COMBINED ANNUAL STATEMENT For the Year Ended December 31, 2004 of the Condition and Affairs of the. Infinity Property & Casualty Insurance Group

Transcription

1 COMBINED PROPERTY AND CASUALTY COMPANIES ASSOCIATION EDITION * * COMBINED ANNUAL STATEMENT For the Year Ended December 31, 2004 of the Condition and Affairs of the and its affiliated property and casualty insurers NAMES OF COMPANIES INCLUDED IN THIS STATEMENT American Deposit Insurance Company OK American Premier Insurance Company IN Atlanta Casualty Company OH Atlanta Reserve Insurance Company OH Atlanta Specialty Insurance Company OH Coventry Insurance Company OH Great Texas County Mutual Insurance Company TX Infinity Insurance Company IN Infinity National Insurance Company IN Infinity Select Insurance Company IN Leader Insurance Company OH Leader Preferred Insurance Company OH Leader Specialty Insurance Company IN Regal Insurance Company IN TICO Insurance Company OH Windsor Insurance Company IN This annual statement contains combined data for the property and casualty insurance companies listed above, compiled in accordance with the NAIC instructions for the completion of annual statements. NAIC Group Code NAIC Combined Company Code Mail Address Post Office Box Birmingham AL (Street and Number) (City or Town, State and Zip Code) Statutory Statement Contact Vicki Windham Daniell (Name) (Area Code) (Telephone Number)

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3 ASSETS Current Year Prior Year Net Admitted Nonadmitted Assets Net Assets Assets (Cols. 1 2) Admitted Assets 1. Bonds (Schedule D) ,214,824, ,214,824, ,167,051, Stocks (Schedule D): 2.1 Preferred stocks ,845, ,845, ,346, Common stocks ,230, ,230, ,336, Mortgage loans on real estate (Schedule B): 3.1 First liens Other than first liens Real estate (Schedule A): 4.1 Properties occupied by the company (less $...0 encumbrances) Properties held for the production of income (less $...0 encumbrances) Properties held for sale (less $...0 encumbrances) ,372, Cash ($...(9,211,128), Sch. E Part 1), cash equivalents ($...0, Sch. E Part 2) and short term investments ($...56,625,292, Sch. DA) ,414, ,414, ,644, Contract loans (including $...0 premium notes) Other invested assets (Schedule BA) Receivable for securities , , , Aggregate write ins for invested assets Subtotals, cash and invested assets (Lines 1 to 9) ,289,484, ,289,484, ,264,864, Investment income due and accrued ,363, , ,208, ,515, Premiums and considerations: 12.1 Uncollected premiums and agents' balances in course of collection ,863, ,932, ,931, ,016, Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $...0 earned but unbilled premiums) ,951, ,951, ,699, Accrued retrospective premiums Reinsurance: 13.1 Amounts recoverable from reinsurers ,453, ,453, ,973, Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon Net deferred tax asset ,110, ,338, ,772, ,205, Guaranty funds receivable or on deposit Electronic data processing equipment and software , , , , Furniture and equipment, including health care delivery assets ($...0) ,217, ,217, Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates ,314, ,314, ,347, Health care ($...0) and other amounts receivable Other assets nonadmitted , , Aggregate write ins for other than invested assets ,815, ,496, ,319, , Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 10 to 23) ,651,136, ,384, ,622,751, ,593,448, From Separate Accounts, Segregated Accounts and Protected Cell Accounts TOTALS (Lines 24 and 25) ,651,136, ,384, ,622,751, ,593,448,951 DETAILS OF WRITE INS Summary of remaining write ins for Line 9 from overflow page Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above) Accounts receivable and other assets ,776, ,457, ,319, , Excess cost over market of consolidated subsidiaries , Special deposits , , Summary of remaining write ins for Line 23 from overflow page Totals (Lines 2301 thru 2303 plus 2398) (Line 23 above) ,815, ,496, ,319, ,730 2

4 LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current Year Prior Year 1. Losses (Part 2A, Line 34, Column 8) ,515, ,228, Reinsurance payable on paid loss and loss adjustment expenses (Schedule F, Part 1, Column 6) ,505, ,958, Loss adjustment expenses (Part 2A, Line 34, Column 9) ,184, ,150, Commissions payable, contingent commissions and other similar charges ,257, ,915, Other expenses (excluding taxes, licenses and fees) , ,383, Taxes, licenses and fees (excluding federal and foreign income taxes) ,018, ,638, Current federal and foreign income taxes (including $...0 on realized capital gains (losses)) ,085, ,345, Net deferred tax liability Borrowed money $...0 and interest thereon $ Unearned premiums (Part 1A, Line 37, Column 5) (after deducting unearned premiums for ceded reinsurance of $...12,857,516 and including warranty reserves of $...0) ,059, ,851, Advance premiums Dividends declared and unpaid: 11.1 Stockholders Policyholders Ceded reinsurance premiums payable (net of ceding commissions) ,447, ,431, Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 19) ,758, Amounts withheld or retained by company for account of others , , Remittances and items not allocated , , Provision for reinsurance (Schedule F, Part 7) ,260, , Net adjustments in assets and liabilities due to foreign exchange rates Drafts outstanding ,511, ,634, Payable to parent, subsidiaries and affiliates ,946, ,628, Payable for securities Liability for amounts held under uninsured accident and health plans Capital notes $...0 and interest thereon $ Aggregate write ins for liabilities ,365, ,206, Total liabilities excluding protected cell liabilities (Lines 1 through 23) ,115,572, ,145,766, Protected cell liabilities Total liabilities (Lines 24 and 25) ,115,572, ,145,766, Aggregate write ins for special surplus funds Common capital stock ,000, ,500, Preferred capital stock Aggregate write ins for other than special surplus funds Surplus notes Gross paid in and contributed surplus ,310, ,279, Unassigned funds (surplus) ,868, ,902, Less treasury stock, at cost: shares common (value included in Line 28 $...0) shares preferred (value included in Line 29 $...0) Surplus as regards policyholders (Lines 27 to 33, less 34) (Page 4, Line 38) ,179, ,682, TOTALS (Page 2, Line 26, Col. 3) ,622,751, ,593,448,951 DETAILS OF WRITE INS Accounts payable and other liabilities ,365, ,154, North Carolina 2002 private passenger auto escrow , Summary of remaining write ins for Line 23 from overflow page Totals (Lines 2301 thru 2303 plus 2398) (Line 23 above) ,365, ,206, Summary of remaining write ins for Line 27 from overflow page Totals (Lines 2701 thru 2703 plus 2798) (Line 27 above) Summary of remaining write ins for Line 30 from overflow page Totals (Lines 3001 thru 3003 plus 3098) (Line 30 above)

5 UNDERWRITING AND INVESTMENT EXHIBIT 1 2 STATEMENT OF INCOME Current Year Prior Year UNDERWRITING INCOME 1. Premiums earned (Part 1, Line 34, Column 4) ,323, ,713,584 DEDUCTIONS 2. Losses incurred (Part 2, Line 34, Column 7) ,644, ,256, Loss expenses incurred (Part 3, Line 25, Column 1) ,501, ,487, Other underwriting expenses incurred (Part 3, Line 25, Column 2) ,051, ,509, Aggregate write ins for underwriting deductions , Total underwriting deductions (Lines 2 through 5) ,196, ,274, Net income of protected cells Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7) ,126, ,439,207 INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line 17) ,408, ,045, Net realized capital gains (losses) (Exhibit of Capital Gains (Losses)) ,643,562...(54,655,579) 11. Net investment gain (loss) (Lines ) ,051, ,389,512 OTHER INCOME 12. Net gain (loss) from agents' or premium balances charged off (amount recovered $...648,123 amount charged off $...11,772,770)......(11,124,647)...(11,930,062) 13. Finance and service charges not included in premiums ,833, ,205, Aggregate write ins for miscellaneous income......(8,004,098)...(3,171,304) 15. Total other income (Lines 12 through 14)......(16,295,038)...(11,896,215) 16. Net income before dividends to policyholders and before federal and foreign income taxes (Lines ) ,883, ,932, Dividends to policyholders Net income, after dividends to policyholders but before federal and foreign income taxes (Line 16 minus Line 17) ,883, ,932, Federal and foreign income taxes incurred ,511, ,148, Net income (Line 18 minus Line 19) (to Line 22) ,372,208...(24,216,070) CAPITAL AND SURPLUS ACCOUNT 21. Surplus as regards policyholders, December 31 prior year (Page 4, Line 38, Column 2) ,682, ,066,643 GAINS AND (LOSSES) IN SURPLUS 22. Net income (from Line 20) ,372,208...(24,216,070) 23. Change in net unrealized capital gains or (losses) ,067, ,989, Change in net unrealized foreign exchange capital gain (loss) (2,140,264) 25. Change in net deferred income tax......(1,340,420)...(2,630,750) 26. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 26 Column 3) ,162, ,056, Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1)......(440,429)...(343,600) 28. Change in surplus notes (600,000) 29. Surplus (contributed to) withdrawn from protected cells Cumulative effect of changes in accounting principles Capital changes: 31.1 Paid in......(2,500,000)...(3,000,000) 31.2 Transferred from surplus (Stock Dividend) Transferred to surplus Surplus adjustments: 32.1 Paid in......(56,969,096)...106,500, Transferred to capital (Stock Dividend) Transferred from capital Net remittances from or (to) Home Office Dividends to stockholders......(28,500,000)...(39,000,000) 35. Change in treasury stock (Page 3, Lines 34.1 and 34.2, Column 2 minus Column 1) Aggregate write ins for gains and losses in surplus ,645, Change in surplus as regards policyholders for the year (Lines 22 through 36) ,497, ,615, Surplus as regards policyholders, December 31 current year (Line 21 plus Line 37) (Page 3, Line 35) ,179, ,682,106 DETAILS OF WRITE INS North Carolina 2002 private passenger auto escrow , Summary of remaining write ins for Line 5 from overflow page Totals (Lines 0501 thru 0503 plus 0598) (Line 5 above) , Miscellaneous income or (expense)......(8,004,098)...(3,171,304) Summary of remaining write ins for Line 14 from overflow page Totals (Lines 1401 thru 1403 plus 1498) (Line 14 above)......(8,004,098)...(3,171,304) Surplus reclass due to consolidation of Atlanta Casualty Companies into Infinity Insurance Company ,469, Sale of company previously combined......(2,823,681) Summary of remaining write ins for Line 36 from overflow page Totals (Lines 3601 thru 3603 plus 3698) (Line 36 above) ,645,

6 CASH FROM OPERATIONS CASH FLOW 1 2 Current Year Prior Year 1. Premiums collected net of reinsurance ,067, ,692, Net investment income ,010, ,893, Miscellaneous income......(16,295,038)...(11,896,215) 4. Total (Lines 1 through 3) ,782, ,689, Benefit and loss related payments ,286, ,932, Net transfers to Separate, Segregated Accounts and Protected Cell Accounts Commissions, expenses paid and aggregate write ins for deductions ,646, ,770, Dividends paid to policyholders Federal and foreign income taxes paid (recovered) $...289,688 net of tax on capital gains (losses) ,393, ,689, Total (Lines 5 through 9) ,326, ,392, Net cash from operations (Line 4 minus Line 10) ,456, ,296,813 CASH FROM INVESTMENTS 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds ,351, ,790, Stocks ,818, ,387, Mortgage loans Real estate ,500, Other invested assets Net gains or (losses) on cash, cash equivalents and short term investments Miscellaneous proceeds , , Total investment proceeds (Lines 12.1 to 12.7) ,725, ,183, Cost of investments acquired (long term only): 13.1 Bonds ,150, ,900, Stocks ,188, ,088, Mortgage loans Real estate Other invested assets , Miscellaneous applications , , Total investments acquired (Lines 13.1 to 13.6) ,509, ,661, Net increase (decrease) in policy loans and premium notes Net cash from investments (Line 12.8 minus Lines 13.7 and 14)......(34,784,305)...(260,478,872) 16. Cash provided (applied): CASH FROM FINANCING AND MISCELLANEOUS SOURCES 16.1 Surplus notes, capital notes Capital and paid in surplus, less treasury stock......(59,469,096)...110,000, Borrowed funds received Net deposits on deposit type contracts and other insurance liabilities Dividends to stockholders ,500, ,000, Other cash provided (applied) ,066,462...(56,304,454) 17. Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)......(52,902,634)...14,695,546 RECONCILIATION OF CASH AND SHORT TERM INVESTMENTS 18. Net change in cash and short term investments (Line 11 plus Line 15 plus Line 17)......(18,230,531)...(9,486,513) 19. Cash and short term investments: 19.1 Beginning of year ,644, ,131, End of period (Line 18 plus Line 19.1) ,414, ,644,695 Note: Supplemental disclosures of cash flow information for non cash transactions:

7 UNDERWRITING AND INVESTMENT EXHIBIT PART 1 PREMIUMS EARNED Unearned Premiums Unearned Premiums Net December 31 December 31 Premiums Premiums Prior Year Current Year Earned Written per per Col. 3 Last per Col. 5 During Year Line of Business Column 6, Part 1B Year's Part 1 Part 1A (Cols ) 1. Fire , , , , Allied lines , , , , Farmowners multiple peril Homeowners multiple peril , ,202, , ,635, Commercial multiple peril Mortgage guaranty Ocean marine Inland marine , , , , Financial guaranty Medical malpractice occurrence Medical malpractice claims made Earthquake , , , , Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation Other liability occurrence , , , , Other liability claims made Products liability occurrence Products liability claims made , 19.2 Private passenger auto liability ,905, ,849, ,931, ,824, , 19.4 Commercial auto liability ,431, ,567, ,450, ,548, Auto physical damage ,318, ,070, ,708, ,680, Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Reinsurance nonproportional assumed property Reinsurance nonproportional assumed liability Reinsurance nonproportional assumed financial lines Aggregate write ins for other lines of business TOTALS ,531, ,851, ,059, ,323,634 DETAILS OF WRITE INS Summary of remaining write ins for Line 33 from overflow page Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above)

8 UNDERWRITING AND INVESTMENT EXHIBIT PART 1A RECAPITULATION OF ALL PREMIUMS (a) Gross premiums (less reinsurance) and unearned premiums on all unexpired risks and reserve for return premiums under rate credit or retrospective rating plans based upon experience, viz: Amount Unearned Amount Unearned Reserve for (Running One Year (Running more than Rate Credits Total Reserve or Less from Date One Year from and Retrospective for Unearned of Policy) Date of Policy) Earned But Adjustments Based Premiums Line of Business (b) (b) Unbilled Premium on Experience Cols Fire , , Allied lines , , Farmowners multiple peril Homeowners multiple peril , , Commercial multiple peril Mortgage guaranty Ocean marine Inland marine , , Financial guaranty Medical malpractice occurrence Medical malpractice claims made Earthquake , , Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation Other liability occurrence , , Other liability claims made Products liability occurrence Products liability claims made , 19.2 Private passenger auto liability ,931, ,931, , 19.4 Commercial auto liability ,450, ,450, Auto physical damage ,708, ,708, Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Reinsurance nonproportional assumed property Reinsurance nonproportional assumed liability Reinsurance nonproportional assumed financial lines Aggregate write ins for other lines of business TOTALS ,059, ,059, Accrued retrospective premiums based on experience Earned but unbilled premiums Balance (sum of Lines 34 through 36) ,059,363 DETAILS OF WRITE INS Summary of remaining write ins for Line 33 from overflow page Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above) (a) By gross premiums is meant the aggregate of all the premiums written in the policies or renewals in force. Are they so returned in this statement? Yes [ X ] No [ ]. (b) State here basis of computation used in each case: Pro rata 7

9 UNDERWRITING AND INVESTMENT EXHIBIT PART 1B PREMIUMS WRITTEN Gross Premiums (Less Return Premiums), Including Policy and Membership Fees Written and Renewed During Year 1 Reinsurance Assumed Reinsurance Ceded Net Premiums Direct Written Business (Cols Line of Business (a) From Affiliates From Non Affiliates To Affiliates To Non Affiliates 4 5) 1. Fire , , Allied lines , , Farmowners multiple peril Homeowners multiple peril , , Commercial multiple peril Mortgage guaranty Ocean marine Inland marine , , Financial guaranty Medical malpractice occurrence Medical malpractice claims made Earthquake , , Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation Other liability occurrence , , , , Other liability claims made Products liability occurrence Products liability claims made , 19.2 Private passenger auto liability ,366, ,913, ,374, ,905, , 19.4 Commercial auto liability ,810, (66) ,379, ,431, Auto physical damage ,297, ,956, ,935, ,318, Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Reinsurance nonproportional assumed property......xxx Reinsurance nonproportional assumed liability......xxx Reinsurance nonproportional assumed financial lines......xxx Aggregate write ins for other lines of business , , TOTALS ,011, ,745, ,225, ,531,632 DETAILS OF WRITE INS Collateral protection , , Summary of remaining write ins for Line 33 from overflow page Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above) , , (a) Does the company's direct premiums written include premiums recorded on an installment basis? Yes [ ] No [ X ] If yes: 1. The amount of such installment premiums $ Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $

10 9 Combined Statement for the year 2004 of the UNDERWRITING AND INVESTMENT EXHIBIT PART 2 LOSSES PAID AND INCURRED Losses Paid Less Salvage Percentage of Net Losses Losses Losses Incurred Unpaid Net Losses Incurred (Col. 7, Part 2) Direct Reinsurance Reinsurance Net Payments Current Year Unpaid Current Year to Premiums Earned Line of Business Business Assumed Recovered (Cols ) (Part 2A, Col. 8) Prior Year (Cols ) (Col. 4, Part 1) 1. Fire , , , , , Allied lines , , , , , Farmowners multiple peril Homeowners multiple peril ,277, ,277, ,819, ,423, , Commercial multiple peril Mortgage guaranty Ocean marine Inland marine , , ,113, ,079, , Financial guaranty Medical malpractice occurrence Medical malpractice claims made Earthquake , , , ,807...(25,969)...(133.7) 13. Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation , , Other liability occurrence , , , , ,682, ,202, , Other liability claims made Products liability occurrence Products liability claims made , 19.2 Private passenger auto liability ,207, ,896,279...(20,560,196)...347,663, ,765, ,480, ,948, , 19.4 Commercial auto liability ,087,045...(16,735,090)...(16,987,362)...16,339, ,512, ,196, ,654, Auto physical damage ,754, ,129, ,867, ,016, ,261, ,515, ,762, Aircraft (all perils) (7,432,480)...(7,432,480) Fidelity Surety Burglary and theft Boiler and machinery Credit International Reinsurance nonproportional assumed property......xxx Reinsurance nonproportional assumed liability......xxx Reinsurance nonproportional assumed financial lines......xxx Aggregate write ins for other lines of business , , , , , , TOTALS ,314, ,195,973...(4,846,943)...490,357, ,515, ,228, ,644, DETAILS OF WRITE INS Collateral protection , , , , , , Summary of remaining write ins for Line 33 from overflow page xxx Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above) , , , , , ,

11 10 Combined Statement for the year 2004 of the UNDERWRITING AND INVESTMENT EXHIBIT PART 2A UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported Deduct Reinsurance Net Losses Excluding Recoverable from Incurred but Net Losses Unpaid Loss Authorized and not Reported Reinsurance Reinsurance Unpaid Adjustment Line of Business Direct Reinsurance Assumed Unauthorized Companies (Cols ) Direct Assumed Ceded (Cols ) Expenses 1. Fire , , , ,901...(23,724) 2. Allied lines , , , Farmowners multiple peril Homeowners multiple peril ,137, ,137, , ,819, , Commercial multiple peril Mortgage guaranty Ocean marine Inland marine , , ,104, ,113, , Financial guaranty Medical malpractice occurrence Medical malpractice claims made Earthquake , , , Group accident and health (a) Credit accident and health (group and individual) Other accident and health (a) Workers' compensation ,319, ,319, , , Other liability occurrence , , ,977, ,682, , Other liability claims made Products liability occurrence Products liability claims made , 19.2 Private passenger auto liability ,544, ,872, ,615, ,801, ,444, ,099, ,580, ,765, ,335, , 19.4 Commercial auto liability ,031, , , ,155, ,687, ,331, ,512, ,554, Auto physical damage ,206, , , ,699, ,749, ,679, , ,261, ,374, Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Reinsurance nonproportional assumed property......xxx xxx Reinsurance nonproportional assumed liability......xxx xxx Reinsurance nonproportional assumed financial lines......xxx xxx Aggregate write ins for other lines of business , , TOTALS ,101, ,649, ,237, ,513, ,087, ,898, ,983, ,515, ,184,456 DETAILS OF WRITE INS Collateral protection , , Summary of remaining write ins for Line 33 from overflow page Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above) , , (a) Including $...0 for present value of life indemnity claims.

12 1. Claim adjustment services: UNDERWRITING AND INVESTMENT EXHIBIT PART 3 EXPENSES Other Loss Adjustment Underwriting Investment Expenses Expenses Expenses Total 1.1 Direct ,295, ,295, Reinsurance assumed ,581, ,581, Reinsurance ceded ,222, ,222, Net claim adjustment services ( ) ,654, ,654, Commission and brokerage: 2.1 Direct excluding contingent ,663, ,663, Reinsurance assumed excluding contingent ,323, ,323, Reinsurance ceded excluding contingent ,935, ,935, Contingent direct , , Contingent reinsurance assumed (156,322) (156,322) 2.6 Contingent reinsurance ceded Policy and membership fees Net commission and brokerage ( ) ,450, ,450, Allowances to managers and agents , , , Advertising , ,292, ,355, Boards, bureaus and associations , ,784, ,140, Surveys and underwriting reports ,268, ,648, ,917, Audit of assureds' records Salary and related items: 8.1 Salaries ,462, ,267, ,730, Payroll taxes ,457, ,420, ,878, Employee relations and welfare ,670, ,827, ,497, Insurance , , , Directors' fees Travel and travel items ,872, ,419, ,291, Rent and rent items ,431, ,210, ,642, Equipment ,195, ,311, ,506, Cost or depreciation of EDP equipment and software ,310, ,019, ,330, Printing and stationery , ,930, ,637, Postage, telephone and telegraph, exchange and express ,245, ,199, ,445, Legal and auditing , ,709, ,188, Totals (Lines 3 to 18) ,869, ,564, ,434, Taxes, licenses and fees: 20.1 State and local insurance taxes deducting guaranty association credits of $...65, ,031, ,031, Insurance department licenses and fees , ,062, ,528, Gross guaranty association assessments , , All other (excluding federal and foreign income and real estate) , ,050, ,177, Total taxes, licenses and fees ( ) , ,010, ,603, Real estate expenses Real estate taxes Reimbursements by uninsured accident and health plans Aggregate write ins for miscellaneous expenses ,383,884...(33,974,073)...2,377,458...(24,212,731) 25. Total expenses incurred ,501, ,051, ,377,458 (a)...369,930, Less unpaid expenses current year ,184, ,275, , ,057, Add unpaid expenses prior year ,150, ,403, , ,087, Amounts receivable relating to uninsured accident and health plans, prior year Amounts receivable relating to uninsured accident and health plans, current year TOTAL EXPENSES PAID (Lines ) ,467, ,178, ,314, ,960,725 DETAILS OF WRITE INS Other expenses ,383,884...(33,974,073) (26,590,189) Investment expenses ,377, ,377, Summary of remaining write ins for Line 24 from overflow page Totals (Lines 2401 thru 2403 plus 2498) (Line 24 above) ,383,884...(33,974,073)...2,377,458...(24,212,731) (a) Includes management fees of $...192,286,818 to affiliates and $...0 to non affiliates. 11

13 EXHIBIT OF NET INVESTMENT INCOME 1 2 Collected Earned During Year During Year 1. U.S. government bonds... (a)...4,209, ,203, Bonds exempt from U.S. tax... (a)...5,942, ,061, Other bonds (unaffiliated)... (a)...54,523, ,427, Bonds of affiliates... (a) Preferred stocks (unaffiliated)... (b)...1,336, ,113, Preferred stocks of affiliates... (b) Common stocks (unaffiliated) , , Common stocks of affiliates Mortgage loans... (c) Real estate... (d) Contract loans Cash, cash equivalents and short term investments... (e)...864, , Derivative instruments... (f) Other invested assets Aggregate write ins for investment income , , Total gross investment income ,212, ,051, Investment expenses... (g)...2,377, Investment taxes, licenses and fees, excluding federal income taxes... (g) Interest expense... (h)...1,252, Depreciation on real estate and other invested assets... (i)...13, Aggregate write ins for deductions from investment income Total deductions (Lines 11 through 15) ,643, Net investment income (Line 10 minus Line 16) ,408,038 DETAILS OF WRITE INS Miscellaneous investment income , , Summary of remaining write ins for Line 9 from overflow page Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above) , , Summary of remaining write ins for Line 15 from overflow page Totals (Lines 1501 thru 1503 plus 1598) (Line 15 above) (a) Includes $...853,881 accrual of discount less $...7,888,061 amortization of premium and less $...3,063,156 paid for accrued interest on purchases. (b) Includes $...97,903 accrual of discount less $...31,572 amortization of premium and less $...0 paid for accrued dividends on purchases. (c) Includes $...0 accrual of discount less $...0 amortization of premium and less $...0 paid for accrued interest on purchases. (d) Includes $...0 for company's occupancy of its own buildings; and excludes $...0 interest on encumbrances. (e) Includes $...0 accrual of discount less $...0 amortization of premium and less $...0 paid for accrued interest on purchases. (f) Includes $...0 accrual of discount less $...0 amortization of premium. (g) Includes $...0 investment expenses and $...0 investment taxes, licenses and fees, excluding federal income taxes, attributable to Segregated and Separate Accounts. (h) Includes $...0 interest on surplus notes and $...0 interest on capital notes. (i) Includes $...13,574 depreciation on real estate and $...0 depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) Realized Gain (Loss) Other Increases on Sales Realized (Decreases) by or Maturity Adjustments Adjustment Total 1. U.S. government bonds......(72,186) (72,186) 1.1 Bonds exempt from U.S. tax , , Other bonds (unaffiliated) ,089,578...(758,212)...697, ,028, Bonds of affiliates Preferred stocks (unaffiliated) ,471,260...(348,000)...187, ,311, Preferred stocks of affiliates (12,780)...(12,780) 2.2 Common stocks (unaffiliated) ,534,916...(23,975)...1,129, ,640, Common stocks of affiliates ,280, ,280, Mortgage loans Real estate ,141, ,141, Contract loans Cash, cash equivalents and short term investments Derivative instruments Other invested assets Aggregate write ins for capital gains (losses) Total capital gains (losses) ,773,749...(1,130,187)...2,001, ,644,800 DETAILS OF WRITE INS Summary of remaining write ins for Line 9 from overflow page Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above)

14 SCHEDULE D SUMMARY BY COUNTRY Long Term Bonds and Stocks OWNED December 31 of Current Year Book/Adjusted Par Value Description Carrying Value Fair Value Actual Cost of Bonds BONDS 1. United States ,856, ,846, ,304, ,721,457 Governments 2. Canada (Including all obligations guaranteed 3. Other Countries by governments) 4. Totals ,856, ,846, ,304, ,721, United States ,378, ,412, ,144, ,805,000 States, Territories and Possessions 6. Canada (Direct and guaranteed) 7. Other Countries Totals ,378, ,412, ,144, ,805,000 Political Subdivisions of States, 9. United States ,952, ,625, ,604, ,830,000 Territories and Possessions 10. Canada (Direct and guaranteed) 11. Other Countries Totals ,952, ,625, ,604, ,830,000 Special Revenue and Special Assessment 13. United States ,782, ,058, ,565, ,184,228 Obligations and all Non guaranteed Obligations 14. Canada of Agencies and Authorities of Governments 15. Other Countries and their Political Subdivisions 16. Totals ,782, ,058, ,565, ,184, United States ,037, ,497, ,805, ,217,611 Public Utilities 18. Canada (unaffiliated) 19. Other Countries Totals ,037, ,497, ,805, ,217,611 Industrial and Miscellaneous and 21. United States ,271, ,713, ,422, ,766,043 Credit Tenant Loans 22. Canada ,362, ,833, ,819, ,088,000 (Unaffiliated) 23. Other Countries ,182, ,971, ,482, ,753, Totals ,816, ,518, ,723, ,607,043 Parent, Subsidiaries and Affiliates 25. Totals Total Bonds ,214,824, ,256,959, ,231,148, ,195,365,339 PREFERRED STOCKS 27. United States ,753, ,753, ,845,305 Public Utilities 28. Canada (Unaffiliated) 29. Other Countries Totals ,753, ,753, ,845, United States Banks, Trust and Insurance Companies 32. Canada (Unaffiliated) 33. Other Countries Totals United States ,092, ,161, ,384,300 Industrial and Miscellaneous 36. Canada (Unaffiliated) 37. Other Countries Totals ,092, ,161, ,384,300 Parent, Subsidiaries and Affiliates 39. Totals Total Preferred Stocks ,845, ,914, ,229,605 COMMON STOCKS 41. United States , , ,600 Public Utilities 42. Canada (Unaffiliated) 43. Other Countries Totals , , , United States ,895, ,895, ,924,060 Banks, Trust and Insurance Companies 46. Canada (Unaffiliated) 47. Other Countries Totals ,895, ,895, ,924, United States ,083, ,083, ,717,806 Industrial and Miscellaneous 50. Canada (Unaffiliated) 51. Other Countries Totals ,083, ,083, ,717,806 Parent, Subsidiaries and Affiliates 53. Totals Total Common Stocks ,230, ,230, ,791, Total Stocks ,076, ,145, ,021, Total Bonds and Stocks ,241,900, ,284,105, ,261,169,094 22

15 23 Combined Statement for the year 2004 of the SCHEDULE D PART 1A SECTION 1 Quality and Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Types of Issues and NAIC Designations Quality Rating per the 1 Year Over 1 Year Over 5 Years Over 10 Years Over 20 Total Column 6 as a Total from Column % from Col. 7 Total Total NAIC Designation or Less Through 5 Years Through 10 Years Through 20 Years Years Current Year % of Line Prior Year Prior Year Publicly Traded Privately Placed (a) 1. U.S. Governments, Schedules D & DA (Group 1) 1.1 Class ,732, ,183, ,413, ,365, ,893, ,588, ,935, ,588, Class Class Class Class Class Totals ,732, ,183, ,413, ,365, ,893, ,588, ,935, ,588, All Other Governments, Schedules D & DA (Group 2) 2.1 Class ,261, Class Class Class Class Class Totals ,261, States, Territories and Possessions, etc., Guaranteed, Schedules D & DA (Group 3) 3.1 Class ,304, ,074, ,378, ,100, ,378, Class ,125, Class Class Class Class Totals ,304, ,074, ,378, ,226, ,378, Political Subdivisions of States, Territories and Possessions, Guaranteed, Schedules D & DA (Group 4) 4.1 Class ,852, ,099, ,952, ,044, ,952, Class Class Class Class Class Totals ,852, ,099, ,952, ,044, ,952, Special Revenue & Special Assessment Obligations, etc., Non Guaranteed, Schedules D & DA (Group 5) 5.1 Class ,795, ,652, ,135, ,819, ,368, ,770, ,584, ,770, Class ,011, ,011, ,014, ,011, Class Class Class Class Totals ,795, ,663, ,135, ,819, ,368, ,782, ,598, ,782,

16 24 Combined Statement for the year 2004 of the SCHEDULE D PART 1A SECTION 1 (continued) Quality and Maturity Distribution of All Bonds Owned December 31, At Book/Adjusting Carrying Values By Major Types of Issues and NAIC Designations Quality Rating per the 1 Year Over 1 Year Over 5 Years Over 10 Years Over 20 Total Column 6 as a Total from Column % from Col. 7 Total Total NAIC Designation or Less Through 5 Years Through 10 Years Through 20 Years Years Current Year % of Line Prior Year Prior Year Publicly Traded Privately Placed (a) 6. Public Utilities (Unaffiliated), Schedules D & DA (Group 6) 6.1 Class , ,444, ,842, ,005, ,292, ,627, ,292, Class ,501, ,050, ,008, ,560, ,454, ,560, Class ,493, ,251, ,744, ,789, ,744, Class , ,440, ,440, ,840, ,440, Class , Class Totals ,500, ,987, ,102, ,005, ,440, ,037, ,182, ,037, Industrial & Miscellaneous (Unaffiliated), Schedules D & DA (Group 7) 7.1 Class ,085, ,912, ,235, ,092, ,475, ,800, ,650, ,800, Class ,543, ,801, ,454, ,059, ,868, ,727, ,171, ,727, Class ,695, ,599, ,379, ,610, ,840, ,126, ,556, ,126, Class ,316, ,816, ,914, ,047, ,490, ,047, Class ,297, , ,488, ,590, ,488, Class ,074, ,016, , ,519, ,016, ,519, Totals ,716, ,444, ,601, ,763, ,183, ,710, ,475, ,710, Credit Tenant Loans, Schedules D & DA (Group 8) 8.1 Class Class Class Class Class Class Totals Parent, Subsidiaries and Affiliates, Schedules D & DA (Group 9) 9.1 Class Class Class Class Class Class Totals