ANNUAL STATEMENT For the Year Ended DECEMBER 31, 2016 OF THE CONDITION AND AFFAIRS OF THE Safepoint Insurance Company

Transcription

1 PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION ANNUAL STATEMENT For the Year Ended DECEMBER 31, 216 OF THE CONDITION AND AFFAIRS OF THE Safepoint Insurance Company Document Code: 21 NAIC Group Code, NAIC Company Code Employer's ID Number (Current Period) (Prior Period) Organized under the Laws of Florida, State of Domicile or Port of Entry FL Country of Domicile United States of America Incorporated/Organized 1/23/213 Commenced Business 11/21/213 Statutory Home Office 1264 Telecom Dr, Temple Terrace, FL, US (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 1264 Telecom Dr (Street and Number) Temple Terrace, FL, US (813) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address 1264 Telecom Dr, Temple Terrace, FL, US (Street and Number or P.O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records 1264 Telecom Dr (Street and Number) Temple Terrace, FL, US (813) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Website Address Statutory Statement Contact John William Burns (813) (Name) (Area Code)(Telephone Number)(Extension) jburns@safepointins.com (813) ( Address) (Fax Number) OFFICERS Amarjit Singh Dhaliwal David Michael Flitman John William Burns Wayne Matthews Name David Michael Flitman Nancy Lee Baily John William Burns Ryan Daniel Beck Title President Secretary Treasurer Chief Claims Officer OTHERS DIRECTORS OR TRUSTEES Parminder Dhaliwal Donald Michael Rhomberg Benjamin Rosenblum State of Florida County of Hillsborough ss The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of the said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement. (Signature) (Signature) (Signature) David Michael Flitman Nancy Lee Baily John William Burns (Printed Name) (Printed Name) (Printed Name) President Secretary Treasurer (Title) (Title) (Title) Subscribed and sworn to before me this a. Is this an original filing? Yes[X] No[ ] day of, 217 b. If no, 1. State the amendment number 2. Date filed 3. Number of pages attached (Notary Public Signature)

2 2 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company ASSETS Current Year Prior Year Net Admitted Nonadmitted Assets Net Admitted Assets Assets (Cols.1-2) Assets 1. Bonds (Schedule D) 87,126, ,126, ,952, Stocks (Schedule D): 2.1 Preferred stocks.. 8,722, ,722,434 4,438,2 2.2 Common Stocks 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 $... encumbrances)... 1,488, ,488,942 1,531, Properties held for the production of income (less $... encumbrances) 4.3 Properties held for sale (less $... encumbrances) Cash ($...4,689,486, Schedule E Part 1), cash equivalents ($..., Schedule E Part 2) and short-term investments ($...4,292,12, Schedule DA).. 8,981, ,981, ,89, Contract loans (including $... premium notes).. 7. Derivatives (Schedule DB) 8. Other invested assets (Schedule BA).. 9. Receivables for securities. 1. Securities Lending Reinvested Collateral Assets (Schedule DL) 11. Aggregate write-ins for invested assets 12. Subtotals, cash and invested assets (Lines 1 to 11) 16,319,923 16,319, ,731, Title plants less $... charged off (for Title insurers only) 14. Investment income due and accrued , , , Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection 9,67, ,67,195 5,666, Deferred premiums, agents' balances and installments booked but deferred and not yet due (Including $... earned but unbilled premiums) 15.3 Accrued retrospective premiums ($...) and contracts subject to redetermination ($...) 16. Reinsurance: 16.1 Amounts recoverable from reinsurers. 2,22, ,22, , Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans 18.1 Current federal and foreign income tax recoverable and interest thereon... 3,113, ,113,22 2,22, Net deferred tax asset.... 2,894, ,894,982 1,99, Guaranty funds receivable or on deposit Electronic data processing equipment and software.. 57, ,167. 2, , Furniture and equipment, including health care delivery assets ($...). 22. Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates... 4,5,... 4,5, Health care ($...) and other amounts receivable Aggregate write-ins for other than invested assets.... 1,521, ,521,868 1,655, TOTAL Assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) ,15, , ,959, ,567, From Separate Accounts, Segregated Accounts and Protected Cell Accounts. 28. TOTAL (Lines 26 and 27). 139,15, , ,959, ,567,46 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 11 from overflow page TOTALS (Lines 111 through 113 plus 1198) (Line 11 above) State tax receivable , , , Premium Held on Deposit with Reinsurer. 3,116, ,116,557 1,277, Assumed Reinsurance Balance Receivable... 6,967, ,967,48. 8, Summary of remaining write-ins for Line 25 from overflow page 6, , TOTALS (Lines 251 through 253 plus 2598) (Line 25 above)... 1,521, ,521,868 1,655,396

3 3 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current Year Prior Year 1. Losses (Part 2A, Line 35, Column 8)... 26,517, ,233, Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6) Loss adjustment expenses (Part 2A, Line 35, Column 9) 6,969,51 5,362, Commissions payable, contingent commissions and other similar charges... 1,471, Other expenses (excluding taxes, licenses and fees).. 114, , Taxes, licenses and fees (excluding federal and foreign income taxes). 238, , Current federal and foreign income taxes (including $... on realized capital gains (losses)) Net deferred tax liability. 8. Borrowed money $... and interest thereon $ Unearned premiums (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of $...38,323,75 and including warranty reserves of $... and accrued accident and health experience rating refunds including $... for medical loss ratio rebate per the Public Health Service Act) ,355, ,36,94 1. Advance premiums 2,477,464 2,538, Dividends declared and unpaid: 11.1 Stockholders Policyholders Ceded reinsurance premiums payable (net of ceding commissions). 11,641,56 7,875, Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 19) 78, Amounts withheld or retained by company for account of others 4, , Remittances and items not allocated 16. Provision for reinsurance (including ($... certified)) (Schedule F, Part 8) Net adjustments in assets and liabilities due to foreign exchange rates Drafts outstanding Payable to parent, subsidiaries and affiliates.... 3,85, , Derivatives. 21. Payable for securities Payable for securities lending Liability for amounts held under uninsured plans. 24. Capital notes $... and interest thereon $ Aggregate write-ins for liabilities ,94 6,44, TOTAL Liabilities excluding protected cell liabilities (Lines 1 through 25) 89,286, ,822, Protected cell liabilities TOTAL Liabilities (Lines 26 and 27) ,286, ,822, Aggregate write-ins for special surplus funds 3. Common capital stock. 3,3, 2,55, 31. Preferred capital stock Aggregate write-ins for other than special surplus funds Surplus notes Gross paid in and contributed surplus.. 4,2, ,45, 35. Unassigned funds (surplus) 6,173, ,744, Less treasury stock, at cost: shares common (value included in Line 3 $...) shares preferred (value included in Line 31 $...) Surplus as regards policyholders (Lines 29 to 35, minus 36) (Page 4, Line 39)... 49,673, ,744, TOTALS (Page 2, Line 28, Column 3).. 138,959, ,567,46 DETAILS OF WRITE-INS 251. Assumed reinsurance balance payable.... 5,287, Premium refunds payable 295, , Deferred ceding commission under SSAP 62R , Summary of remaining write-ins for Line 25 from overflow page TOTALS (Lines 251 through 253 plus 2598) (Line 25 above) 295,94 6,44, Summary of remaining write-ins for Line 29 from overflow page TOTALS (Lines 291 through 293 plus 2998) (Line 29 above) Summary of remaining write-ins for Line 32 from overflow page TOTALS (Lines 321 through 323 plus 3298) (Line 32 above)...

4 4 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company STATEMENT OF INCOME 1 2 Current Prior Year Year UNDERWRITING INCOME 1. Premiums earned (Part 1, Line 35, Column 4)... 41,74, ,974,821 DEDUCTIONS 2. Losses incurred (Part 2, Line 35, Column 7). 3,94, ,14, Loss adjustment expenses incurred (Part 3, Line 25, Column 1).. 13,16, ,665, Other underwriting expenses incurred (Part 3, Line 25, Column 2) 8,959,985 9,834, Aggregate write-ins for underwriting deductions TOTAL Underwriting Deductions (Lines 2 through 5). 53,61, ,64, Net income of protected cells 8. Net underwriting gain or (loss) (Line 1 minus Line 6 plus Line 7).... (11,987,1).... 1,37,346 INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line 17).... 1,719,479 1,171, Net realized capital gains (losses) less capital gains tax of $...118,239 (Exhibit of Capital Gains (Losses)) 229,523. 8, Net investment gain or (loss) (Lines 9 + 1).. 1,949,3 1,179,382 OTHER INCOME 12. Net gain or (loss) from agents' or premium balances charged off (amount recovered $... amount charged off $...) Finance and service charges not included in premiums. 186, , Aggregate write-ins for miscellaneous income 15. TOTAL Other Income (Lines 12 through 14). 186, , Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines )... (9,851,56) ,731, Dividends to policyholders Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 16 minus Line 17).. (9,851,56) ,731, Federal and foreign income taxes incurred. (2,647,225) 2,572,82 2. Net income (Line 18 minus Line 19) (to Line 22) (7,24,281) 9,159,754 CAPITAL AND SURPLUS ACCOUNT 21. Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2)... 41,744, ,892, Net income (from Line 2). (7,24,281) 9,159, Net transfers (to) from Protected Cell accounts Change in net unrealized capital gains or (losses) less capital gains tax of $...(91,958).. (177,925) , Change in net unrealized foreign exchange capital gain (loss). 26. Change in net deferred income tax. 812, (1,35,3) 27. Change in nonadmitted assets (Exhibit of Nonadmitted Assets Line 28, Column 3).... (1,75).... (1,417) 28. Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1).. 12, 29. Change in surplus notes. 3. Surplus (contributed to) withdrawn from protected cells Cumulative effect of changes in accounting principles. 32. Capital changes: 32.1 Paid in 75, Transferred from surplus (Stock Dividend) 32.3 Transferred to surplus 33. Surplus adjustments: 33.1 Paid in. 13,75, 4,, 33.2 Transferred to capital (Stock Dividend) Transferred from capital Net remittances from or (to) Home Office. 35. Dividends to stockholders 36. Change in treasury stock (Page 3, Line 36.1 and 36.2, Column 2 minus Column 1) 37. Aggregate write-ins for gains and losses in surplus Change in surplus as regards policyholders for the year (Lines 22 through 37) 7,928, ,851, Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37). 49,673, ,744,588 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 5 from overflow page TOTALS (Lines 51 through 53 plus 598) (Line 5 above) Summary of remaining write-ins for Line 14 from overflow page TOTALS (Lines 141 through 143 plus 1498) (Line 14 above) Summary of remaining write-ins for Line 37 from overflow page TOTALS (Lines 371 through 373 plus 3798) (Lines 37 above)...

5 5 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company CASH FLOW 1 2 Current Year Prior Year Cash from Operations 1. Premiums collected net of reinsurance... 39,118, ,145, Net investment income... 2,323,753 1,828, Miscellaneous income.. 186, ,18 4. TOTAL (Lines 1 through 3).. 41,628, ,155,76 5. Benefit and loss related payments... 24,825, ,935, Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts 7. Commissions, expenses paid and aggregate write-ins for deductions. 19,28, ,41,64 8. Dividends paid to policyholders Federal and foreign income taxes paid (recovered) net of $... tax on capital gains (losses)... (1,636,64) 4,573, TOTAL (Lines 5 through 9).. 42,47, ,55, Net cash from operations (Line 4 minus Line 1)... (841,214) 7,64,72 Cash from Investments 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds.. 43,844, ,85, Stocks.. 1,556,41 2,299, Mortgage loans Real estate Other invested assets 12.6 Net gains or (losses) on cash, cash equivalents and short-term investments Miscellaneous proceeds 41, , TOTAL Investment proceeds (Lines 12.1 to 12.7) 45,442, ,429, Cost of investments acquired (long-term only): 13.1 Bonds.. 56,391, ,645, Stocks.. 6,75,98 4,629, Mortgage loans Real estate Other invested assets 13.6 Miscellaneous applications TOTAL Investments acquired (Lines 13.1 to 13.6) ,467, ,274, Net increase (decrease) in contract loans and premium notes Net cash from investments (Line 12.8 minus Line 13.7 minus Line 14)... (17,25,46).. (13,845,154) Cash from Financing and Miscellaneous Sources 16. Cash provided (applied): 16.1 Surplus notes, capital notes Capital and paid in surplus, less treasury stock.. 14,5, 4,, 16.3 Borrowed funds Net deposits on deposit-type contracts and other insurance liabilities Dividends to stockholders 16.6 Other cash provided (applied).. (4,461,51)... (4,998,714) 17. Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)... 1,38,49. (998,714) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) (7,827,769)... (7,239,148) 19. Cash, cash equivalents and short-term investments: 19.1 Beginning of year... 16,89, ,48, End of year (Line 18 plus Line 19.1).. 8,981, ,89,357 Note: Supplemental Disclosures of Cash Flow Information for Non-Cash Transactions: 2.1.

6 6 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 1 - PREMIUMS EARNED Net Unearned Unearned Premiums Premiums Premiums Premiums Earned Written Per Dec. 31 Prior Year - Dec. 31 During Year Column 6, per Column 3, Current Year - per (Columns Line of Business Part 1B Last Year's Part 1 Column 5, Part 1A ) 1. Fire. 2,58,546 1,43,21 2,9,56 2,1, Allied lines.. 21,3,17 9,424, ,279, ,175,9 3. Farmowners multiple peril. 4. Homeowners multiple peril.. 25,714, ,932, ,84, ,562, Commercial multiple peril , , , Mortgage guaranty 8. Ocean marine 9. Inland marine... 49, , , Financial guaranty 11.1 Medical professional liability - occurrence Medical professional liability - claims-made 12. Earthquake Group accident and health 14. Credit accident and health (group and individual) Other accident and health. 16. Workers' compensation Other liability - occurrence.... 1,311, , ,211 1,214, Other liability - claims-made Excess Workers' Compensation Products liability - occurrence Products liability - claims-made Private passenger auto liability Commercial auto liability. 21. Auto physical damage. 22. Aircraft (all perils). 23. Fidelity Surety 26. Burglary and theft. 27. Boiler and machinery Credit. 29. International Warranty Reinsurance-Nonproportional Assumed Property Reinsurance-Nonproportional Assumed Liability Reinsurance-Nonproportional Assumed Financial Lines 34. Aggregate write-ins for other lines of business TOTALS 51,68, ,36, ,355, ,74,297 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 341 through 343 plus 3498) (Line 34 above).

7 7 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 1A - RECAPITULATION OF ALL PREMIUMS Amount Unearned Amount Unearned Reserve for Total (Running One (Running More Rate Credits Reserve Year or Less Than One Year Earned and Retrospective For Unearned From Date From Date But Adjustments Premiums of Policy) of Policy) Unbilled Based on Columns Line of Business (a) (a) Premium Experience Fire... 2,9,56. 2,9,56 2. Allied lines... 15,279, ,279,29 3. Farmowners multiple peril. 4. Homeowners multiple peril ,84, ,84, Commercial multiple peril , ,42 6. Mortgage guaranty 8. Ocean marine. 9. Inland marine 24,672 24, Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made. 12. Earthquake Group accident and health. 14. Credit accident and health (group and individual) Other accident and health. 16. Workers' compensation Other liability - occurrence... 67, , Other liability - claims-made Excess Workers' Compensation Products liability - occurrence Products liability - claims-made Private passenger auto liability Commercial auto liability. 21. Auto physical damage. 22. Aircraft (all perils) Fidelity Surety 26. Burglary and theft. 27. Boiler and machinery Credit. 29. International Warranty Reinsurance-Nonproportional Assumed Property Reinsurance-Nonproportional Assumed Liability 33. Reinsurance-Nonproportional Assumed Financial Lines 34. Aggregate write-ins for other lines of business TOTALS.. 36,355, ,355, Accrued retrospective premiums based on experience Earned but unbilled premiums Balance (Sum of Lines 35 through 37)... 36,355,39 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 341 through 343 plus 3498) (Line 34 above). (a) State here basis of computation used in each case: Daily pro-rata except for policy fees which are 1% earned at inception pursuant to Florida Statutes

8 8 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 1B - PREMIUMS WRITTEN 1 Reinsurance Assumed Reinsurance Ceded Net Premiums Direct Written Business From From To To Columns Line of Business (a) Affiliates Non-Affiliates Affiliates Non-Affiliates Fire.... 7,374, ,88,64.. 5,882,296 2,58, Allied lines... 39,836,787 1,569,534 29,376, ,3,17 3. Farmowners multiple peril Homeowners multiple peril ,484,49.. 5,627,987 51,397, ,714, Commercial multiple peril 69, , , Mortgage guaranty Ocean marine Inland marine. 7,492 21, , Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made 12. Earthquake Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation Other liability - occurrence.. 1,862, ,761 1,311, Other liability - claims-made Excess Workers' Compensation Products liability - occurrence Products liability - claims-made Private passenger auto liability Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery 28. Credit International. 3. Warranty 31. Reinsurance-Nonproportional Assumed Property. X X X Reinsurance-Nonproportional Assumed Liability.. X X X Reinsurance-Nonproportional Assumed Financial Lines... X X X Aggregate write-ins for other lines of business TOTALS. 121,319,793 17,285,585 87,536, ,68,747 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 341 through 343 plus 3498) (Line 34 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 $... (2) Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $...

9 9 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 2 - LOSSES PAID AND INCURRED Losses Paid Less Salvage Net Losses Losses Percentage of Net Unpaid Net Incurred Losses Incurred Payments Current Year Losses Current Year (Column 7, Part 2) Direct Reinsurance Reinsurance (Columns (Part 2A, Unpaid (Columns to Premiums Earned Line of Business Business Assumed Recovered ) Column 8) Prior Year ) (Column 4, Part 1) 1. Fire. 1,23, , ,87. 1,86,127. 1,326, ,82. 1,468, Allied lines... 6,381,1. 2,37,462. 1,686,62. 6,731,942. 8,23,894. 5,491,254. 9,264, Farmowners multiple peril 4. Homeowners multiple peril 15,282,834. 4,51,915. 3,733,733 15,61,16 16,852,974 12,628,253 19,825, Commercial multiple peril... 27, , Mortgage guaranty.. 8. Ocean marine.. 9. Inland marine Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made. 12. Earthquake 13. Group accident and health Credit accident and health (group and individual) Other accident and health 16. Workers' compensation Other liability - occurrence , , , , , , Other liability - claims-made Excess Workers' Compensation Products liability - occurrence Products liability - claims made Private passenger auto liability Commercial auto liability 21. Auto physical damage Aircraft (all perils) Fidelity 24. Surety. 26. Burglary and theft Boiler and machinery 28. Credit. 29. International Warranty Reinsurance-Nonproportional Assumed Property Reinsurance-Nonproportional Assumed Liability 33. Reinsurance-Nonproportional Assumed Financial Lines Aggregate write-ins for other lines of business TOTALS. 23,2,99. 6,243,864. 5,788,31 23,656,823 26,517,385 19,233,255 3,94, DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 341 through 343 plus 3498) (Line 34 above)....

10 1 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 2A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported Net Losses Excluding Net Net Deduct Incurred But Not Losses Unpaid Unpaid Loss Reinsurance Reinsurance Reported Reinsurance Reinsurance (Columns Adjustment Line of Business Direct Assumed Recoverable (Columns ) Direct Assumed Ceded ) Expenses 1. Fire. 783, , , , ,517 54, ,4. 1,326, , Allied Lines.... 4,78,422. 1,571,877. 1,78,885. 4,571,414. 4,29, ,69. 1,29,273. 8,23,894. 2,939, Farmowners multiple peril Homeowners multiple peril. 11,46,643. 2,768,423. 2,89,58 11,339,8. 6,9, ,37. 2,44,87 16,852,974. 3,384, Commercial multiple peril... 23,.... 6,9 16,1 25,... 13,5 27,6. 5,11 6. Mortgage guaranty.. 8. Ocean marine.. 9. Inland marine Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made. 12. Earthquake 13. Group accident & health (a) Credit accident & health (group & individual) Other accident & health. (a) Workers' compensation Other liability - occurrence. 198, , , , , , , Other liability - claims-made Excess Workers' Compensation Products liability - occurrence 18.2 Products liability - claims-made Private passenger auto liability Commercial auto liability 21. Auto physical damage Aircraft (all perils) Fidelity 24. Surety. 26. Burglary and theft Boiler and machinery Credit. 29. International Warranty Reinsurance-Nonproportional Assumed Property Reinsurance-Nonproportional Assumed Liability Reinsurance-Nonproportional Assumed Financial Lines Aggregate write-ins for other lines of business TOTALS... 16,543,966. 4,459,485. 4,21,725 16,792,726 11,926,134. 1,425,841. 3,627,316 26,517,385. 6,969,51 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 341 through 343 plus 3498) (Line 34 above)... (a) Including $... for present value of life indemnity claims.

11 11 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART 3 - EXPENSES Loss Other Adjustment Underwriting Investment Expenses Expenses Expenses Total 1. Claim adjustment services: 1.1 Direct.. 1,418,79 1,418, Reinsurance assumed.. 1,329,992. 1,329, Reinsurance ceded. 2,822,715. 2,822, Net claim adjustment services ( )... 8,925,356. 8,925, Commission and brokerage: 2.1 Direct, excluding contingent... 13,58, ,58, Reinsurance assumed, excluding contingent... 1,37, ,37, Reinsurance ceded, excluding contingent. 25,969, ,969, Contingent - direct... 4,. 4, 2.5 Contingent - reinsurance assumed 2.6 Contingent - reinsurance ceded Policy and membership fees... 1,578, ,578, Net commission and brokerage ( ) (9,895,94). (9,895,94) 3. Allowances to manager and agents Advertising. 12,44. 12,44 5. Boards, bureaus and associations 12, , , Surveys and underwriting reports.. 187, , , Audit of assureds' records Salary and related items: 8.1 Salaries 2,45,388 8,326, ,371, Payroll taxes.. 138, , , Employee relations and welfare ,458 1,459, ,817, Insurance. 44, , , Directors' fees 122, ,4. 622, Travel and travel items 99, , , Rent and rent items... 11, , , Equipment , , ,23, Cost or depreciation of EDP equipment and software , , , Printing and stationery. 5, , , Postage, telephone and telegraph, exchange and express. 16, , , Legal and auditing 68,469 2,477, ,541 3,25, TOTALS (Lines 3 to 18) 4,235, ,36, , ,714, Taxes, licenses and fees: 2.1 State and local insurance taxes deducting guaranty association credits of $.... 1,426, ,426, Insurance department licenses and fees... 99, , Gross guaranty association assessments. 2.4 All other (excluding federal and foreign income and real estate)... (52,62) (52,62) 2.5 TOTAL taxes, licenses and fees ( ) 1,473, ,473, Real estate expenses 18, , Real estate taxes.. 3, , Reimbursements by uninsured plans. 24. Aggregate write-ins for miscellaneous expenses TOTAL expenses incurred 13,16,369 8,959, ,541 (a) 22,239, Less unpaid expenses - current year.... 6,969,51 2,68, ,677 9,59, Add unpaid expenses - prior year... 5,362,424 2,48,58. 9,676 7,42, Amounts receivable relating to uninsured plans, prior year 29. Amounts receivable relating to uninsured plans, current year.. 3. TOTAL EXPENSES PAID (Lines )... 11,553,291 8,399, , ,69,584 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 24 from overflow page TOTALS (Lines 241 through 243 plus 2498) (Line 24 above).... (a) Includes management fees of $... to affiliates and $... to non-affiliates.

12 12 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company EXHIBIT OF NET INVESTMENT INCOME 1 2 Collected Earned During Year During Year 1. U.S. Government bonds (a) , , Bonds exempt from U.S. tax (a) Other bonds (unaffiliated)... (a) , , Bonds of affiliates.. (a) Preferred stocks (unaffiliated)... (b) , , Preferred stocks of affiliates (b) Common stocks (unaffiliated) Common stocks of affiliates. 3. Mortgage loans (c).. 4. Real estate (d).. 5. Contract loans 133, , Cash, cash equivalents and short-term investments. (e). 17, , Derivative instruments.. (f) Other invested assets Aggregate write-ins for investment income TOTAL Gross investment income... 1,756,817 1,839,2 11. Investment expenses... (g) , Investment taxes, licenses and fees, excluding federal income taxes. (g) Interest expense.... (h) Depreciation on real estate and other invested assets.... (i) 15. Aggregate write-ins for deductions from investment income 16. TOTAL Deductions (Lines 11 through 15).. 119, Net Investment income (Line 1 minus Line 16). 1,719,479 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page 999. TOTALS (Lines 91 through 93 plus 998) (Line 9 above) Summary of remaining write-ins for Line 15 from overflow page TOTALS (Lines 151 through 153 plus 1598) (Line 15 above) (a) Includes $...28,625 accrual of discount less $...713,694 amortization of premium and less $...219,737 paid for accrued interest on purchases. (b) Includes $...4 accrual of discount less $...1,412 amortization of premium and less $... paid for accrued dividends on purchases. (c) Includes $... accrual of discount less $... amortization of premium and less $... paid for accrued interest on purchases. (d) Includes $... for company's occupancy of its own buildings; and excludes $... interest on encumbrances. (e) Includes $... accrual of discount less $...1,784 amortization of premium and less $...4,58 paid for accrued interest on purchases. (f) Includes $... accrual of discount less $... amortization of premium. (g) Includes $... investment expenses and $... investment taxes, licenses and fees, excluding federal income taxes, attributable to segregated and Separate Accounts. (h) Includes $... interest on surplus notes and $... interest on capital notes. (i) Includes $... depreciation on real estate and $... depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) Total Realized Change in Realized Gain Capital Gain Change in Unrealized Foreign (Loss) on Sales Other Realized (Loss) Unrealized Capital Exchange Capital or Maturity Adjustments (Columns 1 + 2) Gain (Loss) Gain (Loss) 1. U.S. Government bonds.. 88,94. 88, Bonds exempt from U.S. tax Other bonds (unaffiliated) , , Bonds of affiliates. 2.1 Preferred stocks (unaffiliated). 35, ,646 (269,883) Preferred stocks of affiliates Common stocks (unaffiliated) Common stocks of affiliates Mortgage loans Real estate Contract loans 6. Cash, cash equivalents and short-term investments 7. Derivative instruments 8. Other invested assets. 9. Aggregate write-ins for capital gains (losses) TOTAL Capital gains (losses) , ,762 (269,883).. DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page TOTALS (Lines 91 through 93 plus 998) (Line 9 above)..

13 13 ANNUAL STATEMENT FOR THE YEAR OF THE 216 Safepoint Insurance Company EXHIBIT OF NONADMITTED ASSETS Change in Total Current Year Total Prior Year Total Nonadmitted Assets Nonadmitted Assets Nonadmitted Assets (Col. 2 - Col. 1) 1. Bonds (Schedule D) Stocks (Schedule D): 2.1 Preferred stocks Common stocks 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 Properties held for the production of income 4.3 Properties held for sale 5. Cash (Schedule E-Part 1), cash equivalents (Schedule E-Part 2) and short-term investments (Schedule DA) 6. Contract loans. 7. Derivatives (Schedule DB). 8. Other invested assets (Schedule BA) Receivables for securities.. 1. Securities lending reinvested collateral assets (Schedule DL) Aggregate write-ins for invested assets. 12. Subtotals, cash and invested assets (Lines 1 to 11). 13. Title plants (for Title insurers only) Invested income due and accrued Premium and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection Deferred premiums, agents' balances and installments booked but deferred and not yet due 15.3 Accrued retrospective premiums and contracts subject to redetermination Reinsurance: 16.1 Amounts recoverable from reinsurers 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 Guaranty funds receivable or on deposit 2. Electronic data processing equipment and software. 55, , (1,75) 21. Furniture and equipment, including health care delivery assets Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates. 24. Health care and other amounts receivable Aggregate write-ins for other than invested assets TOTAL Assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25).. 55, , (1,75) 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts TOTAL (Lines 26 and 27).. 55, , (1,75) DETAILS OF WRITE-INS Summary of remaining write-ins for Line 11 from overflow page TOTALS (Lines 111 through 113 plus 1198) (Line 11 above) Summary of remaining write-ins for Line 25 from overflow page TOTALS (Lines 251 through 253 plus 2598) (Line 25 above)..

14 ANNUAL STATEMENT FOR THE YEAR 216 OF THE Safepoint Insurance Company Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies and Going Concern A. Accounting Practices The accompanying financial statements of Safepoint Insurance Company (the Company) have been prepared in accordance with the NAIC Accounting Practices and Procedures manual except to the extent it differs from the accounting practices prescribed or permitted by the Florida Department of Financial Services. The Florida Department of Financial Services requires insurance companies domiciled in the State of Florida to prepare their statutory financial statements in accordance with the NAIC Accounting Practices and Procedures Manual as of March 22 and subsequent amendments thereto, subject to any deviations prescribed or permitted by the Florida Department of Financial Services. State of Domicile NET INCOME (1) Safepoint Insurance Company state basis (2) State Prescribed Practices: NONE (3) State Permitted Practices: NONE (4) NAIC SAP SURPLUS (5) (6) (7) (8) Safepoint Insurance Company state basis State Prescribed Practices: NONE State Permitted Practices: NONE NAIC SAP FL FL FL FL (7,24,281) (7,24,281) 9,159,754 9,159,754 49,673,579 49,673,579 41,744,588 41,744,588 B. Use of Estimates in the Preparation of the Financial Statements The preparation of financial statements in conformity with Statutory Accounting Principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and notes. Actual results could differ from those estimates. C. Accounting Policies Premiums are ratably earned over the term of the related insurance policies and reinsurance contracts. Unearned premium reserves are established to cover the unexpired portion of premiums written. Such reserves are computed by pro rata methods for direct business and ceded reinsurance, and are based on reports received from ceding companies for assumed reinsurance. Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as commissions and service company fees, are charged to operations as incurred. Expenses incurred are reduced for ceding allowances received or receivable. Net investment income earned consists primarily of interest and dividends less investment related expense. Interest is recognized on an accrual basis and dividends are recognized on an ex-dividend basis. Net realized capital gains (losses) are recognized on a specific identification basis when securities are sold, redeemed or otherwise disposed of. Realized capital losses include write-downs for impairments considered to be other than temporary. The Company purchased an office building in June of 214 which is classified as property occupied by the company and carried at depreciated cost less encumbrances. In addition, the Company uses the following accounting policies: 1. Short term investments are stated at amortized value using the interest method. Non-investment grade short-term investments are stated at the lower of amortized value or fair value. 2. Bonds are stated at amortized cost using the interest method. Non-investment grade bonds with NAIC designations of 3 through 6 are stated at the lower of amortized value or fair value. 3. Common stocks are stated at fair value. 4. Investment grade redeemable preferred stocks are stated at amortized value. Investment grade perpetual preferred stocks are stated at fair value. Non-investment grade preferred stocks are stated at the lower of amortized value or fair value. 5. Mortgage loans Not applicable 6. Investment grade loan-backed securities are stated at amortized value. The retrospective adjustment method is used to value all loan-backed securities. Non-investment grade loan-backed securities are stated at the lower of amortized value or fair value. 7. Investment in subsidiaries, controlled and affiliated companies Not applicable 8. Investments in joint ventures, partnerships and limited liability companies Not applicable 9. Any premium paid or received on derivatives - Not applicable 1. The Company does not anticipate investment income as a factor in premium deficiency calculations. 11. Unpaid losses and loss adjustment expenses include an amount determined from individual case estimates and loss reports, and an amount, based on projections, for losses incurred but not reported. Such liabilities are based on assumptions and estimates and while management believes the amount is adequate, the ultimate liability may be in excess of or less than the amount provided. The methods for making such estimates and for establishing the resulting liability is continually reviewed and any adjustments are reflected in the period determined. 12. The Company has a written capitalization policy for prepaid expenses and purchases of items such as electronic data processing equipment, software, furniture, vehicles, other equipment and leasehold improvements. The predefined threshold for this policy is all individual items with a cost of less than $5, are expensed when purchased. Individual items with a cost of greater than $5, are capitalized and depreciated/amortized on a straight line basis over the useful life of the asset. The predefined capitalization threshold under this policy has not changed from those of the prior year. 13. Pharmaceutical rebate receivables Not applicable D. Going Concern Based on management s evaluation there is no substantial doubt regarding the Company s ability to continue as a going concern. 14

15 ANNUAL STATEMENT FOR THE YEAR 216 OF THE Safepoint Insurance Company Notes to Financial Statements Note 2 Accounting Changes and Correction of Errors A. Material changes in accounting principles and/or correction of errors - Not applicable. Note 3 Business Combinations and Goodwill Not applicable Note 4 Discontinued Operations Not applicable Note 5 Investments A. Mortgage Loans Not applicable B. Debt Restructuring Not applicable C. Reverse Mortgages Not applicable D. Loan-Backed and Structured Securities 1. Prepayment assumptions for loan-backed securities were obtained from broker dealer values. The Company did not hold any Structured securities in The Company had no other-than-temporary impairments for loan-backed securities recorded as of December 31, The Company had no other-than-temporary impairments for loan-backed securities held at December 31, Description a. The aggregate amount of unrealized losses: 1. Less than 12 Months Months or Longer b. The aggregate related fair value of securities with unrealized losses: 1. Less than 12 Months Months or Longer 5. E. Amount $ $ 227,189 2,278 $ 13,438,665 $ 282,168 Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (a) the length of time and the extent to which the fair value has been less than cost, (b) the financial condition and near-term prospects of the issuer, and (c) the intent and ability of the Company to hold its investment in the issuer for a period of time sufficient to allow for any anticipated recovery value. Repurchase Agreements and/or Securities Lending Transactions 1. Repurchase Agreements Not applicable 2. Assets pledged as collateral Not applicable 3. Collateral accepted Not applicable F. Writedowns for Impairments of Real Estate, Real Estate Sales, Retail Land Sales Operations and Real Estate with Participating Mortgage Loan Features Not applicable G. Low-income Housing Tax Credits (LIHTC) Not applicable 14. 1

16 ANNUAL STATEMENT FOR THE YEAR 216 OF THE Safepoint Insurance Company Notes to Financial Statements H. Restricted Assets Gross (Admitted & Nonadmitted) Restricted Current Year G/A Supporting Protected Cell Protected Cell Total Protected Account Assets Restricted Asset Category Total General Account (G/A) Account Activity (a) Cell Account Restricted Assets Supporting G/A Activity (b) Total (1 plus 3) Total From Prior Year Increase/ (Decrease) (5 minus 6) a. Subject to contractual obligation for which liability is not shown $ $ $ $.. $ $ $ b. Collateral held under security lending agreements.. c. Subject to repurchase agreements.. d. Subject to reverse repurchase agreements.. e. Subject to dollar repurchase agreements.. f. Subject to dollar reverse repurchase agreements.. g. Placed under option contracts.. h. Letter stock or securities restricted as to sale excluding FHLB capital stock.. i. FHLB capital stock.. j. On deposit with states 62, ,152 5, 12,152 k. On deposit with other regulatory bodies.. l. Pledged as collateral to FHLB (including assets backing funding agreements).. m. Pledged as collateral not captured in other categories.. n. Other restricted assets.. o. Total Restricted Assets $ 62,152 $ $ $.. $ 62,152 $ 5, $ 12,

17 ANNUAL STATEMENT FOR THE YEAR 216 OF THE Safepoint Insurance Company Notes to Financial Statements Current Year 8 Percentage 1 11 Gross (Admitted & Admitted Total Admitted Nonadmited) Restricted to Total Nonadmitted Restricted Restricted to Total Total Admitted Restricted (5 minus 8) Assets (c) Assets (d) $ $ Restricted Asset Category a. 9 Subject to contractual obligation for which liability is not shown % % stock i. FHLB capital stock j. On deposit with states.4.4 k. On deposit with other b. Collateral held under security lending agreements c. Subject to repurchase agreements d. Subject to reverse repurchase agreements e. Subject to dollar repurchase agreements f. Subject to dollar reverse repurchase agreements g. Placed under option contracts h. Letter stock or securities restricted as to sale excluding FHLB capital regulatory bodies 62,152 categories n. Other restricted assets o. Total Restricted Assets.4%.4% l. Pledged as collateral to FHLB (including assets backing funding agreements) m. Pledged as collateral not captured in other $ $ 62,152 I. Working Capital Finance Investments Not applicable J. Offsetting and Netting of Assets and Liabilities Not applicable K. Structured Notes Not applicable L. 5* Securities Not applicable Note 6 Joint Ventures, Partnerships and Limited Liability Companies Not applicable Note 7 Investment Income A. Due and accrued income was excluded from surplus on the following bases: All investment income due and accrued with amounts that are over 9 days past due with the exception of mortgage loans in default B. The total amount excluded was $. Note 8 Derivative Instruments Not applicable 14.3

18 ANNUAL STATEMENT FOR THE YEAR 216 OF THE Safepoint Insurance Company Notes to Financial Statements Note 9 Income Taxes 14.4

19 ANNUAL STATEMENT FOR THE YEAR 216 OF THE Safepoint Insurance Company Notes to Financial Statements 14.5

20 ANNUAL STATEMENT FOR THE YEAR 216 OF THE Safepoint Insurance Company Notes to Financial Statements Note 1 Information Concerning Parent, Subsidiaries and Affiliates A. Nature of Relationships Safepoint Insurance Company is a wholly owned subsidiary of Safepoint Holdings, Inc. (Parent). During the fourth quarter of 213, Safepoint Holdings, Inc. contributed $2,55, as common capital stock in exchange for 255, shares of $1 par value common stock of the Company. During the third quarter of 216, Safepoint Holdings, Inc. contributed $75, as common capital stock in exchange for 75, shares of $1 par value common stock. Total common capital stock at December 31, 216 is $3,3, for a total of 33, issued shares. During the fourth quarter of 213, Safepoint Holdings, Inc. contributed $22,45, as gross paid in and contributed surplus In March of 215 Safepoint Holdings, Inc. contributed $2,, as gross paid in and contributed surplus. In May of 215 Safepoint Holdings, Inc. contributed $2,, as gross paid in and contributed surplus for a total contribution as gross paid in and contributed surplus in 215 of $4,,. In the third quarter of 216, Safepoint Holdings, Inc. contributed $9,25, as gross paid in and contributed surplus. On December 31, 216 the Company recorded gross paid in and contributed surplus of $4,5, from Safepoint Holdings, Inc. under the guidance of SSAP 72 and the contribution was made in January 217. Total gross paid in and contributed surplus as of December 31, 216 is $4,2,. 14.6