738)($1,734)

CARE RRG, INC.11825 $11,412,223 $489,960 $13,630,587$1,728,404 $5,570,202 $2,612,770 $8,952,477$769,505 $4,678,110 ($1,102)($433)

CAREGIVERS UNITED LIAB INS CO RRG11544 $34,037,364 $0 $35,828,248$1,790,884 $9,095,030 $1,528,557 $11,917,963$1,294,376 $23,910,284 ($5,324)($3,882)

CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP12373 $45,048,142 $0 $81,279,962$36,231,820 $9,959,067 $0 $46,241,719$36,282,652 $35,038,241 ($665)($512)

CASSATT RISK RETENTION GROUP INC10808 $6,166,918 $0 $8,902,038$2,735,120 $476,231 $50,000 $5,252,458$4,726,227 $3,649,580 $99$100

Year-End 2012 - RRG Analysis

COMPANYNAIC Cash & Invested Assets

Reinsurance Recoverables

Risk Retention Groups - Selected Statutory Balance Sheet and Schedule P DataOther Assets Total Assets Loss & LAE

ReservesUnearned

Premium ReserveOther Liabilities Total Liabilities Policyholders'

Surplus1 Year

Development (000s)

2 Year Development

(000s)

CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP13784 $1,147,658 $0 $1,267,772$120,114 $26,740 $0 $105,481$78,741 $1,162,291 ($6)($55)

CENTRAL PA PHYSICIANS RRG INC11694 $58,733,388 $0 $60,765,709$2,032,321 $31,269,860 $4,467,517 $40,224,908$4,487,531 $20,540,799 $7,147$1,978

CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.11976 $13,136,353 $0 $15,755,110$2,618,757 $4,717,065 $1,441,765 $7,352,804$1,193,974 $8,402,306 ($2,364)($2,465)

CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG12167 $3,456,330 $250,082 $3,779,287$72,875 $210,011 $0 $349,004$138,993 $3,430,282 ($62)($179)

CHC CAS RRG11531 $37,367,020 $0 $37,670,719$303,699 $17,954,836 $0 $20,803,187$2,848,351 $16,867,531 ($5,656)($6,888)

CHEROKEE GUARANTEE COMPANY INC., RRG14388 $1,892,557 $0 $4,775,048$2,882,491 $709,940 $1,869,072 $3,263,159$684,147 $1,511,888 $0$0

CIRCLE STAR INS CO RRG11839 $2,335,942 $0 $2,354,805$18,863 $452,097 $0 $1,031,595$579,498 $1,323,210 $0($49)

CLAIM PROFESSIONALS LIAB INS CO RRG12172 $2,182,711 $0 $3,076,825$894,114 $690,356 $231,082 $1,455,539$534,101 $1,621,286 ($180)($141)

CLARIAN HLTH RRG INC11992 $2,230,486 $0 $5,256,100$3,025,614 $0 $0 $2,717,719$2,717,719 $2,538,381 $0$0

CLINIC MUTUAL INSURANCE CO RRG43770 $2,946,350 $0 $3,087,471$141,121 $162,150 $18,270 $196,064$15,644 $2,891,407 ($180)$39

CMIC RISK RETENTION GROUP13756 $3,410,002 $0 $3,625,942$215,940 $37,073 $123,978 $609,774$448,723 $3,016,168 $0$0

COASTAL INS RRG INC11668 $47,965,524 $0 $50,490,466$2,524,942 $15,825,604 $729,432 $32,476,282$15,921,246 $18,014,184 ($7,251)($5,269)

COLLEGE LIABILITY INS CO A RECIP RRG44598 $11,132,718 $0 $13,313,043$2,180,325 $3,006,473 $1,120,848 $4,172,157$44,836 $9,140,886 ($818)($274)

COLLEGE RISK RETENTION GROUP, INC.13613 $14,834,912 $0 $15,183,427$348,515 $6,703,767 $3,227,215 $10,108,015$177,033 $5,075,412 ($947)($1,025)

COLUMBIA NATIONAL RRG INC10803 $1,617,152 $0 $1,667,074$49,922 $0 $294,459 $591,174$296,715 $1,075,900 $0$0

COMCARE PRO INS RECIPROCAL RRG11864 $3,423,372 $0 $3,960,317$536,945 $728,000 $543,492 $1,338,039$66,547 $2,622,278 $379$288

COMMUNITIES OF FAITH RRG INC11807 $14,119,915 $0 $14,377,422$257,507 $808,980 $0 $926,417$117,437 $13,451,005 ($789)($484)

COMMUNITY BLOOD CENTERS EXCH RRG13893 $20,285,469 $0 $21,530,762$1,245,293 $4,372,161 $1,386,174 $8,450,775$2,692,440 $13,079,987 ($2,280)($1,373)

COMMUNITY HEALTH ALLIANCE RECIP RRG11536 $105,865,395 $0 $106,527,927$662,532 $39,487,029 $0 $82,244,443$42,757,414 $24,283,485 $1,513($1,952)

COMMUNITY HOSPITAL RRG11259 $212,386,982 $0 $216,163,441$3,776,459 $119,304,326 $0 $136,638,508$17,334,182 $79,524,934 ($19,639)($8,560)

CONSUMER SPECIALTIES INSURANCE COMPANY RRG10075 $4,393,092 $645,646 $5,364,824$326,086 $1,640,706 $214,911 $1,992,124$136,507 $3,372,700 ($364)($163)

CONTINUING CARE RRG, INC.11798 $517,058 $0 $3,695,251$3,178,193 $98,195 $0 $758,187$659,992 $2,937,064 ($304)($409)

CONTRACTORS INS CO OF NORTH AMER RRG11603 $38,396,404 $0 $39,985,849$1,589,445 $22,427,442 $407,039 $23,080,925$246,444 $16,904,925 $10,091($886)

CONTROLLED RISK INS CO OF VT RRG10341 $54,395,941 $0 $55,399,072$1,003,131 $16,852,415 $0 $21,875,103$5,022,688 $33,523,969 ($2,382)($2,534)

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

12042 $31,905,435 $0 $32,672,672$767,237 $10,513,425 $33,333 $11,001,256$454,498 $21,671,416 $0($1,253)

COVERYS RRG, INC.14160 $4,916,997 $0 $4,978,624$61,627 $1,281 $2,209 $70,988$67,498 $4,907,636 $0$0

CPA MUTUAL INS CO OF AMERICA RRG10164 $17,759,078 $106,759 $23,495,690$5,629,853 $8,339,893 $1,426,986 $13,360,091$3,593,212 $10,135,599 ($659)$1,116

CROSSFIT RISK RETENTION GROUP, INC.13720 $1,771,261 $0 $2,203,234$431,973 $341,282 $600,329 $1,096,156$154,545 $1,107,078 ($20)($35)

CRUDEN BAY RRG INC11676 $13,474,718 $0 $13,570,935$96,217 $6,506,200 $0 $6,609,573$103,373 $6,961,362 ($3,546)($5,038)

CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP13655 $8,276,494 $0 $10,408,231$2,131,737 $2,474,790 $888,590 $6,379,168$3,015,788 $4,029,063 ($87)$56

DELAWARE PROFESSIONAL INSURANCE CO43125 $9,517,896 $0 $9,745,394$227,498 $4,765,001 $913,449 $5,811,468$133,018 $3,933,926 ($1,671)($29)

DOCTORS & SURGEONS NATIONAL RRG13018 $7,208,521 $0 $9,956,181$2,747,660 $3,385,692 $3,010,233 $7,367,089$971,164 $2,589,092 ($16)($47)

DUBOIS MEDICAL RRG11842 $7,686,487 $0 $8,800,901$1,114,414 $1,582,199 $724,881 $2,427,082$120,002 $6,373,822 ($900)($1,021)

EASTERN DENTISTS INS CO RRG10115 $40,719,879 $554,894 $47,815,744$6,540,971 $20,760,000 $6,075,154 $29,004,991$2,169,837 $18,810,753 ($6,413)($3,071)

ELITE TRANSPORTATION RRG INC10125 $8,893,845 $0 $12,729,884$3,836,039 $5,452,867 $861,733 $10,381,816$4,067,216 $2,348,068 $774$565

EMERGENCY CAPITAL MANAGEMENT, LLC, RRG14163 $2,359,454 $349,782 $2,742,720$33,484 $768,948 $0 $941,056$172,108 $1,801,664 $0$0

EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)

12003 $11,596,603 $610,737 $21,099,551$8,892,211 $7,739,201 $1,573,012 $15,097,679$5,785,466 $6,001,872 ($1,072)($597)

EMERGENCY MEDICINE RRG INC12015 $8,140,670 $0 $10,867,563$2,726,893 $3,906,987 $1,232,859 $5,857,757$717,911 $5,009,806 $486$28

EMERGENCY PHYSICIANS INS CO RRG11714 $36,291,306 $1,558,540 $41,501,428$3,651,582 $27,610,401 $3,238,853 $32,611,447$1,762,193 $8,889,981 $823$559

EVERGREEN USA RRG INC38466 $11,016,696 $0 $14,754,754$3,738,058 $5,860,211 $1,694,569 $8,339,276$784,496 $6,415,478 ($1,182)($534)

FAIRWAY PHYSICIANS INS CO RRG11840 $18,105,355 $2,786,221 $27,232,590$6,341,014 $15,212,486 $4,891,685 $20,703,756$599,585 $6,528,835 $4,791($2,006)

FAITH AFFILIATED RRG INC11698 $8,220,217 $0 $8,326,700$106,483 $2,781,205 $571,814 $3,481,140$128,121 $4,845,560 $633($79)

FIDUCIARIES RISK RETENTION GROUP, INC.14439 $502,883 $0 $504,402$1,519 $0 $0 $0$0 $504,402 $0$0

FIRST KEYSTONE RISK RETENTION GROUP, INC.11801 $7,558,533 $0 $14,283,884$6,725,351 $7,213,925 $3,515,463 $11,715,807$986,419 $2,568,077 $4,360$1,295

Year-End 2012 - RRG Analysis

COMPANYNAIC Cash & Invested Assets

Reinsurance Recoverables

Risk Retention Groups - Selected Statutory Balance Sheet and Schedule P DataOther Assets Total Assets Loss & LAE

ReservesUnearned

Premium ReserveOther Liabilities Total Liabilities Policyholders'

Surplus1 Year

Development (000s)

2 Year Development

(000s)

FIRST MEDICAL INS CO RRG11278 $109,794,057 $0 $110,536,071$742,014 $38,727,188 $5,530,666 $45,878,818$1,620,964 $64,657,253 ($1,674)$4,136

FORT WAYNE MEDICAL SURETY COMPANY, RRG12625 $4,086,488 $0 $4,404,830$318,342 $1,189,692 $525,902 $1,990,776$275,182 $2,414,054 ($118)($193)

FRANKLIN CASUALTY INS CO RRG10842 $2,540,948 $0 $32,290,646$29,749,698 $6,682,299 $1,712,962 $29,580,969$21,185,708 $2,709,677 $175$431

FREDERICKSBURG PROFESSIONAL RISK EXC12016 $14,654,730 $0 $20,406,811$5,752,081 $7,207,838 $0 $10,332,173$3,124,335 $10,074,638 ($2,310)($1,959)

GABLES RISK RETENTION GROUP, INC.14032 $1,217,137 $0 $3,257,154$2,040,017 $1,231,252 $251,720 $1,555,388$72,416 $1,701,766 $0$0

GEISINGER INS CORP RRG12000 $2,984,950 $0 $18,644,686$15,659,736 $955,000 $526,176 $7,346,809$5,865,633 $11,297,877 $0$0

GENERAL EASTERN SKI INS RRG INC10163 $776,921 $0 $1,436,858$659,937 $221,986 $0 $352,135$130,149 $1,084,723 ($81)$77

GERIC INSURANCE RISK RETENTION GROUP, INC.13782 $2,011,849 $0 $2,017,832$5,983 $2,703 $16,548 $19,251$0 $1,998,581 $0$0

GLOBAL HAWK INSURANCE COMPANY RRG11948 $10,800,993 $871,427 $14,224,307$2,551,887 $4,035,356 $5,092,832 $9,553,365$425,177 $4,670,942 $468($161)

GLOBAL INTL INS CO INC A RRG10991 $18,964,071 $0 $19,909,562$945,491 $0 $0 $787,660$787,660 $19,121,902 $0$0

GOLDEN INS CO RRG11145 $3,926,034 $0 $5,463,781$1,537,747 $929,384 $2,053,112 $3,264,547$282,051 $2,199,234 $505$399

GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.12512 $3,831,981 $0 $3,838,448$6,467 $1,434,589 $0 $1,471,537$36,948 $2,366,909 $2,532$934

GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

13973 $671,029 $0 $1,286,261$615,232 $0 $313,976 $770,627$456,651 $515,634 $0$0

GRACO RRG INC11581 $449,864 $0 $571,703$121,839 $0 $0 $52,857$52,857 $518,846 $0$0

GREEN HILLS INS CO RRG11941 $21,492,984 $86,270 $24,075,481$2,496,227 $6,573,045 $2,225,060 $10,089,090$1,290,985 $13,986,391 ($3,107)($2,230)

GUARDIAN RRG INC11696 $5,252,975 $0 $5,379,568$126,593 $2,159,772 $0 $2,275,411$115,639 $3,104,157 ($647)$50

GUTHRIE RRG12014 $41,238,641 $0 $45,648,383$4,409,742 $24,277,150 $3,869,739 $28,436,072$289,183 $17,212,311 ($7,532)($645)

HAMDEN ASSURANCE RRG, INC.13057 $2,670,135 $0 $88,213,898$85,543,763 $0 $0 $86,678,456$86,678,456 $1,535,442 $0$0

HEALTH CARE CAS RRG INC12236 $15,706,122 $0 $17,966,480$2,260,358 $5,706,124 $896,127 $16,164,443$9,562,192 $1,802,038 ($1,069)($873)

HEALTH NETWORK PROVIDERS MUT INS CO11813 $6,843,876 $0 $7,461,259$617,383 $2,989,948 $489,727 $4,629,588$1,149,913 $2,831,671 ($1,366)($861)

HEALTH PROVIDERS INS RECIPROCAL RRG10080 $74,927,429 $0 $80,776,546$5,849,117 $26,702,595 $5,023,147 $32,846,957$1,121,215 $47,929,589 ($7,265)($4,564)

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

11832 $19,931,425 $289,070 $42,070,437$21,849,942 $9,197,918 $2,001,714 $32,943,937$21,744,305 $9,126,501 $933$898

HEALTHCARE PROVIDERS INS CO RRG11683 $67,180,868 $0 $69,799,690$2,618,822 $20,093,804 $4,674,655 $29,143,957$4,375,498 $40,655,733 ($4,726)($4,030)

HEARTLAND HEALTHCARE RECIP RRG11998 $14,224,937 $0 $14,476,908$251,971 $5,904,572 $0 $6,135,395$230,823 $8,341,513 ($1,464)($1,036)

HERITAGE WARRANTY INS RRG INC11097 $995,650 $0 $995,650$0 $10,600 $195,036 $308,150$102,514 $687,501 ($161)($72)

HOME CONSTRUCTION INS CO RRG11950 $6,106,259 $0 $6,234,313$128,054 $3,319,882 $12,324 $3,952,432$620,226 $2,281,881 ($401)($112)

HOUSING AUTHORITY RRG INC26797 $296,261,341 $0 $305,762,623$9,501,282 $87,964,919 $12,343,821 $113,332,922$13,024,182 $192,429,700 ($49,706)($21,612)

HOW INSURANCE COMPANY, A RISK RETENTION GROUP41246 $121,992,989 $0 $123,236,893$1,243,904 $1,663,000 $0 $13,285,429$11,622,429 $109,951,468 $49,360$25,901

ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP11268 $286,104,966 $2,575,418 $314,049,968$25,369,584 $57,884,030 $12,274,968 $89,410,925$19,251,927 $224,639,043 ($16,933)($9,488)

INDEMNITY INSURANCE CORPORATION, RRG12018 $23,778,120 $618,961 $62,733,350$38,336,269 $14,801,033 $19,240,383 $39,682,095$5,640,679 $23,051,255 $256$1,185

INDIANA HEALTHCARE RECIP RRG11692 $27,014,628 $0 $27,431,450$416,822 $11,017,945 $0 $11,927,155$909,210 $15,504,295 ($3,698)($1,744)

INNOVATIVE PHYSICIAN SOLUTIONS RRG12320 $4,032,342 $0 $5,116,247$1,083,905 $2,112,464 $596,329 $2,764,048$55,255 $2,352,199 $503$447

IRONSHORE RISK RETENTION GROUP, INC.14375 $252,876 $0 $2,381,672$2,128,796 $7,641 $61,359 $1,365,920$1,296,920 $1,015,752 $0$0

J.M. WOODWORTH RRG, INC.12594 $14,410,545 $1,764,654 $20,928,206$4,753,007 $10,922,275 $5,292,122 $16,540,550$326,153 $4,387,656 $2,039($551)

KENTUCKIANA MEDICAL RECIPROCAL RRG11872 $49,802,021 $0 $53,017,888$3,215,867 $19,674,951 ($656,602) $20,981,793$1,963,444 $32,036,095 ($9,069)($5,615)

KENTUCKY HOSPITAL INS CO RRG11939 $17,929,668 $0 $18,784,002$854,334 $8,528,092 $204,466 $9,338,353$605,795 $9,445,649 ($1,460)$396

LAKE STREET RRG INC11803 $2,760,631 $0 $2,760,731$100 $1,039,022 $0 $1,135,823$96,801 $1,624,908 ($103)$143

LAMMICO RRG, INC.14444 $600,000 $0 $648,321$48,321 $988 $1,799 $51,796$49,009 $596,525 $0$0

LANCET INDEMNITY RISK RETENTION GROUP, INC.13014 $11,636,823 $0 $16,578,965$4,942,142 $7,019,538 $4,352,299 $12,850,851$1,479,014 $3,728,114 $788$1,099

LENDERS PROTECTION ASSUR CO RRG11500 $2,387,754 $0 $2,468,660$80,906 $0 $0 $69,221$69,221 $2,399,439 $0$0

LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY12627 $5,181,410 $0 $7,024,170$1,842,760 $4,409,310 $586,667 $5,377,299$381,322 $1,646,880 $1,232$219

LIFE SERVICES NETWORK RECIP INS RRG11958 $7,065,725 $0 $7,226,157$160,432 $2,122,967 $0 $2,159,919$36,952 $5,066,238 ($36)($50)

LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP14084 $503,812 $0 $542,260$38,448 $0 $10 $1,165$1,155 $541,094 $0$0

LVHN RRG11684 $37,121,624 $0 $49,008,453$11,886,829 $0 $0 $44,008,453$44,008,453 $5,000,000 $0$0

Year-End 2012 - RRG Analysis

COMPANYNAIC Cash & Invested Assets

Reinsurance Recoverables

Risk Retention Groups - Selected Statutory Balance Sheet and Schedule P DataOther Assets Total Assets Loss & LAE

ReservesUnearned

Premium ReserveOther Liabilities Total Liabilities Policyholders'

Surplus1 Year

Development (000s)

2 Year Development

(000s)

MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP

12554 $2,412,352 $0 $3,234,048$821,696 $984,296 $452,019 $1,768,097$331,782 $1,465,951 ($282)($241)

MARATHON FIN INS CO INC RRG11117 $3,032,539 $0 $11,735,344$8,702,805 $50,000 $135,921 $9,269,976$9,084,055 $2,465,368 ($265)($65)

MCIC VERMONT INC RRG10697 $27,215,602 $0 $136,915,732$109,700,130 $16,149,978 $0 $125,668,124$109,518,146 $11,247,608 $4$0

MD RISK RETENTION GROUP, INC.12355 $15,378,675 $19,654 $15,891,388$493,059 $6,022,242 $0 $7,189,120$1,166,878 $8,702,266 ($3,923)($3,308)

MEDAMERICA MUTUAL RRG INC26257 $69,668,886 $0 $71,565,637$1,896,751 $27,735,149 $129,132 $37,440,185$9,575,904 $34,125,452 ($8,759)($4,156)

MEDPRO RRG RISK RETENTION GROUP13589 $5,062,861 $0 $13,616,870$8,554,009 $1,185,776 $822,302 $10,757,794$8,749,716 $2,859,076 ($17)($16)

MEDSTAR LIABILITY LTD INS CO INC RRG10124 $3,823,636 $0 $3,867,401$43,765 $1,758,109 $90,347 $2,401,532$553,076 $1,465,869 ($952)($868)

MENTAL HEALTH RISK RETENTION GROUP44237 $22,647,629 $0 $23,792,905$1,145,276 $9,778,119 $1,609,238 $12,163,102$775,745 $11,629,803 ($3,728)($1,727)

MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP11999 $4,360,400 $0 $6,377,259$2,016,859 $3,670,657 $490,720 $4,660,174$498,797 $1,717,088 ($86)($224)

MILLBROOK NMF RISK RETENTION GROUP, INC.14219 $963,298 $0 $1,010,957$47,659 $98,017 ($640,626) $118,481$661,090 $892,476 $0$0

MMIC RRG, INC.14062 $158,574 $0 $558,574$400,000 $0 $311 $21,231$20,920 $537,342 $0$0

MOUNTAIN LAKE RISK RETENTION GROUP, INC.13812 $634,078 $0 $2,014,494$1,380,416 $553,000 $166,667 $845,103$125,436 $1,169,391 ($470)($11)

MOUNTAIN LAUREL RRG INC11547 $14,973,655 $0 $20,650,913$5,677,258 $11,204,000 $2,680,688 $15,135,950$1,251,262 $5,514,963 ($69)$931

MOUNTAIN STATES HEALTHCARE RECIP RRG11585 $97,089,186 $0 $98,842,652$1,753,466 $46,172,722 $770,000 $55,296,280$8,353,558 $43,546,372 ($18,585)($10,056)

MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.12779 $26,025,203 $0 $28,184,642$2,159,439 $12,630,140 $0 $13,303,847$673,707 $14,880,795 ($4,775)($1,426)

NASW RISK RETENTION GROUP, INC.14366 $844,539 $0 $1,982,312$1,137,773 $2,940 $38,763 $538,665$496,962 $1,443,647 $0$0

NATIONAL ASSISTED LIVING RRG, INC.11806 $7,308,847 $0 $7,604,107$295,260 $2,916,000 $707,300 $4,110,774$487,474 $3,493,333 ($617)($378)

NATIONAL BUILDERS & CONTRACTORS INS12235 $4,001,682 $0 $4,913,697$912,015 $2,987,654 $126,519 $3,514,699$400,526 $1,398,998 ($402)($6)

NATIONAL CATHOLIC RRG10083 $63,770,023 $0 $65,733,282$1,963,259 $39,778,005 $5,736,211 $47,031,557$1,517,341 $18,701,725 $3,112($299)

NATIONAL CONTRACTORS INS CO INC RRG12293 $6,131,068 $2,339,605 $10,444,302$1,973,629 $4,668,851 $469,329 $6,682,675$1,544,495 $3,761,627 $1,120$911

NATIONAL GUARDIAN RISK RETENTION GROUP36072 $12,459,156 $1,660,579 $16,313,991$2,194,256 $8,820,315 $0 $10,333,795$1,513,480 $5,980,196 ($1,403)($381)

NATIONAL HOME INSURANCE CO RRG44016 $46,074,730 $0 $48,606,521$2,531,791 $5,235,958 $14,418,122 $29,588,623$9,934,543 $19,017,898 ($918)($11)

NATIONAL INDEPENDENT TRUCKERS IC RRG11197 $4,822,101 $374,346 $9,199,076$4,002,629 $1,953,877 $960,930 $3,773,207$858,400 $5,425,869 ($118)$153

NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.

12529 $2,760,375 $0 $6,712,742$3,952,367 $0 $0 $3,493,492$3,493,492 $3,219,249 $0$0

NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)10234 $11,989,480 $0 $12,553,901$564,421 $20,000 $1,568,661 $1,746,956$158,295 $10,806,945 ($5)$0

NCMIC RISK RETENTION GROUP, INC.14130 $1,792,507 $0 $1,792,535$28 $0 $0 $0$0 $1,792,535 $0$0

NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.12539 $3,104,428 $0 $3,291,606$187,178 $1,452,818 $289,751 $2,759,443$1,016,874 $532,163 ($913)($456)

NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP

13792 $10,933,543 $0 $12,664,673$1,731,130 $156,330 $4,450,035 $6,867,802$2,261,437 $5,796,871 ($11)($26)

NEW STAR RISK RETENTION GROUP, INC.12532 $6,878,416 $1,061,723 $9,337,285$1,397,146 $2,687,078 $1,005,626 $5,197,080$1,504,376 $4,140,205 $560$916

NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG12275 $12,152,927 $0 $19,420,749$7,267,822 $12,231,413 $4,042,917 $14,425,887($1,848,443) $4,994,862 $2,968$2,010

NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP

13059 $9,378,196 $0 $9,435,992$57,796 $5,316,447 $426,658 $7,739,415$1,996,310 $1,696,577 ($313)$205

NOVUS INS CO RRG10752 $3,043,805 $0 $5,151,437$2,107,632 $16,251,802 $635,644 $3,360,622($13,526,824) $1,790,815 $8,619$2,638

OASIS RECIPROCAL RISK RETENTION GROUP13644 $5,652,618 $0 $9,111,446$3,458,828 $3,290,899 $1,412,434 $7,288,225$2,584,892 $1,823,221 ($1,110)($690)

OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC.

12845 $1,153,541 $0 $1,777,240$623,699 $1,180,856 $358,772 $997,486($542,142) $779,754 $396($110)

OCEAN RRG INC10158 $2,952,843 $0 $8,612,776$5,659,933 $5,871,989 $1,236,682 $7,254,773$146,102 $1,358,003 $2,856$2,291

OCEANUS INS CO A RRG12189 $66,118,571 $0 $81,860,654$15,742,083 $39,893,050 $15,659,336 $61,370,210$5,817,824 $20,490,443 $2,134$818

OLYMPIA RISK RETENTION GROUP, INC.13062 $132,787 $0 $1,056,243$923,456 $756,956 $0 $865,334$108,378 $190,909 ($277)($407)

OMS NATL INS CO RRG44121 $332,656,971 $0 $382,982,549$50,325,578 $153,761,068 $46,221,719 $216,369,741$16,386,954 $166,612,808 ($24,988)($12,270)

OOIDA RISK RETENTION GROUP INC10353 $38,801,368 $0 $61,945,372$23,144,004 $16,686,668 $5,551,843 $41,863,805$19,625,294 $20,081,567 ($4,880)($2,427)

OPHTHALMIC MUTUAL INS CO RRG44105 $234,256,559 $0 $245,951,335$11,694,776 $55,791,199 $23,647,001 $96,417,837$16,979,637 $149,533,498 ($8,639)($3,482)

ORANGE COUNTY MEDICAL RECIP INS RRG12183 $5,067,423 $0 $6,098,933$1,031,510 $1,124,717 $0 $1,493,741$369,024 $4,605,192 ($1,187)($1,205)

ORDINARY MUTUAL A RRG CORP10171 $17,679,907 $0 $18,218,904$538,997 $7,003,318 $0 $8,007,861$1,004,543 $10,211,043 ($2,806)($1,315)

Year-End 2012 - RRG Analysis

COMPANYNAIC Cash & Invested Assets

Reinsurance Recoverables

Risk Retention Groups - Selected Statutory Balance Sheet and Schedule P DataOther Assets Total Assets Loss & LAE

ReservesUnearned

Premium ReserveOther Liabilities Total Liabilities Policyholders'

Surplus1 Year

Development (000s)

2 Year Development

(000s)

ORTHOFORUM INSURANCE COMPANY (A RISK RETENTION GROUP)

14260 $4,690,806 $0 $7,337,536$2,646,730 $1,012,643 $2,122,377 $3,974,147$839,127 $3,363,389 $0$0

PACE RRG INC11575 $4,846,287 $7,297,473 $16,110,041$3,966,281 $6,532,438 $103,535 $13,277,764$6,641,791 $2,832,277 $1,997$1,895

PARATRANSIT INSURANCE COMPANY, RRG44130 $21,003,903 $237,500 $23,273,930$2,032,527 $8,100,000 $1,576,306 $12,693,766$3,017,460 $10,580,164 ($5,183)($3,279)

PCH MUTUAL INSURANCE COMPANY, RRG11973 $7,448,007 $0 $8,168,958$720,951 $3,122,593 $1,198,101 $4,785,692$464,998 $3,383,266 ($1,169)($1,338)

PEACE CHURCH RRG INC11846 $19,505,216 $0 $19,756,289$251,073 $6,163,830 $0 $6,639,822$475,992 $13,116,466 ($3,507)($1,792)

PEDIATRICANS INS RRG OF AMER11772 $587,261 $0 $632,609$45,348 $542,525 $0 $532,548($9,977) $100,061 $57$303

PELICAN INS RRG11587 $17,014,699 $159,562 $17,313,231$138,970 $2,647,479 $420,428 $3,164,808$96,901 $14,148,423 ($1,501)($357)

PHOEBE RECIPROCAL RRG12004 $4,951,093 $0 $4,977,508$26,415 $1,380,906 $0 $1,427,598$46,692 $3,549,910 ($308)($235)

PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.13995 $982,812 $0 $2,441,515$1,458,703 $349,400 $376,081 $1,927,300$1,201,819 $514,215 $0($38)

PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.12746 $5,800,188 $0 $7,185,643$1,385,455 $3,354,369 $1,439,812 $5,344,352$550,171 $1,841,291 ($676)($403)

PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP

12918 $4,718,364 $0 $5,721,891$1,003,527 $2,975,269 $851,391 $4,120,681$294,021 $1,601,210 ($794)($260)

PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP

12507 $46,649,141 $0 $56,205,649$9,556,508 $16,745,846 $3,917,244 $37,790,199$17,127,109 $18,415,450 ($3,375)($3,592)

PHYSICIANS PROFESSIONAL LIABILTY RRG11514 $39,070,680 $203,401 $41,884,154$2,610,073 $14,241,954 $6,607,197 $23,172,521$2,323,370 $18,711,633 ($5,835)($3,237)

PHYSICIANS REIMBURSEMENT RRG10934 $26,610,437 $0 $27,036,953$426,516 $15,741,330 $0 $16,251,231$509,901 $10,785,722 ($3,702)($2,074)

PHYSICIANS SPECIALTY LTD RRG11513 $10,067,581 $0 $11,753,846$1,686,265 $5,410,194 $0 $8,026,750$2,616,556 $3,727,096 ($1,140)($1,019)

PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

14108 $1,117,398 $0 $1,770,926$653,528 $81,102 $118,700 $277,993$78,191 $1,492,933 $0$0

PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP

13582 $8,451,226 $0 $8,480,091$28,865 $2,982,313 $0 $3,154,059$171,746 $5,326,032 ($1,564)$83

PINE TREE INS RECIPROCAL RRG12348 $14,923,593 $0 $15,208,966$285,373 $4,205,497 $0 $6,177,306$1,971,809 $9,031,660 ($3,807)($2,201)

PINELANDS INS CO RRG INC12198 $439,605 $0 $4,381,309$3,941,704 $1,363,290 $673,680 $3,434,953$1,397,983 $946,356 $220$48

PINNACLE CONSORTIUM OF HIGHER ED RRG11980 $6,581,396 $0 $6,735,275$153,879 $2,023,343 $481,490 $2,661,893$157,060 $4,073,382 ($276)($266)

PINNACLE RRG INC11858 $2,489,273 $0 $2,489,273$0 $53,812 $0 $99,949$46,137 $2,389,324 ($149)($40)

PLICO RISK RETENTION GROUP, INC.14205 $1,591,689 $0 $1,591,689$0 $0 $0 $27$27 $1,591,662 $0$0

PONCE DE LEON LTC RRG, INC.11809 $13,249,394 $316,007 $14,352,329$786,928 $4,800,942 $1,294,566 $6,521,231$425,723 $7,831,098 ($319)($310)

PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC12497 $28,555,600 $18,737,646 $54,588,283$7,295,037 $18,045,439 $10,428,145 $44,175,650$15,702,066 $10,412,633 $1,449$2,023

PREFERRED PHYSICIANS MEDICAL RRG44083 $186,536,017 $0 $192,910,354$6,374,337 $64,405,288 $6,613,531 $90,061,649$19,042,830 $102,848,705 ($14,214)($10,306)

PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP

12613 $10,976,296 $368,665 $14,386,344$3,041,383 $3,435,052 $3,936,942 $10,606,988$3,234,994 $3,779,356 ($383)($1,387)

PROAIR RISK RETENTION GROUP, INC.13179 $57,936 $0 $635,855$577,919 $37,165 $16,888 $134,391$80,338 $501,464 ($67)($37)

PROBUILDERS SPECIALTY INS CO RRG11671 $14,077,585 $0 $50,131,409$36,053,824 $33,478,327 $0 $35,865,806$2,387,479 $14,265,603 $1,940$1,956

PROFESSIONAL EXCHANGE ASSURANCE COMPANY (A RISK RETENTION GROUP)

14461 $603,985 $0 $603,985$0 $0 $0 $29,224$29,224 $574,761 $0$0

PROFESSIONAL MEDICAL INS RRG INC10840 $325,129 $0 $337,849$12,720 $0 $0 $12,560$12,560 $325,289 $0$0

PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

12608 $2,404,149 $946 $2,481,934$76,839 $109,763 $18,455 $256,413$128,195 $2,225,521 $31($20)

PROFESSIONALS RISK RETENTION GROUP, INC.13067 $1,785,848 $98,750 $3,148,713$1,264,115 $531,808 $0 $1,973,342$1,441,534 $1,175,372 ($223)($22)

PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG11350 $5,228,210 $81,617 $5,365,716$55,889 $862,963 $0 $1,096,695$233,732 $4,269,021 ($442)($355)

RED CLAY RISK RETENTION GROUP, INC.13078 $3,698,458 $0 $5,372,066$1,673,608 $2,105,215 $0 $2,594,655$489,440 $2,777,411 ($486)($321)

RED ROCK RISK RETENTION GROUP, INC.13736 $11,068,766 $0 $12,809,523$1,740,757 $6,771,533 $0 $8,984,435$2,212,902 $3,825,088 $1,531$945

REPUBLIC RRG12019 $1,333,182 $0 $1,834,695$501,513 $0 $0 $7,531$7,531 $1,827,164 $0$0

RESTORATION RISK RETENTION GROUP, INC.12209 $46,136,653 $0 $50,466,143$4,329,490 $23,431,582 $3,681,578 $31,853,356$4,740,196 $18,612,787 ($5,836)($2,668)

RPX RRG14135 $3,907,279 $0 $4,267,179$359,900 $62,993 $206,917 $401,821$131,911 $3,865,358 $0$0

SAINT LUKE'S HLTH SYSTEM RRG11712 $22,950,250 $0 $23,468,282$518,032 $6,293,697 $1,154,533 $8,973,129$1,524,899 $14,495,153 ($585)($320)

SAMARITAN RISK RETENTION GROUP, INC.12511 $19,619,375 $0 $23,498,092$3,878,717 $3,348,100 $5,160,772 $9,316,533$807,661 $14,181,560 ($1,855)($59)

SCHUYKILL CROSSING RECIPROCAL RRG11808 $26,302,846 $0 $32,726,311$6,423,465 $16,736,531 $4,895,863 $22,767,655$1,135,261 $9,958,656 ($5,330)($3,701)

Year-End 2012 - RRG Analysis

COMPANYNAIC Cash & Invested Assets

Reinsurance Recoverables

Risk Retention Groups - Selected Statutory Balance Sheet and Schedule P DataOther Assets Total Assets Loss & LAE

ReservesUnearned

Premium ReserveOther Liabilities Total Liabilities Policyholders'

Surplus1 Year

Development (000s)

2 Year Development

(000s)

SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP

12988 $7,916,259 $0 $10,750,258$2,833,999 $5,506,370 $1,612,446 $6,868,514($250,302) $3,881,744 $489$33

SECURITY AMERICA RRG INC11267 $3,530,146 $0 $4,169,692$639,546 $961,314 $697,196 $1,548,260($110,250) $2,621,432 $320($41)

SELECT MD RRG14136 $1,478,482 $0 $1,660,025$181,543 $283,219 $0 $704,902$421,683 $955,123 $0$0

SENTINEL ASSUR RRG INC12005 $15,636,379 $0 $15,991,270$354,891 $3,851,953 $1,272,953 $5,475,597$350,691 $10,515,673 ($1,735)($1,162)

SIGMA RRG, INC.13557 $10,413,557 $0 $13,161,591$2,748,034 $5,219,673 $2,187,963 $7,700,567$292,931 $5,461,023 ($1,352)($614)

SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.12907 $60,064,781 $0 $62,320,914$2,256,133 $39,153,426 $1,917,000 $49,567,629$8,497,203 $12,753,286 $1,769($1,143)

SPIRIT COMMERCIAL AUTO RISK RETENTION GROUP14207 $2,010,274 $0 $7,054,427$5,044,153 $753,589 $3,428,825 $5,408,508$1,226,094 $1,645,919 $0$0

SPIRIT MOUNTAIN INS CO RRG INC10754 $5,414,061 $0 $5,697,184$283,123 $1,905,750 $508,212 $2,812,309$398,347 $2,884,875 ($1,386)($930)

ST CHARLES INS CO RRG11114 $10,956,241 $0 $11,250,427$294,186 $3,792,153 $14,381 $4,340,564$534,030 $6,909,863 ($6,216)($4,792)

ST LUKES HEALTH NETWORK INS CO RRG11688 $39,477,133 $0 $49,888,209$10,411,076 $28,499,895 $8,607,093 $37,459,353$352,365 $12,428,856 $1,907($789)

STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.13993 $250,189 $0 $715,434$465,245 $0 $13,589 $66,465$52,876 $648,969 $0$0

STATES SELF-INSURERS RRG44075 $21,556,025 $0 $22,007,036$451,011 $10,772,143 $752,005 $13,027,421$1,503,273 $8,979,616 $646$400

STICO MUT INS CO RRG10476 $18,999,667 $321,723 $21,240,305$1,918,915 $4,450,219 $5,328,874 $10,312,938$533,845 $10,927,368 ($1,858)($1,265)

SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC

13135 $647,498 $0 $658,672$11,174 $0 $0 $294,720$294,720 $363,952 $0$0

SUNLAND RISK RETENTION GROUP, INC.14026 $770,826 $0 $2,198,064$1,427,238 $270,523 $0 $1,108,840$838,317 $1,089,223 $0($67)

SUPERIOR INS CO RRG11669 $12,379,754 $0 $24,108,142$11,728,388 $12,721,594 $2,499,759 $19,814,262$4,592,909 $4,293,880 $273($165)

TERRA INS CO RRG10113 $26,068,832 $0 $28,849,416$2,780,584 $1,953,550 $0 $12,778,728$10,825,178 $16,070,688 ($433)($245)

TERRAFIRMA RISK RETENTION GROUP LLC14395 $4,213,681 $0 $4,311,926$98,245 $0 $0 $26,031$26,031 $4,285,895 $0$0

THE HEALTHCARE UNDERWRITING CO RRG10152 $18,824,013 $0 $78,797,663$59,973,650 $40,433,715 $11,175,895 $52,391,665$782,055 $26,405,998 $3,657$1,381

TITAN INS CO INC RRG11153 $34,309,250 $0 $35,779,085$1,469,835 $0 $6,492,784 $8,252,493$1,759,709 $27,526,592 $0$0

TITLE INDUSTRY ASSURANCE CO RRG10084 $4,680,663 $0 $6,577,484$1,896,821 $2,411,875 $322,484 $3,582,579$848,220 $2,994,905 ($330)($177)

UNITED CENTRAL PA RRG11548 $21,748,660 $0 $21,974,894$226,234 $7,997,064 $0 $16,145,107$8,148,043 $5,829,787 ($157)$2,445

UNITED CONTRACTORS INS CO INC RRG12280 $14,713,179 $97,150 $21,068,867$6,258,538 $15,460,637 $3,339,942 $18,873,667$73,088 $2,195,200 $14,029$9,795

UNITED EDUCATORS INS RRG INC10020 $690,833,194 $0 $727,883,191$37,049,997 $361,365,153 $61,125,711 $474,601,573$52,110,709 $253,281,619 ($25,377)($3,004)

UNITED HOME INSURANCE CO A RRG10712 $2,158,026 $0 $3,161,729$1,003,703 $0 $1,558,116 $1,669,948$111,832 $1,491,781 $0$0

URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP12915 $2,437,727 $0 $2,698,934$261,207 $659,904 $723,677 $1,240,385($143,196) $1,458,549 ($10)$48

UV INSURANCE RISK RETENTION GROUP, INC.13988 $229,609 $0 $812,009$582,400 $265,931 $37,980 $311,608$7,697 $500,401 $0$35

VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP

11063 $2,647,377 $0 $2,654,769$7,392 $0 $167,873 $237,054$69,181 $2,417,715 ($250)$0

VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.13974 $1,648,906 $0 $1,861,634$212,728 $502,370 $0 $1,212,311$709,941 $649,323 $0($35)

VIRGINIA SENIOR CARE RISK RETENTION GROUP13786 $3,415,328 $0 $3,519,432$104,104 $919,118 $538,655 $1,525,681$67,908 $1,993,751 ($2)($4)

WARREN RRG INC11802 $7,642,691 $0 $7,711,312$68,621 $3,911,362 $185,674 $4,459,089$362,053 $3,252,223 ($1)$816

WELLSPAN RRG11682 $15,891,800 $0 $22,012,182$6,120,382 $14,048,710 $0 $14,103,491$54,781 $7,908,691 ($4,493)($2,550)

WESTERN CATHOLIC INSURANCE COMPANY RRG14122 $2,908,614 $0 $4,521,324$1,612,710 $1,306,496 $1,126,078 $3,078,425$645,851 $1,442,898 $0$356

WESTERN INS RRG INC11978 $528,570 $0 $535,343$6,773 $0 $0 $22,778$22,778 $512,565 $0$0

WESTERN PACIFIC MUT INS CO RRG40940 $132,433,262 $0 $134,729,430$2,296,168 $16,366,337 $19,862,613 $39,584,385$3,355,435 $95,145,045 ($11,356)($8,913)

WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP13154 $2,743,332 $0 $2,821,422$78,090 $135,268 $129,817 $384,344$119,259 $2,437,078 $7$0

YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)

11796 $17,300,406 $0 $17,560,596$260,190 $6,250,495 $0 $12,002,828$5,752,333 $5,557,768 ($2,279)($1,182)

Year-End 2012 - RRG Analysis

COMPANYNAIC Direct Premium Written

Net Premium Written

Risk Retention Groups - Selected Statutory Income Statement DataNet Premium

EarnedLoss & Loss

Adjusted Expenses Incurred

Net Operating Gains/Losses

Net Investment Gains/Losses

Net Income/LossOther Underwriting

Expenses

ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP

12934 $2,347,309 $277,261 ($35,660)$770,937 ($23,138) $0 ($24,270)$829,735

ADVANCED PHYSICIANS INS RRG INC12166 $364,476 $364,476 $0$364,476 $276,260 $73,940 $353,286$88,216

AEGIS HEALTHCARE RRG, INC.12252 $1,602,095 $889,717 $509,804$889,717 ($44,740) $155,098 $85,093$424,653

AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP13677 $1,671,594 $382,145 $300,000$382,145 $83,136 $5,728 $88,864($991)

AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP13606 $450,000 $450,000 $1,961,098$450,000 ($1,660,778) $40,732 ($1,625,612)$149,680

AGRI INSURANCE EXCHANGE RRG28380 $728,351 $728,351 $138,340$728,351 $304,234 $318,834 $427,568$285,777

ALLEGIANT INS CO INC A RRG11965 $6,992,621 $2,059,444 $2,527,645$2,059,444 ($1,259,468) $20,735 ($1,238,733)$791,267

ALLIANCE OF NONPROFITS FOR INS RRG10023 $22,634,295 $15,484,067 $9,712,180$14,464,996 ($215,639) $1,526,224 $1,420,428$4,968,455

ALLIED PROFESSIONALS INSURANCE COMPANY, RRG11710 $20,218,977 $15,365,685 $4,396,526$12,702,856 $1,988,238 $381,496 $1,421,941$6,318,092

ALLIED SERVICES RISK RETENTION GROUP12013 $1,015,000 $1,015,000 $1,136,631$1,016,397 ($362,928) $136,687 ($226,242)$242,693

AMERICAN ASSOC OF OTHODONTISTS RRG10232 $8,174,285 $6,774,772 $3,505,458$6,877,571 $1,392,481 $770,597 $708,880$1,979,632

AMERICAN BUILDERS INSURANCE COMPANY RRG, INC.12631 ($17,124) ($4,077) $4,925$11,304 ($103,480) $482 ($81,037)$109,859

AMERICAN CONTRACTORS INS CO RRG12300 $32,264,336 $0 $0$0 $594,815 $46,538 $424,962($594,815)

AMERICAN EXCESS INS EXCHANGE RRG10903 $25,575,913 $23,353,691 $1,017,317$24,945,957 $18,734,858 $20,384,548 $39,119,676$5,193,782

AMERICAN FEED INDUSTRY INS CO RRG44202 $0 $0 ($579,162)$0 $320,509 $20,668 $247,405$258,653

AMERICAN FOREST CASUALTY COMPANY RRG11590 $2,313,501 $1,681,022 $300,110$1,537,176 $582,675 $342,347 $639,565$654,391

AMERICAN SAFETY RRG INC25448 $9,981,592 ($40,423,490) ($46,407,439)($43,940,569) $1,716,964 $225,564 $1,293,721$749,906

AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG11534 $6,685,548 $2,152,976 $1,463,910$2,081,641 ($139,104) $627,935 $400,996$756,835

AMERIGUARD RRG INC12171 $1,243,206 $1,421,754 $407,493$1,423,111 $773,502 $35,365 $525,763$242,116

APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.11598 $40,753,156 $32,935,841 $19,402,699$30,574,885 $1,464,833 $3,587,074 $3,731,658$9,707,353

ARCHITECTS & ENGINEERS INS CO RRG44148 $6,477,607 $661,936 $971,624$1,214,529 $3,001 $245,177 $238,856$239,904

ARCOA RISK RETENTION GROUP, INC.13177 $5,125,044 $5,125,044 $6,212,485$5,125,044 ($3,164,654) $265,427 ($1,881,064)$2,077,213

ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP13580 $744,290 $670,370 $25,000$692,791 $169,741 $11,250 $179,691$502,285

ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.12224 $0 $0 ($68,926)$0 ($122,278) $26,874 ($95,404)$191,204

ASSOCIATION OF CERTIFIED MORTGAGE ORIGINATORS RISK RETENTION GROUP, INC.

14425 $0 $0 $0$0 ($7,016) $637 ($4,210)$7,016

ATTORNEYS INS MUTUAL OF ALABAMA INC33677 $3,449,911 $1,823,551 $778,528$1,791,362 ($621,714) $64,803 ($556,911)$1,634,548

ATTORNEYS INSURANCE MUTUAL RRG INC22670 $5,043,060 $3,543,060 $2,334,645$3,408,559 ($338,449) $553,050 $333,655$1,412,363

ATTORNEYS LIAB ASSUR SOCIETY INC RRG10639 $320,776,681 $23,238,453 $20,019,842$23,300,328 ($189,752) $5,249,284 $5,316,451$3,470,238

ATTORNEYS LIAB PROTECTION SOC RRG32450 $40,497,695 $27,861,021 $15,479,505$26,951,130 $696,809 $4,043,300 $4,582,161$10,823,816

ATTPRO RRG RECIPROCAL RISK RETENTION GROUP13795 $157,268 $7,863 $3,816$4,625 ($51,680) $0 ($33,592)$52,489

AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC.13791 $2,306,737 $537,445 $230,406$499,300 ($160,623) $4,084 ($101,933)$429,517

BAR VERMONT RISK RETENTION GROUP INC10174 $39,805,145 $2,022,746 $850,891$2,159,684 ($177,057) $1,216,412 $988,008$1,485,850

BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.12933 $15,294,203 $5,120,835 $4,757,004$5,120,835 ($27,037) $66,366 $23,704$390,868

BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC.14169 $16,940 $13,952 $0$7,368 ($2,018) $2,831 $1,163$9,386

BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP13010 $840,443 $714,161 $20,057$629,449 $117,972 $20,172 $100,180$491,420

BROADLINE RISK RETENTION GROUP, INC.13788 $22,265,035 $19,553,100 $14,021,368$18,679,808 $3,398,341 $140,214 $3,742,941$1,260,099

CALIFORNIA HEALTHCARE INS CO INC RRG44504 $29,947,017 $17,312,848 $15,411,815$17,642,268 $368,146 $2,881,027 $2,920,765$1,862,307

CALIFORNIA MEDICAL GRP INS CO RRG12180 $2,497,933 $2,723,688 $204,573$2,826,263 $1,899,670 $0 $1,250,252$722,020

CARE RRG, INC.11825 $6,185,538 $5,083,561 $2,070,153$2,954,812 ($9,395) $134,700 $86,514$894,054

CAREGIVERS UNITED LIAB INS CO RRG11544 $6,454,637 $5,917,722 ($774,306)$5,990,849 $5,835,537 $1,592,853 $5,169,196$929,618

CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP12373 $18,882,229 $6,488,714 $3,988,920$6,488,714 $1,346,188 $6,706,570 $3,035,713$1,153,606

CASSATT RISK RETENTION GROUP INC10808 $23,941,294 $100,000 $199,139$100,000 ($77,087) $29,710 ($58,623)($22,052)

CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP13784 $566,988 $335,812 ($28,915)$335,812 $211,561 $1,695 $209,188$153,166

Year-End 2012 - RRG Analysis

COMPANYNAIC Direct Premium Written

Net Premium Written

Risk Retention Groups - Selected Statutory Income Statement DataNet Premium

EarnedLoss & Loss

Adjusted Expenses Incurred

Net Operating Gains/Losses

Net Investment Gains/Losses

Net Income/LossOther Underwriting

Expenses

CENTRAL PA PHYSICIANS RRG INC11694 $13,275,787 $13,275,787 $11,126,662$13,631,991 ($1,094,187) $2,182,234 $1,094,004$3,599,517

CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.11976 $3,750,960 $3,636,455 ($710,497)$3,781,885 $3,646,259 $543,387 $2,924,088$846,123

CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG12167 $1,087,933 $897,572 $36,413$897,572 $470,006 $123,442 $573,414$391,152

CHC CAS RRG11531 $9,683,946 $9,683,946 $118,429$9,683,946 $8,927,530 $894,416 $6,600,439$637,987

CHEROKEE GUARANTEE COMPANY INC., RRG14388 $3,964,067 $2,805,827 $711,097$936,755 $10,678 $580 ($133,185)$214,980

CIRCLE STAR INS CO RRG11839 $7,877,152 $393,858 $328,151$393,858 $640,444 ($2,544) $421,014($574,737)

CLAIM PROFESSIONALS LIAB INS CO RRG12172 $2,569,162 $553,407 $88,585$490,371 $145,387 $9,976 $163,885$256,399

CLARIAN HLTH RRG INC11992 $19,696,694 $0 $531,825$0 ($3,497,302) $1,739 $185,898$2,965,477

CLINIC MUTUAL INSURANCE CO RRG43770 $0 $51,723 $177,243$56,593 ($236,763) $173,296 ($31,570)$116,113

CMIC RISK RETENTION GROUP13756 $787,672 $56,930 $23,971$174,469 ($89,059) ($4,790) ($93,849)$239,557

COASTAL INS RRG INC11668 $8,843,713 $7,349,650 ($601,299)$7,361,496 $4,865,543 $1,407,706 $932,742$3,097,252

COLLEGE LIABILITY INS CO A RECIP RRG44598 $2,260,275 $2,260,275 $1,596,696$2,302,437 $237,077 $582,948 $884,041$468,664

COLLEGE RISK RETENTION GROUP, INC.13613 $6,436,179 $4,846,148 $2,686,073$4,755,964 $900,700 $242,253 $1,142,953$1,169,191

COLUMBIA NATIONAL RRG INC10803 $146,100 $146,100 $0$279,933 $92,641 $3,034 $62,189$187,292

COMCARE PRO INS RECIPROCAL RRG11864 $1,427,982 $1,427,982 $1,044,429$1,453,584 ($62,347) $38,562 ($22,408)$471,502

COMMUNITIES OF FAITH RRG INC11807 $1,330,631 $1,330,631 ($148,566)$1,330,631 $1,021,071 $421,823 $1,459,098$458,126

COMMUNITY BLOOD CENTERS EXCH RRG13893 $4,497,495 $2,653,494 ($931,368)$2,897,535 $2,957,549 $464,545 $3,409,094$871,354

COMMUNITY HEALTH ALLIANCE RECIP RRG11536 $13,103,707 $11,518,007 $6,016,910$11,518,007 $3,110,303 $5,235,901 $8,417,382$2,390,794

COMMUNITY HOSPITAL RRG11259 $37,988,961 $36,357,019 $24,774,622$36,357,019 $5,475,813 $7,081,709 $12,612,700$6,106,584

CONSUMER SPECIALTIES INSURANCE COMPANY RRG10075 $943,701 $404,578 $144,280$496,103 ($181,856) $196,263 $14,953$533,679

CONTINUING CARE RRG, INC.11798 $3,209,238 $2,732,003 $1,514,304$2,732,003 ($567,535) ($1,496) ($450,892)$1,785,234

CONTRACTORS INS CO OF NORTH AMER RRG11603 $3,796,073 $1,746,194 $832,800$2,078,953 $411,206 $63,811 $248,086$834,947

CONTROLLED RISK INS CO OF VT RRG10341 $115,491,955 $16,168,874 $4,147,705$16,168,874 $2,730,037 $2,805,157 $3,649,862$9,291,132

COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A RRG12042 $2,804,140 $6,401,193 $4,044,691$6,401,193 $912,227 $860,284 $1,428,062$1,444,275

COVERYS RRG, INC.14160 $65,884 $3,144 $1,281$935 ($112,618) $0 ($112,618)$112,272

CPA MUTUAL INS CO OF AMERICA RRG10164 $7,972,263 $4,219,622 $5,575,789$4,050,444 ($2,294,754) $1,028,055 ($647,765)$769,409

CROSSFIT RISK RETENTION GROUP, INC.13720 $1,564,850 $1,095,395 $229,121$835,009 $144,269 $2,578 $146,847$461,619

CRUDEN BAY RRG INC11676 $3,100,000 $3,100,000 ($295,440)$3,100,000 $3,144,201 $512,179 $3,656,380$251,239

CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP13655 $7,577,523 $4,217,367 $1,244,480$3,862,350 $2,017,049 $17,593 $2,083,049$600,821

DELAWARE PROFESSIONAL INSURANCE CO43125 $928,280 $928,280 $1,234,816$1,035,960 ($834,689) $462,114 ($254,823)$635,832

DOCTORS & SURGEONS NATIONAL RRG13018 $6,537,525 $4,895,503 $2,038,013$3,838,678 $253,623 $169,727 $279,469$1,547,042

DUBOIS MEDICAL RRG11842 $1,092,263 $1,092,263 ($486,548)$1,087,798 $1,405,452 $229,320 $1,634,772$168,894

EASTERN DENTISTS INS CO RRG10115 $10,496,357 $8,992,150 $3,276,763$8,791,566 $537,001 $1,273,930 $1,642,320$4,363,054

ELITE TRANSPORTATION RRG INC10125 $5,985,564 $3,756,924 $3,071,494$3,101,143 ($810,037) $504,649 $37,422$839,686

EMERGENCY CAPITAL MANAGEMENT, LLC, RRG14163 $3,023,351 $1,004,310 $768,950$1,004,310 $45,744 $13,784 ($10,886)$189,616

EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)12003 $4,431,019 $3,691,699 $2,283,360$4,047,396 ($173,951) $346,579 ($300,965)$1,937,987

EMERGENCY MEDICINE RRG INC12015 $2,194,703 $1,751,203 $1,169,147$2,162,148 $166,920 $401,269 $452,767$826,081

EMERGENCY PHYSICIANS INS CO RRG11714 $11,331,853 $10,130,888 $8,537,596$12,576,878 ($33,962) $1,097,335 $994,498$4,073,244

EVERGREEN USA RRG INC38466 $5,433,986 $3,642,840 $1,982,882$3,595,319 ($278,424) $485,316 $215,009$1,890,861

FAIRWAY PHYSICIANS INS CO RRG11840 $11,731,969 $10,324,647 $5,394,935$10,100,278 $1,198,332 $748,518 $1,179,664$3,507,011

FAITH AFFILIATED RRG INC11698 $1,153,107 $1,153,107 $828,854$1,044,768 ($83,953) $315,714 $127,549$299,867

FIDUCIARIES RISK RETENTION GROUP, INC.14439 $0 $0 $0$0 ($10,048) ($81) ($8,610)$10,048

FIRST KEYSTONE RISK RETENTION GROUP, INC.11801 $7,716,893 $7,716,893 $5,906,799$9,130,077 $109,451 $70,427 $156,859$3,113,827

FIRST MEDICAL INS CO RRG11278 $11,153,000 $11,153,000 $5,102,079$11,693,476 $6,042,246 $8,424,810 $14,467,056$549,151

FORT WAYNE MEDICAL SURETY COMPANY, RRG12625 $1,271,358 $1,271,358 $208,670$1,320,797 $631,157 $6,603 $420,054$480,970

Year-End 2012 - RRG Analysis

COMPANYNAIC Direct Premium Written

Net Premium Written

Risk Retention Groups - Selected Statutory Income Statement DataNet Premium

EarnedLoss & Loss

Adjusted Expenses Incurred

Net Operating Gains/Losses

Net Investment Gains/Losses

Net Income/LossOther Underwriting

Expenses

FRANKLIN CASUALTY INS CO RRG10842 $45,223,043 $3,454,316 $1,590,178$3,391,810 $531,680 $6,988 $538,668$1,269,952

FREDERICKSBURG PROFESSIONAL RISK EXC12016 $2,100,222 $2,100,222 $511,990$2,100,222 $1,265,627 $1,309,774 ($424,599)$322,605

GABLES RISK RETENTION GROUP, INC.14032 $1,803,596 $1,803,596 $1,319,095$1,551,876 ($58,067) $1,433 ($56,634)$290,848

GEISINGER INS CORP RRG12000 $13,051,277 $1,068,423 $500,000$1,029,347 $62,234 $1,228 $63,462$467,113

GENERAL EASTERN SKI INS RRG INC10163 $0 $0 $78,152$0 ($159,206) $16,968 ($134,510)$81,054

GERIC INSURANCE RISK RETENTION GROUP, INC.13782 $40,000 $40,000 $2,703$23,452 ($17,592) $2,410 ($10,020)$38,341

GLOBAL HAWK INSURANCE COMPANY RRG11948 $8,790,102 $8,177,475 $3,980,844$6,196,112 $271,914 $22,199 $294,113$1,943,354

GLOBAL INTL INS CO INC A RRG10991 $609,890 $609,890 $0$609,890 $365,611 $573,030 $646,071$244,279

GOLDEN INS CO RRG11145 $2,128,061 $1,760,470 $735,931$1,449,820 $57,780 $187,079 $213,915$656,109

GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.12512 $1,129,506 $1,129,506 $1,503,969$1,129,506 ($502,175) $28,667 ($430,203)$127,712

GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

13973 $495,183 $360,296 $6,916$249,577 ($55,845) $193 ($36,730)$298,506

GRACO RRG INC11581 $1,620,056 $145,056 $0$145,056 $11,310 $2,307 ($6,106)$133,746

GREEN HILLS INS CO RRG11941 $4,487,000 $4,487,000 $244,964$4,458,919 $3,485,715 $7,176 $2,309,151$728,240

GUARDIAN RRG INC11696 $1,060,322 $1,060,322 $1,615,113$1,060,322 ($761,175) $143,689 ($622,861)$206,384

GUTHRIE RRG12014 $7,782,003 $7,782,003 $5,804,168$8,585,476 $2,457,733 $2,878,541 $5,336,274$323,576

HAMDEN ASSURANCE RRG, INC.13057 $0 $0 $0$0 $32,259 ($1,998) $30,261($32,259)

HEALTH CARE CAS RRG INC12236 $7,897,641 $2,563,581 $1,518,442$2,399,627 ($6,715) $197,513 $147,887$887,900

HEALTH NETWORK PROVIDERS MUT INS CO11813 $1,659,201 $1,496,234 $605,731$1,519,439 $498,826 $69,051 $163,037$414,882

HEALTH PROVIDERS INS RECIPROCAL RRG10080 $13,982,985 $12,091,974 $5,868,176$12,802,508 $3,093,107 $291,692 $3,384,799$3,841,225

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

11832 $42,354,459 $3,745,323 $4,030,621$3,660,273 $110,495 $336,282 $374,600($480,844)

HEALTHCARE PROVIDERS INS CO RRG11683 $8,285,815 $7,570,694 $2,336,971$7,486,446 $3,301,834 $1,827,072 $5,190,385$1,847,641

HEARTLAND HEALTHCARE RECIP RRG11998 $4,119,233 $4,119,233 $2,391,500$4,119,233 $945,390 $267,335 $1,224,750$782,343

HERITAGE WARRANTY INS RRG INC11097 ($441) ($441) $86,414$295,672 ($64,982) $1,255 ($4,418)$274,240

HOME CONSTRUCTION INS CO RRG11950 $112,214 $493,207 $302,218$471,448 ($113,853) $106,410 $23,187$283,083

HOUSING AUTHORITY RRG INC26797 $29,976,511 $28,500,568 $8,036,246$28,898,184 $12,980,248 $16,207,241 $17,903,365$7,881,690

HOW INSURANCE COMPANY, A RISK RETENTION GROUP41246 $0 $0 $674,173$0 ($943,271) $1,431,394 $466,499$0

ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP11268 $84,673,384 $28,345,585 $13,464,439$29,752,434 $5,716,748 $11,806,898 $9,404,446$10,571,247

INDEMNITY INSURANCE CORPORATION, RRG12018 $35,788,201 $35,204,858 $6,817,812$26,875,912 $3,592,554 $647,856 $2,910,992$16,465,546

INDIANA HEALTHCARE RECIP RRG11692 $5,172,244 $5,172,244 $2,152,045$5,172,244 $1,942,232 $869,425 $2,805,777$1,077,967

INNOVATIVE PHYSICIAN SOLUTIONS RRG12320 $1,205,476 $1,205,476 $800,465$1,203,776 ($127,295) $54,576 ($72,719)$530,606

IRONSHORE RISK RETENTION GROUP, INC.14375 $1,479,012 $73,950 $7,641$12,591 ($137,712) $47 ($137,665)$142,662

J.M. WOODWORTH RRG, INC.12594 $9,923,434 $8,862,552 $5,245,332$7,314,546 ($486,435) $156,500 ($210,208)$2,555,649

KENTUCKIANA MEDICAL RECIPROCAL RRG11872 $6,571,492 $3,238,292 $247,806$3,947,085 $2,849,370 $2,061,399 $4,910,769$849,909

KENTUCKY HOSPITAL INS CO RRG11939 $4,942,956 $3,148,231 $3,144,015$3,115,264 ($814,778) $359,228 ($277,697)$786,027

LAKE STREET RRG INC11803 $1,011,462 $1,011,462 $703,549$1,011,462 $155,543 $0 $155,824$147,080

LAMMICO RRG, INC.14444 $48,321 $1,806 $988$7 ($2,993) ($482) ($3,475)$2,012

LANCET INDEMNITY RISK RETENTION GROUP, INC.13014 $11,327,079 $9,144,549 $6,697,489$8,980,044 ($914,160) $78,207 ($451,113)$3,196,715

LENDERS PROTECTION ASSUR CO RRG11500 $665,529 $0 $0$0 ($49,505) $63,578 $21,992$37,692

LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY12627 $2,741,620 $2,467,975 $1,311,111$3,175,975 $1,578,340 $2,117 $1,234,740$286,523

LIFE SERVICES NETWORK RECIP INS RRG11958 $1,409,985 $1,185,574 $528,497$1,185,574 $139,455 $183,846 $318,262$517,622

LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP14084 $2,797 $28 $0$18 ($83,944) $322 ($47,971)$83,962

LVHN RRG11684 $0 $0 $5,382,039$0 ($1,855,274) $1,855,274 $0$769,912

MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP12554 $1,291,567 $917,646 $655,711$943,935 $28,924 $10,378 $28,596$259,300

Year-End 2012 - RRG Analysis

COMPANYNAIC Direct Premium Written

Net Premium Written

Risk Retention Groups - Selected Statutory Income Statement DataNet Premium

EarnedLoss & Loss

Adjusted Expenses Incurred

Net Operating Gains/Losses

Net Investment Gains/Losses

Net Income/LossOther Underwriting

Expenses

MARATHON FIN INS CO INC RRG11117 $13,760,846 $0 $186,382$330,117 $43,427 ($26,909) $150,034$100,308

MCIC VERMONT INC RRG10697 $175,014,980 $41,132,030 $18,046,448$41,132,030 ($1,126,547) $657,651 ($115,647)$24,212,129

MD RISK RETENTION GROUP, INC.12355 $4,729,080 $4,029,586 $484,148$4,029,586 $3,086,997 $373,328 $2,283,814$458,441

MEDAMERICA MUTUAL RRG INC26257 $22,028,383 $14,300,348 $11,635,543$14,402,804 $1,024,058 $2,273,257 $2,144,100$1,743,203

MEDPRO RRG RISK RETENTION GROUP13589 $21,151,349 $1,057,569 $657,003$709,125 $90,482 ($7,230) $53,966($38,360)

MEDSTAR LIABILITY LTD INS CO INC RRG10124 $1,052,783 $621,499 ($206,601)$630,589 $600,063 $4,461 $402,885$237,127

MENTAL HEALTH RISK RETENTION GROUP44237 $9,587,626 $4,326,117 $1,911,791$4,273,325 $1,844,080 $554,544 $1,161,878$517,454

MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP11999 $2,154,546 $1,780,689 $1,255,838$1,919,522 ($84,110) $340,408 $166,607$747,795

MILLBROOK NMF RISK RETENTION GROUP, INC.14219 $743,016 ($360,235) $98,017$280,391 $8,877 $0 $8,877$173,497

MMIC RRG, INC.14062 $15,940 $797 $0$486 ($62,658) $0 ($41,354)$63,143

MOUNTAIN LAKE RISK RETENTION GROUP, INC.13812 $500,000 $500,000 $303,000$500,000 ($1,332) $0 $68,084$198,332

MOUNTAIN LAUREL RRG INC11547 $56,792,925 $5,428,355 $3,502,189$5,239,133 ($843,910) $241,052 ($602,858)$2,580,854

MOUNTAIN STATES HEALTHCARE RECIP RRG11585 $31,299,253 $24,635,371 $15,506,570$23,865,371 $5,566,918 $4,854,129 $4,503,168$2,791,883

MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.12779 $6,744,555 $6,431,055 $2,247,929$6,431,054 $3,350,797 $531,984 $3,882,781$832,328

NASW RISK RETENTION GROUP, INC.14366 $709,245 $42,555 $65,264$3,792 ($245,532) $0 ($85,384)$184,060

NATIONAL ASSISTED LIVING RRG, INC.11806 $1,462,380 $1,462,380 $633,160$1,440,418 $118,470 $226,661 $290,126$688,789

NATIONAL BUILDERS & CONTRACTORS INS12235 $656,326 $356,326 $548,739$341,878 ($525,265) $4,404 ($343,768)$318,404

NATIONAL CATHOLIC RRG10083 $23,842,004 $10,760,963 $8,295,686$10,287,546 ($802,148) $1,689,474 $913,863$2,794,008

NATIONAL CONTRACTORS INS CO INC RRG12293 $3,437,563 $1,051,961 $1,422,732$1,066,948 ($1,306,849) $144,177 ($318,101)$951,065

NATIONAL GUARDIAN RISK RETENTION GROUP36072 $13,149,903 $2,507,297 $1,831,016$2,585,394 $560,403 $155,744 $516,147$193,975

NATIONAL HOME INSURANCE CO RRG44016 ($8,515) ($1,000,145) $3,783,319$5,436,843 $799,307 $1,788,417 $2,411,536$854,217

NATIONAL INDEPENDENT TRUCKERS IC RRG11197 $4,167,818 $1,894,313 $1,157,134$1,696,954 ($54,273) $112,207 $38,230$594,093

NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.12529 $3,934,461 $0 $0$0 ($824,472) $215,077 $401,734$824,472

NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)10234 $953,394 $843,350 $90,723$696,228 ($155,241) $183,202 $27,961$760,746

NCMIC RISK RETENTION GROUP, INC.14130 $0 $0 $0$0 ($130,888) ($2,050) ($132,938)$130,888

NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.12539 $789,020 ($326,159) ($115,310)($289,998) ($453,002) ($30,331) ($425,738)$278,314

NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP13792 $8,786,075 $2,154,958 $314,559$772,439 ($346,940) ($37,458) ($409,986)$804,821

NEW STAR RISK RETENTION GROUP, INC.12532 $1,996,334 $3,253,539 $1,842,644$2,808,130 $177,032 $4,587 $69,382$788,454

NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG12275 $9,607,630 $8,362,208 $5,061,051$6,958,876 $189,778 $195,870 $320,855$1,708,047

NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP13059 $4,171,470 $2,864,148 $2,137,640$2,744,506 $1,704 $71,680 $105,707$605,162

NOVUS INS CO RRG10752 $5,353,835 $389,100 $4,217,796$1,354,903 ($3,610,963) $30,051 ($766,846)$748,070

OASIS RECIPROCAL RISK RETENTION GROUP13644 $547,914 $1,650,603 $843,442$1,619,088 $22,868 $390 $23,258$752,778

OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC.12845 $779,163 $922,536 $329,730$1,267,390 $337,003 $90,560 ($89,580)$600,657

OCEAN RRG INC10158 $2,602,459 $2,602,459 $4,115,923$3,565,218 ($302,242) $23,914 ($232,726)($248,463)

OCEANUS INS CO A RRG12189 $35,133,236 $36,455,010 $19,446,475$33,938,846 $4,207,409 $1,354,214 $3,835,973$10,284,962

OLYMPIA RISK RETENTION GROUP, INC.13062 $0 $4,969 ($202,125)$4,969 ($101,102) $1,571 ($228,355)$308,196

OMS NATL INS CO RRG44121 $64,502,520 $77,255,702 $41,596,476$75,448,543 $12,032,587 $8,728,691 $15,625,660$21,819,480

OOIDA RISK RETENTION GROUP INC10353 $29,234,186 $10,231,965 $6,337,798$8,808,548 ($983,331) $215,286 $433,935$3,454,081

OPHTHALMIC MUTUAL INS CO RRG44105 $42,790,167 $38,757,726 $19,549,111$37,376,077 $8,159,883 $7,686,239 $7,548,044$9,667,083

ORANGE COUNTY MEDICAL RECIP INS RRG12183 $1,128,125 $1,128,125 ($385,809)$1,128,125 $1,384,227 $154,446 $1,538,673$129,707

ORDINARY MUTUAL A RRG CORP10171 $0 $0 ($1,628,740)$0 $1,226,508 $1,801,121 $3,027,629$402,232

ORTHOFORUM INSURANCE COMPANY (A RISK RETENTION GROUP)14260 $5,033,195 $3,644,450 $1,014,804$1,522,073 ($178,355) $17,141 ($106,402)$685,624

PACE RRG INC11575 $11,239,635 $358,914 $2,331,706$343,978 ($1,656,303) $20,856 $350,862($331,425)

PARATRANSIT INSURANCE COMPANY, RRG44130 $4,664,638 $2,960,634 ($509,335)$2,932,772 $2,565,212 $770,068 $1,092,881$876,895

PCH MUTUAL INSURANCE COMPANY, RRG11973 $3,167,454 $2,504,596 $332,350$2,606,639 $1,133,587 $80,012 $608,985$1,140,702

Year-End 2012 - RRG Analysis

COMPANYNAIC Direct Premium Written

Net Premium Written

Risk Retention Groups - Selected Statutory Income Statement DataNet Premium

EarnedLoss & Loss

Adjusted Expenses Incurred

Net Operating Gains/Losses

Net Investment Gains/Losses

Net Income/LossOther Underwriting

Expenses

PEACE CHURCH RRG INC11846 $3,281,460 $2,940,683 $111,598$2,940,683 $1,920,092 $503,435 $1,220,584$908,993

PEDIATRICANS INS RRG OF AMER11772 $0 $5,500 $302,024$5,500 ($413,085) $17,664 ($453,805)$116,561

PELICAN INS RRG11587 $2,810,554 $3,303,923 $658,875$3,347,282 $1,502,435 $338,135 $1,821,107$1,185,972

PHOEBE RECIPROCAL RRG12004 $413,934 $413,934 $92,061$413,934 $175,914 $94,666 $269,902$145,959

PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.13995 $1,832,207 $647,523 $259,689$424,693 ($132,740) $2,104 ($13,402)$297,744

PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.12746 $2,848,522 $2,515,189 $822,530$2,478,350 $342,592 $313,387 $698,224$1,313,229

PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP12918 $1,379,833 $1,379,833 $585,136$1,127,877 $128,345 $49,219 $177,368$414,396

PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP12507 $13,820,097 $10,892,955 $1,864,369$10,409,008 $7,194,533 $1,031,387 $5,489,899$1,350,106

PHYSICIANS PROFESSIONAL LIABILTY RRG11514 $5,817,241 $5,561,657 $1,918,230$5,864,893 $156,034 $828,249 $968,891$1,823,467

PHYSICIANS REIMBURSEMENT RRG10934 $3,375,188 $3,375,188 $2,288,856$3,375,188 ($484,485) $602,579 $71,474$1,570,817

PHYSICIANS SPECIALTY LTD RRG11513 $16,370,318 $1,583,920 $2,591,966$1,583,920 ($1,589,648) $346,128 ($771,799)$581,602

PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP14108 $0 $224,177 $80,568$116,176 ($189,813) $4,578 ($122,467)$225,421

PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP13582 $4,924,412 $4,035,425 $2,145,625$4,035,425 $1,404,489 $47,377 $1,451,583$485,311

PINE TREE INS RECIPROCAL RRG12348 $2,887,071 $2,549,071 ($88,439)$2,549,071 $2,084,610 $640,080 $2,811,636$552,900

PINELANDS INS CO RRG INC12198 $4,077,683 $1,223,305 $962,857$1,022,840 ($160,714) ($2,248) ($107,559)$220,697

PINNACLE CONSORTIUM OF HIGHER ED RRG11980 $5,187,569 $968,420 $251,402$974,002 $208,205 $18,294 $234,284$514,395

PINNACLE RRG INC11858 $19,275 $19,275 ($25,751)$19,275 ($3,078) $93 ($1,443)$48,104

PLICO RISK RETENTION GROUP, INC.14205 $0 $0 $0$0 ($12,068) $3,745 ($8,323)$12,068

PONCE DE LEON LTC RRG, INC.11809 $2,754,390 $2,475,955 $2,620,614$3,502,164 ($855,396) $293,359 ($471,460)$1,736,946

PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC12497 $20,239,042 $15,543,175 $5,499,565$8,106,444 $100,319 $346,897 $160,305$2,506,561

PREFERRED PHYSICIANS MEDICAL RRG44083 $37,619,797 $29,385,230 $7,310,717$28,703,573 $15,687,556 $6,158,560 $15,016,389$5,705,300

PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP12613 $7,321,165 $5,440,025 $1,698,064$5,072,561 $913,477 $103,954 $639,750$2,461,020

PROAIR RISK RETENTION GROUP, INC.13179 $186,110 $97,460 $12,634$106,904 ($23,275) ($353) ($20,092)$117,545

PROBUILDERS SPECIALTY INS CO RRG11671 $0 $0 $1,534$2,643 ($786,595) $285,182 ($388,855)$747,404

PROFESSIONAL EXCHANGE ASSURANCE COMPANY (A RISK RETENTION GROUP)14461 $0 $0 $0$0 ($28,772) $0 ($28,772)$28,772

PROFESSIONAL MEDICAL INS RRG INC10840 $1,341,000 $0 $0$0 ($108,515) $656 ($107,859)$108,515

PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

12608 $524,629 $26,231 ($3,775)$23,937 $26,580 $0 $27,064$1,132

PROFESSIONALS RISK RETENTION GROUP, INC.13067 $3,219,428 $384,194 $462,211$384,194 ($146,542) $2,426 ($103,690)$68,525

PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG11350 $1,427,118 $845,024 $124,954$845,024 $269,637 $62,733 $332,370$450,433

RED CLAY RISK RETENTION GROUP, INC.13078 $1,714,403 $1,234,737 $491,363$1,234,737 $317,388 ($37,126) $281,926$407,295

RED ROCK RISK RETENTION GROUP, INC.13736 $2,204,842 $1,069,484 $2,463,279$1,471,047 ($1,441,945) $30,838 ($1,321,271)$449,713

REPUBLIC RRG12019 $0 $0 $0$0 ($47,442) $54,194 $6,752$47,442

RESTORATION RISK RETENTION GROUP, INC.12209 $12,713,446 $11,240,411 $5,641,638$10,936,190 $3,014,968 $1,525,515 $2,877,912$2,279,584

RPX RRG14135 $540,600 $270,300 $99,306$63,383 ($431,544) $0 ($431,544)$395,621

SAINT LUKE'S HLTH SYSTEM RRG11712 $4,940,309 $2,229,417 $3,152,001$3,331,149 ($943,708) $994,532 $378,340$1,122,856

SAMARITAN RISK RETENTION GROUP, INC.12511 $8,041,677 $8,041,677 $3,235,515$7,056,328 $2,992,586 ($1,023,319) $1,408,501$828,227

SCHUYKILL CROSSING RECIPROCAL RRG11808 $6,780,177 $6,346,081 $2,919,551$6,514,517 $2,587,925 $1,402,429 $3,765,670$1,007,041

SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP12988 $6,687,814 $5,454,167 $3,109,291$5,215,150 $158,372 $142,294 $204,906$1,947,487

SECURITY AMERICA RRG INC11267 $2,035,387 $1,493,823 $322,243$1,477,828 $157,001 $5,205 $117,170$998,584

SELECT MD RRG14136 $1,748,768 $304,021 $299,600$304,021 ($58,823) $754 ($38,326)$63,244

SENTINEL ASSUR RRG INC12005 $4,607,866 $3,928,366 $2,303,579$3,830,217 $348,552 $521,097 $630,434$1,178,086

SIGMA RRG, INC.13557 $2,344,406 $2,344,406 $1,384,119$2,348,556 $709,448 $91,677 $531,296$254,989

SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.12907 $17,511,991 $17,511,991 $12,577,610$17,550,991 $3,939,361 $2,066,197 $4,438,506$1,034,020

SPIRIT COMMERCIAL AUTO RISK RETENTION GROUP14207 $5,907,140 $4,793,644 $980,937$1,364,819 ($195,107) ($324) ($127,886)$578,989

Year-End 2012 - RRG Analysis

COMPANYNAIC Direct Premium Written

Net Premium Written

Risk Retention Groups - Selected Statutory Income Statement DataNet Premium

EarnedLoss & Loss

Adjusted Expenses Incurred

Net Operating Gains/Losses

Net Investment Gains/Losses

Net Income/LossOther Underwriting

Expenses

SPIRIT MOUNTAIN INS CO RRG INC10754 $2,501,314 $2,158,462 $150,273$2,201,043 $620,927 $49,846 $56,272$1,429,843

ST CHARLES INS CO RRG11114 $909,973 $909,973 ($1,000,000)$907,779 $1,636,225 $432,645 $1,468,212$271,554

ST LUKES HEALTH NETWORK INS CO RRG11688 $11,023,431 $11,023,431 $8,420,557$9,416,951 ($140,053) $877,072 $779,073$1,136,447

STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.13993 $68,370 $20,615 $0$15,875 ($104,937) $0 ($69,259)$120,812

STATES SELF-INSURERS RRG44075 $9,372,690 $1,580,906 $1,925,134$1,593,929 ($373,424) $583,793 $210,369($21,809)

STICO MUT INS CO RRG10476 $3,977,762 $3,572,502 $1,148,918$3,324,339 $247,669 $728,008 $428,736$1,927,752

SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC13135 $1,903,720 $0 $0$0 ($249,065) $1,023 ($25,896)$249,065

SUNLAND RISK RETENTION GROUP, INC.14026 $4,305,233 $430,524 $188,061$430,524 $94,572 ($6,581) $71,140$147,891

SUPERIOR INS CO RRG11669 $7,148,295 $2,422,118 $3,219,023$2,480,051 ($2,311,276) $610,866 ($1,678,257)$1,572,304

TERRA INS CO RRG10113 $8,831,802 $5,975,792 $544,597$5,975,792 $1,704,776 $484,247 $795,225$3,726,419

TERRAFIRMA RISK RETENTION GROUP LLC14395 $0 $0 $0$0 ($118,099) ($1,844) ($64,618)$118,099

THE HEALTHCARE UNDERWRITING CO RRG10152 $27,218,707 $27,218,707 $20,400,233$19,423,008 ($2,388,943) $6,940 ($1,867,714)$1,411,718

TITAN INS CO INC RRG11153 $9,690,508 $3,792,219 $0$2,620,814 $2,177,356 $586,317 $2,844,913$443,458

TITLE INDUSTRY ASSURANCE CO RRG10084 $6,966,739 $702,289 $275,982$710,679 $694,729 $40,175 $734,904($260,032)

UNITED CENTRAL PA RRG11548 $3,825,455 $3,825,455 $5,177,819$3,825,455 ($1,669,525) $662,131 ($949,660)$317,161

UNITED CONTRACTORS INS CO INC RRG12280 $7,543,140 $6,731,654 $13,875,446$5,640,300 ($10,854,543) $1,355,741 ($8,441,913)$2,619,397

UNITED EDUCATORS INS RRG INC10020 $136,767,194 $110,556,934 $88,383,430$105,739,814 ($2,945,430) $21,397,184 $19,687,163$20,301,815

UNITED HOME INSURANCE CO A RRG10712 $0 $0 $0$938,596 $819,073 $26,771 $549,799$119,523

URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP12915 $1,146,418 $897,433 $443,563$941,732 $114,714 $2,194 $85,638$383,455

UV INSURANCE RISK RETENTION GROUP, INC.13988 $448,050 $448,050 $206,556$410,070 ($51,721) $0 ($51,721)$255,235

VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP11063 $75,267 $75,267 $0$209,560 $134,924 $169,071 $206,997$74,636

VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.13974 $1,836,012 $342,049 $464,379$342,049 ($338,929) $2,259 ($221,820)$216,599

VIRGINIA SENIOR CARE RISK RETENTION GROUP13786 $1,161,247 $719,973 $550,783$688,478 $34,751 $4,234 $37,546$102,944

WARREN RRG INC11802 $972,956 $972,956 $1,133,419$993,757 ($542,676) $51,573 ($497,056)$403,014

WELLSPAN RRG11682 $6,579,000 $6,579,000 $4,458,667$6,579,000 $1,719,412 $519,146 $2,238,558$400,921

WESTERN CATHOLIC INSURANCE COMPANY RRG14122 $3,438,956 $2,252,158 $1,309,964$2,234,212 $321,764 $21,099 $332,889$602,484

WESTERN INS RRG INC11978 $31,330 $31,330 $10,000$31,330 ($28,027) $12,125 ($17,185)$49,357

WESTERN PACIFIC MUT INS CO RRG40940 $3,145,452 $2,648,028 ($2,554,612)$7,298,946 $6,185,419 $4,417,456 $9,431,602$3,668,139

WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP13154 $307,180 $307,180 $3,936$281,173 $25,325 $6,867 $32,192$251,912

YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)11796 $6,005,169 $4,036,792 $680,053$4,036,792 $1,133,425 $269,921 $1,403,826$2,223,314

Year-End 2012 - RRG Analysis

COMPANYNAIC Liquidity Cash to Losses and

LAE Reserves

Risk Retention Groups - Selected Financial RatiosLeverage Loss & LAE

Reserves to PHS

NPW to PHS Loss & LAE Ratio

Expense Ratio

DPW to PHS Combined Ratio

1 Year Dev to PHS

2 Year Dev to PHS

ACADEMIC MEDICAL PROFESSIONALS INSURANCE EXCHANGE RISK RETENTION GROUP

12934 55.52 828.31 19.8791.37 16.99 -4.63 299.26143.84 294.64 6.17-16.50

ADVANCED PHYSICIANS INS RRG INC12166 1.04 0.00 0.000.96 23.08 0.00 24.2023.08 24.20 0.000.00

AEGIS HEALTHCARE RRG, INC.12252 89.85 138.73 139.54173.93 74.13 57.30 47.73133.49 105.03 -11.81-13.60

AFFILIATES INSURANCE RECIPROCAL, A RISK RETENTION GROUP13677 50.26 616.25 21.1765.56 12.57 78.50 -0.2654.97 78.24 0.00-0.07

AGGREGATE SECURITY INSURANCE GROUP, A RISK RETENTION GROUP13606 202.75 50.06 -299.15-303.60 -47.90 435.80 33.26-47.90 469.06 0.000.00

AGRI INSURANCE EXCHANGE RRG28380 16.20 723.86 16.3019.11 6.12 18.99 39.246.12 58.23 -4.48-2.01

ALLEGIANT INS CO INC A RRG11965 81.70 161.20 164.30216.37 41.22 122.73 38.42139.97 161.16 72.0252.26

ALLIANCE OF NONPROFITS FOR INS RRG10023 62.64 228.14 73.29104.72 55.53 67.14 32.0981.17 99.23 -4.090.99

ALLIED PROFESSIONALS INSURANCE COMPANY, RRG11710 64.36 363.62 60.89142.49 118.17 34.61 41.12155.49 75.73 -10.660.27

ALLIED SERVICES RISK RETENTION GROUP12013 61.98 190.58 136.60161.36 41.79 111.83 23.9141.79 135.74 21.7226.60

AMERICAN ASSOC OF OTHODONTISTS RRG10232 73.85 173.03 189.45242.09 62.04 50.97 29.2274.86 80.19 -93.36-61.44

AMERICAN BUILDERS INSURANCE COMPANY RRG, INC.12631 37.79 1,052.24 13.9355.38 -0.51 43.57 -2,694.60-2.16 -2,651.04 -0.400.00

AMERICAN CONTRACTORS INS CO RRG12300 153.17 0.00 0.00159.78 0.00 0.00 0.00444.83 0.00 0.000.00

AMERICAN EXCESS INS EXCHANGE RRG10903 41.80 274.01 62.0371.04 9.82 4.08 22.2410.75 26.32 -15.49-7.75

AMERICAN FEED INDUSTRY INS CO RRG44202 29.01 378.77 36.1539.73 0.00 0.00 0.000.00 0.00 -35.34-14.17

AMERICAN FOREST CASUALTY COMPANY RRG11590 61.61 209.13 107.99139.14 44.38 19.52 38.9361.07 58.45 -33.81-31.56

AMERICAN SAFETY RRG INC25448 85.91 330.18 38.97110.53 -411.12 105.61 -1.86101.52 103.76 -838.59-554.46

AMERICAN TRUCKING AND TRANSPORTATION INSURANCE COMPANY, RRG11534 76.19 256.14 125.52244.95 48.68 70.32 35.15151.16 105.48 -12.16-14.23

AMERIGUARD RRG INC12171 39.65 496.21 31.8162.59 18.93 28.63 17.0316.55 45.66 -35.76-4.65

APPLIED MEDICO-LEGAL SOLUTIONS RRG, INC.11598 92.41 157.39 183.96267.54 131.12 63.46 29.47162.25 92.93 -25.74-20.38

ARCHITECTS & ENGINEERS INS CO RRG44148 98.50 348.19 36.95126.74 6.91 80.00 36.2467.65 116.24 -4.43-4.58

ARCOA RISK RETENTION GROUP, INC.13177 97.88 105.35 456.14470.37 232.81 121.22 40.53232.81 161.75 125.41118.83

ARISE BOILER INSPECTION AND INSURANCE COMPANY RISK RETENTION GROUP13580 44.98 946.12 7.8833.55 35.23 3.61 74.9339.11 78.54 -5.19-7.25

ASSET PROTECTION PROGRAM RISK RETENTION GROUP, INC.12224 48.13 369.13 51.0790.73 0.00 0.00 0.000.00 0.00 2.06-7.78

ASSOCIATION OF CERTIFIED MORTGAGE ORIGINATORS RISK RETENTION GROUP, INC.

14425 0.85 0.00 0.000.86 0.00 0.00 0.000.00 0.00 0.000.00

ATTORNEYS INS MUTUAL OF ALABAMA INC33677 50.83 351.92 53.4795.66 22.81 43.46 89.6443.14 133.10 -17.95-8.42

ATTORNEYS INSURANCE MUTUAL RRG INC22670 52.19 292.91 62.7795.96 46.99 68.49 39.8666.89 108.36 12.427.78

ATTORNEYS LIAB ASSUR SOCIETY INC RRG10639 84.19 197.20 96.06159.49 39.23 85.92 14.93541.57 100.85 -1.643.10

ATTORNEYS LIAB PROTECTION SOC RRG32450 71.52 204.04 127.09185.47 82.81 57.44 38.85120.36 96.28 -12.30-8.58

ATTPRO RRG RECIPROCAL RISK RETENTION GROUP13795 6.57 28,808.03 0.356.63 0.56 82.51 667.5411.12 750.05 0.000.00

AVIATION ALLIANCE INSURANCE RISK RETENTION GROUP, INC.13791 122.25 540.85 25.73170.14 51.61 46.15 79.92221.52 126.06 -1.92-13.75

BAR VERMONT RISK RETENTION GROUP INC10174 42.34 424.94 35.4463.76 14.59 39.40 73.46287.11 112.86 -11.75-3.06

BEDFORD PHYSICIANS RISK RETENTION GROUP, INC.12933 107.16 145.39 338.12526.79 100.11 92.90 7.63299.01 100.53 -72.70-14.83

BEST CARE INSURANCE COMPANY RISK RETENTION GROUP, INC.14169 3.40 0.00 0.003.49 2.73 0.00 67.273.31 67.27 0.000.00

BONDED BUILDERS INSURANCE COMPANY, A RISK RETENTION GROUP13010 64.74 4,552.61 4.24124.96 61.61 3.19 68.8172.50 72.00 0.190.00

BROADLINE RISK RETENTION GROUP, INC.13788 92.79 128.71 177.12211.52 65.19 75.06 6.4474.24 81.51 -46.07-27.48

CALIFORNIA HEALTHCARE INS CO INC RRG44504 71.66 184.14 115.15151.94 38.13 87.36 10.7665.95 98.11 -25.89-11.26

CALIFORNIA MEDICAL GRP INS CO RRG12180 57.51 231.27 79.14105.26 40.40 7.24 26.5137.05 33.75 -52.24-31.47

CARE RRG, INC.11825 78.45 204.88 119.07191.37 108.67 70.06 17.59132.22 87.65 -25.59-9.02

CAREGIVERS UNITED LIAB INS CO RRG11544 35.01 374.24 38.0449.84 24.75 -12.92 15.7127.00 2.78 -33.36-20.71

CARING COMMUNITIES, A RECIPROCAL RISK RETENTION GROUP12373 102.65 452.33 28.42131.98 18.52 61.47 17.7853.89 79.25 -2.24-1.64

CASSATT RISK RETENTION GROUP INC10808 85.17 1,294.94 13.05143.92 2.74 199.14 -22.05656.00 177.09 2.592.71

CATTLEMAN'S INSURANCE COMPANY, A RISK RETENTION GROUP13784 9.19 4,291.91 2.309.08 28.89 -8.61 45.6148.78 37.00 -1.14-7.26

Year-End 2012 - RRG Analysis

COMPANYNAIC Liquidity Cash to Losses and

LAE Reserves

Risk Retention Groups - Selected Financial RatiosLeverage Loss & LAE

Reserves to PHS

NPW to PHS Loss & LAE Ratio

Expense Ratio

DPW to PHS Combined Ratio

1 Year Dev to PHS

2 Year Dev to PHS

CENTRAL PA PHYSICIANS RRG INC11694 68.49 187.83 152.23195.83 64.63 81.62 27.1164.63 108.74 44.0410.24

CENTURION MEDICAL LIABILITY PROTECTIVE RRG, INC.11976 55.97 278.49 56.1487.51 43.28 -18.79 23.2744.64 4.48 -41.82-40.44

CHARITABLE SERVICE PROVIDERS RECIPROCAL RRG12167 10.10 1,645.79 6.1210.17 26.17 4.06 43.5831.72 47.64 -2.14-5.52

CHC CAS RRG11531 55.67 208.12 106.45123.33 57.41 1.22 6.5957.41 7.81 -70.83-65.85

CHEROKEE GUARANTEE COMPANY INC., RRG14388 172.42 266.58 46.96215.83 185.58 75.91 7.66262.19 83.57 0.000.00

CIRCLE STAR INS CO RRG11839 44.16 516.69 34.1777.96 29.77 83.32 -145.92595.31 -62.61 0.00-3.26

CLAIM PROFESSIONALS LIAB INS CO RRG12172 66.68 316.17 42.5889.78 34.13 18.06 46.33158.46 64.40 -14.67-9.83

CLARIAN HLTH RRG INC11992 121.84 0.00 0.00107.07 0.00 0.00 0.00775.95 0.00 0.000.00

CLINIC MUTUAL INSURANCE CO RRG43770 6.65 1,817.05 5.616.78 1.79 313.19 224.490.00 537.68 -3.300.90

CMIC RISK RETENTION GROUP13756 17.88 9,198.07 1.2320.22 1.89 13.74 420.7926.11 434.53 0.000.00

COASTAL INS RRG INC11668 67.71 303.09 87.85180.28 40.80 -8.17 42.1449.09 33.97 -35.23-23.06

COLLEGE LIABILITY INS CO A RECIP RRG44598 37.48 370.29 32.8945.64 24.73 69.35 20.7324.73 90.08 -10.51-3.24

COLLEGE RISK RETENTION GROUP, INC.13613 68.14 221.29 132.08199.16 95.48 56.48 24.13126.81 80.60 -29.58-26.07

COLUMBIA NATIONAL RRG INC10803 36.56 0.00 0.0054.95 13.58 0.00 128.1913.58 128.19 0.000.00

COMCARE PRO INS RECIPROCAL RRG11864 39.09 470.24 27.7651.03 54.46 71.85 33.0254.46 104.87 14.7711.73

COMMUNITIES OF FAITH RRG INC11807 6.56 1,745.40 6.016.89 9.89 -11.17 34.439.89 23.26 -7.09-4.16

COMMUNITY BLOOD CENTERS EXCH RRG13893 41.66 463.97 33.4364.61 20.29 -32.14 32.8434.38 0.69 -21.00-10.82

COMMUNITY HEALTH ALLIANCE RECIP RRG11536 77.69 268.10 162.61338.68 47.43 52.24 20.7653.96 73.00 17.25-13.17

COMMUNITY HOSPITAL RRG11259 64.33 178.02 150.02171.82 45.72 68.14 16.8047.77 84.94 -31.99-12.73

CONSUMER SPECIALTIES INSURANCE COMPANY RRG10075 45.35 267.76 48.6559.07 12.00 29.08 131.9127.98 160.99 -10.14-4.79

CONTINUING CARE RRG, INC.11798 146.63 526.56 3.3425.81 93.02 55.43 65.35109.27 120.77 -11.87-12.15

CONTRACTORS INS CO OF NORTH AMER RRG11603 60.11 171.20 132.67136.53 10.33 40.06 47.8222.46 87.87 42.13-5.32

CONTROLLED RISK INS CO OF VT RRG10341 40.21 322.78 50.2765.25 48.23 25.65 57.46344.51 83.12 -9.05-8.48

COOPERATIVE OF AMERICAN PHYSICIANS INSURANCE COMPANY, INC., A RRG12042 34.48 303.47 48.5150.76 29.54 63.19 22.5612.94 85.75 0.00-6.21

COVERYS RRG, INC.14160 1.44 383,840.52 0.031.45 0.06 137.01 3,570.991.34 3,708.00 0.000.00

CPA MUTUAL INS CO OF AMERICA RRG10164 75.23 212.94 82.28131.81 41.63 137.66 18.2378.66 155.89 -6.4210.46

CROSSFIT RISK RETENTION GROUP, INC.13720 61.89 519.00 30.8399.01 98.94 27.44 42.14141.35 69.58 -3.99-5.08

CRUDEN BAY RRG INC11676 49.05 207.11 93.4694.95 44.53 -9.53 8.1044.53 -1.43 -174.03-152.44

CRYSTAL RUN RECIPROCAL RISK RETENTION GROUP13655 77.08 334.43 61.42158.33 104.67 32.22 14.25188.07 46.47 -3.932.22

DELAWARE PROFESSIONAL INSURANCE CO43125 61.06 199.75 121.13147.73 23.60 119.20 68.5023.60 187.69 -46.63-0.70

DOCTORS & SURGEONS NATIONAL RRG13018 102.20 212.91 130.77284.54 189.08 53.09 31.60252.50 84.69 -0.79-2.13

DUBOIS MEDICAL RRG11842 31.58 485.81 24.8238.08 17.14 -44.73 15.4617.14 -29.27 -24.80-24.64

EASTERN DENTISTS INS CO RRG10115 71.23 196.15 110.36154.19 47.80 37.27 48.5255.80 85.79 -52.20-19.14

ELITE TRANSPORTATION RRG INC10125 116.73 163.10 232.23442.14 160.00 99.04 22.35254.91 121.39 47.7727.74

EMERGENCY CAPITAL MANAGEMENT, LLC, RRG14163 39.88 306.84 42.6852.23 55.74 76.57 18.88167.81 95.45 0.000.00

EMERGENCY MEDICINE PROFESSIONAL ASSURANCE COMPANY RRG (EMPAC)12003 130.19 149.84 128.95251.55 61.51 56.42 52.5073.83 108.91 -19.15-9.44

EMERGENCY MEDICINE RRG INC12015 71.96 208.36 77.99116.93 34.96 54.07 47.1743.81 101.25 5.780.33

EMERGENCY PHYSICIANS INS CO RRG11714 89.86 131.44 310.58366.83 113.96 67.88 40.21127.47 108.09 12.047.19

EVERGREEN USA RRG INC38466 75.70 187.99 91.34129.99 56.78 55.15 51.9184.70 107.06 -23.18-8.61

FAIRWAY PHYSICIANS INS CO RRG11840 114.35 119.02 233.00317.11 158.14 53.41 33.97179.69 87.38 117.10-36.19

FAITH AFFILIATED RRG INC11698 42.35 295.56 57.4071.84 23.80 79.33 26.0123.80 105.34 12.55-1.75

FIDUCIARIES RISK RETENTION GROUP, INC.14439 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.000.00

FIRST KEYSTONE RISK RETENTION GROUP, INC.11801 155.00 104.78 280.91456.21 300.49 64.70 40.35300.49 105.05 136.6346.66

FIRST MEDICAL INS CO RRG11278 41.79 283.51 59.9070.96 17.25 43.63 4.9217.25 48.56 -3.246.30

FORT WAYNE MEDICAL SURETY COMPANY, RRG12625 48.72 343.49 49.2882.47 52.66 15.80 37.8352.66 53.63 -6.47-9.17

Year-End 2012 - RRG Analysis

COMPANYNAIC Liquidity Cash to Losses and

LAE Reserves

Risk Retention Groups - Selected Financial RatiosLeverage Loss & LAE

Reserves to PHS

NPW to PHS Loss & LAE Ratio

Expense Ratio

DPW to PHS Combined Ratio

1 Year Dev to PHS

2 Year Dev to PHS

FRANKLIN CASUALTY INS CO RRG10842 1,164.17 38.03 246.611,091.68 127.48 46.88 36.761,668.95 83.65 7.9019.85

FREDERICKSBURG PROFESSIONAL RISK EXC12016 70.50 203.32 71.54102.56 20.85 24.38 15.3620.85 39.74 -12.72-18.66

GABLES RISK RETENTION GROUP, INC.14032 127.79 98.85 72.3591.40 105.98 85.00 16.13105.98 101.13 0.000.00

GEISINGER INS CORP RRG12000 246.13 312.56 8.4565.03 9.46 48.57 43.72115.52 92.29 0.000.00

GENERAL EASTERN SKI INS RRG INC10163 45.32 349.99 20.4632.46 0.00 0.00 0.000.00 0.00 -3.816.38

GERIC INSURANCE RISK RETENTION GROUP, INC.13782 0.96 74,430.23 0.140.96 2.00 11.53 95.852.00 107.38 0.000.00

GLOBAL HAWK INSURANCE COMPANY RRG11948 88.45 267.66 86.39204.53 175.07 64.25 23.76188.19 88.01 11.22-3.70

GLOBAL INTL INS CO INC A RRG10991 4.15 0.00 0.004.12 3.19 0.00 40.053.19 40.05 0.000.00

GOLDEN INS CO RRG11145 83.15 422.43 42.26148.44 80.05 50.76 37.2796.76 88.03 21.2019.56

GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP, INC.12512 38.40 267.11 60.6162.17 47.72 133.15 11.3147.72 144.46 207.9958.71

GOVERNMENT TECHNOLOGY INSURANCE COMPANY RISK RETENTION GROUP, INC.

13973 114.84 0.00 0.00149.45 69.87 2.77 82.8596.03 85.62 0.000.00

GRACO RRG INC11581 11.75 0.00 0.0010.19 27.96 0.00 92.20312.24 92.20 0.000.00

GREEN HILLS INS CO RRG11941 46.94 326.99 47.0072.14 32.08 5.49 16.2332.08 21.72 -31.34-19.23

GUARDIAN RRG INC11696 43.32 243.22 69.5873.30 34.16 152.32 19.4634.16 171.79 -20.341.21

GUTHRIE RRG12014 68.95 169.87 141.05165.21 45.21 67.60 4.1645.21 71.76 -48.32-2.40

HAMDEN ASSURANCE RRG, INC.13057 3,246.22 0.00 0.005,645.18 0.00 0.00 0.000.00 0.00 0.000.00

HEALTH CARE CAS RRG INC12236 102.92 275.25 316.65897.01 142.26 63.28 34.64438.26 97.91 -71.45-53.50

HEALTH NETWORK PROVIDERS MUT INS CO11813 67.65 228.90 105.59163.49 52.84 39.87 27.7358.59 67.59 -53.52-33.13

HEALTH PROVIDERS INS RECIPROCAL RRG10080 43.84 280.60 55.7168.53 25.23 45.84 31.7729.17 77.60 -17.22-10.48

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

11832 165.29 216.69 100.78360.97 41.04 110.12 -12.84464.08 97.28 12.4710.34

HEALTHCARE PROVIDERS INS CO RRG11683 43.38 334.34 49.4271.68 18.62 31.22 24.4120.38 55.62 -12.65-11.11

HEARTLAND HEALTHCARE RECIP RRG11998 43.13 240.91 70.7973.55 49.38 58.06 18.9949.38 77.05 -16.35-12.75

HERITAGE WARRANTY INS RRG INC11097 30.95 9,392.92 1.5444.82 -0.06 29.23 -62,185.94-0.06 -62,156.71 -15.31-10.38

HOME CONSTRUCTION INS CO RRG11950 64.73 183.93 145.49173.21 21.61 64.10 57.404.92 121.50 -19.83-5.36

HOUSING AUTHORITY RRG INC26797 38.25 336.79 45.7158.90 14.81 27.81 27.6515.58 55.46 -31.83-12.05

HOW INSURANCE COMPANY, A RISK RETENTION GROUP41246 10.89 7,335.72 1.5112.08 0.00 0.00 0.000.00 0.00 45.0123.66

ICI MUTUAL INSURANCE COMPANY, A RISK RETENTION GROUP11268 31.25 494.27 25.7739.80 12.62 45.25 37.2937.69 82.55 -8.46-4.45

INDEMNITY INSURANCE CORPORATION, RRG12018 166.88 160.65 64.21172.15 152.72 25.37 46.77155.25 72.14 1.618.20

INDIANA HEALTHCARE RECIP RRG11692 44.15 245.19 71.0676.93 33.36 41.61 20.8433.36 62.45 -44.04-14.10

INNOVATIVE PHYSICIAN SOLUTIONS RRG12320 68.55 190.88 89.81117.51 51.25 66.50 44.0251.25 110.51 21.2018.46

IRONSHORE RISK RETENTION GROUP, INC.14375 540.15 3,309.46 0.75134.47 7.28 60.69 192.92145.61 253.60 0.000.00

J.M. WOODWORTH RRG, INC.12594 114.78 131.94 248.93376.98 201.99 71.71 28.84226.17 100.55 39.48-12.95

KENTUCKIANA MEDICAL RECIPROCAL RRG11872 42.13 253.12 61.4165.49 10.11 6.28 26.2520.51 32.52 -47.08-20.47

KENTUCKY HOSPITAL INS CO RRG11939 52.08 210.24 90.2998.86 33.33 100.92 24.9752.33 125.89 -14.133.97

LAKE STREET RRG INC11803 41.14 265.70 63.9469.90 62.25 69.56 14.5462.25 84.10 -5.779.77

LAMMICO RRG, INC.14444 8.63 60,728.74 0.178.68 0.30 14,114.29 111.418.10 14,225.69 0.000.00

LANCET INDEMNITY RISK RETENTION GROUP, INC.13014 110.43 165.78 188.29344.70 245.29 74.58 34.96303.83 109.54 39.2539.61

LENDERS PROTECTION ASSUR CO RRG11500 2.90 0.00 0.002.88 0.00 0.00 0.0027.74 0.00 0.000.00

LIBERTY FIRST RISK RETENTION GROUP INSURANCE COMPANY12627 103.78 117.51 267.74326.51 149.86 41.28 11.61166.47 52.89 98.1721.35

LIFE SERVICES NETWORK RECIP INS RRG11958 30.57 332.82 41.9042.63 23.40 44.58 43.6627.83 88.24 -0.69-1.07

LIVESTOCK MARKET ENHANCEMENT RISK RETENTION GROUP14084 0.23 0.00 0.000.22 0.01 0.00 299,864.290.52 299,864.29 0.000.00

LVHN RRG11684 118.55 0.00 0.00880.17 0.00 0.00 0.000.00 0.00 0.000.00

MAKE TRANSPORTATION INSURANCE, INC., A RISK RETENTION GROUP12554 73.29 245.08 67.14120.61 62.60 69.47 28.2688.10 97.72 -20.91-17.91

Year-End 2012 - RRG Analysis

COMPANYNAIC Liquidity Cash to Losses and

LAE Reserves

Risk Retention Groups - Selected Financial RatiosLeverage Loss & LAE

Reserves to PHS

NPW to PHS Loss & LAE Ratio

Expense Ratio

DPW to PHS Combined Ratio

1 Year Dev to PHS

2 Year Dev to PHS

MARATHON FIN INS CO INC RRG11117 305.68 6,065.08 2.03376.01 0.00 56.46 0.00558.17 0.00 -10.50-3.24

MCIC VERMONT INC RRG10697 461.75 168.52 143.591,117.29 365.70 43.87 58.861,556.02 102.74 0.040.00

MD RISK RETENTION GROUP, INC.12355 46.75 255.36 69.2082.61 46.31 12.01 11.3854.34 23.39 -68.75-52.04

MEDAMERICA MUTUAL RRG INC26257 53.74 251.19 81.27109.71 41.91 80.79 12.1964.55 92.98 -37.14-13.36

MEDPRO RRG RISK RETENTION GROUP13589 212.48 426.97 41.47376.27 36.99 92.65 -3.63739.80 89.02 -0.58-0.57

MEDSTAR LIABILITY LTD INS CO INC RRG10124 62.81 217.49 119.94163.83 42.40 -32.76 38.1571.82 5.39 -103.26-82.43

MENTAL HEALTH RISK RETENTION GROUP44237 53.71 231.62 84.08104.59 37.20 44.74 11.9682.44 56.70 -40.62-16.62

MIDWEST INSURANCE GROUP, INC., A RISK RETENTION GROUP11999 106.87 118.79 213.77271.40 103.70 65.42 41.99125.48 107.42 -5.22-14.29

MILLBROOK NMF RISK RETENTION GROUP, INC.14219 12.30 982.79 10.9813.28 -40.36 34.96 -48.1683.25 -13.20 0.000.00

MMIC RRG, INC.14062 13.39 0.00 0.003.95 0.15 0.00 7,922.582.97 7,922.58 0.000.00

MOUNTAIN LAKE RISK RETENTION GROUP, INC.13812 133.28 114.66 47.2972.27 42.76 60.60 39.6742.76 100.27 -54.16-1.00

MOUNTAIN LAUREL RRG INC11547 101.08 133.65 203.16274.45 98.43 66.85 47.541,029.80 114.39 -1.4335.46

MOUNTAIN STATES HEALTHCARE RECIP RRG11585 56.95 210.27 106.03126.98 56.57 64.98 11.3371.88 76.31 -58.37-23.74

MOUNTAINEER FREEDOM RISK RETENTION GROUP, INC.12779 51.12 206.06 84.8889.40 43.22 34.95 12.9445.32 47.90 -55.07-13.06

NASW RISK RETENTION GROUP, INC.14366 63.78 28,725.82 0.2037.31 2.95 1,721.10 432.5249.13 2,153.62 0.000.00

NATIONAL ASSISTED LIVING RRG, INC.11806 56.24 250.65 83.47117.67 41.86 43.96 47.1041.86 91.06 -20.70-12.24

NATIONAL BUILDERS & CONTRACTORS INS12235 87.83 133.94 213.56251.23 25.47 160.51 89.3646.91 249.86 -23.75-0.36

NATIONAL CATHOLIC RRG10083 73.75 160.31 212.70251.48 57.54 80.64 25.96127.49 106.60 16.61-1.88

NATIONAL CONTRACTORS INS CO INC RRG12293 109.00 131.32 124.12177.65 27.97 133.35 90.4191.39 223.75 29.2622.83

NATIONAL GUARDIAN RISK RETENTION GROUP36072 82.94 141.26 147.49172.80 41.93 70.82 7.74219.89 78.56 -30.33-6.89

NATIONAL HOME INSURANCE CO RRG44016 64.22 879.97 27.53155.58 -5.26 69.59 -85.41-0.04 -15.82 -3.75-0.06

NATIONAL INDEPENDENT TRUCKERS IC RRG11197 78.25 246.80 36.0169.54 34.91 68.19 31.3676.81 99.55 -2.362.97

NATIONAL MEDICAL PROFESSIONAL RISK RETENTION GROUP, INC.12529 126.56 0.00 0.00108.52 0.00 0.00 0.00122.22 0.00 0.000.00

NATIONAL SERVICE CONTRACT INSURANCE COMPANY (RRG)10234 14.57 59,947.40 0.1916.17 7.80 13.03 90.218.82 103.24 -0.040.00

NCMIC RISK RETENTION GROUP, INC.14130 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.000.00

NEVADA DOCS MEDICAL RISK RETENTION GROUP, INC.12539 88.89 213.68 273.00518.53 -61.29 39.76 -85.33148.27 -45.57 -101.42-49.58

NEW HOME WARRANTY INSURANCE COMPANY, A RISK RETENTION GROUP13792 62.81 6,993.89 2.70118.47 37.17 40.72 37.35151.57 78.07 -0.20-0.52

NEW STAR RISK RETENTION GROUP, INC.12532 75.56 255.98 64.90125.53 78.58 65.62 24.2348.22 89.85 13.3722.50

NEW YORK HEALTHCARE INSURANCE COMPANY, INC., RRG12275 118.70 99.36 244.88288.81 167.42 72.73 20.43192.35 93.15 96.7562.90

NORTH SHORE - LIJ PHYSICIANS INSURANCE COMPANY RISK RETENTION GROUP13059 82.53 176.40 313.36456.18 168.82 77.89 21.13245.88 99.02 -20.4112.84

NOVUS INS CO RRG10752 110.41 18.73 907.51187.66 21.73 311.30 192.26298.96 503.56 331.66103.03

OASIS RECIPROCAL RISK RETENTION GROUP13644 128.94 171.77 180.50399.74 90.53 52.09 45.6130.05 97.70 -78.54-38.94

OBSTETRICIANS & GYNECOLOGISTS RISK RETENTION GROUP OF AMERICA, INC.12845 86.47 97.69 151.44127.92 118.31 26.02 65.1199.92 91.13 38.11-12.92

OCEAN RRG INC10158 245.69 50.29 432.40534.22 191.64 115.45 -9.55191.64 105.90 164.84166.83

OCEANUS INS CO A RRG12189 92.82 165.74 194.69299.51 177.91 57.30 28.21171.46 85.51 12.715.58

OLYMPIA RISK RETENTION GROUP, INC.13062 651.67 17.54 396.50453.27 2.60 -4,067.72 6,202.370.00 2,134.65 -39.08-894.39

OMS NATL INS CO RRG44121 65.04 216.35 92.29129.86 46.37 55.13 28.2438.71 83.38 -18.99-8.37

OOIDA RISK RETENTION GROUP INC10353 107.89 232.53 83.09208.47 50.95 71.95 33.76145.58 105.71 -24.35-11.76

OPHTHALMIC MUTUAL INS CO RRG44105 41.16 419.88 37.3164.48 25.92 52.30 24.9428.62 77.25 -6.50-2.48

ORANGE COUNTY MEDICAL RECIP INS RRG12183 29.48 450.55 24.4232.44 24.50 -34.20 11.5024.50 -22.70 -46.94-39.30

ORDINARY MUTUAL A RRG CORP10171 45.29 252.45 68.5978.42 0.00 0.00 0.000.00 0.00 -18.61-15.69

ORTHOFORUM INSURANCE COMPANY (A RISK RETENTION GROUP)14260 84.72 463.22 30.11118.16 108.36 66.67 18.81149.65 85.49 0.000.00

PACE RRG INC11575 273.98 74.19 230.64468.80 12.67 677.86 -92.34396.84 585.52 212.3584.63

PARATRANSIT INSURANCE COMPANY, RRG44130 60.44 259.31 76.56119.98 27.98 -17.37 29.6244.09 12.25 -60.61-35.76

PCH MUTUAL INSURANCE COMPANY, RRG11973 64.25 238.52 92.30141.45 74.03 12.75 45.5493.62 58.29 -46.39-52.74

Year-End 2012 - RRG Analysis

COMPANYNAIC Liquidity Cash to Losses and

LAE Reserves

Risk Retention Groups - Selected Financial RatiosLeverage Loss & LAE

Reserves to PHS

NPW to PHS Loss & LAE Ratio

Expense Ratio

DPW to PHS Combined Ratio

1 Year Dev to PHS

2 Year Dev to PHS

PEACE CHURCH RRG INC11846 34.04 316.45 46.9950.62 22.42 3.79 30.9125.02 34.71 -31.11-15.26

PEDIATRICANS INS RRG OF AMER11772 90.68 108.25 542.19532.22 5.50 5,491.35 2,119.290.00 7,610.64 8.7655.74

PELICAN INS RRG11587 18.60 642.68 18.7122.37 23.35 19.68 35.9019.86 55.58 -13.40-2.95

PHOEBE RECIPROCAL RRG12004 28.83 358.54 38.9040.22 11.66 22.24 35.2611.66 57.50 -9.96-7.37

PHYSICIANS CASUALTY RISK RETENTION GROUP, INC.13995 196.10 281.29 67.95374.80 125.92 61.15 45.98356.31 107.13 0.00-7.20

PHYSICIANS INDEMNITY RISK RETENTION GROUP, INC.12746 92.14 172.91 182.17290.25 136.60 33.19 52.21154.70 85.40 -60.76-37.92

PHYSICIANS' INSURANCE EXCHANGE RESOURCE, A RISK RETENTION GROUP12918 87.33 158.59 185.81257.35 86.17 51.88 30.0386.17 81.91 -61.96-18.49

PHYSICIANS PROACTIVE PROTECTION, INC. RISK RETENTION GROUP12507 81.01 278.57 90.93205.21 59.15 17.91 12.3975.05 30.31 -33.67-28.84

PHYSICIANS PROFESSIONAL LIABILTY RRG11514 59.31 274.34 76.11123.84 29.72 32.71 32.7931.09 65.49 -31.48-18.26

PHYSICIANS REIMBURSEMENT RRG10934 61.07 169.05 145.95150.67 31.29 67.81 46.5431.29 114.35 -37.25-20.35

PHYSICIANS SPECIALTY LTD RRG11513 79.73 186.09 145.16215.36 42.50 163.64 36.72439.22 200.36 -21.48-17.60

PIA PROFESSIONAL LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP14108 24.88 1,377.77 5.4318.62 15.02 69.35 100.550.00 169.90 0.000.00

PIH INSURANCE COMPANY, A RECIPROCAL RISK RETENTION GROUP13582 37.32 283.38 56.0059.22 75.77 53.17 12.0392.46 65.20 -86.472.21

PINE TREE INS RECIPROCAL RRG12348 41.39 354.86 46.5668.40 28.22 -3.47 21.6931.97 18.22 -54.90-31.52

PINELANDS INS CO RRG INC12198 781.37 32.25 144.06362.97 129.26 94.14 18.04430.88 112.18 35.397.95

PINNACLE CONSORTIUM OF HIGHER ED RRG11980 40.45 325.27 49.6765.35 23.77 25.81 53.12127.35 78.93 -7.15-6.93

PINNACLE RRG INC11858 4.02 4,625.87 2.254.18 0.81 -133.60 249.570.81 115.97 -6.26-1.67

PLICO RISK RETENTION GROUP, INC.14205 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.000.00

PONCE DE LEON LTC RRG, INC.11809 49.22 275.97 61.3183.27 31.62 74.83 70.1535.17 144.98 -3.70-3.78

PREFERRED CONTRACTORS INSURANCE COMPANY RRG, LLC12497 154.70 158.24 173.30424.25 149.27 67.84 16.13194.37 83.97 19.8723.26

PREFERRED PHYSICIANS MEDICAL RRG44083 48.28 289.63 62.6287.57 28.57 25.47 19.4236.58 44.89 -18.78-11.48

PREMIER PHYSICIANS INSURANCE COMPANY, A RISK RETENTION GROUP12613 96.64 319.54 90.89280.66 143.94 33.48 45.24193.71 78.71 -13.67-45.39

PROAIR RISK RETENTION GROUP, INC.13179 231.96 155.89 7.4126.80 19.44 11.82 120.6137.11 132.43 -12.46-7.17

PROBUILDERS SPECIALTY INS CO RRG11671 254.77 42.05 234.68251.41 0.00 58.04 0.000.00 0.00 12.7813.38

PROFESSIONAL EXCHANGE ASSURANCE COMPANY (A RISK RETENTION GROUP)14461 4.84 0.00 0.005.08 0.00 0.00 0.000.00 0.00 0.000.00

PROFESSIONAL MEDICAL INS RRG INC10840 3.86 0.00 0.003.86 0.00 0.00 0.00412.25 0.00 0.000.00

PROFESSIONAL QUALITY LIABILITY INSURANCE COMPANY, A RISK RETENTION GROUP

12608 10.67 2,190.31 4.9311.52 1.18 -15.77 4.3223.57 -11.46 2.51-0.91

PROFESSIONALS RISK RETENTION GROUP, INC.13067 110.50 335.81 45.25167.89 32.69 120.31 17.84273.91 138.14 -18.95-1.72

PUBLIC UTILITY MUTUAL INSURANCE COMPANY, RRG11350 20.98 605.84 20.2125.69 19.79 14.79 53.3033.43 68.09 -12.28-9.03

RED CLAY RISK RETENTION GROUP, INC.13078 70.16 175.68 75.8093.42 44.46 39.79 32.9961.73 72.78 -19.51-13.23

RED ROCK RISK RETENTION GROUP, INC.13736 81.17 163.46 177.03234.88 27.96 167.45 42.0557.64 209.50 12.0718.36

REPUBLIC RRG12019 0.56 0.00 0.000.41 0.00 0.00 0.000.00 0.00 0.000.00

RESTORATION RISK RETENTION GROUP, INC.12209 69.04 196.90 125.89171.14 60.39 51.59 20.2868.30 71.87 -45.63-17.48

RPX RRG14135 10.28 6,202.72 1.6310.40 6.99 156.68 146.3613.99 303.04 0.000.00

SAINT LUKE'S HLTH SYSTEM RRG11712 39.10 364.65 43.4261.90 15.38 94.62 50.3734.08 144.99 -4.84-2.27

SAMARITAN RISK RETENTION GROUP, INC.12511 47.49 585.99 23.6165.69 56.71 45.85 10.3056.71 56.15 -19.29-0.46

SCHUYKILL CROSSING RECIPROCAL RRG11808 86.56 157.16 168.06228.62 63.72 44.82 15.8768.08 60.68 -100.45-59.76

SCRUBS MUTUAL ASSURANCE COMPANY RISK RETENTION GROUP12988 86.76 143.77 141.85176.94 140.51 59.62 35.71172.29 95.33 17.491.03

SECURITY AMERICA RRG INC11267 43.86 367.22 36.6759.06 56.98 21.81 66.8577.64 88.65 12.18-1.63

SELECT MD RRG14136 47.68 522.03 29.6573.80 31.83 98.55 20.80183.09 119.35 0.000.00

SENTINEL ASSUR RRG INC12005 35.02 405.93 36.6352.07 37.36 60.14 29.9943.82 90.13 -16.14-10.99

SIGMA RRG, INC.13557 73.95 199.51 95.58141.01 42.93 58.93 10.8842.93 69.81 -38.27-13.37

SOUTHWEST PHYSICIANS RISK RETENTION GROUP, INC.12907 82.52 153.41 307.01388.67 137.31 71.66 5.90137.31 77.57 23.24-15.57

SPIRIT COMMERCIAL AUTO RISK RETENTION GROUP14207 269.04 266.76 45.79328.60 291.24 71.87 12.08358.90 83.95 0.000.00

Year-End 2012 - RRG Analysis

COMPANYNAIC Liquidity Cash to Losses and

LAE Reserves

Risk Retention Groups - Selected Financial RatiosLeverage Loss & LAE

Reserves to PHS

NPW to PHS Loss & LAE Ratio

Expense Ratio

DPW to PHS Combined Ratio

1 Year Dev to PHS

2 Year Dev to PHS

SPIRIT MOUNTAIN INS CO RRG INC10754 51.94 284.09 66.0697.48 74.82 6.83 66.2486.70 73.07 -49.80-32.71

ST CHARLES INS CO RRG11114 39.62 288.92 54.8862.82 13.17 -110.16 29.8413.17 -80.32 -116.88-91.94

ST LUKES HEALTH NETWORK INS CO RRG11688 94.89 138.52 229.30301.39 88.69 89.42 10.3188.69 99.73 24.17-7.77

STATE CAPITOL INSURANCE RISK RETENTION GROUP, INC.13993 26.57 0.00 0.0010.24 3.18 0.00 586.0410.54 586.04 0.000.00

STATES SELF-INSURERS RRG44075 60.44 200.11 119.96145.08 17.61 120.78 -1.38104.38 119.40 7.804.70

STICO MUT INS CO RRG10476 54.28 426.94 40.7394.38 32.69 34.56 53.9636.40 88.52 -18.68-11.97

SUBURBAN HEALTH ORGANIZATION RISK RETENTION GROUP, LLC13135 45.52 0.00 0.0080.98 0.00 0.00 0.00523.07 0.00 0.000.00

SUNLAND RISK RETENTION GROUP, INC.14026 143.85 284.94 24.84101.80 39.53 43.68 34.35395.26 78.03 0.00-6.58

SUPERIOR INS CO RRG11669 160.05 97.31 296.27461.45 56.41 129.80 64.91166.48 194.71 11.24-2.98

TERRA INS CO RRG10113 49.02 1,334.43 12.1679.52 37.18 9.11 62.3654.96 71.47 -2.37-1.57

TERRAFIRMA RISK RETENTION GROUP LLC14395 0.62 0.00 0.000.61 0.00 0.00 0.000.00 0.00 0.000.00

THE HEALTHCARE UNDERWRITING CO RRG10152 278.32 46.56 153.12198.41 103.08 105.03 5.19103.08 110.22 11.254.79

TITAN INS CO INC RRG11153 24.05 0.00 0.0029.98 13.78 0.00 11.6935.20 11.69 0.000.00

TITLE INDUSTRY ASSURANCE CO RRG10084 76.54 194.07 80.53119.62 23.45 38.83 -37.03232.62 1.81 -16.24-7.87

UNITED CENTRAL PA RRG11548 74.23 271.96 137.18276.94 65.62 135.35 8.2965.62 143.64 -1.1717.25

UNITED CONTRACTORS INS CO INC RRG12280 128.28 95.17 704.29859.77 306.65 246.01 38.91343.62 284.92 105.5492.81

UNITED EDUCATORS INS RRG INC10020 68.70 191.17 142.67187.38 43.65 83.59 18.3654.00 101.95 -11.20-1.25

UNITED HOME INSURANCE CO A RRG10712 77.38 0.00 0.00111.94 0.00 0.00 0.000.00 0.00 0.000.00

URGENT CARE ASSURANCE COMPANY RISK RETENTION GROUP12915 50.88 369.41 45.2485.04 61.53 47.10 42.7378.60 89.83 -0.933.66

UV INSURANCE RISK RETENTION GROUP, INC.13988 135.71 86.34 53.1462.27 89.54 50.37 56.9789.54 107.34 0.006.34

VEHICULAR SERVICE INSURANCE COMPANY, RISK RETENTION GROUP11063 8.95 0.00 0.009.80 3.11 0.00 99.163.11 99.16 -13.180.00

VIRGINIA PHYSICIANS RISK RETENTION GROUP, INC.13974 73.52 328.23 77.37186.70 52.68 135.76 63.32282.76 199.09 0.00-4.02

VIRGINIA SENIOR CARE RISK RETENTION GROUP13786 44.67 371.59 46.1076.52 36.11 80.00 14.3058.24 94.30 -0.10-0.20

WARREN RRG INC11802 58.34 195.40 120.27137.11 29.92 114.05 41.4229.92 155.48 -0.0322.85

WELLSPAN RRG11682 88.75 113.12 177.64178.33 83.19 67.77 6.0983.19 73.87 -56.77-31.38

WESTERN CATHOLIC INSURANCE COMPANY RRG14122 105.84 222.63 90.55213.35 156.09 58.63 26.75238.34 85.38 0.0032.07

WESTERN INS RRG INC11978 4.31 0.00 0.004.44 6.11 31.92 157.546.11 189.46 0.000.00

WESTERN PACIFIC MUT INS CO RRG40940 29.89 809.18 17.2041.60 2.78 -35.00 138.523.31 103.52 -13.47-10.46

WINTHROP PHYSICIANS RECIPROCAL RISK RETENTION GROUP13154 14.01 2,028.07 5.5515.77 12.60 1.40 82.0112.60 83.41 0.300.00

YELLOWSTONE INSURANCE EXCHANGE (A RISK RETENTION GROUP)11796 69.38 276.78 112.46215.96 72.63 16.85 55.08108.05 71.92 -43.31-27.87

Year-End 2012 - RRG Analysis

®

Additional Analysis of RRGs Assigned a Financial Stability Rating®

Risk Retention Groups

®

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.

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NAIC # COMPANY FSR

Financial Stability Ratings (FSRs) - Risk Retention Groups®

as of 5/2/2013

12252 AEGIS Healthcare RRG, Inc. A

11710 Allied Professionals Insurance Company, RRG 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

14388 Cherokee Guarantee Company Inc., RRG A

10075 Consumer Specialties Insurance Company 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

13014 Lancet Indemnity Risk Retention Group, Inc. A

11806 National Assisted Living RRG, Inc. A

36072 National Guardian Risk Retention Group A

10234 National Service Contract Insurance Company (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

13557 Sigma RRG, Inc. A

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

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AEGIS Healthcare RRG Inc. (Baltimore, MD)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

555 Fairmount Avenue NAIC Company Code : 12252 Total Assets 2,535 2,472 2,860 3,329 3,652Baltimore, MD 21286-5417 Business Focus : P&C Minimum NPW Policyholder Surplus 1,024 1,222 1,371 1,148 1,128

Geographic Focus: Geography Minimum NPW Total Liabilities 1,511 1,250 1,489 2,181 2,524NAIC Ownership Structure: Risk Retention Group Net Income 105 164 183 -224 -254Tax Identification Number : 20-1516551 Total Revenue 1,124 1,056 1,070 652 638

Direct Premiums Written 757 1,694 1,624 1,561 1,587Net Premiums Written 345 988 978 615 634

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 1,063 988 978 615 603

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 1,373 1,097 1,385 1,785 1,772Demotech Financial Strength Rating A 11/13/12 Affirm Loss & LAE Reserves/ NPE (%) 127.66 135.19 136.76 239.78 279.44S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 10.82 22.43 20.42 -26.06 -32.89Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.34 0.81 0.71 0.54 0.56Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Barbara Labuskes Auditor Johnson Lambert & Co. LLPPhone : (410) 339-7263x1203 Actuary Towers Watson & Co.Fax : -- CEO --Email : -- CFO --

President Isabella M. Firth

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 4.23 4.18 5.82 2.14 1.74Net Investment Income/Earned Premiums 17.73 7.39 9.42 6.05 5.45Return on Average Equity (C&S) 10.61 15.70 14.88 -17.36 -22.06Return on Avg Assets 3.38 5.06 5.43 -6.29 -6.70Loss and LAE Ratio 57.99 41.70 53.42 95.23 98.42Expense Ratio 116.18 41.41 30.35 65.55 66.77Loss Ratio 52.34 35.63 34.49 83.83 87.44Combined Ratio 174.17 83.10 83.77 160.78 165.20Operating Ratio 168.42 75.71 74.36 154.73 159.47Investment ratio 5.75 7.39 9.42 6.05 5.72

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 18.88 20.76 35.71 23.11 38.96Cash, Common & Liquid Bonds / Liabilities 93.30 122.99 114.16 78.45 90.21Cash & Short-Term Investments / C&S 27.86 21.24 38.77 43.91 87.14Liabilities / Liquid Assets (IRIS Ratio) 107.00 81.00 88.00 127.00 111.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 102.69 140.15 122.77 95.89 107.68Cash From Underwriting ($000) -446 -69 500 43 76Net Cash From Operations ($000) -336 71 339 80 243Underwriting Cash Flow Ratio 47.91 93.69 192.45 105.08 106.99Operating Cash Flow Ratio 47.91 94.45 239.17 105.08 94.75Unassigned Funds / Total Assets 9.39 18.44 21.17 11.48 9.42

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 139 118 136NPW to Policyholders' Surplus 300 --- 81 71 54Change in Net Premiums Written 33 -33 187* -1 -37*Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 105* 75 105*

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 5 1 5 9 2 2*

MSA: Baltimore-Towson, MD (Metro)

Distribution Channel: Direct Response

107.0

81.088.0

127.0

111.0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

174.2

83.1 83.8

160.8 165.2

-25.00

-20.00

-15.00

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 5.1 5.9 2.2*

Loss Adjustment Expense Ratio 5.65 6.07 18.94 11.39 10.99 Gross Change in Policyholders' Surplus 50 -10 19 12 -16*Net Commission Ratio 44.19 16.01 15.33 23.89 NA Net Change in Adj Policyholders' Surplus 25 -10 21 12 -16*Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 NA Liabilities to Liquid Assets 100 --- 81 88 127*Tax, License & Fees Ratio 11.43 4.08 4.86 7.52 NA Agents' Bal to Policyholders' Surplus 40 --- 0 0 0Admin & Other Expense Ratio 60.56 21.31 10.16 34.15 NA 1-Yr Resv Dev to Policyholders' Surplus 20 --- -16 -22 -7Gross Premiums Written ($000)3 757 1,694 1,624 1,561 NA 2-Yr Resv Dev to Policyholders' Surplus 20 --- 3 -36 -46Loss & Loss Adj Expense ($000) 616 412 522 585 594 Est Curr Resv Defi/Policyholders' Surplus 25 --- 4 -38 -106Other Underwriting Exp Incurred ($000) 400 409 297 403 423 *Indicates an unusual value.Net Underwriting Gains ($000) 46 167 159 -374 -414 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 45.54 58.34 60.20 39.39 NA complements of each ratio.Effective Tax Rate 12.66 29.93 33.57 NM NM

Pre-Tax Operating Margin 9.54 22.19 23.44 -51.60 -59.47 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth -26.98 -2.51 15.72 16.40 8.67

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth -39.33 -17.28 19.11 46.49 20.57

Reinsurance Recoverable ex US Aff 0 0 0 1 NA Net Premiums Written Growth -65.60 186.88 -1.09 -37.11 -34.10Retention Ratio (NPW/GPW) (%)3 45.54 58.34 60.20 39.39 NA Pre-Tax Operating Income Growth 5.39 118.50 7.00 NM NMUnauthorized Net Recov. (ex US Aff) (%) NA NA NA 0.00 NA Net Income Growth 39.08 55.98 11.39 NM NMNonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 NA Loss & Loss Adj Exp Reserves Growth 20.06 -20.10 26.22 28.95 14.47Reinsurance Payable on Losses, LAE 0 0 0 0 NA Direct Premiums Written Growth -57.00 123.93 -4.16 -3.88 1.69Reinsurance on Known Case Reserves 0 0 0 0 NA Total Liabilities Five-year CAGR 16.25 8.60 3.25 -2.69 3.16

Capital & Surplus Five-year CAGR 20.67 20.39 10.81 5.14 3.38Admitted Assets Five-year CAGR 17.94 13.53 6.48 -0.38 3.23

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 1,024 1,222 1,371 1,148 1,128 Environmental NA NA NA NA NA RBC - Total Adjusted Capital NA NA NA NA NA Combined NA NA NA NA NA ACL Risk Based Capital NA NA NA NA NA

Risk Based Capital Ratio (TAC/ACL RBC) NA NA NA NA NA

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) NA NA NA NA NA

Change in Loss & LAE Resv / Reserves 20.06 -20.10 26.22 28.95 14.47 Realized Capital Gains (Losses) 13 0 24 0 01 Yr Loss Reserve Dev / 1Y Prior C&S -1.83 -16.30 -22.36 -7.10 NA Net Unrealized Capital Gains (Losses) -13 54 -17 1 472 Yr Loss Reserve Dev / 2Y Prior C&S -35.43 2.96 -36.46 -46.11 NA Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 127.66 135.19 136.76 239.78 279.44 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE -1.69 -16.89 -27.93 -15.85 NA Net Premiums Written / Avg C&S (%) 34.75 94.61 79.61 47.61 54.97IBNR/ Total Reserves 63.16 86.62 53.19 36.44 NA Liabilities / Capital & Surplus (%) 147.57 102.33 108.58 189.97 223.66Reserves/ Equity 134.07 89.80 100.97 155.51 157.06 Total Reins Recov Excl US Aff / C&S (%) 0.00 0.00 0.00 0.09 NA

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

0200400600800

1,0001,2001,4001,600

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

45.5

58.3 60.2

39.4

0200400600800

1,0001,2001,4001,6001,800

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

AEGIS Healthcare RRG Inc. (Baltimore, MD)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 0 0 0 0 0 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 757 1,694 1,624 1,561 1,587Common Stocks 1,125 1,278 1,168 1,207 1,293 Accident & Health Direct Premiums 0 0 0 0 NA

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 757 1,694 1,624 1,561 1,587Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -412 -706 -646 -946 -953Occupied Properties 0 0 0 0 0 Net Premiums Written 345 988 978 615 634Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -718 0 0 0 31Properties for Sale 0 0 0 0 0 Net Premiums Earned 1,063 988 978 615 603

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 285 259 532 504 983 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 NASubtotals, Cash & Invested Assets 1,410 1,537 1,700 1,711 2,277 Net Losses Paid - Commercial 329 629 53 406 NAPremiums & Considerations Due 0 0 0 0 291 Net Losses Paid - A&H 0 0 0 0 NAReinsurance Recoverable 128 63 0 276 47 Net Losses Paid 329 629 53 406 NAAll Other Admitted Assets 998 871 1,160 1,343 1,038 Net LAE Paid 58 59 181 54 NASeparate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 NATotal Net Admitted Assets 2,535 2,472 2,860 3,329 3,652 Change in Loss Reserves - Commercial 227 -277 284 110 NA

Change in Loss Reserves - A&H 0 0 0 0 NALiabilities Change in LAE Reserves 2 1 4 16 NA

Unpaid Losses 1,283 1,006 1,290 1,675 1,662 Net Change in Loss and LAE Reserves 229 -276 288 125 NAUnpaid Loss Adj Expenses 90 91 95 111 111 Losses and LAE Incurred 616 412 522 585 594

Loss & Loss Adj Exp Reserves 1,373 1,097 1,385 1,785 1,772 Other Underwriting Expense Incurred 400 409 297 403 423Unearned Premiums 0 0 0 0 342 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 0 0 0 275 275 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 107 114 104 121 135 Net Underwriting Gain (Loss) 46 167 159 -374 -414Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 31 40 0 0 0 Total underwriting deductions 1,017 821 819 989 1,017

Total Liabilities 1,511 1,250 1,489 2,181 2,524

Income ($000)Total Capital and Surplus Net Investment Income 61 73 92 37 35

Common Capital Stock 154 154 154 146 151 Net Realized Capital Gains (Losses) 13 0 24 0 0Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 -6 0 0 0Unassigned Surplus 238 456 605 382 344 Income after cap gains (loss) before tax 120 234 275 -336 -379Other Including Gross Contributed 632 612 612 620 634 Federal Income Tax 15 70 92 -112 -125

Capital & Surplus 1,024 1,222 1,371 1,148 1,128 Net Income 105 164 183 -224 -254

Total Liabilities and C&S 2,535 2,472 2,860 3,329 3,652 Pre-tax Operating Income 107 234 251 -336 -379

Memo: Total Revenue 1,137 1,056 1,094 652 638Memo: Affiliated Investments ($000) Memo: Paid Expenses 528 462 488 450 NA

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 0 0 0 0 0Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 61 73 92 37 35 Class 6 0 0 0 0 0R li d C it l G i 13 0 24 0 0Realized Capital Gains 13 0 24 0 0Unrealized Capital Gains -13 54 -17 1 47Total Cash & Investments 1,410 1,537 1,700 1,711 2,277Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 0 0 0 0 0Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 1,125 1,278 1,168 1,207 1,293Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) NA NA NA NA NAPrivately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 NABonds Rated 3-6 / Total Bonds (%) NA NA NA NA NAMortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 NAMortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 NA 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 NA 0

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 0 0 0 0 0Common Stock 1,207 1,207 1,151 -- 3,564Preferred Stock 0 0 0 -- 0Total 1,207 1,207 1,151 0 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) NA NA NA NA NABonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 0.00 0.00 0.00 0.00 0.00Common Stocks / C&S 109.81 104.62 85.19 105.12 114.62Unaff common stock/Invested Assets 79.76 83.12 68.72 70.54 56.81

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Maryland 1,561 Cash/Invested Assets 20.24 16.88 31.28 29.46 43.192. Alaska 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Alabama 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Arkansas 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Arizona 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 0 All Other Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 0.00 0.00 0.00 0.00 7.96

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 5.03 2.54 0.00 8.27 1.28

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA NA 14.68 1.90 -3.79 All other admitted assets/Total Assets 39.35 35.25 40.57 40.33 28.43National DPW ($000) 1,760 757 1,694 1,624 1,561 Invested Assets/Total Assets 55.61 62.21 59.43 51.39 62.34Adjusted Loss Ratio 21.12 30.98 20.78 20.76 33.02 Investment Income/Total Assets 2.41 2.95 3.22 1.12 0.95

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 0.0% Preferred Stocks - 0.0%

Common Stocks - 70.5% Mortgage Loans - 0.0%

Other Invstmts - 29.5% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Maryland - 100.0% Alaska - 0.0%

Alabama - 0.0% Arkansas - 0.0%

Arizona - 0.0% All other - 0.0%

when an inter-company pooling arrangement exists.

Allied Professionals Ins Co. (Orange, CA)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

1100 West Town & Country Road NAIC Company Code : 11710 Total Assets 16,256 18,918 22,115 24,157 31,532Suite 1400 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 7,117 8,367 9,043 11,350 13,003Orange, CA 92868-4655 Geographic Focus: National Total Liabilities 9,139 10,551 13,072 12,808 18,529

NAIC Ownership Structure: Risk Retention Group Net Income 1,243 1,196 940 2,235 1,422Tax Identification Number : 86-1070645 Total Revenue 6,996 8,355 8,043 9,443 13,087

Direct Premiums Written 9,815 10,561 12,639 13,553 20,219Net Premiums Written 7,084 8,512 8,363 9,614 15,366

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 6,602 7,986 7,699 9,088 12,703

AM Best Financial Strength Rating A- 10/04/10 -- Not Covered by SNL Loss & Loss Adj Exp Reserves 4,283 4,898 6,431 6,275 7,917Demotech Financial Strength Rating A' 03/06/13 Affirm Loss & LAE Reserves/ NPE (%) 60.92 56.51 74.64 73.02 52.59S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 29.22 21.64 16.21 31.77 19.64Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 1.00 1.02 0.92 0.85 1.18Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Douglas Joseph Hauser Auditor Warfield & CompanyPhone : (714) 571-1864 Actuary Perr & KnightFax : (714) 571-1863 CEO --Email : NSXDiehard@cs.com CFO --

President Philip Christopher Stump

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.93 2.29 1.80 1.67 1.50Net Investment Income/Earned Premiums 5.56 4.33 4.11 3.69 2.50Return on Average Equity (C&S) 20.13 14.88 11.06 21.71 11.77Return on Avg Assets 8.40 6.79 4.40 9.55 5.06Loss and LAE Ratio 30.52 23.13 37.93 20.93 34.61Expense Ratio 44.85 56.01 44.79 44.42 41.12Loss Ratio 12.99 11.96 14.29 8.37 13.83Combined Ratio 75.37 79.14 82.71 65.34 75.73Operating Ratio 69.41 74.52 78.24 61.44 72.70Investment ratio 5.96 4.62 4.47 3.90 3.02

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 31.14 23.31 13.62 19.06 31.21Cash, Common & Liquid Bonds / Liabilities 163.88 164.12 155.39 173.70 155.06Cash & Short-Term Investments / C&S 39.98 29.39 19.69 21.51 44.47Liabilities / Liquid Assets (IRIS Ratio) 61.00 61.00 64.00 57.00 64.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 199.72 199.91 197.29 209.45 195.43Cash From Underwriting ($000) 2,787 2,506 3,351 3,428 6,857Net Cash From Operations ($000) 2,427 2,406 3,760 2,958 6,678Underwriting Cash Flow Ratio 164.94 143.44 166.82 154.01 176.49Operating Cash Flow Ratio 183.35 155.14 171.31 173.71 187.64Unassigned Funds / Total Assets 37.94 39.21 36.59 43.05 32.52

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 140 119 155NPW to Policyholders' Surplus 300 --- 92 85 118Change in Net Premiums Written 33 -33 -2 15 60*Surplus Aid to Policyholders' Surplus 15 --- 3 3 3Two-Year Overall Operating Ratio 100 --- 76 69 68

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 1 8* 1 7* 1 5*

MSA: Los Angeles-Long Beach-Santa Ana, CA (Metro)

Distribution Channel: Broker

61.0 61.0

64.0

57.0

64.0

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

75.479.1 82.7

65.3

75.7

0.00

5.00

10.00

15.00

20.00

25.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 1.8* 1.7* 1.5*

Loss Adjustment Expense Ratio 17.52 11.17 23.64 12.56 20.78 Gross Change in Policyholders' Surplus 50 -10 8 26 15Net Commission Ratio 14.88 28.32 19.00 19.19 25.24 Net Change in Adj Policyholders' Surplus 25 -10 8 26* 15Salaries & Benefits Ratio 0.00 0.00 0.00 0.03 0.17 Liabilities to Liquid Assets 100 --- 64 57 64Tax, License & Fees Ratio 3.71 3.81 3.92 4.07 3.44 Agents' Bal to Policyholders' Surplus 40 --- 10 8 10Admin & Other Expense Ratio 26.26 23.88 21.86 21.12 12.27 1-Yr Resv Dev to Policyholders' Surplus 20 --- -2 -10 0Gross Premiums Written ($000)3 9,815 10,561 12,639 13,553 20,219 2-Yr Resv Dev to Policyholders' Surplus 20 --- -12 -12 -11Loss & Loss Adj Expense ($000) 2,015 1,847 2,920 1,902 4,397 Est Curr Resv Defi/Policyholders' Surplus 25 --- -24 -7 8Other Underwriting Exp Incurred ($000) 3,177 4,767 3,745 4,270 6,318 *Indicates an unusual value.Net Underwriting Gains ($000) 1,410 1,372 1,034 2,916 1,988 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 72.18 80.60 66.17 70.94 76.00 complements of each ratio.Effective Tax Rate 31.12 31.62 31.85 31.71 40.00

Pre-Tax Operating Margin 25.78 20.83 17.13 34.64 18.13 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 19.71 16.37 16.90 9.24 30.53

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 17.93 15.45 23.89 -2.02 44.67

Reinsurance Recoverable ex US Aff 1,235 1,289 2,185 2,412 2,632 Net Premiums Written Growth 6.84 20.15 -1.75 14.96 59.82Retention Ratio (NPW/GPW) (%)3 72.18 80.60 66.17 70.94 76.00 Pre-Tax Operating Income Growth -35.59 -3.48 -20.83 137.35 -27.47Unauthorized Net Recov. (ex US Aff) (%) 1.21 11.48 20.32 27.07 32.48 Net Income Growth -35.39 -3.71 -21.40 137.66 -36.38Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 23.34 14.35 31.30 -2.42 26.17Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth 7.15 7.60 19.68 7.23 49.19Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 154.79 36.53 20.21 14.38 19.05

Capital & Surplus Five-year CAGR 52.55 47.41 28.60 23.75 17.40Admitted Assets Five-year CAGR 76.59 40.74 23.24 18.24 18.35

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 7,117 8,367 9,043 11,350 13,003 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 7,117 8,367 9,043 11,350 13,003 Combined NA NA NA NA NA ACL Risk Based Capital 1,206 1,976 1,588 1,780 2,784

Risk Based Capital Ratio (TAC/ACL RBC) 590.14 423.45 569.34 637.62 467.02

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 295.07 211.72 284.67 318.81 233.51

Change in Loss & LAE Resv / Reserves 23.34 14.35 31.30 -2.42 26.17 Realized Capital Gains (Losses) 1 9 2 2 -31 Yr Loss Reserve Dev / 1Y Prior C&S -8.04 -9.58 -2.01 -9.90 0.27 Net Unrealized Capital Gains (Losses) 0 0 0 15 622 Yr Loss Reserve Dev / 2Y Prior C&S -14.88 -12.90 -11.93 -11.51 -10.66 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 60.92 56.51 74.64 73.02 52.59 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE -7.10 -8.54 -2.18 -9.85 0.24 Net Premiums Written / Avg C&S (%) 114.78 105.82 98.35 93.38 127.19IBNR/ Total Reserves 28.74 29.49 19.97 26.09 26.15 Liabilities / Capital & Surplus (%) 128.40 126.10 144.55 112.85 142.49Reserves/ Equity 60.18 58.54 71.11 55.29 60.89 Total Reins Recov Excl US Aff / C&S (%) 17.35 15.41 24.16 21.25 20.24

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

295.1

211.7

284.7318.8

233.5

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

72.280.6

66.270.9

76.0

0

5,000

10,000

15,000

20,000

25,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Allied Professionals Ins Co. (Orange, CA)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 12,031 14,657 18,532 19,046 22,176 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 9,815 10,561 12,639 13,553 20,219Common Stocks 0 0 0 760 831 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 9,815 10,561 12,639 13,553 20,219Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -2,731 -2,049 -4,276 -3,939 -4,853Occupied Properties 0 0 0 0 0 Net Premiums Written 7,084 8,512 8,363 9,614 15,366Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 482 525 663 526 2,663Properties for Sale 0 0 0 0 0 Net Premiums Earned 6,602 7,986 7,699 9,088 12,703

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 2,845 2,459 1,781 2,441 5,783 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 14,876 17,116 20,313 22,247 28,790 Net Losses Paid - Commercial 554 537 493 728 957Premiums & Considerations Due 664 910 877 899 1,325 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 63 51 41 15 0 Net Losses Paid 554 537 493 728 957All Other Admitted Assets 652 839 883 996 1,417 Net LAE Paid 650 695 894 1,329 1,797Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 16,256 18,918 22,115 24,157 31,532 Change in Loss Reserves - Commercial 304 418 607 32 799

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 507 197 926 -187 843

Unpaid Losses 2,659 3,077 3,684 3,716 4,515 Net Change in Loss and LAE Reserves 811 615 1,533 -155 1,642Unpaid Loss Adj Expenses 1,624 1,821 2,747 2,559 3,402 Losses and LAE Incurred 2,015 1,847 2,920 1,902 4,397

Loss & Loss Adj Exp Reserves 4,283 4,898 6,431 6,275 7,917 Other Underwriting Expense Incurred 3,177 4,767 3,745 4,270 6,318Unearned Premiums 3,784 4,309 4,972 5,498 8,161 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 403 396 688 194 900 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 69 295 327 282 374 Net Underwriting Gain (Loss) 1,410 1,372 1,034 2,916 1,988Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 601 653 653 559 1,176 Total underwriting deductions 5,192 6,614 6,665 6,172 10,715

Total Liabilities 9,139 10,551 13,072 12,808 18,529

Income ($000)Total Capital and Surplus Net Investment Income 394 369 344 354 384

Common Capital Stock 600 600 600 600 2,400 Net Realized Capital Gains (Losses) 1 9 2 2 -3Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus 6,167 7,417 8,093 10,400 10,253 Income after cap gains (loss) before tax 1,804 1,750 1,380 3,273 2,370Other Including Gross Contributed 350 350 350 350 350 Federal Income Tax 562 553 440 1,038 948

Capital & Surplus 7,117 8,367 9,043 11,350 13,003 Net Income 1,243 1,196 940 2,235 1,422

Total Liabilities and C&S 16,256 18,918 22,115 24,157 31,532 Pre-tax Operating Income 1,803 1,741 1,378 3,271 2,372

Memo: Total Revenue 6,996 8,364 8,045 9,445 13,084Memo: Affiliated Investments ($000) Memo: Paid Expenses 3,833 5,463 4,640 5,601 8,122

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 12,131 13,736 17,855 17,704 19,136Cash & Short Term Investments 0 0 0 0 0 Class 2 0 1,120 677 1,343 2,979All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 60Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 394 369 344 354 384 Class 6 0 0 0 0 0R li d C it l G i 1 9 2 2 3Realized Capital Gains 1 9 2 2 -3Unrealized Capital Gains 0 0 0 15 62Total Cash & Investments 14,876 17,116 20,313 22,247 28,790Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 12,131 14,857 18,532 19,046 22,176Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 0 0 760 831Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.27Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 12,031 1,045 1,370 2,179 2,907Issued Political Subdivisions ($000) 0 3,685 7,194 7,094 7,981Issued State Rev Obligations ($000) 0 9,926 9,968 9,773 10,990Issued Industrial Development ($000) 0 0 0 0 297

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 22,176 22,362 22,866 20,740 88,144Common Stock 831 831 745 -- 2,407Preferred Stock 0 0 0 -- 0Total 23,006 23,193 23,611 20,740 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.08 1.04 1.07 1.14Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.46Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 80.87 85.63 91.23 85.61 77.03Common Stocks / C&S 0.00 0.00 0.00 6.69 6.39Unaff common stock/Invested Assets 0.00 0.00 0.00 3.41 2.89

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. California 3,809 1. Med Prof Liab 20,219 Cash/Invested Assets 19.13 14.37 8.77 10.97 20.092. New York 2,893 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Florida 1,551 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Washington 1,171 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Texas 956 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 9,839 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 4.09 4.81 3.97 3.72 4.20

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.39 0.27 0.19 0.06 0.00

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.01 0.00 0.00 0.00DPW 5 Yr CAGR 79.19 13.27 12.08 9.40 17.16 All other admitted assets/Total Assets 4.01 4.43 3.99 4.12 4.50National DPW ($000) 9,815 10,561 12,639 13,553 20,219 Invested Assets/Total Assets 91.51 90.47 91.85 92.09 91.30Adjusted Loss Ratio 14.55 10.03 21.88 9.27 17.56 Investment Income/Total Assets 2.42 1.95 1.56 1.47 1.22

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 77.0% Preferred Stocks - 0.0%

Common Stocks - 2.9% Mortgage Loans - 0.0%

Other Invstmts - 20.1% 0.00 0.10 0.20 0.30

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

California - 18.8% New York - 14.3%

Florida - 7.7% Washington - 5.8%

Texas - 4.7% All other - 48.7%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Amer Trucking & Transportation (Missoula, MT)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

111 North Higgins Avenue NAIC Company Code : 11534 Total Assets 11,680 12,964 13,854 14,354 15,256Fourth Floor Business Focus : Commercial Property Focus Policyholder Surplus 2,660 3,239 4,217 3,914 4,423Missoula, MT 59802-4437 Geographic Focus: Regional - Western Quadrant Total Liabilities 9,020 9,725 9,637 10,440 10,834

NAIC Ownership Structure: Risk Retention Group Net Income 651 257 607 -41 401Tax Identification Number : 33-1019877 Total Revenue 4,296 2,814 3,403 2,842 2,507

Direct Premiums Written 6,376 4,846 6,644 5,967 6,686Net Premiums Written 3,837 1,987 3,349 2,632 2,153

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 3,795 2,323 2,921 2,429 2,082

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 5,750 6,400 6,088 5,702 5,552Demotech Financial Strength Rating A 03/29/13 Affirm Loss & LAE Reserves/ NPE (%) 154.82 274.39 225.01 256.58 278.10S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 36.19 16.10 25.72 -8.25 6.56Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 1.44 0.61 0.79 0.67 0.49Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Patricia Lorraine Maloney Auditor Anderson ZurMuehlen & Co. P.CPhone : (406) 523-3908 Actuary Turner Consulting Inc.Fax : (406) 523-3935 CEO Kenneth Carl CrippenEmail : tmaloney@atticrrg.com CFO --

President Kenneth Carl Crippen

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 4.28 3.57 3.56 3.01 2.71Net Investment Income/Earned Premiums 8.87 15.97 12.16 13.80 17.40Return on Average Equity (C&S) 22.73 9.20 17.15 -1.03 9.20Return on Avg Assets 6.11 2.23 4.72 -0.32 2.77Loss and LAE Ratio 70.15 74.35 59.05 97.69 70.32Expense Ratio 15.56 32.06 22.92 30.42 35.15Loss Ratio 32.45 28.99 10.57 51.02 -43.27Combined Ratio 85.70 106.41 81.98 128.11 105.48Operating Ratio 76.73 92.75 68.03 113.15 87.48Investment ratio 8.97 13.66 13.95 14.96 18.00

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 20.20 6.36 24.45 22.12 27.11Cash, Common & Liquid Bonds / Liabilities 86.54 102.17 133.58 126.25 128.98Cash & Short-Term Investments / C&S 68.47 19.09 55.87 59.00 66.41Liabilities / Liquid Assets (IRIS Ratio) 127.00 100.00 74.00 78.00 76.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 199.82 295.39 258.99 289.41 309.53Cash From Underwriting ($000) 216 1,226 3,494 335 -349Net Cash From Operations ($000) 482 1,334 3,800 525 243Underwriting Cash Flow Ratio 108.08 162.28 219.65 109.52 84.17Operating Cash Flow Ratio 116.11 180.53 224.52 116.58 75.94Unassigned Funds / Total Assets 5.69 9.59 13.83 11.77 14.90

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 158 152 151NPW to Policyholders' Surplus 300 --- 79 67 49Change in Net Premiums Written 33 -33 69* -21 -18Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 74 86 99

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 3 6 2 8* 2 7*

MSA: Missoula, MT (Metro)

Distribution Channel: Direct Response

127.0

100.0

74.0 78.0 76.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

85.7

106.4

82.0

128.1

105.5

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 3.6 2.8* 2.7*

Loss Adjustment Expense Ratio 37.70 45.36 48.48 46.67 113.60 Gross Change in Policyholders' Surplus 50 -10 30 -7 13Net Commission Ratio 1.85 3.91 1.45 -0.57 1.14 Net Change in Adj Policyholders' Surplus 25 -10 28* -4 15Salaries & Benefits Ratio 5.15 10.84 7.41 10.26 12.34 Liabilities to Liquid Assets 100 --- 74 78 76Tax, License & Fees Ratio 5.04 6.65 7.18 6.45 9.54 Agents' Bal to Policyholders' Surplus 40 --- 4 0 9Admin & Other Expense Ratio 3.53 10.67 6.88 14.28 12.13 1-Yr Resv Dev to Policyholders' Surplus 20 --- 11 8 -14Gross Premiums Written ($000)3 6,376 4,846 6,644 5,967 6,686 2-Yr Resv Dev to Policyholders' Surplus 20 --- -3 2 -12Loss & Loss Adj Expense ($000) 2,662 1,727 1,725 2,373 1,464 Est Curr Resv Defi/Policyholders' Surplus 25 --- 8 9 -31Other Underwriting Exp Incurred ($000) 597 637 768 801 757 *Indicates an unusual value.Net Underwriting Gains ($000) 536 -41 428 -745 -139 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 60.17 41.00 50.41 44.11 32.20 complements of each ratio.Effective Tax Rate 35.23 36.88 31.92 NM 25.66

Pre-Tax Operating Margin 24.15 15.97 26.75 -11.66 11.42 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 0.67 10.99 6.87 3.61 6.29

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 3.39 7.82 -0.91 8.34 3.77

Reinsurance Recoverable ex US Aff 9,600 15,875 9,727 11,467 12,060 Net Premiums Written Growth 2.41 -48.21 68.55 -21.41 -18.20Retention Ratio (NPW/GPW) (%)3 60.17 41.00 50.41 44.11 32.20 Pre-Tax Operating Income Growth 176.71 -56.69 102.61 NM NMUnauthorized Net Recov. (ex US Aff) (%) 0.15 1.88 4.84 9.51 15.97 Net Income Growth 242.65 -60.58 136.43 NM NMNonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 2.35 11.30 -4.87 -6.35 -2.63Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -6.06 -24.00 37.10 -10.19 12.04Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 16.91 15.03 6.64 6.31 4.43

Capital & Surplus Five-year CAGR 16.73 17.72 15.52 9.09 8.97Admitted Assets Five-year CAGR 16.87 15.67 8.92 7.02 5.63

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 2,660 3,239 4,217 3,914 4,423 Environmental NA NA NA NA NA RBC - Total Adjusted Capital NA NA NA 3,914 4,423 Combined NA NA NA NA NA ACL Risk Based Capital NA NA NA 1,219 1,010

Risk Based Capital Ratio (TAC/ACL RBC) NA NA NA 321.10 438.03

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) NA NA NA 160.55 219.02

Change in Loss & LAE Resv / Reserves 2.35 11.30 -4.87 -6.35 -2.63 Realized Capital Gains (Losses) -32 -42 -19 107 2531 Yr Loss Reserve Dev / 1Y Prior C&S 20.04 -10.19 11.45 8.42 -14.23 Net Unrealized Capital Gains (Losses) -863 636 453 -249 2242 Yr Loss Reserve Dev / 2Y Prior C&S 21.51 24.28 -2.52 2.25 -12.16 Dividends to Stockholders 0 -250 -100 0 0Loss and LAE Reserves / NPE 154.82 274.39 225.01 256.58 278.10 Dividend Payout Ratio (%) 0.00 97.36 16.47 0.00 0.001 Yr Loss Reserve Development / NPE 15.21 -11.66 12.70 14.62 -26.76 Net Premiums Written / Avg C&S (%) 133.86 71.18 94.63 65.51 49.38IBNR/ Total Reserves 36.95 38.87 40.09 34.19 18.95 Liabilities / Capital & Surplus (%) 339.06 300.22 228.51 266.75 244.95Reserves/ Equity 216.14 197.58 144.36 145.68 125.52 Total Reins Recov Excl US Aff / C&S (%) 360.86 490.08 230.64 292.98 272.67

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

160.6

219.0

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

60.2

41.0

50.444.1

32.2

01,0002,0003,0004,0005,0006,0007,0008,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Amer Trucking & Transportation (Missoula, MT)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 2,785 5,772 7,268 7,546 7,301 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 6,376 4,846 6,644 5,967 6,686Common Stocks 2,422 3,244 3,316 3,477 3,982 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 6,376 4,846 6,644 5,967 6,686Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -2,539 -2,859 -3,295 -3,335 -4,533Occupied Properties 0 0 0 0 0 Net Premiums Written 3,837 1,987 3,349 2,632 2,153Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 42 -336 428 203 71Properties for Sale 0 0 0 0 0 Net Premiums Earned 3,795 2,323 2,921 2,429 2,082

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 1,822 619 2,356 2,309 2,937 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 7,029 9,634 12,941 13,333 14,220 Net Losses Paid - Commercial 1,071 295 658 1,099 243Premiums & Considerations Due 3,882 2,745 169 0 390 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 386 0 169 38 214 Net Losses Paid 1,071 295 658 1,099 243All Other Admitted Assets 383 586 576 984 433 Net LAE Paid -1,560 782 1,378 1,660 1,371Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 11,680 12,964 13,854 14,354 15,256 Change in Loss Reserves - Commercial 161 378 -350 140 -1,143

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 2,990 272 38 -526 993

Unpaid Losses 2,760 3,138 2,789 2,929 1,785 Net Change in Loss and LAE Reserves 3,151 650 -312 -387 -150Unpaid Loss Adj Expenses 2,990 3,262 3,300 2,773 3,766 Losses and LAE Incurred 2,662 1,727 1,725 2,373 1,464

Loss & Loss Adj Exp Reserves 5,750 6,400 6,088 5,702 5,552 Other Underwriting Expense Incurred 597 637 768 801 757Unearned Premiums 2,572 2,236 2,664 2,867 2,939 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities -27 962 580 1,576 1,714 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 529 127 176 141 171 Net Underwriting Gain (Loss) 536 -41 428 -745 -139Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 196 0 129 155 458 Total underwriting deductions 3,259 2,364 2,493 3,173 2,221

Total Liabilities 9,020 9,725 9,637 10,440 10,834

Income ($000)Total Capital and Surplus Net Investment Income 340 317 407 363 375

Common Capital Stock 1,996 1,996 2,072 2,072 2,072 Net Realized Capital Gains (Losses) -32 -42 -19 107 253Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 161 173 75 50 51Surplus Notes 0 0 229 152 77 All Other Income 0 0 0 0 0Unassigned Surplus 664 1,243 1,917 1,690 2,273 Income after cap gains (loss) before tax 1,006 407 892 -224 539Other Including Gross Contributed 0 0 0 0 0 Federal Income Tax 354 150 285 -183 138

Capital & Surplus 2,660 3,239 4,217 3,914 4,423 Net Income 651 257 607 -41 401

Total Liabilities and C&S 11,680 12,964 13,854 14,354 15,256 Pre-tax Operating Income 1,037 449 910 -331 286

Memo: Total Revenue 4,264 2,771 3,384 2,949 2,760Memo: Affiliated Investments ($000) Memo: Paid Expenses -906 1,488 2,240 2,563 2,240

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 2,252 3,639 5,358 5,571 5,566Cash & Short Term Investments 0 0 0 0 0 Class 2 1,309 2,434 1,843 1,824 1,489All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 100 68 152 246Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 340 317 407 363 375 Class 6 20 0 0 0 0R li d C it l G i 32 42 19 107 253Realized Capital Gains -32 -42 -19 107 253Unrealized Capital Gains -863 636 453 -249 224Total Cash & Investments 7,029 9,634 12,941 13,333 14,220Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 3,582 6,174 7,268 7,546 7,301Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 2,422 3,244 3,316 3,477 3,982Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 8.10 NM 2.32 1.35Privately Placed Bonds / C&S (%) 0.00 15.44 -39.26 4.47 2.22Bonds Rated 3-6 / Total Bonds (%) 0.57 1.62 0.93 2.01 3.37Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 368 948 785 249

Municipal SecuritiesIssued States & Territories ($000) 0 541 1,359 2,008 1,505Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 7,301 7,846 7,341 7,324 29,813Common Stock 3,982 3,982 3,580 -- 11,543Preferred Stock 0 0 0 -- 0Total 11,283 11,828 10,921 7,324 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.39 1.43 1.27 1.28 1.27Bonds Rated 3-6 / C&S 0.77 3.09 1.61 3.88 5.57Class 5 and 6 Bonds / C&S 0.77 0.00 0.00 0.00 0.00Bonds/Invested Assets 39.62 59.91 56.17 56.60 51.34Common Stocks / C&S 91.05 100.13 78.63 88.84 90.02Unaff common stock/Invested Assets 34.46 33.67 25.63 26.08 28.00

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Louisiana 2,196 1. Comm'l Auto St 6,686 Cash/Invested Assets 25.92 6.42 18.21 17.32 20.652. Washington 1,879 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Montana 1,489 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Oregon 830 4. Comm'l Multi Prl 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Ohio 291 5. Fidelity & Surety 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 0 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 33.24 21.17 1.22 0.00 2.55

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 3.31 0.00 1.22 0.26 1.40

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA -1.38 -1.01 -0.55 -0.30 All other admitted assets/Total Assets 3.28 4.52 4.16 6.85 2.84National DPW ($000) 6,376 4,846 6,644 5,967 6,686 Invested Assets/Total Assets 60.17 74.31 93.41 92.88 93.20Adjusted Loss Ratio 110.71 163.99 -65.77 169.40 4.29 Investment Income/Total Assets 2.91 2.45 2.94 2.53 2.46

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 51.3% Preferred Stocks - 0.0%

Common Stocks - 28.0% Mortgage Loans - 0.0%

Other Invstmts - 20.7% 0.00 1.00 2.00 3.00 4.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Louisiana - 32.9% Washington - 28.1%

Montana - 22.3% Oregon - 12.4%

Ohio - 4.4% All other - 0.0%

Comm'l Auto St - 100.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Multi Prl - 0.0%

Fidelity & Surety - 0.0%

All Other - 0.0%

when an inter-company pooling arrangement exists.

Applied Medico-Legal Solutions (Phoenix, AZ)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

2555 East Camelback Road NAIC Company Code : 11598 Total Assets 47,230 59,943 71,460 83,910 92,319Suite 700 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 16,507 19,036 20,673 22,205 25,118Phoenix, AZ 85016-4264 Geographic Focus: National Total Liabilities 30,724 40,908 50,787 61,705 67,202

NAIC Ownership Structure: Risk Retention Group Net Income 1,623 1,628 933 1,240 3,732Tax Identification Number : 81-0603029 Total Revenue 20,663 25,985 27,665 32,116 33,473

Direct Premiums Written 23,013 30,001 33,162 36,078 40,753Net Premiums Written 19,633 28,855 27,943 30,663 32,936

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 18,933 24,630 25,651 28,999 30,575

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 21,017 26,278 34,225 43,422 46,206Demotech Financial Strength Rating A' 03/12/13 Affirm Loss & LAE Reserves/ NPE (%) 104.17 93.98 120.78 138.20 152.45S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 22.15 12.22 5.68 6.73 17.55Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 1.19 1.52 1.35 1.38 1.31Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Lee M. Milizia Auditor Saslow Lufkin & Buggy LLPPhone : (602) 427-3208 Actuary Aon Global Risk ConsultingFax : (623) 427-3032 CEO --Email : lee_milizia@agl.aon.com CFO --

President Richard B. Welch

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 4.33 2.27 3.40 4.62 3.69Net Investment Income/Earned Premiums 7.20 3.04 5.68 8.84 7.75Return on Average Equity (C&S) 10.23 8.72 4.49 5.58 15.01Return on Avg Assets 3.47 3.01 1.39 1.56 4.13Loss and LAE Ratio 59.80 68.83 71.82 74.30 63.46Expense Ratio 29.69 23.40 28.86 29.60 29.47Loss Ratio 44.94 43.05 46.84 43.34 34.43Combined Ratio 89.48 92.23 100.68 103.90 92.93Operating Ratio 82.02 88.67 94.49 94.55 84.59Investment ratio 7.46 3.56 6.18 9.35 8.35

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 14.69 10.71 10.64 10.37 10.61Cash, Common & Liquid Bonds / Liabilities 96.22 94.13 97.51 100.45 109.08Cash & Short-Term Investments / C&S 27.34 23.02 26.15 28.82 28.39Liabilities / Liquid Assets (IRIS Ratio) 93.00 99.00 98.00 99.00 81.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 128.83 115.45 114.84 113.69 128.48Cash From Underwriting ($000) 4,605 9,154 9,308 6,370 6,957Net Cash From Operations ($000) 5,130 9,878 8,880 9,124 9,201Underwriting Cash Flow Ratio 134.18 150.60 149.54 127.33 126.56Operating Cash Flow Ratio 142.88 153.64 153.41 130.13 130.40Unassigned Funds / Total Assets 16.72 10.88 5.49 2.91 1.52

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 160 162 162NPW to Policyholders' Surplus 300 --- 135 138 131Change in Net Premiums Written 33 -33 -3 10 7Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 90 93 88

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 3 5 4 9 3 8

MSA: Phoenix-Mesa-Glendale, AZ (Metro)

Distribution Channel: General Agnt/Managing General Agnt

93.099.0 98.0 99.0

81.0

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

89.5

92.2

100.7

103.9

92.9

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 3.5 4.9 3.8

Loss Adjustment Expense Ratio 14.86 25.78 24.98 30.96 29.03 Gross Change in Policyholders' Surplus 50 -10 9 7 13Net Commission Ratio 26.64 17.34 20.60 20.10 20.26 Net Change in Adj Policyholders' Surplus 25 -10 -6 -5 -2Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 98 99 81Tax, License & Fees Ratio 0.73 1.20 1.55 1.44 1.89 Agents' Bal to Policyholders' Surplus 40 --- 38 41* 2Admin & Other Expense Ratio 2.32 4.86 6.71 8.06 7.33 1-Yr Resv Dev to Policyholders' Surplus 20 --- -5 -5 -20Gross Premiums Written ($000)3 23,013 30,001 33,162 36,078 40,753 2-Yr Resv Dev to Policyholders' Surplus 20 --- 0 -14 -26Loss & Loss Adj Expense ($000) 11,322 16,952 18,421 21,546 19,403 Est Curr Resv Defi/Policyholders' Surplus 25 --- -33 -48 -34Other Underwriting Exp Incurred ($000) 5,828 6,752 8,064 9,075 9,707 *Indicates an unusual value.Net Underwriting Gains ($000) 1,783 926 -835 -1,622 1,465 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 85.31 96.18 84.26 84.99 80.82 complements of each ratio.Effective Tax Rate 41.84 30.23 37.99 34.46 30.88

Pre-Tax Operating Margin 17.00 8.78 4.26 4.66 13.04 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 10.82 26.92 19.21 17.42 10.02

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 15.77 33.15 24.15 21.50 8.91

Reinsurance Recoverable ex US Aff 6,109 4,827 5,937 7,039 11,898 Net Premiums Written Growth 8.91 46.97 -3.16 9.73 7.41Retention Ratio (NPW/GPW) (%)3 85.31 96.18 84.26 84.99 80.82 Pre-Tax Operating Income Growth 9.37 -35.09 -48.31 26.85 191.80Unauthorized Net Recov. (ex US Aff) (%) 21.66 29.63 22.17 15.84 14.42 Net Income Growth -25.58 0.31 -42.69 32.92 200.95Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 20.80 25.03 30.24 26.87 6.41Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth 14.98 30.37 10.53 8.79 12.96Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 74.59 41.40 35.81 27.21 20.42

Capital & Surplus Five-year CAGR 40.58 35.31 22.98 12.75 9.33Admitted Assets Five-year CAGR 57.33 39.28 31.26 22.27 16.72

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 16,507 19,036 20,673 22,205 25,118 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 16,507 19,036 20,673 22,205 25,118 Combined NA NA NA NA NA ACL Risk Based Capital 2,929 3,728 4,752 5,930 5,094

Risk Based Capital Ratio (TAC/ACL RBC) 563.59 510.55 435.07 374.45 493.06

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 281.80 255.28 217.53 187.23 246.53

Change in Loss & LAE Resv / Reserves 20.80 25.03 30.24 26.87 6.41 Realized Capital Gains (Losses) -724 53 325 397 1,0361 Yr Loss Reserve Dev / 1Y Prior C&S -4.84 5.16 -5.19 -5.02 -20.38 Net Unrealized Capital Gains (Losses) -2,414 1,020 1,999 630 1,3972 Yr Loss Reserve Dev / 2Y Prior C&S -9.47 -0.44 0.29 -13.54 -25.73 Dividends to Stockholders 0 -3,000 -3,949 -2,986 -4,769Loss and LAE Reserves / NPE 104.17 93.98 120.78 138.20 152.45 Dividend Payout Ratio (%) 0.00 184.31 423.27 240.79 127.811 Yr Loss Reserve Development / NPE -4.11 3.46 -3.85 -3.58 -14.80 Net Premiums Written / Avg C&S (%) 123.78 154.62 134.55 137.92 132.49IBNR/ Total Reserves 33.13 30.26 28.93 26.68 18.99 Liabilities / Capital & Surplus (%) 186.13 214.90 245.67 277.89 267.54Reserves/ Equity 127.32 138.05 165.56 195.55 183.96 Total Reins Recov Excl US Aff / C&S (%) 37.01 25.36 28.72 31.70 47.37

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

281.8255.3

217.5187.2

246.5

0

5,000

10,000

15,000

20,000

25,000

30,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

85.3

96.2

84.3 85.0

80.8

05,000

10,00015,00020,00025,00030,00035,00040,00045,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Applied Medico-Legal Solutions (Phoenix, AZ)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 23,975 32,158 40,799 45,941 48,295 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 14 0 0 0 0 Commercial P&C Direct Premiums 23,013 30,001 33,162 36,078 40,753Common Stocks 3,827 4,346 5,102 9,672 17,297 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 23,013 30,001 33,162 36,078 40,753Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -3,380 -1,147 -5,218 -5,416 -7,817Occupied Properties 0 0 0 0 0 Net Premiums Written 19,633 28,855 27,943 30,663 32,936Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 700 4,224 2,293 1,664 2,361Properties for Sale 0 0 0 0 0 Net Premiums Earned 18,933 24,630 25,651 28,999 30,575

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 4,513 4,382 5,406 6,400 7,131 Underwriting Deductions ($000)Other Investments 381 26 9 -23 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 32,709 40,912 51,316 61,990 72,723 Net Losses Paid - Commercial 4,882 7,357 5,014 5,376 8,702Premiums & Considerations Due 6,451 8,062 7,907 9,011 8,705 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 0 0 163 286 248 Net Losses Paid 4,882 7,357 5,014 5,376 8,702All Other Admitted Assets 8,071 10,970 12,073 12,624 10,643 Net LAE Paid 2,820 4,334 5,461 6,972 7,916Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 47,230 59,943 71,460 83,910 92,319 Change in Loss Reserves - Commercial 3,626 3,245 7,000 7,192 1,824

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves -7 2,016 946 2,006 960

Unpaid Losses 17,773 21,018 28,018 35,210 37,034 Net Change in Loss and LAE Reserves 3,619 5,261 7,946 9,198 2,784Unpaid Loss Adj Expenses 3,244 5,260 6,207 8,212 9,172 Losses and LAE Incurred 11,322 16,952 18,421 21,546 19,403

Loss & Loss Adj Exp Reserves 21,017 26,278 34,225 43,422 46,206 Other Underwriting Expense Incurred 5,828 6,752 8,064 9,075 9,707Unearned Premiums 9,115 13,339 15,632 17,296 19,657 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 0 0 0 0 0 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 323 677 590 444 543 Net Underwriting Gain (Loss) 1,783 926 -835 -1,622 1,465Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 268 613 341 543 796 Total underwriting deductions 17,150 23,705 26,486 30,621 29,110

Total Liabilities 30,724 40,908 50,787 61,705 67,202

Income ($000)Total Capital and Surplus Net Investment Income 1,413 876 1,586 2,711 2,552

Common Capital Stock 12,943 16,262 19,071 21,566 24,925 Net Realized Capital Gains (Losses) -724 53 325 397 1,036Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 317 478 428 343 288Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 63 58Unassigned Surplus 7,896 6,523 3,920 2,446 1,408 Income after cap gains (loss) before tax 2,790 2,333 1,504 1,892 5,399Other Including Gross Contributed -4,333 -3,750 -2,318 -1,806 -1,215 Federal Income Tax 1,167 705 571 652 1,667

Capital & Surplus 16,507 19,036 20,673 22,205 25,118 Net Income 1,623 1,628 933 1,240 3,732

Total Liabilities and C&S 47,230 59,943 71,460 83,910 92,319 Pre-tax Operating Income 3,513 2,280 1,179 1,495 4,363

Memo: Total Revenue 19,939 26,038 27,990 32,513 34,509Memo: Affiliated Investments ($000) Memo: Paid Expenses 8,825 11,206 13,644 15,677 17,890

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 19,438 27,985 35,318 40,925 41,515Cash & Short Term Investments 0 0 0 0 0 Class 2 1,785 1,792 3,694 4,988 7,360All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 320 0 0 0 0Class 4 2,636 2,380 3,815 4,227 4,321

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 1,413 876 1,586 2,711 2,552 Class 6 4 0 0 0 0R li d C it l G i 724 53 325 397 1 036Realized Capital Gains -724 53 325 397 1,036Unrealized Capital Gains -2,414 1,020 1,999 630 1,397Total Cash & Investments 32,709 40,912 51,316 61,990 72,723Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 24,184 32,158 42,826 50,141 53,195Total Preferred Stock (incl Nonadmitted) 14 0 0 0 0Total Common Stock (incl Nonadmitted) 3,827 4,346 5,102 9,672 17,297Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 12.24 7.40 8.91 8.43 8.12Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 5,352 2,679 2,036

Municipal SecuritiesIssued States & Territories ($000) 9,217 12,151 1,004 1,460 1,710Issued Political Subdivisions ($000) 0 0 2,410 2,001 1,121Issued State Rev Obligations ($000) 0 0 9,728 11,572 12,630Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 48,295 48,295 46,890 45,302 188,782Common Stock 17,297 17,297 15,562 -- 50,156Preferred Stock 0 0 0 -- 0Total 65,592 65,592 62,452 45,302 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.43 1.28 1.35 1.35 1.38Bonds Rated 3-6 / C&S 17.94 12.51 18.45 19.04 17.20Class 5 and 6 Bonds / C&S 0.02 0.00 0.00 0.00 0.00Bonds/Invested Assets 73.30 78.60 79.50 74.11 66.41Common Stocks / C&S 23.18 22.83 24.68 43.56 68.86Unaff common stock/Invested Assets 11.70 10.62 9.94 15.60 23.79

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.08 0.00 0.00 0.00 0.001. New York 16,401 1. Med Prof Liab 40,753 Cash/Invested Assets 13.80 10.71 10.54 10.32 9.812. Florida 5,775 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Arizona 3,789 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Connecticut 3,057 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Texas 2,721 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 9,010 All Other 0 Other Investments/Invested Assets 1.16 0.06 0.02 -0.04 0.00Premiums & Cons due/Total Assets 13.66 13.45 11.07 10.74 9.43

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.00 0.00 0.23 0.34 0.27

Market Share Ratio 0.00 0.01 0.01 0.01 0.01 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR 66.02 30.01 23.19 15.02 15.28 All other admitted assets/Total Assets 17.09 18.30 16.89 15.04 11.53National DPW ($000) 23,013 30,001 33,162 36,078 40,753 Invested Assets/Total Assets 69.25 68.25 71.81 73.88 78.77Adjusted Loss Ratio 47.79 37.00 47.43 43.84 38.84 Investment Income/Total Assets 2.99 1.46 2.22 3.23 2.76

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 66.4% Preferred Stocks - 0.0%

Common Stocks - 23.8% Mortgage Loans - 0.0%

Other Invstmts - 9.8% 0.00 5.00 10.00 15.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

New York - 40.2% Florida - 14.2%

Arizona - 9.3% Connecticut - 7.5%

Texas - 6.7% All other - 22.1%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

CARE RRG Inc. (Washington, DC)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

2233 Wisconsin Avenue, NW NAIC Company Code : 11825 Total Assets 37,544 35,604 33,340 11,784 13,631Suite 310 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 4,303 4,154 4,307 4,802 4,678Washington, DC 20007-4104 Geographic Focus: Regional - Southern Quadrant Total Liabilities 33,241 31,451 29,033 6,981 8,952

NAIC Ownership Structure: Risk Retention Group Net Income 59 346 155 535 87Tax Identification Number : 52-2395338 Total Revenue 2,620 1,626 1,356 1,249 3,094

Direct Premiums Written 9,181 6,928 6,124 4,802 6,186Net Premiums Written 1,836 1,386 1,225 960 5,084

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 2,406 1,526 1,287 1,121 2,955

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 25,816 24,588 23,749 4,323 5,570Demotech Financial Strength Rating A 03/06/13 Affirm Loss & LAE Reserves/ NPE (%) 1,051.93 1,629.34 1,892.51 631.45 159.94S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 2.05 12.32 6.80 16.70 2.72Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.43 0.33 0.28 0.20 1.09Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Charles Halstead-Johnson Auditor Shores Tagman Butler & Co P.A.Phone : (802) 479-7801 Actuary Milliman Inc.Fax : (802) 223-3911 CEO --Email : cjohnson@riskservcos.com CFO --

President Daniel L. Hafendorfer

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.00 1.03 0.67 1.36 1.38Net Investment Income/Earned Premiums 11.63 7.18 5.59 13.28 2.74Return on Average Equity (C&S) 1.36 8.34 3.64 11.79 1.81Return on Avg Assets 0.15 0.92 0.44 3.73 0.70Loss and LAE Ratio 73.92 38.15 56.80 30.03 70.06Expense Ratio 40.92 38.38 27.33 16.11 17.59Loss Ratio 56.77 14.73 36.27 5.12 30.60Combined Ratio 114.84 76.53 84.13 46.15 87.65Operating Ratio 105.96 70.00 78.81 34.77 82.93Investment ratio 8.87 6.52 5.32 11.37 4.72

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 18.45 23.52 26.08 35.26 37.90Cash, Common & Liquid Bonds / Liabilities 29.47 39.08 38.41 138.48 127.48Cash & Short-Term Investments / C&S 142.55 178.11 175.78 51.26 72.53Liabilities / Liquid Assets (IRIS Ratio) 343.00 310.00 306.00 72.00 78.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 112.03 112.22 116.30 598.23 314.63Cash From Underwriting ($000) -90 600 -416 252 2,132Net Cash From Operations ($000) -189 948 -574 285 1,923Underwriting Cash Flow Ratio 95.10 172.78 66.91 126.15 201.70Operating Cash Flow Ratio 116.90 143.44 90.37 138.45 218.69Unassigned Funds / Total Assets 3.71 4.90 5.69 20.30 16.64

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 142 100 132NPW to Policyholders' Surplus 300 --- 28 20 109Change in Net Premiums Written 33 -33 -12 -22 429*Surplus Aid to Policyholders' Surplus 15 --- 12 12 6Two-Year Overall Operating Ratio 100 --- 74 59 70

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 0 7* 1 3* 1 3*

MSA: Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro)

Distribution Channel: Broker, Independent Agency

343.0310.0 306.0

72.0 78.0

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

114.8

76.584.1

46.1

87.6

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 0.7* 1.3* 1.3*

Loss Adjustment Expense Ratio 17.15 23.42 20.54 24.91 39.46 Gross Change in Policyholders' Surplus 50 -10 4 12 -3Net Commission Ratio 7.00 -32.12 -21.60 -73.45 1.38 Net Change in Adj Policyholders' Surplus 25 -10 4 12 -3Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 306* 72 78Tax, License & Fees Ratio 1.49 2.55 1.88 2.92 0.42 Agents' Bal to Policyholders' Surplus 40 --- 15 8 10Admin & Other Expense Ratio 32.42 67.95 47.05 86.65 15.80 1-Yr Resv Dev to Policyholders' Surplus 20 --- -2 -18 -9Gross Premiums Written ($000)3 9,181 6,928 6,124 4,802 6,186 2-Yr Resv Dev to Policyholders' Surplus 20 --- -11 -31 -26Loss & Loss Adj Expense ($000) 1,779 582 731 337 2,070 Est Curr Resv Defi/Policyholders' Surplus 25 --- -154 296* 546*Other Underwriting Exp Incurred ($000) 751 532 335 155 894 *Indicates an unusual value.Net Underwriting Gains ($000) -124 412 221 630 -9 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 20.00 20.00 20.00 20.00 82.18 complements of each ratio.Effective Tax Rate 34.00 32.32 46.51 29.57 30.96

Pre-Tax Operating Margin 3.43 31.48 21.37 60.64 4.20 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth -4.12 -5.17 -6.36 -64.66 15.67

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth -4.79 -5.38 -7.69 -75.95 28.23

Reinsurance Recoverable ex US Aff 23,978 21,443 21,894 19,091 14,334 Net Premiums Written Growth -38.90 -24.54 -11.60 -21.59 429.34Retention Ratio (NPW/GPW) (%)3 20.00 20.00 20.00 20.00 82.18 Pre-Tax Operating Income Growth -90.49 470.01 -43.38 161.30 -82.83Unauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 0.00 0.00 0.00 Net Income Growth -90.51 484.54 -55.25 244.90 -83.82Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 9.95 -4.76 -3.41 -81.80 28.84Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -38.90 -24.54 -11.60 -21.59 28.82Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 93.53 67.73 47.06 -25.42 -23.83

Capital & Surplus Five-year CAGR 43.10 32.26 13.50 5.81 1.97Admitted Assets Five-year CAGR 82.35 60.00 38.65 -19.04 -19.03

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 4,303 4,154 4,307 4,802 4,678 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 4,303 4,154 4,307 4,802 4,678 Combined NA NA NA NA NA ACL Risk Based Capital 1,465 1,326 1,296 1,089 933

Risk Based Capital Ratio (TAC/ACL RBC) 293.80 313.20 332.29 441.12 501.46

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 146.90 156.60 166.14 220.56 250.73

Change in Loss & LAE Resv / Reserves 9.95 -4.76 -3.41 -81.80 28.84 Realized Capital Gains (Losses) 0 0 0 2 -51 Yr Loss Reserve Dev / 1Y Prior C&S 6.39 -8.71 -2.29 -18.27 -9.02 Net Unrealized Capital Gains (Losses) 0 4 -2 -39 892 Yr Loss Reserve Dev / 2Y Prior C&S 5.75 -2.22 -11.20 -30.96 -25.58 Dividends to Stockholders 0 0 0 0 -300Loss and LAE Reserves / NPE 1,051.93 1,629.34 1,892.51 631.45 159.94 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 346.761 Yr Loss Reserve Development / NPE 11.26 -24.57 -7.38 -70.20 -14.65 Net Premiums Written / Avg C&S (%) 42.01 33.36 28.76 21.18 106.17IBNR/ Total Reserves 6.47 7.13 6.85 29.78 37.86 Liabilities / Capital & Surplus (%) 772.42 757.19 674.08 145.38 191.37Reserves/ Equity 599.88 591.95 551.40 90.02 119.07 Total Reins Recov Excl US Aff / C&S (%) 557.18 516.25 508.34 397.54 306.41

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

146.9 156.6 166.1

220.6250.7

0

1,000

2,000

3,000

4,000

5,000

6,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

20.0 20.0 20.0 20.0

82.2

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

CARE RRG Inc. (Washington, DC)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 100 2,717 1,905 6,259 6,459 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 9,181 6,928 6,124 4,802 6,186Common Stocks 3,456 0 0 947 1,560 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 9,181 6,928 6,124 4,802 6,186Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -7,345 -5,542 -4,899 -3,841 -1,102Occupied Properties 0 0 0 0 0 Net Premiums Written 1,836 1,386 1,225 960 5,084Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -570 -141 -62 -161 2,129Properties for Sale 0 0 0 0 0 Net Premiums Earned 2,406 1,526 1,287 1,121 2,955

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 6,135 7,398 7,571 2,462 3,393 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 9,690 10,115 9,475 9,667 11,412 Net Losses Paid - Commercial 618 482 443 287 449Premiums & Considerations Due 883 1,121 637 371 454 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 22,201 20,502 19,462 850 490 Net Losses Paid 618 482 443 287 449All Other Admitted Assets 4,770 3,866 3,764 895 1,274 Net LAE Paid 475 442 439 470 374Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 37,544 35,604 33,340 11,784 13,631 Change in Loss Reserves - Commercial 748 -257 24 -229 455

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves -63 -84 -174 -191 792

Unpaid Losses 16,958 15,943 15,987 2,965 3,419 Net Change in Loss and LAE Reserves 685 -341 -151 -420 1,247Unpaid Loss Adj Expenses 8,858 8,644 7,762 1,359 2,151 Losses and LAE Incurred 1,779 582 731 337 2,070

Loss & Loss Adj Exp Reserves 25,816 24,588 23,749 4,323 5,570 Other Underwriting Expense Incurred 751 532 335 155 894Unearned Premiums 4,238 3,535 3,223 484 2,613 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 1,611 1,888 1,021 1,010 238 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 927 748 520 619 531 Net Underwriting Gain (Loss) -124 412 221 630 -9Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 649 692 519 546 0 Total underwriting deductions 2,530 1,114 1,066 491 2,964

Total Liabilities 33,241 31,451 29,033 6,981 8,952

Income ($000)Total Capital and Surplus Net Investment Income 214 100 69 128 139

Common Capital Stock 1,000 1,000 1,000 1,000 1,000 Net Realized Capital Gains (Losses) 0 0 0 2 -5Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus 1,393 1,743 1,896 2,392 2,268 Income after cap gains (loss) before tax 90 512 290 759 125Other Including Gross Contributed 1,911 1,411 1,411 1,411 1,411 Federal Income Tax 31 165 135 224 39

Capital & Surplus 4,303 4,154 4,307 4,802 4,678 Net Income 59 346 155 535 87

Total Liabilities and C&S 37,544 35,604 33,340 11,784 13,631 Pre-tax Operating Income 90 512 290 757 130

Memo: Total Revenue 2,620 1,626 1,356 1,250 3,090Memo: Affiliated Investments ($000) Memo: Paid Expenses 1,075 1,155 1,166 87 1,125

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 205 4,892 3,580 6,259 6,459Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 214 100 69 128 139 Class 6 0 0 0 0 0R li d C it l G i 0 0 0 2 5Realized Capital Gains 0 0 0 2 -5Unrealized Capital Gains 0 4 -2 -39 89Total Cash & Investments 9,690 10,115 9,475 9,667 11,412Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 205 4,892 3,580 6,259 6,459Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 3,456 0 0 947 1,560Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 48.74 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 2.32 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 1,803 1,360

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 6,459 6,459 6,419 6,352 25,689Common Stock 1,560 1,560 1,538 -- 4,657Preferred Stock 0 0 0 -- 0Total 8,019 8,019 7,956 6,352 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.00 1.00 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 1.03 26.86 20.10 64.74 56.60Common Stocks / C&S 80.30 0.00 0.00 19.73 33.34Unaff common stock/Invested Assets 35.66 0.00 0.00 9.80 13.67

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Florida 1,297 1. Med Prof Liab 6,186 Cash/Invested Assets 63.31 73.14 79.90 25.46 29.732. New York 1,276 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. California 1,032 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Texas 553 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Kentucky 480 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 1,547 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 2.35 3.15 1.91 3.15 3.33

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 59.13 57.58 58.38 7.21 3.59

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA 0.49 -13.99 -22.20 -16.27 All other admitted assets/Total Assets 12.71 10.86 11.29 7.60 9.35National DPW ($000) 9,181 6,928 6,124 4,802 6,186 Invested Assets/Total Assets 25.81 28.41 28.42 82.04 83.73Adjusted Loss Ratio 44.92 18.28 35.09 4.82 -17.54 Investment Income/Total Assets 0.57 0.28 0.21 1.08 1.02

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 56.6% Preferred Stocks - 0.0%

Common Stocks - 13.7% Mortgage Loans - 0.0%

Other Invstmts - 29.7% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Florida - 21.0% New York - 20.6%

California - 16.7% Texas - 8.9%

Kentucky - 7.8% All other - 25.0%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Centurion Med Liab Prtctv RRG (Phoenix, AZ)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

2700 North Third Street NAIC Company Code : 11976 Total Assets 8,492 10,547 12,979 14,707 15,755Suite 3050 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 3,435 4,973 5,653 6,096 8,402Phoenix, AZ 85004-1229 Geographic Focus: Regional - Southern Quadrant Total Liabilities 5,058 5,574 7,325 8,611 7,353

NAIC Ownership Structure: Stock Company Net Income 146 1,420 505 816 2,924Tax Identification Number : 20-1145017 Total Revenue 2,781 3,816 4,311 4,055 4,043

Direct Premiums Written 3,172 3,825 4,399 4,099 3,751Net Premiums Written 3,038 3,712 4,337 3,538 3,636

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 2,592 3,599 4,082 3,778 3,782

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 3,315 3,507 5,457 6,516 4,717Demotech Financial Strength Rating A 03/08/13 Affirm Loss & LAE Reserves/ NPE (%) 125.24 107.01 106.54 162.36 176.20S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 24.93 57.29 12.10 19.58 58.82Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.88 0.75 0.77 0.58 0.43Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Gemma Agustin Tuanqui Auditor Shores Tagman Butler & Co P.A.Phone : (800) 226-0793 Actuary Cas Actuarial Consultants Inc.Fax : (941) 906-7538 CEO --Email : gtuanqui@pboa.com CFO --

President Vicente M. Juan

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 3.44 3.14 2.58 2.56 2.07Net Investment Income/Earned Premiums 6.24 5.85 5.27 7.81 7.19Return on Average Equity (C&S) 4.38 36.99 9.27 13.83 44.01Return on Avg Assets 1.81 14.89 4.34 5.84 18.96Loss and LAE Ratio 51.33 23.96 69.50 53.23 -18.79Expense Ratio 20.37 20.32 18.77 25.12 23.27Loss Ratio 27.56 23.50 52.26 42.52 -26.22Combined Ratio 71.71 44.28 88.27 78.35 4.48Operating Ratio 64.40 38.26 82.67 71.04 -2.43Investment ratio 7.31 6.03 5.60 7.32 6.92

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 19.47 28.46 19.31 18.56 71.68Cash, Common & Liquid Bonds / Liabilities 116.17 144.07 134.53 136.06 178.66Cash & Short-Term Investments / C&S 28.68 31.89 25.02 26.22 62.73Liabilities / Liquid Assets (IRIS Ratio) 85.00 69.00 74.00 73.00 56.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 125.75 162.02 138.27 148.69 219.82Cash From Underwriting ($000) 1,311 2,176 2,358 2,201 1,637Net Cash From Operations ($000) 1,052 2,068 1,453 2,232 1,713Underwriting Cash Flow Ratio 184.33 243.87 238.61 216.78 181.16Operating Cash Flow Ratio 213.74 265.76 305.93 228.98 192.35Unassigned Funds / Total Assets 9.83 22.50 23.53 23.77 36.83

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 78 67 45NPW to Policyholders' Surplus 300 --- 77 58 43Change in Net Premiums Written 33 -33 17 -18 3Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 62 77 34

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 2 6* 2 6* 2 1*

MSA: Phoenix-Mesa-Glendale, AZ (Metro)

Distribution Channel: Direct Response

85.0

69.074.0 73.0

56.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

71.7

44.3

88.378.4

4.50.005.00

10.0015.0020.0025.0030.0035.0040.0045.0050.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 2.6* 2.6* 2.1*

Loss Adjustment Expense Ratio 23.77 0.46 17.24 10.72 7.43 Gross Change in Policyholders' Surplus 50 -10 14 8 38Net Commission Ratio 8.18 9.21 9.21 11.51 10.35 Net Change in Adj Policyholders' Surplus 25 -10 14 8 38*Salaries & Benefits Ratio 0.00 3.64 3.20 4.65 5.12 Liabilities to Liquid Assets 100 --- 74 73 56Tax, License & Fees Ratio 2.55 1.82 1.58 2.17 1.46 Agents' Bal to Policyholders' Surplus 40 --- 4 3 1Admin & Other Expense Ratio 9.64 5.65 4.77 6.78 6.33 1-Yr Resv Dev to Policyholders' Surplus 20 --- -19 -11 -40Gross Premiums Written ($000)3 3,172 3,825 4,399 4,099 3,751 2-Yr Resv Dev to Policyholders' Surplus 20 --- -53 -35 -42Loss & Loss Adj Expense ($000) 1,331 862 2,837 2,011 -710 Est Curr Resv Defi/Policyholders' Surplus 25 --- -50 -55 -15Other Underwriting Exp Incurred ($000) 619 754 814 889 846 *Indicates an unusual value.Net Underwriting Gains ($000) 642 1,982 431 878 3,646 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 95.77 97.04 98.59 86.32 96.95 complements of each ratio.Effective Tax Rate 66.31 33.80 27.10 31.41 30.21

Pre-Tax Operating Margin 29.91 57.63 15.30 28.48 96.65 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 12.60 24.19 23.06 13.31 7.13

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 18.96 10.20 31.43 17.55 -14.61

Reinsurance Recoverable ex US Aff 128 200 293 332 402 Net Premiums Written Growth 34.05 22.18 16.85 -18.42 2.78Retention Ratio (NPW/GPW) (%)3 95.77 97.04 98.59 86.32 96.95 Pre-Tax Operating Income Growth 5.81 164.34 -70.01 75.07 238.43Unauthorized Net Recov. (ex US Aff) (%) 25.00 25.00 24.91 25.60 25.37 Net Income Growth -70.32 871.34 -64.42 61.44 258.49Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 17.04 5.80 55.58 19.40 -27.60Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth 39.98 20.58 15.01 -6.83 -8.49Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 111.68 85.77 29.87 18.91 11.58

Capital & Surplus Five-year CAGR 8.22 14.71 17.04 17.36 20.62Admitted Assets Five-year CAGR 32.49 30.79 23.28 18.25 15.87

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 3,435 4,973 5,653 6,096 8,402 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 3,435 4,973 5,653 6,096 8,402 Combined NA NA NA NA NA ACL Risk Based Capital 366 394 689 653 457

Risk Based Capital Ratio (TAC/ACL RBC) 938.02 1,262.29 821.04 933.09 1,840.50

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 469.01 631.15 410.52 466.54 920.25

Change in Loss & LAE Resv / Reserves 17.04 5.80 55.58 19.40 -27.60 Realized Capital Gains (Losses) -398 -54 33 35 2821 Yr Loss Reserve Dev / 1Y Prior C&S -52.34 -39.16 -18.58 -11.18 -40.44 Net Unrealized Capital Gains (Losses) -2 118 175 47 -1272 Yr Loss Reserve Dev / 2Y Prior C&S -55.78 -40.91 -53.01 -34.94 -41.82 Dividends to Stockholders 0 0 0 -420 -490Loss and LAE Reserves / NPE 125.24 107.01 106.54 162.36 176.20 Dividend Payout Ratio (%) 0.00 0.00 0.00 51.49 16.761 Yr Loss Reserve Development / NPE -66.44 -37.37 -22.64 -16.73 -65.18 Net Premiums Written / Avg C&S (%) 91.05 96.69 79.58 60.01 54.74IBNR/ Total Reserves 41.59 27.09 22.54 25.24 31.19 Liabilities / Capital & Surplus (%) 147.26 112.08 129.57 141.27 87.51Reserves/ Equity 96.52 70.52 96.52 106.89 56.14 Total Reins Recov Excl US Aff / C&S (%) 3.73 4.02 5.18 5.45 4.78

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

469.0

631.1

410.5466.5

920.3

01,0002,0003,0004,0005,0006,0007,0008,0009,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

95.897.0

98.6

86.3

96.9

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Centurion Med Liab Prtctv RRG (Phoenix, AZ)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 4,093 5,407 6,415 7,997 7,866 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 3,172 3,825 4,399 4,099 3,751Common Stocks 797 1,036 1,949 2,120 0 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 3,172 3,825 4,399 4,099 3,751Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -134 -113 -62 -561 -115Occupied Properties 0 0 0 0 0 Net Premiums Written 3,038 3,712 4,337 3,538 3,636Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 446 113 255 -240 -145Properties for Sale 0 0 0 0 0 Net Premiums Earned 2,592 3,599 4,082 3,778 3,782

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 985 1,586 1,414 1,598 5,271 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 5,876 8,030 9,779 11,716 13,136 Net Losses Paid - Commercial 423 232 370 396 487Premiums & Considerations Due 177 105 228 183 84 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 0 0 0 0 0 Net Losses Paid 423 232 370 396 487All Other Admitted Assets 2,439 2,412 2,972 2,808 2,534 Net LAE Paid 425 438 517 556 601Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 8,492 10,547 12,979 14,707 15,755 Change in Loss Reserves - Commercial 292 614 1,763 1,210 -1,478

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 191 -422 186 -151 -320

Unpaid Losses 1,756 2,370 4,133 5,343 3,865 Net Change in Loss and LAE Reserves 483 192 1,949 1,059 -1,798Unpaid Loss Adj Expenses 1,559 1,137 1,323 1,172 852 Losses and LAE Incurred 1,331 862 2,837 2,011 -710

Loss & Loss Adj Exp Reserves 3,315 3,507 5,457 6,516 4,717 Other Underwriting Expense Incurred 619 754 814 889 846Unearned Premiums 1,459 1,572 1,827 1,587 1,442 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 2 -93 -245 259 154 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 225 157 250 214 165 Net Underwriting Gain (Loss) 642 1,982 431 878 3,646Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 57 430 37 35 875 Total underwriting deductions 1,949 1,617 3,651 2,900 136

Total Liabilities 5,058 5,574 7,325 8,611 7,353

Income ($000)Total Capital and Surplus Net Investment Income 189 217 228 276 262

Common Capital Stock 600 600 600 600 600 Net Realized Capital Gains (Losses) -398 -54 33 35 282Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus 835 2,373 3,053 3,496 5,802 Income after cap gains (loss) before tax 434 2,145 693 1,189 4,190Other Including Gross Contributed 2,000 2,000 2,000 2,000 2,000 Federal Income Tax 288 725 188 374 1,266

Capital & Surplus 3,435 4,973 5,653 6,096 8,402 Net Income 146 1,420 505 816 2,924

Total Liabilities and C&S 8,492 10,547 12,979 14,707 15,755 Pre-tax Operating Income 832 2,199 660 1,155 3,908

Memo: Total Revenue 2,383 3,762 4,344 4,089 4,325Memo: Affiliated Investments ($000) Memo: Paid Expenses 1,156 1,299 1,372 1,539 1,584

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 4,093 5,407 6,492 7,997 7,866Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 189 217 228 276 262 Class 6 0 0 0 0 0R li d C it l G i 398 54 33 35 282Realized Capital Gains -398 -54 33 35 282Unrealized Capital Gains -2 118 175 47 -127Total Cash & Investments 5,876 8,030 9,779 11,716 13,136Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 4,093 5,407 6,492 7,997 7,866Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 797 1,036 1,949 2,120 0Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 637 698 774 597 685

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 1,919 0 0 0 783Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 1,537 2,424 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 7,866 7,866 7,475 7,218 30,425Common Stock 0 0 0 -- 0Preferred Stock 0 0 0 -- 0Total 7,866 7,866 7,475 7,218 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.00 1.00 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 69.67 67.34 65.61 68.26 59.88Common Stocks / C&S 23.22 20.84 34.48 34.79 0.00Unaff common stock/Invested Assets 13.57 12.91 19.93 18.10 0.00

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Texas 1,972 1. Med Prof Liab 3,751 Cash/Invested Assets 16.76 19.75 14.46 13.64 40.122. Arizona 1,661 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Michigan 119 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Alaska 0 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Alabama 0 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 0 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 2.09 1.00 1.76 1.24 0.54

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.00 0.00 0.00 0.00 0.00

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA 76.29 18.13 10.26 10.60 All other admitted assets/Total Assets 28.72 22.87 22.90 19.09 16.09National DPW ($000) 3,172 3,825 4,399 4,099 3,751 Invested Assets/Total Assets 69.19 76.13 75.34 79.66 83.38Adjusted Loss Ratio 27.99 22.23 50.76 48.23 -25.22 Investment Income/Total Assets 2.23 2.06 1.76 1.88 1.66

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 59.9% Preferred Stocks - 0.0%

Common Stocks - 0.0% Mortgage Loans - 0.0%

Other Invstmts - 40.1% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Texas - 52.6% Arizona - 44.3% Michigan - 3.2%

Alaska - 0.0% Alabama - 0.0% All other - 0.0%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Charitable Svc Prvdrs Recpl (Phoenix, AZ)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

15255 North 40th Street NAIC Company Code : 12167 Total Assets 1,948 2,458 3,257 3,521 3,779Suite 109 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 1,616 2,117 2,899 3,244 3,430Phoenix, AZ 85032-4638 Geographic Focus: Regional - Western Quadrant Total Liabilities 332 342 358 277 349

NAIC Ownership Structure: Risk Retention Group Net Income 274 714 683 579 573Tax Identification Number : 20-8095873 Total Revenue 819 1,124 1,116 985 958

Direct Premiums Written 1,334 1,349 1,327 1,338 1,088Net Premiums Written 773 1,093 1,048 916 898

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 773 1,093 1,048 916 898

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 252 314 325 206 210Demotech Financial Strength Rating A 03/12/13 Affirm Loss & LAE Reserves/ NPE (%) 35.64 23.27 32.07 46.71 26.78S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 24.90 37.50 26.87 18.55 16.34Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.48 0.52 0.36 0.28 0.26Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Richard P. Marshall Auditor Brown Smith Wallace LLCPhone : (602) 952-9532 Actuary Milliman Inc.Fax : (602) 952-8789 CEO David Barger EllisEmail : Dick.Marshall@rqih.com CFO Matthew Luger

President David Barger Ellis

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.14 1.29 2.19 1.92 1.65Net Investment Income/Earned Premiums 5.85 2.91 6.42 7.53 6.79Return on Average Equity (C&S) 18.35 38.20 27.39 20.01 17.65Return on Avg Assets 11.58 27.15 20.65 15.40 14.51Loss and LAE Ratio 11.48 9.68 5.17 15.01 4.06Expense Ratio 46.28 29.11 37.30 33.99 43.58Loss Ratio -4.15 9.30 0.96 9.20 1.36Combined Ratio 57.76 38.79 42.47 49.00 47.64Operating Ratio 51.91 35.89 36.05 41.47 40.85Investment ratio 5.85 2.91 6.42 7.53 6.79

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 96.30 55.38 41.13 69.80 49.44Cash, Common & Liquid Bonds / Liabilities 584.25 664.46 836.86 NM 990.34Cash & Short-Term Investments / C&S 19.76 8.93 5.08 5.95 5.03Liabilities / Liquid Assets (IRIS Ratio) 18.00 15.00 12.00 8.00 10.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 773.49 764.50 958.58 1,714.21 1,696.73Cash From Underwriting ($000) 314 572 559 538 245Net Cash From Operations ($000) 362 632 648 651 333Underwriting Cash Flow Ratio 167.68 262.09 228.17 196.59 155.89Operating Cash Flow Ratio 167.68 254.38 228.17 196.59 160.25Unassigned Funds / Total Assets 52.91 72.72 78.90 82.80 82.06

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 46 41 32NPW to Policyholders' Surplus 300 --- 36 28 26Change in Net Premiums Written 33 -33 -4 -13 -2Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 36 39 41

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 2 6* 2 2* 1 8*

MSA: Phoenix-Mesa-Glendale, AZ (Metro)

Distribution Channel: Direct Response

18.0

15.0

12.0

8.0

10.0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

57.8

38.842.5

49.0 47.6

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 2.6* 2.2* 1.8*

Loss Adjustment Expense Ratio 15.63 0.38 4.22 5.81 2.69 Gross Change in Policyholders' Surplus 50 -10 37 12 6Net Commission Ratio 0.00 0.00 0.00 0.00 -0.13 Net Change in Adj Policyholders' Surplus 25 -10 37* 12 6Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 12 8 10Tax, License & Fees Ratio 2.05 1.70 5.35 1.72 1.57 Agents' Bal to Policyholders' Surplus 40 --- 0 0 0Admin & Other Expense Ratio 44.23 27.41 31.94 32.27 42.14 1-Yr Resv Dev to Policyholders' Surplus 20 --- -7 -1 -6Gross Premiums Written ($000)3 1,334 1,349 1,327 1,338 1,088 2-Yr Resv Dev to Policyholders' Surplus 20 --- -13 -4 -2Loss & Loss Adj Expense ($000) 89 106 54 138 36 Est Curr Resv Defi/Policyholders' Surplus 25 --- -7 1 -2Other Underwriting Exp Incurred ($000) 358 318 391 311 391 *Indicates an unusual value.Net Underwriting Gains ($000) 327 669 603 467 470 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 57.99 81.00 78.98 68.49 82.50 complements of each ratio.Effective Tax Rate 0.00 0.00 0.00 0.00 3.38

Pre-Tax Operating Margin 45.43 62.30 60.09 54.43 55.39 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 15.02 26.22 32.46 8.11 7.35

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth -6.74 2.99 4.81 -22.73 26.18

Reinsurance Recoverable ex US Aff 159 132 120 148 107 Net Premiums Written Growth -9.66 41.28 -4.04 -12.59 -2.05Retention Ratio (NPW/GPW) (%)3 57.99 81.00 78.98 68.49 82.50 Pre-Tax Operating Income Growth 4.81 88.34 -4.28 -20.01 -1.01Unauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 0.00 0.00 0.00 Net Income Growth -24.62 160.41 -4.24 -15.34 -0.89Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth -18.22 24.81 3.48 -36.70 2.07Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -3.41 1.14 -1.59 0.80 -18.69Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR -28.74 -23.30 -6.28 1.14 -0.37

Capital & Surplus Five-year CAGR 30.22 30.38 40.23 27.57 20.72Admitted Assets Five-year CAGR 1.32 5.87 25.90 23.58 17.42

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 1,616 2,117 2,899 3,244 3,430 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 1,616 2,117 2,899 3,244 3,430 Combined NA NA NA NA NA ACL Risk Based Capital 136 110 154 131 166

Risk Based Capital Ratio (TAC/ACL RBC) 1,185.73 1,917.71 1,878.52 2,485.35 2,069.33

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 592.87 958.85 939.26 1,242.68 1,034.66

Change in Loss & LAE Resv / Reserves -18.22 24.81 3.48 -36.70 2.07 Realized Capital Gains (Losses) -98 13 13 42 631 Yr Loss Reserve Dev / 1Y Prior C&S -11.14 -12.68 -6.76 -0.93 -5.52 Net Unrealized Capital Gains (Losses) 3 44 98 57 482 Yr Loss Reserve Dev / 2Y Prior C&S 0.52 -12.03 -12.68 -3.87 -2.13 Dividends to Stockholders 0 0 0 -290 -324Loss and LAE Reserves / NPE 35.64 23.27 32.07 46.71 26.78 Dividend Payout Ratio (%) 0.00 0.00 0.00 50.10 56.571 Yr Loss Reserve Development / NPE -19.27 -18.76 -13.64 -2.95 -19.94 Net Premiums Written / Avg C&S (%) 51.78 58.49 42.02 31.70 27.62IBNR/ Total Reserves 53.86 40.38 43.17 65.78 57.89 Liabilities / Capital & Surplus (%) 20.52 16.13 12.35 8.53 10.17Reserves/ Equity 15.57 14.84 11.21 6.34 6.12 Total Reins Recov Excl US Aff / C&S (%) 9.84 6.24 4.14 4.56 3.12

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

592.9

958.9 939.3

1,242.7

1,034.7

0500

1,0001,5002,0002,5003,0003,5004,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

58.0

81.0 79.068.5

82.5

0200400600800

1,0001,2001,4001,600

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Charitable Svc Prvdrs Recpl (Phoenix, AZ)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 1,265 1,737 2,386 2,512 2,605 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 1,334 1,349 1,327 1,338 1,088Common Stocks 203 344 462 674 679 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 1,334 1,349 1,327 1,338 1,088Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -560 -256 -279 -422 -190Occupied Properties 0 0 0 0 0 Net Premiums Written 773 1,093 1,048 916 898Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 0 0 0 0 0Properties for Sale 0 0 0 0 0 Net Premiums Earned 773 1,093 1,048 916 898

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 319 189 147 193 173 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 1,788 2,269 2,996 3,379 3,456 Net Losses Paid - Commercial 55 12 1 195 1Premiums & Considerations Due 0 0 0 0 0 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 0 162 215 56 250 Net Losses Paid 55 12 1 195 1All Other Admitted Assets 160 27 46 86 73 Net LAE Paid 89 31 43 62 31Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 1,948 2,458 3,257 3,521 3,779 Change in Loss Reserves - Commercial -87 89 9 -111 11

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 31 -27 1 -8 -7

Unpaid Losses 148 237 246 135 147 Net Change in Loss and LAE Reserves -56 62 11 -119 4Unpaid Loss Adj Expenses 104 77 79 70 63 Losses and LAE Incurred 89 106 54 138 36

Loss & Loss Adj Exp Reserves 252 314 325 206 210 Other Underwriting Expense Incurred 358 318 391 311 391Unearned Premiums 0 0 0 0 0 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 5 0 0 0 0 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 17 25 23 53 19 Net Underwriting Gain (Loss) 327 669 603 467 470Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 58 2 10 17 120 Total underwriting deductions 447 424 445 449 428

Total Liabilities 332 342 358 277 349

Income ($000)Total Capital and Surplus Net Investment Income 45 32 67 69 61

Common Capital Stock 0 0 0 0 0 Net Realized Capital Gains (Losses) -98 13 13 42 63Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 381 125 125 125 125 All Other Income 0 0 0 0 0Unassigned Surplus 1,031 1,788 2,570 2,915 3,101 Income after cap gains (loss) before tax 274 714 683 579 593Other Including Gross Contributed 204 204 204 204 204 Federal Income Tax 0 0 0 0 20

Capital & Surplus 1,616 2,117 2,899 3,244 3,430 Net Income 274 714 683 579 573

Total Liabilities and C&S 1,948 2,458 3,257 3,521 3,779 Pre-tax Operating Income 372 700 670 536 531

Memo: Total Revenue 721 1,137 1,129 1,028 1,021Memo: Affiliated Investments ($000) Memo: Paid Expenses 468 343 436 343 458

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 1,415 1,737 2,334 2,455 2,463Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 52 57 142All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 45 32 67 69 61 Class 6 0 0 0 0 0R li d C it l G i 98 13 13 42 63Realized Capital Gains -98 13 13 42 63Unrealized Capital Gains 3 44 98 57 48Total Cash & Investments 1,788 2,269 2,996 3,379 3,456Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 1,415 1,737 2,386 2,512 2,605Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 203 344 462 674 679Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 537 0

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 237Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 2,605 2,605 2,488 2,314 10,011Common Stock 679 679 599 -- 1,957Preferred Stock 0 0 0 -- 0Total 3,284 3,284 3,087 2,314 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.00 1.02 1.02 1.05Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 70.78 76.53 79.65 74.33 75.36Common Stocks / C&S 12.56 16.23 15.95 20.79 19.80Unaff common stock/Invested Assets 11.36 15.14 15.44 19.96 19.65

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Arizona 707 1. Med Prof Liab 1,088 Cash/Invested Assets 17.86 8.33 4.91 5.71 4.992. Colorado 381 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Alaska 0 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Alabama 0 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Arkansas 0 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 0 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 0.00 0.00 0.00 0.00 0.00

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.00 6.60 6.60 1.59 6.62

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA 0.68 174.09 0.45 -4.65 All other admitted assets/Total Assets 8.22 1.10 1.41 2.43 1.93National DPW ($000) 1,334 1,349 1,327 1,338 1,088 Invested Assets/Total Assets 91.78 92.31 91.99 95.98 91.45Adjusted Loss Ratio 18.95 6.04 0.13 14.49 0.45 Investment Income/Total Assets 2.32 1.29 2.07 1.96 1.61

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 75.4% Preferred Stocks - 0.0%

Common Stocks - 19.7% Mortgage Loans - 0.0%

Other Invstmts - 5.0% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Arizona - 65.0% Colorado - 35.0%

Alaska - 0.0% Alabama - 0.0%

Arkansas - 0.0% All other - 0.0%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Cherokee Grte Co. Inc. A RRG (Scottsdale, AZ)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

18835 North Thompson Peak Parkway NAIC Company Code : 14388 Total Assets NA NA NA NA 4,775Suite 220 Business Focus : P&C Minimum NPW Policyholder Surplus NA NA NA NA 1,512Scottsdale, AZ 85255-6255 Geographic Focus: Geography Minimum NPW Total Liabilities NA NA NA NA 3,263

NAIC Ownership Structure: Stock Company Net Income NA NA NA NA -133Tax Identification Number : 45-5591447 Total Revenue NA NA NA NA 937

Direct Premiums Written NA NA NA NA 3,964Net Premiums Written NA NA NA NA 2,806

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned NA NA NA NA 937

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves NA NA NA NA 710Demotech Financial Strength Rating A 03/06/13 Affirm Loss & LAE Reserves/ NPE (%) NA NA NA NA NAS&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) NA NA NA NA NAMoody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 NA NA NA NA 1.86Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Andrew Scott Marson Auditor --Phone : (480) 682-4983 Actuary --Fax : (480) 471-8160 CEO --Email : andrew.marson@strategicrisks.com CFO --

President Michael Walter Gregory

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets NA NA NA NA NANet Investment Income/Earned Premiums NA NA NA NA 0.02Return on Average Equity (C&S) NA NA NA NA NAReturn on Avg Assets NA NA NA NA NALoss and LAE Ratio NA NA NA NA 75.91Expense Ratio NA NA NA NA 7.66Loss Ratio NA NA NA NA 37.12Combined Ratio NA NA NA NA 83.57Operating Ratio NA NA NA NA 83.52Investment ratio NA NA NA NA 0.06

Policyholder Dividend Ratio NA NA NA NA 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities NA NA NA NA 34.18Cash, Common & Liquid Bonds / Liabilities NA NA NA NA 79.93Cash & Short-Term Investments / C&S NA NA NA NA 73.78Liabilities / Liquid Assets (IRIS Ratio) NA NA NA NA 172.00Affiliated Investments / Capital & Surplus NA NA NA NA 0.00Reserve coverage2 NA NA NA NA 86.76Cash From Underwriting ($000) NA NA NA NA 691Net Cash From Operations ($000) NA NA NA NA 540Underwriting Cash Flow Ratio NA NA NA NA 880.13Operating Cash Flow Ratio NA NA NA NA 1,049.38Unassigned Funds / Total Assets NA NA NA NA 0.25

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- NA NA 262NPW to Policyholders' Surplus 300 --- NA NA 186Change in Net Premiums Written 33 -33 NA NA NASurplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 0 0 NA

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 NA NA NA

MSA: Phoenix-Mesa-Glendale, AZ (Metro)

Distribution Channel: --

172.0

0

1,000

2,000

3,000

4,000

5,000

6,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

83.6

0.000.100.200.300.400.500.600.700.800.901.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 NA NA NA

Loss Adjustment Expense Ratio NA NA NA NA 38.79 Gross Change in Policyholders' Surplus 50 -10 NA NA 999*Net Commission Ratio NA NA NA NA 0.83 Net Change in Adj Policyholders' Surplus 25 -10 NA NA 999*Salaries & Benefits Ratio NA NA NA NA 0.00 Liabilities to Liquid Assets 100 --- NA NA 172*Tax, License & Fees Ratio NA NA NA NA 1.87 Agents' Bal to Policyholders' Surplus 40 --- NA NA 171*Admin & Other Expense Ratio NA NA NA NA 4.96 1-Yr Resv Dev to Policyholders' Surplus 20 --- NA NA 0Gross Premiums Written ($000)3 NA NA NA NA 3,964 2-Yr Resv Dev to Policyholders' Surplus 20 --- NA NA NALoss & Loss Adj Expense ($000) NA NA NA NA 711 Est Curr Resv Defi/Policyholders' Surplus 25 --- NA NA NAOther Underwriting Exp Incurred ($000) NA NA NA NA 215 *Indicates an unusual value.Net Underwriting Gains ($000) NA NA NA NA 11 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio NA NA NA NA 70.78 complements of each ratio.Effective Tax Rate NA NA NA NA NM

Pre-Tax Operating Margin NA NA NA NA 1.19 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth NA NA NA NA NA

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth NA NA NA NA NA

Reinsurance Recoverable ex US Aff NA NA NA NA 345 Net Premiums Written Growth NA NA NA NA NARetention Ratio (NPW/GPW) (%)3 NA NA NA NA 70.78 Pre-Tax Operating Income Growth NA NA NA NA NAUnauthorized Net Recov. (ex US Aff) (%) NA NA NA NA 0.00 Net Income Growth NA NA NA NA NANonaffiliated Reins Assumed / GPW (%) NA NA NA NA 0.00 Loss & Loss Adj Exp Reserves Growth NA NA NA NA NAReinsurance Payable on Losses, LAE NA NA NA NA 0 Direct Premiums Written Growth NA NA NA NA NAReinsurance on Known Case Reserves NA NA NA NA 0 Total Liabilities Five-year CAGR NA NA NA NA NA

Capital & Surplus Five-year CAGR NA NA NA NA NAAdmitted Assets Five-year CAGR NA NA NA NA NA

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus NA NA NA NA 1,512 Environmental NA NA NA NA NA RBC - Total Adjusted Capital NA NA NA NA 1,512 Combined NA NA NA NA NA ACL Risk Based Capital NA NA NA NA 157

Risk Based Capital Ratio (TAC/ACL RBC) NA NA NA NA 964.68

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) NA NA NA NA 482.34

Change in Loss & LAE Resv / Reserves NA NA NA NA NA Realized Capital Gains (Losses) NA NA NA NA 01 Yr Loss Reserve Dev / 1Y Prior C&S NA NA NA NA NA Net Unrealized Capital Gains (Losses) NA NA NA NA 02 Yr Loss Reserve Dev / 2Y Prior C&S NA NA NA NA 0.00 Dividends to Stockholders NA NA NA NA 0Loss and LAE Reserves / NPE NA NA NA NA NA Dividend Payout Ratio (%) NA NA NA NA 0.001 Yr Loss Reserve Development / NPE NA NA NA NA 0.00 Net Premiums Written / Avg C&S (%) NA NA NA NA NAIBNR/ Total Reserves NA NA NA NA 36.24 Liabilities / Capital & Surplus (%) NA NA NA NA 215.83Reserves/ Equity NA NA NA NA 46.96 Total Reins Recov Excl US Aff / C&S (%) NA NA NA NA 22.82

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

482.3

0200400600800

1,0001,2001,4001,600

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

70.8

0500

1,0001,5002,0002,5003,0003,5004,0004,500

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Cherokee Grte Co. Inc. A RRG (Scottsdale, AZ)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds NA NA NA NA 411 Personal P&C Direct Premiums NA NA NA NA 0Preferred Stocks NA NA NA NA 0 Commercial P&C Direct Premiums NA NA NA NA 3,964Common Stocks NA NA NA NA 366 Accident & Health Direct Premiums NA NA NA NA 0

First Lien Real Estate Loans NA NA NA NA 0 Direct Premiums Written NA NA NA NA 3,964Real Estate Loans Less First Liens NA NA NA NA 0

Total Mortgage Loans NA NA NA NA 0 Net Reinsurance Premiums5 NA NA NA NA -1,158Occupied Properties NA NA NA NA 0 Net Premiums Written NA NA NA NA 2,806Income Generating Properties NA NA NA NA 0 Change in U/E Premiums Reserve NA NA NA NA 1,869Properties for Sale NA NA NA NA 0 Net Premiums Earned NA NA NA NA 937

Total Real Estate NA NA NA NA 0 Net Adm Cash,Cash Equi, Short-Term Inv NA NA NA NA 1,115 Underwriting Deductions ($000)Other Investments NA NA NA NA 0 Net Losses Paid - Personal NA NA NA NA 0Subtotals, Cash & Invested Assets NA NA NA NA 1,893 Net Losses Paid - Commercial NA NA NA NA 0Premiums & Considerations Due NA NA NA NA 2,582 Net Losses Paid - A&H NA NA NA NA 0Reinsurance Recoverable NA NA NA NA 0 Net Losses Paid NA NA NA NA 0All Other Admitted Assets NA NA NA NA 300 Net LAE Paid NA NA NA NA 363Separate Account Assets NA NA NA NA 0 Change in Loss Reserves - Personal NA NA NA NA 0Total Net Admitted Assets NA NA NA NA 4,775 Change in Loss Reserves - Commercial NA NA NA NA 348

Change in Loss Reserves - A&H NA NA NA NA 0Liabilities Change in LAE Reserves NA NA NA NA 0

Unpaid Losses NA NA NA NA 348 Net Change in Loss and LAE Reserves NA NA NA NA 348Unpaid Loss Adj Expenses NA NA NA NA 362 Losses and LAE Incurred NA NA NA NA 711

Loss & Loss Adj Exp Reserves NA NA NA NA 710 Other Underwriting Expense Incurred NA NA NA NA 215Unearned Premiums NA NA NA NA 1,869 Other Underwriting Deductions NA NA NA NA 0Total Reinsurance Liabilities NA NA NA NA 557 Net Income Protected Cells NA NA NA NA 0Commissions, Other Exp & Taxes NA NA NA NA 128 Net Underwriting Gain (Loss) NA NA NA NA 11Payable to Parent, Subs & Affiliates NA NA NA NA 0 Policyholder Dividends (PHD) NA NA NA NA 0Other Liabilities NA NA NA NA 0 Total underwriting deductions NA NA NA NA 926

Total Liabilities NA NA NA NA 3,263

Income ($000)Total Capital and Surplus Net Investment Income NA NA NA NA 1

Common Capital Stock NA NA NA NA 1,500 Net Realized Capital Gains (Losses) NA NA NA NA 0Preferred Capital Stock NA NA NA NA 0 Finance Service Charges NA NA NA NA 0Surplus Notes NA NA NA NA 0 All Other Income NA NA NA NA 0Unassigned Surplus NA NA NA NA 12 Income after cap gains (loss) before tax NA NA NA NA 11Other Including Gross Contributed NA NA NA NA 0 Federal Income Tax NA NA NA NA 144

Capital & Surplus NA NA NA NA 1,512 Net Income NA NA NA NA -133

Total Liabilities and C&S NA NA NA NA 4,775 Pre-tax Operating Income NA NA NA NA 11

Memo: Total Revenue NA NA NA NA 937Memo: Affiliated Investments ($000) Memo: Paid Expenses NA NA NA NA 578

Bonds NA NA NA NA 0

Preferred Stocks NA NA NA NA 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks NA NA NA NA 0 Investment GradeMortgage Loans NA NA NA NA 0 Class 1 NA NA NA NA 1,127Cash & Short Term Investments NA NA NA NA 0 Class 2 NA NA NA NA 0All Other Investments NA NA NA NA 0 Non - Investment Grade

Total Affiliated Investments NA NA NA NA 0 Class 3 NA NA NA NA 0Class 4 NA NA NA NA 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 NA NA NA NA 0

Net Investment Income NA NA NA NA 1 Class 6 NA NA NA NA 0R li d C it l G i NA NA NA NA 0Realized Capital Gains NA NA NA NA 0Unrealized Capital Gains NA NA NA NA 0Total Cash & Investments NA NA NA NA 1,893Affiliated Cash & Investments NA NA NA NA 0Total Bonds (incl Short-Term) NA NA NA NA 1,127Total Preferred Stock (incl Nonadmitted) NA NA NA NA 0Total Common Stock (incl Nonadmitted) NA NA NA NA 366Total Mortgage Loans (incl Nonadmitted) NA NA NA NA 0Total Real Estate (incl Nonadmitted) NA NA NA NA 0

Privately Placed Bonds/Total Bonds (%) NA NA NA NA 0.00Privately Placed Bonds / C&S (%) NA NA NA NA 0.00Bonds Rated 3-6 / Total Bonds (%) NA NA NA NA 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) NA NA NA NA 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 NA 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 NA 0

Municipal SecuritiesIssued States & Territories ($000) NA NA NA NA 0Issued Political Subdivisions ($000) NA NA NA NA 0Issued State Rev Obligations ($000) NA NA NA NA 0Issued Industrial Development ($000) NA NA NA NA 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 411 411 413 400 1,636Common Stock 366 366 365 -- 1,097Preferred Stock 0 0 0 -- 0Total 777 777 778 400 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) NA NA NA NA 1.00Bonds Rated 3-6 / C&S NA NA NA NA 0.00Class 5 and 6 Bonds / C&S NA NA NA NA 0.00Bonds/Invested Assets NA NA NA NA 21.74Common Stocks / C&S NA NA NA NA 24.19Unaff common stock/Invested Assets NA NA NA NA 19.33

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S NA NA NA NA 0.001. Tennessee 478 1. Med Prof Liab 3,964 Cash/Invested Assets NA NA NA NA 58.942. New Jersey 398 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S NA NA NA NA 0.003. Pennsylvania 350 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Texas 329 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets NA NA NA NA 0.005. New Mexico 304 5. Comm'l Multi Prl 0 Real Estate/Invested Assets NA NA NA NA 0.00

All Other 2,106 All Other 0 Other Investments/Invested Assets NA NA NA NA 0.00Premiums & Cons due/Total Assets NA NA NA NA 54.08

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets NA NA NA NA 0.00

Market Share Ratio NA NA NA NA 0.00 Rec from parent,sub or aff./Total Assets NA NA NA NA 0.00DPW 5 Yr CAGR NA NA NA NA NA All other admitted assets/Total Assets NA NA NA NA 6.28National DPW ($000) NA NA NA NA 3,964 Invested Assets/Total Assets NA NA NA NA 39.63Adjusted Loss Ratio NA NA NA NA 31.39 Investment Income/Total Assets NA NA NA NA 0.01

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 21.7% Preferred Stocks - 0.0%

Common Stocks - 19.3% Mortgage Loans - 0.0%

Other Invstmts - 58.9% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Tennessee - 12.0% New Jersey - 10.1%

Pennsylvania - 8.8% Texas - 8.3%

New Mexico - 7.7% All other - 53.1%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Cnsmr Specialties Ins Co (RRG) (Barre, VT)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

2386 Airport Road NAIC Company Code : 10075 Total Assets 6,987 6,772 6,252 5,674 5,365Barre, VT 05641-8629 Business Focus : P&C Minimum NPW Policyholder Surplus 3,580 3,643 3,589 3,405 3,373

Geographic Focus: Geography Minimum NPW Total Liabilities 3,406 3,129 2,664 2,269 1,992NAIC Ownership Structure: Risk Retention Group Net Income -60 -187 13 -64 15Tax Identification Number : 03-0310577 Total Revenue 1,211 831 821 685 547

Direct Premiums Written 2,091 1,522 1,326 1,166 944Net Premiums Written 953 640 616 561 405

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 1,004 677 679 602 496

AM Best Financial Strength Rating B 04/03/12 -- Not Covered by SNL Loss & Loss Adj Exp Reserves 2,717 2,450 2,065 1,820 1,641Demotech Financial Strength Rating A 03/29/13 Affirm Loss & LAE Reserves/ NPE (%) 268.76 380.31 368.61 347.05 360.71S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) -0.27 -5.39 -1.39 -7.21 -3.90Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.27 0.18 0.17 0.16 0.12Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Paula A. French Auditor Johnson Lambert LLPPhone : (802) 371-2321 Actuary Financial Risk Analysts LLCFax : (802) 229-6280 CEO --Email : pfrench@usarisk.com CFO --

President D. Christopher Cathcart

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 3.12 2.54 2.34 1.49 1.09Net Investment Income/Earned Premiums 21.81 24.05 23.09 14.80 12.53Return on Average Equity (C&S) -1.54 -5.31 0.36 -1.84 0.44Return on Avg Assets -0.82 -2.74 0.19 -1.05 0.27Loss and LAE Ratio 56.11 74.84 45.50 60.07 29.08Expense Ratio 69.16 80.27 91.28 102.30 131.91Loss Ratio 29.30 -3.61 17.09 -50.18 22.51Combined Ratio 125.27 155.11 136.78 162.37 160.99Operating Ratio 104.56 132.36 115.83 148.58 150.78Investment ratio 20.71 22.75 20.95 13.79 10.22

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 51.60 47.92 53.40 67.35 66.76Cash, Common & Liquid Bonds / Liabilities 224.91 227.85 261.92 277.99 272.92Cash & Short-Term Investments / C&S 49.10 41.15 39.64 44.87 39.43Liabilities / Liquid Assets (IRIS Ratio) 53.00 53.00 46.00 45.00 45.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 265.55 499.24 344.04 364.60 377.08Cash From Underwriting ($000) 127 -960 -418 -833 -780Net Cash From Operations ($000) 326 -648 -143 -696 -697Underwriting Cash Flow Ratio 113.80 41.25 60.06 41.83 34.91Operating Cash Flow Ratio 115.10 32.05 50.04 41.83 34.91Unassigned Funds / Total Assets 41.03 44.44 48.96 52.93 55.90

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 37 34 28NPW to Policyholders' Surplus 300 --- 17 16 12Change in Net Premiums Written 33 -33 -4 -9 -28Surplus Aid to Policyholders' Surplus 15 --- 1 2 2Two-Year Overall Operating Ratio 100 --- 124* 131* 149*

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 2 5* 1 5* 1 1*

MSA: Barre, VT (Micro)

Distribution Channel: Direct Response, General Agnt/Managing General Agnt, Independent Agency

53.0 53.0

46.045.0 45.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

125.3

155.1

136.8

162.4 161.0

-6.00-5.00-4.00-3.00-2.00-1.000.001.002.003.004.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 2.5* 1.5* 1.1*

Loss Adjustment Expense Ratio 26.81 78.44 28.41 110.25 6.58 Gross Change in Policyholders' Surplus 50 -10 -2 -5 -1Net Commission Ratio 9.41 8.38 18.07 18.16 20.15 Net Change in Adj Policyholders' Surplus 25 -10 1 -2 0Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 46 45 45Tax, License & Fees Ratio 2.99 3.84 4.09 14.18 10.65 Agents' Bal to Policyholders' Surplus 40 --- 3 2 2Admin & Other Expense Ratio 56.75 68.05 69.12 69.96 101.11 1-Yr Resv Dev to Policyholders' Surplus 20 --- -11 -12 -5Gross Premiums Written ($000)3 2,091 1,522 1,326 1,166 944 2-Yr Resv Dev to Policyholders' Surplus 20 --- -7 -19 -10Loss & Loss Adj Expense ($000) 563 506 309 362 144 Est Curr Resv Defi/Policyholders' Surplus 25 --- -6 -9 -10Other Underwriting Exp Incurred ($000) 659 514 562 574 534 *Indicates an unusual value.Net Underwriting Gains ($000) -219 -344 -192 -334 -182 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 45.58 42.06 46.41 48.13 42.87 complements of each ratio.Effective Tax Rate NM NM 58.78 NM -3.79

Pre-Tax Operating Margin -0.89 -22.83 -6.09 -36.59 -23.99 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth -3.98 -3.07 -7.68 -9.25 -5.45

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 7.11 -8.15 -14.87 -14.83 -12.19

Reinsurance Recoverable ex US Aff 2,034 8,357 2,565 2,734 2,604 Net Premiums Written Growth -16.45 -32.84 -3.83 -8.86 -27.89Retention Ratio (NPW/GPW) (%)3 45.58 42.06 46.41 48.13 42.87 Pre-Tax Operating Income Growth NM NM NM NM NMUnauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 0.00 0.00 0.00 Net Income Growth NM NM NM NM NMNonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 7.60 -9.83 -15.70 -11.86 -9.87Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -14.04 -27.22 -12.84 -12.11 -19.05Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 4.61 3.61 -1.38 -6.24 -8.93

Capital & Surplus Five-year CAGR -1.83 -1.52 -0.98 -2.83 -3.81Admitted Assets Five-year CAGR 1.01 0.65 -1.15 -4.28 -5.91

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 3,580 3,643 3,589 3,405 3,373 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 3,577 3,643 3,589 3,405 3,373 Combined NA NA NA NA NA ACL Risk Based Capital 416 570 393 388 363

Risk Based Capital Ratio (TAC/ACL RBC) 860.82 639.69 912.25 877.33 928.65

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 430.41 319.85 456.13 438.67 464.32

Change in Loss & LAE Resv / Reserves 7.60 -9.83 -15.70 -11.86 -9.87 Realized Capital Gains (Losses) -48 -134 81 119 1461 Yr Loss Reserve Dev / 1Y Prior C&S -9.03 -9.44 -11.25 -11.93 -4.79 Net Unrealized Capital Gains (Losses) -408 297 25 6 -422 Yr Loss Reserve Dev / 2Y Prior C&S -3.30 -9.90 -7.15 -18.99 -10.14 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 268.76 380.31 368.61 347.05 360.71 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE -36.87 -49.95 -60.43 -71.11 -32.86 Net Premiums Written / Avg C&S (%) 24.31 18.19 17.18 16.13 12.02IBNR/ Total Reserves 47.08 40.62 45.30 19.52 23.29 Liabilities / Capital & Surplus (%) 95.15 85.88 74.23 66.62 59.07Reserves/ Equity 75.89 67.25 57.55 53.46 48.65 Total Reins Recov Excl US Aff / C&S (%) 56.81 229.38 71.48 80.29 77.21

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

430.4

319.8

456.1 438.7464.3

0500

1,0001,5002,0002,5003,0003,5004,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

45.6

42.1

46.4

48.1

42.9

0

500

1,000

1,500

2,000

2,500

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Cnsmr Specialties Ins Co (RRG) (Barre, VT)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 3,202 2,888 3,218 2,608 2,497 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 2,091 1,522 1,326 1,166 944Common Stocks 1,408 1,535 1,095 884 567 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 2,091 1,522 1,326 1,166 944Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -1,138 -882 -711 -605 -539Occupied Properties 0 0 0 0 0 Net Premiums Written 953 640 616 561 405Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -51 -37 -63 -41 -92Properties for Sale 0 0 0 0 0 Net Premiums Earned 1,004 677 679 602 496

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 1,758 1,499 1,422 1,528 1,330 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 6,367 5,922 5,735 5,020 4,393 Net Losses Paid - Commercial 91 373 343 255 260Premiums & Considerations Due 171 108 100 76 51 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 0 401 171 299 646 Net Losses Paid 91 373 343 255 260All Other Admitted Assets 448 340 247 278 275 Net LAE Paid 143 537 351 352 64Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 6,987 6,772 6,252 5,674 5,365 Change in Loss Reserves - Commercial 203 -398 -227 -557 -148

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 126 -7 -158 312 -31

Unpaid Losses 1,736 1,339 1,112 555 407 Net Change in Loss and LAE Reserves 329 -404 -385 -245 -180Unpaid Loss Adj Expenses 981 1,111 953 1,265 1,234 Losses and LAE Incurred 563 506 309 362 144

Loss & Loss Adj Exp Reserves 2,717 2,450 2,065 1,820 1,641 Other Underwriting Expense Incurred 659 514 562 574 534Unearned Premiums 447 410 347 306 215 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 46 17 22 36 25 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 197 252 229 106 111 Net Underwriting Gain (Loss) -219 -344 -192 -334 -182Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 0 0 0 0 0 Total underwriting deductions 1,222 1,020 871 936 678

Total Liabilities 3,406 3,129 2,664 2,269 1,992

Income ($000)Total Capital and Surplus Net Investment Income 208 154 142 83 51

Common Capital Stock 47 41 39 38 36 Net Realized Capital Gains (Losses) -48 -134 81 119 146Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus 2,867 3,010 3,061 3,003 2,999 Income after cap gains (loss) before tax -59 -324 31 -132 14Other Including Gross Contributed 666 592 489 364 338 Federal Income Tax 2 -137 18 -68 -1

Capital & Surplus 3,580 3,643 3,589 3,405 3,373 Net Income -60 -187 13 -64 15

Total Liabilities and C&S 6,987 6,772 6,252 5,674 5,365 Pre-tax Operating Income -11 -190 -50 -251 -131

Memo: Total Revenue 1,164 696 902 804 692Memo: Affiliated Investments ($000) Memo: Paid Expenses 849 865 948 1,063 603

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 4,340 3,960 4,459 3,894 3,541Cash & Short Term Investments 0 0 0 0 0 Class 2 156 135 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 208 154 142 83 51 Class 6 0 0 0 0 0R li d C it l G i 48 134 81 119 146Realized Capital Gains -48 -134 81 119 146Unrealized Capital Gains -408 297 25 6 -42Total Cash & Investments 6,367 5,922 5,735 5,020 4,393Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 4,496 4,095 4,459 3,894 3,541Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 1,408 1,535 1,095 884 567Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 3 2

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 49 48 45 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 2,497 2,497 2,502 2,372 9,867Common Stock 567 567 419 -- 1,552Preferred Stock 0 0 0 -- 0Total 3,063 3,063 2,921 2,372 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.03 1.03 1.00 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 50.29 48.76 56.11 51.95 56.83Common Stocks / C&S 39.32 42.14 30.51 25.97 16.80Unaff common stock/Invested Assets 22.11 25.92 19.09 17.61 12.90

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Colorado 272 1. Oth, Prod Liab Cmbnd 944 Cash/Invested Assets 27.61 25.32 24.80 30.44 30.272. Wisconsin 161 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Illinois 108 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Louisiana 70 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. California 66 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 268 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 2.45 1.60 1.59 1.34 0.96

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.00 5.93 2.73 5.27 12.03

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR 3.99 -5.18 -7.86 -14.45 -17.25 All other admitted assets/Total Assets 6.42 5.03 3.95 4.91 5.12National DPW ($000) 2,091 1,522 1,326 1,166 944 Invested Assets/Total Assets 91.13 87.45 91.73 88.48 81.89Adjusted Loss Ratio 43.10 299.57 3.04 -53.59 -103.26 Investment Income/Total Assets 2.97 2.27 2.27 1.46 0.94

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 56.8% Preferred Stocks - 0.0%

Common Stocks - 12.9% Mortgage Loans - 0.0%

Other Invstmts - 30.3% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Colorado - 28.8% Wisconsin - 17.0%

Illinois - 11.4% Louisiana - 7.4%

California - 7.0% All other - 28.4%

Oth, Prod Liab Cmbnd - 100.0%

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%

when an inter-company pooling arrangement exists.

Continuing Care RRG Inc. (Moncks Corner, SC)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

223-B Heatley Street NAIC Company Code : 11798 Total Assets 5,650 6,166 3,635 4,595 3,695Moncks Corner, SC 29461-3781 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 3,968 3,804 2,561 3,365 2,937

Geographic Focus: Regional - Western Quadrant Total Liabilities 1,681 2,362 1,074 1,230 758NAIC Ownership Structure: Risk Retention Group Net Income -570 -394 -1,329 787 -451Tax Identification Number : 20-0221911 Total Revenue 4,582 4,898 5,218 3,890 2,733

Direct Premiums Written 5,441 5,453 5,820 4,276 3,209Net Premiums Written 4,493 4,868 5,216 3,887 2,732

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 4,493 4,868 5,216 3,887 2,732

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 10 0 412 535 98Demotech Financial Strength Rating A 03/06/13 Affirm Loss & LAE Reserves/ NPE (%) 21.80 22.06 32.21 39.99 37.20S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) -21.42 -14.29 -49.34 23.31 -18.47Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 1.13 1.28 2.04 1.16 0.93Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Katie Gray Auditor Shores Tagman Butler & Co P.A.Phone : (800) 226-0793 Actuary Milliman Inc.Fax : (941) 906-7538 CEO --Email : kgray@pboa.com CFO --

President Leslie Breckenridge

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.49 1.23 0.01 0.03 -0.08Net Investment Income/Earned Premiums 1.77 0.52 0.00 0.02 -0.05Return on Average Equity (C&S) -14.14 -9.54 -43.40 26.80 -14.71Return on Avg Assets -7.81 -5.37 -19.31 14.20 -8.78Loss and LAE Ratio 78.21 68.40 89.41 39.25 55.43Expense Ratio 42.99 44.33 39.61 43.19 65.35Loss Ratio 49.68 39.50 69.06 21.20 45.78Combined Ratio 121.20 112.73 129.02 82.44 120.77Operating Ratio 119.43 112.21 129.02 82.42 120.83Investment ratio 1.77 0.52 0.00 0.02 -0.05

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 120.69 46.05 187.57 205.07 68.20Cash, Common & Liquid Bonds / Liabilities 135.77 46.05 187.57 205.07 68.20Cash & Short-Term Investments / C&S 51.13 28.59 78.66 74.96 17.60Liabilities / Liquid Assets (IRIS Ratio) 83.00 217.00 53.00 49.00 147.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 14,742.41 NA 508.10 468.43 536.75Cash From Underwriting ($000) -1,706 -1,204 838 489 -2,178Net Cash From Operations ($000) -1,551 -1,170 840 491 -2,177Underwriting Cash Flow Ratio 68.58 77.71 113.00 115.57 55.68Operating Cash Flow Ratio 68.58 77.71 113.00 115.57 55.68Unassigned Funds / Total Assets -11.01 -16.45 -64.49 -33.87 -58.36

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 227 127 109NPW to Policyholders' Surplus 300 --- 204 116 93Change in Net Premiums Written 33 -33 7 -25 -30Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 121* 109* 98

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 0 0* 0 0* 0 0*

MSA: Charleston-North Charleston-Summerville, SC (Metro)

Distribution Channel: Broker

83.0

217.0

53.0 49.0

147.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

121.2112.7

129.0

82.4

120.8

-50.00

-40.00

-30.00

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 0.0* 0.0* 0.0*

Loss Adjustment Expense Ratio 28.53 28.90 20.35 18.06 9.64 Gross Change in Policyholders' Surplus 50 -10 -33* 31 -13*Net Commission Ratio 9.63 8.83 9.08 9.24 9.78 Net Change in Adj Policyholders' Surplus 25 -10 -35* 31* -18*Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 53 49 147*Tax, License & Fees Ratio 5.01 4.69 4.74 4.51 5.25 Agents' Bal to Policyholders' Surplus 40 --- 0 0 0Admin & Other Expense Ratio 28.35 30.81 25.79 29.44 50.31 1-Yr Resv Dev to Policyholders' Surplus 20 --- 0 3 -12Gross Premiums Written ($000)3 5,441 5,453 5,820 4,276 3,209 2-Yr Resv Dev to Policyholders' Surplus 20 --- 0 0 -12Loss & Loss Adj Expense ($000) 3,514 3,330 4,663 1,526 1,514 Est Curr Resv Defi/Policyholders' Surplus 25 --- -16 -10 -1Other Underwriting Exp Incurred ($000) 1,931 2,158 2,066 1,679 1,785 *Indicates an unusual value.Net Underwriting Gains ($000) -952 -620 -1,514 683 -568 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 82.57 89.27 89.62 90.92 85.13 complements of each ratio.Effective Tax Rate NM NM NM -14.96 NM

Pre-Tax Operating Margin -18.85 -12.05 -28.96 17.61 -20.72 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth -15.02 9.14 -41.05 26.43 -19.59

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth -32.05 40.49 -54.54 14.55 -38.36

Reinsurance Recoverable ex US Aff -555 -817 79 -15 10 Net Premiums Written Growth -37.93 8.35 7.14 -25.47 -29.72Retention Ratio (NPW/GPW) (%)3 82.57 89.27 89.62 90.92 85.13 Pre-Tax Operating Income Growth NM NM NM NM NMUnauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 0.00 0.00 0.00 Net Income Growth NM NM NM NM NMNonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth -95.14 NM NM 29.93 -81.66Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -1.83 0.22 6.72 -26.53 -24.94Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 22.41 -3.43 -19.75 -12.10 -21.07

Capital & Surplus Five-year CAGR 44.58 23.49 -5.27 -1.70 -6.79Admitted Assets Five-year CAGR 35.43 8.31 -11.20 -5.23 -11.08

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 3,968 3,804 2,561 3,365 2,937 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 3,968 3,804 2,561 3,365 2,937 Combined NA NA NA NA NA ACL Risk Based Capital 638 750 691 582 688

Risk Based Capital Ratio (TAC/ACL RBC) 621.55 507.26 370.34 577.88 426.80

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 310.78 253.63 185.17 288.94 213.40

Change in Loss & LAE Resv / Reserves -95.14 NM NM 29.93 -81.66 Realized Capital Gains (Losses) 0 0 0 0 01 Yr Loss Reserve Dev / 1Y Prior C&S -4.91 -0.25 0.00 3.44 -12.15 Net Unrealized Capital Gains (Losses) -2 2 0 0 02 Yr Loss Reserve Dev / 2Y Prior C&S 0.06 -4.91 -0.25 0.00 -11.87 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 21.80 22.06 32.21 39.99 37.20 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE -4.56 -0.21 0.00 2.26 -14.97 Net Premiums Written / Avg C&S (%) 111.44 117.87 170.27 132.28 89.11IBNR/ Total Reserves 88.98 NA 48.27 40.21 23.13 Liabilities / Capital & Surplus (%) 42.37 62.09 41.93 36.55 25.81Reserves/ Equity 0.25 0.00 16.09 15.91 3.34 Total Reins Recov Excl US Aff / C&S (%) -13.99 -21.48 3.08 -0.45 0.34

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

310.8

253.6

185.2

288.9

213.4

0500

1,0001,5002,0002,5003,0003,5004,0004,500

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

82.6

89.3 89.690.9

85.1

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Continuing Care RRG Inc. (Moncks Corner, SC)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 0 0 0 0 0 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 5,441 5,453 5,820 4,276 3,209Common Stocks 0 0 0 0 0 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 5,441 5,453 5,820 4,276 3,209Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -948 -585 -604 -388 -477Occupied Properties 0 0 0 0 0 Net Premiums Written 4,493 4,868 5,216 3,887 2,732Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 0 0 0 0 0Properties for Sale 0 0 0 0 0 Net Premiums Earned 4,493 4,868 5,216 3,887 2,732

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 2,029 1,088 2,014 2,523 517 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 2,029 1,088 2,014 2,523 517 Net Losses Paid - Commercial 2,397 1,932 3,248 892 1,447Premiums & Considerations Due 43 0 9 0 -18 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 57 216 0 0 0 Net Losses Paid 2,397 1,932 3,248 892 1,447All Other Admitted Assets 3,521 4,863 1,611 2,073 3,196 Net LAE Paid 1,428 1,408 1,003 510 516Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 5,650 6,166 3,635 4,595 3,695 Change in Loss Reserves - Commercial -164 -9 354 -68 -197

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves -146 -1 58 192 -252

Unpaid Losses 9 0 354 285 89 Net Change in Loss and LAE Reserves -311 -10 412 123 -449Unpaid Loss Adj Expenses 1 0 58 250 9 Losses and LAE Incurred 3,514 3,330 4,663 1,526 1,514

Loss & Loss Adj Exp Reserves 10 0 412 535 98 Other Underwriting Expense Incurred 1,931 2,158 2,066 1,679 1,785Unearned Premiums 0 0 0 0 0 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 612 1,033 -79 15 -10 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 928 1,299 695 680 658 Net Underwriting Gain (Loss) -952 -620 -1,514 683 -568Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 131 30 46 0 12 Total underwriting deductions 5,445 5,488 6,729 3,205 3,300

Total Liabilities 1,681 2,362 1,074 1,230 758

Income ($000)Total Capital and Surplus Net Investment Income 79 25 0 1 -1

Common Capital Stock 0 0 0 0 0 Net Realized Capital Gains (Losses) 0 0 0 0 0Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 10 4 2 1 3Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus -622 -1,015 -2,344 -1,557 -2,157 Income after cap gains (loss) before tax -864 -590 -1,511 685 -566Other Including Gross Contributed 4,591 4,819 4,905 4,922 5,094 Federal Income Tax -294 -196 -182 -102 -115

Capital & Surplus 3,968 3,804 2,561 3,365 2,937 Net Income -570 -394 -1,329 787 -451

Total Liabilities and C&S 5,650 6,166 3,635 4,595 3,695 Pre-tax Operating Income -864 -590 -1,511 685 -566

Memo: Total Revenue 4,582 4,898 5,218 3,890 2,733Memo: Affiliated Investments ($000) Memo: Paid Expenses 3,483 3,314 3,414 2,250 3,470

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 254 0 0 0 0Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 79 25 0 1 -1 Class 6 0 0 0 0 0R li d C it l G i 0 0 0 0 0Realized Capital Gains 0 0 0 0 0Unrealized Capital Gains -2 2 0 0 0Total Cash & Investments 2,029 1,088 2,014 2,523 517Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 254 0 0 0 0Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 0 0 0 0Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 NA NA NA NAPrivately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 NA NA NA NAMortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 0 0 0 0 0Common Stock 0 0 0 -- 0Preferred Stock 0 0 0 -- 0Total 0 0 0 0 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 NA NA NA NABonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 0.00 0.00 0.00 0.00 0.00Common Stocks / C&S 0.00 0.00 0.00 0.00 0.00Unaff common stock/Invested Assets 0.00 0.00 0.00 0.00 0.00

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. California 1,745 1. Med Prof Liab 2,407 Cash/Invested Assets 100.00 100.00 100.00 100.00 100.002. Arizona 810 2. Oth, Prod Liab Cmbnd 802 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. North Carolina 275 3. Total Cmbnd A&H 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Indiana 101 4. Aircraft 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Kansas 74 5. Comm'l Auto St 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 204 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 0.76 0.00 0.26 0.00 -0.48

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 1.01 3.50 0.00 0.00 0.00

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR 149.26 26.52 7.91 -3.19 -10.35 All other admitted assets/Total Assets 62.31 78.86 44.32 45.11 86.49National DPW ($000) 5,441 5,453 5,820 4,276 3,209 Invested Assets/Total Assets 35.92 17.64 55.42 54.89 13.99Adjusted Loss Ratio 41.02 35.26 61.89 19.27 38.98 Investment Income/Total Assets 1.40 0.41 0.00 0.02 -0.04

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 0.0% Preferred Stocks - 0.0%

Common Stocks - 0.0% Mortgage Loans - 0.0%

Other Invstmts - 100.0% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

California - 54.4% Arizona - 25.3%

North Carolina - 8.6% Indiana - 3.1%

Kansas - 2.3% All other - 6.4%

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%

when an inter-company pooling arrangement exists.

Doctors & Surgeons Natl RRG (Lawrenceville, GA)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

3370 Sugarloaf Parkway NAIC Company Code : 13018 Total Assets 2,228 2,918 4,828 7,583 9,956Suite G-2/302 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 1,219 1,276 2,033 2,209 2,589Lawrenceville, GA 30044-5486 Geographic Focus: National Total Liabilities 1,009 1,642 2,795 5,375 7,367

NAIC Ownership Structure: Risk Retention Group Net Income 74 6 168 76 279Tax Identification Number : 68-0656137 Total Revenue 385 1,014 2,360 3,157 4,013

Direct Premiums Written 1,430 1,294 3,928 5,146 6,538Net Premiums Written 1,164 798 2,549 4,008 4,896

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 316 958 2,283 3,007 3,839

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 38 764 1,753 2,941 3,386Demotech Financial Strength Rating A 03/06/13 Affirm Loss & LAE Reserves/ NPE (%) 20.05 46.46 53.41 72.14 82.29S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 18.37 0.75 17.10 7.48 17.34Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.95 0.63 1.25 1.81 1.89Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Sara Mary Carpenter Auditor Munninghoff Lange & CompanyPhone : (706) 232-9591x12 Actuary Merlinos & Associates Inc.Fax : (706) 232-0195 CEO --Email : scarpenter@alliantplans.com CFO --

President William Peter Graper

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.63 1.98 1.63 2.46 2.59Net Investment Income/Earned Premiums 3.49 6.23 2.10 3.00 3.56Return on Average Equity (C&S) 6.64 0.51 11.35 3.49 11.33Return on Avg Assets 3.79 0.21 3.93 1.22 3.19Loss and LAE Ratio 26.47 63.87 52.70 51.33 53.09Expense Ratio 8.34 49.30 35.45 36.22 31.60Loss Ratio 2.99 45.36 36.15 20.45 31.65Combined Ratio 34.80 113.17 88.16 87.55 84.69Operating Ratio 21.97 107.99 85.81 83.55 80.16Investment ratio 12.83 5.19 2.35 4.00 4.54

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 191.83 135.53 30.91 8.55 8.13Cash, Common & Liquid Bonds / Liabilities 191.83 253.53 131.47 104.97 97.85Cash & Short-Term Investments / C&S 158.83 174.46 42.50 20.80 23.13Liabilities / Liquid Assets (IRIS Ratio) 52.00 62.00 75.00 95.00 102.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 241.26 193.53 164.43 124.92 121.10Cash From Underwriting ($000) 936 614 837 1,997 1,956Net Cash From Operations ($000) 996 651 769 2,083 2,170Underwriting Cash Flow Ratio 532.90 514.74 174.99 225.74 168.42Operating Cash Flow Ratio 534.00 514.74 189.20 231.20 168.42Unassigned Funds / Total Assets 3.66 4.74 6.35 5.14 6.72

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 193 233 253NPW to Policyholders' Surplus 300 --- 125 181 189Change in Net Premiums Written 33 -33 219* 57* 22Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 91 84 81

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 1 7* 2 6* 2 7*

MSA: Atlanta-Sandy Springs-Marietta, GA (Metro)

Distribution Channel: Broker

52.062.0

75.0

95.0102.0

0

2,000

4,000

6,000

8,000

10,000

12,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

34.8

113.2

88.2 87.6 84.7

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 1.7* 2.6* 2.7*

Loss Adjustment Expense Ratio 23.48 18.52 16.55 30.88 21.44 Gross Change in Policyholders' Surplus 50 -10 59* 9 17Net Commission Ratio 3.34 18.33 12.81 14.67 16.05 Net Change in Adj Policyholders' Surplus 25 -10 13 4 13Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 75 95 102*Tax, License & Fees Ratio 0.97 1.25 0.82 0.61 0.66 Agents' Bal to Policyholders' Surplus 40 --- 31 54* 60*Admin & Other Expense Ratio 4.03 29.71 21.82 20.95 14.89 1-Yr Resv Dev to Policyholders' Surplus 20 --- 28* 0 -2Gross Premiums Written ($000)3 1,430 1,294 3,928 5,146 6,538 2-Yr Resv Dev to Policyholders' Surplus 20 --- 16 20* -1Loss & Loss Adj Expense ($000) 84 612 1,203 1,544 2,038 Est Curr Resv Defi/Policyholders' Surplus 25 --- 22 -8 -3Other Underwriting Exp Incurred ($000) 97 393 904 1,452 1,547 *Indicates an unusual value.Net Underwriting Gains ($000) 136 -47 176 12 254 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 81.36 61.70 64.90 77.88 74.88 complements of each ratio.Effective Tax Rate 62.46 34.00 33.87 53.42 33.99

Pre-Tax Operating Margin 53.01 0.87 10.74 5.13 10.66 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 118.68 30.95 65.45 57.08 31.29

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth NM 62.71 70.19 92.32 37.07

Reinsurance Recoverable ex US Aff 199 199 776 472 537 Net Premiums Written Growth NM -31.40 219.39 57.21 22.16Retention Ratio (NPW/GPW) (%)3 81.36 61.70 64.90 77.88 74.88 Pre-Tax Operating Income Growth NM -95.65 NM -36.13 164.26Unauthorized Net Recov. (ex US Aff) (%) 100.00 0.00 48.58 0.00 0.00 Net Income Growth 842.48 -91.84 NM -55.07 269.67Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth NM 1,920.03 129.36 67.74 15.13Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth NM -9.55 203.64 31.02 27.04Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR NA NA NM 368.52 266.41

Capital & Surplus Five-year CAGR NA NA 26.35 21.67 20.77Admitted Assets Five-year CAGR NA NA 67.96 65.17 57.76

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 1,219 1,276 2,033 2,209 2,589 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 1,219 1,276 2,033 2,209 2,589 Combined NA NA NA NA NA ACL Risk Based Capital 49 174 423 658 804

Risk Based Capital Ratio (TAC/ACL RBC) 2,497.33 731.77 480.65 335.87 321.92

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 1,248.66 365.88 240.33 167.94 160.96

Change in Loss & LAE Resv / Reserves NM 1,920.03 129.36 67.74 15.13 Realized Capital Gains (Losses) -8 0 1 0 -41 Yr Loss Reserve Dev / 1Y Prior C&S 0.00 0.41 27.98 0.10 -2.13 Net Unrealized Capital Gains (Losses) 0 0 0 0 02 Yr Loss Reserve Dev / 2Y Prior C&S 0.00 0.00 16.32 20.15 -0.78 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 20.05 46.46 53.41 72.14 82.29 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE 0.00 0.52 15.64 0.07 -1.22 Net Premiums Written / Avg C&S (%) 104.86 67.11 171.98 185.26 198.40IBNR/ Total Reserves 25.01 40.47 28.27 23.35 37.78 Liabilities / Capital & Surplus (%) 82.80 128.72 137.48 243.37 284.54Reserves/ Equity 3.10 59.92 86.24 133.16 130.77 Total Reins Recov Excl US Aff / C&S (%) 16.33 15.60 38.17 21.37 20.74

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

1,248.7

365.9240.3

167.9 161.00

500

1,000

1,500

2,000

2,500

3,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

81.4

61.7 64.9

77.9 74.9

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Doctors & Surgeons Natl RRG (Lawrenceville, GA)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 0 351 2,787 5,145 6,327 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 1,430 1,294 3,928 5,146 6,538Common Stocks 0 33 24 38 283 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 1,430 1,294 3,928 5,146 6,538Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -267 -495 -1,379 -1,139 -1,642Occupied Properties 0 0 0 0 0 Net Premiums Written 1,164 798 2,549 4,008 4,896Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 847 -160 266 1,000 1,057Properties for Sale 0 0 0 0 0 Net Premiums Earned 316 958 2,283 3,007 3,839

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 1,936 2,226 864 459 599 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 1,936 2,610 3,674 5,642 7,209 Net Losses Paid - Commercial 0 -145 233 60 803Premiums & Considerations Due 0 36 632 1,192 1,547 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 75 30 29 0 0 Net Losses Paid 0 -145 233 60 803All Other Admitted Assets 217 242 493 749 1,014 Net LAE Paid 46 31 105 172 791Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 2,228 2,918 4,828 7,583 9,956 Change in Loss Reserves - Commercial 9 580 592 555 412

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 28 147 272 757 32

Unpaid Losses 9 589 1,182 1,737 2,149 Net Change in Loss and LAE Reserves 38 727 865 1,312 445Unpaid Loss Adj Expenses 28 175 572 1,204 1,237 Losses and LAE Incurred 84 612 1,203 1,544 2,038

Loss & Loss Adj Exp Reserves 38 764 1,753 2,941 3,386 Other Underwriting Expense Incurred 97 393 904 1,452 1,547Unearned Premiums 847 687 953 1,953 3,010 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 0 0 0 109 349 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 2 87 88 308 590 Net Underwriting Gain (Loss) 136 -47 176 12 254Payable to Parent, Subs & Affiliates 2 20 0 63 -36 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 120 84 0 0 69 Total underwriting deductions 181 1,006 2,107 2,995 3,585

Total Liabilities 1,009 1,642 2,795 5,375 7,367

Income ($000)Total Capital and Surplus Net Investment Income 41 50 54 120 174

Common Capital Stock 500 500 500 500 500 Net Realized Capital Gains (Losses) -8 0 1 0 -4Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 28 6 24 30 0Unassigned Surplus 81 138 307 390 669 Income after cap gains (loss) before tax 196 9 254 162 423Other Including Gross Contributed 638 638 1,226 1,319 1,420 Federal Income Tax 123 3 86 87 144

Capital & Surplus 1,219 1,276 2,033 2,209 2,589 Net Income 74 6 168 76 279

Total Liabilities and C&S 2,228 2,918 4,828 7,583 9,956 Pre-tax Operating Income 204 9 253 162 428

Memo: Total Revenue 377 1,015 2,361 3,158 4,008Memo: Affiliated Investments ($000) Memo: Paid Expenses 141 340 1,056 1,517 1,925

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 0 1,904 2,787 5,043 6,226Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 102 101All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 41 50 54 120 174 Class 6 0 0 0 0 0R li d C it l G i 8 0 1 0 4Realized Capital Gains -8 0 1 0 -4Unrealized Capital Gains 0 0 0 0 0Total Cash & Investments 1,936 2,610 3,674 5,642 7,209Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 0 1,904 2,787 5,145 6,327Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 33 24 38 283Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) NA 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) NA 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 2,822 3,684

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 346Issued State Rev Obligations ($000) 0 0 0 0 94Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 6,327 6,386 6,372 6,288 25,373Common Stock 283 283 283 -- 848Preferred Stock 0 0 0 -- 0Total 6,610 6,669 6,655 6,288 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) NA 1.00 1.00 1.02 1.02Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 0.00 13.45 75.84 91.19 87.77Common Stocks / C&S 0.00 2.62 1.17 1.71 10.92Unaff common stock/Invested Assets 0.00 1.28 0.65 0.67 3.92

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. New York 2,342 1. Med Prof Liab 6,538 Cash/Invested Assets 100.00 85.27 23.51 8.14 8.312. Michigan 1,364 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Florida 853 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Illinois 410 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Arizona 202 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 1,368 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 0.00 1.25 13.08 15.72 15.54

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 3.37 1.01 0.60 0.00 0.00

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 1.87DPW 5 Yr CAGR NA NA NA NA NA All other admitted assets/Total Assets 9.74 8.29 10.21 9.88 10.19National DPW ($000) 1,430 1,294 3,928 5,146 6,538 Invested Assets/Total Assets 86.89 89.45 76.11 74.40 72.40Adjusted Loss Ratio 3.30 29.77 25.30 14.79 23.47 Investment Income/Total Assets 1.82 1.70 1.11 1.59 1.75

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 87.8% Preferred Stocks - 0.0%

Common Stocks - 3.9% Mortgage Loans - 0.0%

Other Invstmts - 8.3% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

New York - 35.8% Michigan - 20.9%

Florida - 13.0% Illinois - 6.3%

Arizona - 3.1% All other - 20.9%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Emergency Cap Mgmt LLC A RRG (Washington, DC)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

1627 Connecticut Avenue, NW NAIC Company Code : 14163 Total Assets NA NA NA NA 2,743Suite 6 Business Focus : P&C Minimum NPW Policyholder Surplus NA NA NA NA 1,802Washington, DC 20009-1013 Geographic Focus: Geography Minimum NPW Total Liabilities NA NA NA NA 941

NAIC Ownership Structure: Risk Retention Group Net Income NA NA NA NA -11Tax Identification Number : 45-4057491 Total Revenue NA NA NA NA 1,012

Direct Premiums Written NA NA NA NA 3,023Net Premiums Written NA NA NA NA 1,004

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned NA NA NA NA 1,004

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves NA NA NA NA 769Demotech Financial Strength Rating A 03/08/13 Affirm Loss & LAE Reserves/ NPE (%) NA NA NA NA NAS&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) NA NA NA NA NAMoody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 NA NA NA NA 0.56Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Melissa Anne Hancock Auditor --Phone : (802) 881-7142 Actuary --Fax : (802) 863-2198 CEO --Email : melissa.hancock@strategicrisks.com CFO --

President Rodney W. Smith

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets NA NA NA NA NANet Investment Income/Earned Premiums NA NA NA NA 0.81Return on Average Equity (C&S) NA NA NA NA NAReturn on Avg Assets NA NA NA NA NALoss and LAE Ratio NA NA NA NA 76.57Expense Ratio NA NA NA NA 18.88Loss Ratio NA NA NA NA 38.77Combined Ratio NA NA NA NA 95.45Operating Ratio NA NA NA NA 94.63Investment ratio NA NA NA NA 0.81

Policyholder Dividend Ratio NA NA NA NA 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities NA NA NA NA 114.64Cash, Common & Liquid Bonds / Liabilities NA NA NA NA 250.64Cash & Short-Term Investments / C&S NA NA NA NA 59.88Liabilities / Liquid Assets (IRIS Ratio) NA NA NA NA 40.00Affiliated Investments / Capital & Surplus NA NA NA NA 0.00Reserve coverage2 NA NA NA NA 526.49Cash From Underwriting ($000) NA NA NA NA 632Net Cash From Operations ($000) NA NA NA NA 596Underwriting Cash Flow Ratio NA NA NA NA 2,034.89Operating Cash Flow Ratio NA NA NA NA 2,237.00Unassigned Funds / Total Assets NA NA NA NA 0.97

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- NA NA 168NPW to Policyholders' Surplus 300 --- NA NA 56Change in Net Premiums Written 33 -33 NA NA NASurplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 0 0 NA

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 NA NA NA

MSA: Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro)

Distribution Channel: --

40.0

0

500

1,000

1,500

2,000

2,500

3,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

95.4

0.000.100.200.300.400.500.600.700.800.901.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 NA NA NA

Loss Adjustment Expense Ratio NA NA NA NA 37.79 Gross Change in Policyholders' Surplus 50 -10 NA NA 3Net Commission Ratio NA NA NA NA -13.29 Net Change in Adj Policyholders' Surplus 25 -10 NA NA 2Salaries & Benefits Ratio NA NA NA NA 0.00 Liabilities to Liquid Assets 100 --- NA NA 40Tax, License & Fees Ratio NA NA NA NA 9.57 Agents' Bal to Policyholders' Surplus 40 --- NA NA 0Admin & Other Expense Ratio NA NA NA NA 22.61 1-Yr Resv Dev to Policyholders' Surplus 20 --- NA NA 0Gross Premiums Written ($000)3 NA NA NA NA 3,023 2-Yr Resv Dev to Policyholders' Surplus 20 --- NA NA NALoss & Loss Adj Expense ($000) NA NA NA NA 769 Est Curr Resv Defi/Policyholders' Surplus 25 --- NA NA NAOther Underwriting Exp Incurred ($000) NA NA NA NA 190 *Indicates an unusual value.Net Underwriting Gains ($000) NA NA NA NA 46 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio NA NA NA NA 33.22 complements of each ratio.Effective Tax Rate NA NA NA NA 118.29

Pre-Tax Operating Margin NA NA NA NA 5.32 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth NA NA NA NA NA

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth NA NA NA NA NA

Reinsurance Recoverable ex US Aff NA NA NA NA 1,689 Net Premiums Written Growth NA NA NA NA NARetention Ratio (NPW/GPW) (%)3 NA NA NA NA 33.22 Pre-Tax Operating Income Growth NA NA NA NA NAUnauthorized Net Recov. (ex US Aff) (%) NA NA NA NA 0.00 Net Income Growth NA NA NA NA NANonaffiliated Reins Assumed / GPW (%) NA NA NA NA 0.00 Loss & Loss Adj Exp Reserves Growth NA NA NA NA NAReinsurance Payable on Losses, LAE NA NA NA NA 0 Direct Premiums Written Growth NA NA NA NA NAReinsurance on Known Case Reserves NA NA NA NA 0 Total Liabilities Five-year CAGR NA NA NA NA NA

Capital & Surplus Five-year CAGR NA NA NA NA NAAdmitted Assets Five-year CAGR NA NA NA NA NA

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus NA NA NA NA 1,802 Environmental NA NA NA NA NA RBC - Total Adjusted Capital NA NA NA NA 1,802 Combined NA NA NA NA NA ACL Risk Based Capital NA NA NA NA 377

Risk Based Capital Ratio (TAC/ACL RBC) NA NA NA NA 478.06

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) NA NA NA NA 239.03

Change in Loss & LAE Resv / Reserves NA NA NA NA NA Realized Capital Gains (Losses) NA NA NA NA 61 Yr Loss Reserve Dev / 1Y Prior C&S NA NA NA NA NA Net Unrealized Capital Gains (Losses) NA NA NA NA 92 Yr Loss Reserve Dev / 2Y Prior C&S NA NA NA NA 0.00 Dividends to Stockholders NA NA NA NA 0Loss and LAE Reserves / NPE NA NA NA NA NA Dividend Payout Ratio (%) NA NA NA NA 0.001 Yr Loss Reserve Development / NPE NA NA NA NA 0.00 Net Premiums Written / Avg C&S (%) NA NA NA NA NAIBNR/ Total Reserves NA NA NA NA 44.14 Liabilities / Capital & Surplus (%) NA NA NA NA 52.23Reserves/ Equity NA NA NA NA 42.68 Total Reins Recov Excl US Aff / C&S (%) NA NA NA NA 93.75

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

239.0

0200400600800

1,0001,2001,4001,6001,8002,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))33.2

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Emergency Cap Mgmt LLC A RRG (Washington, DC)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds NA NA NA NA 1,050 Personal P&C Direct Premiums NA NA NA NA 0Preferred Stocks NA NA NA NA 0 Commercial P&C Direct Premiums NA NA NA NA 3,023Common Stocks NA NA NA NA 229 Accident & Health Direct Premiums NA NA NA NA 0

First Lien Real Estate Loans NA NA NA NA 0 Direct Premiums Written NA NA NA NA 3,023Real Estate Loans Less First Liens NA NA NA NA 0

Total Mortgage Loans NA NA NA NA 0 Net Reinsurance Premiums5 NA NA NA NA -2,019Occupied Properties NA NA NA NA 0 Net Premiums Written NA NA NA NA 1,004Income Generating Properties NA NA NA NA 0 Change in U/E Premiums Reserve NA NA NA NA 0Properties for Sale NA NA NA NA 0 Net Premiums Earned NA NA NA NA 1,004

Total Real Estate NA NA NA NA 0 Net Adm Cash,Cash Equi, Short-Term Inv NA NA NA NA 1,079 Underwriting Deductions ($000)Other Investments NA NA NA NA 1 Net Losses Paid - Personal NA NA NA NA 0Subtotals, Cash & Invested Assets NA NA NA NA 2,359 Net Losses Paid - Commercial NA NA NA NA 0Premiums & Considerations Due NA NA NA NA 0 Net Losses Paid - A&H NA NA NA NA 0Reinsurance Recoverable NA NA NA NA 350 Net Losses Paid NA NA NA NA 0All Other Admitted Assets NA NA NA NA 33 Net LAE Paid NA NA NA NA 0Separate Account Assets NA NA NA NA 0 Change in Loss Reserves - Personal NA NA NA NA 0Total Net Admitted Assets NA NA NA NA 2,743 Change in Loss Reserves - Commercial NA NA NA NA 389

Change in Loss Reserves - A&H NA NA NA NA 0Liabilities Change in LAE Reserves NA NA NA NA 380

Unpaid Losses NA NA NA NA 389 Net Change in Loss and LAE Reserves NA NA NA NA 769Unpaid Loss Adj Expenses NA NA NA NA 380 Losses and LAE Incurred NA NA NA NA 769

Loss & Loss Adj Exp Reserves NA NA NA NA 769 Other Underwriting Expense Incurred NA NA NA NA 190Unearned Premiums NA NA NA NA 0 Other Underwriting Deductions NA NA NA NA 0Total Reinsurance Liabilities NA NA NA NA 0 Net Income Protected Cells NA NA NA NA 0Commissions, Other Exp & Taxes NA NA NA NA 167 Net Underwriting Gain (Loss) NA NA NA NA 46Payable to Parent, Subs & Affiliates NA NA NA NA 2 Policyholder Dividends (PHD) NA NA NA NA 0Other Liabilities NA NA NA NA 3 Total underwriting deductions NA NA NA NA 959

Total Liabilities NA NA NA NA 941

Income ($000)Total Capital and Surplus Net Investment Income NA NA NA NA 8

Common Capital Stock NA NA NA NA 0 Net Realized Capital Gains (Losses) NA NA NA NA 6Preferred Capital Stock NA NA NA NA 0 Finance Service Charges NA NA NA NA 0Surplus Notes NA NA NA NA 0 All Other Income NA NA NA NA 0Unassigned Surplus NA NA NA NA 27 Income after cap gains (loss) before tax NA NA NA NA 60Other Including Gross Contributed NA NA NA NA 1,775 Federal Income Tax NA NA NA NA 70

Capital & Surplus NA NA NA NA 1,802 Net Income NA NA NA NA -11

Total Liabilities and C&S NA NA NA NA 2,743 Pre-tax Operating Income NA NA NA NA 54

Memo: Total Revenue NA NA NA NA 1,018Memo: Affiliated Investments ($000) Memo: Paid Expenses NA NA NA NA 64

Bonds NA NA NA NA 0

Preferred Stocks NA NA NA NA 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks NA NA NA NA 0 Investment GradeMortgage Loans NA NA NA NA 0 Class 1 NA NA NA NA 1,050Cash & Short Term Investments NA NA NA NA 0 Class 2 NA NA NA NA 0All Other Investments NA NA NA NA 0 Non - Investment Grade

Total Affiliated Investments NA NA NA NA 0 Class 3 NA NA NA NA 0Class 4 NA NA NA NA 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 NA NA NA NA 0

Net Investment Income NA NA NA NA 8 Class 6 NA NA NA NA 0R li d C it l G i NA NA NA NA 6Realized Capital Gains NA NA NA NA 6Unrealized Capital Gains NA NA NA NA 9Total Cash & Investments NA NA NA NA 2,359Affiliated Cash & Investments NA NA NA NA 0Total Bonds (incl Short-Term) NA NA NA NA 1,050Total Preferred Stock (incl Nonadmitted) NA NA NA NA 0Total Common Stock (incl Nonadmitted) NA NA NA NA 229Total Mortgage Loans (incl Nonadmitted) NA NA NA NA 0Total Real Estate (incl Nonadmitted) NA NA NA NA 0

Privately Placed Bonds/Total Bonds (%) NA NA NA NA 0.00Privately Placed Bonds / C&S (%) NA NA NA NA 0.00Bonds Rated 3-6 / Total Bonds (%) NA NA NA NA 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) NA NA NA NA 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 NA 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 NA 0

Municipal SecuritiesIssued States & Territories ($000) NA NA NA NA 0Issued Political Subdivisions ($000) NA NA NA NA 0Issued State Rev Obligations ($000) NA NA NA NA 0Issued Industrial Development ($000) NA NA NA NA 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 1,050 1,054 1,063 1,000 4,167Common Stock 229 229 217 -- 675Preferred Stock 0 0 0 -- 0Total 1,280 1,283 1,279 1,000 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) NA NA NA NA 1.00Bonds Rated 3-6 / C&S NA NA NA NA 0.00Class 5 and 6 Bonds / C&S NA NA NA NA 0.00Bonds/Invested Assets NA NA NA NA 44.52Common Stocks / C&S NA NA NA NA 12.73Unaff common stock/Invested Assets NA NA NA NA 9.72

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S NA NA NA NA 0.001. Illinois 1,062 1. Med Prof Liab 3,023 Cash/Invested Assets NA NA NA NA 45.722. Ohio 572 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S NA NA NA NA 0.003. Indiana 551 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Michigan 356 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets NA NA NA NA 0.005. Delaware 238 5. Comm'l Multi Prl 0 Real Estate/Invested Assets NA NA NA NA 0.00

All Other 245 All Other 0 Other Investments/Invested Assets NA NA NA NA 0.04Premiums & Cons due/Total Assets NA NA NA NA 0.00

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets NA NA NA NA 12.75

Market Share Ratio NA NA NA NA 0.00 Rec from parent,sub or aff./Total Assets NA NA NA NA 0.00DPW 5 Yr CAGR NA NA NA NA NA All other admitted assets/Total Assets NA NA NA NA 1.22National DPW ($000) NA NA NA NA 3,023 Invested Assets/Total Assets NA NA NA NA 86.03Adjusted Loss Ratio NA NA NA NA 46.59 Investment Income/Total Assets NA NA NA NA 0.30

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 44.5% Preferred Stocks - 0.0%

Common Stocks - 9.7% Mortgage Loans - 0.0%

Other Invstmts - 45.8% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Illinois - 35.1% Ohio - 18.9%

Indiana - 18.2% Michigan - 11.8%

Delaware - 7.9% All other - 8.1%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Emergency Medicine Prof Assr (Las Vegas, NV)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

9550 South Eastern Avenue NAIC Company Code : 12003 Total Assets 11,697 12,525 13,729 22,902 21,100Suite 253 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 3,722 3,649 4,823 6,324 6,002Las Vegas, NV 89123-8042 Geographic Focus: Regional - Midwestern Quadrant Total Liabilities 7,975 8,877 8,906 16,578 15,098

NAIC Ownership Structure: Risk Retention Group Net Income -201 -392 400 635 -301Tax Identification Number : 20-1141933 Total Revenue 3,954 4,163 6,042 6,147 4,273

Direct Premiums Written 7,039 7,303 7,715 8,424 4,431Net Premiums Written 3,750 4,268 5,478 6,396 3,692

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 3,793 3,966 5,797 5,921 4,047

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 5,147 6,343 6,531 7,770 7,739Demotech Financial Strength Rating A 03/08/13 Affirm Loss & LAE Reserves/ NPE (%) 132.27 147.87 109.18 121.30 198.92S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 0.14 -4.84 4.84 12.51 -11.54Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 1.01 1.17 1.14 1.01 0.62Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Brian Troy Winch Auditor Shores Tagman Butler & Co P.A.Phone : (941) 373-1105 Actuary Milliman Inc.Fax : (941) 366-1076 CEO --Email : twinch@riskservcos.com CFO --

President --

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.01 2.45 2.63 2.14 1.62Net Investment Income/Earned Premiums 4.31 4.63 4.47 3.54 6.12Return on Average Equity (C&S) -4.25 -11.01 9.44 11.42 -4.74Return on Avg Assets -1.68 -3.14 2.85 3.80 -1.32Loss and LAE Ratio 46.40 56.74 50.83 45.01 56.42Expense Ratio 58.34 48.85 52.77 43.57 52.50Loss Ratio 35.04 44.83 29.78 16.66 21.08Combined Ratio 104.73 105.60 103.60 88.58 128.33Operating Ratio 100.47 100.62 99.37 84.76 122.74Investment ratio 4.26 4.98 4.22 3.82 5.59

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 19.41 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 19.47 28.63 7.00 24.09 22.29Cash, Common & Liquid Bonds / Liabilities 95.45 103.03 95.60 70.02 74.08Cash & Short-Term Investments / C&S 41.71 69.66 12.93 63.15 56.06Liabilities / Liquid Assets (IRIS Ratio) 104.00 96.00 104.00 142.00 130.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 177.56 179.54 179.02 181.35 156.62Cash From Underwriting ($000) 391 1,296 -19 1,961 -2,119Net Cash From Operations ($000) 651 1,535 256 2,226 -2,533Underwriting Cash Flow Ratio 109.26 152.44 99.64 141.26 62.97Operating Cash Flow Ratio 110.43 146.49 99.64 141.26 55.92Unassigned Funds / Total Assets -12.00 -9.02 -4.42 2.24 1.13

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 160 138 74NPW to Policyholders' Surplus 300 --- 114 101 62Change in Net Premiums Written 33 -33 28 17 -42*Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 100 92 100

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 2 8* 2 3* 2 0*

MSA: Las Vegas-Paradise, NV (Metro)

Distribution Channel: Direct Response

104.096.0

104.0

142.0130.0

0

5,000

10,000

15,000

20,000

25,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

104.7 105.6 103.6

88.6

128.3

-15.00

-10.00

-5.00

0.00

5.00

10.00

15.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 2.8* 2.3* 2.0*

Loss Adjustment Expense Ratio 11.35 11.91 21.04 28.35 35.33 Gross Change in Policyholders' Surplus 50 -10 32 31 -5Net Commission Ratio 15.47 12.62 11.48 9.82 9.57 Net Change in Adj Policyholders' Surplus 25 -10 14 23 -4Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 104* 142* 130*Tax, License & Fees Ratio 7.63 4.28 3.66 5.55 5.66 Agents' Bal to Policyholders' Surplus 40 --- 12 6 5Admin & Other Expense Ratio 35.24 31.95 37.63 28.20 37.27 1-Yr Resv Dev to Policyholders' Surplus 20 --- 25* -10 -9Gross Premiums Written ($000)3 7,039 7,303 7,715 8,724 4,452 2-Yr Resv Dev to Policyholders' Surplus 20 --- -31 12 -22Loss & Loss Adj Expense ($000) 1,760 2,250 2,947 2,665 2,283 Est Curr Resv Defi/Policyholders' Surplus 25 --- 38* 6 -56Other Underwriting Exp Incurred ($000) 2,188 2,085 2,891 2,787 1,938 *Indicates an unusual value.Net Underwriting Gains ($000) -155 -369 -40 469 -174 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 53.28 58.43 71.00 73.32 82.93 complements of each ratio.Effective Tax Rate NM NM -27.06 32.10 NM

Pre-Tax Operating Margin 0.17 -4.13 3.39 11.31 -17.17 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth -2.43 7.08 9.61 66.82 -7.87

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 13.49 11.31 0.33 86.15 -8.93

Reinsurance Recoverable ex US Aff 4,139 5,426 5,779 5,980 2,988 Net Premiums Written Growth -22.73 13.79 28.35 16.77 -42.28Retention Ratio (NPW/GPW) (%)3 53.28 58.43 71.00 73.32 82.93 Pre-Tax Operating Income Growth -91.96 NM NM 239.05 NMUnauthorized Net Recov. (ex US Aff) (%) 48.01 72.82 69.44 78.08 55.02 Net Income Growth NM NM NM 58.69 NMNonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 3.44 0.47 Loss & Loss Adj Exp Reserves Growth 12.17 23.24 2.96 18.98 -0.40Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -1.12 3.76 5.64 9.18 -47.40Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 43.28 36.22 12.57 22.89 16.53

Capital & Surplus Five-year CAGR 24.86 18.96 16.82 5.98 3.88Admitted Assets Five-year CAGR 35.95 29.61 13.96 16.56 11.97

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 3,722 3,649 4,823 6,324 6,002 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 3,722 3,649 4,823 6,324 6,002 Combined NA NA NA NA NA ACL Risk Based Capital 1,056 1,083 1,455 1,494 1,160

Risk Based Capital Ratio (TAC/ACL RBC) 352.47 336.96 331.47 423.13 517.53

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 176.23 168.48 165.74 211.57 258.76

Change in Loss & LAE Resv / Reserves 12.17 23.24 2.96 18.98 -0.40 Realized Capital Gains (Losses) -287 -316 110 240 1201 Yr Loss Reserve Dev / 1Y Prior C&S -7.13 -8.68 25.46 -9.56 -9.44 Net Unrealized Capital Gains (Losses) -581 642 123 -67 262 Yr Loss Reserve Dev / 2Y Prior C&S -11.63 -13.87 -31.35 12.11 -22.22 Dividends to Stockholders -577 24 0 0 0Loss and LAE Reserves / NPE 132.27 147.87 109.18 121.30 198.92 Dividend Payout Ratio (%) NM NM 0.00 0.00 0.001 Yr Loss Reserve Development / NPE -9.33 -8.14 16.02 -7.79 -14.75 Net Premiums Written / Avg C&S (%) 79.35 119.98 129.21 115.09 58.08IBNR/ Total Reserves 19.11 8.98 13.40 21.62 25.86 Liabilities / Capital & Surplus (%) 214.26 243.28 184.67 262.16 251.55Reserves/ Equity 138.29 173.84 135.42 122.88 128.95 Total Reins Recov Excl US Aff / C&S (%) 111.20 148.71 119.83 94.57 49.78

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

176.2 168.5 165.7

211.6

258.8

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

53.358.4

71.0 73.382.9

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Emergency Medicine Prof Assr (Las Vegas, NV)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 3,802 4,617 4,631 6,106 4,711 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 412 Commercial P&C Direct Premiums 7,039 7,303 7,715 8,424 4,431Common Stocks 2,257 1,987 3,260 1,510 3,109 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 7,039 7,303 7,715 8,424 4,431Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -3,288 -3,036 -2,238 -2,028 -739Occupied Properties 0 0 0 0 0 Net Premiums Written 3,750 4,268 5,478 6,396 3,692Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -42 302 -320 475 -356Properties for Sale 0 0 0 0 0 Net Premiums Earned 3,793 3,966 5,797 5,921 4,047

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 1,553 2,542 623 3,993 3,365 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 7,612 9,145 8,514 11,609 11,597 Net Losses Paid - Commercial 800 362 1,817 560 1,308Premiums & Considerations Due 299 493 558 357 322 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 751 82 260 754 611 Net Losses Paid 800 362 1,817 560 1,308All Other Admitted Assets 3,035 2,805 4,397 10,182 8,571 Net LAE Paid 401 692 942 866 1,006Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 11,697 12,525 13,729 22,902 21,100 Change in Loss Reserves - Commercial 529 1,416 -90 427 -455

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 29 -220 278 812 424

Unpaid Losses 3,239 4,655 4,564 4,991 4,536 Net Change in Loss and LAE Reserves 558 1,196 188 1,239 -31Unpaid Loss Adj Expenses 1,908 1,688 1,967 2,779 3,203 Losses and LAE Incurred 1,760 2,250 2,947 2,665 2,283

Loss & Loss Adj Exp Reserves 5,147 6,343 6,531 7,770 7,739 Other Underwriting Expense Incurred 2,188 2,085 2,891 2,787 1,938Unearned Premiums 1,471 1,773 1,453 1,929 1,573 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 681 374 84 27 2,670 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 631 350 838 943 170 Net Underwriting Gain (Loss) -155 -369 -40 469 -174Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 786Other Liabilities 45 37 0 5,910 2,945 Total underwriting deductions 3,948 4,335 5,837 5,452 4,221

Total Liabilities 7,975 8,877 8,906 16,578 15,098

Income ($000)Total Capital and Surplus Net Investment Income 162 197 245 226 226

Common Capital Stock 0 0 0 0 0 Net Realized Capital Gains (Losses) -287 -316 110 240 120Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus -1,403 -1,130 -607 514 239 Income after cap gains (loss) before tax -280 -488 315 935 -613Other Including Gross Contributed 5,125 4,778 5,429 5,810 5,763 Federal Income Tax -79 -97 -85 300 -312

Capital & Surplus 3,722 3,649 4,823 6,324 6,002 Net Income -201 -392 400 635 -301

Total Liabilities and C&S 11,697 12,525 13,729 22,902 21,100 Pre-tax Operating Income 7 -172 205 695 -734

Memo: Total Revenue 3,667 3,847 6,152 6,387 4,394Memo: Affiliated Investments ($000) Memo: Paid Expenses 2,743 3,162 3,147 3,743 4,472

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 3,802 4,617 4,631 6,106 4,240Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 471All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 162 197 245 226 226 Class 6 0 0 0 0 0R li d C it l G i 287 316 110 240 120Realized Capital Gains -287 -316 110 240 120Unrealized Capital Gains -581 642 123 -67 26Total Cash & Investments 7,612 9,145 8,514 11,609 11,597Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 3,802 4,617 4,631 6,106 4,711Total Preferred Stock (incl Nonadmitted) 0 0 0 0 412Total Common Stock (incl Nonadmitted) 2,257 1,987 3,260 1,510 3,109Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 3,414 3,386 2,264 3,574 2,598Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 4,711 4,711 4,643 4,310 18,375Common Stock 3,109 3,109 2,894 -- 9,112Preferred Stock 412 412 407 -- 1,231Total 8,232 8,232 7,944 4,310 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.00 1.00 1.00 1.10Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 49.94 50.48 54.39 52.60 40.63Common Stocks / C&S 60.65 54.45 67.59 23.87 51.80Unaff common stock/Invested Assets 29.66 21.72 38.29 13.00 26.81

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 6.871. Ohio 895 1. Med Prof Liab 4,431 Cash/Invested Assets 20.40 27.79 7.32 34.40 29.012. Indiana 872 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Florida 820 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Kentucky 606 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Oklahoma 392 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 846 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 2.56 3.94 4.07 1.56 1.52

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 6.42 0.66 1.89 3.29 2.89

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA 28.52 12.35 4.79 -9.05 All other admitted assets/Total Assets 25.95 22.39 32.03 44.46 40.62National DPW ($000) 7,039 7,303 7,715 8,424 4,431 Invested Assets/Total Assets 65.08 73.02 62.02 50.69 54.96Adjusted Loss Ratio 50.86 50.96 36.14 12.12 28.24 Investment Income/Total Assets 1.38 1.58 1.78 0.99 1.07

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 40.6% Preferred Stocks - 3.6%

Common Stocks - 26.8% Mortgage Loans - 0.0%

Other Invstmts - 29.0% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Ohio - 20.2% Indiana - 19.7%

Florida - 18.5% Kentucky - 13.7%

Oklahoma - 8.9% All other - 19.1%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Global Hawk Insurance Co a RRG (Burlington, VT)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

84 Pine Street NAIC Company Code : 11948 Total Assets 4,235 5,914 7,474 9,768 14,224Suite 450 Business Focus : Commercial Property Focus Policyholder Surplus 1,949 3,117 4,171 4,348 4,671Burlington, VT 05401-4467 Geographic Focus: Regional - Western Quadrant Total Liabilities 2,286 2,797 3,303 5,419 9,553

NAIC Ownership Structure: Risk Retention Group Net Income -288 -28 1,387 221 294Tax Identification Number : 20-0073152 Total Revenue 2,299 671 2,734 4,047 6,218

Direct Premiums Written -1,150 2,081 3,637 5,403 8,790Net Premiums Written 750 1,873 3,610 4,995 8,177

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 2,168 647 2,714 4,006 6,196

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 2,183 1,426 1,327 2,076 4,035Demotech Financial Strength Rating A 04/08/13 Affirm Loss & LAE Reserves/ NPE (%) 148.73 240.71 55.46 48.39 44.36S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) -15.44 -0.99 40.45 5.74 6.29Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.39 0.60 0.87 1.15 1.75Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Stephen M. Brown Auditor Saslow Lufkin & Buggy LLPPhone : (802) 651-0168 Actuary CapRisk Consulting GroupFax : (802) 651-0175 CEO --Email : steve.brown@kane-group.com CFO --

President Jasbir S. Thandi

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.65 0.64 0.41 0.61 0.25Net Investment Income/Earned Premiums 17.45 1.28 0.55 0.82 0.27Return on Average Equity (C&S) -15.44 -0.99 40.45 5.74 6.29Return on Avg Assets -3.99 -0.57 20.82 2.66 2.54Loss and LAE Ratio 49.99 48.06 13.14 62.88 64.25Expense Ratio 200.32 20.74 27.42 26.16 23.76Loss Ratio 39.74 -37.90 1.06 47.92 47.66Combined Ratio 250.31 68.79 40.57 89.04 88.01Operating Ratio 244.28 65.08 39.83 88.01 87.65Investment ratio 6.04 3.71 0.74 1.03 0.36

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 157.30 36.03 190.17 138.55 113.06Cash, Common & Liquid Bonds / Liabilities 157.30 133.04 190.17 138.55 113.06Cash & Short-Term Investments / C&S 184.57 32.33 150.63 172.67 231.24Liabilities / Liquid Assets (IRIS Ratio) 64.00 52.00 53.00 72.00 88.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 164.72 146.65 190.43 142.24 115.35Cash From Underwriting ($000) -3,031 -677 2,870 1,809 3,211Net Cash From Operations ($000) -2,803 -643 2,882 1,834 3,218Underwriting Cash Flow Ratio 25.69 52.04 297.26 158.08 182.07Operating Cash Flow Ratio 23.63 51.33 297.26 158.62 182.59Unassigned Funds / Total Assets -41.81 -29.82 -10.44 -7.45 -3.05

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 87 124 188NPW to Policyholders' Surplus 300 --- 87 115 175Change in Net Premiums Written 33 -33 93* 38* 64*Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 44 69 88

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 0 4* 0 6* 0 2*

MSA: Burlington-South Burlington, VT (Metro)

Distribution Channel: Direct Response

64.0

52.0 53.0

72.0

88.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

250.3

68.840.6

89.0 88.0

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

50.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 0.4* 0.6* 0.2*

Loss Adjustment Expense Ratio 10.25 85.95 12.08 14.96 16.59 Gross Change in Policyholders' Surplus 50 -10 34 4 7Net Commission Ratio 104.64 6.14 11.22 14.14 16.66 Net Change in Adj Policyholders' Surplus 25 -10 32* 1 7Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 53 72 88Tax, License & Fees Ratio 2.44 1.10 2.19 2.41 2.22 Agents' Bal to Policyholders' Surplus 40 --- 14 25 30Admin & Other Expense Ratio 93.25 13.50 14.01 9.61 4.89 1-Yr Resv Dev to Policyholders' Surplus 20 --- -14 6 -4Gross Premiums Written ($000)3 -1,150 2,081 3,637 5,403 8,790 2-Yr Resv Dev to Policyholders' Surplus 20 --- -24 1 11Loss & Loss Adj Expense ($000) 1,084 311 357 2,519 3,981 Est Curr Resv Defi/Policyholders' Surplus 25 --- 44* 83* -11Other Underwriting Exp Incurred ($000) 1,503 388 990 1,307 1,943 *Indicates an unusual value.Net Underwriting Gains ($000) -419 -52 1,367 180 272 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio NM 90.00 99.27 92.44 93.03 complements of each ratio.Effective Tax Rate 0.00 0.00 0.00 0.00 0.00

Pre-Tax Operating Margin -12.52 -4.19 50.73 5.47 4.73 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth -57.28 39.65 26.37 30.69 45.63

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth -70.22 22.33 18.10 64.05 76.28

Reinsurance Recoverable ex US Aff 0 167 287 -129 -272 Net Premiums Written Growth -79.43 149.60 92.75 38.34 63.72Retention Ratio (NPW/GPW) (%)3 NM 90.00 99.27 92.44 93.03 Pre-Tax Operating Income Growth NM NM NM -84.04 32.89Unauthorized Net Recov. (ex US Aff) (%) NA 0.00 0.00 0.00 0.00 Net Income Growth NM NM NM -84.04 32.89Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth -47.70 -34.71 -6.89 56.43 94.34Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth NM NM 74.75 48.56 62.69Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 362.43 254.44 4.36 -2.35 4.47

Capital & Surplus Five-year CAGR 10.65 19.11 30.60 17.61 15.87Admitted Assets Five-year CAGR 34.22 35.29 14.69 3.98 7.49

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 1,949 3,117 4,171 4,348 4,671 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 1,949 3,117 4,171 4,348 4,671 Combined NA NA NA NA NA ACL Risk Based Capital 725 244 288 376 917

Risk Based Capital Ratio (TAC/ACL RBC) 268.68 1,279.96 1,446.27 1,157.14 509.49

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 134.34 639.98 723.14 578.57 254.74

Change in Loss & LAE Resv / Reserves -47.70 -34.71 -6.89 56.43 94.34 Realized Capital Gains (Losses) 0 0 0 0 01 Yr Loss Reserve Dev / 1Y Prior C&S 8.27 -3.02 -13.83 6.43 -3.70 Net Unrealized Capital Gains (Losses) 0 0 0 0 02 Yr Loss Reserve Dev / 2Y Prior C&S 55.58 13.32 -23.87 1.05 11.21 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 148.73 240.71 55.46 48.39 44.36 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE 8.53 -9.09 -15.89 6.70 -2.60 Net Premiums Written / Avg C&S (%) 40.25 66.20 105.30 129.52 174.96IBNR/ Total Reserves 79.37 67.41 27.30 26.70 13.40 Liabilities / Capital & Surplus (%) 117.34 89.73 79.21 124.63 204.53Reserves/ Equity 112.05 45.74 31.83 47.75 86.39 Total Reins Recov Excl US Aff / C&S (%) 0.00 5.36 6.88 -2.97 -5.82

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

134.3

640.0723.1

578.6

254.7

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

90.0

99.3

92.4 93.0

-2,000

0

2,000

4,000

6,000

8,000

10,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Global Hawk Insurance Co a RRG (Burlington, VT)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 0 0 0 0 0 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums -1,150 2,081 3,637 5,403 8,790Common Stocks 0 2,713 0 0 0 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written -1,150 2,081 3,637 5,403 8,790Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 1,900 -208 -26 -408 -613Occupied Properties 0 0 0 0 0 Net Premiums Written 750 1,873 3,610 4,995 8,177Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -1,418 1,226 897 989 1,981Properties for Sale 0 0 0 0 0 Net Premiums Earned 2,168 647 2,714 4,006 6,196

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 3,597 1,008 6,282 7,508 10,801 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 3,597 3,721 6,282 7,508 10,801 Net Losses Paid - Commercial 2,266 715 227 1,321 1,662Premiums & Considerations Due 629 1,571 601 1,087 1,412 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 0 0 0 0 871 Net Losses Paid 2,266 715 227 1,321 1,662All Other Admitted Assets 10 622 591 1,150 1,139 Net LAE Paid 836 268 314 449 360Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 4,235 5,914 7,474 9,768 14,224 Change in Loss Reserves - Commercial -1,404 -960 -198 599 1,291

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves -614 288 14 151 668

Unpaid Losses 2,157 1,197 998 1,597 2,888 Net Change in Loss and LAE Reserves -2,018 -672 -184 749 1,959Unpaid Loss Adj Expenses 27 229 329 480 1,147 Losses and LAE Incurred 1,084 311 357 2,519 3,981

Loss & Loss Adj Exp Reserves 2,183 1,426 1,327 2,076 4,035 Other Underwriting Expense Incurred 1,503 388 990 1,307 1,943Unearned Premiums 0 1,226 2,122 3,111 5,093 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 0 -30 -286 129 272 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 103 149 139 100 153 Net Underwriting Gain (Loss) -419 -52 1,367 180 272Payable to Parent, Subs & Affiliates 0 0 1 2 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 0 27 0 0 0 Total underwriting deductions 2,587 700 1,347 3,825 5,924

Total Liabilities 2,286 2,797 3,303 5,419 9,553

Income ($000)Total Capital and Surplus Net Investment Income 131 24 20 41 22

Common Capital Stock 1,064 1,142 1,212 1,337 1,567 Net Realized Capital Gains (Losses) 0 0 0 0 0Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 600 302 202 202 0 All Other Income 0 0 0 0 0Unassigned Surplus -1,771 -1,764 -781 -728 -434 Income after cap gains (loss) before tax -288 -28 1,387 221 294Other Including Gross Contributed 2,055 3,438 3,538 3,538 3,538 Federal Income Tax 0 0 0 0 0

Capital & Surplus 1,949 3,117 4,171 4,348 4,671 Net Income -288 -28 1,387 221 294

Total Liabilities and C&S 4,235 5,914 7,474 9,768 14,224 Pre-tax Operating Income -288 -28 1,387 221 294

Memo: Total Revenue 2,299 671 2,734 4,047 6,218Memo: Affiliated Investments ($000) Memo: Paid Expenses 2,347 615 1,314 1,794 2,251

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 0 0 0 0 0Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 131 24 20 41 22 Class 6 0 0 0 0 0R li d C it l G i 0 0 0 0 0Realized Capital Gains 0 0 0 0 0Unrealized Capital Gains 0 0 0 0 0Total Cash & Investments 3,597 3,721 6,282 7,508 10,801Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 0 0 0 0 0Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 2,713 0 0 0Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) NA NA NA NA NAPrivately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) NA NA NA NA NAMortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 0 0 0 0 0Common Stock 0 0 0 -- 0Preferred Stock 0 0 0 -- 0Total 0 0 0 0 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) NA NA NA NA NABonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 0.00 0.00 0.00 0.00 0.00Common Stocks / C&S 0.00 87.05 0.00 0.00 0.00Unaff common stock/Invested Assets 0.00 72.92 0.00 0.00 0.00

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. California 5,915 1. Comm'l Auto St 8,790 Cash/Invested Assets 100.00 27.08 100.00 100.00 100.002. Texas 2,875 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Alaska 0 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Alabama 0 4. Comm'l Multi Prl 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Arkansas 0 5. Fidelity & Surety 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 0 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 14.84 26.57 8.04 11.13 9.93

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.00 0.00 0.00 0.00 6.13

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.23 0.00DPW 5 Yr CAGR NA NA 1.21 0.27 8.13 All other admitted assets/Total Assets 0.24 10.51 7.90 11.78 8.01National DPW ($000) -1,150 2,081 3,637 5,403 8,790 Invested Assets/Total Assets 84.92 62.92 84.05 76.87 75.93Adjusted Loss Ratio 37.55 -34.24 1.00 43.49 43.38 Investment Income/Total Assets 3.09 0.41 0.27 0.42 0.16

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 0.0% Preferred Stocks - 0.0%

Common Stocks - 0.0% Mortgage Loans - 0.0%

Other Invstmts - 100.0% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

California - 67.3% Texas - 32.7%

Alaska - 0.0% Alabama - 0.0%

Arkansas - 0.0% All other - 0.0%

Comm'l Auto St - 100.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Multi Prl - 0.0%

Fidelity & Surety - 0.0%

All Other - 0.0%

when an inter-company pooling arrangement exists.

HlthCare Industry Liab Recpl (Ann Arbor, MI)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

201 South Main Street NAIC Company Code : 11832 Total Assets 123,451 136,164 154,307 158,899 42,070Suite 200 Business Focus : P&C Minimum NPW Policyholder Surplus 5,518 6,226 7,484 8,688 9,127Ann Arbor, MI 48104-2153 Geographic Focus: Geography Minimum NPW Total Liabilities 117,933 129,939 146,823 150,211 32,944

NAIC Ownership Structure: Risk Retention Group Net Income 1,131 744 1,147 1,162 375Tax Identification Number : 43-2032415 Total Revenue 3,488 2,861 3,436 4,153 4,016

Direct Premiums Written 34,828 35,305 40,369 42,136 42,354Net Premiums Written 2,969 2,967 3,565 3,736 3,745

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 3,388 2,836 3,170 3,708 3,660

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 82,722 95,933 103,129 107,924 9,198Demotech Financial Strength Rating A 03/13/13 Affirm Loss & LAE Reserves/ NPE (%) 420.14 3,135.50 3,133.13 2,843.53 574.35S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 34.05 21.51 23.43 22.01 5.12Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.54 0.48 0.48 0.43 0.41Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Peter M. Feeney Auditor BDO USA LLPPhone : (734) 996-2700 Actuary Demotech Inc.Fax : (734) 996-1261 CEO --Email : peter.feeney@chelsearhone.com CFO --

President Peter M. Feeney

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 1.10 0.20 1.77 2.54 1.90Net Investment Income/Earned Premiums 3.36 0.85 7.48 11.90 9.50Return on Average Equity (C&S) 22.60 12.58 16.55 14.30 4.11Return on Avg Assets 0.98 0.58 0.81 0.76 0.73Loss and LAE Ratio 75.90 73.08 75.00 79.79 110.12Expense Ratio -26.52 -16.28 -15.81 -15.93 -12.84Loss Ratio 51.40 57.59 52.50 57.91 69.13Combined Ratio 49.38 56.80 59.19 63.86 97.28Operating Ratio 46.44 55.91 50.78 51.87 87.56Investment ratio 2.94 0.89 8.41 11.99 9.72

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 9.64 7.52 2.07 2.09 10.38Cash, Common & Liquid Bonds / Liabilities 9.64 10.93 11.15 12.47 59.53Cash & Short-Term Investments / C&S 206.01 157.00 40.66 36.17 37.48Liabilities / Liquid Assets (IRIS Ratio) 916.00 832.00 805.00 721.00 101.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 90.50 94.59 96.15 96.57 1,084.97Cash From Underwriting ($000) 4,768 3,389 2,297 2,537 824Net Cash From Operations ($000) 4,258 2,843 2,275 2,373 1,101Underwriting Cash Flow Ratio -526.94 -629.00 2,056.51 959.49 132.15Operating Cash Flow Ratio -607.48 -758.05 2,439.75 1,213.55 138.00Unassigned Funds / Total Assets 3.58 3.76 4.14 4.78 19.08

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 545 490 469NPW to Policyholders' Surplus 300 --- 48 43 41Change in Net Premiums Written 33 -33 20 5 0Surplus Aid to Policyholders' Surplus 15 --- 74* 76* 75*Two-Year Overall Operating Ratio 100 --- 53 51 70

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 1 7* 2 5* 1 8*

MSA: Ann Arbor, MI (Metro)

Distribution Channel: General Agnt/Managing General Agnt, Independent Agency

916.0832.0 805.0

721.0

101.0

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

49.456.8 59.2 63.9

97.3

0.00

5.00

10.00

15.00

20.00

25.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 1.7* 2.5* 1.8*

Loss Adjustment Expense Ratio 24.50 15.49 22.50 21.88 40.99 Gross Change in Policyholders' Surplus 50 -10 20 16 5Net Commission Ratio -35.85 -23.04 -19.54 -19.70 -17.24 Net Change in Adj Policyholders' Surplus 25 -10 20 16 5Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 805* 721* 101*Tax, License & Fees Ratio 4.35 1.01 0.38 0.52 0.76 Agents' Bal to Policyholders' Surplus 40 --- 47* 21 34Admin & Other Expense Ratio 4.97 5.75 3.35 3.26 3.64 1-Yr Resv Dev to Policyholders' Surplus 20 --- -2 4 10Gross Premiums Written ($000)3 34,828 35,305 40,767 42,568 42,796 2-Yr Resv Dev to Policyholders' Surplus 20 --- 3 3 12Loss & Loss Adj Expense ($000) 2,572 2,072 2,377 2,959 4,031 Est Curr Resv Defi/Policyholders' Surplus 25 --- -144 177* 1,146*Other Underwriting Exp Incurred ($000) -787 -483 -564 -595 -481 *Indicates an unusual value.Net Underwriting Gains ($000) 1,604 1,246 1,356 1,345 110 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 8.52 8.40 8.75 8.78 8.75 complements of each ratio.Effective Tax Rate 33.63 41.51 29.98 37.77 16.16

Pre-Tax Operating Margin 48.84 44.45 47.23 43.08 11.61 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 11.13 10.30 13.32 2.98 -73.52

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 10.53 10.18 12.99 2.31 -78.07

Reinsurance Recoverable ex US Aff 78,315 92,840 103,693 106,689 101,581 Net Premiums Written Growth -15.94 -0.06 20.16 4.78 0.25Retention Ratio (NPW/GPW) (%)3 8.52 8.40 8.75 8.78 8.75 Pre-Tax Operating Income Growth -1.37 -25.35 27.61 10.25 -73.93Unauthorized Net Recov. (ex US Aff) (%) 91.24 88.93 85.68 87.88 86.02 Net Income Growth -1.45 -34.21 54.13 1.34 -67.76Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.97 1.02 1.03 Loss & Loss Adj Exp Reserves Growth NM 15.97 7.50 4.65 -91.48Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -8.57 1.37 14.35 4.38 0.52Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 25.53 21.50 19.75 13.07 -20.95

Capital & Surplus Five-year CAGR 35.97 29.77 27.80 21.81 15.78Admitted Assets Five-year CAGR 25.93 21.83 20.08 13.46 -17.65

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 5,518 6,226 7,484 8,688 9,127 Environmental NA NA NA NA NA RBC - Total Adjusted Capital NA NA NA NA 9,127 Combined NA NA NA NA NA ACL Risk Based Capital NA NA NA NA 6,017

Risk Based Capital Ratio (TAC/ACL RBC) NA NA NA NA 151.69

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) NA NA NA NA 75.84

Change in Loss & LAE Resv / Reserves NM 15.97 7.50 4.65 -91.48 Realized Capital Gains (Losses) 0 0 15 78 -201 Yr Loss Reserve Dev / 1Y Prior C&S 5.13 3.59 -1.93 3.98 10.34 Net Unrealized Capital Gains (Losses) 0 -36 112 42 642 Yr Loss Reserve Dev / 2Y Prior C&S 6.60 7.82 3.00 2.70 12.50 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 420.14 3,135.50 3,133.13 2,843.53 574.35 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE 6.64 6.98 -3.79 8.04 24.53 Net Premiums Written / Avg C&S (%) 59.35 50.18 51.47 45.97 41.09IBNR/ Total Reserves 3.31 3.44 3.17 3.16 40.37 Liabilities / Capital & Surplus (%) 2,137.22 2,087.09 1,961.85 1,728.88 360.97Reserves/ Equity 1,499.12 1,540.89 1,378.01 1,242.17 100.78 Total Reins Recov Excl US Aff / C&S (%) NM NM NM NM NM

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

75.8

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

8.5

8.4

8.7 8.8 8.8

05,000

10,00015,00020,00025,00030,00035,00040,00045,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

HlthCare Industry Liab Recpl (Ann Arbor, MI)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 0 4,375 13,469 15,822 16,510 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 34,828 35,305 40,369 42,136 42,354Common Stocks 0 0 0 0 0 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 34,828 35,305 40,369 42,136 42,354Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -31,859 -32,338 -36,804 -38,400 -38,609Occupied Properties 0 0 0 0 0 Net Premiums Written 2,969 2,967 3,565 3,736 3,745Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -419 132 396 28 85Properties for Sale 0 0 0 0 0 Net Premiums Earned 3,388 2,836 3,170 3,708 3,660

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 11,368 9,775 3,043 3,142 3,421 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 11,368 14,149 16,511 18,965 19,931 Net Losses Paid - Commercial 287 322 803 1,458 2,436Premiums & Considerations Due 15,227 13,050 16,618 14,501 15,756 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 77,169 89,072 95,384 99,623 289 Net Losses Paid 287 322 803 1,458 2,436All Other Admitted Assets 19,688 19,893 25,794 25,810 6,094 Net LAE Paid 250 423 414 1,264 1,625Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 123,451 136,164 154,307 158,899 42,070 Change in Loss Reserves - Commercial 1,457 1,311 861 689 95

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 580 16 299 -453 -124

Unpaid Losses 58,145 71,996 81,585 84,019 7,084 Net Change in Loss and LAE Reserves 2,035 1,326 1,160 237 -30Unpaid Loss Adj Expenses 24,577 23,937 21,544 23,904 2,114 Losses and LAE Incurred 2,572 2,072 2,377 2,959 4,031

Loss & Loss Adj Exp Reserves 82,722 95,933 103,129 107,924 9,198 Other Underwriting Expense Incurred -787 -483 -564 -595 -481Unearned Premiums 16,375 17,171 21,884 22,197 2,002 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 13,867 11,910 15,218 13,217 14,367 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 4,269 4,180 5,605 5,948 6,410 Net Underwriting Gain (Loss) 1,604 1,246 1,356 1,345 110Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 700 745 987 926 967 Total underwriting deductions 1,784 1,589 1,813 2,364 3,550

Total Liabilities 117,933 129,939 146,823 150,211 32,944

Income ($000)Total Capital and Surplus Net Investment Income 100 25 267 445 356

Common Capital Stock 0 0 0 0 0 Net Realized Capital Gains (Losses) 0 0 15 78 -20Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus 4,418 5,126 6,384 7,588 8,027 Income after cap gains (loss) before tax 1,704 1,272 1,638 1,867 447Other Including Gross Contributed 1,100 1,100 1,100 1,100 1,100 Federal Income Tax 573 528 491 705 72

Capital & Surplus 5,518 6,226 7,484 8,688 9,127 Net Income 1,131 744 1,147 1,162 375

Total Liabilities and C&S 123,451 136,164 154,307 158,899 42,070 Pre-tax Operating Income 1,704 1,272 1,623 1,789 466

Memo: Total Revenue 3,488 2,861 3,451 4,231 3,997Memo: Affiliated Investments ($000) Memo: Paid Expenses 54 32 -1,370 175 714

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 0 4,430 13,327 15,594 16,191Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 100 25 267 445 356 Class 6 0 0 0 0 0R li d C it l G i 0 0 15 78 20Realized Capital Gains 0 0 15 78 -20Unrealized Capital Gains 0 -36 112 42 64Total Cash & Investments 11,368 14,149 16,511 18,965 19,931Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 0 4,430 13,327 15,594 16,191Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 0 0 0 0Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) NA 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) NA 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 121 4,486 2,000 1,043

RMBS ExposureTotal: LT Bond, Res MBS 0 0 694 2,449 3,264

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 2,709 3,836Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 1,533Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 16,191 16,510 16,519 15,323 64,543Common Stock 0 0 0 -- 0Preferred Stock 0 0 0 -- 0Total 16,191 16,510 16,519 15,323 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) NA 1.00 1.00 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 0.00 30.92 81.57 83.43 82.84Common Stocks / C&S 0.00 0.00 0.00 0.00 0.00Unaff common stock/Invested Assets 0.00 0.00 0.00 0.00 0.00

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Michigan 7,708 Cash/Invested Assets 100.00 69.08 18.43 16.57 17.162. Illinois 4,411 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Ohio 3,231 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Tennessee 2,467 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. North Carolina 1,838 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 22,699 All Other Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 12.33 9.58 10.77 9.13 37.45

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 62.51 65.42 61.81 62.70 0.69

Market Share Ratio 0.01 0.01 0.01 0.01 0.01 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA NA 5.73 3.59 2.14 All other admitted assets/Total Assets 15.95 14.61 16.72 16.24 14.48National DPW ($000) 34,828 35,305 40,369 42,136 42,354 Invested Assets/Total Assets 9.21 10.39 10.70 11.93 47.38Adjusted Loss Ratio 51.99 53.63 52.50 50.04 63.50 Investment Income/Total Assets 0.08 0.02 0.17 0.28 0.85

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 82.8% Preferred Stocks - 0.0%

Common Stocks - 0.0% Mortgage Loans - 0.0%

Other Invstmts - 17.2% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Michigan - 18.2% Illinois - 10.4%

Ohio - 7.6% Tennessee - 5.8%

North Carolina - 4.3% All other - 53.6%

when an inter-company pooling arrangement exists.

J.M. Woodworth RRG Inc. (Alpharetta, GA)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

3655 Brookside Parkway NAIC Company Code : 12594 Total Assets 8,631 11,845 14,005 16,584 20,928Suite 200 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 5,089 5,152 5,165 4,254 4,388Alpharetta, GA 30022-1430 Geographic Focus: Regional - Northeastern Quadrant Total Liabilities 3,542 6,693 8,840 12,330 16,541

NAIC Ownership Structure: Risk Retention Group Net Income 166 -861 -334 -968 -210Tax Identification Number : 20-4803611 Total Revenue 2,304 3,342 4,427 7,032 7,386

Direct Premiums Written 3,913 5,878 7,483 8,460 9,923Net Premiums Written 3,159 4,034 4,941 7,906 8,863

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 2,269 3,266 4,386 6,962 7,315

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 979 1,765 3,309 7,750 10,922Demotech Financial Strength Rating A 03/13/13 Affirm Loss & LAE Reserves/ NPE (%) 22.33 38.13 51.97 84.48 126.92S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) -4.90 -17.62 -9.76 -33.53 -9.47Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.62 0.78 0.96 1.86 2.02Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Carolyn Verde Auditor Johnson Lambert LLPPhone : (678) 781-2400 Actuary Deloitte Consulting LLPFax : (678) 781-2450 CEO --Email : cverde@usre.com CFO --

President Seth Evan Kronenberg

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 0.47 1.17 0.54 0.77 0.55Net Investment Income/Earned Premiums 0.51 1.68 0.83 0.89 0.80Return on Average Equity (C&S) 5.09 -17.45 -6.66 -20.78 -4.80Return on Avg Assets 3.08 -8.95 -2.69 -5.92 -1.15Loss and LAE Ratio 48.06 65.36 63.22 86.32 71.71Expense Ratio 43.47 51.48 43.39 32.69 28.84Loss Ratio 18.55 28.38 45.29 47.80 40.62Combined Ratio 91.53 116.84 106.61 119.01 100.55Operating Ratio 90.82 114.77 105.68 118.00 99.58Investment ratio 0.71 2.07 0.93 1.01 0.97

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 11.02 25.30 14.39 26.33 17.10Cash, Common & Liquid Bonds / Liabilities 162.45 99.37 93.55 94.77 87.12Cash & Short-Term Investments / C&S 7.67 32.87 24.62 76.30 64.45Liabilities / Liquid Assets (IRIS Ratio) 57.00 97.00 101.00 101.00 107.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 230.58 143.89 119.74 119.89 102.33Cash From Underwriting ($000) 1,751 -42 1,434 3,475 2,500Net Cash From Operations ($000) 1,711 99 1,454 3,565 2,595Underwriting Cash Flow Ratio 256.66 98.70 138.31 243.83 148.44Operating Cash Flow Ratio 256.66 98.70 138.31 242.99 148.44Unassigned Funds / Total Assets -9.70 -14.61 -14.06 -17.81 -15.11

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 145 199 226NPW to Policyholders' Surplus 300 --- 96 186 202Change in Net Premiums Written 33 -33 22 60* 12Surplus Aid to Policyholders' Surplus 15 --- 0 1 0Two-Year Overall Operating Ratio 100 --- 110* 113* 108*

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 0 5* 0 7* 0 5*

MSA: Atlanta-Sandy Springs-Marietta, GA (Metro)

Distribution Channel: Broker

57.0

97.0 101.0 101.0107.0

0

5,000

10,000

15,000

20,000

25,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

91.5

116.8106.6

119.0

100.5

-25.00

-20.00

-15.00

-10.00

-5.00

0.00

5.00

10.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 0.5* 0.7* 0.5*

Loss Adjustment Expense Ratio 29.51 36.98 17.93 38.52 31.10 Gross Change in Policyholders' Surplus 50 -10 0 -18* 3Net Commission Ratio 5.68 6.20 10.67 7.23 7.57 Net Change in Adj Policyholders' Surplus 25 -10 -5 -19* -5Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 101* 101* 107*Tax, License & Fees Ratio 2.95 2.32 4.73 2.45 2.73 Agents' Bal to Policyholders' Surplus 40 --- 12 17 17Admin & Other Expense Ratio 34.84 42.96 27.99 23.01 18.53 1-Yr Resv Dev to Policyholders' Surplus 20 --- 1 48* -13Gross Premiums Written ($000)3 3,913 5,878 7,483 8,460 9,923 2-Yr Resv Dev to Policyholders' Surplus 20 --- 3 68* 39*Loss & Loss Adj Expense ($000) 1,090 2,135 2,773 6,009 5,245 Est Curr Resv Defi/Policyholders' Surplus 25 --- -19 57* -61Other Underwriting Exp Incurred ($000) 1,373 2,077 2,144 2,585 2,556 *Indicates an unusual value.Net Underwriting Gains ($000) -195 -946 -531 -1,632 -486 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 80.75 68.63 66.03 93.45 89.31 complements of each ratio.Effective Tax Rate NM NM NM NM NM

Pre-Tax Operating Margin -6.96 -26.02 -11.06 -22.21 -5.61 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 124.84 37.24 18.23 18.41 26.20

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 144.62 88.95 32.08 39.48 34.15

Reinsurance Recoverable ex US Aff -90 -879 -953 2,096 2,182 Net Premiums Written Growth 508.32 27.69 22.47 60.02 12.10Retention Ratio (NPW/GPW) (%)3 80.75 68.63 66.03 93.45 89.31 Pre-Tax Operating Income Growth NM NM NM NM NMUnauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 0.00 0.00 0.00 Net Income Growth NM NM NM NM NMNonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 755.83 80.34 87.50 134.19 40.92Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth 310.39 50.24 27.29 13.07 17.29Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR NA 75.14 63.21 58.16 62.76

Capital & Surplus Five-year CAGR NA 35.97 25.99 15.73 12.91Admitted Assets Five-year CAGR NA 53.18 43.58 38.15 40.38

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 5,089 5,152 5,165 4,254 4,388 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 5,089 5,152 5,165 4,254 4,388 Combined NA NA NA NA NA ACL Risk Based Capital 555 945 1,034 1,461 1,502

Risk Based Capital Ratio (TAC/ACL RBC) 917.53 545.30 499.68 291.17 292.08

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 458.76 272.65 249.84 145.59 146.04

Change in Loss & LAE Resv / Reserves 755.83 80.34 87.50 134.19 40.92 Realized Capital Gains (Losses) 8 -46 -10 74 861 Yr Loss Reserve Dev / 1Y Prior C&S 7.36 5.40 0.74 47.98 -12.95 Net Unrealized Capital Gains (Losses) 30 -32 95 -16 22 Yr Loss Reserve Dev / 2Y Prior C&S -0.97 1.34 3.00 67.75 39.47 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 22.33 38.13 51.97 84.48 126.92 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE 7.76 8.42 0.87 35.59 -7.53 Net Premiums Written / Avg C&S (%) 96.65 81.76 98.48 169.73 202.38IBNR/ Total Reserves 28.08 31.19 43.86 40.28 32.66 Liabilities / Capital & Surplus (%) 69.60 129.90 171.15 289.82 376.98Reserves/ Equity 19.23 34.26 64.07 182.18 248.93 Total Reins Recov Excl US Aff / C&S (%) -1.77 -17.06 -18.45 49.27 49.73

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

458.8

272.7 249.8

145.6 146.0

0

1,000

2,000

3,000

4,000

5,000

6,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

80.8

68.6 66.0

93.4 89.3

0

2,000

4,000

6,000

8,000

10,000

12,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

J.M. Woodworth RRG Inc. (Alpharetta, GA)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 5,364 4,957 6,998 8,438 10,580 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 3,913 5,878 7,483 8,460 9,923Common Stocks 0 0 0 0 1,003 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 3,913 5,878 7,483 8,460 9,923Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -753 -1,844 -2,542 -555 -1,061Occupied Properties 0 0 0 0 0 Net Premiums Written 3,159 4,034 4,941 7,906 8,863Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 891 768 554 943 1,548Properties for Sale 0 0 0 0 0 Net Premiums Earned 2,269 3,266 4,386 6,962 7,315

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 390 1,694 1,272 3,246 2,828 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 5,755 6,651 8,269 11,684 14,411 Net Losses Paid - Commercial 0 600 437 515 650Premiums & Considerations Due 660 905 1,025 1,245 1,849 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 900 2,848 2,973 1,136 1,765 Net Losses Paid 0 600 437 515 650All Other Admitted Assets 1,317 1,442 1,738 2,518 2,904 Net LAE Paid 226 748 792 1,053 1,424Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 8,631 11,845 14,005 16,584 20,928 Change in Loss Reserves - Commercial 421 327 1,549 2,813 2,321

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 444 460 -5 1,628 851

Unpaid Losses 421 748 2,297 5,110 7,431 Net Change in Loss and LAE Reserves 864 786 1,544 4,441 3,172Unpaid Loss Adj Expenses 558 1,017 1,012 2,641 3,492 Losses and LAE Incurred 1,090 2,135 2,773 6,009 5,245

Loss & Loss Adj Exp Reserves 979 1,765 3,309 7,750 10,922 Other Underwriting Expense Incurred 1,373 2,077 2,144 2,585 2,556Unearned Premiums 1,478 2,246 2,801 3,744 5,292 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 753 2,034 2,391 597 0 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 244 505 259 158 255 Net Underwriting Gain (Loss) -195 -946 -531 -1,632 -486Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 88 143 80 79 71 Total underwriting deductions 2,464 4,211 4,917 8,594 7,801

Total Liabilities 3,542 6,693 8,840 12,330 16,541

Income ($000)Total Capital and Surplus Net Investment Income 16 68 41 70 71

Common Capital Stock 41 50 52 55 58 Net Realized Capital Gains (Losses) 8 -46 -10 74 86Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 2,150 2,150 2,150 1,950 1,950 All Other Income 19 8 0 0 1Unassigned Surplus -837 -1,730 -1,970 -2,954 -3,161 Income after cap gains (loss) before tax -153 -915 -499 -1,488 -329Other Including Gross Contributed 3,736 4,683 4,933 5,203 5,541 Federal Income Tax -319 -54 -165 -520 -119

Capital & Surplus 5,089 5,152 5,165 4,254 4,388 Net Income 166 -861 -334 -968 -210

Total Liabilities and C&S 8,631 11,845 14,005 16,584 20,928 Pre-tax Operating Income -160 -870 -490 -1,562 -415

Memo: Total Revenue 2,311 3,296 4,417 7,106 7,472Memo: Affiliated Investments ($000) Memo: Paid Expenses 1,596 2,580 3,205 3,766 3,920

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 5,364 4,957 6,998 8,438 10,580Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 16 68 41 70 71 Class 6 0 0 0 0 0R li d C it l G i 8 46 10 74 86Realized Capital Gains 8 -46 -10 74 86Unrealized Capital Gains 30 -32 95 -16 2Total Cash & Investments 5,755 6,651 8,269 11,684 14,411Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 5,364 4,957 6,998 8,438 10,580Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 0 0 0 1,003Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 2,853

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 543

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 997 1,488 1,256Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 10,580 10,580 10,556 10,268 41,983Common Stock 1,003 1,003 1,003 -- 3,008Preferred Stock 0 0 0 -- 0Total 11,583 11,583 11,559 10,268 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.00 1.00 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 93.22 74.53 84.62 72.22 73.42Common Stocks / C&S 0.00 0.00 0.00 0.00 22.86Unaff common stock/Invested Assets 0.00 0.00 0.00 0.00 6.96

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. New York 9,883 Cash/Invested Assets 6.78 25.47 15.38 27.78 19.622. New Jersey 23 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Connecticut 17 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Alaska 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Alabama 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 0 All Other Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 7.65 7.64 7.32 7.51 8.83

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 10.43 24.04 21.23 6.85 8.43

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA NA NA 72.05 59.76 All other admitted assets/Total Assets 15.26 12.18 12.41 15.19 13.88National DPW ($000) 3,913 5,878 7,483 8,460 9,923 Invested Assets/Total Assets 66.67 56.15 59.05 70.46 68.86Adjusted Loss Ratio 17.09 23.18 29.90 59.68 33.52 Investment Income/Total Assets 0.19 0.57 0.29 0.42 0.34

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 73.4% Preferred Stocks - 0.0%

Common Stocks - 7.0% Mortgage Loans - 0.0%

Other Invstmts - 19.6% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

New York - 99.6% New Jersey - 0.2%

Connecticut - 0.2% Alaska - 0.0%

Alabama - 0.0% All other - 0.0%

when an inter-company pooling arrangement exists.

Lancet Indemnity RRG Inc. (Las Vegas, NV)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

9550 South Eastern Avenue NAIC Company Code : 13014 Total Assets 1,210 6,273 7,994 12,880 16,579Suite 253 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 511 1,058 2,006 2,774 3,728Las Vegas, NV 89123-8042 Geographic Focus: Regional - Southern Quadrant Total Liabilities 698 5,214 5,987 10,106 12,851

NAIC Ownership Structure: Risk Retention Group Net Income -34 221 337 86 -451Tax Identification Number : 26-1479165 Total Revenue 277 1,833 4,983 6,278 9,217

Direct Premiums Written 647 5,499 5,805 8,826 11,327Net Premiums Written 647 4,873 5,406 6,467 9,145

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 277 1,827 4,919 6,182 8,980

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 118 818 2,113 4,057 7,020Demotech Financial Strength Rating A 03/13/13 Affirm Loss & LAE Reserves/ NPE (%) NA 24.02 29.97 48.25 60.49S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) NA 47.55 32.01 5.36 -20.84Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 1.27 4.60 2.69 2.33 2.45Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Gemma Agustin Tuanqui Auditor Shores Tagman Butler & Co P.A.Phone : (800) 226-0793 Actuary Milliman Inc.Fax : (941) 906-7538 CEO --Email : gtuanqui@pboa.com CFO --

President Alan Joseph Iezzi

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets NA 0.36 1.45 0.49 0.85Net Investment Income/Earned Premiums 0.02 0.13 1.18 0.48 0.86Return on Average Equity (C&S) NA 32.12 21.09 3.46 -13.88Return on Avg Assets NA 7.05 4.94 0.88 -3.31Loss and LAE Ratio 42.80 41.34 54.46 58.89 74.58Expense Ratio 30.62 15.39 33.16 38.72 34.96Loss Ratio 32.10 22.42 35.76 21.49 22.12Combined Ratio 73.42 56.74 87.63 97.61 109.54Operating Ratio 73.37 56.40 86.32 97.11 108.67Investment ratio 0.04 0.33 1.30 0.50 0.87

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 63.54 70.03 78.94 75.73 81.33Cash, Common & Liquid Bonds / Liabilities 63.54 70.03 78.94 78.96 89.00Cash & Short-Term Investments / C&S 86.77 345.02 235.57 275.91 280.35Liabilities / Liquid Assets (IRIS Ratio) 157.00 143.00 127.00 132.00 118.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 11.77 14.93Reserve coverage2 90.80 95.50 116.15 124.07 129.25Cash From Underwriting ($000) 384 2,721 362 2,842 1,768Net Cash From Operations ($000) 385 2,713 257 2,563 2,173Underwriting Cash Flow Ratio 466.24 279.96 112.03 168.73 124.81Operating Cash Flow Ratio 466.24 280.85 117.63 177.80 122.38Unassigned Funds / Total Assets -2.79 2.99 6.56 4.88 1.99

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 289 318 304NPW to Policyholders' Surplus 300 --- 269 233 245Change in Net Premiums Written 33 -33 11 20 41*Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 75 92 103*

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 1 5* 0 5* 0 8*

MSA: Las Vegas-Paradise, NV (Metro)

Distribution Channel: Direct Response

157.0143.0

127.0 132.0118.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

73.4

56.7

87.697.6

109.5

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 1.5* 0.5* 0.8*

Loss Adjustment Expense Ratio 10.70 18.92 18.71 37.39 52.46 Gross Change in Policyholders' Surplus 50 -10 90* 38 34Net Commission Ratio 5.91 4.55 10.39 16.04 10.55 Net Change in Adj Policyholders' Surplus 25 -10 32* 5 -11*Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 127* 132* 118*Tax, License & Fees Ratio 2.57 0.69 1.49 0.83 0.24 Agents' Bal to Policyholders' Surplus 40 --- 88* 102* 82*Admin & Other Expense Ratio 22.14 10.16 21.28 21.85 24.17 1-Yr Resv Dev to Policyholders' Surplus 20 --- 22* 9 40*Gross Premiums Written ($000)3 647 5,499 5,805 8,826 11,327 2-Yr Resv Dev to Policyholders' Surplus 20 --- -22 7 39*Loss & Loss Adj Expense ($000) 118 755 2,679 3,640 6,697 Est Curr Resv Defi/Policyholders' Surplus 25 --- -33 -40 -17Other Underwriting Exp Incurred ($000) 198 750 1,793 2,504 3,197 *Indicates an unusual value.Net Underwriting Gains ($000) -40 322 447 37 -914 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 100.00 88.60 93.11 73.27 80.73 complements of each ratio.Effective Tax Rate NM 32.45 34.10 35.43 NM

Pre-Tax Operating Margin -14.36 17.88 10.26 2.12 -7.35 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth NA 418.58 27.44 61.12 28.72

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth NA 646.78 14.83 68.79 27.16

Reinsurance Recoverable ex US Aff 0 392 2,261 2,250 3,061 Net Premiums Written Growth NA 653.26 10.94 19.63 41.40Retention Ratio (NPW/GPW) (%)3 100.00 88.60 93.11 73.27 80.73 Pre-Tax Operating Income Growth NA NM 55.96 -73.94 NMUnauthorized Net Recov. (ex US Aff) (%) NA 0.00 0.00 0.00 0.00 Net Income Growth NA NM 52.14 -74.46 NMNonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth NA 591.14 158.31 91.98 73.01Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth NA 750.13 5.57 52.03 28.34Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR NA NA NA 143.70 107.12

Capital & Surplus Five-year CAGR NA NA NA 75.71 64.32Admitted Assets Five-year CAGR NA NA NA 120.00 92.41

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 511 1,058 2,006 2,774 3,728 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 511 1,058 2,006 2,774 3,728 Combined NA NA NA NA NA ACL Risk Based Capital 83 314 798 1,199 1,566

Risk Based Capital Ratio (TAC/ACL RBC) 612.55 337.05 251.33 231.42 238.04

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 306.27 168.52 125.66 115.71 119.02

Change in Loss & LAE Resv / Reserves NA 591.14 158.31 91.98 73.01 Realized Capital Gains (Losses) 0 0 0 0 01 Yr Loss Reserve Dev / 1Y Prior C&S NA -19.95 22.02 9.27 39.61 Net Unrealized Capital Gains (Losses) 0 0 0 17 1532 Yr Loss Reserve Dev / 2Y Prior C&S 0.00 0.00 -22.49 7.18 39.24 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE NA 24.02 29.97 48.25 60.49 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE 0.00 -5.58 4.74 3.01 12.24 Net Premiums Written / Avg C&S (%) NA 706.83 338.50 260.24 281.36IBNR/ Total Reserves 75.00 45.03 47.86 28.04 32.94 Liabilities / Capital & Surplus (%) 136.55 492.71 298.40 364.33 344.70Reserves/ Equity 23.15 77.31 105.33 146.27 188.29 Total Reins Recov Excl US Aff / C&S (%) 0.00 37.04 112.68 81.11 82.11

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

306.3

168.5125.7 115.7 119.0

0500

1,0001,5002,0002,5003,0003,5004,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

100.088.6 93.1

73.380.7

0

2,000

4,000

6,000

8,000

10,000

12,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Lancet Indemnity RRG Inc. (Las Vegas, NV)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 0 0 0 0 0 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 647 5,499 5,805 8,826 11,327Common Stocks 0 0 0 326 985 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 647 5,499 5,805 8,826 11,327Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 0 -627 -400 -2,359 -2,183Occupied Properties 0 0 0 0 0 Net Premiums Written 647 4,873 5,406 6,467 9,145Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 370 3,045 487 285 165Properties for Sale 0 0 0 0 0 Net Premiums Earned 277 1,827 4,919 6,182 8,980

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 444 3,651 4,727 7,653 10,452 Underwriting Deductions ($000)Other Investments 0 0 0 0 200 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 444 3,651 4,727 7,980 11,637 Net Losses Paid - Commercial 0 5 1,001 483 869Premiums & Considerations Due 157 1,334 1,756 2,834 3,048 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 0 0 0 0 0 Net Losses Paid 0 5 1,001 483 869All Other Admitted Assets 609 1,287 1,511 2,066 1,894 Net LAE Paid 0 51 383 1,214 2,866Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 1,210 6,273 7,994 12,880 16,579 Change in Loss Reserves - Commercial 89 405 758 846 1,117

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 30 295 537 1,098 1,845

Unpaid Losses 89 493 1,252 2,098 3,215 Net Change in Loss and LAE Reserves 118 700 1,295 1,944 2,962Unpaid Loss Adj Expenses 30 325 862 1,960 3,804 Losses and LAE Incurred 118 755 2,679 3,640 6,697

Loss & Loss Adj Exp Reserves 118 818 2,113 4,057 7,020 Other Underwriting Expense Incurred 198 750 1,793 2,504 3,197Unearned Premiums 370 3,416 3,903 4,188 4,352 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 0 131 -1,447 -35 -127 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 196 343 647 1,046 894 Net Underwriting Gain (Loss) -40 322 447 37 -914Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 14 506 771 851 712 Total underwriting deductions 316 1,505 4,471 6,144 9,894

Total Liabilities 698 5,214 5,987 10,106 12,851

Income ($000)Total Capital and Surplus Net Investment Income 0 6 64 31 78

Common Capital Stock 505 298 29 27 28 Net Realized Capital Gains (Losses) 0 0 0 0 0Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 65 159Surplus Notes 0 75 75 75 75 All Other Income 0 0 0 0 0Unassigned Surplus -34 188 524 628 330 Income after cap gains (loss) before tax -40 328 511 133 -677Other Including Gross Contributed 41 497 1,378 2,044 3,295 Federal Income Tax -6 106 174 47 -226

Capital & Surplus 511 1,058 2,006 2,774 3,728 Net Income -34 221 337 86 -451

Total Liabilities and C&S 1,210 6,273 7,994 12,880 16,579 Pre-tax Operating Income -40 328 511 133 -677

Memo: Total Revenue 277 1,833 4,983 6,278 9,217Memo: Affiliated Investments ($000) Memo: Paid Expenses 105 1,507 2,008 3,701 6,259

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 326 557 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 0 0 0 0 0Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 326 557 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 0 6 64 31 78 Class 6 0 0 0 0 0R li d C it l G i 0 0 0 0 0Realized Capital Gains 0 0 0 0 0Unrealized Capital Gains 0 0 0 17 153Total Cash & Investments 444 3,651 4,727 7,980 11,637Affiliated Cash & Investments 0 0 0 326 557Total Bonds (incl Short-Term) 0 0 0 0 0Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 0 0 326 985Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) NA NA NA NA NAPrivately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) NA NA NA NA NAMortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 0 0 0 0 0Common Stock 985 985 726 -- 2,696Preferred Stock 0 0 0 -- 0Total 985 985 726 0 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) NA NA NA NA NABonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 0.00 0.00 0.00 0.00 0.00Common Stocks / C&S 0.00 0.00 0.00 11.77 26.42Unaff common stock/Invested Assets 0.00 0.00 0.00 0.00 3.68

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Florida 5,816 1. Med Prof Liab 11,327 Cash/Invested Assets 100.00 100.00 100.00 95.91 89.822. California 2,442 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Michigan 1,501 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Georgia 366 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Kentucky 323 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 879 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 1.72Premiums & Cons due/Total Assets 12.95 21.27 21.97 22.00 18.39

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.00 0.00 0.00 0.00 0.00

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA NA NA NA NA All other admitted assets/Total Assets 50.37 20.52 18.90 16.04 11.42National DPW ($000) 647 5,499 5,805 8,826 11,327 Invested Assets/Total Assets 36.68 58.21 59.13 61.96 70.19Adjusted Loss Ratio 32.10 23.50 36.90 22.13 26.35 Investment Income/Total Assets 0.01 0.10 0.80 0.24 0.47

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 0.0% Preferred Stocks - 0.0%

Common Stocks - 3.9% Mortgage Loans - 0.0%

Other Invstmts - 96.1% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Florida - 51.3% California - 21.6%

Michigan - 13.2% Georgia - 3.2%

Kentucky - 2.9% All other - 7.8%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

National Assisted Living RRG (Norcross, GA)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

3740 Davinci Court NAIC Company Code : 11806 Total Assets 6,059 6,323 6,958 6,955 7,604Suite 130 Business Focus : Commercial General Liability Focus Policyholder Surplus 2,567 2,978 2,981 3,088 3,493Norcross, GA 30092-7634 Geographic Focus: Regional - Southern Quadrant Total Liabilities 3,492 3,345 3,978 3,868 4,111

NAIC Ownership Structure: Risk Retention Group Net Income 225 157 169 263 290Tax Identification Number : 20-0127980 Total Revenue 1,929 1,850 2,060 1,867 1,617

Direct Premiums Written 1,786 2,001 1,873 1,540 1,462Net Premiums Written 1,786 2,001 1,873 1,540 1,462

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 1,889 1,828 1,947 1,750 1,440

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 2,454 2,235 2,597 2,721 2,916Demotech Financial Strength Rating A 03/06/13 Affirm Loss & LAE Reserves/ NPE (%) 120.32 137.02 126.31 158.53 203.92S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 11.32 14.14 7.80 8.41 8.99Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.70 0.67 0.63 0.50 0.42Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Rose Patrick Auditor Porter Keadle Moore LLCPhone : (770) 255-4913 Actuary Merlinos & Associates Inc.Fax : (770) 246-8536 CEO --Email : rpatrick@venturecaptive.com CFO --

President Guy Stephen Pierce

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 1.08 0.56 1.84 2.31 2.51Net Investment Income/Earned Premiums 3.31 1.55 6.07 9.88 12.10Return on Average Equity (C&S) 8.63 6.20 6.21 8.97 8.82Return on Avg Assets 3.82 2.58 2.54 3.72 3.90Loss and LAE Ratio 43.92 36.67 49.67 44.68 43.96Expense Ratio 45.03 41.07 47.04 54.42 47.10Loss Ratio 26.40 15.07 33.91 23.88 28.18Combined Ratio 88.94 77.74 96.71 99.10 91.06Operating Ratio 85.81 76.04 90.87 90.41 78.77Investment ratio 3.13 1.70 5.84 8.69 12.29

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 13.84 159.60 23.91 12.99 13.12Cash, Common & Liquid Bonds / Liabilities 158.88 174.55 170.33 174.08 177.80Cash & Short-Term Investments / C&S 18.83 179.25 31.91 16.27 15.44Liabilities / Liquid Assets (IRIS Ratio) 63.00 57.00 61.00 59.00 56.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 170.78 182.20 187.15 193.10 201.72Cash From Underwriting ($000) 669 225 526 -48 344Net Cash From Operations ($000) 925 142 579 -4 457Underwriting Cash Flow Ratio 158.66 113.80 135.70 96.90 130.52Operating Cash Flow Ratio 142.28 120.83 138.98 104.13 135.80Unassigned Funds / Total Assets 2.25 9.79 13.07 15.27 19.37

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 63 50 42NPW to Policyholders' Surplus 300 --- 63 50 42Change in Net Premiums Written 33 -33 -6 -18 -5Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 84 92 86

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 1 9* 2 3* 2 6*

MSA: Atlanta-Sandy Springs-Marietta, GA (Metro)

Distribution Channel: Direct Response

63.0

57.0

61.0

59.0

56.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

88.977.7

96.7 99.191.1

0.001.002.003.004.005.006.007.008.009.00

10.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 1.9* 2.3* 2.6*

Loss Adjustment Expense Ratio 17.51 21.60 15.77 20.80 15.77 Gross Change in Policyholders' Surplus 50 -10 0 4 13Net Commission Ratio 10.13 8.80 10.01 10.90 9.76 Net Change in Adj Policyholders' Surplus 25 -10 -3 2 12Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 61 59 56Tax, License & Fees Ratio 5.58 5.02 6.16 6.74 6.20 Agents' Bal to Policyholders' Surplus 40 --- 3 3 2Admin & Other Expense Ratio 29.32 27.24 30.88 36.78 31.15 1-Yr Resv Dev to Policyholders' Surplus 20 --- -13 -15 -12Gross Premiums Written ($000)3 1,786 2,001 1,873 1,540 1,462 2-Yr Resv Dev to Policyholders' Surplus 20 --- -39 -26 -21Loss & Loss Adj Expense ($000) 830 670 967 782 633 Est Curr Resv Defi/Policyholders' Surplus 25 --- -29 -34 -35Other Underwriting Exp Incurred ($000) 792 822 881 838 689 *Indicates an unusual value.Net Underwriting Gains ($000) 255 335 99 130 118 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 100.00 100.00 100.00 100.00 100.00 complements of each ratio.Effective Tax Rate 34.01 28.45 36.38 22.45 15.94

Pre-Tax Operating Margin 15.30 19.36 10.29 13.22 18.27 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 9.06 4.36 10.05 -0.04 9.33

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 18.91 -4.22 18.92 -2.76 6.28

Reinsurance Recoverable ex US Aff 0 0 0 0 0 Net Premiums Written Growth -4.22 12.05 -6.41 -17.80 -5.03Retention Ratio (NPW/GPW) (%)3 100.00 100.00 100.00 100.00 100.00 Pre-Tax Operating Income Growth NM 21.38 -40.84 16.43 19.72Unauthorized Net Recov. (ex US Aff) (%) NA NA NA NA NA Net Income Growth NM -30.16 7.41 55.98 10.20Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 26.93 -8.90 16.17 4.79 7.16Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -4.22 12.05 -6.41 -17.80 -5.03Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 53.50 28.38 18.85 13.70 6.96

Capital & Surplus Five-year CAGR 13.38 12.75 9.77 5.29 5.93Admitted Assets Five-year CAGR 27.77 19.51 14.42 9.49 6.48

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 2,567 2,978 2,981 3,088 3,493 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 2,567 2,978 2,981 3,088 3,493 Combined NA NA NA NA NA ACL Risk Based Capital 811 397 736 822 895

Risk Based Capital Ratio (TAC/ACL RBC) 316.45 750.06 405.00 375.84 390.10

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 158.22 375.03 202.50 187.92 195.05

Change in Loss & LAE Resv / Reserves 26.93 -8.90 16.17 4.79 7.16 Realized Capital Gains (Losses) 46 -139 53 93 501 Yr Loss Reserve Dev / 1Y Prior C&S -19.48 -28.01 -12.86 -15.37 -12.24 Net Unrealized Capital Gains (Losses) -342 326 83 -161 1952 Yr Loss Reserve Dev / 2Y Prior C&S -9.70 -42.69 -39.11 -26.02 -20.69 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 120.32 137.02 126.31 158.53 203.92 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE -27.00 -39.34 -19.67 -26.17 -26.24 Net Premiums Written / Avg C&S (%) 68.52 78.97 68.95 52.49 44.48IBNR/ Total Reserves 65.00 62.27 69.38 68.54 74.87 Liabilities / Capital & Surplus (%) 136.04 112.31 133.44 125.27 117.67Reserves/ Equity 95.59 75.06 87.11 88.13 83.47 Total Reins Recov Excl US Aff / C&S (%) 0.00 0.00 0.00 0.00 0.00

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

158.2

375.0

202.5 187.9 195.0

0500

1,0001,5002,0002,5003,0003,5004,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

100.0 100.0 100.0 100.0 100.0

0

500

1,000

1,500

2,000

2,500

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

National Assisted Living RRG (Norcross, GA)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 499 500 1,401 1,015 899 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 1,786 2,001 1,873 1,540 1,462Common Stocks 4,566 0 4,183 5,061 5,870 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 1,786 2,001 1,873 1,540 1,462Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 0 0 0 0 0Occupied Properties 0 0 0 0 0 Net Premiums Written 1,786 2,001 1,873 1,540 1,462Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -103 174 -74 -210 22Properties for Sale 0 0 0 0 0 Net Premiums Earned 1,889 1,828 1,947 1,750 1,440

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 483 5,338 951 502 539 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 5,548 5,838 6,536 6,578 7,309 Net Losses Paid - Commercial 56 518 336 367 248Premiums & Considerations Due 8 169 76 90 76 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 0 0 0 0 0 Net Losses Paid 56 518 336 367 248All Other Admitted Assets 502 315 347 288 219 Net LAE Paid 253 370 270 291 190Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 6,059 6,323 6,958 6,955 7,604 Change in Loss Reserves - Commercial 443 -243 324 51 158

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 78 24 37 73 37

Unpaid Losses 1,952 1,710 2,034 2,085 2,243 Net Change in Loss and LAE Reserves 521 -218 361 124 195Unpaid Loss Adj Expenses 501 526 563 636 673 Losses and LAE Incurred 830 670 967 782 633

Loss & Loss Adj Exp Reserves 2,454 2,235 2,597 2,721 2,916 Other Underwriting Expense Incurred 792 822 881 838 689Unearned Premiums 795 969 895 685 707 Other Underwriting Deductions 13 0 0 0 0Total Reinsurance Liabilities 0 0 0 0 0 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 68 106 119 118 120 Net Underwriting Gain (Loss) 255 335 99 130 118Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 175 34 367 343 368 Total underwriting deductions 1,634 1,492 1,848 1,620 1,322

Total Liabilities 3,492 3,345 3,978 3,868 4,111

Income ($000)Total Capital and Surplus Net Investment Income 59 31 114 152 177

Common Capital Stock 2,240 2,329 2,420 2,454 2,502 Net Realized Capital Gains (Losses) 46 -139 53 93 50Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 190 30 30 30 30 All Other Income -19 -8 0 -35 0Unassigned Surplus 136 619 909 1,062 1,473 Income after cap gains (loss) before tax 341 220 265 339 345Other Including Gross Contributed 0 0 -378 -458 -511 Federal Income Tax 116 62 97 76 55

Capital & Surplus 2,567 2,978 2,981 3,088 3,493 Net Income 225 157 169 263 290

Total Liabilities and C&S 6,059 6,323 6,958 6,955 7,604 Pre-tax Operating Income 295 358 212 247 295

Memo: Total Revenue 1,975 1,712 2,113 1,959 1,667Memo: Affiliated Investments ($000) Memo: Paid Expenses 1,144 1,228 1,247 1,254 986

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 499 500 1,641 1,170 899Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 59 31 114 152 177 Class 6 0 0 0 0 0R li d C it l G i 46 139 53 93 50Realized Capital Gains 46 -139 53 93 50Unrealized Capital Gains -342 326 83 -161 195Total Cash & Investments 5,548 5,838 6,536 6,578 7,309Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 499 500 1,641 1,170 899Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 4,566 0 4,183 5,061 5,870Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 899 899 876 812 3,487Common Stock 5,870 5,870 5,793 -- 17,534Preferred Stock 0 0 0 -- 0Total 6,770 6,770 6,670 812 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.00 1.00 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 9.00 8.56 21.44 15.43 12.31Common Stocks / C&S 177.87 0.00 140.34 163.90 168.04Unaff common stock/Invested Assets 82.29 0.00 64.01 76.94 80.32

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. North Carolina 732 1. Oth, Prod Liab Cmbnd 1,462 Cash/Invested Assets 8.71 91.44 14.55 7.64 7.382. Florida 578 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Georgia 58 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. South Carolina 46 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Virginia 45 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 3 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 0.14 2.68 1.09 1.29 1.00

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.00 0.00 0.00 0.00 0.00

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR 44.41 15.86 6.54 -0.75 -4.75 All other admitted assets/Total Assets 8.29 4.99 4.99 4.14 2.88National DPW ($000) 1,786 2,001 1,873 1,540 1,462 Invested Assets/Total Assets 91.57 92.33 93.92 94.57 96.12Adjusted Loss Ratio 26.40 15.07 33.91 23.88 28.18 Investment Income/Total Assets 0.98 0.49 1.63 2.19 2.33

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 12.3% Preferred Stocks - 0.0%

Common Stocks - 80.3% Mortgage Loans - 0.0%

Other Invstmts - 7.4% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

North Carolina - 50.0% Florida - 39.5%

Georgia - 3.9% South Carolina - 3.2%

Virginia - 3.1% All other - 0.2%

Oth, Prod Liab Cmbnd - 100.0%

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%

when an inter-company pooling arrangement exists.

National Guardian RRG (Traverse City, MI)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

4075 Copper Ridge Drive NAIC Company Code : 36072 Total Assets 18,231 15,912 16,442 15,823 16,314Traverse City, MI 49684-7059 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 3,484 3,662 4,626 5,529 5,980

Geographic Focus: Regional - Midwestern Quadrant Total Liabilities 14,747 12,250 11,816 10,294 10,334NAIC Ownership Structure: Risk Retention Group Net Income 470 127 889 890 516Tax Identification Number : 38-2848487 Total Revenue 4,360 716 2,607 2,672 2,744

Direct Premiums Written 11,354 11,335 11,953 12,140 13,150Net Premiums Written 3,975 676 2,102 2,555 2,507

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 4,016 583 2,386 2,527 2,585

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 13,046 10,419 9,980 9,295 8,820Demotech Financial Strength Rating A 03/12/13 Affirm Loss & LAE Reserves/ NPE (%) 324.96 2,104.56 437.85 392.75 348.77S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 12.75 5.93 29.95 24.30 12.87Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 1.14 0.18 0.45 0.46 0.42Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Mark A. Burnheimer Auditor Johnson Lambert LLPPhone : (231) 946-6200 Actuary Towers Watson & Co.Fax : (231) 946-6006 CEO Derik K. KingEmail : mburnheimer@bc-legal.com CFO --

President Mark A. Burnheimer

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.90 1.03 1.89 1.21 1.39Net Investment Income/Earned Premiums 8.65 19.79 10.52 5.66 6.33Return on Average Equity (C&S) 15.37 3.59 22.94 18.12 9.24Return on Avg Assets 2.65 0.65 5.22 5.25 3.04Loss and LAE Ratio 91.52 32.59 44.67 43.48 70.82Expense Ratio 7.41 46.78 18.12 14.82 7.74Loss Ratio 31.58 -25.89 12.16 14.60 34.88Combined Ratio 98.93 79.37 62.79 58.30 78.56Operating Ratio 90.37 56.42 53.53 52.58 72.42Investment ratio 8.56 22.95 9.27 5.72 6.14

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 35.55 10.25 34.94 29.18 39.07Cash, Common & Liquid Bonds / Liabilities 95.11 101.27 123.12 130.90 141.86Cash & Short-Term Investments / C&S 150.48 34.27 89.24 54.33 67.51Liabilities / Liquid Assets (IRIS Ratio) 98.00 94.00 86.00 85.00 70.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 114.07 113.56 126.29 125.34 139.84Cash From Underwriting ($000) 1,432 -2,114 450 -1,282 652Net Cash From Operations ($000) 1,800 -1,891 834 -1,638 737Underwriting Cash Flow Ratio 170.67 48.29 158.53 63.12 157.87Operating Cash Flow Ratio 174.78 52.56 139.65 82.17 180.52Unassigned Funds / Total Assets 10.88 13.59 19.01 25.46 27.46

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 265 223 222NPW to Policyholders' Surplus 300 --- 45 46 42Change in Net Premiums Written 33 -33 211* 22 -2Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 55 53 63

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 1 7* 1 1* 1 3*

MSA: Traverse City, MI (Micro)

Distribution Channel: Direct Response

98.0 94.086.0 85.0

70.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

98.9

79.4

62.8 58.3

78.6

0.00

5.00

10.00

15.00

20.00

25.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 1.7* 1.1* 1.3*

Loss Adjustment Expense Ratio 59.95 58.48 32.51 28.88 35.94 Gross Change in Policyholders' Surplus 50 -10 26 20 8Net Commission Ratio -10.29 -140.19 -26.30 -21.06 -35.49 Net Change in Adj Policyholders' Surplus 25 -10 26* 20 8Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 86 85 70Tax, License & Fees Ratio 4.46 44.36 15.58 12.54 13.28 Agents' Bal to Policyholders' Surplus 40 --- 0 0 0Admin & Other Expense Ratio 13.24 142.61 28.85 23.35 29.94 1-Yr Resv Dev to Policyholders' Surplus 20 --- -47 -26 -7Gross Premiums Written ($000)3 12,020 12,197 12,259 12,348 13,259 2-Yr Resv Dev to Policyholders' Surplus 20 --- -112 -71 -30Loss & Loss Adj Expense ($000) 3,675 190 1,066 1,099 1,831 Est Curr Resv Defi/Policyholders' Surplus 25 --- 228* 223* 6Other Underwriting Exp Incurred ($000) 295 316 381 379 194 *Indicates an unusual value.Net Underwriting Gains ($000) 46 77 939 1,050 560 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 33.07 5.54 17.15 20.69 18.91 complements of each ratio.Effective Tax Rate -27.00 54.08 32.55 30.35 27.93

Pre-Tax Operating Margin 8.95 29.37 44.51 44.70 26.20 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 8.41 -12.72 3.33 -3.76 3.10

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 7.16 -16.93 -3.54 -12.88 0.38

Reinsurance Recoverable ex US Aff 654 -351 -868 -142 -125 Net Premiums Written Growth -27.80 -83.00 211.20 21.55 -1.88Retention Ratio (NPW/GPW) (%)3 33.07 5.54 17.15 20.69 18.91 Pre-Tax Operating Income Growth 197.18 -46.10 451.56 2.91 -39.79Unauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 0.00 0.00 0.00 Net Income Growth NM -72.92 597.90 0.17 -42.04Nonaffiliated Reins Assumed / GPW (%) 5.54 7.07 2.49 1.69 0.82 Loss & Loss Adj Exp Reserves Growth 5.36 -20.14 -4.21 -6.86 -5.11Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -14.93 -0.16 5.45 1.56 8.32Reinsurance on Known Case Reserves 388 0 0 0 0 Total Liabilities Five-year CAGR 14.68 7.87 2.62 -3.29 -5.57

Capital & Surplus Five-year CAGR 12.77 5.62 9.23 12.18 14.39Admitted Assets Five-year CAGR 14.30 7.32 4.25 0.70 -0.60

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 3,484 3,662 4,626 5,529 5,980 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 2,876 3,147 4,372 5,390 5,769 Combined NA NA NA NA NA ACL Risk Based Capital 1,749 1,273 1,300 1,282 1,220

Risk Based Capital Ratio (TAC/ACL RBC) 164.43 247.30 336.20 420.46 472.97

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 82.21 123.65 168.10 210.23 236.48

Change in Loss & LAE Resv / Reserves 5.36 -20.14 -4.21 -6.86 -5.11 Realized Capital Gains (Losses) -20 67 158 84 -31 Yr Loss Reserve Dev / 1Y Prior C&S -47.51 -65.05 -46.91 -25.94 -6.89 Net Unrealized Capital Gains (Losses) -44 18 13 13 02 Yr Loss Reserve Dev / 2Y Prior C&S -36.20 -89.60 -111.60 -70.70 -30.30 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 324.96 2,104.56 437.85 392.75 348.77 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE -36.13 -388.99 -72.00 -47.48 -14.74 Net Premiums Written / Avg C&S (%) 129.87 19.05 54.25 51.98 44.89IBNR/ Total Reserves 41.54 42.88 40.29 39.65 38.22 Liabilities / Capital & Surplus (%) 423.33 334.52 255.43 186.19 172.80Reserves/ Equity 374.49 284.50 215.73 168.12 147.49 Total Reins Recov Excl US Aff / C&S (%) 18.77 -9.58 -18.76 -2.57 -2.09

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

82.2

123.7

168.1

210.2236.5

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))33.1

5.5

17.120.7

18.9

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

National Guardian RRG (Traverse City, MI)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 8,763 11,190 9,270 8,887 8,422 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 90 117 137 0 0 Commercial P&C Direct Premiums 11,354 11,335 11,953 12,140 13,150Common Stocks 407 0 0 0 0 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 11,354 11,335 11,953 12,140 13,150Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -7,379 -10,660 -9,851 -9,584 -10,643Occupied Properties 0 0 0 0 0 Net Premiums Written 3,975 676 2,102 2,555 2,507Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -41 93 -284 28 -78Properties for Sale 0 0 0 0 0 Net Premiums Earned 4,016 583 2,386 2,527 2,585

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 5,242 1,255 4,128 3,004 4,037 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 14,502 12,562 13,535 11,891 12,459 Net Losses Paid - Commercial 1,696 1,440 523 903 1,175Premiums & Considerations Due 364 361 76 83 1,535 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 2,480 2,027 2,075 3,109 1,661 Net Losses Paid 1,696 1,440 523 903 1,175All Other Admitted Assets 885 963 756 741 660 Net LAE Paid 1,316 1,377 982 880 1,131Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 18,231 15,912 16,442 15,823 16,314 Change in Loss Reserves - Commercial -428 -1,591 -233 -534 -273

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 1,092 -1,037 -206 -150 -202

Unpaid Losses 8,256 6,665 6,433 5,899 5,625 Net Change in Loss and LAE Reserves 664 -2,627 -439 -684 -475Unpaid Loss Adj Expenses 4,790 3,753 3,547 3,396 3,195 Losses and LAE Incurred 3,675 190 1,066 1,099 1,831

Loss & Loss Adj Exp Reserves 13,046 10,419 9,980 9,295 8,820 Other Underwriting Expense Incurred 295 316 381 379 194Unearned Premiums 241 334 50 78 0 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 537 880 868 142 125 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 83 192 204 232 184 Net Underwriting Gain (Loss) 46 77 939 1,050 560Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 840 425 715 548 1,204 Total underwriting deductions 3,970 506 1,447 1,478 2,025

Total Liabilities 14,747 12,250 11,816 10,294 10,334

Income ($000)Total Capital and Surplus Net Investment Income 344 134 221 145 159

Common Capital Stock 600 600 600 600 600 Net Realized Capital Gains (Losses) -20 67 158 84 -3Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 1 0 0 0 0Surplus Notes 500 500 500 500 500 All Other Income 0 0 0 0 0Unassigned Surplus 1,984 2,162 3,126 4,029 4,480 Income after cap gains (loss) before tax 370 277 1,318 1,278 716Other Including Gross Contributed 400 400 400 400 400 Federal Income Tax -100 150 429 388 200

Capital & Surplus 3,484 3,662 4,626 5,529 5,980 Net Income 470 127 889 890 516

Total Liabilities and C&S 18,231 15,912 16,442 15,823 16,314 Pre-tax Operating Income 390 210 1,160 1,194 719

Memo: Total Revenue 4,340 783 2,765 2,756 2,741Memo: Affiliated Investments ($000) Memo: Paid Expenses 1,744 1,648 1,408 1,287 1,420

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 8,377 10,769 9,932 10,471 10,622Cash & Short Term Investments 0 0 0 0 0 Class 2 0 382 488 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 450 70 21 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 344 134 221 145 159 Class 6 60 0 0 0 0R li d C it l G i 20 67 158 84 3Realized Capital Gains -20 67 158 84 -3Unrealized Capital Gains -44 18 13 13 0Total Cash & Investments 14,502 12,562 13,535 11,891 12,459Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 8,887 11,222 10,441 10,471 10,622Total Preferred Stock (incl Nonadmitted) 90 117 137 0 0Total Common Stock (incl Nonadmitted) 407 0 0 0 0Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 5.74 0.63 0.20 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 1,065 895

Municipal SecuritiesIssued States & Territories ($000) 0 292 288 304 279Issued Political Subdivisions ($000) 0 106 216 664 2,428Issued State Rev Obligations ($000) 0 0 21 271 518Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 8,422 8,763 8,703 7,943 33,830Common Stock 0 0 0 -- 0Preferred Stock 0 0 0 -- 0Total 8,422 8,763 8,703 7,943 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.14 1.05 1.05 1.00 1.00Bonds Rated 3-6 / C&S 14.64 1.92 0.46 0.00 0.00Class 5 and 6 Bonds / C&S 1.72 0.00 0.00 0.00 0.00Bonds/Invested Assets 60.43 89.08 68.49 74.74 67.59Common Stocks / C&S 11.67 0.00 0.00 0.00 0.00Unaff common stock/Invested Assets 2.80 0.00 0.00 0.00 0.00

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 2.58 3.19 2.95 0.00 0.001. Illinois 3,307 1. Med Prof Liab 13,150 Cash/Invested Assets 36.15 9.99 30.50 25.26 32.412. Missouri 2,008 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Virginia 1,978 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Ohio 1,675 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Delaware 1,009 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 3,173 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 2.00 2.27 0.46 0.53 9.41

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 13.60 12.74 12.62 19.65 10.18

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR 6.76 0.77 -2.25 -4.52 -0.30 All other admitted assets/Total Assets 4.86 6.05 4.60 4.68 4.04National DPW ($000) 11,354 11,335 11,953 12,140 13,150 Invested Assets/Total Assets 79.55 78.95 82.32 75.15 76.37Adjusted Loss Ratio 33.67 46.38 30.29 23.36 36.87 Investment Income/Total Assets 1.89 0.84 1.34 0.91 0.97

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 67.6% Preferred Stocks - 0.0%

Common Stocks - 0.0% Mortgage Loans - 0.0%

Other Invstmts - 32.4% 0.00 2.00 4.00 6.00 8.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Illinois - 25.1% Missouri - 15.3% Virginia - 15.0%

Ohio - 12.7% Delaware - 7.7% All other - 24.1%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Natl Svc Contract Ins Co. RRG (Washington, DC)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

2233 Wisconsin Avenue, NW NAIC Company Code : 10234 Total Assets 16,508 15,317 14,503 9,363 12,554Suite 310 Business Focus : P&C Minimum NPW Policyholder Surplus 14,213 13,945 12,444 7,654 10,807Washington, DC 20007-4104 Geographic Focus: Geography Minimum NPW Total Liabilities 2,294 1,372 2,059 1,709 1,747

NAIC Ownership Structure: Risk Retention Group Net Income 366 -197 77 28 28Tax Identification Number : 99-0319305 Total Revenue 2,836 1,455 -134 1,016 816

Direct Premiums Written 638 748 622 501 953Net Premiums Written 513 629 505 390 843

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 2,332 1,321 -422 841 696

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 531 320 25 20 20Demotech Financial Strength Rating A 03/29/13 Affirm Loss & LAE Reserves/ NPE (%) 23.74 33.17 NM 2.60 2.87S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 2.39 -2.57 2.33 -1.33 -0.40Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.04 0.05 0.04 0.05 0.08Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Charles Halstead-Johnson Auditor PricewaterhouseCoopers LLPPhone : (802) 479-7801 Actuary --Fax : (802) 223-3911 CEO --Email : cjohnson@riskservcos.com CFO --

President Mark H. Mishler

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 3.72 0.92 2.02 1.48 1.17Net Investment Income/Earned Premiums 98.23 21.37 56.97 44.85 14.20Return on Average Equity (C&S) 2.60 -1.40 0.56 0.29 0.32Return on Avg Assets 2.12 -1.24 0.51 0.23 0.26Loss and LAE Ratio 63.02 77.22 NM 29.30 13.03Expense Ratio 201.04 126.62 -159.72 230.06 90.21Loss Ratio 63.02 77.22 NM 29.30 13.03Combined Ratio 264.06 203.84 NM 259.37 103.24Operating Ratio 242.46 193.66 NM 238.58 86.03Investment ratio 21.60 10.18 NA 20.79 17.20

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 227.86 729.52 322.65 389.41 392.82Cash, Common & Liquid Bonds / Liabilities 652.04 NM 680.42 538.25 686.31Cash & Short-Term Investments / C&S 36.78 71.78 53.38 86.96 63.50Liabilities / Liquid Assets (IRIS Ratio) 16.00 10.00 15.00 19.00 15.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 649.02 1,121.70 738.18 635.96 753.87Cash From Underwriting ($000) -1,921 -1,527 790 -603 -118Net Cash From Operations ($000) -304 -269 1,156 -346 -4Underwriting Cash Flow Ratio 23.05 24.93 -262.80 43.85 87.49Operating Cash Flow Ratio 29.18 24.73 -204.19 41.76 87.49Unassigned Funds / Total Assets 60.95 63.93 57.17 37.39 28.82

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 5 7 9NPW to Policyholders' Surplus 300 --- 4 5 8Change in Net Premiums Written 33 -33 -20 -23 116*Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 104* 42 137*

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 2 0* 1 5* 1 1*

MSA: Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro)

Distribution Channel: General Agnt/Managing General Agnt, Independent Agency

16.0

10.0

15.0

19.0

15.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

264.1

203.8

0.0

259.4

103.2

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 2.0* 1.5* 1.1*

Loss Adjustment Expense Ratio 0.00 0.00 0.00 0.00 0.00 Gross Change in Policyholders' Surplus 50 -10 -11* -38* 41Net Commission Ratio 33.77 13.00 10.04 4.93 0.77 Net Change in Adj Policyholders' Surplus 25 -10 -11* -38* 2Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 15 19 15Tax, License & Fees Ratio 17.16 7.23 8.73 11.72 6.51 Agents' Bal to Policyholders' Surplus 40 --- 0 0 0Admin & Other Expense Ratio 150.10 106.38 -178.49 213.41 82.92 1-Yr Resv Dev to Policyholders' Surplus 20 --- -2 0 0Gross Premiums Written ($000)3 595 739 615 500 953 2-Yr Resv Dev to Policyholders' Surplus 20 --- -4 -2 0Loss & Loss Adj Expense ($000) 1,470 1,020 349 246 91 Est Curr Resv Defi/Policyholders' Surplus 25 --- 0 0 0Other Underwriting Exp Incurred ($000) 1,031 797 716 864 761 *Indicates an unusual value.Net Underwriting Gains ($000) -168 -496 35 -302 -155 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 86.14 85.12 82.10 77.99 88.46 complements of each ratio.Effective Tax Rate -9.08 NM 56.28 0.00 0.00

Pre-Tax Operating Margin 11.82 -24.82 NM -12.54 -4.35 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth -9.21 -7.21 -5.31 -35.44 34.08

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth -46.48 -40.19 50.05 -16.98 2.21

Reinsurance Recoverable ex US Aff -13 0 0 -32 -13 Net Premiums Written Growth -65.34 22.68 -19.79 -22.76 116.39Retention Ratio (NPW/GPW) (%)3 86.14 85.12 82.10 77.99 88.46 Pre-Tax Operating Income Growth -56.51 NM NM NM NMUnauthorized Net Recov. (ex US Aff) (%) 0.00 NA NA 0.00 0.00 Net Income Growth -39.15 NM NM -64.06 0.56Nonaffiliated Reins Assumed / GPW (%) -7.12 -1.26 -1.15 -0.20 0.00 Loss & Loss Adj Exp Reserves Growth -0.90 -39.79 -92.18 -20.00 0.00Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -59.96 17.37 -16.94 -19.45 90.39Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR -8.34 -25.13 -19.65 -22.41 -16.43

Capital & Surplus Five-year CAGR 6.88 5.50 -0.16 -10.45 -4.90Admitted Assets Five-year CAGR 3.75 -1.48 -4.95 -13.53 -7.14

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 14,213 13,945 12,444 7,654 10,807 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 14,213 13,945 12,444 7,654 10,807 Combined NA NA NA NA NA ACL Risk Based Capital 488 369 338 405 320

Risk Based Capital Ratio (TAC/ACL RBC) 2,914.61 3,778.23 3,676.85 1,888.08 3,376.24

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 1,457.30 1,889.12 1,838.43 944.04 1,688.12

Change in Loss & LAE Resv / Reserves -0.90 -39.79 -92.18 -20.00 0.00 Realized Capital Gains (Losses) 0 -12 -146 155 631 Yr Loss Reserve Dev / 1Y Prior C&S -1.58 -2.22 -2.29 -0.04 0.00 Net Unrealized Capital Gains (Losses) 19 -51 111 214 512 Yr Loss Reserve Dev / 2Y Prior C&S -4.44 -3.86 -3.73 -2.29 -0.04 Dividends to Stockholders 0 0 0 -5,000 0Loss and LAE Reserves / NPE 23.74 33.17 NM 2.60 2.87 Dividend Payout Ratio (%) 0.00 0.00 0.00 NM 0.001 Yr Loss Reserve Development / NPE -9.43 -23.92 NM -0.59 0.00 Net Premiums Written / Avg C&S (%) 3.65 4.47 3.65 4.08 9.60IBNR/ Total Reserves 100.00 100.00 100.00 100.00 100.00 Liabilities / Capital & Surplus (%) 16.14 9.84 16.54 22.33 16.17Reserves/ Equity 3.74 2.29 0.20 0.26 0.19 Total Reins Recov Excl US Aff / C&S (%) -0.09 0.00 0.00 -0.42 -0.12

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

1,457.3

1,889.1 1,838.4

944.0

1,688.1

02,0004,0006,0008,000

10,00012,00014,00016,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

86.185.1

82.1

78.0

88.5

0

200

400

600

800

1,000

1,200

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Natl Svc Contract Ins Co. RRG (Washington, DC)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 8,864 3,612 6,705 2,318 4,944 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 638 748 622 501 953Common Stocks 0 580 661 226 183 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 638 748 622 501 953Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -125 -119 -117 -111 -110Occupied Properties 0 0 0 0 0 Net Premiums Written 513 629 505 390 843Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -1,820 -692 926 -451 147Properties for Sale 0 0 0 0 0 Net Premiums Earned 2,332 1,321 -422 841 696

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 5,227 10,010 6,643 6,656 6,862 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 14,091 14,201 14,008 9,200 11,989 Net Losses Paid - Commercial 1,475 1,231 643 251 91Premiums & Considerations Due 7 116 49 0 0 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 989 87 87 88 88 Net Losses Paid 1,475 1,231 643 251 91All Other Admitted Assets 529 405 282 40 45 Net LAE Paid 0 0 0 0 0Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 16,508 15,317 14,503 9,363 12,554 Change in Loss Reserves - Commercial -5 -211 -295 -5 0

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 0 0 0 0 0

Unpaid Losses 531 320 25 20 20 Net Change in Loss and LAE Reserves -5 -211 -295 -5 0Unpaid Loss Adj Expenses 0 0 0 0 0 Losses and LAE Incurred 1,470 1,020 349 246 91

Loss & Loss Adj Exp Reserves 531 320 25 20 20 Other Underwriting Expense Incurred 1,031 797 716 864 761Unearned Premiums 1,638 946 1,873 1,422 1,569 Other Underwriting Deductions 0 0 -1,522 32 0Total Reinsurance Liabilities 13 0 0 33 13 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 112 106 161 235 146 Net Underwriting Gain (Loss) -168 -496 35 -302 -155Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 0 0 0 0 0 Total underwriting deductions 2,501 1,817 -457 1,143 851

Total Liabilities 2,294 1,372 2,059 1,709 1,747

Income ($000)Total Capital and Surplus Net Investment Income 504 134 287 175 120

Common Capital Stock 30 30 30 30 30 Net Realized Capital Gains (Losses) 0 -12 -146 155 63Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus 10,061 9,792 8,292 3,501 3,618 Income after cap gains (loss) before tax 335 -373 177 28 28Other Including Gross Contributed 4,122 4,122 4,122 4,122 7,159 Federal Income Tax -30 -176 100 0 0

Capital & Surplus 14,213 13,945 12,444 7,654 10,807 Net Income 366 -197 77 28 28

Total Liabilities and C&S 16,508 15,317 14,503 9,363 12,554 Pre-tax Operating Income 335 -361 323 -127 -35

Memo: Total Revenue 2,836 1,444 -280 1,171 879Memo: Affiliated Investments ($000) Memo: Paid Expenses 1,021 803 660 819 874

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 9,731 3,612 6,705 2,318 4,944Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 504 134 287 175 120 Class 6 0 0 0 0 0R li d C it l G i 0 12 146 155 63Realized Capital Gains 0 -12 -146 155 63Unrealized Capital Gains 19 -51 111 214 51Total Cash & Investments 14,091 14,201 14,008 9,200 11,989Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 9,731 3,612 6,705 2,318 4,944Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 580 661 226 183Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 5,164 2,435 0 1,802 2,946Issued Political Subdivisions ($000) 0 0 5,341 67 1,163Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 633 0 448 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 4,944 4,944 4,732 4,500 19,121Common Stock 183 183 163 -- 528Preferred Stock 0 0 0 -- 0Total 5,127 5,127 4,895 4,500 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.00 1.00 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 62.90 25.43 47.86 25.19 41.24Common Stocks / C&S 0.00 4.16 5.31 2.96 1.69Unaff common stock/Invested Assets 0.00 4.08 4.72 2.46 1.52

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Texas 190 1. Oth, Prod Liab Cmbnd 953 Cash/Invested Assets 37.10 70.48 47.42 72.35 57.242. Arizona 99 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Virginia 47 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Illinois 46 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. North Carolina 42 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 529 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 0.04 0.76 0.34 0.00 0.00

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 5.99 0.57 0.60 0.93 0.70

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 5.40 3.31 0.53 0.38 3.44DPW 5 Yr CAGR -23.15 -22.95 -13.34 -18.68 -9.75 All other admitted assets/Total Assets 3.21 2.65 1.94 0.43 0.36National DPW ($000) 638 748 622 501 953 Invested Assets/Total Assets 85.36 92.72 96.59 98.26 95.50Adjusted Loss Ratio -0.41 -33.46 NM 0.00 0.00 Investment Income/Total Assets 3.05 0.88 1.98 1.87 0.95

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 41.2% Preferred Stocks - 0.0%

Common Stocks - 1.5% Mortgage Loans - 0.0%

Other Invstmts - 57.2% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Texas - 19.9% Arizona - 10.4%

Virginia - 5.0% Illinois - 4.8%

North Carolina - 4.4% All other - 55.5%

Oth, Prod Liab Cmbnd - 100.0%

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%

when an inter-company pooling arrangement exists.

Paratransit Ins Co. A Mutl RRG (Memphis, TN)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

1715 Aaron Brenner Drive NAIC Company Code : 44130 Total Assets 19,484 21,244 22,091 23,250 23,274Suite 512 Business Focus : Commercial Property Focus Policyholder Surplus 6,474 8,003 8,552 9,170 10,580Memphis, TN 38120-1443 Geographic Focus: National Total Liabilities 13,010 13,240 13,539 14,080 12,694

NAIC Ownership Structure: Risk Retention Group Net Income 128 233 442 604 1,093Tax Identification Number : 36-3584321 Total Revenue 3,482 3,309 3,404 3,546 3,498

Direct Premiums Written 4,197 4,304 4,162 4,570 4,665Net Premiums Written 2,835 2,743 2,736 3,028 2,961

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 2,794 2,655 2,747 2,923 2,933

AM Best Financial Strength Rating A- 02/21/13 Affirm Not Covered by SNL Loss & Loss Adj Exp Reserves 10,430 10,275 10,200 10,200 8,100Demotech Financial Strength Rating A' 03/29/13 Affirm Loss & LAE Reserves/ NPE (%) 400.69 391.87 389.52 366.83 344.52S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 10.10 4.67 4.36 8.44 13.97Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.44 0.34 0.32 0.33 0.28Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Anita M. Perkins Auditor Faulkner Mackie & Cochran P.C.Phone : (802) 371-2219 Actuary --Fax : (802) 371-2225 CEO --Email : aperkins@usarisk.com CFO --

President William Hamilton Smythe III

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 3.72 3.68 3.41 3.02 2.68Net Investment Income/Earned Premiums 24.29 24.19 24.12 20.37 19.18Return on Average Equity (C&S) 1.83 3.31 5.51 6.80 11.06Return on Avg Assets 0.63 1.17 2.08 2.70 4.69Loss and LAE Ratio 40.46 49.27 45.90 22.09 -17.37Expense Ratio 37.01 39.09 28.99 29.73 29.62Loss Ratio 31.61 41.62 42.28 17.46 -22.75Combined Ratio 98.94 110.97 111.30 94.58 71.92Operating Ratio 74.29 85.98 87.27 73.48 52.56Investment ratio 24.64 24.99 24.03 21.10 19.37

Policyholder Dividend Ratio 21.48 22.60 36.41 42.76 59.67 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 1.64 8.00 15.69 15.22 12.16Cash, Common & Liquid Bonds / Liabilities 135.32 144.48 153.21 153.19 171.35Cash & Short-Term Investments / C&S 3.30 13.23 24.84 23.37 14.58Liabilities / Liquid Assets (IRIS Ratio) 65.00 62.00 59.00 58.00 52.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 195.55 209.56 211.37 223.87 294.09Cash From Underwriting ($000) 119 202 1,003 983 650Net Cash From Operations ($000) -189 252 1,074 390 -357Underwriting Cash Flow Ratio 104.62 106.85 162.28 164.39 124.31Operating Cash Flow Ratio 82.20 90.59 120.76 111.33 95.52Unassigned Funds / Total Assets 14.07 19.28 20.38 21.39 26.75

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 49 50 44NPW to Policyholders' Surplus 300 --- 32 33 28Change in Net Premiums Written 33 -33 0 11 -2Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 87 80 63

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 3 4 3 0 2 7*

MSA: Memphis, TN-MS-AR (Metro)

Distribution Channel: Direct Response, Independent Agency

65.062.0

59.0 58.052.0

0

5,000

10,000

15,000

20,000

25,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

98.9111.0 111.3

94.6

71.9

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 3.4 3.0 2.7*

Loss Adjustment Expense Ratio 8.85 7.65 3.62 4.63 5.38 Gross Change in Policyholders' Surplus 50 -10 7 7 15Net Commission Ratio 1.33 1.46 1.67 1.77 1.72 Net Change in Adj Policyholders' Surplus 25 -10 5 6 14Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 59 58 52Tax, License & Fees Ratio 7.72 6.30 4.73 6.30 6.03 Agents' Bal to Policyholders' Surplus 40 --- 0 0 0Admin & Other Expense Ratio 27.96 31.34 22.59 21.65 21.87 1-Yr Resv Dev to Policyholders' Surplus 20 --- -18 -22 -36Gross Premiums Written ($000)3 4,197 4,304 4,162 4,570 4,665 2-Yr Resv Dev to Policyholders' Surplus 20 --- -41 -40 -61Loss & Loss Adj Expense ($000) 1,130 1,308 1,261 646 -509 Est Curr Resv Defi/Policyholders' Surplus 25 --- -21 -20 -18Other Underwriting Exp Incurred ($000) 1,049 1,072 793 900 877 *Indicates an unusual value.Net Underwriting Gains ($000) 615 274 693 1,377 2,565 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 67.54 63.73 65.74 66.26 63.47 complements of each ratio.Effective Tax Rate 62.61 32.43 19.08 29.77 30.93

Pre-Tax Operating Margin 20.19 9.94 10.29 21.14 39.46 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth -6.69 9.03 3.99 5.25 0.10

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth -4.25 1.77 2.26 3.99 -9.85

Reinsurance Recoverable ex US Aff 5,577 5,877 4,465 5,444 7,453 Net Premiums Written Growth 6.25 -3.24 -0.25 10.69 -2.24Retention Ratio (NPW/GPW) (%)3 67.54 63.73 65.74 66.26 63.47 Pre-Tax Operating Income Growth 122.89 -53.21 6.43 114.14 84.09Unauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 0.00 0.00 0.00 Net Income Growth -61.31 82.63 89.81 36.59 80.85Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth -3.09 -1.49 -0.73 0.00 -20.59Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth 1.21 2.55 -3.31 9.82 2.06Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 3.99 2.19 1.80 1.33 -1.35

Capital & Surplus Five-year CAGR 3.96 5.98 5.91 5.78 7.73Admitted Assets Five-year CAGR 3.98 3.52 3.28 2.95 2.19

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 6,474 8,003 8,552 9,170 10,580 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 6,474 8,003 8,552 9,170 10,580 Combined NA NA NA NA NA ACL Risk Based Capital 715 762 665 728 695

Risk Based Capital Ratio (TAC/ACL RBC) 905.12 1,050.21 1,286.96 1,259.89 1,522.36

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 452.56 525.11 643.48 629.95 761.18

Change in Loss & LAE Resv / Reserves -3.09 -1.49 -0.73 0.00 -20.59 Realized Capital Gains (Losses) -362 16 197 111 2021 Yr Loss Reserve Dev / 1Y Prior C&S -12.15 -24.51 -17.96 -21.54 -35.76 Net Unrealized Capital Gains (Losses) -608 455 145 -32 1512 Yr Loss Reserve Dev / 2Y Prior C&S -36.30 -37.70 -40.58 -39.77 -60.60 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 400.69 391.87 389.52 366.83 344.52 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE -31.71 -59.78 -52.32 -63.01 -111.81 Net Premiums Written / Avg C&S (%) 40.74 38.89 34.08 34.09 29.97IBNR/ Total Reserves 51.55 67.89 65.20 63.56 56.41 Liabilities / Capital & Surplus (%) 200.95 165.43 158.32 153.54 119.98Reserves/ Equity 161.10 128.38 119.27 111.23 76.56 Total Reins Recov Excl US Aff / C&S (%) 86.14 73.43 52.21 59.37 70.44

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

452.6525.1

643.5 629.9

761.2

0

2,000

4,000

6,000

8,000

10,000

12,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))67.5

63.7

65.766.3

63.5

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Paratransit Ins Co. A Mutl RRG (Memphis, TN)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 13,899 14,461 14,594 14,861 14,938 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 4,197 4,304 4,162 4,570 4,665Common Stocks 3,492 3,183 3,427 3,853 4,523 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 4,197 4,304 4,162 4,570 4,665Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -1,362 -1,561 -1,426 -1,542 -1,704Occupied Properties 0 0 0 0 0 Net Premiums Written 2,835 2,743 2,736 3,028 2,961Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 41 88 -11 105 28Properties for Sale 0 0 0 0 0 Net Premiums Earned 2,794 2,655 2,747 2,923 2,933

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 214 1,059 2,125 2,143 1,543 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 17,605 18,702 20,146 20,857 21,004 Net Losses Paid - Commercial 1,201 1,237 1,143 550 1,335Premiums & Considerations Due 1,451 1,586 1,548 1,871 1,699 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 0 508 0 19 238 Net Losses Paid 1,201 1,237 1,143 550 1,335All Other Admitted Assets 428 447 398 504 333 Net LAE Paid 262 226 192 96 256Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 19,484 21,244 22,091 23,250 23,274 Change in Loss Reserves - Commercial -318 -132 18 -40 -2,002

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves -15 -23 -93 40 -98

Unpaid Losses 10,143 10,011 10,028 9,989 7,987 Net Change in Loss and LAE Reserves -333 -155 -75 0 -2,100Unpaid Loss Adj Expenses 288 265 172 211 113 Losses and LAE Incurred 1,130 1,308 1,261 646 -509

Loss & Loss Adj Exp Reserves 10,430 10,275 10,200 10,200 8,100 Other Underwriting Expense Incurred 1,049 1,072 793 900 877Unearned Premiums 1,424 1,454 1,443 1,548 1,576 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities -121 448 336 319 456 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 216 164 174 213 227 Net Underwriting Gain (Loss) 615 274 693 1,377 2,565Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 600 600 1,000 1,250 1,750Other Liabilities 1,060 898 1,385 1,800 2,334 Total underwriting deductions 2,179 2,380 2,054 1,546 368

Total Liabilities 13,010 13,240 13,539 14,080 12,694

Income ($000)Total Capital and Surplus Net Investment Income 689 663 660 617 568

Common Capital Stock 0 0 0 0 0 Net Realized Capital Gains (Losses) -362 16 197 111 202Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 -9 -3 6 -3Unassigned Surplus 2,741 4,095 4,502 4,974 6,226 Income after cap gains (loss) before tax 341 345 547 860 1,582Other Including Gross Contributed 3,734 3,908 4,050 4,196 4,354 Federal Income Tax 214 112 104 256 489

Capital & Surplus 6,474 8,003 8,552 9,170 10,580 Net Income 128 233 442 604 1,093

Total Liabilities and C&S 19,484 21,244 22,091 23,250 23,274 Pre-tax Operating Income 703 329 350 750 1,380

Memo: Total Revenue 3,121 3,325 3,601 3,657 3,700Memo: Affiliated Investments ($000) Memo: Paid Expenses 1,324 1,411 1,041 1,061 1,166

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 13,797 14,888 15,193 14,903 14,565Cash & Short Term Investments 0 0 0 0 0 Class 2 102 0 0 670 1,119All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 689 663 660 617 568 Class 6 0 0 0 0 0R li d C it l G i 362 16 197 111 202Realized Capital Gains -362 16 197 111 202Unrealized Capital Gains -608 455 145 -32 151Total Cash & Investments 17,605 18,702 20,146 20,857 21,004Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 13,899 14,888 15,193 15,573 15,685Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 3,492 3,183 3,427 3,853 4,523Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 1,247 472

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 792 602

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 50 39 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 14,938 16,209 15,139 14,482 60,768Common Stock 4,523 4,523 3,633 -- 12,679Preferred Stock 0 0 0 -- 0Total 19,461 20,732 18,772 14,482 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.01 1.00 1.00 1.04 1.07Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 78.95 77.32 72.45 71.25 71.12Common Stocks / C&S 53.94 39.77 40.07 42.02 42.75Unaff common stock/Invested Assets 19.84 17.02 17.01 18.47 21.53

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Virginia 657 1. Comm'l Auto St 4,665 Cash/Invested Assets 1.21 5.66 10.55 10.27 7.352. Utah 527 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Kentucky 453 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Missouri 383 4. Comm'l Multi Prl 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Nebraska 346 5. Fidelity & Surety 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 2,298 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 7.45 7.47 7.01 8.05 7.30

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.00 2.39 0.00 0.08 1.02

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR 3.86 0.53 0.81 1.06 2.38 All other admitted assets/Total Assets 2.20 2.11 1.80 2.17 1.43National DPW ($000) 4,197 4,304 4,162 4,570 4,665 Invested Assets/Total Assets 90.35 88.04 91.19 89.71 90.25Adjusted Loss Ratio 30.53 57.77 23.51 47.80 53.03 Investment Income/Total Assets 3.53 3.12 2.99 2.65 2.44

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 71.1% Preferred Stocks - 0.0%

Common Stocks - 21.5% Mortgage Loans - 0.0%

Other Invstmts - 7.3% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Virginia - 14.1% Utah - 11.3% Kentucky - 9.7%

Missouri - 8.2% Nebraska - 7.4% All other - 49.3%

Comm'l Auto St - 100.0%

Total Cmbnd A&H - 0.0%

Aircraft - 0.0%

Comm'l Multi Prl - 0.0%

Fidelity & Surety - 0.0%

All Other - 0.0%

when an inter-company pooling arrangement exists.

PCH Mutual Ins Co. Inc. A RRG (Sarasota, FL)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

1605 Main Street NAIC Company Code : 11973 Total Assets 9,806 11,225 10,373 8,566 8,169Suite 800 Business Focus : Commercial General Liability Focus Policyholder Surplus 3,025 1,720 2,520 2,538 3,383Sarasota, FL 34236-5823 Geographic Focus: National Total Liabilities 6,781 9,505 7,853 6,028 4,786

NAIC Ownership Structure: Risk Retention Group Net Income 139 -1,667 537 32 609Tax Identification Number : 20-1065673 Total Revenue 3,998 4,466 3,102 2,360 2,676

Direct Premiums Written 4,694 4,834 3,561 3,009 3,167Net Premiums Written 3,711 4,510 2,447 2,280 2,505

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 3,838 4,385 3,030 2,308 2,607

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 3,631 7,049 6,119 4,187 3,123Demotech Financial Strength Rating A 03/08/13 Affirm Loss & LAE Reserves/ NPE (%) 83.08 118.56 231.21 215.71 145.72S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 7.33 -98.51 42.83 -1.15 29.41Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 1.23 2.62 0.97 0.90 0.74Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Teresa Marie Matthews Auditor Saslow Lufkin & Buggy LLPPhone : (941) 955-0793 Actuary Milliman Inc.Fax : (941) 366-1076 CEO --Email : tmatthews@pboa.com CFO Troy Winch

President Edgar Blumenfeld

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.47 1.08 0.89 0.67 0.94Net Investment Income/Earned Premiums 4.31 1.79 2.92 2.28 2.78Return on Average Equity (C&S) 4.80 -65.61 28.15 1.26 20.28Return on Avg Assets 1.56 -15.70 4.92 0.36 7.35Loss and LAE Ratio 46.63 120.52 41.77 57.27 12.75Expense Ratio 53.80 35.14 41.00 46.82 45.54Loss Ratio 26.87 79.39 22.45 42.97 22.39Combined Ratio 100.43 157.90 83.29 104.10 70.57Operating Ratio 96.26 156.07 80.94 101.85 67.90Investment ratio 4.17 1.84 2.35 2.25 2.67

Policyholder Dividend Ratio 0.00 2.24 0.52 0.00 12.28 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 10.19 41.17 69.17 32.49 24.61Cash, Common & Liquid Bonds / Liabilities 104.20 122.18 130.39 137.38 167.53Cash & Short-Term Investments / C&S 22.85 227.59 215.59 77.17 34.81Liabilities / Liquid Assets (IRIS Ratio) 96.00 119.00 94.00 81.00 64.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 142.41 102.29 128.91 155.75 212.74Cash From Underwriting ($000) 1,087 693 -663 -862 -211Net Cash From Operations ($000) 760 487 202 -903 -295Underwriting Cash Flow Ratio 145.35 123.83 82.42 76.14 90.38Operating Cash Flow Ratio 165.55 125.85 60.85 78.85 98.05Unassigned Funds / Total Assets 10.02 -4.98 0.98 0.77 10.22

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 141 119 94NPW to Policyholders' Surplus 300 --- 97 90 74Change in Net Premiums Written 33 -33 -46* -7 10Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 125* 90 84

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 0 9* 0 7* 0 9*

MSA: North Port-Bradenton-Sarasota, FL (Metro)

Distribution Channel: Direct Response

96.0

119.0

94.0

81.0

64.0

0

2,000

4,000

6,000

8,000

10,000

12,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

100.4

157.9

83.3

104.1

70.6

-80.00

-60.00

-40.00

-20.00

0.00

20.00

40.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 0.9* 0.7* 0.9*

Loss Adjustment Expense Ratio 19.76 41.13 19.32 14.30 -9.64 Gross Change in Policyholders' Surplus 50 -10 47 1 33Net Commission Ratio 19.37 15.93 26.51 20.34 19.02 Net Change in Adj Policyholders' Surplus 25 -10 38* -1 30*Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 94 81 64Tax, License & Fees Ratio 4.32 2.34 5.44 4.56 4.44 Agents' Bal to Policyholders' Surplus 40 --- 6 7 6Admin & Other Expense Ratio 30.11 16.86 9.05 21.92 22.08 1-Yr Resv Dev to Policyholders' Surplus 20 --- -49 -7 -53Gross Premiums Written ($000)3 4,694 4,834 3,561 3,009 3,167 2-Yr Resv Dev to Policyholders' Surplus 20 --- 72* -53 -46Loss & Loss Adj Expense ($000) 1,790 5,285 1,266 1,322 332 Est Curr Resv Defi/Policyholders' Surplus 25 --- -67 -12 18Other Underwriting Exp Incurred ($000) 1,997 1,445 1,143 1,067 1,141 *Indicates an unusual value.Net Underwriting Gains ($000) 52 -2,485 761 -81 1,134 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 79.06 93.30 68.70 75.77 79.07 complements of each ratio.Effective Tax Rate 34.55 NM 33.99 -715.67 31.85

Pre-Tax Operating Margin 5.30 -56.04 26.34 -1.24 33.00 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 21.87 14.46 -7.59 -17.42 -4.63

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 22.72 40.17 -17.38 -23.24 -20.61

Reinsurance Recoverable ex US Aff 1,497 1,688 1,640 1,121 1,744 Net Premiums Written Growth -8.66 21.54 -45.76 -6.82 9.86Retention Ratio (NPW/GPW) (%)3 79.06 93.30 68.70 75.77 79.07 Pre-Tax Operating Income Growth -73.93 NM NM NM NMUnauthorized Net Recov. (ex US Aff) (%) 19.84 19.96 20.00 20.61 16.34 Net Income Growth -74.18 NM NM -94.03 1,799.28Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 49.62 94.12 -13.19 -31.57 -25.43Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -7.95 2.99 -26.33 -15.51 5.27Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 86.84 76.40 56.52 15.94 -2.84

Capital & Surplus Five-year CAGR 51.24 24.36 24.94 13.67 6.06Admitted Assets Five-year CAGR 71.46 58.15 44.20 15.24 0.30

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 3,025 1,720 2,520 2,538 3,383 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 3,025 1,720 2,520 2,538 3,383 Combined NA NA NA NA NA ACL Risk Based Capital 1,016 1,056 899 776 710

Risk Based Capital Ratio (TAC/ACL RBC) 297.80 162.83 280.16 327.08 476.29

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 148.90 81.42 140.08 163.54 238.15

Change in Loss & LAE Resv / Reserves 49.62 94.12 -13.19 -31.57 -25.43 Realized Capital Gains (Losses) 0 -1 -4 33 101 Yr Loss Reserve Dev / 1Y Prior C&S 30.47 73.52 -48.97 -6.79 -52.74 Net Unrealized Capital Gains (Losses) -31 125 124 -67 1602 Yr Loss Reserve Dev / 2Y Prior C&S -4.50 68.80 72.06 -53.11 -46.39 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 83.08 118.56 231.21 215.71 145.72 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE 20.01 50.71 -27.79 -7.41 -51.35 Net Premiums Written / Avg C&S (%) 128.38 177.54 128.27 89.46 83.41IBNR/ Total Reserves 15.50 23.16 21.52 25.96 47.76 Liabilities / Capital & Surplus (%) 224.18 552.76 311.69 237.51 141.45Reserves/ Equity 120.04 409.90 242.85 164.99 92.30 Total Reins Recov Excl US Aff / C&S (%) 49.49 98.16 65.09 44.17 51.55

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

148.9

81.4

140.1163.5

238.1

0500

1,0001,5002,0002,5003,0003,5004,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

79.1

93.3

68.775.8 79.1

0

1,000

2,000

3,000

4,000

5,000

6,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

PCH Mutual Ins Co. Inc. A RRG (Sarasota, FL)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 866 1,999 1,022 3,675 3,851 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 4,694 4,834 3,561 3,009 3,167Common Stocks 5,509 2,058 1,897 1,792 2,420 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 4,694 4,834 3,561 3,009 3,167Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -983 -324 -1,115 -729 -663Occupied Properties 0 0 0 0 0 Net Premiums Written 3,711 4,510 2,447 2,280 2,505Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -127 125 -584 -28 -102Properties for Sale 0 0 0 0 0 Net Premiums Earned 3,838 4,385 3,030 2,308 2,607

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 691 3,914 5,432 1,958 1,178 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 7,066 7,970 8,351 7,425 7,448 Net Losses Paid - Commercial 517 858 2,102 1,768 857Premiums & Considerations Due 290 409 147 181 208 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 1,069 583 1,112 326 0 Net Losses Paid 517 858 2,102 1,768 857All Other Admitted Assets 1,381 2,262 763 634 513 Net LAE Paid 429 524 546 450 540Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 9,806 11,225 10,373 8,566 8,169 Change in Loss Reserves - Commercial 514 2,623 -1,422 -776 -273

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 329 1,280 39 -120 -792

Unpaid Losses 2,903 4,968 3,938 2,409 2,136 Net Change in Loss and LAE Reserves 843 3,903 -1,382 -896 -1,065Unpaid Loss Adj Expenses 729 2,081 2,181 1,778 986 Losses and LAE Incurred 1,790 5,285 1,266 1,322 332

Loss & Loss Adj Exp Reserves 3,631 7,049 6,119 4,187 3,123 Other Underwriting Expense Incurred 1,997 1,445 1,143 1,067 1,141Unearned Premiums 2,382 2,393 1,632 1,300 1,198 Other Underwriting Deductions 0 140 -140 0 0Total Reinsurance Liabilities 167 -624 -226 278 -17 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 602 547 319 263 270 Net Underwriting Gain (Loss) 52 -2,485 761 -81 1,134Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 98 16 0 320Other Liabilities 0 140 9 0 212 Total underwriting deductions 3,786 6,870 2,269 2,389 1,473

Total Liabilities 6,781 9,505 7,853 6,028 4,786

Income ($000)Total Capital and Surplus Net Investment Income 160 81 71 52 70

Common Capital Stock 0 0 0 0 0 Net Realized Capital Gains (Losses) 0 -1 -4 33 10Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus 983 -559 101 66 835 Income after cap gains (loss) before tax 212 -2,504 813 4 894Other Including Gross Contributed 2,042 2,279 2,418 2,472 2,548 Federal Income Tax 73 -837 276 -28 285

Capital & Surplus 3,025 1,720 2,520 2,538 3,383 Net Income 139 -1,667 537 32 609

Total Liabilities and C&S 9,806 11,225 10,373 8,566 8,169 Pre-tax Operating Income 212 -2,503 817 -29 883

Memo: Total Revenue 3,998 4,465 3,098 2,393 2,687Memo: Affiliated Investments ($000) Memo: Paid Expenses 1,880 2,056 1,750 1,614 1,685

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 866 5,642 2,911 4,531 4,343Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 77All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 160 81 71 52 70 Class 6 0 0 0 0 0R li d C it l G i 0 1 4 33 10Realized Capital Gains 0 -1 -4 33 10Unrealized Capital Gains -31 125 124 -67 160Total Cash & Investments 7,066 7,970 8,351 7,425 7,448Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 866 5,642 2,911 4,531 4,420Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 5,509 2,058 1,897 1,792 2,420Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 0 409 407 396 316Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 1,489 508 3,160 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 3,851 3,851 3,792 3,734 15,227Common Stock 2,420 2,420 2,029 -- 6,868Preferred Stock 0 0 0 -- 0Total 6,270 6,270 5,821 3,734 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.00 1.00 1.00 1.02Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 12.25 25.08 12.24 49.49 51.70Common Stocks / C&S 182.13 119.67 75.29 70.61 71.52Unaff common stock/Invested Assets 77.97 25.82 22.72 24.13 32.49

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Washington 785 1. Oth, Prod Liab Cmbnd 3,167 Cash/Invested Assets 9.78 49.10 65.04 26.37 15.812. Pennsylvania 551 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Michigan 269 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Georgia 260 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Maryland 179 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 1,124 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 2.96 3.64 1.41 2.11 2.55

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 10.90 5.20 10.72 3.80 0.00

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA 40.64 9.79 -0.22 -9.08 All other admitted assets/Total Assets 14.08 20.15 7.36 7.40 6.27National DPW ($000) 4,694 4,834 3,561 3,009 3,167 Invested Assets/Total Assets 72.06 71.01 80.51 86.69 91.17Adjusted Loss Ratio 28.33 62.30 27.51 42.41 30.97 Investment Income/Total Assets 1.63 0.72 0.69 0.61 0.85

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 51.7% Preferred Stocks - 0.0%

Common Stocks - 32.5% Mortgage Loans - 0.0%

Other Invstmts - 15.8% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Washington - 24.8% Pennsylvania - 17.4%

Michigan - 8.5% Georgia - 8.2%

Maryland - 5.6% All other - 35.5%

Oth, Prod Liab Cmbnd - 100.0%

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%

when an inter-company pooling arrangement exists.

Ponce De Leon LTC RRG Inc. (Alpharetta, GA)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

3655 Brookside Parkway NAIC Company Code : 11809 Total Assets 18,355 18,528 18,727 16,789 14,352Suite 200 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 7,808 9,165 8,622 8,194 7,831Alpharetta, GA 30022-1429 Geographic Focus: Regional - Southern Quadrant Total Liabilities 10,546 9,363 10,104 8,595 6,521

NAIC Ownership Structure: Risk Retention Group Net Income 566 140 -523 -527 -471Tax Identification Number : 02-0650614 Total Revenue 6,190 5,385 5,246 5,249 3,841

Direct Premiums Written 5,607 5,191 5,597 4,524 2,754Net Premiums Written 5,249 4,677 5,399 4,165 2,476

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 5,388 4,773 4,861 4,918 3,502

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 6,285 5,524 5,918 5,249 4,801Demotech Financial Strength Rating A 03/08/13 Affirm Loss & LAE Reserves/ NPE (%) 125.08 125.57 113.56 118.50 144.64S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) 13.98 12.43 -8.79 -11.41 -6.32Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 0.67 0.51 0.63 0.51 0.32Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Carolyn Verde Auditor Johnson Lambert LLPPhone : (678) 781-2400 Actuary Milliman Inc.Fax : (678) 781-2450 CEO --Email : cverde@usre.com CFO --

President Jack Mease Norton

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 4.19 2.97 2.20 2.14 1.77Net Investment Income/Earned Premiums 13.62 10.41 6.62 7.85 10.05Return on Average Equity (C&S) 7.13 1.71 -5.99 -6.50 -5.77Return on Avg Assets 3.07 0.80 -2.95 -3.04 -3.05Loss and LAE Ratio 52.46 41.24 79.38 83.17 74.83Expense Ratio 42.94 51.26 39.91 50.03 70.15Loss Ratio 17.63 13.60 43.80 38.13 30.30Combined Ratio 95.40 92.50 119.29 133.20 144.98Operating Ratio 82.13 82.30 111.94 126.55 137.88Investment ratio 13.27 10.20 7.35 6.64 7.10

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 32.90 26.39 12.96 6.17 19.28Cash, Common & Liquid Bonds / Liabilities 154.98 181.95 160.80 167.06 203.17Cash & Short-Term Investments / C&S 44.44 26.96 15.19 6.47 16.05Liabilities / Liquid Assets (IRIS Ratio) 64.00 55.00 62.00 59.00 49.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 177.01 209.58 179.76 190.35 219.09Cash From Underwriting ($000) -1,085 -418 -886 -2,352 -2,031Net Cash From Operations ($000) -921 -98 -723 -1,746 -1,198Underwriting Cash Flow Ratio 82.82 90.81 84.81 65.82 58.28Operating Cash Flow Ratio 92.18 98.80 88.87 62.55 49.31Unassigned Funds / Total Assets 0.82 8.03 7.32 5.12 5.80

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 65 55 35NPW to Policyholders' Surplus 300 --- 63 51 32Change in Net Premiums Written 33 -33 15 -23 -41*Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 95 118* 129*

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 2 2* 2 1* 1 8*

MSA: Atlanta-Sandy Springs-Marietta, GA (Metro)

Distribution Channel: Direct Response, General Agnt/Managing General Agnt

64.0

55.0

62.059.0

49.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

95.4 92.5

119.3133.2

145.0

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 2.2* 2.1* 1.8*

Loss Adjustment Expense Ratio 34.83 27.64 35.59 45.04 44.53 Gross Change in Policyholders' Surplus 50 -10 -6 -5 -4Net Commission Ratio 1.44 11.59 5.55 5.69 3.63 Net Change in Adj Policyholders' Surplus 25 -10 -1 -6 0Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 62 59 49Tax, License & Fees Ratio 4.39 3.68 2.37 2.68 2.84 Agents' Bal to Policyholders' Surplus 40 --- 13 10 1Admin & Other Expense Ratio 37.11 36.00 31.99 41.67 63.68 1-Yr Resv Dev to Policyholders' Surplus 20 --- 12 2 -4Gross Premiums Written ($000)3 5,607 5,191 5,597 4,524 2,754 2-Yr Resv Dev to Policyholders' Surplus 20 --- -8 17 -4Loss & Loss Adj Expense ($000) 2,827 1,969 3,859 4,091 2,621 Est Curr Resv Defi/Policyholders' Surplus 25 --- 0 18 -13Other Underwriting Exp Incurred ($000) 2,254 2,398 2,154 2,084 1,737 *Indicates an unusual value.Net Underwriting Gains ($000) 307 407 -1,152 -1,256 -855 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 93.62 90.11 96.46 92.07 89.89 complements of each ratio.Effective Tax Rate 41.86 75.66 NM NM 0.00

Pre-Tax Operating Margin 17.92 18.91 -14.63 -17.63 -13.43 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth -4.60 0.94 1.07 -10.35 -14.51

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth -6.78 -11.22 7.92 -14.94 -24.13

Reinsurance Recoverable ex US Aff -559 -144 -83 50 105 Net Premiums Written Growth -12.66 -10.89 15.42 -22.86 -40.55Retention Ratio (NPW/GPW) (%)3 93.62 90.11 96.46 92.07 89.89 Pre-Tax Operating Income Growth -23.14 -8.19 NM NM NMUnauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 0.00 0.00 0.00 Net Income Growth -45.72 -75.20 NM NM NMNonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth -11.45 -12.12 7.15 -11.31 -8.54Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth -12.30 -7.42 7.83 -19.18 -39.11Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR 34.45 14.51 4.91 -3.57 -10.43

Capital & Surplus Five-year CAGR 5.64 4.74 2.88 1.27 -0.24Admitted Assets Five-year CAGR 17.10 9.03 3.95 -1.39 -5.69

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 7,808 9,165 8,622 8,194 7,831 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 7,808 9,165 8,622 8,194 7,831 Combined NA NA NA NA NA ACL Risk Based Capital 881 981 906 904 813

Risk Based Capital Ratio (TAC/ACL RBC) 886.81 934.42 952.06 906.46 962.84

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 443.41 467.21 476.03 453.23 481.42

Change in Loss & LAE Resv / Reserves -11.45 -12.12 7.15 -11.31 -8.54 Realized Capital Gains (Losses) -136 -442 -59 171 451 Yr Loss Reserve Dev / 1Y Prior C&S -13.32 -14.91 11.96 2.37 -3.78 Net Unrealized Capital Gains (Losses) -360 305 394 4 1502 Yr Loss Reserve Dev / 2Y Prior C&S -25.82 -19.86 -7.85 17.16 -3.70 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE 125.08 125.57 113.56 118.50 144.64 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE -19.60 -24.38 22.55 4.16 -8.84 Net Premiums Written / Avg C&S (%) 66.12 57.06 61.84 51.37 30.30IBNR/ Total Reserves 49.83 37.31 54.33 53.56 54.82 Liabilities / Capital & Surplus (%) 135.06 102.16 117.19 104.90 83.27Reserves/ Equity 80.49 60.27 68.64 64.06 61.31 Total Reins Recov Excl US Aff / C&S (%) -7.16 -1.57 -0.96 0.61 1.34

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

443.4

467.2

476.0

453.2

481.4

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

93.6

90.1

96.5

92.1

89.9

0

1,000

2,000

3,000

4,000

5,000

6,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Ponce De Leon LTC RRG Inc. (Alpharetta, GA)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 11,831 12,828 12,815 11,668 9,579 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 5,607 5,191 5,597 4,524 2,754Common Stocks 1,043 1,737 2,123 2,161 2,413 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 5,607 5,191 5,597 4,524 2,754Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -358 -513 -198 -359 -278Occupied Properties 0 0 0 0 0 Net Premiums Written 5,249 4,677 5,399 4,165 2,476Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve -139 -96 538 -753 -1,026Properties for Sale 0 0 0 0 0 Net Premiums Earned 5,388 4,773 4,861 4,918 3,502

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 3,470 2,471 1,310 530 1,257 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 16,344 17,036 16,248 14,359 13,249 Net Losses Paid - Commercial 1,801 1,261 1,648 2,652 1,507Premiums & Considerations Due 576 691 1,127 782 105 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 1,007 462 606 537 316 Net Losses Paid 1,801 1,261 1,648 2,652 1,507All Other Admitted Assets 427 339 747 1,111 682 Net LAE Paid 1,839 1,469 1,816 2,108 1,562Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 18,355 18,528 18,727 16,789 14,352 Change in Loss Reserves - Commercial -851 -612 481 -776 -445

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 38 -149 -86 107 -3

Unpaid Losses 5,348 4,737 5,217 4,441 3,996 Net Change in Loss and LAE Reserves -813 -761 395 -669 -448Unpaid Loss Adj Expenses 937 787 701 808 805 Losses and LAE Incurred 2,827 1,969 3,859 4,091 2,621

Loss & Loss Adj Exp Reserves 6,285 5,524 5,918 5,249 4,801 Other Underwriting Expense Incurred 2,254 2,398 2,154 2,084 1,737Unearned Premiums 2,632 2,536 3,074 2,321 1,295 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 739 312 296 317 0 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 858 887 816 708 426 Net Underwriting Gain (Loss) 307 407 -1,152 -1,256 -855Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 32 105 0 0 0 Total underwriting deductions 5,081 4,366 6,013 6,174 4,358

Total Liabilities 10,546 9,363 10,104 8,595 6,521

Income ($000)Total Capital and Surplus Net Investment Income 715 487 357 327 249

Common Capital Stock 18 18 19 20 20 Net Realized Capital Gains (Losses) -136 -442 -59 171 45Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 5,807 5,806 5,358 5,350 4,980 All Other Income 87 124 27 4 91Unassigned Surplus 151 1,487 1,372 859 832 Income after cap gains (loss) before tax 974 577 -827 -754 -471Other Including Gross Contributed 1,832 1,853 1,874 1,965 1,999 Federal Income Tax 408 437 -303 -227 0

Capital & Surplus 7,808 9,165 8,622 8,194 7,831 Net Income 566 140 -523 -527 -471

Total Liabilities and C&S 18,355 18,528 18,727 16,789 14,352 Pre-tax Operating Income 1,109 1,019 -768 -925 -516

Memo: Total Revenue 6,055 4,943 5,187 5,420 3,886Memo: Affiliated Investments ($000) Memo: Paid Expenses 4,134 3,888 4,094 4,349 3,628

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 11,831 12,828 12,815 11,668 9,579Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 715 487 357 327 249 Class 6 0 0 0 0 0R li d C it l G i 136 442 59 171 45Realized Capital Gains -136 -442 -59 171 45Unrealized Capital Gains -360 305 394 4 150Total Cash & Investments 16,344 17,036 16,248 14,359 13,249Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 11,831 12,828 12,815 11,668 9,579Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 1,043 1,737 2,123 2,161 2,413Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 1,384

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 778

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 2,412 1,941 1,787Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 9,579 9,858 9,677 9,372 38,486Common Stock 2,413 2,413 1,858 -- 6,684Preferred Stock 0 0 0 -- 0Total 11,992 12,271 11,535 9,372 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) 1.00 1.00 1.00 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 72.39 75.30 78.87 81.26 72.30Common Stocks / C&S 13.36 18.96 24.62 26.38 30.81Unaff common stock/Invested Assets 6.38 10.20 13.07 15.05 18.21

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Florida 2,754 1. Med Prof Liab 1,928 Cash/Invested Assets 21.23 14.50 8.06 3.69 9.492. Alaska 0 2. Oth, Prod Liab Cmbnd 826 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Alabama 0 3. Total Cmbnd A&H 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Arkansas 0 4. Aircraft 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Arizona 0 5. Comm'l Auto St 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 0 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 3.14 3.73 6.02 4.66 0.73

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 5.49 2.49 3.23 3.20 2.20

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR 17.10 2.72 0.08 -7.23 -15.50 All other admitted assets/Total Assets 2.33 1.83 3.99 6.61 4.75National DPW ($000) 5,607 5,191 5,597 4,524 2,754 Invested Assets/Total Assets 89.05 91.95 86.76 85.53 92.32Adjusted Loss Ratio 16.48 12.25 45.72 38.57 23.12 Investment Income/Total Assets 3.90 2.63 1.91 1.95 1.73

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 72.3% Preferred Stocks - 0.0%

Common Stocks - 18.2% Mortgage Loans - 0.0%

Other Invstmts - 9.5% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Florida - 100.0% Alaska - 0.0% Alabama - 0.0%

Arkansas - 0.0% Arizona - 0.0% All other - 0.0%

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%

when an inter-company pooling arrangement exists.

Premier Physicians Ins Co. (Carson City, NV)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

575 South Saliman Road NAIC Company Code : 12613 Total Assets 9,531 10,008 11,467 12,457 14,386Carson City, NV 89701-5000 Business Focus : Commercial Medical Malpractice Focus Policyholder Surplus 3,187 3,340 2,802 3,056 3,779

Geographic Focus: Regional - Western Quadrant Total Liabilities 6,344 6,667 8,665 9,401 10,607NAIC Ownership Structure: Risk Retention Group Net Income -198 399 -131 238 640Tax Identification Number : 20-3831358 Total Revenue 5,633 5,957 4,272 5,663 5,170

Direct Premiums Written 5,792 6,459 6,297 7,217 7,321Net Premiums Written 5,792 6,459 4,097 6,069 5,440

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 5,521 5,866 4,181 5,574 5,073

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 2,786 2,979 2,934 3,952 3,435Demotech Financial Strength Rating A 03/06/13 Affirm Loss & LAE Reserves/ NPE (%) 45.86 47.66 87.53 64.23 79.60S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) -10.06 19.40 -3.84 14.26 31.02Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 1.82 1.93 1.46 1.99 1.44Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Jessica Contreras Auditor Casey Neilon & Associates LLCPhone : (775) 887-2480 Actuary Bickerstaff, Whatley, RyanFax : (775) 887-2481 CEO K. Warren VolkerEmail : jessicacontreras@pgmnv.com CFO --

President --

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets 2.04 1.32 1.11 1.02 0.96Net Investment Income/Earned Premiums 1.93 1.41 2.20 1.46 1.79Return on Average Equity (C&S) -6.64 12.44 -4.12 8.75 19.63Return on Avg Assets -2.31 4.19 -1.24 2.08 4.97Loss and LAE Ratio 34.10 41.82 51.71 53.10 33.48Expense Ratio 69.94 44.63 54.47 38.14 45.24Loss Ratio 13.00 26.33 19.85 15.09 5.18Combined Ratio 104.04 86.45 106.18 91.24 78.71Operating Ratio 102.01 84.89 104.02 89.64 76.80Investment ratio 2.03 1.55 2.16 1.59 1.92

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 112.21 115.72 24.32 25.83 39.92Cash, Common & Liquid Bonds / Liabilities 112.21 115.72 38.56 101.51 103.48Cash & Short-Term Investments / C&S 223.33 230.99 75.20 79.45 112.05Liabilities / Liquid Assets (IRIS Ratio) 89.00 86.00 100.00 98.00 96.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 142.55 122.82 103.24 105.74 113.79Cash From Underwriting ($000) 2,230 990 2,155 477 1,542Net Cash From Operations ($000) 2,111 781 2,113 670 1,454Underwriting Cash Flow Ratio 163.75 118.58 150.91 111.19 132.49Operating Cash Flow Ratio 170.69 124.30 154.91 111.31 138.11Unassigned Funds / Total Assets 4.56 6.44 0.73 2.19 6.87

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 225 236 194NPW to Policyholders' Surplus 300 --- 146 199 144Change in Net Premiums Written 33 -33 -37* 48* -10Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 93 95 83

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 1 1* 1 0* 0 9*

MSA: Carson City, NV (Metro)

Distribution Channel: Direct Response

89.0

86.0

100.098.0

96.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

104.0

86.4

106.2

91.2

78.7

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 1.1* 1.0* 0.9*

Loss Adjustment Expense Ratio 21.10 15.48 31.86 38.01 28.29 Gross Change in Policyholders' Surplus 50 -10 -16* 9 24Net Commission Ratio 26.21 3.90 7.38 6.73 7.39 Net Change in Adj Policyholders' Surplus 25 -10 -19* 4 18Salaries & Benefits Ratio 0.00 9.48 19.04 13.45 15.53 Liabilities to Liquid Assets 100 --- 100 98 96Tax, License & Fees Ratio 1.12 0.58 1.13 0.86 0.93 Agents' Bal to Policyholders' Surplus 40 --- 0 1 11Admin & Other Expense Ratio 42.60 30.67 26.92 17.09 21.40 1-Yr Resv Dev to Policyholders' Surplus 20 --- -43 -17 -45Gross Premiums Written ($000)3 5,792 6,459 6,297 7,217 7,321 2-Yr Resv Dev to Policyholders' Surplus 20 --- -12 -43 -14Loss & Loss Adj Expense ($000) 1,882 2,453 2,162 2,960 1,698 Est Curr Resv Defi/Policyholders' Surplus 25 --- -53 -52 -19Other Underwriting Exp Incurred ($000) 4,051 2,883 2,232 2,315 2,461 *Indicates an unusual value.Net Underwriting Gains ($000) -413 531 -212 300 913 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 100.00 100.00 65.06 84.10 74.31 complements of each ratio.Effective Tax Rate NM 35.91 NM 40.93 37.12

Pre-Tax Operating Margin -5.34 10.44 -2.86 6.86 19.55 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth 27.23 5.00 14.58 8.64 15.49

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth 55.33 5.10 29.96 8.50 12.83

Reinsurance Recoverable ex US Aff 511 -177 -2,433 -1,589 -2,588 Net Premiums Written Growth 15.40 11.51 -36.57 48.14 -10.37Retention Ratio (NPW/GPW) (%)3 100.00 100.00 65.06 84.10 74.31 Pre-Tax Operating Income Growth NM NM NM NM 160.26Unauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 0.00 0.00 0.00 Net Income Growth NM NM NM NM 168.53Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth 97.78 6.95 -1.52 34.70 -13.09Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth 15.40 11.51 -2.50 14.60 1.45Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR NA 43.71 40.14 33.15 21.03

Capital & Surplus Five-year CAGR NA 11.26 3.68 4.73 2.09Admitted Assets Five-year CAGR NA 28.91 25.17 21.67 13.94

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 3,187 3,340 2,802 3,056 3,779 Environmental NA NA NA NA NA RBC - Total Adjusted Capital NA NA NA 3,056 3,779 Combined NA NA NA NA NA ACL Risk Based Capital NA NA NA 925 1,021

Risk Based Capital Ratio (TAC/ACL RBC) NA NA NA 330.45 370.34

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) NA NA NA 165.22 185.17

Change in Loss & LAE Resv / Reserves 97.78 6.95 -1.52 34.70 -13.09 Realized Capital Gains (Losses) 0 0 -37 15 71 Yr Loss Reserve Dev / 1Y Prior C&S 4.43 11.98 -42.75 -16.70 -45.39 Net Unrealized Capital Gains (Losses) 0 0 116 -49 762 Yr Loss Reserve Dev / 2Y Prior C&S 8.25 5.43 -12.49 -43.14 -13.66 Dividends to Stockholders 0 -188 0 0 0Loss and LAE Reserves / NPE 45.86 47.66 87.53 64.23 79.60 Dividend Payout Ratio (%) 0.00 47.27 0.00 0.00 0.001 Yr Loss Reserve Development / NPE 2.74 6.51 -34.15 -8.40 -27.34 Net Premiums Written / Avg C&S (%) 193.81 201.51 128.75 222.81 166.95IBNR/ Total Reserves 0.00 0.00 0.00 0.00 0.00 Liabilities / Capital & Surplus (%) 199.03 199.61 309.24 307.61 280.66Reserves/ Equity 87.40 89.20 104.72 129.33 90.89 Total Reins Recov Excl US Aff / C&S (%) 16.03 -5.30 -86.83 -51.99 -68.48

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

165.2

185.2

0500

1,0001,5002,0002,5003,0003,5004,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

100.0 100.0

65.1

84.174.3

01,0002,0003,0004,0005,0006,0007,0008,000

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Premier Physicians Ins Co. (Carson City, NV)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 0 0 5,295 5,924 5,030 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 5,792 6,459 6,297 7,217 7,321Common Stocks 0 0 1,234 1,190 1,711 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 5,792 6,459 6,297 7,217 7,321Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 0 0 -2,200 -1,148 -1,881Occupied Properties 0 0 0 0 0 Net Premiums Written 5,792 6,459 4,097 6,069 5,440Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 271 592 -84 495 367Properties for Sale 0 0 0 0 0 Net Premiums Earned 5,521 5,866 4,181 5,574 5,073

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 7,118 7,716 2,107 2,428 4,235 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 7,118 7,716 8,636 9,542 10,976 Net Losses Paid - Commercial 505 1,384 616 77 383Premiums & Considerations Due 96 47 4 30 414 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 511 349 65 463 507 Net Losses Paid 505 1,384 616 77 383All Other Admitted Assets 1,806 1,896 2,762 2,421 2,489 Net LAE Paid 0 876 1,592 1,864 1,832Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 9,531 10,008 11,467 12,457 14,386 Change in Loss Reserves - Commercial 212 161 214 764 -120

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 1,165 32 -260 254 -397

Unpaid Losses 1,621 1,782 1,997 2,761 2,641 Net Change in Loss and LAE Reserves 1,377 194 -45 1,018 -517Unpaid Loss Adj Expenses 1,165 1,197 937 1,192 795 Losses and LAE Incurred 1,882 2,453 2,162 2,960 1,698

Loss & Loss Adj Exp Reserves 2,786 2,979 2,934 3,952 3,435 Other Underwriting Expense Incurred 4,051 2,883 2,232 2,315 2,461Unearned Premiums 2,566 3,158 3,074 3,569 3,937 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 0 257 2,433 1,589 2,726 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 885 117 39 37 106 Net Underwriting Gain (Loss) -413 531 -212 300 913Payable to Parent, Subs & Affiliates 0 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 107 156 185 252 404 Total underwriting deductions 5,933 5,336 4,394 5,274 4,159

Total Liabilities 6,344 6,667 8,665 9,401 10,607

Income ($000)Total Capital and Surplus Net Investment Income 112 91 90 89 97

Common Capital Stock 0 0 0 0 0 Net Realized Capital Gains (Losses) 0 0 -37 15 7Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus 435 645 84 273 988 Income after cap gains (loss) before tax -301 622 -159 403 1,017Other Including Gross Contributed 2,752 2,695 2,718 2,783 2,791 Federal Income Tax -102 223 -28 165 378

Capital & Surplus 3,187 3,340 2,802 3,056 3,779 Net Income -198 399 -131 238 640

Total Liabilities and C&S 9,531 10,008 11,467 12,457 14,386 Pre-tax Operating Income -301 622 -122 388 1,011

Memo: Total Revenue 5,633 5,957 4,235 5,677 5,177Memo: Affiliated Investments ($000) Memo: Paid Expenses 5,460 3,759 3,862 4,225 4,278

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 0 0 0 5,924 5,030Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 112 91 90 89 97 Class 6 0 0 0 0 0R li d C it l G i 0 0 37 15 7Realized Capital Gains 0 0 -37 15 7Unrealized Capital Gains 0 0 116 -49 76Total Cash & Investments 7,118 7,716 8,636 9,542 10,976Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 0 0 0 5,924 5,030Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 0 1,234 1,190 1,711Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) NA NA NA 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) NA NA NA 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 114 392Issued State Rev Obligations ($000) 0 0 0 1,266 968Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 5,030 5,030 5,063 4,855 19,979Common Stock 1,711 1,711 1,575 -- 4,998Preferred Stock 0 0 0 -- 0Total 6,742 6,742 6,639 4,855 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) NA NA NA 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 0.00 0.00 61.31 62.09 45.83Common Stocks / C&S 0.00 0.00 44.04 38.93 45.28Unaff common stock/Invested Assets 0.00 0.00 14.29 12.47 15.59

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Nevada 7,079 1. Med Prof Liab 7,321 Cash/Invested Assets 100.00 100.00 24.40 25.44 38.582. California 216 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Arizona 26 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Alaska 0 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Alabama 0 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 0 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 1.00 0.47 0.03 0.24 2.87

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 5.37 3.49 0.57 3.72 3.53

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA NA NA 17.24 7.84 All other admitted assets/Total Assets 18.94 18.95 24.09 19.44 17.30National DPW ($000) 5,792 6,459 6,297 7,217 7,321 Invested Assets/Total Assets 74.69 77.10 75.31 76.60 76.30Adjusted Loss Ratio 37.35 48.15 26.16 11.99 7.57 Investment Income/Total Assets 1.17 0.91 0.79 0.71 0.68

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 45.8% Preferred Stocks - 0.0%

Common Stocks - 15.6% Mortgage Loans - 0.0%

Other Invstmts - 38.6% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Nevada - 96.7% California - 2.9% Arizona - 0.4%

Alaska - 0.0% Alabama - 0.0% All other - 0.0%

Med Prof Liab - 100.0%

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%

when an inter-company pooling arrangement exists.

Sigma RRG Inc. (Washington, DC)Address and Geographic Business Profile HIGHLIGHTS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

c/o Aon Risk Services, Inc. NAIC Company Code : 13557 Total Assets 5,721 7,304 9,824 10,992 13,1621120 20th Street, NW, Suite 60 Business Focus : Commercial General Liability Focus Policyholder Surplus 1,323 1,898 3,532 4,592 5,461Washington, DC 20036-3406 Geographic Focus: Regional - Northeastern Quadrant Total Liabilities 4,398 5,406 6,292 6,400 7,701

NAIC Ownership Structure: Risk Retention Group Net Income 23 75 531 655 531Tax Identification Number : 26-3690684 Total Revenue 2,580 1,096 2,144 2,529 2,435

Direct Premiums Written 3,878 2,120 2,849 2,351 2,344Net Premiums Written 3,515 1,770 2,849 2,351 2,344

Credit Ratings Rating Date Direction Watch/Outlook Net Premiums Earned 2,578 1,081 2,097 2,538 2,349

AM Best Financial Strength Rating -- -- -- Not Covered by SNL Loss & Loss Adj Exp Reserves 2,330 2,920 3,450 4,062 5,220Demotech Financial Strength Rating A 03/06/13 Affirm Loss & LAE Reserves/ NPE (%) NA 247.74 166.42 161.72 205.51S&P Financial Strength Rating -- -- -- -- Pre-tax Operating ROAE (%) NA 9.19 35.17 26.49 16.17Moody's Financial Strength Rating -- -- -- -- Operating Leverage (%)1 2.66 0.93 0.81 0.51 0.43Fitch Financial Strength Rating -- -- -- --

STATUTORY CONTACT INFORMATION OFFICERS & ADVISORS

Name : Emi Swaim Auditor Saslow Lufkin & Buggy LLPPhone : (202) 862-5339 Actuary Aon Global Risk ConsultingFax : (847) 953-3462 CEO Richard A. Graciano Jr.Email : emi.swaim@aon.com CFO --

President Ross J. Nese

PROFITABILITY RATIOS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Net Yield on Invested Assets NA 0.41 0.85 -0.12 0.91Net Investment Income/Earned Premiums 0.06 0.89 1.65 -0.37 3.69Return on Average Equity (C&S) NA 5.33 22.77 17.07 10.80Return on Avg Assets NA 1.44 7.25 6.90 4.75Loss and LAE Ratio 90.39 65.98 50.14 48.61 58.93Expense Ratio 6.55 14.35 9.53 11.88 10.88Loss Ratio 90.39 -72.00 43.54 37.58 37.05Combined Ratio 96.94 80.33 59.67 60.49 69.81Operating Ratio 96.86 78.86 57.43 60.84 66.13Investment ratio 0.08 1.46 2.25 -0.35 3.68

Policyholder Dividend Ratio 0.00 0.00 0.00 0.00 0.00 CASH FLOW & LIQUIDITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Cash, Short-Term Investments / Liabilities 88.81 86.41 103.29 119.35 123.75Cash, Common & Liquid Bonds / Liabilities 88.81 86.41 112.11 131.81 135.23Cash & Short-Term Investments / C&S 295.17 246.08 183.99 166.33 174.50Liabilities / Liquid Assets (IRIS Ratio) 113.00 116.00 89.00 76.00 74.00Affiliated Investments / Capital & Surplus 0.00 0.00 0.00 0.00 0.00Reserve coverage2 107.65 95.38 121.01 134.89 140.58Cash From Underwriting ($000) 2,538 664 1,299 1,628 1,691Net Cash From Operations ($000) 2,538 376 1,287 1,044 1,592Underwriting Cash Flow Ratio 4,067.05 260.32 265.07 281.02 438.11Operating Cash Flow Ratio 4,067.05 333.95 271.68 345.13 462.10Unassigned Funds / Total Assets 0.41 1.35 6.41 11.69 13.80

Unusual Values Equal to orIRIS RATIO ANALYSIS (%) Over Under 2010Y 2011Y 2012Y

GPW to Policyholders' Surplus3 900 --- 81 51 43NPW to Policyholders' Surplus 300 --- 81 51 43Change in Net Premiums Written 33 -33 61* -17 0Surplus Aid to Policyholders' Surplus 15 --- 0 0 0Two-Year Overall Operating Ratio 100 --- 65 59 63

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y I t t Yi ld 6 5 3 0 8* 0 0* 0 9*

MSA: Washington-Arlington-Alexandria, DC-VA-MD-WV (Metro)

Distribution Channel: Direct Response

113.0 116.0

89.0

76.0 74.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2008Y 2009Y 2010Y 2011Y 2012Y

Liquidity ($000)Total Assets Total Liabilities Liabilities / Liquid Assets (IRIS Ratio)

96.9

80.3

59.7 60.569.8

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

2008Y 2009Y 2010Y 2011Y 2012Y

Profitability Ratios (%)

Return on Average Equity (C&S) Return on Avg Assets Net Yield on Invested Assets Combined Ratio

UNDERWRITING ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Investment Yield 6.5 3 0.8* 0.0* 0.9*

Loss Adjustment Expense Ratio 0.00 137.98 6.60 11.03 21.88 Gross Change in Policyholders' Surplus 50 -10 86* 30 19Net Commission Ratio 0.00 0.00 0.00 0.00 0.00 Net Change in Adj Policyholders' Surplus 25 -10 28* 19 12Salaries & Benefits Ratio 0.00 0.00 0.00 0.00 0.00 Liabilities to Liquid Assets 100 --- 89 76 74Tax, License & Fees Ratio 1.79 2.43 2.21 2.90 2.69 Agents' Bal to Policyholders' Surplus 40 --- 67* 48* 43*Admin & Other Expense Ratio 4.76 11.92 7.32 8.98 8.18 1-Yr Resv Dev to Policyholders' Surplus 20 --- -24 -23 -13Gross Premiums Written ($000)3 3,878 2,120 2,849 2,351 2,344 2-Yr Resv Dev to Policyholders' Surplus 20 --- -78 -6 -38Loss & Loss Adj Expense ($000) 2,330 713 1,051 1,234 1,384 Est Curr Resv Defi/Policyholders' Surplus 25 --- -15 18 -45Other Underwriting Exp Incurred ($000) 230 254 272 279 255 *Indicates an unusual value.Net Underwriting Gains ($000) 18 114 774 1,025 709 NOTE: Year to year assessment of IRIS Ratios is not always significant due to periodic changes in the Retention Ratio 90.65 83.49 100.00 100.00 100.00 complements of each ratio.Effective Tax Rate -19.33 42.05 33.70 35.30 33.68

Pre-Tax Operating Margin 0.76 11.81 38.29 40.17 32.69 GROWTH RATES & TRENDS (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Admitted Assets Growth NA 27.66 34.50 11.89 19.74

REINSURANCE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Total Liabilities Growth NA 22.91 16.39 1.72 20.32

Reinsurance Recoverable ex US Aff -24 -23 0 0 0 Net Premiums Written Growth NA -49.65 60.99 -17.49 -0.28Retention Ratio (NPW/GPW) (%)3 90.65 83.49 100.00 100.00 100.00 Pre-Tax Operating Income Growth NA 562.42 534.04 23.74 -21.65Unauthorized Net Recov. (ex US Aff) (%) 0.00 0.00 NA NA NA Net Income Growth NA 221.69 608.30 23.21 -18.87Nonaffiliated Reins Assumed / GPW (%) 0.00 0.00 0.00 0.00 0.00 Loss & Loss Adj Exp Reserves Growth NA 25.30 18.16 17.72 28.51Reinsurance Payable on Losses, LAE 0 0 0 0 0 Direct Premiums Written Growth NA -45.34 34.41 -17.49 -0.28Reinsurance on Known Case Reserves 0 0 0 0 0 Total Liabilities Five-year CAGR NA NA NA 13.32 15.03

Capital & Surplus Five-year CAGR NA NA NA 51.40 42.53Admitted Assets Five-year CAGR NA NA NA 24.32 23.15

ASBESTOS/ENVIRONMENTAL RESV 2008Y 2009Y 2010Y 2011Y 2012Y

One-Year Survival Ratio (%) Asbestos NA NA NA NA NA Environmental NA NA NA NA NA Combined NA NA NA NA NA

Three-Year Survival Ratio (%) CAPITAL/LEVERAGE ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Asbestos NA NA NA NA NA Capital and Surplus 1,323 1,898 3,532 4,592 5,461 Environmental NA NA NA NA NA RBC - Total Adjusted Capital 1,323 1,898 3,532 4,592 5,461 Combined NA NA NA NA NA ACL Risk Based Capital 485,146 409 496 589 758

Risk Based Capital Ratio (TAC/ACL RBC) 0.27 464.14 711.89 779.62 720.28

RESERVE ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Co. Action Level RBC (TAC/(ACL RBC*2)) 0.14 232.07 355.94 389.81 360.14

Change in Loss & LAE Resv / Reserves NA 25.30 18.16 17.72 28.51 Realized Capital Gains (Losses) 0 0 -19 -4 51 Yr Loss Reserve Dev / 1Y Prior C&S NA -56.15 -24.28 -23.21 -13.37 Net Unrealized Capital Gains (Losses) 0 0 0 0 02 Yr Loss Reserve Dev / 2Y Prior C&S 0.00 0.00 -77.53 -6.47 -38.27 Dividends to Stockholders 0 0 0 0 0Loss and LAE Reserves / NPE NA 247.74 166.42 161.72 205.51 Dividend Payout Ratio (%) 0.00 0.00 0.00 0.00 0.001 Yr Loss Reserve Development / NPE 0.00 -68.76 -21.99 -32.31 -26.14 Net Premiums Written / Avg C&S (%) NA 125.62 122.06 61.30 47.64IBNR/ Total Reserves 80.42 51.62 59.28 52.16 48.49 Liabilities / Capital & Surplus (%) 332.35 284.76 178.12 139.37 141.01Reserves/ Equity 176.10 153.82 97.68 88.45 95.58 Total Reins Recov Excl US Aff / C&S (%) -1.81 -1.21 0.00 0.00 0.00

1 - Operating Leverage = Net Premiums Written / Policyholder Surplus 2 - Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)

0.1

232.1

355.9389.8

360.1

0

100,000

200,000

300,000

400,000

500,000

600,000

2008Y 2009Y 2010Y 2011Y 2012Y

Capital ($000) & Capital Ratios (%)ACL Risk Based Capital RBC - Total Adjusted Capital

Capital and Surplus Co. Action Level RBC (TAC/(ACL RBC*2))

90.6

83.5

100.0 100.0 100.0

0500

1,0001,5002,0002,5003,0003,5004,0004,500

2008Y 2009Y 2010Y 2011Y 2012Y

Premiums ($000) Net Premiums Written Gross Premiums Written Retention Ratio (NPW/GPW)

1 Operating Leverage = Net Premiums Written / Policyholder Surplus 2 Reserve coverage = (Cash & Invested Assets + Re Recoverable) / (Loss & LAE Reserves + Unearned Premiums)3 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 4 - Reinsurance Relation : As Cedent and As Reinsurer would work only for Single and Group Companies.

when an inter-company pooling arrangement exists.

Sigma RRG Inc. (Washington, DC)BALANCE SHEET ($000) 2008Y 2009Y 2010Y 2011Y 2012Y INCOME STATEMENT ($000) 2008Y 2009Y 2010Y 2011Y 2012Y

Assets RevenueBonds 0 0 555 283 133 Personal P&C Direct Premiums 0 0 0 0 0Preferred Stocks 0 0 0 0 0 Commercial P&C Direct Premiums 3,878 2,120 2,849 2,351 2,344Common Stocks 0 0 0 514 751 Accident & Health Direct Premiums 0 0 0 0 0

First Lien Real Estate Loans 0 0 0 0 0 Direct Premiums Written 3,878 2,120 2,849 2,351 2,344Real Estate Loans Less First Liens 0 0 0 0 0

Total Mortgage Loans 0 0 0 0 0 Net Reinsurance Premiums5 -363 -350 0 0 0Occupied Properties 0 0 0 0 0 Net Premiums Written 3,515 1,770 2,849 2,351 2,344Income Generating Properties 0 0 0 0 0 Change in U/E Premiums Reserve 937 689 752 -187 -4Properties for Sale 0 0 0 0 0 Net Premiums Earned 2,578 1,081 2,097 2,538 2,349

Total Real Estate 0 0 0 0 0 Net Adm Cash,Cash Equi, Short-Term Inv 3,906 4,671 6,499 7,638 9,530 Underwriting Deductions ($000)Other Investments 0 0 0 0 0 Net Losses Paid - Personal 0 0 0 0 0Subtotals, Cash & Invested Assets 3,906 4,671 7,054 8,436 10,414 Net Losses Paid - Commercial 0 0 215 343 50Premiums & Considerations Due 1,276 1,955 2,369 2,192 2,345 Net Losses Paid - A&H 0 0 0 0 0Reinsurance Recoverable 0 0 0 0 0 Net Losses Paid 0 0 215 343 50All Other Admitted Assets 539 678 402 364 403 Net LAE Paid 0 123 306 279 176Separate Account Assets 0 0 0 0 0 Change in Loss Reserves - Personal 0 0 0 0 0Total Net Admitted Assets 5,721 7,304 9,824 10,992 13,162 Change in Loss Reserves - Commercial 2,330 -778 698 611 820

Change in Loss Reserves - A&H 0 0 0 0 0Liabilities Change in LAE Reserves 0 1,368 -168 1 338

Unpaid Losses 2,330 1,552 2,250 2,861 3,681 Net Change in Loss and LAE Reserves 2,330 590 530 611 1,158Unpaid Loss Adj Expenses 0 1,368 1,200 1,201 1,538 Losses and LAE Incurred 2,330 713 1,051 1,234 1,384

Loss & Loss Adj Exp Reserves 2,330 2,920 3,450 4,062 5,220 Other Underwriting Expense Incurred 230 254 272 279 255Unearned Premiums 1,276 1,953 2,379 2,192 2,188 Other Underwriting Deductions 0 0 0 0 0Total Reinsurance Liabilities 363 350 0 0 0 Net Income Protected Cells 0 0 0 0 0Commissions, Other Exp & Taxes 166 129 135 137 118 Net Underwriting Gain (Loss) 18 114 774 1,025 709Payable to Parent, Subs & Affiliates 94 0 0 0 0 Policyholder Dividends (PHD) 0 0 0 0 0Other Liabilities 169 53 327 9 175 Total underwriting deductions 2,561 967 1,323 1,513 1,639

Total Liabilities 4,398 5,406 6,292 6,400 7,701

Income ($000)Total Capital and Surplus Net Investment Income 2 16 47 -9 87

Common Capital Stock 0 1,800 2,903 3,308 3,645 Net Realized Capital Gains (Losses) 0 0 -19 -4 5Preferred Capital Stock 0 0 0 0 0 Finance Service Charges 0 0 0 0 0Surplus Notes 0 0 0 0 0 All Other Income 0 0 0 0 0Unassigned Surplus 23 98 630 1,285 1,816 Income after cap gains (loss) before tax 20 129 802 1,012 801Other Including Gross Contributed 1,300 0 0 0 0 Federal Income Tax -4 54 270 357 270

Capital & Surplus 1,323 1,898 3,532 4,592 5,461 Net Income 23 75 531 655 531

Total Liabilities and C&S 5,721 7,304 9,824 10,992 13,162 Pre-tax Operating Income 20 129 821 1,016 796

Memo: Total Revenue 2,580 1,096 2,125 2,525 2,440Memo: Affiliated Investments ($000) Memo: Paid Expenses 230 380 581 565 579

Bonds 0 0 0 0 0

Preferred Stocks 0 0 0 0 0 BOND QUALITY ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

Common Stocks 0 0 0 0 0 Investment GradeMortgage Loans 0 0 0 0 0 Class 1 0 0 555 283 133Cash & Short Term Investments 0 0 0 0 0 Class 2 0 0 0 0 0All Other Investments 0 0 0 0 0 Non - Investment Grade

Total Affiliated Investments 0 0 0 0 0 Class 3 0 0 0 0 0Class 4 0 0 0 0 0

INVESTMENT ANALYSIS ($000) 2008Y 2009Y 2010Y 2011Y 2012Y Class 5 0 0 0 0 0

Net Investment Income 2 16 47 -9 87 Class 6 0 0 0 0 0R li d C it l G i 0 0 19 4 5Realized Capital Gains 0 0 -19 -4 5Unrealized Capital Gains 0 0 0 0 0Total Cash & Investments 3,906 4,671 7,054 8,436 10,414Affiliated Cash & Investments 0 0 0 0 0Total Bonds (incl Short-Term) 0 0 555 283 133Total Preferred Stock (incl Nonadmitted) 0 0 0 0 0Total Common Stock (incl Nonadmitted) 0 0 0 514 751Total Mortgage Loans (incl Nonadmitted) 0 0 0 0 0Total Real Estate (incl Nonadmitted) 0 0 0 0 0

Privately Placed Bonds/Total Bonds (%) NA NA 0.00 0.00 0.00Privately Placed Bonds / C&S (%) 0.00 0.00 0.00 0.00 0.00Bonds Rated 3-6 / Total Bonds (%) NA NA 0.00 0.00 0.00Mortgages in Foreclosure / Total (%) NA NA NA NA NAMortgages in Foreclosure / C&S (%) 0.00 0.00 0.00 0.00 0.00Mortgages in Good Standing / Total (%) NA NA NA NA NAReal Estate Occupied / Total (%) NA NA NA NA NA

Top 5 States by DPW - 2012Y Top Lines of Business by DPW - 2012Y SECURITIES ($000) - Annual Only62008Y 2009Y 2010Y 2011Y 2012Y

CMBS ExposureTotal: LT Bond, Com MBS 0 0 0 0 0

RMBS ExposureTotal: LT Bond, Res MBS 0 0 0 0 0

Municipal SecuritiesIssued States & Territories ($000) 0 0 0 0 0Issued Political Subdivisions ($000) 0 0 0 0 0Issued State Rev Obligations ($000) 0 0 0 0 0Issued Industrial Development ($000) 0 0 0 0 0

LT BONDS & STOCKS SUMMARY ($000) Carr Value Fair Value Actual Cost Par Value Total

LT Bond 133 133 126 125 517Common Stock 751 751 708 -- 2,209Preferred Stock 0 0 0 -- 0Total 884 884 833 125 --

ASSET QUALITY (%) 2008Y 2009Y 2010Y 2011Y 2012Y

Bond Avg Asset Quality (1-6) (Actual) NA NA 1.00 1.00 1.00Bonds Rated 3-6 / C&S 0.00 0.00 0.00 0.00 0.00Class 5 and 6 Bonds / C&S 0.00 0.00 0.00 0.00 0.00Bonds/Invested Assets 0.00 0.00 7.87 3.35 1.28Common Stocks / C&S 0.00 0.00 0.00 11.20 13.75Unaff common stock/Invested Assets 0.00 0.00 0.00 6.10 7.21

Rank and States DPW ($000) Rank and LOBs DPW ($000) Preferred Stocks / C&S 0.00 0.00 0.00 0.00 0.001. Pennsylvania 2,344 1. Oth, Prod Liab Cmbnd 2,344 Cash/Invested Assets 100.00 100.00 92.13 90.55 91.512. Alaska 0 2. Total Cmbnd A&H 0 Mortgage & Real Estate / C&S 0.00 0.00 0.00 0.00 0.003. Alabama 0 3. Aircraft 0 Mortgages in Foreclosure/Mortgages NA NA NA NA NA4. Arkansas 0 4. Comm'l Auto St 0 Mortgages Loans/Invested Assets 0.00 0.00 0.00 0.00 0.005. Arizona 0 5. Comm'l Multi Prl 0 Real Estate/Invested Assets 0.00 0.00 0.00 0.00 0.00

All Other 0 All Other 0 Other Investments/Invested Assets 0.00 0.00 0.00 0.00 0.00Premiums & Cons due/Total Assets 22.30 26.76 24.11 19.94 17.82

MARKET POSITION ANALYSIS (%) 2008Y 2009Y 2010Y 2011Y 2012Y Reinsurance recoverable/Total Assets 0.00 0.00 0.00 0.00 0.00

Market Share Ratio 0.00 0.00 0.00 0.00 0.00 Rec from parent,sub or aff./Total Assets 0.00 0.00 0.00 0.00 0.00DPW 5 Yr CAGR NA NA NA NA NA All other admitted assets/Total Assets 9.43 9.28 4.09 3.31 3.06National DPW ($000) 3,878 2,120 2,849 2,351 2,344 Invested Assets/Total Assets 68.27 63.95 71.80 76.74 79.12Adjusted Loss Ratio 89.56 -53.94 44.79 37.58 37.05 Investment Income/Total Assets 0.04 0.22 0.48 -0.08 0.66

5 - Calculation for Gross Premiums or Reinsurance Assumed can be overstated in SNL Groups especially 6 - The Securities and Bond section are held at carrying valueh i t li t i t

Investment Portfolio (%) - 2012

Bonds - 1.3% Preferred Stocks - 0.0%

Common Stocks - 7.2% Mortgage Loans - 0.0%

Other Invstmts - 91.5% 0.00 0.20 0.40 0.60 0.80 1.00

2008Y2009Y

2010Y

2011Y

2012Y

Bond Rated 3-6/Total Bond (%)

Pennsylvania - 100.0% Alaska - 0.0%

Alabama - 0.0% Arkansas - 0.0%

Arizona - 0.0% All other - 0.0%

Oth, Prod Liab Cmbnd - 100.0%

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%

when an inter-company pooling arrangement exists.

®

®

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.

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.

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.

Financial stability is independent of size.

Solutions as Unique as Your OrganizationDemotech 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.

Contact Douglas Powell at dpowell@demotech.com to discuss any needs or problems your organization is experiencing.

First to issue Financial Stability Ratings® (FSRs) for health maintenance organizations (HMOs).First to issue FSRs for public entity liability self-insured pools through the development of our Management Audit Process.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.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.First to issue FSRs for Title underwriters.First to have Property and Casualty insurance company rating process formally reviewed and accepted by HUD.Fannie Mae issued Title underwriting guidelines, naming Demotech as an approved Title underwriter rating service.First to promulgate Commercial Real Estate Recommendations (CRERs) to provide additional financial due diligence of Title underwriters involved in larger real estate transactions.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.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.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.Introduced Insurance Agents’ Errors and Omissions Insolvency Gap Legal Defense Coverage.Expanded the Insolvency Gap Coverage to include indemnity as well as legal defense.Participated in a comprehensive examination of insurer financial strength authored by Florida State University and The University of North Texas.

Demotech, Inc. Corporate Milestones1986

1987

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2010

®

Demotech, Inc.2715 Tuller Parkway

Dublin, OH 43017-2310www.demotech.com