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1 XXXXX Company Name Here XXXXX BEST S RATING REPORT PHILADELPHIA INSURANCE COMPANIES One Bala Plaza, Suite 100, Bala Cynwyd, Pennsylvania, United States AMB #: NAIC #: N/A FEIN #: N/A Phone: Fax: Website: PHILADELPHIA INDEMNITY INSURANCE COMPANY One Bala Plaza, Suite 100, Bala Cynwyd, Pennsylvania, United States AMB #: NAIC #: FEIN#: Phone: Fax: Website: TOKIO MARINE SPECIALTY INSURANCE COMPANY Wilmington, Delaware, United States Exec. Office: One Bala Plaza, Suite 100, Bala Cynwyd, Pennsylvania, United States AMB #: NAIC #: FEIN#: Phone: Fax: Website: A++ A++ Financial Strength Rating A M BEST A++ Superior Page 1 of 39 Printed January 11, 2019

2 Philadelphia Insurance Companies Philadelphia Insurance Companies Report Release Date: Group Members Rating Effective Date: January 4, 2019 December 21, 2018 Disclosure Information: Refer to rating unit members for each company s Rating Disclosure Form Analytical Contacts A.M. Best Rating Services, Inc. Robert Raber Gregory T. Williams Associate Director Senior Director Robert.Raber@ambest.com Greg.Williams@ambest.com +1(908) Ext (908) Ext Associated Ultimate Parent: Tokio Marine Holdings, Inc. A.M. Best Rating Unit: Philadelphia Insurance Companies Best's Credit Ratings for Group Members: Rating Effective Date: December 21, 2018 Best's Financial Best's Issuer Strength Ratings Credit Ratings AMB# Company Rating Outlook Action Rating Outlook Action Philadelphia Insurance Cos Rating Unit Philadelphia Indemnity Ins Co A++ Stable Affirmed aa+ Stable Affirmed Tokio Marine Specialty Ins Co A++ Stable Affirmed aa+ Stable Affirmed Rating Rationale: Balance Sheet Strength: Strongest Strongest risk-adjusted capitalization level as measured by the Best's Capital Adequacy Ratio (BCAR) scores at the 99.6% level. Retention of earnings supports advancement in policyholders' surplus levels. Conservative reserve positions. Strong liquidity levels. Financial flexibility available from the insurance operations of Tokio Marine & Nichido Fire, if necessary. Operating Performance: Very Strong Consistently strong operating results across both underwriting and investment results contribute to annual retained earnings. Underwriting results benefit from advantages in loss and loss adjustment expense ratios backed by line of business expertise. Investment income provides considerable support on a dollar basis to operating performance. Page 2 of 39 Printed January 11, 2019

3 Philadelphia Insurance Companies Business Profile: Favorable Well-established market leader in its target niche specialty markets. Exceptionally well diversified by jurisdiction, product line, market segment, and distribution channel. Extensive use of industry-leading technology to support all facets of operations. Enterprise Risk Management: Very Strong Risk management capabilities are very strong for the risk profile of the group and are in excess of comparable organizations. The Philadelphia Insurance Companies' ERM is fully integrated within Tokio Marine's framework. Best practices are shared across insurance operating entities. Utilizes the Tokio Marine Standard Economic Capital Model to deliver analysis encompassing risks. Outlook The stable outlooks indicate that no positive or negative rating actions are expected to occur in the near term. Factors supporting the outlooks include risk-adjusted capital at the strongest levels, a history of consistently profitable underwriting and operating results that are favorable to the peer composite and stronger than industry-wide results, favorable reserve development, robust product and geographic diversification complemented by a wide range distribution network, and strong enterprise risk management capabilities. Rating Drivers Negative rating action could result if the group's underwriting and operating performance fall markedly short of A.M. Best's expectation, there is a decline in capitalization, or there is a significant change in the strategic importance of Philadelphia Companies to the Tokio Marine organization. Financial Data Notes: Time Period: Annual Status: A.M. Best Quality Cross Checked Data as of: 12/18/2018 Page 3 of 39 Printed January 11, 2019

4 Philadelphia Insurance Companies Key Financial Indicators: Key Financial Indicators (000) Premiums Written Direct 3,456,742 3,266,544 3,057,022 2,901,637 2,649,278 Net 3,183,982 3,024,033 2,838,088 2,687,648 2,475,231 Pre-tax Operating Income ($000) 472, , , , ,554 Net Income 383, , , , ,815 Total Admitted Assets 9,259,643 8,650,893 7,878,774 7,647,206 6,942,157 Policyholders' Surplus 2,506,912 2,469,098 2,245,293 2,511,312 2,314,009 Key Financial Indicators - A.M. Best Ratios (%) Profitability Combined Ratio Investment Yield Pre-Tax Return on Revenue Leverage Non-Affiliated Investment Leverage Net Premiums Written to Policyholders' Surplus Net Leverage Liquidity Overall Liquidity Operating Cash-Flow (*) Within several financial tables of this report, this company is compared against the Commercial Casualty Composite. (*) Data reflected within all tables of this report has been compiled through the A.M. Best Consolidation of statutory filings. Best's Capital Adequacy Ratio Summary - AMB Rating Unit (%) Confidence Level BCAR Score Source: Best's Capital Adequacy Ratio Model - P/C, US Credit Analysis: Balance Sheet Strength: Strongest Page 4 of 39 Printed January 11, 2019

5 Philadelphia Insurance Companies The group maintains strong risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). Growth in surplus has largely kept pace with the increase in premium and loss reserves in recent years, resulting in fairly consistent net underwriting leverage measures that approximate the composite. Annual generation of retained earnings has been the driver of the group's considerable surplus appreciation over the last decade. Recent growth in surplus has been constrained by shareholder dividends the last five years. Annual dividends over this period totaled $1.3 billion, including extraordinary dividends of $600 million in Both underwriting and investment activities have contributed materially to the group's organic earnings production. Capitalization: Solid current and overall liquidity has been maintained at levels that exceed the industry composite averages. The group's liquidity reflects increased premium collections and considerable operating cash flow generated annually. The membership of the group's two operating companies with the Federal Home Loan Bank of Pittsburgh (FHLB) provides an additional source of liquidity, if needed. The companies are able to utilize established borrowing capacity, based on their FHLB-eligible level of collateral. As of December 31, 2017, there were no borrowings outstanding with the FHLB. Implicit capital support is provided by reinsurance programs with affiliated entities within Tokio Marine Holdings, Inc., while explicit support is available if necessary. Capital Generation Analysis Pre-tax Operating Income ($000) 472, , , , ,554 Realized Capital Gains ($000) -5,968-1,074-33,053-2,721 1,806 Income Taxes ($000) 83, , , , ,545 Unrealized Capital Gains ($000) 3,758 25,134-6,206-17, Net Contributed Capital ($000) -279, , , , ,000 Other Changes ($000) -69,672 6,206 9,092 1,546 3,916 Change in Policyholders' Surplus 37, , , , ,009 ($000) Change in Policyholders' Surplus (%) Liquidity Analysis (%) Company Industry Composite Quick Liquidity Current Liquidity Overall Liquidity Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US Asset Liability Management Investments: Net investment income has grown annually over the past five years, as the group's growing invested asset base has been strongly influenced by the increases in written premium. Generation of substantial operating cash flow is directly tied to the increased investment income. The level of invested assets in a portfolio emphasizing tax-exempt state and municipal bonds has resulted in a pre-tax investment yield slightly below the composite average, though remarkably stable. The growth in invested assets has been consistent despite substantial levels of shareholder dividends paid annually to the parent organization. Page 5 of 39 Printed January 11, 2019

6 Philadelphia Insurance Companies Asset Liability Management Investments: (Continued...) Bond Portfolio Bonds Distribution by Maturity (%) Years Years Average Maturity Government Government Agencies and Municipal Bonds Industrial and Misc Hybrid Securities Total Bond Distribution by Issuer Type Bonds ($000) 7,150,501 6,679,419 6,256,949 6,264,686 5,946,239 US Government (%) Foreign Government (%) Foreign-All Other (%) State/Special Revenue-US (%) Industrial and Misc-US (%) Bond Distribution By Issuer Type 0.2% 31.4% 2.0% 4.9% US Government (%) Foreign Government (%) Foreign-All Other (%) State/Special Revenue-US (%) Industrial and Misc-US (%) 61.5% Reserve Adequacy: The group has experienced favorable loss reserve development in each of the last ten calendar years, which has enhanced reported results. Over this same period, accident year reserve development has been mixed as adverse development has been recorded in three of the last ten accident years. Most of the adverse development was experienced in the 2010 accident year, primarily attributable to worse than expected case incurred development mainly for the commercial multi-peril line of business, and to a lesser degree, the Page 6 of 39 Printed January 11, 2019

7 Philadelphia Insurance Companies Reserve Adequacy: (Continued...) general liability occurrence line. The occasions of adverse loss development are within a range of acceptable tolerances for the management team. The level of overall loss reserves has increased in recent years due to the continued growth in premium. Loss and Allocated Loss Adjustment Expense Reserve Development Calendar Year: Original Loss Reserves ($000) 4,290,117 3,882,490 3,528,151 3,164,337 2,888,083 Developed Reserves Thru Latest Year End ($000) 4,290,117 3,799,785 3,384,244 3,059,448 2,751,465 Development to Original (%) Development to Policyholder Surplus (%) Developed Reserves to Net Premiums Earned (%) Unpaid Latest Year End ($000) 4,290,117 2,769,290 1,737,674 1,048, ,208 Unpaid Reserves to Developed Reserves (%) Accident Year: Original Loss Reserves ($000) 1,520,827 1,361,120 1,234,834 1,143,257 1,064,972 Developed Reserves Thru Latest Year End ($000) 1,520,827 1,373,840 1,183,504 1,149,335 1,069,878 Development to Original (%) Unpaid Latest Year End ($000) 1,520,827 1,031, , , ,439 Accident Year Loss Ratio (%) Accident Year Combined Ratio (%) Source: Bestlink - Schedule P (Loss Reserves) - P/C, US Operating Performance: Very Strong Excellent underwriting results and considerable investment income have produced consistently strong earnings over the past five years, generating pre-tax returns on revenue and surplus that consistently outpace those of the commercial casualty composite. An increasing earned premium base, driven by the expansion of the group's marketing efforts on chosen niche classes of business and the introduction of new products, has led to annual underwriting income generation. Consistent underwriting and operating cash flows have facilitated growth in the invested asset base, providing the impetus for greater net investment income generation. In some years, income production has been dampened by higher than average catastrophe losses. The impact of these occasional years has been mitigated by reinsurance programs, comprehensive underwriting criteria, and proactive management of policy terms and conditions. A.M. Best expects the group to continue judiciously employing a strategy emphasizing growth in targeted niche areas. New product implementation and an organized, committed approach to prospecting should enable the group to further capitalize on its leadership position in the specialty commercial lines marketplace. The group has posted excellent underwriting results over the past five years, with a loss ratio over that time that is far superior. Strictly defined niches, product innovation and individual account underwriting are the operational hallmarks that have led to the historically favorable results. The group's expense ratio remains on par with the composite, which also helps lead to a five-year combined ratio that is over than nine percentage points more favorable than the composite average. The long-held philosophy of Philadelphia Insurance Companies is for the group to generate an underwriting profit on each line of business written. Another factor influencing the favorable results in recent years is the group's focused and disciplined market expansion. Additionally, the group's marketing strategy has Page 7 of 39 Printed January 11, 2019

8 Philadelphia Insurance Companies successfully utilized product differentiation and the maintenance of close customer contact with agents and insureds to cultivate longterm relationships. A.M. Best believes the strong underwriting fundamentals will continue to provide opportunities to generate underwriting profits in the future. Net investment income has grown annually over the past five years, as the group's growing invested asset base has been strongly influenced by the increases in written premium. Generation of substantial operating cash flow is directly tied to the increased investment income. The level of invested assets in a portfolio emphasizing tax-exempt state and municipal bonds has resulted in a pre-tax investment yield below the composite average. The growth in invested assets has been consistent despite substantial levels of shareholder dividends paid annually to the parent organization. Going forward, A.M. Best expects the group to pursue additional top-line growth resulting from expanded marketing efforts, the continued maturation of recently introduced products, along with the addition of new products. Other opportunities may be created by market dislocation where the group can utilize its ample and diverse distribution force to pursue these new business opportunities. A.M. Best expects the group's capitalization to remain strong and comfortably supportive of the ratings. Financial Performance Summary (000) Pre-tax Operating Income 472, , , , ,554 Net Income 383, , , , ,815 A.M. Best Ratios (%) Company Industry Composite Operating Ratio Realized Return on Invested Assets Pre-Tax Return on Revenue Return on Surplus Loss & LAE Ratio Expense Ratio Combined Ratio Net Investment Yield Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US Page 8 of 39 Printed January 11, 2019

9 Philadelphia Insurance Companies Combined Ratio (%) Combined Ratio - Loss & LAE Ratio - Expense Ratio 2017 Pure Loss Ratio by Product Line (%) Com'l MultiPeril Oth Liab Occur Comm'l Auto Liab Oth Liab CM Auto Physical Surety All Other Business Profile: Favorable Philadelphia Insurance Companies (the "group") consists of Philadelphia Indemnity Insurance Company (PIIC) and Tokio Marine Specialty Insurance Company (TMSIC) (formerly Philadelphia Insurance Company). PIIC is a Pennsylvania-domiciled property and casualty insurance company with licenses in 50 states and the District of Columbia. TMSIC is a Delaware-domiciled property and casualty insurance company approved for excess and surplus lines business in 49 states, Page 9 of 39 Printed January 11, 2019

10 Philadelphia Insurance Companies the District of Columbia and the U.S. Virgin Islands. TMSIC's business plan focuses on underwriting the group's niche products on a surplus lines basis in those jurisdictions in which the products are not offered on an admitted basis. PIIC and TMSIC proportionately share all premium, losses and expenses on a pro rata basis, under the terms of an intercompany reinsurance pooling agreement. The pooling percentages of PIIC and TMSIC are 95% and 5%, respectively. The group designs, markets and underwrites specialty commercial property and casualty and professional liability insurance products tailored for the unique exposures of niche markets, providing competitively priced policies, local service relationships, and differentiated coverage features. The group's products include commercial multi-peril package insurance targeting specialized niches, including among others, non-profit organizations, condominium associations, private, vocational and specialty schools, religious organizations, day-care facilities, recreation and outdoor products industry, and health and fitness centers. Other products include commercial automobile insurance, property insurance for large commercial accounts, inland marine products targeting larger risks such as miscellaneous property floaters, and select classes of professional liability and management liability products. During 2011, the group launched a surety division that began offering surety bonds for contractors, sub-contractors, and others in the construction industry as well as other selective commercial surety bonds. In 2012, the group launched an excess and surplus lines division. New products are developed annually to complement those that become more mature and competitive. These new products are designed to take advantage of emerging exposures and developing or changing market niches. A select group of approximately 275 "preferred agents" and a broader network of approximately 14,000 independent producers complement the group's approximately 124 marketing professionals located in 50 regional and field offices across 13 regions covering the United States. The group's distribution model integrates proactive risk selection into the underwriting process via direct contact with the business prospect and/or policyholder. Going forward, A.M. Best expects the group to pursue additional top-line growth resulting from expanded marketing efforts, the continued maturation of recently introduced products, and the strategic addition of new products. Other opportunities may be created by market dislocation where the group can utilize its ample and diverse distribution force to pursue these new business opportunities. Leverage Analysis Company Industry Composite A.M. Best Ratios (%) Net Premiums Written to Policyholders' Surplus Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US 2017 Top Product Lines of Business (Net Premiums Written) 3.3% 13.7% 11.0% 5.0% 2.1% 51.1% Com'l MultiPeril Oth Liab Occur Comm'l Auto Liab Oth Liab CM Auto Physical Surety All Other 13.8% Page 10 of 39 Printed January 11, 2019

11 Philadelphia Insurance Companies 2017 By-Line Business Product Line Direct Premiums Written Reinsurance Premiums Assumed Reinsurance Premiums Ceded Net Premiums Written ($000) (%) ($000) (%) ($000) (%) ($000) (%) Business Retention (%) Com'l MultiPeril 1,719, , ,627, Oth Liab Occur 519, , , Comm'l Auto Liab 445, , , , Oth Liab CM 373, , , Auto Physical 177, , , , Surety 111, , , All Other 110, , , Total 3,456, , , ,183, Geographical Breakdown By Direct Premium Writings California 478, , , , ,270 New York 436, , , , ,833 Texas 229, , , , ,022 Florida 209, , , , ,318 Pennsylvania 191, , , , ,956 New Jersey 157, , , , ,067 Massachusetts 156, , , , ,553 Illinois 94,529 92,461 86,958 83,631 76,400 Washington 86,932 79,006 74,525 66,485 60,216 Colorado 84,344 76,334 69,761 65,254 64,413 All Other 1,330,684 1,261,362 1,178,308 1,114,986 1,029,229 Total 3,456,742 3,266,544 3,057,022 2,901,637 2,649,278 Enterprise Risk Management: Very Strong The Enterprise Risk Management (ERM) structure in place is extensive and well integrated with key risks identified and the specific committees or teams assigned to monitor and address each risk. It includes the establishment and maintenance of appropriate controls as respects to each risk category. The ERM structure is headed up by the executive management team with a specific ERM Committee overseeing both Corporate Governance and Departmental Functions. Each committee reports directly to the executive management team. The lead ERM Committee consists of the CEO, CFO, CIO, Chief Actuarial Officer and the director of internal audit. A separate Audit Committee reviews the activities/output of the ERM Committee. Every key risk has a risk-based "dashboard" that is available to management at all times. This dashboard details each key risk; denotes the perils or circumstances that could lead to the risk arising; quantifies the risk; and shows work in progress as far as addressing the risk. Philadelphia Insurance Companies' ERM structure is also fully integrated with that of TMHD. Dashboard calculations are consistent with TMHD's Standard Capital Modeling Manual. Philadelphia Insurance Companies' Dynamic Portfolio Optimization program is being evaluated and selectively implemented across other TMHD Group companies, which is proving valuable with respect to east coast hurricane exposure determinations. Page 11 of 39 Printed January 11, 2019

12 Philadelphia Insurance Companies Financial Statements: Balance Sheet: Consolidated Balance Sheet Admitted Assets 2017 ($000) 2016 ($000) 2017 (%) 2016 (%) Bonds 7,150,501 6,679, Preferred Stock 48,537 60, Common Stock 33,900 71, Cash and Short-term Invest 165,911 62, Real Estate, Investment 3,294 3, Derivatives Other Non-Affil Inv Asset 641, , Investments in Affiliates Real Estate, Offices Total Invested Assets 8,043,606 7,454, Premium Balances 934, , Accrued Interest 91,331 81, All Other Assets 190, , Total Assets 9,259,643 8,650, Liabilities & Surplus 2017 ($000) 2016 ($000) 2017 (%) 2016 (%) Loss and LAE Reserves 4,488,101 4,059, Unearned Premiums 1,613,896 1,526, Derivatives Conditional Reserve Funds All Other Liabilities 650, , Total Liabilities 6,752,731 6,181, Surplus notes Capital and Assigned Surplus 413, , Unassigned Surplus 2,093,423 2,055, Total Policyholders' Surplus 2,506,912 2,469, Total Liabilities and Surplus 9,259,643 8,650, Page 12 of 39 Printed January 11, 2019

13 Philadelphia Insurance Companies Summary of Operations and Operating Cash Flow: Consolidated Summary of Operations (000) Statement of Income 2017 Net Operating Cash Flow 2017 Premiums earned 3,096,120 Premiums collected 3,147,274 Losses incurred 1,606,790 Benefit & loss-related pmts 1,269,994 LAE incurred 366,634 Undwr expenses incurred 931,158 LAE & undwr expenses paid 1,238,288 Other expenses incurred... Other income / expense... Dividends to policyholders 1,773 Dividends to policyholders 738 Net underwriting income 189,766 Underwriting cash flow 638,254 Net transfer... Net investment income 282,978 Investment income 345,100 Other income/expense 213 Other income/expense 213 Pre-tax operating income 472,956 Pre-tax cash operations 983,567 Realized capital gains -5,968 Income taxes incurred 83,511 Income taxes pd (recov) 85,657 Net income 383,478 Net oper cash flow 897,910 Page 13 of 39 Printed January 11, 2019

14 Philadelphia Insurance Companies Philadelphia Insurance Companies Report Revision Date: January 4, 2019 Company Attributes: Industry: Business Type: Entity Type: Organization Type: Business Status: Marketing Type: Insurance Property/Casualty Data Consolidation Stock In Business Broker Company History: Date Incorporated: 02/10/1927 Date Commenced: N/A Domicile: United States: Pennsylvania Company Operations: 2017 Rank Top 5 Lines of Business by NPW 1 Com'l MultiPeril 51.1% 2 Oth Liab Occur 13.8% 3 Comm'l Auto Liab 13.7% 4 Oth Liab CM 11.0% 5 Auto Physical 5.0% 2017 Rank Top 5 Geographic Distribution by DPW 1 United States: CA 13.9% 2 United States: NY 12.6% 3 United States: TX 6.7% 4 United States: FL 6.0% 5 United States: PA 5.5% Page 14 of 39 Printed January 11, 2019

15 Philadelphia Indemnity Insurance Company Philadelphia Indemnity Insurance Company Report Release Date: Rating Effective Date: January 4, 2019 December 21, 2018 Disclosure Information: View A.M. Best s Rating Disclosure Form Analytical Contacts A.M. Best Rating Services, Inc. Robert Raber Gregory T. Williams Associate Director Senior Director Robert.Raber@ambest.com Greg.Williams@ambest.com +1(908) Ext (908) Ext Ultimate Parent: Tokio Marine Holdings, Inc. A.M. Best Rating Unit: Philadelphia Insurance Companies Best's Credit Ratings: Rating Effective Date: December 21, 2018 Best's Financial Strength Rating: A++ Outlook: Stable Action: Affirmed Best's Issuer Credit Rating: aa+ Outlook: Stable Action: Affirmed Five Year Credit Rating History: Best's Financial Strength Ratings Best's Issuer Credit Ratings Date Rating Outlook Action Rating Outlook Action 12/21/2018 A++ Stable Affirmed aa+ Stable Affirmed 12/01/2017 A++ Stable Affirmed aa+ Stable Affirmed 09/21/2016 A++ Stable Affirmed aa+ Stable Affirmed 06/04/2015 A++ Stable Affirmed aa+ Stable Affirmed 05/08/2014 A++ Stable Affirmed aa+ Stable Affirmed Rating Rationale: The company's rating reflects its pooling arrangement with other pool members of the Philadelphia Insurance Companies (AMB# ). For more detail regarding the Rating Rationale and Best's Credit Report for the Rating Unit, view Philadelphia Insurance Companies (AMB# ). Page 15 of 39 Printed January 11, 2019

16 Philadelphia Indemnity Insurance Company Financial Data Notes: Time Period: Annual Status: A.M. Best Quality Cross Checked Data as of: 12/18/2018 Key Financial Indicators: Key Financial Indicators (000) Premiums Written Direct 3,159,201 3,009,072 2,850,734 2,739,950 2,547,303 Net 3,024,783 2,872,831 2,696,183 2,553,265 2,351,470 Pre-tax Operating Income ($000) 449, , , , ,939 Net Income 364, , , , ,493 Total Admitted Assets 8,653,171 8,081,000 7,361,508 7,182,217 6,526,061 Policyholders' Surplus 2,316,369 2,271,497 2,047,521 2,337,376 2,156,714 Key Financial Indicators - A.M. Best Ratios (%) Profitability Combined Ratio Investment Yield Pre-Tax Return on Revenue Leverage Non-Affiliated Investment Leverage Net Premiums Written to Policyholders' Surplus Net Leverage Liquidity Overall Liquidity Operating Cash-Flow (*) Within several financial tables of this report, this company is compared against the Commercial Casualty Composite. (*) Data reflected within all tables of this report has been compiled from the company-filed statutory statement. Page 16 of 39 Printed January 11, 2019

17 Philadelphia Indemnity Insurance Company Credit Analysis: Balance Sheet Strength Capitalization: Capital Generation Analysis Pre-tax Operating Income ($000) 449, , , , ,939 Realized Capital Gains ($000) -6,454-1,559-33,182-2,863 1,740 Income Taxes ($000) 78, , , , ,187 Unrealized Capital Gains ($000) 3,745 25,156-6,206-17, Net Contributed Capital ($000) -260, , , , ,000 Other Changes ($000) -62,993 6,140 5,108 2,368 4,764 Change in Policyholders' Surplus 44, , , , ,535 ($000) Change in Policyholders' Surplus (%) Liquidity Analysis (%) Company Industry Composite Quick Liquidity Current Liquidity Overall Liquidity Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US Asset Liability Management Investments: Bond Portfolio Bonds Distribution by Maturity (%) Years Years Average Maturity Government Government Agencies and Municipal Bonds Industrial and Misc Hybrid Securities Total Page 17 of 39 Printed January 11, 2019

18 Philadelphia Indemnity Insurance Company Asset Liability Management Investments: (Continued...) Bond Distribution by Issuer Type Bonds ($000) 6,708,174 6,256,540 5,821,420 5,869,602 5,603,006 US Government (%) Foreign Government (%) Foreign-All Other (%) State/Special Revenue-US (%) Industrial and Misc-US (%) Bond Distribution By Issuer Type 0.2% 32.3% 2.1% 4.9% US Government (%) Foreign Government (%) Foreign-All Other (%) State/Special Revenue-US (%) Industrial and Misc-US (%) 60.5% Reserve Adequacy: Loss and Allocated Loss Adjustment Expense Reserve Development Calendar Year: Original Loss Reserves ($000) 4,075,612 3,688,366 3,351,743 3,006,121 2,743,679 Developed Reserves Thru Latest Year End ($000) 4,075,612 3,609,796 3,215,031 2,906,475 2,613,892 Development to Original (%) Development to Policyholder Surplus (%) Developed Reserves to Net Premiums Earned (%) Unpaid Latest Year End ($000) 4,075,612 2,630,826 1,650, , ,648 Unpaid Reserves to Developed Reserves (%) Page 18 of 39 Printed January 11, 2019

19 Philadelphia Indemnity Insurance Company Reserve Adequacy: (Continued...) Accident Year: Original Loss Reserves ($000) 1,444,786 1,293,064 1,173,092 1,086,095 1,011,720 Developed Reserves Thru Latest Year End ($000) 1,444,786 1,305,148 1,124,329 1,091,868 1,016,381 Development to Original (%) Unpaid Latest Year End ($000) 1,444, , , , ,617 Accident Year Loss Ratio (%) Accident Year Combined Ratio (%) Source: Bestlink - Schedule P (Loss Reserves) - P/C, US Operating Performance Financial Performance Summary (000) Pre-tax Operating Income 449, , , , ,939 Net Income 364, , , , ,493 A.M. Best Ratios (%) Company Industry Composite Operating Ratio Realized Return on Invested Assets Pre-Tax Return on Revenue Return on Surplus Loss & LAE Ratio Expense Ratio Combined Ratio Net Investment Yield Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US Page 19 of 39 Printed January 11, 2019

20 Philadelphia Indemnity Insurance Company Combined Ratio (%) Combined Ratio - Loss & LAE Ratio - Expense Ratio 2017 Pure Loss Ratio by Product Line (%) Com'l MultiPeril Oth Liab Occur Comm'l Auto Liab Oth Liab CM Auto Physical Surety All Other Business Profile The following text is derived from Best's Credit Report on Philadelphia Insurance Companies (AMB# ): Philadelphia Insurance Companies (the "group") consists of Philadelphia Indemnity Insurance Company (PIIC) and Tokio Marine Specialty Insurance Company (TMSIC) (formerly Philadelphia Insurance Company). Page 20 of 39 Printed January 11, 2019

21 Philadelphia Indemnity Insurance Company PIIC is a Pennsylvania-domiciled property and casualty insurance company with licenses in 50 states and the District of Columbia. TMSIC is a Delaware-domiciled property and casualty insurance company approved for excess and surplus lines business in 49 states, the District of Columbia and the U.S. Virgin Islands. TMSIC's business plan focuses on underwriting the group's niche products on a surplus lines basis in those jurisdictions in which the products are not offered on an admitted basis. PIIC and TMSIC proportionately share all premium, losses and expenses on a pro rata basis, under the terms of an intercompany reinsurance pooling agreement. The pooling percentages of PIIC and TMSIC are 95% and 5%, respectively. The group designs, markets and underwrites specialty commercial property and casualty and professional liability insurance products tailored for the unique exposures of niche markets, providing competitively priced policies, local service relationships, and differentiated coverage features. The group's products include commercial multi-peril package insurance targeting specialized niches, including among others, non-profit organizations, condominium associations, private, vocational and specialty schools, religious organizations, day-care facilities, recreation and outdoor products industry, and health and fitness centers. Other products include commercial automobile insurance, property insurance for large commercial accounts, inland marine products targeting larger risks such as miscellaneous property floaters, and select classes of professional liability and management liability products. During 2011, the group launched a surety division that began offering surety bonds for contractors, sub-contractors, and others in the construction industry as well as other selective commercial surety bonds. In 2012, the group launched an excess and surplus lines division. New products are developed annually to complement those that become more mature and competitive. These new products are designed to take advantage of emerging exposures and developing or changing market niches. A select group of approximately 275 "preferred agents" and a broader network of approximately 14,000 independent producers complement the group's approximately 124 marketing professionals located in 50 regional and field offices across 13 regions covering the United States. The group's distribution model integrates proactive risk selection into the underwriting process via direct contact with the business prospect and/or policyholder. Going forward, A.M. Best expects the group to pursue additional top-line growth resulting from expanded marketing efforts, the continued maturation of recently introduced products, and the strategic addition of new products. Other opportunities may be created by market dislocation where the group can utilize its ample and diverse distribution force to pursue these new business opportunities. Leverage Analysis Company Industry Composite A.M. Best Ratios (%) Net Premiums Written to Policyholders' Surplus Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US 2017 Top Product Lines of Business (Net Premiums Written) 3.3% 13.7% 11.0% 5.0% 2.1% 51.1% Com'l MultiPeril Oth Liab Occur Comm'l Auto Liab Oth Liab CM Auto Physical Surety All Other 13.8% Page 21 of 39 Printed January 11, 2019

22 Philadelphia Indemnity Insurance Company 2017 By-Line Business Product Line Direct Premiums Written Reinsurance Premiums Assumed Reinsurance Premiums Ceded Net Premiums Written ($000) (%) ($000) (%) ($000) (%) ($000) (%) Business Retention (%) Com'l MultiPeril 1,683, , , ,545, Oth Liab Occur 359, , , , Comm'l Auto Liab 444, , , , Oth Liab CM 330, , , , Auto Physical 159, , , , Surety 111, , , All Other 71, , , , Total 3,159, , , ,024, Geographical Breakdown By Direct Premium Writings New York 405, , , , ,505 California 402, , , , ,347 Texas 200, , , , ,394 Florida 191, , , , ,428 Pennsylvania 184, , , , ,062 Massachusetts 147, , , , ,631 New Jersey 147, , , , ,768 Illinois 85,422 84,331 80,431 76,779 72,476 Washington 81,484 74,970 70,950 64,071 58,786 Colorado 78,043 70,565 64,769 61,571 61,597 All Other 1,235,097 1,175,285 1,110,769 1,059, ,309 Total 3,159,201 3,009,072 2,850,734 2,739,950 2,547,303 Page 22 of 39 Printed January 11, 2019

23 Philadelphia Indemnity Insurance Company Financial Statements: Balance Sheet: Balance Sheet: Admitted Assets 2017 ($000) 2016 ($000) 2017 (%) 2016 (%) Bonds 6,708,174 6,256, Preferred Stock 48,537 60, Common Stock 33,817 71, Cash and Short-term Invest 140,468 44, Real Estate, Investment 3,294 3, Derivatives Other Non-Affil Inv Asset 641, , Investments in Affiliates Real Estate, Offices Total Invested Assets 7,575,754 7,013, Premium Balances 831, , Accrued Interest 86,998 77, All Other Assets 158, , Total Assets 8,653,171 8,081, Liabilities & Surplus 2017 ($000) 2016 ($000) 2017 (%) 2016 (%) Loss and LAE Reserves 4,263,696 3,856, Unearned Premiums 1,533,201 1,449, Derivatives Conditional Reserve Funds All Other Liabilities 539, , Total Liabilities 6,336,802 5,809, Surplus notes Capital and Assigned Surplus 390, , Unassigned Surplus 1,925,798 1,880, Total Policyholders' Surplus 2,316,369 2,271, Total Liabilities and Surplus 8,653,171 8,081, Page 23 of 39 Printed January 11, 2019

24 Philadelphia Indemnity Insurance Company Summary of Operations and Operating Cash Flow: Summary of Operations (000) Statement of Income 2017 Net Operating Cash Flow 2017 Premiums earned 2,941,314 Premiums collected 2,981,983 Losses incurred 1,526,450 Benefit & loss-related pmts 1,199,019 LAE incurred 348,302 Undwr expenses incurred 884,600 LAE & undwr expenses paid 1,177,592 Other expenses incurred... Other income / expense... Dividends to policyholders 1,684 Dividends to policyholders 649 Net underwriting income 180,278 Underwriting cash flow 604,722 Net transfer... Net investment income 268,686 Investment income 327,934 Other income/expense 214 Other income/expense 214 Pre-tax operating income 449,177 Pre-tax cash operations 932,870 Realized capital gains -6,454 Income taxes incurred 78,603 Income taxes pd (recov) 87,249 Net income 364,120 Net oper cash flow 845,621 Page 24 of 39 Printed January 11, 2019

25 Philadelphia Indemnity Insurance Company Philadelphia Indemnity Insurance Company Report Revision Date: January 4, 2019 Company Attributes: Industry: Business Type: Entity Type: Organization Type: Business Status: Marketing Type: Financial Size: Insurance Property/Casualty Operating Company Stock In Business - Actively Underwriting Broker XV ($2 Billion or greater) Company History: Date Incorporated: 02/10/1927 Date Commenced: 03/01/1927 Domicile: United States: Pennsylvania The company was incorporated under the laws of the Commonwealth of Pennsylvania as the Philadelphia Mutual Insurance Company on February 4, 1927, and began business on March 1 of the same year. The name, Philadelphia Insurance Company, went into effect after the company converted from a mutual company to a stock company on December 3, The present title was adopted on June 20, 1990, concurrent with the merger of a former companion carrier, The Preserver Assurance Company. Common capital stock of $3,599,950 consists of 359,995 shares of common stock at a par value of $10 per share. A total of 1,000,000 shares are authorized. Company Operations: Licensed Territory: (Current since 11/06/2018).The company is licensed in the District of Columbia, Guam, U.S. Virgin Islands and all states Rank Top 5 Lines of Business by NPW 1 Com'l MultiPeril 51.1% 2 Oth Liab Occur 13.8% 3 Comm'l Auto Liab 13.7% 4 Oth Liab CM 11.0% 5 Auto Physical 5.0% 2017 Rank Top 5 Geographic Distribution by DPW 1 United States: NY 12.8% 2 United States: CA 12.7% 3 United States: TX 6.3% 4 United States: FL 6.1% 5 United States: PA 5.8% Company Management: Last significant update on 03/11/2016 The company is wholly owned by Philadelphia Consolidated Holding Corp. (Philadelphia Consolidated), which is also the parent of Tokio Marine Specialty Insurance Company, Liberty American Insurance Company and Liberty American Select Insurance Company. The company maintains joint administrative offices with Tokio Marine Specialty Insurance Company. Effective December 1, 2008, Philadelphia Consolidated was acquired by Tokio Marine Holdings, Inc. (TMHD) through TMHD's wholly owned subsidiary, Tokio Marine Page 25 of 39 Printed January 11, 2019

26 Philadelphia Indemnity Insurance Company Company Management: (Continued...) & Nichido Fire Insurance Co., Ltd. (TMNF). TMNF was founded in 1879, and is the oldest and largest property and casualty insurer in Japan. On March 31, 2012, TMNF contributed 100% of the outstanding shares of Philadelphia Consolidated to Tokio Marine North America, Inc. (TMNA), an insurance holding company domiciled in the State of Delaware and a wholly owned direct subsidiary of TMNF. Management of the company is under the direction of Robert D. O'Leary, Jr., President and Chief Executive Officer. He serves in a similar capacity with the affiliate, Tokio Marine Specialty Insurance Company. The company has an agreement with Maguire Insurance Agency, Inc., which is also wholly owned by Philadelphia Consolidated, to provide underwriting, policy service, claims handling and sales support. The company also has an agreement with TMNA Services, LLC, which is wholly owned by TMNA, to provide accounting and finance, actuarial, legal, facility maintenance, information technology, human capital, corporate communications and internal audit services. The compensation structure is based on fees consistent with industry standards. Officers Chairman of the Board: James J. Maguire, Jr. President and CEO: Robert D. O'Leary EVP, Treasurer and CFO: Karen A. Gilmer-Pauciello EVP and Chief Underwriting Officer: John W. Glomb EVP and Chief Claim Officer: William J. Benecke EVP and Chief Marketing Officer: Brian J. O'Reilly Directors Karen A. Gilmer-Pauciello James J. Maguire, Jr. (Chairman) Bruce Meyer Michael J. Morris Robert D. O'Leary Donald A. Pizer Nobufumi Yasue Regulatory: Auditor: PricewaterhouseCoopers, LLP An examination of the financial condition was made as of December 31, 2010, by the insurance department of Pennsylvania. The 2017 annual independent audit of the company was conducted by PricewaterhouseCoopers, LLP. The annual statement of actuarial opinion is provided by Mark R. Proska, FCAS, MAAA, TMNA Services, LLC. Page 26 of 39 Printed January 11, 2019

27 Tokio Marine Specialty Insurance Company Tokio Marine Specialty Insurance Company Report Release Date: Rating Effective Date: January 4, 2019 December 21, 2018 Disclosure Information: View A.M. Best s Rating Disclosure Form Analytical Contacts A.M. Best Rating Services, Inc. Robert Raber Gregory T. Williams Associate Director Senior Director Robert.Raber@ambest.com Greg.Williams@ambest.com +1(908) Ext (908) Ext Ultimate Parent: Tokio Marine Holdings, Inc. A.M. Best Rating Unit: Philadelphia Insurance Companies Best's Credit Ratings: Rating Effective Date: December 21, 2018 Best's Financial Strength Rating: A++ Outlook: Stable Action: Affirmed Best's Issuer Credit Rating: aa+ Outlook: Stable Action: Affirmed Five Year Credit Rating History: Best's Financial Strength Ratings Best's Issuer Credit Ratings Date Rating Outlook Action Rating Outlook Action 12/21/2018 A++ Stable Affirmed aa+ Stable Affirmed 12/01/2017 A++ Stable Affirmed aa+ Stable Affirmed 09/21/2016 A++ Stable Affirmed aa+ Stable Affirmed 06/04/2015 A++ Stable Affirmed aa+ Stable Affirmed 05/08/2014 A++ Stable Affirmed aa+ Stable Affirmed Rating Rationale: The company's rating reflects its pooling arrangement with other pool members of the Philadelphia Insurance Companies (AMB# ). For more detail regarding the Rating Rationale and Best's Credit Report for the Rating Unit, view Philadelphia Insurance Companies (AMB# ). Page 27 of 39 Printed January 11, 2019

28 Tokio Marine Specialty Insurance Company Financial Data Notes: Time Period: Annual Status: A.M. Best Quality Cross Checked Data as of: 12/18/2018 Key Financial Indicators: Key Financial Indicators (000) Premiums Written Direct 297, , , , ,975 Net 159, , , , ,762 Pre-tax Operating Income ($000) 23,779 25,321 26,563 23,971 22,615 Net Income 19,357 19,284 19,851 17,463 17,322 Total Admitted Assets 606, , , , ,096 Policyholders' Surplus 190, , , , ,296 Key Financial Indicators - A.M. Best Ratios (%) Profitability Combined Ratio Investment Yield Pre-Tax Return on Revenue Leverage Non-Affiliated Investment Leverage Net Premiums Written to Policyholders' Surplus Net Leverage Liquidity Overall Liquidity Operating Cash-Flow (*) Within several financial tables of this report, this company is compared against the Surplus Lines Composite. (*) Data reflected within all tables of this report has been compiled from the company-filed statutory statement. Credit Analysis: Balance Sheet Strength Page 28 of 39 Printed January 11, 2019

29 Tokio Marine Specialty Insurance Company Capitalization: Capital Generation Analysis Pre-tax Operating Income ($000) 23,779 25,321 26,563 23,971 22,615 Realized Capital Gains ($000) Income Taxes ($000) 4,907 6,523 6,841 6,651 5,358 Unrealized Capital Gains ($000) Net Contributed Capital ($000) -19,750-19, Other Changes ($000) -6, , Change in Policyholders' Surplus -7, ,836 16,641 16,474 ($000) Change in Policyholders' Surplus (%) Liquidity Analysis (%) Company Industry Composite Quick Liquidity Current Liquidity Overall Liquidity Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US Asset Liability Management Investments: Bond Portfolio Bonds Distribution by Maturity (%) Years Years Average Maturity Government Government Agencies and Municipal Bonds Industrial and Misc Total Bond Distribution by Issuer Type Bonds ($000) 442, , , , ,233 US Government (%) Foreign-All Other (%) State/Special Revenue-US (%) Industrial and Misc-US (%) Page 29 of 39 Printed January 11, 2019