* * PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION

Transcription

1 * * PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER, 06 OF THE CONDITION AND AFFAIRS OF THE SECURITY NATIONAL INSURANCE COMPANY NAIC Group Code 8 8 NAIC Company Code 9879 Employer's ID Number (Current) (Prior) Organized under the Laws of Delaware, State of Domicile or Port of Entry DE Country of Domicile United States of America Incorporated/Organized 07/07/9 Commenced Business 08/0/9 Statutory Home Office 7 Centerville Road, Suite 00, Wilmington, DE, US 9808 (Street Number) (City or Town, State, Country Zip Code) Main Administrative Office LBJ Freeway, Suite 700 (Street Number) Dallas, TX, US 7, (City or Town, State, Country Zip Code) (Area Code) (Telephone Number) Mail Address PO Box 6077, Dallas, TX, US (Street Number or P.O. Box) (City or Town, State, Country Zip Code) Primary Location of Books Records LBJ Freeway, Suite 700 (Street Number) Dallas, TX, US 7, (City or Town, State, Country Zip Code) (Area Code) (Telephone Number) Internet Website Address Statutory Statement Contact Harriet Berenstein, (Name) (Area Code) (Telephone Number) TexasStatutory@amtrustgroup.com, ( Address) (FAX Number) OFFICERS President Jeffrey Paul Leo Treasurer Harry Schlachter Secretary Stephen Barry Ungar OTHER Barry Wolff Moses, Vice President, Asst Secretary Melanie Shae Garrison, Vice President Jeffrey Howard Mayer, Chief Actuary DIRECTORS OR TRUSTEES Donald Thomas DeCarlo Stephen Barry Ungar Susan Carol Fisch # Adam Zev Karkowsky # Harry Schlachter State of County of New York New York SS: The officers of this reporting entity being duly sworn, each depose say that they are the described officers of said reporting entity, that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free clear from any liens or claims thereon, except as herein stated, that this statement, together with related exhibits, schedules explanations therein contained, annexed or referred to, is a full true statement of all the assets liabilities of the condition affairs of the said reporting entity as of the reporting period stated above, of its income deductions therefrom for the period ended, have been completed in accordance with the NAIC Annual Statement Instructions Accounting Practices Procedures manual except to the extent that: () state law may differ; or, () that state rules or regulations require differences in reporting not related to accounting practices procedures, according to the best of their information, knowledge 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. Jeffrey Paul Leo Stephen Barry Ungar Harry Schlachter President Secretary Treasurer a. Is this an original filing? Yes [ X ] No [ ] Subscribed sworn to before me this b. If no, day of. State the amendment number. Date filed. Number of pages attached

2 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company ASSETS Assets Current Year Nonadmitted Assets Net Admitted Assets (Cols. - ) Prior Year Net Admitted Assets. Bonds (Schedule D) 8,7,8 8,7,8 6,,0. Stocks (Schedule D):. Preferred stocks. Common stocks 9,86,6 9,86,6,97,. Mortgage loans on real estate (Schedule B):. First liens. Other than first liens. Real estate (Schedule A):. Properties occupied by the company (less $ encumbrances). Properties held for the production of income (less $ encumbrances). Properties held for sale (less $ encumbrances). Cash ($,9,776, Schedule E - Part ), cash equivalents ($, Schedule E - Part ) short-term investments ($, Schedule DA),9,776,9,776 70,0,7 6. Contract loans (including $ premium notes) 7. Derivatives (Schedule DB) 8. Other invested assets (Schedule BA),80,,80,,60, Receivable for securities, 0. Securities lending reinvested collateral assets (Schedule DL). Aggregate write-ins for invested assets. Subtotals, cash invested assets (Lines to ) 9,,66 9,,66 7,68,778. Title plants less $ charged off (for Title insurers only). Investment income due accrued,960,8,960,8,606,. Premiums considerations:. Uncollected premiums agents' balances in the course of collection 8,,8 6,78,8 7,867,080,990,70. Deferred premiums agents' balances installments booked but deferred not yet due (including $ 6,6,7 earned but unbilled premiums) 0,0,7 0,0,7 88,6,6. Accrued retrospective premiums ($ ) 6. Reinsurance: contracts subject to redetermination ($ ) 6. Amounts recoverable from reinsurers,,68,,68,96,0 6. Funds held by or deposited with reinsured companies 6. Other amounts receivable under reinsurance contracts 0, 0, (,07) 7. Amounts receivable relating to uninsured plans 8. Current federal foreign income tax recoverable interest thereon 8. Net deferred tax asset,6,69,78,900 0,78,79 9,06, Guaranty funds receivable or on deposit 8, 8,,97 0. Electronic data processing equipment software. Furniture equipment, including health care delivery assets ($ ). Net adjustment in assets liabilities due to foreign exchange rates. Receivables from parent, subsidiaries affiliates. Health care ($ ) other amounts receivable. Aggregate write-ins for other than invested assets 6. Total assets excluding Separate Accounts, Segregated Accounts Protected Cell Accounts (Lines to ),,7, 9,87,8,0,877,99 99,,87 7. From Separate Accounts, Segregated Accounts Protected Cell Accounts 8. Total (Lines 6 7),,7, 9,87,8,0,877,99 99,, DETAILS OF WRITE-INS 98. Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above)

3 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company LIABILITIES, SURPLUS AND OTHER FUNDS Current Year Prior Year. Losses (Part A, Line, Column 8),07,8 8,78,67. Reinsurance payable on paid losses loss adjustment expenses (Schedule F, Part, Column 6),0 8,78. Loss adjustment expenses (Part A, Line, Column 9),800,9 9,98,80. Commissions payable, contingent commissions other similar charges 6,,9 6,7,0. Other expenses (excluding taxes, licenses fees) (,89,8) (9,69,898) 6. Taxes, licenses fees (excluding federal foreign income taxes),7,0,9,0 7. Current federal foreign income taxes (including $ on realized capital gains (losses)),6, 7,86,8 7. Net deferred tax liability 8. Borrowed money $ interest thereon $ 9. Unearned premiums (Part A, Line 8, Column ) (after deducting unearned premiums for ceded reinsurance of $,60,8 including warranty reserves of $,9,67 accrued accident health experience rating refunds including $ for medical loss ratio rebate per the Public Health Service Act) 9,7,7 60,9,0 0. Advance premium 0,66,79 0,798,67. Dividends declared unpaid:. Stockholders. Policyholders,0,8,6,6. reinsurance premiums payable (net of ceding commissions),0, 8,968,0. Funds held by company under reinsurance treaties (Schedule F, Part, Column 9) 70,97, 6,,90. Amounts withheld or retained by company for account of others. Remittances items not allocated 6. Provision for reinsurance (including $ certified) (Schedule F, Part 8),07 7. Net adjustments in assets liabilities due to foreign exchange rates 8. Drafts outsting 9. Payable to parent, subsidiaries affiliates 0,08,89 86, 0. Derivatives. Payable for securities. Payable for securities lending. Liability for amounts held under uninsured plans. Capital notes $ interest thereon $. Aggregate write-ins for liabilities (,976,796),68,9 6. Total liabilities excluding protected cell liabilities (Lines through ) 987,76,0 8,880,07 7. Protected cell liabilities 8. Total liabilities (Lines 6 7) 987,76,0 8,880,07 9. Aggregate write-ins for special surplus funds 0. Common capital stock,000,000,000,000. Preferred capital stock. Aggregate write-ins for other than special surplus funds. Surplus notes. Gross paid in contributed surplus 68,007,6 68,007,6. Unassigned funds (surplus),,78 76,,7 6. Less treasury stock, at cost: 6. shares common (value included in Line 0 $ ) 6. shares preferred (value included in Line $ ) 7. Surplus as regards policyholders (Lines 9 to, less 6) (Page, Line 9) 7,6,79 9,,7 8. TOTALS (Page, Line 8, Col. ),0,877,99 99,,88 DETAILS OF WRITE-INS 0. Surcharges Payable (,976,796),0,90 0. Deferred Ceding Commission,6, Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) (,976,796),68, Summary of remaining write-ins for Line 9 from overflow page 999. Totals (Lines 90 thru 90 plus 998)(Line 9 above) Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above)

4 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company STATEMENT OF INCOME Current Year UNDERWRITING INCOME Prior Year. Premiums earned (Part, Line, Column ) 96,97,88 09,67,9 DEDUCTIONS:. Losses incurred (Part, Line, Column 7) 7,97,7,77,907. Loss adjustment expenses incurred (Part, Line, Column ) 0,70,668,78,890. Other underwriting expenses incurred (Part, Line, Column ),0,67 (,86,8). Aggregate write-ins for underwriting deductions 6. Total underwriting deductions (Lines through ) 9,70,78,866,9 7. Net income of protected cells 8. Net underwriting gain or (loss) (Line minus Line 6 plus Line 7) 7,70,00,00,9 INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line 7) 0,,770 6,7,8 0. Net realized capital gains or (losses) less capital gains tax of $ 990,989 (Exhibit of Capital Gains (Losses) ),80,08 8,66. Net investment gain (loss) (Lines 9 + 0),76,78 6,69,9 OTHER INCOME. Net gain (loss) from agents or premium balances charged off (amount recovered $,0 amount charged off $ 9,9 ) (88,789) 9,8. Finance service charges not included in premiums 77,09,79. Aggregate write-ins for miscellaneous income. Total other income (Lines through ) (,80) 7, Net income before dividends to policyholders, after capital gains tax before all other federal foreign income taxes (Lines ) 69,,908 70,66,00 7. Dividends to policyholders,7,86,7, 8. Net income, after dividends to policyholders, after capital gains tax before all other federal foreign income taxes (Line 6 minus Line 7) 67,80,07 68,8,8 9. Federal foreign income taxes incurred,976,78 8,,90 0. Net income (Line 8 minus Line 9)(to Line ),0,6 0,7, CAPITAL AND SURPLUS ACCOUNT. Surplus as regards policyholders, December prior year (Page, Line 9, Column ) 9,,7,7,9. Net income (from Line 0),0,6 0,7,. Net transfers (to) from Protected Cell accounts. Change in net unrealized capital gains or (losses) less capital gains tax of $,79,0,0,80. Change in net unrealized foreign exchange capital gain (loss) 6. Change in net deferred income tax 6,7,,9,8 7. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 8, Col. ) (,008,7) (,7,60) 8. Change in provision for reinsurance (Page, Line 6, Column minus Column ),06 8, Change in surplus notes 0. Surplus (contributed to) withdrawn from protected cells. Cumulative effect of changes in accounting principles,6,6. Capital changes:. Paid in. Transferred from surplus (Stock Dividend). Transferred to surplus. Surplus adjustments:. Paid in. Transferred to capital (Stock Dividend). Transferred from capital. Net remittances from or (to) Home Office. Dividends to stockholders 6. Change in treasury stock (Page, Lines 6. 6., Column minus Column ) 7. Aggregate write-ins for gains losses in surplus 8. Change in surplus as regards policyholders for the year (Lines through 7) 67,60,0,807,9 9. Surplus as regards policyholders, December current year (Line plus Line 8) (Page, Line 7) 7,6,79 9,, DETAILS OF WRITE-INS 098. Summary of remaining write-ins for Line from overflow page 099. Totals (Lines 00 thru 00 plus 098)(Line above) Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) Summary of remaining write-ins for Line 7 from overflow page 799. Totals (Lines 70 thru 70 plus 798)(Line 7 above)

5 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company CASH FLOW Current Year Prior Year Cash from Operations. Premiums collected net of reinsurance,979,76 9,98,60. Net investment income 0,70,66 6,9,66. Miscellaneous income (,80) 7,007. Total (Lines through ) 6,70,8,08,08. Benefit loss related payments,0,00,770, 6. Net transfers to Separate Accounts, Segregated Accounts Protected Cell Accounts 7. Commissions, expenses paid aggregate write-ins for deductions 80,688,988 (7,80,67) 8. Dividends paid to policyholders 98,6,0 9. Federal foreign income taxes paid (recovered) net of $ tax on capital gains (losses),97,9 6,67, 0. Total (Lines through 9) 69,6,,7,0. Net cash from operations (Line minus Line 0) 87,,99 08,76, Cash from Investments. Proceeds from investments sold, matured or repaid:. Bonds 90,80,8 0,906,9. Stocks. Mortgage loans. Real estate. Other invested assets 8,8.6 Net gains or (losses) on cash, cash equivalents short-term investments, Miscellaneous proceeds,.8 Total investment proceeds (Lines. to.7) 90,9,7 0,906,. Cost of investments acquired (long-term only):. Bonds 8,06,60 76,869,809. Stocks,90,87. Mortgage loans. Real estate. Other invested assets 900,000,89,6.6 Miscellaneous applications,.7 Total investments acquired (Lines. to.6) 8,96,60,68,09. Net increase (decrease) in contract loans premium notes. Net cash from investments (Line.8 minus Line.7 minus Line ) (9,09,6) (09,77,67) Cash from Financing Miscellaneous Sources 6. Cash provided (applied): 6. Surplus notes, capital notes 6. Capital paid in surplus, less treasury stock 6. Borrowed funds 6. Net deposits on deposit-type contracts other insurance liabilities 6. Dividends to stockholders 6.6 Other cash provided (applied) 80,69,08,,0 7. Net cash from financing miscellaneous sources (Lines 6. to 6. minus Line 6. plus Line 6.6) 80,69,08,,0 RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8. Net change in cash, cash equivalents short-term investments (Line, plus Lines 7) (6,7,799),0, Cash, cash equivalents short-term investments: 9. Beginning of year 70,0,7 6,7, End of period (Line 8 plus Line 9.),9,776 70,0,7 Note: Supplemental disclosures of cash flow information for non-cash transactions:

6 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT Line of Business PART - PREMIUMS EARNED Net Premiums Written per Column 6, Part B Unearned Premiums Dec. Prior Year - per Col., Last Year s Part Unearned Premiums Dec. Current Year - per Col. Part A Premiums Earned During Year (Cols. + - ). Fire 9,96 0,76 86, 888,88. Allied lines,,6 9,09 60,77,0,98. Farmowners multiple peril. Homeowners multiple peril. Commercial multiple peril,99,77,08,,8,88,69, 6. Mortgage guaranty 8. Ocean marine 9. Inl marine 77,8 0,89,8 6,6 0. Financial guaranty. Medical professional liability - occurrence. Medical professional liability - claims-made. Earthquake,9 8,6,,6. Group accident health. Credit accident health (group individual). Other accident health 6. Workers' compensation 6,99,7 9,9,7 9,69,78,9,6 7. Other liability - occurrence 6,86,670 9,9,0,88,6,8,8 7. Other liability - claims-made 7. Excess workers' compensation,06,06,9,0,898,7 0,0, 8. Products liability - occurrence,77,86 6,79 67,969,86,66 8. Products liability - claims-made 9., 9. Private passenger auto liability 9., 9. Commercial auto liability,89,90,0,79,78,70 8,97,98. Auto physical damage,76,6,68,09,66,8,. Aircraft (all perils). Fidelity,96,07 98,77,7,8,8,799. Surety 7, 8,99 0,868 9,6 6. Burglary theft 07,6 6,8 7,608 96,0 7. Boiler machinery, (899) (86),8 8. Credit 8,879 8, International 0. Warranty 6,9,0,7,9,67 6,0. Reinsurance - nonproportional assumed property. Reinsurance - nonproportional assumed liability. Reinsurance - nonproportional assumed financial lines. Aggregate write-ins for other lines of business. TOTALS 8,9,07 60,9,0 9,7,7 96,97, DETAILS OF WRITE-INS 98. Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) 6

7 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT Line of Business PART A - RECAPITULATION OF ALL PREMIUMS Amount Unearned (Running One Year or Less from Date of Policy) (a) Amount Unearned (Running More Than One Year from Date of Policy) (a) Earned But Unbilled Premium Reserve for Rate Credits Retrospective Adjustments Based on Experience Total Reserve for Unearned Premiums Cols Fire 86, 86,. Allied lines 60,77 60,77. Farmowners multiple peril. Homeowners multiple peril. Commercial multiple peril,8,88,8,88 6. Mortgage guaranty 8. Ocean marine 9. Inl marine,8,8 0. Financial guaranty. Medical professional liability - occurrence. Medical professional liability - claims-made. Earthquake,,. Group accident health. Credit accident health (group individual). Other accident health 6. Workers' compensation 9,69,78 9,69,78 7. Other liability - occurrence,88,6,88,6 7. Other liability - claims-made 7. Excess workers' compensation,898,7,898,7 8. Products liability - occurrence 67,969 67, Products liability - claims-made 9., 9. Private passenger auto liability 9., 9. Commercial auto liability,78,70,78,70. Auto physical damage,09,66,09,66. Aircraft (all perils). Fidelity,7,8,7,8. Surety 0,868 0, Burglary theft 7,608 7, Boiler machinery (86) (86) 8. Credit 9. International 0. Warranty 89, 98,,9,67. Reinsurance - nonproportional assumed property. Reinsurance - nonproportional assumed liability. Reinsurance - nonproportional assumed financial lines. Aggregate write-ins for other lines of business. TOTALS 9,7,9 98, 9,7,7 6. Accrued retrospective premiums based on experience 7. Earned but unbilled premiums 8. Balance (Sum of Line through 7) 9,7, DETAILS OF WRITE-INS 98. Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) (a) State here basis of computation used in each case Daily Pro Rata 7

8 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART B - PREMIUMS WRITTEN Line of Business Reinsurance Reinsurance 6 Net Premiums Written Business (a) From Affiliates From Non-Affiliates To Affiliates To Non-Affiliates Cols Fire,67,68,9,76 8,96 9,96. Allied lines,66,,, ,9,,6. Farmowners multiple peril. Homeowners multiple peril. Commercial multiple peril,676,7 9,06,7,60,06,99,77 6. Mortgage guaranty 8. Ocean marine 9. Inl marine,87,097,7,90 7,07 77,8 0. Financial guaranty. Medical professional liability - occurrence. Medical professional liability - claims-made. Earthquake 8,67 6, 9,98,9. Group accident health. Credit accident health (group individual). Other accident health 6. Workers' compensation 608,89,988,8,00 08,97,89 8,96,08 6,99,7 7. Other liability - occurrence 98,069,979 6,0,80 7,8,0 6,86, Other liability - claims-made 7. Excess workers' compensation 0,960,6 8,9,0,06,06 8. Products liability - occurrence,0,699,9,7 0,69,77,86 8. Products liability - claims-made 9., 9. Private passenger auto liability 9., 9. Commercial auto liability 0,0,9 9,9 8,08,0 7,,89,90. Auto physical damage 8,7,7,86,0 9,66,76,6. Aircraft (all perils). Fidelity 6,96,7,,89 6,788,96,07. Surety 96,77 79, 7, 6. Burglary theft 6,87,9 07,6 7. Boiler machinery 6,097 9,,9, 8. Credit 88,786 79,907 8, International 0. Warranty,,,980,98,68,9 6,9. 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 87,7,778 7,6,90 6,60,7 0,68, 8,9, DETAILS OF WRITE-INS 98. Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) (a) Does the company's direct premiums written include premiums recorded on an installment basis? Yes [ ] No [ X ] If yes:. The amount of such installment premiums $. Amount at which such installment premiums would have been reported had they been reported on an annualized basis $ 8

9 9 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART - LOSSES PAID AND INCURRED Losses Paid Less Salvage Net Losses Unpaid Current Year (Part A, Col. 8) Losses Incurred Current Year (Cols ) Percentage of Losses Incurred (Col. 7, Part ) to Premiums Earned (Col., Part ) Reinsurance Reinsurance Net Payments Net Losses Unpaid Line of Business Business Recovered (Cols. + - ) Prior Year. Fire,06,698,000,8 06,6 8,98,98, Allied lines,,,6,89 79,6 80,7 66,7 9, Farmowners multiple peril,00 7,88 (,8). Homeowners multiple peril. Commercial multiple peril,66,996,6,879 9,7,69,0 90,7,668, Mortgage guaranty 8. Ocean marine 9. Inl marine 6,706 0,06,670 6,9,668 7, Financial guaranty. Medical professional liability - occurrence. Medical professional liability - claims-made. Earthquake 8,000 7, Group accident health. Credit accident health (group individual). Other accident health 6. Workers' compensation 6,6,79 80,0 9,,96,6,80 7,8,99,98,97 0,069, Other liability - occurrence 7,6,7,89,00,77,6 8,0,08,, 9,69, Other liability - claims-made 7. Excess workers' compensation 9,66,9 6,0,9,96,69,88,097 6,9,76,9, Products liability - occurrence 0,66,60 9,079,,7,76,80,,,9,0, Products liability - claims-made 9., 9. Private passenger auto liability (,0) (,0) 9., 9. Commercial auto liability 6,8,779 8,8,787,90,, 7,6,98,88,76 7,, Auto physical damage 6,7,8,9,,7,78 60,97,8,960, Aircraft (all perils). Fidelity 6,796,77 6,,08 67,6 67,9 8,0 0,8.7. Surety 8,89, (,7) (.6) 6. Burglary theft,0 8,07 (,7) (.9) 7. Boiler machinery,98,86 0, 800, Credit 9,0 8,80 9,0 6,69 7,9 8, International 0. Warranty 0,7,,09,8,7,6,66 7,9 7,8.9. 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 8,86,67,080,8,669, 9,7,6,07,8 8,78,67 69,6,00. DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above)

10 0 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported Deduct Reinsurance Recoverable Net Losses Excl. Incurred But Not Reported (Cols. + - ) Net Unpaid Loss Adjustment Expenses Reinsurance Reinsurance Reinsurance Net Losses Unpaid Line of Business (Cols ). Fire 7, 6,,89 07,08 7,069 8,98 8,. Allied lines,60,888,07,896 77,99,69,,0,970 80,7 6,0. Farmowners multiple peril,000,000 9,00,00,00,699. Homeowners multiple peril. Commercial multiple peril 7,,8,98,808,,0 6,67,88,0,90,69,0 80,86 6. Mortgage guaranty 8. Ocean marine 9. Inl marine 9,7 0,8 89, 69,660,97 6,9 7,08 0. Financial guaranty. Medical professional liability - occurrence. Medical professional liability - claims-made. Earthquake,8,8 8, Group accident health (a). Credit accident health (group individual). Other accident health (a) 6. Workers' compensation,7,08,09,89 87,6,9,99,78 6,0,6,6,6,979,07 7,8,99,66,6 7. Other liability - occurrence 9,67,,,70,,7 80,79, 66,86,07 8,0,08,68,0 7. Other liability - claims-made 7. Excess workers' compensation,880,97 8,9,877,88,097,9,8 8. Products liability - occurrence,090,0 9,68,77,,,67,8,86,79,80, 9,89 8. Products liability - claims-made 9., 9. Private passenger auto liability 9., 9. Commercial auto liability 0,0,999 0,8 6,7,00,, 0,00,787,78,7,69 7,6,98 7,6. Auto physical damage,,896,08,9 8,77,,9,07,7 60,97,9. Aircraft (all perils). Fidelity 8,779 69,97,86,70,867,06,778 67,9 06,9. Surety 77,906 9,0 8, Burglary theft ,69 8,7,0 (,0) 7. Boiler machinery,000,000,000 7,6 6,0, Credit 66,96 60,6 6,69,7 9. International 0. Warranty,88 99,,8,79,, 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 96,06,8,67,89 0,78,97 6,9,0,7,08,76,8 79,70,,07,8,800,9 DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) (a) Including $ for present value of life indemnity claims.

11 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART - EXPENSES. Claim adjustment services: Loss Adjustment Expenses Other Underwriting Expenses Investment Expenses. 9,08,6 9,08,6. Reinsurance assumed 9,0 9,0. Reinsurance ceded 7,00, 7,00,. Net claim adjustment service ( ) 9,0,7 9,0,7. Commission brokerage:. excluding contingent,60,008,60,008. Reinsurance assumed, excluding contingent,96,7,96,7. Reinsurance ceded, excluding contingent 07,77, 07,77,. Contingent - direct,099,878,099,878. Contingent - reinsurance assumed 6,8 6,8.6 Contingent - reinsurance ceded,0,98,0,98.7 Policy membership fees.8 Net commission brokerage ( ) (89,,087) (89,,087). Allowances to managers agents. Advertising 67,0 67,0. Boards, bureaus associations 99,9 99,9 6. Surveys underwriting reports 00,66 00,66 7. Audit of assureds records 8. Salary related items: 8. Salaries,80,87 76,0,9 66,90 77,9, Payroll taxes 8,80,99, 7,7,, 9. Employee relations welfare 8,87,68,8,70, Insurance 9,0,0 69,. ors fees 8,76 8,76. Travel travel items 8,9,67,0,,0. Rent rent items,0,,0,. Equipment 68,60 68,60. Cost or depreciation of EDP equipment software 98,68 7,06 70, 6,7 6. Printing stationery,80 0,96 06,77 7. Postage, telephone telegraph, exchange express 86,67 86,68 8. Legal auditing,9,0,9,0 9. Totals (Lines to 8),6,070 96,0,6 706,79 98,8, 0. Taxes, licenses fees: 0. State local insurance taxes deducting guaranty association credits of $,,9,,9 0. Insurance department licenses fees 98,08 98,08 0. Gross guaranty association assessments,78,78 0. All other (excluding federal foreign income real estate) 77,6 77,6 0. Total taxes, licenses fees ( ),,78,,78. Real estate expenses. Real estate taxes. Reimbursements by uninsured plans. Aggregate write-ins for miscellaneous expenses 0,7,8,,9, 6,70,70. Total expenses incurred 0,70,668,0,67,0,88 (a) 77,767,89 6. Less unpaid expenses - current year,800,9 (7,67,66),, Add unpaid expenses - prior year 9,98,80 89,697 0,7,0 8. Amounts receivable relating to uninsured plans, prior year 9. Amounts receivable relating to uninsured plans, current year 0. TOTAL EXPENSES PAID (Lines ) 8,888,98 7,989,90,0,88 8,9,86 DETAILS OF WRITE-INS 0. Investment Fees 7,7 7,7 0. Bank Fees,0,,0, 0. Outside Professional Services 0,,70,0,7, 98. Summary of remaining write-ins for Line from overflow page 96 07,9 08, Totals (Lines 0 thru 0 plus 98)(Line above) 0,7,8,,9, 6,70,70 (a) Includes management fees of $,, to affiliates $ to non-affiliates. Total

12 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company EXHIBIT OF NET INVESTMENT INCOME Collected During Year Earned During Year. U.S. Government bonds (a),0,6,77,. Bonds exempt from U.S. tax (a),09,0,98,8. Other bonds (unaffiliated) (a) 7,,987 8,,70. Bonds of affiliates (a). Preferred stocks (unaffiliated) (b). Preferred stocks of affiliates (b). Common stocks (unaffiliated) 7,80 7,80. Common stocks of affiliates,88 86,77. Mortgage loans (c). Real estate (d) Contract loans 6 Cash, cash equivalents short-term investments (e) 0,6 0,9 7 Derivative instruments (f) 8. Other invested assets 6,067 6, Aggregate write-ins for investment income 0. Total gross investment income,09,7,7,6. Investment expenses (g),0,88. Investment taxes, licenses fees, excluding federal income taxes (g). Interest expense (h). Depreciation on real estate other invested assets (i). Aggregate write-ins for deductions from investment income 6. Total deductions (Lines through ),0,88 7. Net investment income (Line 0 minus Line 6) 0,,770 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 090 thru 090 plus 0998) (Line 9, above) Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98) (Line, above) (a) Includes $,7,70 accrual of discount less $,78,00 amortization of premium less $,86,00 paid for accrued interest on purchases. (b) Includes $ accrual of discount less $ amortization of premium less $ paid for accrued dividends on purchases. (c) Includes $ accrual of discount less $ amortization of premium less $ paid for accrued interest on purchases. (d) Includes $ for company s occupancy of its own buildings; excludes $ interest on encumbrances. (e) Includes $ 9,6 accrual of discount less $ amortization of premium less $ paid for accrued interest on purchases. (f) Includes $ accrual of discount less $ amortization of premium. (g) Includes $ investment expenses $ investment taxes, licenses fees, excluding federal income taxes, attributable to segregated Separate Accounts. (h) Includes $ interest on surplus notes $ interest on capital notes. (i) Includes $ depreciation on real estate $ depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) Total Realized Capital Gain (Loss) (Columns + ) Change in Unrealized Capital Gain (Loss) Realized Gain (Loss) On Sales or Maturity Other Realized Adjustments. U.S. Government bonds,67,67. Bonds exempt from U.S. tax 9, 9,. Other bonds (unaffiliated),6,80 (97,7),89,0. Bonds of affiliates. Preferred stocks (unaffiliated). Preferred stocks of affiliates. Common stocks (unaffiliated). Common stocks of affiliates,8,80. Mortgage loans. Real estate. Contract loans 6. Cash, cash equivalents short-term investments,76,76 7. Derivative instruments 8. Other invested assets 8,909 8,909 90,6 9. Aggregate write-ins for capital gains (losses) 0. Total capital gains (losses),778,87 (97,7),8,97,79, DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 090 thru 090 plus 0998) (Line 9, above) Change in Unrealized Foreign Exchange Capital Gain (Loss)

13 . Bonds (Schedule D). Stocks (Schedule D):. Preferred stocks. Common stocks ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company. Mortgage loans on real estate (Schedule B):. First liens. Other than first liens. Real estate (Schedule A):. Properties occupied by the company. Properties held for the production of income. Properties held for sale EXHIBIT OF NON-ADMITTED ASSETS. Cash (Schedule E - Part ), cash equivalents (Schedule E - Part ) short-term investments (Schedule DA) 6. Contract loans 7. Derivatives (Schedule DB) 8. Other invested assets (Schedule BA) 9. Receivables for securities 0. Securities lending reinvested collateral assets (Schedule DL). Aggregate write-ins for invested assets. Subtotals, cash invested assets (Lines to ). Title plants (for Title insurers only). Investment income due accrued. Premiums considerations: Current Year Total Nonadmitted Assets Prior Year Total Nonadmitted Assets Change in Total Nonadmitted Assets (Col. - Col. ). Uncollected premiums agents' balances in the course of collection 6,78,8 7,89,00,70,6. Deferred premiums, agents' balances installments booked but deferred not yet due. Accrued retrospective premiums contracts subject to redetermination 6. Reinsurance: 6. Amounts recoverable from reinsurers 6. Funds held by or deposited with reinsured companies 6. Other amounts receivable under reinsurance contracts 7. Amounts receivable relating to uninsured plans 8. Current federal foreign income tax recoverable interest thereon 8. Net deferred tax asset,78,900 (,78,900) 9. Guaranty funds receivable or on deposit 0. Electronic data processing equipment software. Furniture equipment, including health care delivery assets. Net adjustment in assets liabilities due to foreign exchange rates. Receivables from parent, subsidiaries affiliates. Health care other amounts receivable. Aggregate write-ins for other than invested assets 6. Total assets excluding Separate Accounts, Segregated Accounts Protected Cell Accounts (Lines to ) 9,87,8 7,89,00 (,008,7) 7. From Separate Accounts, Segregated Accounts Protected Cell Accounts 8. Total (Lines 6 7) 9,87,8 7,89,00 (,008,7) DETAILS OF WRITE-INS 98. Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above)

14 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company. Summary of Significant Accounting Practices A. Accounting Practices NOTES TO FINANCIAL STATEMENTS The accompanying financial statements of Security National Insurance Company ( The Company ) are presented on the basis of accounting practices prescribed or permitted by the Delaware Department of Insurance. The Delaware Department of Insurance recognizes only statutory accounting practices prescribed or permitted by the state of Delaware for determining reporting the financial condition results of operations of an insurance company, for determining its solvency under the Delaware Insurance Code. The National Association of Insurance Commissioners (NAIC) Accounting Practices Procedures manual (NAIC SAP) has been adopted as a component of prescribed or permitted practices by the state of Delaware. The state has adopted certain prescribed or permitted accounting practices that differ from those found in NAIC SAP. The Commissioner of Insurance has the right to permit other specific practices that deviate from prescribed practices. In 06, the Company received a permitted accounting practice from the Delaware Commissioner to discount non-tabular workers compensation excess workers compensation loss reserves. This permitted accounting practice differs from NAIC SAP which allows the discounting of tabular loss reserves. A reconciliation of the Company s net income capital surplus between NAIC SAP practices prescribed or permitted by the State of Delaware is shown below: Net Income State of Domicile 06 0 () Security National Insurance Company, Delaware basis (Page, Line 0, Columns & ) DE $,0,6 $ 0,7, () State Prescribed Practices that increase/(decrease) NAIC SAP: DE - - () State Permitted Practices that increase/(decrease) NAIC SAP: DE $,9,89 - () NAIC SAP (--=) DE $,98,776 $ 0,7, Surplus as regards policyholde's () Security National Insurance Company, Delaware basis (Page, Line 7, Columns & ) DE $ 7,6,79 $ 9,,7 (6) State Prescribed Practices that increase/(decrease) NAIC SAP: DE - - (7) State Permitted Practices that increase/(decrease) NAIC SAP: DE $ 6,8,68 - (8) NAIC SAP (-6-7=8) DE $ 0,6,08 $ 9,,7 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 assumptions that affect the reported amounts of assets liabilities. It also requires disclosure of contingent assets liabilities at the date of the financial statements the reported amounts of revenue expenses during the period. Actual results could differ from those estimates. B. Accounting Policy Premiums are earned over the terms of the related insurance policies 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 are based on reports received from ceding companies for reinsurance. Expenses incurred in connection with acquiring new insurance business, including such acquisition costs as sales commissions, are charged to operations as incurred. Expenses incurred are reduced for ceding allowances received or receivable. In addition, the company uses the following accounting policies: () When held, short-term investments are stated at amortized cost. () Investment grade non-loan-backed bonds with NAIC designations or are stated at amortized value using the interest method. Non-investment grade non-loan-backed bonds with NAIC designations of through 6 are stated at the lower of amortized value or fair market value. () Common stocks are held at fair market value if assessed on Levels or. If the common stocks are assessed on Level, the lower of cost of fair market value will apply. () Preferred stocks: Preferred stocks are stated in accordance with the guidance provided in SSAP No.. () Mortgage loans on real estate: The Company does not hold any mortgage loans on real estate. (6) Loan-backed securities are stated at either amortized cost or the lower of amortized cost or fair market value. The retrospective adjustment method is used to value all securities except for interest only securities or securities where the yield has become negative, that are valued using the prospective method. (7) Investment in Subsidiary affiliated companies: The Company has a minor interest in the holding of the common stock of an affiliated company which is accounted for using the market valuation method. (8) The accounting policies of the reporting entity with respect to investments in joint ventures, partnerships limited liability companies: The Company carries its investments in joint ventures, partnerships limited liability companies at carrying value less encumbrances. (9) Derivatives: Not applicable. (0) The Company anticipates investment income as a factor in the premium deficiency calculation, in accordance with SSAP No., Property-Casualty Contracts Premiums. () Unpaid losses loss adjustment expenses include an amount determined from individual case estimates loss reports an amount, based on past experience, for losses incurred but not reported. Such liabilities are necessarily based on assumptions estimates 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 for establishing the resulting liabilities are continually reviewed any adjustments are reflected in the period determined. () The Company has not modified its capitalization policy from prior period. () Major medical insurance with prescription drug coverage: Not applicable. C. Going Concern Management does not have substantial reason to doubt about the Company s ability to continue as a going concern based on its evaluation of current conditions.. Accounting Changes Corrections of Errors A. Changes in Accounting Principles In 06, the Company adopted the permitted accounting practice, described in Note, to discount non-tabular workers compensation excess workers compensation loss reserves. The Company also adopted the prescribed practice set forth in Statement of Statutory Accounting Principles 6, Property Casualty Contracts ( SSAP 6 ) to discount tabular workers compensation excess workers compensation loss reserves. The adoption of these accounting practices as of January, 06 is reflected as a cumulative effect of a change in accounting principle increase to surplus gross of tax of $,,6.. Business Combinations Goodwill A. The Company was not a party to any purchase accounted for by the statutory purchase method. The Company has no goodwill. (Continued)

15 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company B. Statutory merger: Not applicable C. Write-downs for Impairment of Investment of Affiliates: Not applicable.. Discontinued Operations The company did not have any discontinued operations during the year.. Investments A. The Company has no mortgage loans. B. Trouble Debt Restructuring for Creditors: Not applicable. C. Reverse Mortgages: Not applicable. D. Loan-Backed Structured Securities: Not applicable. E. Repurchase Agreements /or Securities Lending Transactions: Not applicable. F. Writedowns for Impairments of Real Estate, Real Estate Sales, Retail L Sales Operations Real Estate with Participating Mortgage Loan Features: Not applicable. G. Low Income Housing Tax Credits: Not applicable. H. Restricted Assets () Restricted assets (including pledged) summarized by restricted asset category. () Detail of Asset Pledged as Collateral Not Captured in Other Categories: Not applicable. () Detail of Other Restricted Assets: Not applicable. () Collateral Received Reflected as Assets Within the Reporting Entity s Financial Statements: Not Applicable I. Working Capital Finance Investments: The Company does not have working capital finance Investments. J. Offsetting Netting of Assets Liabilities: The Company does not have derivatives, repurchases reverse repurchases, securities borrowing securities lending assets liabilities subject to offset netting of assets liabilities per SSAP No. 6. K. Structured Notes: The Company does not have Structured Notes. L. * Securities: The Company currently does not hold any * securities nor did it hold any in the prior year. 6. Joint Ventures, Partnerships, Limited Liability Companies The Company has an investment in a partnership that is less than 0% of the admitted assets reported at December, 06. A. Detail for those greater than 0% of admitted assets: Not applicable. B. Writedowns for Impairment of Joint Ventures, Partnerships LLCs: Not applicable. 7. Investment Income A. Accrued Investment Income: The Company does not admit investment income due accrued if amounts are over 90 days past due (80 for mortgage loans). B. Amount Non-admitted: Not applicable. 8. Derivative Instruments Total Current Gross Admitted Total Current TotalPrior Increase / Year Admitted Restricted to Restricted to Restricted Asset Category Year Year Decrease Restricted Total Assets Total Assets a. Subject to contractual obligation for which liability is not shown - - b. Collateral held undersecurity lending arrangements - - 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. Place underoption contracts - - h. Letter stock or securities as to sale - - i. On deposit with state 7,,90 7,69,80 99,6,00 7,,90 7.0% 7.0% j. On deposit with other regulatory bodies - - k. Pledged as collateral not captured in other categories - - l. Other restricted assets - - m. Total restricted assets 7,,90 7,69,80 99,6,00 7,,90 7.0% 7.0% The Company holds no investments in Derivative Instruments. (Continued).

16 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company 9. Income Taxes A. The components of the net deferred tax asset/(liability) at December are as follows: December, 06 December, 0 Change Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total (a) Gross deferred tax assets $,8,76 $,66 $,890,6 $,60,8 $0 $,60,8 $,908,8 $,66 $,9,9 (b) Statutory valuation allowance adjustments (c) Adjusted gross deferred tax assets (a - b),8,76,66,890,6,60,8 0,60,8,908,8,66,9,9 (d) Deferred Tax Assets Nonadmitted,78,900 0,78, ,78,900 0,78,900 (e) Subtotal Net Admitted Deferred Tax Asset (c - d),079,86,66,,6,60,8 0,60,8 0,9,8,66 0,76,0 (f) Deferred Tax Liabilities 76, 88,,67,668 7,907,88,,,9 (9,8) (607,089) (66,67) (g) Net admitted deferred tax asset/(net Deferred Tax Liability) (e - f) $,, ($9,76) $0,78,79 $0,89, ($,88,) $9,06,089 $0,9,000 $98,706 $,77, Change SSAP 0, paragraphs.a.,.b.,.c.: Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total (a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $,6,809 $,66 $,97, $9,78,6 $0 $9,78,6 $,6, $,66 $,96,069 (b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From (a) above) After Application of the Threshold Limitation. (The Lesser of (b) (b) Below) 7,809,68 0 7,809,68,60, 0,60, 6,0,9 0 6,0,9. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date 7,809,68 0 7,809,68,60, 0,60, 6,0,9 0 6,0,9. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold XXX XXX 9,98,87 XXX XXX,,8 XXX XXX 7,860,0 (c) Adjusted Gross Deferred Tax Assets (Excluding the Amount of Deferred Tax Assets From (a) (b) above) Offset by Gross Deferred Tax Liabilities 76,6 88,,67, , ,68 78,688 88, 960,00 (d) Deferred Tax Assets Admitted as the Result of Application of SSAP No. 0 Total ((a) + (b) + (c),98,0,,99,,6,60,8 0,60,8 9,8,07,,99 0,76, Percentage Percentage (a) Ratio Percentage Used to Determine Recovery Period Threshold Limitation Amount % 7% (b) Amount of Adjusted Capital Surplus Used to Determine Recovery Period Threshold Limitation in (b) Above % % (c) The Company's tax-planning strategies did not include the use of reinsurance-related tax planning strategies.. Impact of Tax Planning Strategies December, 06 December, 0 Change Ordinary Capital Total % Ordinary Capital Total Ordinary Capital Total (a) Adjusted Gross DTAs 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% (% of Total Adjusted Gross DTAs) (b) Net Admitted Adjusted Gross DTAs 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% (% of Total Net Admitted Adjusted Gross DTAs) The Company's tax planning strategies did not include the use of reinsurance-related tax planning strategies. B. Unrecognized DTLs Not applicable C. Current Tax Change in Deferred Tax. Current income tax: 06 0 Change (a) Federal,976,78 8,,9,60,8 (b) Foreign (c) Subtotal,976,78 8,,9,60,8 (d) Federal income tax on net capital gains 990,989 7,7 87,68 (e) Utilization of capital loss carryforward (f) Other Federal foreign income taxes incurred,967,77 8,,66,,09. Deferred tax assets: 06 0 Change (a) Ordinary: () Discounting of unpaid losses,979,,07,67 (,8,) () Unearned premium reserve 7,67,87,97,0,9,77 () Policyholder reserves () Investments () Deferred acquisition costs (6) Policyholder dividends accrual (7) Fixed assets (8) Compensation benefits accrual (9) Pension accrual (0) Receivables - nonadmitted 6,, 0 6,, () Net operating loss carry-forward () Tax credit carry-forward () Other (including items <% of total ordinary tax assets) () Discount on salvage subrogation 0,79,,68,70 6,80,9 (99) Subtotal,8,76,60,8,908,8 (b) Statutory valuation allowance adjustment (c) Nonadmitted,78,900 0,78,900 (d) Admitted ordinary deferred tax assets (a99-b-c),079,86,60,8 0,9,8 (e) Capital () Investments () Net capital loss carry-forward () Stock Impairment,66 0,66 () Other (including items <% of total capital tax assets) (99) Subtotal,66 0,66 (f) Statutory valuation allowance adjustment (g) Nonadmitted (h) Admitted capital deferred tax assets (e99-f-g),66 0,66 (i) Admitted deferred tax assets (d+h),,6,60,8 0,76,0 (Continued).

17 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company. Deferred tax liabilities: 06 0 Change (a) Ordinary: () Investments () Fixed assets () Deferred uncollected premiums () Policyholder reserves () Other (including items <% of total ordinary tax liabilities) (6) Additional acquisition costs-installment premiums 76, 7,907 (9,8) (7) Discount of accrued salvage subrogation (8) Guaranty funds receivable (99) Subtotal 76, 7,907 (9,8) (b) Capital () Investments 88,,88, (607,090) () Real estate () Other (including items <% of total capital tax liabilities) (99) Subtotal 88,,88, (607,090) (c) Deferred tax liabilities (a99+b99),67,668,,9 (66,67). Net deferred tax assets/liabilities (i-c) 0,78,79 9,06,089,77,706 D. Reconciliation of Federal Income Tax Rate to Actual Effective Rate The significant items causing a difference between the statutory federal income tax rate Security National Insurance Company's effective income tax rate are as follows: December, 06 Effective Tax Rate Provision computed at statutory rate $,96,86.0% Change in nonadmitted assets (6,,) -.7% Tax exempt income deduction (69,877) -.0% Dividends received deduction (,0) -0.% Accrued dividend from 00% owned affiliate 0 0.0% Goodwill amortization 0 0.0% Proration of tax exempt investment income 0,97 0.% Other than temporary impairments 0 0.0% Nondeductible Expenses,8 0.% Accounting Method Change,898,807.8% Accrual adjustment - prior year,07 0.0% Other (0,788) -0.% Totals $8,97,0.0% Federal foreign income taxes incurred $,976,78 6.7% Realized capital gains (losses) tax 990,989.% Change in net deferred income taxes (,00,67) -.% $8,97,0.0% E. Operating Loss Tax Credit Carryforwards () At December, 06 the Company did not have any unused operating loss carryforwards available to offset against future taxable income. () The following is income tax expense for 06 0 that is available for recoupment in the event of future net losses: Year Amount 06 $,967,77 0 $8,,66 () The Company did not have any protective tax deposits under Section 660 of the Internal Revenue Code. F. Consolidated Federal Income Tax Return () The Company's federal income tax return is consolidated with the following entities: 6 East th Purchaser LLC CLE Investments Limited 777 Cowan LLC CNH Capital Canada Insurance Agency Ltd 60 Market Place, LLC CNH Industrial Insurance Agency Inc. 00 Executive Blvd. Southington Commercial Care Plan Limited LBJ Freeway LLC Composite Holdings Limited 7 West Jefferson LLC Composite Assistance Limited 7 St. Nicholas Holdings LLC Composite Legal Expenses Limited 800 Superior LLC Cord Holdings LLC 800 Superior NMTC Investment Fund II LLC CorePointe Insurance Agency, Inc. AA Gadget Repair Limited CorePointe Insurance Company Advantage Comp, Inc. CPP, LLC ACP Re Holdings, LLC CPP Florida, LLC AFAC Venture Holdings, LLC CPP Travel, LLC AFS Realty Holdings LLC CPP Warranties, LLC AFS Realty Member, LLC DC Finest, LLC Agent Alliance Reinsurance Company Ltd. Developers Surety Indemnity Company AII Insurance Management Limited Digital Care (Nordic) AB (Continued).

18 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company AII Investment Holdings Limited AII Reinsurance Broker Ltd AIU Management Services Limited AmCafe LLC AmCom Insurance Services, Inc. AMT Agency Holdings, Inc. AMT Capital Alpha, LLC AMT Capital Holdings III S.A. AMT Capital Holdings S.A AMT Chronos S.A. AMT Consumer Services, Inc. AMT Title, LLC AMT do Brasil Holdings Limited AMT Global, LLC AMT Global Realty Holdings LLC AMT Home Protection Company AMT Investments, LLC AMT Mortgage Insurance Limited AMT Mortgage Services Limited AMT NJ Realty LLC AMT NY Realty Holdings, LLC AMT Plutus S.A. AMT RE NY Holdings LLC AMT Road Services Corp AMT Warranty Corp. AMT Warranty Corp of Canada, ULC AMT Warranty Solutions, Inc. AMTCS Holdings, Inc. AmTrust Agriculture Insurance Services, LLC AmTrust at Lloyd's Limited AmTrust Bermuda I Ltd. AmTrust Bermuda II Ltd. AmTrust Bermuda III Ltd. AmTrust Bermuda IV Ltd. AmTrust Captive Solutions Limited AmTrust Cayman Resinsurance Company, Ltd. AmTrust Claims Management SrL. AmTrust Claims Services, Inc. AmTrust Corporate Capital Limited AmTrust Corporate Member Limited AmTrust Corporate Member Two Limited AmTrust E&S Insurance Services, Inc. AmTrust Equity Solutions Ltd AmTrust Europe Legal Ltd AmTrust Europe Limited AmTrust France SAS AmTrust Gestion Bolivia S.R.L. AmTrust Gestion Paraguay S.A. AmTrust Gestion Peru S.A.C. AmTrust Financial Services, Inc AmTrust Holdings Luxembourg - Europe S.a.r.l. AmTrust Holdings Luxembourg S.A.R.L. AmTrust Holding Sweden Europe AB AmTrust Insurance Agency Italy S.r.l. AmTrust Insurance Company of Kansas, Inc. AmTrust Insurance Luxembourg S.A. AmTrust Insurance Spain, S.L.U. AmTrust International Bermuda Ltd. AmTrust International Insurance, LTD AmTrust International Limited AmTrust International Underwriters Limited AmTrust Irel Holdings (UK) Limited AmTrust Irel Holdings II Limited AmTrust Italia S.R.L. AmTrust Lloyd's Holdings Limited AmTrust Lloyds Insurance Company of Texas AmTrust Management & Consultancy (China) Co., Ltd. AmTrust Management Services Limited AmTrust Mobile Solutions India Holdings Private Limited AmTrust Mobile Solutions Malaysia Holdings Sdn Bhd AmTrust Mobile Solutions Malaysia Sdn.Bhd AmTrust Mobile Solutions Singapore PTE. LTD. AmTrust Nordic, AB AmTrust Nordic Holding Europe AB AmTrust North America of Florida, Inc. AmTrust North America of Texas, Inc. AmTrust North America, Inc. AmTrust Re 007 (Luxembourg) AmTrust Re Delta AmTrust Re Theta AmTrust Revive Limited AmTrust Syndicate Holdings Limited AmTrust Syndicate Services Limited AmTrust Title Insurance Company AmTrust Underwriters, Inc. AmTrust Underwriting Limited AmTrust Ventures I, LLC AMTS Holding Corp. ANV Global Services Inc. ARI Casualty Company ARI Holdco Inc. ARI Insurance Company ARI Services, Inc. Aries Capital Holdings, LLC Associated Industries Insurance Company, Inc. Assure Space, LLC Boca NW6, LLC Builders & Trademen's Insurance Services Builders Insurance Services, LLC Canada Warranty Solutions, LLC Canyon State Auto Insurance Services, Inc. Capital Oakl Holdings, LLC Car Care Pension Trustees Limited Car Care Plan (Holdings) Limited Car Care Plan do Brasil Participacoes LTDA Car Care Plan GmbH Car Care Plan Limited Car Care Plan Management Services Limited Caravan Security Storage Limited Reinsurance, Ltd Dore & Associates Holdings Limited Dore Underwriting Services Limited DSSA Warranty Danýþmanlýk Anonim Þiriketi Eagle General Agency, Inc. East Ninth & Superior, LLC Finagra (UK) Limited Finagra USA Inc. First Nationwide 0 LLC First Nationwide Title Agency LLC First Nationwide Title Agency of Texas, LLC First NonProfit Companies First Nonprofit Insurance Agency First Nonprofit Insurance Company First Nonprofit Unemployment Administration Company, LLC FSO LLC Gadget Repair Solutions Limited Heritage Indemnity Company Heritage Mechanical Breakdown Corporation I.G.I. Administration Services Limited I.G.I. Intermediaries Limited Indemnity Company of California Insco Insurance Services, Inc. LAE Insurance Services, Inc Lion Capital Alpha, LLC Lion Capital Beta, LLC MGB Investments LLP Milwaukee Casualty Insurance Company Mobile Reapair Solutions Malaysia SDN BHD Motors Insurance Company Limited National Home Surety Inc. Northcoast Warranty Services, Inc. Oakwood Village, Ltd Oryx Insurance Brokerage, Inc. OwnerGUARD Agency OwnerGUARD Corporation OwnerGUARD University PBOA. Inc Pedigree Livestock Insurance Limited Primero Seguros, S.A. de C.V. PT AmTrust Mobile Solutions Indonesia Holdings REAF Holdings LLC Republic Companies, Inc. Republic Diversified Services, Inc. Republic Fire Casualty Insurance Company Republic Group No. Two Company Republic Lloyds Republic Underwriters Insurance Company Republic-Vanguard Insurance Company RHL Corporate Name No. Limited Right Claim, Limited Risk Services - Arizona Inc. Risk Services - Nevada, Inc. Risk Services - Vermont, Inc Risk Services (Bermuda) Ltd Risk Services (Hawaii) Ltd Risk Services Intermediaries (Bermuda) Ltd Risk Services, LLC Rock Run South, LLC Rocklin Sierra College RS Acquisition Holdco, LLC Security National Insurance Company Sequoia Indemnity Company Sequoia Insurance Company Shanghai First Response Service Co. Ltd Signal Acquisition LLC Signal Service Solutions, LLC Southern Insurance Company Southern Underwriters Insurance Company Strongwood Risk Management Solutions, LLC Technology Insurance Company, Inc. Tecprotec AVA Sdn. Bhd. Tecprotec LLC The CPP Insurance Agency, LLC The Finest Service Organization, LLC Tiger Capital, LLC TMI Solutions, LLC ToCo Warranty Corp. Total Program Management, LLC Unified Grocers Insurance Services United Underwriting Agency, Inc. Vemeco, Inc Vista Surety Insurance Solutions, LLC W Corp Warrantech Automotive of Canada, Inc Warrantech Automotive of Florida, Inc Warrantech Automotive, Inc Warrantech Caribbean, LTD Warrantech Consumer Product Services, Inc Warrantech Corporation Warrantech I, LP Warrantech, Inc Warrantech Home Assurance Company Warrantech Home Service Company Warrantech International, de Chile Warrantech International, Inc Warrantech Management Company Warrantech Management Holding Company Warrantech Management, Limited Partnership Warrantech Peru SRL Warranty Solutions Administrative Services, Inc. Warranty Solutions Management Corporation WCPS of Florida Inc Wesco Insurance Company Westlake Insurance Company (Bermuda), Ltd. Westport Reinsurance Limited Westside Parkway GA, LLC WHSC Inc WS Aftermarket Services Corporation () The method of allocation among companies is subject to a written agreement approved by the Board of ors, whereby allocation is made primarily on a separate return with current basis for any net operating losses or other items utilized in the consolidated tax return. Payments the remittance due pursuant to this agreement shall be made by March th of the year following the subject year, providing however, that Amtrust (the parent company) may at its discretion, waive any or all payments remittances due or owned by the Company. Intercompany tax balances are settled quarterly.. (Continued)

19 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company G. Federal or Foreign Income Tax loss contingencies: The Company has no tax loss contingencies for which it is reasonably possible that the total liability will significantly increase within twelve months of the reporting date. 0. Information Concerning Parent, Subsidiaries, Affiliates A. The company is a wholly owned subsidiary of AmTrust Financial Services, Inc. ( AmTrust ), a publicly traded company incorporated in Delaware. B. Detail of transactions greater than ½% of admitted assets: Purchase of Common Stock (National General Holdings Corp) from affiliated company, AmTrust International Insurance, Ltd. () Date of Transaction: August, 0 () Explanation: AmTrust International Insurance, Ltd. made a determination to reallocate their common stock inventory chose to redistribute these shares to its affiliates. () Name of Reporting Entity: Security National Insurance Company () Name of Affiliate: AmTrust International Insurance, Ltd. () Description of Assets Received by Reporting Entity:,098,67 shares of common stock of National General Holdings Corp. (6) Statement Value of Assets Received by Reporting Entity upon Purchase: $0,97,687 (7) Description of Assets Transferred by Reporting Entity: Cash (8) Statement Value of Assets Transferred by Reporting Entity: $7,,86 All investment transactions with affiliates have been reported at market value. Long Term Bonds Purchased Date CUSIP Description Name of Vendor Amount 0/08/ H-DA- BANK OF NEW YORK MELLON.000% 0// AMTRUST LLOYDS USD LDTF 06 9,0, 0/08/06 69R-E Q-7 PNC BANK NA.0% 06/0/ AMTRUST LLOYDS USD LDTF 06 7,9,6 0/08/06 787A-AA-8 SABMILLER HOLDINGS INC.70% 0// TECHNOLOGY INSURANCE COMPANY 6,07,8 0/08/ AG-6 SCHLUMBERGER HOLDINGS CORP PVT SER A.000% // WESCO INSURANCE COMPANY 0,,870 06/9/06 80M-EY-6 MCDONALDS CORP.700% 0/0/6 AMTRUST INTL INS LTD 8,098,778 06/9/ BJ- SUMITOMO MITSUIBANKING.90% 0/0/ AMTRUST INTL INS LTD 7,60,0 07/9/06 98R-DA-0 FANNIE MAE FNR 00- AH AMTRUST INTL INS LTD 6,6,0 /0/06 077E-AG-8 BAYER US FINANCE LLC A PVT PLACEMENT.7% 0/08/ AMTRUST INTL INS LTD 0,77,78 6,788,907 Long Term Bonds Sold Date CUSIP Description Name of Vendor Amount 0// G6-8 PA HSG FINANCE AGENCY AMT SER A.0% 0/0/6 TECHNOLOGY INSURANCE COMPANY 9,9,98 0//06 8WY-CF-0 FANNIE MAE POOL FN AT % 07/0/ TECHNOLOGY INSURANCE COMPANY,00,9 0//06 98U-H8- VA STATE HSG DEV AUTH C.00% 0/0/8 TECHNOLOGY INSURANCE COMPANY 8,8,96 0//06 8B-RS-7 FANNIE MAE FN MA96 POOL.00% 06/0/ TECHNOLOGY INSURANCE COMPANY 8,886,0 0//06 8B-RS-7 FANNIE MAE FN MA96 POOL.00% 06/0/ AMTRUST FINANCIAL SVCS INC 8,886,0 0//06 8A-AN- FNMA A Pool #Ahoo.000% /0/0 ROCHDALE INSURANCE COMPANY 7,66,8 0//06 60R-AC-0 MANULIFE FINANCIAL CORP.0% 0/0/6 AMTRUST INTL INS LTD,80,6 06/9/06 086F-AG- CONOCO PHILLIPS COMPANY.0% 0//8 AMTRUST INTL INS LTD 7,60,60 98,9,890 C. Change in Terms of Intercompany Agreements: The Company has an existing reinsurance agreement ( reinsurance agreement ) with its affiliates, Technology Insurance Company (TIC) AmTrust International Insurance, Ltd. (AII), which cover certain lines of business produced by the Company. Under the terms of these reinsurance agreements, on policies effective beginning January, 06, the Company agrees to cede 0% 0% on certain exposures to AII TIC, respectively, after third party reinsurance. On policies with effective dates beginning January, 0 through December, 0, the company ceded 60% 0% on certain exposures to AII TIC, respectively, after third party reinsurance. Policies prior to 0 will continue to be ceded at 70% 0%, respectively. On the business attributable to ALIC Insurance Company, which has been merged into Security National Insurance Company, the prior percentages of 70% 0% will continue to apply. The Company has a reinsurance agreement with Agent Alliance Reinsurance Company. Under the terms of the reinsurance agreements, the Company agrees to cede % to Agent Alliance. The Company has a reinsurance agreement with Southern General Agency, Inc. (SGA) which covers policies for certain lines of business written by the Company underwritten by SGA. Under the terms of these reinsurance agreements, the Company agrees to cede 80% to its affiliate, Maiden Reinsurance Company after any applicable inuring third party reinsurance. D. As of December, 06, the Company reported payables to parent, subsidiaries affiliates of $0,08,89, which represents Service agreement transactions accounts payable invoices paid on behalf of the Company. These amounts are to be settled monthly. E. Guarantees or Undertakings for Related Parties: Not Applicable. F. The Company has an Intercompany Management Agreement with AmTrust North America, Inc. (ANA), by which ANA provides certain management services allocates costs among the Company other affiliates on a proportional basis. During the year ended December, 06, the Company incurred fees as Compensation for Services in the sum of $6,870,6. The Company incurred an annual Claims Management Fee in the sum of $00,000. Also, the Company incurred an annual Claims Service Fee in the sum of $8,6,89. Further, the Company has entered into a separate agreement with AmTrust Financial Services, Inc. (AFS), which allows for the waiver of any part or all of the fees associated with services provided if the charge is deemed to be unduly burdensome on the Company s current surplus. As of December, 06 the company incurred $0 in management fees associated with this agreement. G. All outsting shares of the Company are owned by Parent the nature of the relationship would not affect operations. H. Amount Deducted for Investment in Upstream Company: Not applicable. I. Detail in Investments in Affiliates Greater than 0% of Admitted Assets: Not applicable. J. Writedowns for Impairment of Investments in Affiliates: Not applicable. K. Foreign Insurance Subsidiary Valued Using CARVM: Not applicable. L. Downstream Holding Company Value Using Look-Through Method: Not applicable.. (Continued)

20 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company M. ALL SCA Investments () Balance Sheet Value (Admitted Non-admitted) All SCA s (Except 8b(i) Entities) Type of Date of NAIC Filing NAIC Filing Percentage of SCA Ownership NAIC Response NAIC Resubmission Gross Amount Admitted Amount Non admitted Amount SCA Entity a. SSAP No. 978a Entities National General Holdings Corp S /0/06.0 Y N 7,,86 7,,86 - Total SSAP No. 978a Entities 7,,86 7,,86 - f. Aggregate Total 7,,86 7,,86 - () NAIC Filing Response Information. Debt SCA Entity a. SSAP No. 978a Entities National General Holdings Corp S //06 Y N 7,,86 Total SSAP No. 978a Entities Aggregate Total 7,,86 *S Sub S Sub or RDF Resubmission of Disallowed Filing **I Immaterial or M Material N. Investment in Insurance SCA s The Company has no investments in an Insurance Subsidiary, Controlled, or Affiliated entities. A. Amount, interest, maturities, collateral, covenants: Not applicable. B. Funding agreements with Federal Home Loan Bank (FHLB): The Company has not entered into any funding agreements with the Federal Home Loan Bank (FHLB).. Retirement Plans, Deferred Compensation, Postemployment Benefits Compensated Absences Other Postretirement Benefit Plans A. Defined Benefit Plan: The Company has no defined benefit pension plan postretirement health care benefit plans. B. Description of Investment Policies: Not applicable. C. Fair Value of Plan Assets: Not applicable. D. Rate of Return Assumption: Not applicable. E. Defined Contribution Plans: Not applicable. F. Multiemployer Plans: Not applicable. G. Consolidated / Holding Company Plans: AmTrust maintains a 0(k) defined contribution benefit plan that covers substantially all employees. AmTrust make discretionary employer contributions on a variable matching basis. AmTrust contributes 0% per employee dollar, up to a maximum of % of an employee s annual wage. The Company has no legal obligation for benefits under these arrangements. H. Postemployment Benefits Compensated Absences: Not applicable I. Impact of Medicare Modernization Act on Postretirement Benefits (INT 0-7): Not applicable.. Capital Surplus, Dividend Restrictions Quasi-Reorganizations () The Company has 00,000 shares at $0 par value,000,000 shares at $ par value of common stock authorized, issued outsting. The Company has no preferred stock authorized, issued or outsting. () Dividend Rate of Preferred Stock: Not applicable. () Without prior approval of its domiciliary commissioner, dividends to shareholders are limited to a dividend whose fair market value, together with that of other dividends or distributions, made within the preceding months does not exceed the greater of: (A) Ten percent of such insurer's surplus as regards policyholders as of the st day of December next preceding; or (B) The net gain from operations of such insurer, if such insurer is a life insurer, or the net income, if such insurer is not a life insurer, not including realized capital gains, for the -month period ending the st day of December next preceding, but shall not include pro rata distributions of any class of the insurer's own securities. Under such restrictions, the maximum dividend payout which may be made by the Company without prior approval in 07 is $0,08,79 () The company did not pay out ordinary or extraordinary dividends in 06. () Within the restrictions of (C) above, there are no restrictions placed on the portion of Company' profits that may be paid as ordinary dividends to stockholders. (6) There were no restrictions placed on the Company s unassigned funds (surplus), including for whom the surplus is being held. (7) Mutual Surplus Advances: Not applicable. (8) Company Stock Held for Special Purposes: Not applicable. (9) Changes in Special Surplus Funds: Not applicable. Type of Date of NAIC Filing NAIC Filing (0) The portion of unassigned funds (surplus) represented or reduced by cumulative unrealized gains or losses is $7,0,90. () The Company has not issued any surplus debentures or similar obligations. () Impact Dates of Quasi-Reorganizations: Not applicable. NAIC Response Received Y/N NAIC Disallowed Entities Valuation Method () The effective date of the quasi-reorganization for a period of ten years following the reorganization: Not applicable. NAIC Valuation Amount Code **.6 (Continued)

21 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company. Contingencies A. Contingent Commitments The Company has no commitments or contingent commitments to any SCA entity, joint venture, partnership or limited liability company. B. Guaranty Fund Other Assessments The Company is aware of the insolvency of various insurance companies. These insolvencies have resulted in a guaranty fund assessments against the Company. At this time the company is unable to estimate the possible amounts, if any, of additional assessments. Accordingly, the company is unable to determine the impact, if any, of additional assessments may have on the Company s financial position or results of operations. The Company does not anticipate that any future assessment will be material with respect to the Company s financial position. C. Gain Contingencies: Not applicable. D. Extra Contractual Obligations Bad Faith Losses: Not applicable. E. Product warranties Reconciliation of aggregate product warranty liabilities a. Product warranty liablility beginning balance 79, b. Reductions for payments made under the waranty (,,70) c. Liability accrual for product warranties issued during the current period, d. Change in liability accrual for product warranties issued in previous period,80,77 e. Product warranty liability ending balance,700 F. Joint Several Liabilities: Not applicable. G. All Other Contingencies: The Company is not aware of any material contingencies as of reporting date.. Leases A. Lessee Leasing Arrangements: Not applicable. B. Lessor Leasing Arrangements: Not applicable. 6. Information about Financial Instruments with Off-Balance Sheet Risk Financial Instruments with Concentrations of Credit Risk The Company has no exposures to financial instruments with off-balance sheet risk financial instruments with concentrations of credit risk as of December,, Sale, Transfer Servicing of Financial Assets Extinguishments of Liabilities A. Transfer any receivables reported as sales: Not applicable. B. Transfer service any financial assets: Not applicable. C. Wash sales: Not applicable. 8. Gain or Loss to the Reporting Entity from Uninsured Plans the Uninsured Portion of Partially Insured Plans A. Administrative Services Only (ASO) Plans: Not applicable. B. Administrative Services Contract (ASC) Plans: Not applicable. C. Medicare or Other Similar Structured Cost Based Reimbursement Contracts: Not applicable. 9. Premium Written/Produced by Managing General Agents/Third Party Administrators. The Company does have any direct premiums written through or produced by managing general agents or third party administrators greater than % of policyholders surplus: Exclusive Type of Business Types of Authority Premiums Name Address FEI Number Contract Written Granted Written Riscio Insurance Services, Inc. W. Shaw Ave. Worker's Fresno, CA NO Compenstion C, CA, B, P, U $,960,06 0. Fair Value Measurements A. Inputs Used for Assets Liabilities Measured at Fair Value. () Fair Value Measurements by Levels,, : The Company has categorized its assets liabilities that are measured at fair value into the three-level fair value hierarchy as reflected in the table below. The three-level fair value hierarchy is based on the degree of subjectivity inherent in the valuation method by which fair value was determined. The three levels are as follows. Level Quoted Prices in Active Markets for Identical Assets Liabilities: This category, for items measured at fair value on a recurring basis, includes exchange-traded preferred common stocks. The estimated fair value of the securities within this category is based on quoted prices in active markets is thus classified as Level. Level Significant Other Observable Inputs: This category for items measured at fair value on a recurring basis includes bonds preferred stock common stock which are not exchange-traded. The estimated fair values of some of these items were determined by independent pricing services using observable in puts. Others were based on quotes from markets which were not considered actively traded. Level Significant Other Observable Inputs: This category for items measured at fair value on a recurring basis includes investment partnerships. The estimated fair value is determined by the investment manager. Assets at Fair Value () () () () () Description Level Level Level Total Perpetual Preferred stock Industrial & Misc Parent, Subsidiaries Affiliates Total preferred stock Bonds US Governments 8,8,77,98,86 0 8,679,99 Industrial & Misc 0 689,69, ,69,790 Hybrid Securities Parent, Subsidiaries Affiliates Total bonds asset-backed securities 8,8,77 7,07, ,9,79 Common stock Industrial miscellaneous 0 0,90,00,90,00 Parent, Subsidiaries Affiliates 7,, ,,86 Total common stock 7,,86 0,90,00 9,86,6 Cash,68,86,68,86 Other Invested Assets,866,0,866,0 Total assets at fair value,06,00 7,07,976 6,796, 96,,00 (Continued).7

22 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Liabilities at fair value: Not applicable. At the end of each reporting period, the Company evaluates whether or not any event has occurred or circumstances have changed that would cause an instrument to be transferred between Levels. This policy also applies to transfers into or out of Level as stated in paragraph below. () Roll-forward of Level Items Balance January, 06 Transfer In Level Transfers out Level Gains/(Losses) Included in Surplus Purchases Issuances Sales Settlements Balance December, 06 Preferred Stocks,90,00,90,00 Other Invested Assets -,866,0,866,0 Total Assets,90,00,866, ,796, () Policy on Transfers Into Out of Level. At the end of each reporting period, the Company evaluates whether or not any event has occurred or circumstances have changed what would cause an instrument to be transferred into or out of Level. During the current year, the security reflected as a purchase above was determined to meet the criteria of Level. () Inputs Techniques Used for Level Level Fair Values Bonds carried at fair value categorized as Level were valued using a market approach. These valuations were determined to be Level valuations as quoted markets prices for similar instruments in an active market were utilized. This was accomplished by the use of matrix pricing. Matrix pricing takes quoted prices of bonds with similar features applies an analytic method to determine the fair value of bonds held. Features that are inputs into for this analysis includes duration, credit quality, tax status call sinking fund features. The Company has common stock measured at fair value in Level, as reflected above. () Derivative Fair Values: Not applicable. B. Other Fair Value Disclosures: Not applicable. C. Aggregate fair value for financial instruments the level within the fair value hierarchy: Types of Financial Instruments Aggregate Fair Value Admitted Assets level level level Not Practical (Carrying Value) Bonds 88,9,79 8,7,8 8,8,77 7,07,976 - Common Stock 9,86,6 9,86,6 7,,86,90,00 Perpetual Preferred Stock - Mortgage Loans - Cash,68,86,68,86,68,86 Other Invested Assets - Schedul,866,0,866,0,866,0 Total 96,,00 9,,66,06,00 7,07,976 6,796, - D. Financial Instruments for which Not Practicable to estimate Fair value: Types of Financial Instrument Carrying Value Bonds - - Common Stock - - Perpetual Preferred Stock - - Mortgage Loans - - Total - - Effective Interest Rate Maturity Date Explanation. Other Items A. Extraordinary Items: Not applicable. B. Troubled Debt Restructuring for Debtors: Not applicable. C. Other Disclosures: Not applicable. D. Business Interruption Insurance Recoveries: Not applicable. E. State Transferable Tax Credits: Not applicable. F. Subprime Mortgage Related Risk Exposure: Not applicable. G. Insurance-Linked Securities (ILS) Contracts Management of Risk Related To: Number of Outsting ILC Aggregate Maximum Proceeds () ly - Written Insurance Risks a. ILS Contracts as Issuer b. ILS Contracts as Ceding Insurer $ million c. ILS Contracts as Counterparts () - Written Insurance Risks a. ILS Contracts as Issuer b. ILS Contracts as Ceding Insurer c. ILS Contracts as Counterparts. Events Subsequent Type I Recognized Subsequent Events The Company has considered subsequent events through 0//7 for the statement issued on 0/8/7. The Company has no subsequent events to report. Type II Non-recognized Subsequent Events The Company has considered subsequent events through 0//7 for the statement issued on 0/8/7. The Company has no subsequent events to report. (Continued).8

23 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company. Reinsurance A. Unsecured Reinsurance Recoverable The Company has the following unsecured reinsurance recoverables that exceed % of policyholder s surplus: NAIC Code Federal Tax ID # Company Amount TECHNOLOGY INS CO INC 0,, TRINITY UNIVERSAL INS CO 8,7,6 The business of the Company, after third party reinsurance, is 70% reinsured through a quota share reinsurance agreement with its affiliates, TIC AII. Under the terms of these reinsurance agreements, the Company agrees to cede 0% 0% on certain exposures to AII TIC, respectively, after third party reinsurance. Refer to Note 0 for additional information. Should any individual third party reinsurer fail to pay balances, amounts would become payable by TIC AII via the quota share agreement. B. Reinsurance Recoverable in Dispute The Company does not have any reinsurance recoverables in dispute for paid losses loss adjustment expenses. C. Reinsurance Protected Cells ) The following table summarizes ceded assumed unearned premiums the related commission equity at December, 06: Reinsurance Reinsurance Net Premium Reserve Commission Equity Premium Reserve Commission Equity Premium Reserve Commission Equity a. Affiliates - -,70,90 79,6,78 (,70,90) (79,6,78) b. All Other,0,8 6,,7 0,790,,09,7 0,,0,6 c. Total,0,8 6,,7,60,8 8,66,9 (,89,968) (7,0,66) d. Unearned Premium Reserves,7,707 ) Certain agency agreements ceded reinsurance contracts provide for additional or return commissions based on the actual loss experience of the produced or reinsured business. Amounts accrued at the end of the current year are as follows: Net a. Contingent Commission b. Sliding Scale Adjustments c. Other Profit Commissions d. Total ) The Company does not use protected cells as an alternative to traditional reinsurance. D. Uncollectible Reinsurance The company has not written off any balances in the current year reinsurance balances due. E. Commutation of Reinsurance: The Company s current year operations included a commutation with General Reinsurance Corporation ( Gen Re ). The net consideration received from Gen Re was $,98,88, for which the Company reduced its loss loss adjustment expenses. F. Retroactive Reinsurance: Not applicable. G. Reinsurance Accounted for as Deposit: Not applicable. H. Run-off Agreements: Not applicable. I. Certified Reinsurer Rating Downgraded or Status Subject to Revocation: Not applicable. J. Reinsurance Agreements Qualifying for Reinsurer Aggregation: Not applicable.. Retrospectively Rated Contracts Contracts Subject to Redetermination A. Method Used to Estimate: The Company has no retrospectively rated contracts or contracts subject to redetermination. B. Method Used to Record: Not applicable. C. Amount Percent of Net Retrospective Premiums: Not applicable. D. Medical Loss Ratio Rebates: Not applicable. E. Calculation of Non-admitted Accrued Retrospective Premiums: Not applicable. F. Risk-sharing provisions of the Affordable Care Act (ACA): Not applicable.. Change in Incurred Losses Loss Adjustment Expenses The following table provides a reconciliation of the beginning ending reserve balances for losses LAE, net of reinsurance recoverable, for December, 06 December, 0 in (000 s): 06 0 Beginning Balance $ 0,70 $ 9,8 Incurred related to: Current Year 99,6 66,7 Prior Year (9,),897 Total Incurred 90, 69, Paid relatyed to: Current Year,7 8, Prior Year,96 8,99 Total Paid 8,7 6,8 Ending Balance $,87 $ 0,70 6. Intercompany Pooling Arrangements The Company does not participate in any intercompany pooling arrangements. 7. Structured Settlements A. The Company has not entered into any structured settlements as of December, 06. B. There are no balances due from annuity insurers that are greater than % of policyholders surplus. 8. Health Care Receivables The Company does not write any accident health insurance has no pharmaceutical rebate receivables or risk sharing receivables. (Continued).9

24 9. Participating Policies ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company The Company has no participating policies. 0. Premium Deficiency Reserves The Company has no premium deficiency reserves.. High Deductibles The Company has no high deductible policies.. Discounting of Liabilities for Unpaid Losses or Unpaid Loss Adjustment Expenses A. Tabular Discount Reserves for tabular workers compensation excess workers compensation loss reserves as of December, 06 have been discounted using the Social Security Administration s Period Life Table, 0 at.0%. The discount rate used was approved by the Delaware Insurance Department. Reserves for tabular workers compensation excess workers compensation loss reserves were not presented on a discounted basis as of December, 0 as described in Note. As of December, 06 the amount of discounted tabular workers compensation excess workers compensation reserves is $6,. The amount of tabular discount as of December, 06 is as follows: Schedule P lines of business Case IBNR Total Workers' compensation $ 6, $ - $ 6, Excess workers' compensation Total tabular discount $ 6, $ - $ 6, A. Non-Tabular Discount Tabular Discount Included in Schedule P - Part Reserves for non-tabular workers compensation excess workers compensation loss reserves as of December, 06 have been discounted at.0%. The discount rate used was approved by the Delaware Insurance Department. Reserves for non-tabular workers compensation excess workers compensation loss reserves were not presented on a discounted basis as of December, 0 as described in Note. As of December, 06 the amount of discounted non-tabular workers compensation excess workers compensation loss reserves is $6,8,68. The amount of non-tabular discount as of December, 06 is as follows: Non-Tabular Discount Schedule P lines of business Case IBNR Total Workers' compensation $,,00 $,0,0 $,8, Excess workers' compensation -,67,6,67,6 Total nontabular discount $,,00 $,7,66 $ 6,8,68 B. Changes in Discount Assumptions As noted above, the Company did not discount its workers compensation or excess workers compensation loss reserves prior to 06.. Asbestos/Environmental Reserves A. Does the Company have on the books, or has it ever written an insured for which you have identified potential for the existence of, a liability due to asbestos losses? Yes (x) No () The Company s exposure arises from the sale of general liability insurance. The Company establishes reserves from asbestos claims by establishing full case basis reserves for all known losses for incurred but not reported losses based on previous experiences. The Company s asbestos related losses (including coverage dispute costs) for each of the five most recent calendar years were as follows: ASBESTOS LOSS DATA Beginning reserves: $ 9,98 $ 6,7 $ 8,7 $,7 $ 8,00 Incurred loss & Loss $ - $ - $ - $ - adjustment expense: $,6 $ (6,) $ (,88) $ (,6) $ (0,8) Payments for loss $ - $ - $ - $ - loss adjustment expense: $ 7,79 $,8 $ (,98) $,6 $ 7 Ending reserves: $ 6,7 $ 8,7 $,7 $ 8,00 $ 7,8 Reinsurance Beginning reserves: $ - $ - $ - $ - $ - Incurred loss & Loss $ - $ - $ - $ - adjustment expense: $ - $ - $ - $ - $ - Payments for loss $ - $ - $ - $ - loss adjustment expense: $ - $ - $ - $ - $ - Ending reserves: $ - $ - $ - $ - $ - Net of Reinsurance Beginning reserves: $ - $ - $ - $ - $ - Incurred loss & Loss $ - $ - $ - $ - adjustment expense: $ - $ - $ - $ - $ - Payments for loss $ - $ - $ - $ - loss adjustment expense: $ - $ - $ - $ - $ - Ending reserves: $ - $ - $ - $ - $ - B. State the amount of the ending reserves for Bulk + IBNR included in A (Loss & LAE): i. $7,6 ii. Reinsurance $0 iii. Net of Reinsurance $0 C. State the amount of the ending reserves for loss adjustment expenses included in A (Case, Bulk, IBNR): i. $6,0 ii. Reinsurance $0 iii. Net of Reinsurance $0 (Continued).0

25 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company D. Does the Company have on the books, or has it ever written an insured for which you have identified potential for the existence of, a liability due to environmental losses? Yes (x) No () The company's exposure arises from the sale of general liability insurance. The company establishes reserves for environmenal claims by establishing full case basis reserves for all known losses for incurred but not reported losses based on previous experience. ENVIRONMENTAL LOSS DATA Beginning reserves: $ 79, $ 7,698 $ 6,67 $ 6,67 $ 76,7 Incurred loss & Loss adjustment expense: $ 9, $ (,6) $,0 $ (6,) $ (7,877) Payments for loss loss adjustment expense: $,86 $,89 $ 6,8 $,769 $ - Ending reserves: $ 7,698 $ 6,67 $ 6,67 $ 76,7 $ 68,98 Reinsurance Beginning reserves: $ - $ - $ - $ - $ - Incurred loss & Loss adjustment expense: $ - $ - $ - $ - $ - Payments for loss loss adjustment expense: $ - $ - $ - $ - $ - Ending reserves: $ - $ - $ - $ - $ - Net of Reinsurance Beginning reserves: $ - $ - $ - $ - $ - Incurred loss & Loss $ - $ - $ - $ - adjustment expense: $ - $ - $ - $ - $ - Payments for loss $ - $ - $ - $ - loss adjustment expense: $ - $ - $ - $ - $ - Ending reserves: $ - $ - $ - $ - $ - A. State the amount of the ending reserves for Bulk + IBNR included in D (Loss & LAE i. $68,98 ii. Reinsurance $0 iii. Net of Reinsurance $0 B. State the amount of the ending reserves for loss adjustment expenses included in D (Case, Bulk, IBNR): i. $,69 ii. Reinsurance $0 iii. Net of Reinsurance $0. Subscriber Savings Accounts The Company is not a reciprocal insurance company.. Multiple Peril Crop Insurance The Company does not write any multiple peril crop insurance. 6. Financial Guaranty Insurance The Company does not underwrite Financial Guaranty coverage as of December, 06..

26 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES PART - COMMON INTERROGATORIES GENERAL. Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? Yes [ X ] No [ ] If yes, complete Schedule Y, Parts, A. If yes, did the reporting entity register file with its domiciliary State Insurance Commissioner, or or Superintendent, or with such regulatory official of the state of domicile of the principal insurer in the Holding Company System, a registration statement providing disclosure substantially similar to the stards adopted by the National Association of Insurance Commissioners (NAIC) in its Model Insurance Holding Company System Regulatory Act model regulations pertaining thereto, or is the reporting entity subject to stards disclosure requirements substantially similar to those required by such Act regulations? Yes [ X ] No [ ] N/A [ ]. State Regulating? Delaware. Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? Yes [ X ] No [ ]. If yes, date of change: 0/0/06. State as of what date the latest financial examination of the reporting entity was made or is being made. //0. State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet not the date the report was completed or released. //0. State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report not the date of the examination (balance sheet date). 06//06. By what department or departments? Delaware Department of insurance. Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? Yes [ ] No [ ] N/A [ X ].6 Have all of the recommendations within the latest financial examination report been complied with? Yes [ X ] No [ ] N/A [ ]. During the period covered by this statement, did any agent, broker, sales representative, non-affiliated sales/service organization or any combination thereof under common control (other than salaried employees of the reporting entity), receive credit or commissions for or control a substantial part (more than 0 percent of any major line of business measured on direct premiums) of:. sales of new business? Yes [ ] No [ X ]. renewals? Yes [ ] No [ X ]. During the period covered by this statement, did any sales/service organization owned in whole or in part by the reporting entity or an affiliate, receive credit or commissions for or control a substantial part (more than 0 percent of any major line of business measured on direct premiums) of:. sales of new business? Yes [ X ] No [ ]. renewals? Yes [ X ] No [ ]. Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? Yes [ ] No [ X ]. If yes, provide the name of the entity, NAIC Company Code, state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation. Name of Entity NAIC Company Code State of Domicile 6. Has the reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? Yes [ ] No [ X ] 6. If yes, give full information: 7. Does any foreign (non-united States) person or entity directly or indirectly control 0% or more of the reporting entity? Yes [ ] No [ X ] 7. If yes, 7. State the percentage of foreign control; 7. State the nationality(s) of the foreign person(s) or entity(s) or if the entity is a mutual or reciprocal, the nationality of its manager or attorney-in-fact; identify the type of entity(s) (e.g., individual, corporation or government, manager or attorney in fact). % Nationality Type of Entity

27 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES 8. Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? Yes [ ] No [ X ] 8. If response to 8. is yes, please identify the name of the bank holding company. 8. Is the company affiliated with one or more banks, thrifts or securities firms? Yes [ ] No [ X ] 8. If response to 8. is yes, please provide below the names location (city state of the main office) of any affiliates regulated by a federal regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) the Securities Exchange Commission (SEC)] identify the affiliate's primary federal regulator. Affiliate Name Location (City, State) FRB OCC FDIC 6 SEC 9. What is the name address of the independent certified public accountant or accounting firm retained to conduct the annual audit? KPMG LLP Park Ave. NY, NY 0 0. Has the insurer been granted any exemptions to the prohibited non-audit services provided by the certified independent public accountant requirements as allowed in Section 7H of the Annual Financial Reporting Model Regulation (Model Audit Rule), or substantially similar state law or regulation? Yes [ ] No [ X ] 0. If the response to 0. is yes, provide information related to this exemption: 0. Has the insurer been granted any exemptions related to the other requirements of the Annual Financial Reporting Model Regulation as allowed for in Section 8A of the Model Regulation, or substantially similar state law or regulation? Yes [ ] No [ X ] 0. If the response to 0. is yes, provide information related to this exemption: 0. Has the reporting entity established an Audit Committee in compliance with the domiciliary state insurance laws? Yes [ X ] No [ ] N/A [ ] 0.6 If the response to 0. is no or n/a, please explain. What is the name, address affiliation (officer/employee of the reporting entity or actuary/consultant associated with an actuarial consulting firm) of the individual providing the statement of actuarial opinion/certification? Ronald T. Kuehn Huggins Actuarial Services, Inc. Veterans Square, nd Floor Media, PA 906. Does the reporting entity own any securities of a real estate holding company or otherwise hold real estate indirectly? Yes [ X ] No [ ]. Name of real estate holding company IC Building Company LLC IC Building Company LLC. Number of parcels involved. Total book/adjusted carrying value $,7,776. If, yes provide explanation: Minority investment in real estate via equity interests in limited partnerships (IC Building Company LLC- parcels & IC Building Company LLC- 9 parcels). FOR UNITED STATES BRANCHES OF ALIEN REPORTING ENTITIES ONLY:. What changes have been made during the year in the United States manager or the United States trustees of the reporting entity?. Does this statement contain all business transacted for the reporting entity through its United States Branch on risks wherever located? Yes [ ] No [ ]. Have there been any changes made to any of the trust indentures during the year? Yes [ ] No [ ]. If answer to (.) is yes, has the domiciliary or entry state approved the changes? Yes [ ] No [ ] N/A [ ]. Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions) of the reporting entity subject to a code of ethics, which includes the following stards? Yes [ X ] No [ ] (a) Honest ethical conduct, including the ethical hling of actual or apparent conflicts of interest between personal professional relationships; (b) Full, fair, accurate, timely understable disclosure in the periodic reports required to be filed by the reporting entity; (c) Compliance with applicable governmental laws, rules regulations; (d) The prompt internal reporting of violations to an appropriate person or persons identified in the code; (e) Accountability for adherence to the code.. If the response to. is No, please explain:. Has the code of ethics for senior managers been amended? Yes [ ] No [ X ]. If the response to. is yes, provide information related to amendment(s).. Have any provisions of the code of ethics been waived for any of the specified officers? Yes [ ] No [ X ]. If the response to. is yes, provide the nature of any waiver(s)..

28 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES. Is the reporting entity the beneficiary of a Letter of Credit that is unrelated to reinsurance where the issuing or confirming bank is not on the SVO Bank List? Yes [ ] No [ X ]. If the response to. is yes, indicate the American Bankers Association (ABA) Routing Number the name of the issuing or confirming bank of the Letter of Credit describe the circumstances in which the Letter of Credit is triggered. American Bankers Association (ABA) Routing Number Issuing or Confirming Bank Name Circumstances That Can Trigger the Letter of Credit Amount BOARD OF DIRECTORS 6. Is the purchase or sale of all investments of the reporting entity passed upon either by the board of directors or a subordinate committee thereof? Yes [ X ] No [ ] 7. Does the reporting entity keep a complete permanent record of the proceedings of its board of directors all subordinate committees thereof? Yes [ X ] No [ ] 8. Has the reporting entity an established procedure for disclosure to its board of directors or trustees of any material interest or affiliation on the part of any of its officers, directors, trustees or responsible employees that is in conflict with the official duties of such person? Yes [ X ] No [ ] FINANCIAL 9. Has this statement been prepared using a basis of accounting other than Statutory Accounting Principles (e.g., Generally Accepted Accounting Principles)? Yes [ ] No [ X ] 0. Total amount loaned during the year (inclusive of Separate Accounts, exclusive of policy loans): 0. To directors or other officers $ 0. To stockholders not officers $ 0. Trustees, supreme or gr (Fraternal Only) $ 0. Total amount of loans outsting at the end of year (inclusive of Separate Accounts, exclusive of policy loans): 0. To directors or other officers $ 0. To stockholders not officers $ 0. Trustees, supreme or gr (Fraternal Only) $. Were any assets reported in this statement subject to a contractual obligation to transfer to another party without the liability for such obligation being reported in the statement? Yes [ ] No [ X ]. If yes, state the amount thereof at December of the current year:. Rented from others $. Borrowed from others $. Leased from others $. Other $. Does this statement include payments for assessments as described in the Annual Statement Instructions other than guaranty fund or guaranty association assessments? Yes [ ] No [ X ]. If answer is yes:. Amount paid as losses or risk adjustment $. Amount paid as expenses $. Other amounts paid $. Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page of this statement? Yes [ ] No [ X ]. If yes, indicate any amounts receivable from parent included in the Page amount: $ INVESTMENT.0 Were all the stocks, bonds other securities owned December of current year, over which the reporting entity has exclusive control, in the actual possession of the reporting entity on said date? (other than securities lending programs addressed in.0) Yes [ X ] No [ ].0 If no, give full complete information relating thereto.0 For security lending programs, provide a description of the program including value for collateral amount of loaned securities, whether collateral is carried on or off-balance sheet. (an alternative is to reference Note 7 where this information is also provided).0 Does the Company's security lending program meet the requirements for a conforming program as outlined in the Risk-Based Capital Instructions? Yes [ ] No [ ] N/A [ X ].0 If answer to.0 is yes, report amount of collateral for conforming programs. $.06 If answer to.0 is no, report amount of collateral for other programs. $.07 Does your securities lending program require 0% (domestic securities) 0% (foreign securities) from the counterparty at the outset of the contract? Yes [ ] No [ ] N/A [ X ].08 Does the reporting entity non-admit when the collateral received from the counterparty falls below 00%? Yes [ ] No [ ] N/A [ X ].09 Does the reporting entity or the reporting entity s securities lending agent utilize the Master Securities lending Agreement (MSLA) to conduct securities lending? Yes [ ] No [ ] N/A [ X ].

29 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES.0 For the reporting entity s security lending program state the amount of the following as December of the current year:.0 Total fair value of reinvested collateral assets reported on Schedule DL, Parts. $.0 Total book adjusted/carrying value of reinvested collateral assets reported on Schedule DL, Parts $.0 Total payable for securities lending reported on the liability page. $. Were any of the stocks, bonds or other assets of the reporting entity owned at December of the current year not exclusively under the control of the reporting entity, or has the reporting entity sold or transferred any assets subject to a put option contract that is currently in force? (Exclude securities subject to Interrogatory..0). Yes [ X ] No [ ]. If yes, state the amount thereof at December of the current year:. Subject to repurchase agreements $. Subject to reverse repurchase agreements $. Subject to dollar repurchase agreements $. Subject to reverse dollar repurchase agreements $. Placed under option agreements $.6 Letter stock or securities restricted as to sale - excluding FHLB Capital Stock $.7 FHLB Capital Stock $.8 On deposit with states $ 7,,90.9 On deposit with other regulatory bodies $.0 Pledged as collateral - excluding collateral pledged to an FHLB $. Pledged as collateral to FHLB - including assets backing funding agreements $. Other $. For category (.6) provide the following: Nature of Restriction Description Amount 6. Does the reporting entity have any hedging transactions reported on Schedule DB? Yes [ ] No [ X ] 6. If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes [ ] No [ ] N/A [ X ] If no, attach a description with this statement. 7. Were any preferred stocks or bonds owned as of December of the current year matorily convertible into equity, or, at the option of the issuer, convertible into equity? Yes [ ] No [ X ] 7. If yes, state the amount thereof at December of the current year. $ 8. Excluding items in Schedule E - Part - Special Deposits, real estate, mortgage loans investments held physically in the reporting entity's offices, vaults or safety deposit boxes, were all stocks, bonds other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section, III - General Examination Considerations, F. Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Hbook? Yes [ X ] No [ ] 8.0 For agreements that comply with the requirements of the NAIC Financial Condition Examiners Hbook, complete the following: JP Morgan Chase Name of Custodian(s) Chase Metro Tech Center Brooklyn, NY Custodian's Address 8.0 For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Hbook, provide the name, location a complete explanation: Name(s) Location(s) Complete Explanation(s) 8.0 Have there been any changes, including name changes, in the custodian(s) identified in 8.0 during the current year? Yes [ ] No [ X ] 8.0 If yes, give full complete information relating thereto: Old Custodian New Custodian Date of Change Reason.

30 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES 8.0 Investment management Identify all investment advisors, investment managers, broker/dealers, including individuals that have the authority to make investment decisions on behalf of the reporting entity. For assets that are managed internally by employees of the reporting entity, note as such. [" that have access to the investment accounts"; " hle securities"] Name of Firm or Individual Nathan Hasson - Amtrust Financial Services, Inc. (Parent) Albert Hasson - Amtrust Financial Services, Inc. (Parent) Todd Jaeger - Amtrust Financial Services, Inc. (Parent) Josh Notkin - Amtrust Financial Services, Inc. (Parent) John Kepner - Amtrust Financial Services, Inc. (Parent) Larry Heller - Amtrust Financial Services, Inc. (Parent) A A A A A A Affiliation For those firms/individuals listed in the table for Question 8.0, do any firms/individuals unaffiliated with the reporting entity (i.e. designated with a "U") manage more than 0% of the reporting entity s assets? Yes [ ] No [ X ] For firms/individuals unaffiliated with the reporting entity (i.e. designated with a "U") listed in the table for Question 8.0, does the total assets under management aggregate to more than 0% of the reporting entity s assets? Yes [ ] No [ X ] 8.06 For those firms or individuals listed in the table for 8.0 with an affiliation code of "A" (affiliated) or "U" (unaffiliated), provide the information for the table below. N/A N/A N/A N/A N/A N/A Central Registration Depository Number Name of Firm or Individual Legal Entity Identifier (LEI) Registered With Investment Management Agreement (IMA) Filed Nathan Hasson - Amtrust Financial Services, Inc. (Parent) N/A N/A DS Albert Hasson - Amtrust Financial Services, Inc. (Parent) N/A N/A DS Todd Jaeger - Amtrust Financial Services, Inc. (Parent) N/A N/A DS Josh Notkin - Amtrust Financial Services, Inc. (Parent) N/A N/A DS John Kepner - Amtrust Financial Services, Inc. (Parent) N/A N/A DS Larry Heller - Amtrust Financial Services, Inc. (Parent) N/A N/A DS 9. Does the reporting entity have any diversified mutual funds reported in Schedule D, Part (diversified according to the Securities Exchange Commission (SEC) in the Investment Company Act of 90 [Section (b)()])? Yes [ ] No [ X ] 9. If yes, complete the following schedule: CUSIP # Total Name of Mutual Fund Book/Adjusted Carrying Value 9. For each mutual fund listed in the table above, complete the following schedule: Name of Mutual Fund (from above table) Name of Significant Holding of the Mutual Fund Amount of Mutual Fund's Book/Adjusted Carrying Value Attributable to the Holding Date of Valuation 0. Provide the following information for all short-term long-term bonds all preferred stocks. Do not substitute amortized value or statement value for fair value. Statement (Admitted) Value Excess of Statement over Fair Value (-), or Fair Value over Statement (+) Fair Value 0. Bonds 8,7,8 88,9,7,68,69 0. Preferred stocks 0. Totals 8,7,8 88,9,7,68,69 0. Describe the sources or methods utilized in determining the fair values: Intercontinental Exchange (Interactive Data Corporation). Was the rate used to calculate fair value determined by a broker or custodian for any of the securities in Schedule D? Yes [ ] No [ X ]. If the answer to. is yes, does the reporting entity have a copy of the broker s or custodian s pricing policy (hard copy or electronic copy) for all brokers or custodians used as a pricing source? Yes [ ] No [ ]. If the answer to. is no, describe the reporting entity s process for determining a reliable pricing source for purposes of disclosure of fair value for Schedule D:. Have all the filing requirements of the Purposes Procedures Manual of the NAIC Investment Analysis Office been followed? Yes [ X ] No [ ]. If no, list exceptions:.

31 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES OTHER. Amount of payments to trade associations, service organizations statistical or rating bureaus, if any? $,7,. List the name of the organization the amount paid if any such payment represented % or more of the total payments to trade associations, service organizations statistical or rating bureaus during the period covered by this statement. Name Amount Paid National Council on Compensation Insurance (NCCI) 89,06. Amount of payments for legal expenses, if any? $ 7,7. List the name of the firm the amount paid if any such payment represented % or more of the total payments for legal expenses during the period covered by this statement. Name Amount Paid Mitchell/Williams 9,87 BAYARD P.A.,877. Amount of payments for expenditures in connection with matters before legislative bodies, officers or departments of government, if any? $. List the name of the firm the amount paid if any such payment represented % or more of the total payment expenditures in connection with matters before legislative bodies, officers or departments of government during the period covered by this statement. Name Amount Paid.

32 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES PART - PROPERTY AND CASUALTY INTERROGATORIES. Does the reporting entity have any direct Medicare Supplement Insurance in force? Yes [ ] No [ X ]. If yes, indicate premium earned on U. S. business only. $. What portion of Item (.) is not reported on the Medicare Supplement Insurance Experience Exhibit? $. Reason for excluding. Indicate amount of earned premium attributable to Canadian /or Other Alien not included in Item (.) above. $. Indicate total incurred claims on all Medicare Supplement Insurance. $.6 Individual policies: Most current three years:.6 Total premium earned $.6 Total incurred claims $.6 Number of covered lives All years prior to most current three years.6 Total premium earned $.6 Total incurred claims $.66 Number of covered lives.7 Group policies: Most current three years:.7 Total premium earned $.7 Total incurred claims $.7 Number of covered lives All years prior to most current three years.7 Total premium earned $.7 Total incurred claims $.76 Number of covered lives. Health Test: Current Year Prior Year. Premium Numerator. Premium Denominator 96,97,88 09,67,9. Premium Ratio (./.) Reserve Numerator. Reserve Denominator 6,076,606 6,00,09.6 Reserve Ratio (./.) Does the reporting entity issue both participating non-participating policies? Yes [ ] No [ X ]. If yes, state the amount of calendar year premiums written on:. Participating policies $. Non-participating policies $. For mutual reporting Entities Reciprocal Exchanges Only:. Does the reporting entity issue assessable policies? Yes [ ] No [ X ]. Does the reporting entity issue non-assessable policies? Yes [ ] No [ X ]. If assessable policies are issued, what is the extent of the contingent liability of the policyholders? %. Total amount of assessments paid or ordered to be paid during the year on deposit notes or contingent premiums. $. For Reciprocal Exchanges Only:. Does the Exchange appoint local agents? Yes [ ] No [ ]. If yes, is the commission paid:. Out of Attorney's-in-fact compensation Yes [ ] No [ ] N/A [ ]. As a direct expense of the exchange Yes [ ] No [ ] N/A [ ]. What expenses of the Exchange are not paid out of the compensation of the Attorney-in-fact?. Has any Attorney-in-fact compensation, contingent on fulfillment of certain conditions, been deferred? Yes [ ] No [ ]. If yes, give full information 6

33 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES PART - PROPERTY AND CASUALTY INTERROGATORIES 6. What provision has this reporting entity made to protect itself from an excessive loss in the event of a catastrophe under a workers compensation contract issued without limit of loss? The Company reinsures its Workers' Compensation risks to external reinsurers as follows: $0m xs $0m - 00% covered on a per occurrence basis; $67.0m xs $0m - 00% covered on a catastrophe basis. In addition, there is a $0m coverage for earthquake only with 87.% placement, a terrorism (NBCR) layer; $00m xs $70m which is 00% placed. The program, including the additional $0m earthquake layer, covers losses up to :,97 year return time using RMS AIR blended modeling. In addition, the Company reinsures 70% of its net risk (net of external reinsurance) to affiliated companies. 6. Describe the method used to estimate this reporting entity s probable maximum insurance loss, identify the type of insured exposures comprising that probable maximum loss, the locations of concentrations of those exposures the external resources (such as consulting firms or computer software models), if any, used in the estimation process. The Company uses historical relevant industry loss development factors to arrive at its ultimate probable loss reserve & loss adjustment expense reserves. The Company has internal external actuaries review its insurance loss position periodically. We also work with our reinsurance brokers to model our losses (both WC Property) throughout the USA. We use various modeling tools such as RMS, AIR, PML, SRQ stress test modeler Catastrophe mapping tools to identify our risk concentration risk spread in order to estimate our maximum probable loss. 6. What provision has this reporting entity made (such as a catastrophic reinsurance program) to protect itself from an excessive loss arising from the types concentrations of insured exposures comprising its probable maximum property insurance loss? The Company reinsures its property risks to external reinsurers as follows: Facultative property coverage upto $7m. $m xs $m property per risk at 00% coverage. The Company's property catastrophe program covers $0m xs $0m at 00%. In addition, there is a special $0m layer for earthquake, wind, storm, tornado, hail, which is 87.% placed. The property catastrophe program, including the special $0m layer, covers losses up to : year return using AIR modeling. In addition, the Company has underwriting guidelines which define limit its risk from an underwriting stpoint so as to avoid certain types of catastrophic risks avoid concentration of risk. 6. Does the reporting entity carry catastrophe reinsurance protection for at least one reinstatement, in an amount sufficient to cover its estimated probable maximum loss attributable to a single loss event or occurrence? Yes [ X ] No [ ] 6. If no, describe any arrangements or mechanisms employed by the reporting entity to supplement its catastrophe reinsurance program or to hedge its exposure to unreinsured catastrophic loss. 7. Has this reporting entity reinsured any risk with any other entity under a quota share reinsurance contract that includes a provision that would limit the reinsurer's losses below the stated quota share percentage (e.g., a deductible, a loss ratio corridor, a loss ratio cap, an aggregate limit or any similar provisions)? Yes [ ] No [ X ] 7. If yes, indicate the number of reinsurance contracts containing such provisions: 7. If yes, does the amount of reinsurance credit taken reflect the reduction in quota share coverage caused by any applicable limiting provision(s)? Yes [ ] No [ ] 8. Has this reporting entity reinsured any risk with any other entity agreed to release such entity from liability, in whole or in part, from any loss that may occur on this risk, or portion thereof, reinsured? Yes [ ] No [ X ] 8. If yes, give full information 9. Has the reporting entity ceded any risk under any reinsurance contract (or under multiple contracts with the same reinsurer or its affiliates) for which during the period covered by the statement: (i) it recorded a positive or negative underwriting result greater than % of prior year-end surplus as regards policyholders or it reported calendar year written premium ceded or year-end loss loss expense reserves ceded greater than % of prior year-end surplus as regards policyholders; (ii) it accounted for that contract as reinsurance not as a deposit; (iii) the contract(s) contain one or more of the following features or other features that would have similar results: (a) A contract term longer than two years the contract is noncancellable by the reporting entity during the contract term; (b) A limited or conditional cancellation provision under which cancellation triggers an obligation by the reporting entity, or an affiliate of the reporting entity, to enter into a new reinsurance contract with the reinsurer, or an affiliate of the reinsurer; (c) Aggregate stop loss reinsurance coverage; (d) A unilateral right by either party (or both parties) to commute the reinsurance contract, whether conditional or not, except for such provisions which are only triggered by a decline in the credit status of the other party; (e) A provision permitting reporting of losses, or payment of losses, less frequently than on a quarterly basis (unless there is no activity during the period); or (f) Payment schedule, accumulating retentions from multiple years or any features inherently designed to delay timing of the reimbursement to the ceding entity. Yes [ ] No [ X ] 9. Has the reporting entity during the period covered by the statement ceded any risk under any reinsurance contract (or under multiple contracts with the same reinsurer or its affiliates), for which, during the period covered by the statement, it recorded a positive or negative underwriting result greater than % of prior year-end surplus as regards policyholders or it reported calendar year written premium ceded or year-end loss loss expense reserves ceded greater than % of prior year-end surplus as regards policyholders; excluding cessions to approved pooling arrangements or to captive insurance companies that are directly or indirectly controlling, controlled by, or under common control with (i) one or more unaffiliated policyholders of the reporting entity, or (ii) an association of which one or more unaffiliated policyholders of the reporting entity is a member where: (a) The written premium ceded to the reinsurer by the reporting entity or its affiliates represents fifty percent (0%) or more of the entire direct assumed premium written by the reinsurer based on its most recently available financial statement; or (b) Twenty-five percent (%) or more of the written premium ceded to the reinsurer has been retroceded back to the reporting entity or its affiliates in a separate reinsurance contract. Yes [ ] No [ X ] 9. If yes to 9. or 9., please provide the following information in the Reinsurance Summary Supplemental Filing for General Interrogatory 9: (a) The aggregate financial statement impact gross of all such ceded reinsurance contracts on the balance sheet statement of income; (b) A summary of the reinsurance contract terms indicate whether it applies to the contracts meeting the criteria in 9. or 9.; (c) A brief discussion of management s principle objectives in entering into the reinsurance contract including the economic purpose to be achieved. 9. Except for transactions meeting the requirements of paragraph of SSAP No. 6R, Property Casualty Reinsurance, has the reporting entity ceded any risk under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statement, either: (a) Accounted for that contract as reinsurance (either prospective or retroactive) under statutory accounting principles ( SAP ) as a deposit under generally accepted accounting principles ( GAAP ); or (b) Accounted for that contract as reinsurance under GAAP as a deposit under SAP? Yes [ ] No [ X ] 9. If yes to 9., explain in the Reinsurance Summary Supplemental Filing for General Interrogatory 9 (Section D) why the contract(s) is treated differently for GAAP SAP. 9.6 The reporting entity is exempt from the Reinsurance Attestation Supplement under one or more of the following criteria: (a) The entity does not utilize reinsurance; or, Yes [ ] No [ X ] (b) The entity only engages in a 00% quota share contract with an affiliate the affiliated or lead company has filed an attestation supplement; or Yes [ ] No [ X ] (c) The entity has no external cessions only participates in an intercompany pool the affiliated or lead company has filed an attestation supplement. Yes [ ] No [ X ] 0. If the reporting entity has assumed risks from another entity, there should be charged on account of such reinsurances a reserve equal to that which the original entity would have been required to charge had it retained the risks. Has this been done? Yes [ X ] No [ ] N/A [ ] 6.

34 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES PART - PROPERTY AND CASUALTY INTERROGATORIES. Has the reporting entity guaranteed policies issued by any other entity now in force? Yes [ ] No [ X ]. If yes, give full information. If the reporting entity recorded accrued retrospective premiums on insurance contracts on Line. of the asset schedule, Page, state the amount of corresponding liabilities recorded for:. Unpaid losses $. Unpaid underwriting expenses (including loss adjustment expenses) $. Of the amount on Line., Page, state the amount which is secured by letters of credit, collateral, other funds $. If the reporting entity underwrites commercial insurance risks, such as workers compensation, are premium notes or promissory notes accepted from its insureds covering unpaid premiums /or unpaid losses? Yes [ ] No [ X ] N/A [ ]. If yes, provide the range of interest rates charged under such notes during the period covered by this statement:. From %. To %. Are letters of credit or collateral other funds received from insureds being utilized by the reporting entity to secure premium notes or promissory notes taken by a reporting entity, or to secure any of the reporting entity s reported direct unpaid loss reserves, including unpaid losses under loss deductible features of commercial policies? Yes [ ] No [ X ].6 If yes, state the amount thereof at December of the current year:.6 Letters of credit $.6 Collateral other funds $. Largest net aggregate amount insured in any one risk (excluding workers compensation): $ 900,000. Does any reinsurance contract considered in the calculation of this amount include an aggregate limit of recovery without also including a reinstatement provision? Yes [ ] No [ X ]. State the number of reinsurance contracts (excluding individual facultative risk certificates, but including facultative programs, automatic facilities or facultative obligatory contracts) considered in the calculation of the amount.. Is the company a cedant in a multiple cedant reinsurance contract? Yes [ X ] No [ ]. If yes, please describe the method of allocating recording reinsurance among the cedants: Reinsurance premium rates are provided applied against each company's direct premiums. Reinsurance premium payments are made by AmTrust Financial Services, Inc. subsequently billed to the paraticipating companies by way of an intercompany reimbursement.. If the answer to. is yes, are the methods described in item. entirely contained in the respective multiple cedant reinsurance contracts? Yes [ X ] No [ ]. If the answer to. is no, are all the methods described in. entirely contained in written agreements? Yes [ ] No [ ]. If the answer to. is no, please explain:. Has the reporting entity guaranteed any financed premium accounts? Yes [ ] No [ X ]. If yes, give full information 6. Does the reporting entity write any warranty business? Yes [ X ] No [ ] If yes, disclose the following information for each of the following types of warranty coverage: Losses Incurred Losses Unpaid Written Premium Premium Unearned Premium Earned 6. Home 6. Products 6. Automobile 0,7,,,96,69 6,8 6. Other* * Disclose type of coverage: 6.

35 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company GENERAL INTERROGATORIES PART - PROPERTY AND CASUALTY INTERROGATORIES 7. Does the reporting entity include amounts recoverable on unauthorized reinsurance in Schedule F - Part that it excludes from Schedule F - Part? Yes [ ] No [ X ] Incurred but not reported losses on contracts in force prior to July, 98, not subsequently renewed are exempt from inclusion in Schedule F - Part. Provide the following information for this exemption: 7. Gross amount of unauthorized reinsurance in Schedule F - Part excluded from Schedule F - Part $ 7. Unfunded portion of Interrogatory 7. $ 7. Paid losses loss adjustment expenses portion of Interrogatory 7. $ 7. Case reserves portion of Interrogatory 7. $ 7. Incurred but not reported portion of Interrogatory 7. $ 7.6 Unearned premium portion of Interrogatory 7. $ 7.7 Contingent commission portion of Interrogatory 7. $ Provide the following information for all other amounts included in Schedule F - P art excluded from Schedule F - Part, not included above. 7.8 Gross amount of unauthorized reinsurance in Schedule F - Part excluded from Schedule F - Part $ 7.9 Unfunded portion of Interrogatory 7.8 $ 7.0 Paid losses loss adjustment expenses portion of Interrogatory 7.8 $ 7. Case reserves portion of Interrogatory 7.8 $ 7. Incurred but not reported portion of Interrogatory 7.8 $ 7. Unearned premium portion of Interrogatory 7.8 $ 7. Contingent commission portion of Interrogatory 7.8 $ 8. Do you act as a custodian for health savings accounts? Yes [ ] No [ X ] 8. If yes, please provide the amount of custodial funds held as of the reporting date. $ 8. Do you act as an administrator for health savings accounts? Yes [ ] No [ X ] 8. If yes, please provide the balance of funds administered as of the reporting date. $ 6.

36 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company FIVE-YEAR HISTORICAL DATA Show amounts in whole dollars only, no cents; show percentages to one decimal place, i.e Gross Premiums Written (Page 8, Part B Cols., & ). Liability lines (Lines.,., 6, 7., 7., 7., 8., 8., 9., 9. & 9., 9.) 79,67,6 7,8,87 6,9,76,66,6 6,86,08. Property lines (Lines,, 9,, & 6),0,9 8,0,,796,779,,,9,70. Property liability combined lines (Lines,,, 8, & 7),7,,7,009 7,90,69,7,,676,8. All other lines (Lines 6, 0,,,,,, 8, 9, 0 & ),9,79,8,800 9,90,7,0,7,,8. Nonproportional reinsurance lines (Lines, & ) 6. Total (Line ) 8,7, ,9,09 6,69,89 9,,77 9,69,87 Net Premiums Written (Page 8, Part B, Col. 6) 7. Liability lines (Lines.,., 6, 7., 7., 7., 8., 8., 9., 9. & 9., 9.) 6,6,96 6,7, 60,66,89,7,77,79,0 8. Property lines (Lines,, 9,, & 6),6,,098,96,8,,00,66,80,68 9. Property liability combined lines (Lines,,, 8, & 7),99,989,99, 66,70 8,06 9,66 0. All other lines (Lines 6, 0,,,,,, 8, 9, 0 & ),67,867,90,79 89,,0,8,,9. Nonproportional reinsurance lines (Lines, & ). Total (Line ) 8,9,07,0,78 6,,9,70,00 8,00,706 Statement of Income (Page ) Net underwriting gain (loss) (Line 8) 7,70,00,00,9 8,60,7 9,98,06,60,8. Net investment gain or (loss) (Line ),76,78 6,69,9 0,8,89,98,70,86,9. Total other income (Line ) (,80) 7,007 06,778 (66,7) (0,699) 6. Dividends to policyholders (Line 7),7,86,7,,08,06 698,067, 7. Federal foreign income taxes incurred (Line 9),976,78 8,,90 7,66,77 9,,68 6,86,86 8. Net income (Line 0),0,6 0,7, 0,668,06,0,0 0,6,68 Balance Sheet Lines (Pages ) 9. Total admitted assets excluding protected cell business (Page, Line 6, Col. ),0,877,99 99,,87 70,70,8 9,0,07,76,78 0. Premiums considerations (Page, Col. ) 0. In course of collection (Line.) 7,867,080,990,70 8,7,8 7,7,976 7,60,6 0. Deferred not yet due (Line.) 0,0,7 88,6,6 60,78,69 6,909,6 69,908,8 0. Accrued retrospective premiums (Line.). Total liabilities excluding protected cell business (Page, Line 6) 987,76,0 8,880,07 77,97,889 9,,68 8,,70. Losses (Page, Line ),07,8 8,78,67 7,7,8 7,8,,07,97. Loss adjustment expenses (Page, Line ),800,9 9,98,80,7,96 6,,98,66,9. Unearned premiums (Page, Line 9) 9,7,7 60,9,0 6,086, 9,79,87,0,09. Capital paid up (Page, Lines 0 & ),000,000,000,000,000,000,000,000,000, Surplus as regards policyholders (Page, Line 7) 7,6,79 9,,7,7,9 79,780,6,9,78 Cash Flow (Page ) 7. Net cash from operations (Line ) 87,,99 08,76, (0,06,069) (,9,77) (,688,7) Risk-Based Capital Analysis 8. Total adjusted capital 0,6,07 9,,7,7,9 79,780,6,9,78 9. Authorized control level risk-based capital 8,00,07,987,7,878,,7,09,0,7 Percentage Distribution of Cash, Cash Equivalents Invested Assets (Page, Col. ) (Line divided by Page, Line, Col. ) x Bonds (Line ) Stocks (Lines. &.)... Mortgage loans on real estate (Lines..). Real estate (Lines.,. &.). Cash, cash equivalents short-term investments (Line ) Contract loans (Line 6) 6. Derivatives (Line 7) 7. Other invested assets (Line 8) Receivables for securities (Line 9) Securities lending reinvested collateral assets (Line 0) 0. Aggregate write-ins for invested assets (Line ). Cash, cash equivalents invested assets (Line ) Investments in Parent, Subsidiaries Affiliates. Affiliated bonds (Schedule D, Summary, Line, Col. ). Affiliated preferred stocks (Schedule D, Summary, Line 8, Col. ). Affiliated common stocks (Schedule D, Summary, Line, Col. ) 7,,86,07,0. Affiliated short-term investments (subtotals included in Schedule DA Verification, Col., Line 0) 6. Affiliated mortgage loans on real estate 7. All other affiliated 8. Total of above Lines to 7 7,,86,07,0 9. Total Investment in Parent included in Lines to 7 above 0. Percentage of investments in parent, subsidiaries affiliates to surplus as regards policyholders (Line 8 above divided by Page, Col., Line 7 x 00.0)

37 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company FIVE-YEAR HISTORICAL DATA 06 (Continued) Capital Surplus Accounts (Page ). Net unrealized capital gains (losses) (Line ),79,0,0,80. Dividends to stockholders (Line ). Change in surplus as regards policyholders for the year (Line 8) 67,60,0,807,9,799,6 8,86,08 9,70,89 Gross Losses Paid (Page 9, Part, Cols. & ). Liability lines (Lines.,., 6, 7., 7., 7., 8., 8., 9., 9. & 9., 9.) 7,9,0 78,69,777 0,07,8 9,096,,6,977. Property lines (Lines,, 9,, & 6),99,66,79,9 0,0,868 0,906,776 0,,0 6. Property liability combined lines (Lines,,, 8, & 7),8,979,7,8,97,677,,9 68, All other lines (Lines 6, 0,,,,,, 8, 9, 0 & ) 8,0,07,,,089,9,,7,68, 8. Nonproportional reinsurance lines (Lines, & ) 9. Total (Line ) 8,906,87 9,66,999 0,9, 7,66,609 7,,90 Net Losses Paid (Page 9, Part, Col. ) 60. Liability lines (Lines.,., 6, 7., 7., 7., 8., 8., 9., 9. & 9., 9.),796,88 9,78,9 0,0,6,90,8,788,6 6. Property lines (Lines,, 9,, & 6),7,60,77,69 889,7 9,0 790,79 6. Property liability combined lines (Lines,,, 8, & 7) 9,6 9, 8,879 0,0, 6. All other lines (Lines 6, 0,,,,,, 8, 9, 0 & ) 8, 68, 08,96, 6,8 6. Nonproportional reinsurance lines (Lines, & ) 6. Total (Line ) 9,7,6,0,68,9,9 6,6,7,78, Operating Percentages (Page ) (Line divided by Page, Line ) x Premiums earned (Line ) Losses incurred (Line ) Loss expenses incurred (Line ) Other underwriting expenses incurred (Line ) 7. (.) (6.8) (.9) (7.) 70. Net underwriting gain (loss) (Line 8) Other Percentages 7. Other underwriting expenses to net premiums written (Page, Lines + - divided by Page 8, Part B, Col. 6, Line x 00.0).8 (9.7) (.) (9.) (.6) 7. Losses loss expenses incurred to premiums earned (Page, Lines + divided by Page, Line x 00.0) Net premiums written to policyholders surplus (Page 8, Part B, Col. 6, Line divided by Page, Line 7, Col. x 00.0) One Year Loss Development (000 omitted) 7. Development in estimated losses loss expenses incurred prior to current year (Schedule P - Part - Summary, Line, Col. ) (,690),9,6, Percent of development of losses loss expenses incurred to policyholders surplus of prior year end (Line 7 above divided by Page, Line, Col. x 00.0) (.8) Two Year Loss Development (000 omitted) 76. Development in estimated losses loss expenses incurred two years before the current year prior year (Schedule P, Part - Summary, Line, Col. ),,68,990,9 () 77. Percent of development of losses loss expenses incurred to reported policyholders surplus of second prior year end (Line 76 above divided by Page, Line, Col. x 00.0) (.) NOTE: If a party to a merger, have the two most recent years of this exhibit been restated due to a merger in compliance with the disclosure requirements of SSAP No., Accounting Changes Correction of Errors? Yes [ ] No [ ] If no, please explain: 8

38 9.GT * * ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company EXHIBIT OF PREMIUMS AND LOSSES (Statutory Page ) NAIC Group Code 8 BUSINESS IN THE STATE OF Gr Total DURING THE YEAR 06 NAIC Company Code 9879 Gross Premiums, Including Policy Membership Fees, Less Return Premiums Premiums on Policies not Taken Dividends Paid Defense 9 Defense 0 Defense Cost Line of Business Premiums Written Premiums Earned or Credited to Policyholders on Business Unearned Premium Reserves Losses Paid (deducting salvage) Losses Incurred Losses Unpaid Cost Containment Expense Paid Cost Containment Expense Incurred Containment Expense Unpaid Commissions Brokerage Expenses Taxes, Licenses Fees. Fire,67,68,0,7,90,,06,698 90, ,78 6,97 66, 8,8 67,709,8. Allied lines,66, 6,09,0,0,66,,,0,00,,0 7,0,966 9,6 998,086,. Multiple peril crop. Federal flood.. Private crop. Private flood. Farmowners multiple peril (,97),000, (,88),. Homeowners multiple peril (78). Commercial multiple peril (non-liability portion) 8,8,06 6,,66,79,76,7,78 6,09,0,88,9, 8,7 99,7,7,0 60,8. Commercial multiple peril (liability portion) 6,9,,6,88,9,06 09,67,60,6 7,08,66,8 88,97,07,60,8, 9, 6. Mortgage guaranty 8. Ocean marine 9. Inl marine,87,097,79,,8,00 6,706 8,0 89,0,9 8,9,8 6,8 69,8 0. Financial guaranty. Medical professional liability. Earthquake 8,67 7,77 8,08,096,8 9 8,70,. Group accident health (b). Credit accident health (group individual). Collectively renewable accident health (b). Non-cancelable accident health(b). Guaranteed renewable accident health(b). Non-renewable for stated reasons only (b). Other accident only.6 Medicare Title XVIII exempt from state taxes or fees.7 All other accident health (b).8 Federal employees health benefits plan premium (b) 6. Workers' compensation 608,89,988 60,60,6,7,86 0,, 6,6,79 6,0,66 8,697,68,8,9 60,,80 9,6,07 78,80,6 7,6, Other Liability - occurrence 98,069,979 0,990,60 6,99,700 7,6,7 9,86,0 0,,66 0,80,8 6,60,97,7,7,,78,, Other Liability - claims made 6,6 7. Excess workers' compensation 0,960,6,6,7 9,66, 9,66,9 9,,,880,97 6,909,66,6,9,7 96,76 8. Products liability,0,699,69,87,09, 0,66,60,86,08,766,06 6,6,879 0,0,6 6,9, 9,,88 9. Private passenger auto no-fault (personal injury protection) 9. Other private passenger auto liability (,0) (,0),07,07 9. Commercial auto no-fault (personal injury protection),68 8, 6,7 06,999 8,70 8,90,09 7,90 7,876,9, 9. Other commercial auto liability 0,8,,7,00 7,608,88 6,07,779,80,97 9,797,86,,7,08,670,698,68 6,,8,09,9. Private passenger auto physical damage (,) (,7) () Commercial auto physical damage 8,7,7 7,68,98,66,8 6,7, 7,897,0,67,8 0,6 89,099 00,8,,96 9,. Aircraft (all perils). Fidelity 6,96,7,667,6 6,6,69 6,796,77,779,,789,66,96 69,9 6,76,9,7 90,6. Surety 96,77 7,7 69,8 (7,79) 77,906 68,97 7,7 6. Burglary theft 6,87 67,,8 (,6) 99,99 (,897), 7,9, Boiler machinery 6,097,0,00,98 9,68,6 6 6, Credit 88,786 88,786 9,0 8,070 66,96 (9),86,89 0. Warranty,, 6,8,96,69 0,7 0,7 0,8,7. Aggregate write-ins for other lines of business. TOTALS (a) 87,7,778 87,,60,7,86,7,708 8,86,67 08,6, 79,9,9 7,88,06 9,08,6 8,6,9 7,9,88,89,070 DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) (a) Finance service charges not included in Lines to $,09,8 (b) For health business on indicated lines report: Number of persons insured under PPO managed care products number of persons insured under indemnity only products.

39 0 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) Reinsurance On Amount of Assets Pledged or NAIC Funds Held By or Compensating Company Paid Losses Contingent Deposited With Balances to Domiciliary Loss Adjustment Known Case Commissions Premiums Unearned Reinsured Letters of Credit Secure Letters of Code Name of Reinsured Jurisdiction Premium Expenses Losses LAE Cols Payable Receivable Premium Companies Posted Credit ID Number Total - U.S. Non-Pool Total - Other (Non-U.S.) Total - Affiliates FINANCIAL AMER PROP & CAS INS CO TX,98 86,0 0, Other U.S. Unaffiliated Insurers Reinsurance for which the total of Column 8 is less than $00, Total Other U.S. Unaffiliated Insurers,98 86,0 0,60 AA ALABAMA COMMERCIAL AUTO INS PROCEDURE AL AA ARKANSAS COMMERCIAL AUTO INS PROCEDURE AR AA CALIFORNIA COMMERCIAL AUTO INS PROCEDURE CA AA COLORADO COMMERCIAL AUTO INS PROCEDURE CO AA GEORGIA COMMERCIAL AUTO INS PROCEDURE GA AA IDAHO COMMERCIAL AUTO INS PROCEDURE ID AA ILLINOIS COMMERCIAL AUTO INS PROCEDURE IL 8 AA IOWA COMMERCIAL AUTO INS PROCEDURE IA AA KANSAS COMMERCIAL AUTO INS PROCEDURE KS AA KENTUCKY COMMERCIAL AUTO INS PROCEDURE KY AA LOUISIANA COMMERCIAL AUTO INS PROCEDURE LA AA MINNESOTA COMMERCIAL AUTO INS PROCEDURE MN AA MISSISSIPPI COMMERCIAL AUTO INS PROCEDURE MS AA Missouri Commercial Automobile Ins Procedure MO AA MONTANA COMMERCIAL AUTO INS PROCEDURE MT AA NATIONAL WORKERS COMP REINS POOL NY,8,0,0 6 AA NEBRASKA COMMERCIAL AUTO INS PROCEDURE NE AA NEVADA COMMERCIAL AUTO INS PROCEDURE NV AA NEW MEXICO COMMERCIAL AUTO INS PROCEDURE NM AA NORTH DAKOTA COMMERCIAL AUTO INS PROCEDURE ND AA OHIO COMMERCIAL AUTO INS PROCEDURE OH AA OKLAHOMA COMMERCIAL AUTO INS PROCEDURE OK AA OREGON COMMERCIAL AUTO INS PROCEDURE OR AA PENNSYLVANIA COMMERCIAL AUTO INS PROCEDURE PA AA SOUTH CAROLINA COMMERCIAL AUTO INS PROCEDURE SC AA SOUTH DAKOTA COMMERCIAL AUTO INS PROCEDURE SD AA TENNESSEE COMMERCIAL AUTO INS PROCEDURE TN AA UTAH COMMERCIAL AUTO INS PROCEDURE UT AA VIRGINIA COMMERCIAL AUTO INS PROCEDURE VA AA WASHINGTON COMMERCIAL AUTO INS PROCEDURE WA AA WEST VIRGINIA COMMERCIAL AUTO INS PROCEDURE WV AA WISCONSIN SPECIAL RISK DISTRIBUTION PROGRAM RI AA WYOMING COMMERCIAL AUTO INS PROCEDURE WY Pools Associations - Reinsurance for which the total of Column 8 is less than $00,000 - Matory Pools Total Pools, Associations or Other Similar Facilities - Matory Pools,76,7, Pools Associations - Reinsurance for which the total of Column 8 is less than $00,000 - Voluntary Pools Total Pools, Associations or Other Similar Facilities - Voluntary Pools Total - Pools Associations,76,7, Other Non-U.S. Insurers - Reinsurance for which the total of Column 8 is less than $00, Total Other Non-U.S. Insurers Totals 7,7,680,9,0, Amount of Assets Pledged or Collateral Held in Trust

40 ID Number NAIC Company Code ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Premium Portfolio Reinsurance Effected or (Canceled) during Current Year Name of Company Date of Contract Original Premium 6 Reinsurance Premium NONE

41 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 6 Reinsurance Recoverable On Reinsurance Payable Net Amount Recoverable NAIC Other From Company Reinsurance Known Case Known Case Contingent Columns Amounts Reinsurers Domiciliary Special Premiums Paid Loss LAE IBNR Loss IBNR LAE Unearned Commis- 7 thru Balances Due to Cols. - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + 7] ID Number TECHNOLOGY INS CO INC NH 7,97,6 0,7 8,87 8,6 6,08 0, 0, 0, Total Authorized - Affiliates - U.S. Non-Pool - Other 7,97,6 0,7 8,87 8,6 6,08 0, 0, 0, Total Authorized - Affiliates - U.S. Non-Pool 7,97,6 0,7 8,87 8,6 6,08 0, 0, 0, Total Authorized - Affiliates - Other (Non-U.S.) Total Authorized - Affiliates 7,97,6 0,7 8,87 8,6 6,08 0, 0, 0, ACE PROP & CAS INS CO PA () ALLIED WORLD INS CO NH (9) AMERICAN AGRICULTURAL INS CO IN 8 () ARCH REINS CO DE 6 7 (0) ASPEN AMER INS CO TX 0 (0) AXIS REINS CO NY (6) CEM INS CO IL 8 7 () DORINCO REINS CO MI 0 6 () -907 ENDURANCE ASSUR CORP DE (9) EVEREST REINS CO DE 7 6 (7) GENERAL REINS CORP DE,0 89 (,00), HARTFORD STEAM BOIL INSPEC & INS CO CT (7) HOUSTON CAS CO TX (8) LIBERTY MUT INS CO MA MAIDEN REINS N AMER INC MO ,7, MAJESTIC INS CO CA MIDWEST EMPLOYERS CAS CO DE 0,8 6,7 7, MUNICH REINS AMER INC DE 9 (00) ODYSSEY REINS CO CT ,069, PARTNER REINS CO OF THE US NY ,789, QBE REINS CORP PA SAFETY NATL CAS CORP MO,00,86 89,,8, SCOR REINS CO NY 9 () SWISS REINS AMER CORP NY, ,8,967 76,7,96 (990) 6, TOA RE INS CO OF AMER DE 7 (7) TRANSATLANTIC REINS CO NY TRINITY UNIVERSAL INS CO TX,7,6,0 8,7 6 8, XL REINS AMER INC NY 0 0 (9) Total Authorized - Other U.S. Unaffiliated Insurers (Under $00,000) Total Authorized - Other U.S. Unaffiliated Insurers 9,077, 0 9,9 98,68,,98 0,,70 8, 70 AA ILLINOIS MINE SUBSIDENCE FUND IL () AA INDIANA MINE SUBSIDENCE FUND IN AA KENTUCKY MINE SUBSIDENCE FUND KY () AA WEST VIRGINIA MINE SUBSIDENCE FUND WV () WORKERS COMPENSATION REINS ASSN MN (0) Total Authorized - Pools - Matory Pools (7) 7 AA Aspen Bermuda Ltd BMU 0 (0) AA Aspen Ins UK Ltd GBR () AA Axis Specialty Ltd BMU AA DaVinci Reins Ltd BMU () AA Hannover Rueck SE DEU,68,6 6 89,7 00,78 (606),9 AA LLOYD'S SYNDICATE NUMBER 8 GBR AA LLOYD'S SYNDICATE NUMBER GBR 66 8 (7) AA LLOYD'S SYNDICATE NUMBER 0 GBR () AA LLOYD'S SYNDICATE NUMBER 66 (Incidental to 999) GBR (7) AA LLOYD'S SYNDICATE NUMBER 70 GBR () AA LLOYD'S SYNDICATE NUMBER 609 GBR (67) Funds Held By Company Under Reinsurance Treaties

42 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 6 Reinsurance Recoverable On Reinsurance Payable Net Amount Recoverable NAIC Other From Company Reinsurance Known Case Known Case Contingent Columns Amounts Reinsurers Domiciliary Special Premiums Paid Loss LAE IBNR Loss IBNR LAE Unearned Commis- 7 thru Balances Due to Cols. - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + 7] ID Number AA LLOYD'S SYNDICATE NUMBER 6 GBR AA LLOYD'S SYNDICATE NUMBER 77 GBR 88 (77) AA LLOYD'S SYNDICATE NUMBER 780 GBR AA LLOYD'S SYNDICATE NUMBER 98 GBR () AA LLOYD'S SYNDICATE NUMBER 08 GBR (6) AA Lloyd's Syndicate Number 00 GBR 7 (7) AA Lloyd's Syndicate Number 7 GBR AA LLOYD'S SYNDICATE NUMBER 0 GBR () AA LLOYD'S SYNDICATE NUMBER 00 GBR 6 (6) AA Lloyd's Syndicate Number GBR (6),87 AA LLOYD'S SYNDICATE NUMBER 8 GBR AA LLOYD'S SYNDICATE NUMBER 79 GBR 7 () AA Lloyd's Syndicate Number 90 GBR 7 (7) AA Lloyd's Syndicate Number 9 GBR 0 6 () AA LLOYD'S SYNDICATE NUMBER 000 (Incidental to 999) GBR 7 () AA LLOYD'S SYNDICATE NUMBER 00 GBR (6) AA LLOYD'S SYNDICATE NUMBER 00 GBR 96, , 90 0 AA Lloyd's Syndicate Number 007 GBR (6) AA LLOYD'S SYNDICATE NUMBER 00 GBR 0 0 () 6 AA LLOYD'S SYNDICATE NUMBER 0 GBR 9 9 (69) AA Lloyd's Syndicate Number 6 GBR 66 9 AA LLOYD'S SYNDICATE NUMBER 79 GBR () 6 AA Lloyd's Syndicate Number 987 GBR (0) AA Lloyd's Syndicate Number 000 GBR 9 9 (67) AA Lloyd's Syndicate Number 90 GBR 8 8 AA Lloyd's Syndicate Number 000 GBR () 7 AA LLOYD'S SYNDICATE NUMBER GBR 0 9 (80) AA Lloyd's Syndicate Number 7 GBR (68) AA LLOYD'S SYNDICATE NUMBER 678 GBR 8 AA Mapfre Re Compania de Reaseguros SA ESP 9 () AA Montpelier Reins Ltd BMU 8 8 (7) AA Partner Reins Co Ltd BMU () AA RENAISSANCE REINS LTD BMU () AA Validus Reins Ltd BMU (6) Total Authorized - Other Non-U.S. Insurers (Under $00,000) Total Authorized - Other Non-U.S. Insurers 7,79, ,987 7,89 9,8,6, Total Authorized 7,8,96 7 6,69,9 97,8, 67,96 79,9,8 7,00 0, Total Unauthorized - Affiliates - U.S. Intercompany Pooling Total Unauthorized - Affiliates - U.S. Non-Pool Agent Alliance Reinsurance Company Ltd BMU, ,0,,99 AA AmTrust International Ins Ltd BMU 0,89 7,7,69 7,780 9,60 6,8 7,78 7,78 00, Total Unauthorized - Affiliates - Other (Non-U.S.) - Other 07,68 7 7,, 7,88 9,60 6,8 7,999,99 7,006 00, Total Unauthorized - Affiliates - Other (Non-U.S.) 07,68 7 7,, 7,88 9,60 6,8 7,999,99 7,006 00, Total Unauthorized - Affiliates 07,68 7 7,, 7,88 9,60 6,8 7,999,99 7,006 00, BAYLAKE CORPORATION WI () UTAH BUSINESS INS CO INC UT (96) (6) UNICORN INSURANCE SERVICES & BENEFITS INC DE 66 (66) WEST BEND MUT INS CO WI () Total Unauthorized - Other U.S. Unaffiliated Insurers (Under $00,000) Total Unauthorized - Other U.S. Unaffiliated Insurers (96) ,06 (68) Total Unauthorized - Pools - Matory Pools AA Allied World Assurance Co Ltd BMU 9 (9) Funds Held By Company Under Reinsurance Treaties

43 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 6 Reinsurance Recoverable On Reinsurance Payable Net Amount Recoverable NAIC Other From Company Reinsurance Known Case Known Case Contingent Columns Amounts Reinsurers Domiciliary Special Premiums Paid Loss LAE IBNR Loss IBNR LAE Unearned Commis- 7 thru Balances Due to Cols. - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + 7] ID Number AA Appalachian Reins (Bermuda) Ltd BMU ,7 86,89,6, AA Arch Ins Co (Europe) Ltd GBR () AA Arch Reins Ltd BMU () AA Ariel Reins Co Ltd BMU 7 (7) AA Asia Capital Reins Grp Pte Ltd SGP 6 AA Catlin Ins Co Ltd BMU (7) 7 AA China Reins Grp Corp CHN 9 () AA Chubb Tempest Reins Ltd BMU () AA Endurance Specialty Ins Ltd BMU () AA Everest Reins Bermuda Ltd BMU (6) 6 AA Fidelis Ins Bermuda Ltd BMU () AA Fortius Re Ltd BMU 0 () AA GEN INS CORP OF INDIA IND 8 (8) AA Hannover Re (Bermuda) Ltd BMU (7) AA Hardin Ind Ltd II CYM, ,7 8,09 AA KOREAN REINS CO KOR () AA Lancashire Ins Co Ltd BMU 6 7 (7) AA LLOYD'S SYNDICATE NUMBER 00 GBR () AA Maiden Reins Ltd BMU 90,90,06,9 AA Markel Bermuda Ltd BMU,90,08,097 AA MS Amlin AG CHE () AA MS Frontier Reins Ltd BMU 99 9 (9) AA MUNCHENER RUCKVERSICHERUNGS GESELLSCHAFT DEU 9 (9) AA New Castle Reins Co Ltd BMU () 8 AA PacRe Ltd BMU AA PartnerRe SA FRA 0 AA QATAR INS CO QAT () AA SCOR Global P & C FRA 7 () Signify Insurance Group, Ltd. BMU 0,0 6 79, ,8 6,890 7,908 (,08) AA Sompo Japan Nipponkoa Ins Inc JPN 7 AA Taiping Reins Co Ltd HKG 8 AA Tokio Millennium Re AG CHE 96 (96) AA UNIVERSAL RE-INS CO LTD BMU () AA Validus Reins (Switzerl) Ltd CHE () AA Wyndham Ins Co (Sac) Ltd BMU,7,70 87,7,70,908,0,76 8,9 7,6,8 AA XL RE Ltd BMU (8) Total Unauthorized - Other Non-U.S. Insurers (Under $00,000) Total Unauthorized - Other Non-U.S. Insurers,6 7,0, 0,76,60 8,89,7,7 7,90 0,987 6, Total Unauthorized 8,87 7,9,00 86,09 6,06 8,888 9,0 66,9 77,8,0 70,8 00, Total Certified - Affiliates - U.S. Intercompany Pooling Total Certified - Affiliates - U.S. Non-Pool Total Certified - Affiliates - Other (Non-U.S.) Total Certified - Affiliates Total Certified - Other U.S. Unaffiliated Insurers (Under $00,000) Total Certified - Other U.S. Unaffiliated Insurers CR Allied World Assurance Co Ltd BMU 0 (89) CR Endurance Specialty Ins Ltd BMU () CR Everest Reins Bermuda Ltd BMU (8) CR MUNCHENER RUCKVERSICHERUNGS GESELLSCHAFT DEU (6) CR Tokio Millennium Re AG CHE (88) Total Certified - Other Non-U.S. Insurers (Under $00,000) Total Certified - Other Non-U.S. Insurers,68 7 7,76 (,) Funds Held By Company Under Reinsurance Treaties

44 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 6 Reinsurance Recoverable On Reinsurance Payable Net Amount Recoverable NAIC Other From Company Reinsurance Known Case Known Case Contingent Columns Amounts Reinsurers Domiciliary Special Premiums Paid Loss LAE IBNR Loss IBNR LAE Unearned Commis- 7 thru Balances Due to Cols. - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + 7] ID Number Total Certified,68 7 7,76 (,) Total Authorized, Unauthorized Certified 66,8,89, 0,78 7,6 79,7 6,7,6,0,99,0,0,90 70, Total Protected Cells Totals 66,8,89, 0,78 7,6 79,7 6,7,6,0,99,0,0,90 70,97 NOTE: A. Report the five largest provisional commission rates included in the cedant's reinsurance treaties. The commission rate to be reported is by contract with ceded premium in excess of $0,000:..... Name of Reinsurer Commission Rate Premium B. Report the five largest reinsurance recoverables reported in Column, due from any one reinsurer (based on the total recoverables, Line , Column ), the amount of ceded premium, indicate whether the recoverables are due from an affiliated insurer. Name of Reinsurer Total Recoverables Premiums Affiliated. AMTRUST INTERNATIONAL INS LTD 7,78 0,89 Yes [ X ] No [ ]. SIGNIFY INSURANCE GROUP LTD 6,890 0,0 Yes [ ] No [ X ]. TECHNOLOGY INS CO INC 0, 7,97 Yes [ X ] No [ ]. TRINITY UNIVERSAL INS CO 8,7 Yes [ ] No [ X ]. WYNDHAM INS CO (SAC) LTD 8,9,7 Yes [ ] No [ X ] Funds Held By Company Under Reinsurance Treaties

45 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Aging of Reinsurance as of December, Current Year (000 OMITTED) Reinsurance Recoverable on Paid Losses Paid Loss Adjustment Expenses NAIC Company Code Overdue ID Number Name of Reinsurer Domiciliary Jurisdiction Current to 9 Days 0 to 90 Days 9 to 0 Days Over 0 Days Total Overdue Cols Total Due Cols Total Authorized - Affiliates - U.S. Non-Pool Total Authorized - Affiliates - Other (Non-U.S.) Total Authorized - Affiliates ALLIED WORLD INS CO NH AMERICAN AGRICULTURAL INS CO IN AXIS REINS CO NY CEM INS CO IL EVEREST REINS CO DE HOUSTON CAS CO TX LIBERTY MUT INS CO MA MAIDEN REINS N AMER INC MO MIDWEST EMPLOYERS CAS CO DE ODYSSEY REINS CO CT PARTNER REINS CO OF THE US NY QBE REINS CORP PA SWISS REINS AMER CORP NY TRANSATLANTIC REINS CO NY XL REINS AMER INC NY Total Authorized - Other U.S. Unaffiliated Insurers,9,9 AA Axis Specialty Ltd BMU 0 0 AA DaVinci Reins Ltd BMU AA Hannover Rueck SE DEU,7,7 AA LLOYD'S SYNDICATE NUMBER GBR AA LLOYD'S SYNDICATE NUMBER 0 GBR AA LLOYD'S SYNDICATE NUMBER 6 GBR 0 0 AA Lloyd's Syndicate Number 7 GBR 0 0 AA Lloyd's Syndicate Number GBR AA LLOYD'S SYNDICATE NUMBER 8 GBR 8 8 AA LLOYD'S SYNDICATE NUMBER 00 GBR 7 7 AA LLOYD'S SYNDICATE NUMBER 00 GBR,69,69 AA Lloyd's Syndicate Number 007 GBR 8 8 AA LLOYD'S SYNDICATE NUMBER 00 GBR AA Lloyd's Syndicate Number 6 GBR AA LLOYD'S SYNDICATE NUMBER 79 GBR AA Lloyd's Syndicate Number 987 GBR AA Lloyd's Syndicate Number 90 GBR 8 8 AA Lloyd's Syndicate Number 000 GBR 0 0 AA Lloyd's Syndicate Number 7 GBR 6 6 AA Montpelier Reins Ltd BMU AA RENAISSANCE REINS LTD BMU AA Validus Reins Ltd BMU Total Authorized - Other Non-U.S. Insurers,0, Total Authorized,70, Total Unauthorized - Affiliates - U.S. Non-Pool Agent Alliance Reinsurance Company Ltd BMU Total Unauthorized - Affiliates - Other (Non-U.S.) - Other Total Unauthorized - Affiliates - Other (Non-U.S.) Total Unauthorized - Affiliates UTAH BUSINESS INS CO INC UT Total Unauthorized - Other U.S. Unaffiliated Insurers 9 9 AA Appalachian Reins (Bermuda) Ltd BMU 6 6 AA Hardin Ind Ltd II CYM 8 8 AA Maiden Reins Ltd BMU 9 9 AA Markel Bermuda Ltd BMU,0,0 Percentage Overdue Col. 0/Col. Percentage More Than 0 Days Overdue Col. 9/Col.

46 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Aging of Reinsurance as of December, Current Year (000 OMITTED) Reinsurance Recoverable on Paid Losses Paid Loss Adjustment Expenses NAIC Company Code Overdue Percentage Overdue Col. 0/Col. Percentage More Than 0 Days Overdue Col. 9/Col. ID Number Name of Reinsurer Domiciliary Jurisdiction Current to 9 Days 0 to 90 Days 9 to 0 Days Over 0 Days Total Overdue Cols Total Due Cols. + 0 AA MS Amlin AG CHE 8 8 AA New Castle Reins Co Ltd BMU.6.6 AA PartnerRe SA FRA Signify Insurance Group, Ltd. BMU AA Wyndham Ins Co (Sac) Ltd BMU,097,097 AA XL RE Ltd BMU Total Unauthorized - Other Non-U.S. Insurers 8,7 8, Total Unauthorized 9, 9, Total Certified - Affiliates - U.S. Non-Pool Total Certified - Affiliates - Other (Non-U.S.) Total Certified - Affiliates Total Certified Total Authorized, Unauthorized Certified,6, Total Protected Cells Totals,6,

47 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. Funds Held By Company Under Reinsurance Treaties Issuing or Confirming Bank Reference Number (a) Balances Payable Miscellaneous Balances Payable Trust Funds Other Allowed Offset Items Total Collateral Offsets Allowed (Cols but not in Excess of Col. 6) Provision for Unauthorized Reinsurance (Col. 6 Minus Col. ) ID Number Name of Reinsurer Special Code Letters of Credit Total - U.S. Non-Pool XXX Agent Alliance Reinsurance Company Ltd. BMU,,99,6, AA AmTrust International Ins Ltd BMU 7,78 00,789, ,090 7, Affiliates - Other (Non-U.S.) - Other 7,999 00,789,000 XXX,99 89, 7, Total - Other (Non-U.S.) 7,999 00,789,000 XXX,99 89, 7, Total - Affiliates 7,999 00,789,000 XXX,99 89, 7, Baylake Corporation WI () () Utah Business Ins Co Inc UT Unicorn Insurance Services & Benefits Inc. DE WEST BEND MUT INS CO WI () () Total Other U.S. Unaffiliated Insurers 79 XXX, AA Allied World Assurance Co Ltd BMU 9 AA Appalachian Reins (Bermuda) Ltd BMU,89,6,89,89 AA Arch Ins Co (Europe) Ltd GBR AA Arch Reins Ltd BMU () () AA Ariel Reins Co Ltd BMU 7 AA Asia Capital Reins Grp Pte Ltd SGP AA Catlin Ins Co Ltd BMU (7) (6) 6 AA China Reins Grp Corp CHN AA Chubb Tempest Reins Ltd BMU AA Endurance Specialty Ins Ltd BMU AA Everest Reins Bermuda Ltd BMU (6) (6) 6 AA Fidelis Ins Bermuda Ltd BMU AA Fortius Re Ltd BMU AA GEN INS CORP OF INDIA IND 8 AA Hannover Re (Bermuda) Ltd BMU AA Hardin Ind Ltd II CYM, ,7,7 AA KOREAN REINS CO KOR AA Lancashire Ins Co Ltd BMU 7 AA LLOYD'S SYNDICATE NUMBER 00 GBR AA Maiden Reins Ltd BMU,06,0 000,06 AA Markel Bermuda Ltd BMU,08,69 000,0,08 AA MS Amlin AG CHE AA MS Frontier Reins Ltd BMU 9 AA MUNCHENER RUCKVERSICHERUNGS GESELLSCHAFT DEU 9 AA New Castle Reins Co Ltd BMU 8 AA PacRe Ltd BMU AA PartnerRe SA FRA AA QATAR INS CO QAT AA SCOR Global P & C FRA Signify Insurance Ltd BMU 6,890, ,908 6,890 AA Sompo Japan Nipponkoa Ins Inc JPN AA Taiping Reins Co Ltd HKG AA Tokio Millennium Re AG CHE 96 AA UNIVERSAL RE-INS CO LTD BMU () () AA Validus Reins (Switzerl) Ltd CHE AA Wyndham Ins Co (Sac) Ltd BMU 8,9, ,6, 8,9 AA XL RE Ltd BMU Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. 7) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6)

48 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. Funds Held By Company Under Reinsurance Treaties Issuing or Confirming Bank Reference Number (a) Balances Payable Miscellaneous Balances Payable Trust Funds Other Allowed Offset Items Total Collateral Offsets Allowed (Cols but not in Excess of Col. 6) Provision for Unauthorized Reinsurance (Col. 6 Minus Col. ) ID Number Name of Reinsurer Special Code Letters of Credit Total Other Non-U.S. Insurers 7,90 9, XXX 0,987 8,7 7, Total Affiliates Others 77,8 00,808, XXX,0 8,6 77, Total Protected Cells XXX Totals 77,8 00,808, XXX,0 8,6 77,0. Amounts in dispute totaling $ are included in Column 6.. Amounts in dispute totaling $ are excluded from Column. Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. 7) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6). (a) Issuing or Confirming Bank Reference Number Letters of Credit Code American Bankers Association (ABA) Routing Number Issuing or Confirming Bank Name Letters of Credit Amount JPMORGAN CHASE BANK, COMERICA BANK JPMORGAN CHASE BANK, CITIBANK N.A., BARCLAYS BANK PLC LLOYDS BANK PLC NATIONAL AUSTRALIA BANK LIMITED BNP PARIBAS COMMERZBANK AKTIENGESELLSCHAFT BARCLAYS BANK PLC COMERICA BANK, COMERICA BANK, THE BANK OF TOKYO-MITSUBISHI UFJ LTD BARCLAYS BANK PLC CITIBANK, N.A CREDIT SUISSE DEUTSCHE BANK AG HSBC BANK USA, N.A GOLDMAN SACHS BANK USA JPMORGAN CHASE BANK, N.A MORGAN STANLEY BANK, N.A THE BANK OF NEW YORK MELLON WELLS FARGO BANK, N.A.

49 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART 6 - SECTION Provision for Reinsurance to Certified Reinsurers as of December, Current Year (000 Omitted) Collateral Provided NAIC Company Code Domiciliary Jurisdiction Certified Reinsurer Rating ( through 6) Effective Date of Certified Reinsurer Rating Percent Collateral Required for Full Credit (0% - 00%) Net Amount Recoverable from Reinsurers (Sch. F Part Catastrophe Recoverables Qualifying for Collateral Deferral Net Recoverables Subject to Collateral Requirements for Full Credit (Col 8 - Col 9) Dollar Amount of Collateral Required (Col 0 x Col 7) 6 7 Percent Percent of Credit Collateral Allowed on Provided Net Recoverables for Net Recoverables Subject to Collateral Subject to Requirements Funds Held Issuing or Total Collateral By Company Confirming Collateral Requirements (Col 8 / Col Under Bank Other Provided 7, not to Reinsurance Letters of Reference Allowable (Col. + (Col. 7 / by Exceed Treaties Credit Number (a) Collateral ) Col. 0) 00%) Multiple Beneficiary Trust ID Number Name of Reinsurer Col. 8) Total - U.S. Non-Pool XXX XXX XXX Total - Other (Non-U.S.) XXX XXX XXX Total - Affiliates XXX XXX XXX CR Allied World Assurance Co Ltd BMU 0/0/0 0.0 (89) (89) (78) CR Endurance Specialty Ins Ltd BMU 07/0/0 0.0 () () (6) CR Everest Reins Bermuda Ltd BMU 0/0/0 0.0 (8) (8) (7) MUNCHENER RUCKVERSICHERUNGS GESELLSCHAFT CR DEU 0/0/0 0.0 (6) (6) (6) CR Tokio Millennium Re AG CHE 0/0/0 0.0 (88) (88) (8) Total Other Non-U.S. Insurers (,) (,) () XXX XXX XXX Total Affiliates Others (,) (,) () XXX XXX XXX Total Protected Cells XXX XXX XXX Amount of Credit Allowed for Net Recoverables (Col. 9 + (Col. 0 x Col. 9)) Provision for Reinsurance with Certified Reinsurers Due to Collateral Deficiency (Col. 8 - Col. 0) Total (,) (,) () XXX XXX XXX (a) Issuing or Confirming Bank Reference Number Letters of Credit Code American Bankers Association (ABA) Routing Number Letters of Issuing or Confirming Bank Name Amount NONECredit

50 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule F - Part 6 - Section - Provision for Overdue Reinsurance to Certified Reinsurers N O N E Schedule F - Part 7 - Provision for Overdue Authorized Reinsurance N O N E 6, 7

51 ID Number NAIC Company Code Name of Reinsurer ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART 8 Provision for Overdue Reinsurance as of December, Current Year 6 7 Funds Held By Reinsurance Company Under Recoverable Reinsurance Balances All Items Treaties Letters of Credit Payable 8 Other Miscellaneous Balances 9 Other Allowed Offset Items 0 Sum of Cols. through 9 but not in excess of Col. Col. minus Col. 0 Greater of Col. or Schedule F - Part Cols Totals. Total. Line x.0. Schedule F - Part 7 Col.. Provision for Overdue Authorized Reinsurance (Lines + ). Provision for Reinsurance to Unauthorized Reinsurers (Schedule F - Part Col. 9 x000) 6. Provision for Reinsurance to Certified Reinsurers (Schedule F- Part 6, Section, Col. x 000) 7. Provision for Overdue Reinsurance to Certified Reinsurers (Schedule F - Part 6, Section, Col x 000) 8. Provision for Reinsurance (sum Lines ) (Enter this amount on Page, Line 6) 8

52 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE F - PART 9 Restatement of Balance Sheet to Identify Net Credit for Reinsurance As Reported (Net of ) Restatement Adjustments Restated (Gross of ) ASSETS (Page, Col. ). Cash invested assets (Line ) 9,,66 9,,66. Premiums considerations (Line ) 9,07, 9,07,. Reinsurance recoverable on loss loss adjustment expense payments (Line 6.),,68 (,,68). Funds held by or deposited with reinsured companies (Line 6.). Other assets 7,00,0 7,00,0 6. Net amount recoverable from reinsurers 8,97, 8,97, 7. Protected cell assets (Line 7) 8. Totals (Line 8),0,877,99 0,79,66,08,669,66 LIABILITIES (Page ) 9. Losses loss adjustment expenses (Lines through ),0,86 80,6,066 98,98,90 0. Taxes, expenses, other obligations (Lines through 8) (,9,09) (,9,09). Unearned premiums (Line 9) 9,7,7,60,8 6,896,6. Advance premiums (Line 0) 0,66,79 0,66,79. Dividends declared unpaid (Line..),0,8,0,8. reinsurance premiums payable (net of ceding commissions (Line ),0, (,0,). Funds held by company under reinsurance treaties (Line ) 70,97, (70,97,) 6. Amounts withheld or retained by company for account of others (Line ) 7. Provision for reinsurance (Line 6) () 8. Other liabilities,06,79,06,79 9. Total liabilities excluding protected cell business (Line 6) 987,76,0 0,79,66,9,07,86 0. Protected cell liabilities (Line 7). Surplus as regards policyholders (Line 7) 7,6,79 XXX 7,6,79. Totals (Line 8),0,877,99 0,79,66,08,669,66 NOTE: Is the restatement of this exhibit the result of grossing up balances ceded to affiliates under 00 percent reinsurance or pooling arrangements? Yes [ ] No [ X ] If yes, give full explanation: 9

53 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule H - Part N O N E Schedule H - Part - Reserves Liabilities N O N E Schedule H - Part - Prior Year's Claim Reserves Liabilities N O N E Schedule H - Part - Reinsurance N O N E Schedule H - Part - Health Claims N O N E 0,,

54 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES SCHEDULE P - PART - SUMMARY ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX ,09 6,09 7,6 7,6,,,9,9 XXX ,8 9, 97 9,8 8,6 8,80 8,676,7,679 6,09 90 XXX. 009, 7,6,0,869,806,6,80,89,67 87,0 XXX. 00,8 0,,98 6,87,6,86,89,6,9,8,6 XXX ,780 80,69 8, 60,76,09,798,09,,90, 7,80 XXX ,7 97,0 0,69,7 0,86,87 0,6,9,886,90,7 XXX ,0,00 7,98 7,06,8,0 0,698 8,6 7,, 0, XXX ,7,68 7,09 7,98,08,97 0, 9,8 8,6,978, XXX ,67 68,07 09,67 8,87 8,7,7,9 6,0,08,70,996 XXX. 06 8,80 66,8 96,97 9,00,77 7,6,86,09,87 80,7 XXX. Totals XXX XXX XXX 8,06 76,6 9,666, 6,880,,86 09,69 XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Other Case Basis Bulk + IBNR Case Basis Bulk + IBNR Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior,0,0,60,60 8 8,670, XXX XXX ,866 6, XXX. 009,, XXX. 00,0, XXX ,9 6,88 6,008, ,0,77 7 9,00 XXX 7. 0,789,80, 0,96,68,,8, ,68 XXX ,969 7,088 8,60,86,9,89 8,08 7,08,9, 7,9 XXX 9. 0,76 0, 68,7 6,88 9,89 8,8 0,8 8,7,,9,8 XXX ,9 7,9 0,8,8 6,87,,70,0,668,890 6, XXX. 06 0, 79,08,6 87,8 0,860 6,070 6,8,0 8,676 6,80 87,66 XXX. Totals,0 6,67 79, 09,769 6,77 7,6 7,87 08,,80 8,0 0,6 XXX Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX ,867 6, ,6 67, ,0 8,9, ,68,0, ,8 87,09 8, , 8,870 6, , ,778 60, 7, ,8, ,67 6,0 6, ,879, 0. 0,6 8,06 6, ,608 6,89 7, ,7 87, 0, ,79 6,6 8,. Totals XXX XXX XXX XXX XXX XXX 6,86 XXX,07,800 Note: Parts are gross of all discounting, including tabular discounting. Part is gross of only nontabular discounting, which is reported in Columns of Part. The tabular discount, if any, is reported in the Notes to Financial Statements which will reconcile Part with Parts.

55 Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART - SUMMARY Years in INCURRED NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) DEVELOPMENT One Year. Prior. 007 Two Year. 008 XXX,66,0, () (). 009 XXX XXX,909,70,,87,7,6,8,9 (90) (6). 00 XXX XXX XXX,,78,9,080,60,6, XXX XXX XXX XXX,90 6,706 7,0 7,87 8, 8,0 () XXX XXX XXX XXX XXX,9,,0,6, XXX XXX XXX XXX XXX XXX,6,6 6,8 6,66 97, XXX XXX XXX XXX XXX XXX XXX 6,6 6,09,860 (,99) (,97) 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX 6,7 9,78 (,89) XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 00,978 XXX XXX. Totals (,690), Years in Which Losses Were Incurred SCHEDULE P - PART - SUMMARY CUMULATIVE PAID NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) Number of Claims Closed With Loss Payment Number of Claims Closed Without Loss Payment. Prior 000 XXX XXX. 007 XXX XXX. 008 XXX XXX XXX. 009 XXX XXX,07,87,099,9,0,8,88,9 XXX XXX. 00 XXX XXX XXX,7,88,9,0,76,98,98 XXX XXX 6. 0 XXX XXX XXX XXX,8,6,8,667 6,07 6,86 XXX XXX 7. 0 XXX XXX XXX XXX XXX,7,60 8,97,06,87 XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX,977 8,80,7 9,6 XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX,77,6 0,66 XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX 7,96,09 XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,6 XXX XXX Years in Which Losses Were Incurred SCHEDULE P - PART - SUMMARY BULK AND IBNR RESERVES ON NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX XXX 6,70,0,06,, XXX XXX XXX XXX XXX XXX,709 0,00 7,009, XXX XXX XXX XXX XXX XXX XXX,70,6 7, XXX XXX XXX XXX XXX XXX XXX XXX 9,6 9,7. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,89

56 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART A - HOMEOWNERS/FARMOWNERS ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX ,098 8,098,80, ,, ,,8 87,70, ,87,7 9, Totals XXX XXX XXX 6,988 6, XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior , Totals, Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX. 007,77, ,, ,69, ,97, Totals XXX XXX XXX XXX XXX XXX XXX

57 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX () () XXX Totals XXX XXX XXX XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior Totals Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX Totals XXX XXX XXX XXX XXX XXX XXX 6

58 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX. 007,9,9 0,968 0, ,0. 008,,99 9 0,66 0, ,76 0,86 990,69, ,900 6,8 68,, ,9, ,9,7,, ,869 9,969 90,98 0,80,887, ,06,86, 7,76 7,,08, ,97,9,8 8,88 7,99,, ,80, 0. 0,9 8,9,8 6,,, ,0,77. 06,9,0 8,98,66, ,,68. Totals XXX XXX XXX 7,67 69,6,06,00,076,76,86 7,7 XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior ,7, (7) ,, ,8,6,7, , ,089,,86 0, , Totals 0,06 6,7 0,0,7,0,778,67, ,7,8 Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX. 007,808, ,97, ,, ,69, ,7 7, ,0, ,0,00, ,8 7,08, (7) ,79,869, , , 0,607 6, ,9 7. Totals XXX XXX XXX XXX XXX XXX XXX 7,6 7 7

59 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION) ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX 7 7 XXX ,8 7,8,, ,67 8,0 6,6 6, , 6,66 7,6, ,076 0,98,8 6,80 6,0,7, , 0,8,90 8,6,80 6,68,967,00,80,690, ,80 7,98,8 6,76 6,8,0,7,09,8 70 7,886, ,99,687, 9, 8, 9,07 7,6,90,7 98,7 9,8 9. 0,06 88,888,8 6,0 0,8,70, 8,000 7,00,08,66, ,879 9,9 80,88 90,0 76,70 8,0,7,, ,0 7, ,8 6,909,9,67 7,8,,0, ,690 6,88. Totals XXX XXX XXX,6 9, 87,976 77,78 7,9,09,706 6,78 XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior,80, ,6 6, ,99, ,,67,008, ,89 0,6 7,909 7,87,78,,0,0 88 9, ,6 6,60 7,88 6,67,67,06,08,7 97 8, ,7 6,7,99 8,8 7,6 6,8,8,,9,9 9,76, ,679 7,8 7,90 66,90,7,,9 8,68,79,,76, ,88 6,7 8,70,69 8,6, 0,09,88,8,6 9, 6,7. Totals 7,8 00,98 8,,6 6,8 8,960 8,0 68,90,896,706 0,0,9 Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX ,06 6, ,9, ,9, ,878 0,7, ,78,9, ,97 9,80 0, , ,0 6,0 6, , ,680 8,9, ,97, ,0,80 0, ,8 6,99, ,76 7,9 69, ,6,99,. Totals XXX XXX XXX XXX XXX XXX,9 XXX 7,86,66 8

60 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART E - COMMERCIAL MULTIPLE PERIL ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX , ,976,797 79,8, ,60,66 8,8, ,979 8,68,9,06, ,06 9,6,69,, Totals XXX XXX XXX 0,68 9,09,9, ,88 XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior , ,80,77,7, ,98,88,007, 6 8 6,96 8. Totals 7,,99 6,68, ,90 9 Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX ,0, ,0, ,8 6,77, ,8 9,, ,0 8. Totals XXX XXX XXX XXX XXX XXX XXX,69 8 9

61 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part F - Section - Medical Professional Liability - Occurrence N O N E Schedule P - Part F - Section - Medical Professional Liability - Claims-Made N O N E 0,

62 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) ($000 OMITTED) Years in Which Premiums Were Earned Losses Were Incurred Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX. 007 XXX XXX XXX (7) 6 7 () XXX () XXX XXX XXX XXX XXX XXX. Totals XXX XXX XXX XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior Totals 8 6 Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX () ().7. (7.6) Totals XXX XXX XXX XXX XXX XXX XXX

63 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART H - SECTION - OTHER LIABILITY - OCCURRENCE ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX 6 6 XXX. 007,77,77 6,778 6,778,660, ,709,7 7,8,98,70, ,70 0,8 870,9, ,86 8,00 76,,0,7, ,9 0, ,7 6,0,67, ,087 8,9,88 0,9 8,7,, , ,8 87,8 9,8 7,08,99 7,696 6, ,9, 9. 0,878 0,966 0,9 9, 6,08,9, 7,6, 0. 0,907 6,0 9,897 8,60 6,8,, ,70,66. 06, 0,9,70,68, ,68,. Totals XXX XXX XXX,8,90 0,9 7,88,907,6,87,769 XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior 6 6,7,7 8 8,67, ,899, ,07,087,68, ,60,06 8, 7, ,0,80 0, ,00,87,078 9,909,0 9 6,6, , ,8 7,960,9 8,77,66,09,06,07,6, 8, ,90,8 6,,77, 9,9,00,86,87 6,6 6. Totals 9,67, 7,0 6,79,888, 7,90,7,9,0 0,86,7 Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX. 007,0, ,9 9, ,796, ,970, ,, , 6,79, ,7 6,780 6, , , 6,7 6, , ,9 80,7, ,, , 77,00 7, ,8,96. Totals XXX XXX XXX XXX XXX XXX,67 XXX,68,978

64 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART H - SECTION - OTHER LIABILITY - CLAIMS-MADE ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX NONE Totals XXX XXX XXX XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior NONE Totals Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX NONE Totals XXX XXX XXX XXX XXX XXX XXX

65 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, BURGLARY AND THEFT) ($000 OMITTED) Years in Which Premiums Were Earned Losses Were Incurred Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX,60, ,97 6 XXX. 0 0,987 9,6, 7,89 6, , XXX. 06, 0,07,98,7, XXX. Totals XXX XXX XXX,8 0, ,90,998 XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior,9, (8). 06,96,,60, Totals,99,60,9, ,7 0 Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX. 0 9,7 8,07, () (7). 06 6,,90, Totals XXX XXX XXX XXX XXX XXX XXX, 6

66 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART J - AUTO PHYSICAL DAMAGE ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX (8) () 9 00 (6) XXX. 0,0,86 7,6, ,68,6,8,709, ,08,6. Totals XXX XXX XXX,9 8, ,0,8 XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior ,90, Totals,,08,6, Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX. 0 6,6,60, , 6,60, Totals XXX XXX XXX XXX XXX XXX XXX 60 6

67 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART K - FIDELITY/SURETY ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX,9, XXX. 0,6,8 77,9, XXX. 06 6,00,760, XXX. Totals XXX XXX XXX 7, 6, XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior ,7, Totals 86 70,78, Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX 7. 0,, ,8, Totals XXX XXX XXX XXX XXX XXX XXX

68 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX XXX XXX. Totals XXX XXX XXX XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid. Prior Totals Number of Claims Outsting Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX Loss Expenses Unpaid ,.9,., Totals XXX XXX XXX XXX XXX XXX XXX 7 8

69 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part M - International N O N E Schedule P - Part N - Reinsurance - Nonproportional Property N O N E Schedule P - Part O - Reinsurance - Nonproportional Liability N O N E Schedule P - Part P - Reinsurance - Nonproportional Financial Lines N O N E 9, 0,,

70 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - OCCURRENCE ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX. 007,78,78,60, ,, ,87,60,0, ,7, ,8, ,78, ,8,6 7,6,7,69, ,687,0 67,7,8,0, ,96,66 89,78,06,860, ,70,6 89,8,097,8, ,69,08,87,07, Totals XXX XXX XXX 6,0,,987,67,8,6 68,6 XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Prior (8) (8) Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting ,86,,9, ,767,90,96,667 98,6, ,7,789,8, ,8. 06,9,77,6, ,9 97. Totals,090 9,69,676,87,0,8,7, ,76 67 Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX. 007,80, ,6, ,89, ,9, ,6 7, ,8,8, ,9,9, ,0,8, , ,97 7,99, ,67 9. Totals XXX XXX XXX XXX XXX XXX XXX,8 9

71 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - CLAIMS-MADE ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX NONE Totals XXX XXX XXX XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior NONE Totals Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX NONE Totals XXX XXX XXX XXX XXX XXX XXX

72 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART S - FINANCIAL GUARANTY/MORTGAGE GUARANTY ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX XXX. 0 XXX. 06 XXX. Totals XXX XXX XXX XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior Totals Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX Totals XXX XXX XXX XXX XXX XXX XXX

73 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART T - WARRANTY ($000 OMITTED) Premiums Earned Loss Loss Expense Payments Defense Cost Adjusting Other 0 Loss Payments Containment Payments Payments Number of Total Net Claims Salvage Paid Cols Reported Subrogation ( Net ( - ) Received + 8-9). Prior XXX XXX XXX (0) (8) () XXX. 0,6,07 6,6,00,90. 06,6, 6,0,08,0. Totals XXX XXX XXX,97, XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting. Prior (07) (78) () () (9) Totals ,888 Total Losses Loss Expenses Incurred Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX 9. 0, (9). 06,7, Totals XXX XXX XXX XXX XXX XXX XXX 6

74 Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART A - HOMEOWNERS/FARMOWNERS Years in INCURRED NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) DEVELOPMENT One Year. Prior XXX XXX XXX XXX XXX XXX () 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals (). Prior XXX SCHEDULE P - PART B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Prior Totals SCHEDULE P - PART C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL Two Year. 008 XXX XXX XXX (). 00 XXX XXX XXX () (6) 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX , XXX XXX XXX XXX XXX XXX XXX,0,8, XXX XXX XXX XXX XXX XXX XXX XXX,08, XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,686 XXX XXX. Totals,67,. Prior. 007 SCHEDULE P - PART D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION). 008 XXX () (). 009 XXX XXX (7) (). 00 XXX XXX XXX ,07, XXX XXX XXX XXX,7,767,0,8,6,6 (0) () 7. 0 XXX XXX XXX XXX XXX 8, 8,89 9,7 9,60 9, XXX XXX XXX XXX XXX XXX,79,68,90,70 (9) (78) 9. 0 XXX XXX XXX XXX XXX XXX XXX 6,,0,0 (,69) (,9) 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX,89 9,0 (,98) XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 67, XXX XXX. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX SCHEDULE P - PART E - COMMERCIAL MULTIPLE PERIL. Totals (8,7) (,769) 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX (9) 8. 0 XXX XXX XXX XXX XXX XXX (9) 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,098,0 (7) XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,90 XXX XXX. Totals (68) 89 7

75 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - OCCURRENCE Years in INCURRED NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) DEVELOPMENT One Year Which Losses Were Incurred. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals Two Year SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals SCHEDULE P - PART G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY). Prior XXX. 009 XXX XXX. 00 XXX XXX XXX () () () () () () () 6. 0 XXX XXX XXX XXX () () () () () 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX () XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals (). Prior. 007 SCHEDULE P - PART H - SECTION - OTHER LIABILITY - OCCURRENCE. 008 XXX () (6). 009 XXX XXX () (). 00 XXX XXX XXX (8) (0) 6. 0 XXX XXX XXX XXX (0) (8) 7. 0 XXX XXX XXX XXX XXX,98,78,708,67,6 () (67) 8. 0 XXX XXX XXX XXX XXX XXX,770,76 6,70 6,79 (6) XXX XXX XXX XXX XXX XXX XXX 6,9 7, 6,7 (9) (9) 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX,77, (0) XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 7, XXX XXX. Totals (,6). Prior XXX SCHEDULE P - PART H - SECTION - OTHER LIABILITY - CLAIMS-MADE. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals 8

76 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, BURGLARY, AND THEFT) Years in INCURRED NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) DEVELOPMENT One Year Which Losses Were Incurred Two Year. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,6,6 (08) XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,99 XXX XXX. Totals (0) 8 SCHEDULE P - PART J - AUTO PHYSICAL DAMAGE. Prior XXX XXX XXX XXX XXX XXX XXX () (). 0 XXX XXX XXX XXX XXX XXX XXX XXX 97,000 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,98 XXX XXX. Totals () SCHEDULE P - PART K - FIDELITY/SURETY. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 6 60 () XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 7 XXX XXX. Totals 7 SCHEDULE P - PART L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH). Prior XXX XXX XXX XXX XXX XXX XXX () 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX 8 8 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals 7 0 SCHEDULE P - PART M - INTERNATIONAL. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals 9

77 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part N - Reinsurance - Nonproportional Property N O N E Schedule P - Part O - Reinsurance - Nonproportional Liability N O N E Schedule P - Part P - Reinsurance - Nonproportional Financial Lines N O N E 60

78 Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - OCCURENCE Years in INCURRED NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) DEVELOPMENT One Year. Prior. 007 Two Year. 008 XXX (). 009 XXX XXX (). 00 XXX XXX XXX (7) 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX , XXX XXX XXX XXX XXX XXX XXX ,69 8, XXX XXX XXX XXX XXX XXX XXX XXX 9,, XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,8 XXX XXX. Totals,86,9 SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals SCHEDULE P - PART S - FINANCIAL GUARANTY/MORTGAGE GUARANTY. Prior XXX XXX XXX XXX XXX XXX XXX NONE. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals SCHEDULE P - PART T - WARRANTY. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 70 8 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals 7 6

79 Years in Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART A - HOMEOWNERS/FARMOWNERS CUMULATIVE PAID NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) Number of Claims Closed With Loss Payment Number of Claims Closed Without Loss Payment. Prior 000, XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL. Prior 000, XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL. Prior 000, XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 98 77, XXX XXX XXX XXX XXX XXX XXX XXX 9, XXX XXX XXX XXX XXX XXX XXX XXX XXX, SCHEDULE P - PART D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION). Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,0,,869,,89, XXX XXX XXX XXX XXX,0,7, 6,69 7,, XXX XXX XXX XXX XXX XXX,7,9 8,8 0,980 7,0, XXX XXX XXX XXX XXX XXX XXX,07 9,0,86,, XXX XXX XXX XXX XXX XXX XXX XXX,890 6,,96, XXX XXX XXX XXX XXX XXX XXX XXX XXX 9,80 7,77,78 SCHEDULE P - PART E - COMMERCIAL MULTIPLE PERIL. Prior XXX XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

80 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - OCCURRENCE Years in Which Losses Were Incurred CUMULATIVE PAID NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) Prior XXX. 009 XXX XXX NONE. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX Number of Claims Closed With Loss Payment Number of Claims Closed Without Loss Payment SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY). Prior 000 XXX XXX. 007 XXX XXX. 008 XXX XXX XXX. 009 XXX XXX XXX XXX. 00 XXX XXX XXX () () () () () () () XXX XXX 6. 0 XXX XXX XXX XXX () () () () () XXX XXX 7. 0 XXX XXX XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART H - SECTION - OTHER LIABILITY - OCCURRENCE. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 0,66, XXX XXX XXX XXX XXX XXX 6 67,6, XXX XXX XXX XXX XXX XXX XXX 9,8, XXX XXX XXX XXX XXX XXX XXX XXX 7, XXX XXX XXX XXX XXX XXX XXX XXX XXX, Prior XXX SCHEDULE P - PART H - SECTION - OTHER LIABILITY - CLAIMS-MADE. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 6

81 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, BURGLARY, AND THEFT) CUMULATIVE PAID NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END Years in Which Losses Were Incurred ($000 OMITTED) Number of Claims Closed With Loss Payment Number of Claims Closed Without Loss Payment. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX XXX XXX XXX 67,66 XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 60 XXX XXX SCHEDULE P - PART J - AUTO PHYSICAL DAMAGE. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,7 7 8 SCHEDULE P - PART K - FIDELITY/SURETY. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX XXX XXX XXX 7 08 XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 0 XXX XXX SCHEDULE P - PART L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH). Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART M - INTERNATIONAL. Prior 000 XXX XXX. 007 XXX XXX. 008 XXX XXX XXX. 009 XXX XXX XXX XXX. 00 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 6

82 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part N - Reinsurance - Nonproportional Property N O N E Schedule P - Part O - Reinsurance - Nonproportional Liability N O N E Schedule P - Part P - Reinsurance - Nonproportional Financial Lines N O N E 6

83 Years in Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - OCCURENCE CUMULATIVE PAID NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) Number of Claims Closed With Loss Payment. Prior Number of Claims Closed Without Loss Payment XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 60 9 SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART S - FINANCIAL GUARANTY/MORTGAGE GUARANTY. Prior XXX XXX XXX XXX XXX XXX XXX 000 XXX XXX NONE. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART T - WARRANTY. Prior XXX XXX XXX XXX XXX XXX XXX ,77. 0 XXX XXX XXX XXX XXX XXX XXX XXX 98, XXX XXX XXX XXX XXX XXX XXX XXX XXX 8 66

84 Years in Which Losses Were Incurred. Prior. 007 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART A - HOMEOWNERS/FARMOWNERS BULK AND IBNR RESERVES ON NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) XXX XXX XXX 7 (). 00 XXX XXX XXX 6 () () 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX. Prior XXX SCHEDULE P - PART B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX. Prior. 007 SCHEDULE P - PART C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL. 008 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 6 70 () 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX XXX XXX XXX XXX XXX,68. Prior. 007 SCHEDULE P - PART D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION). 008 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX XXX,0,87,876, XXX XXX XXX XXX XXX XXX 8,66,,9, XXX XXX XXX XXX XXX XXX XXX 6, 9,98, XXX XXX XXX XXX XXX XXX XXX XXX 7,00 0,. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,66. Prior XXX. 009 XXX XXX SCHEDULE P - PART E - COMMERCIAL MULTIPLE PERIL. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

85 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - OCCURRENCE Years in Which Losses Were Incurred. Prior. 007 BULK AND IBNR RESERVES ON NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) XXX. 009 XXX XXX NONE. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 0 SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY). Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX. Prior. 007 SCHEDULE P - PART H - SECTION - OTHER LIABILITY - OCCURRENCE. 008 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,67,, XXX XXX XXX XXX XXX XXX,0,6,900, XXX XXX XXX XXX XXX XXX XXX 6,78,96, XXX XXX XXX XXX XXX XXX XXX XXX 0,00 6, XXX XXX XXX XXX XXX XXX XXX XXX XXX,08. Prior XXX SCHEDULE P - PART H - SECTION - OTHER LIABILITY - CLAIMS-MADE. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX

86 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, BURGLARY, AND THEFT) Years in Which Losses Were Incurred BULK AND IBNR RESERVES ON NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX (88). 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART J - AUTO PHYSICAL DAMAGE. Prior XXX XXX XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 7 SCHEDULE P - PART K - FIDELITY/SURETY. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH). Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART M - INTERNATIONAL. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 69

87 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part N - Reinsurance - Nonproportional Property N O N E Schedule P - Part O - Reinsurance - Nonproportional Liability N O N E Schedule P - Part P - Reinsurance - Nonproportional Financial Lines N O N E 70

88 Years in Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - OCCURENCE BULK AND IBNR RESERVES ON NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX, SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART S - FINANCIAL GUARANTY/MORTGAGE GUARANTY. Prior XXX XXX XXX XXX XXX XXX XXX NONE. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART T - WARRANTY. Prior XXX XXX XXX XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 7

89 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART A - HOMEOWNERS/FARMOWNERS SECTION 007 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior,9,809,7,7,7,7,7,7, XXX. 009 XXX XXX XXX XXX XXX XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Premiums Were Earned Losses Were Incurred Prior SECTION NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END XXX XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Premiums Were Earned Losses Were Incurred SECTION CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END Prior,9,,07,070,070,070,070,070, XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX

90 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL SECTION 007 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior, XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Premiums Were Earned Losses Were Incurred SECTION NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Premiums Were Earned Losses Were Incurred SECTION CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX

91 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL SECTION 007 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Premiums Were Earned Losses Were Incurred SECTION NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Premiums Were Earned Losses Were Incurred SECTION CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END Prior ,,77,9,9,8,,,,0, XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 90,7, 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX,, XXX XXX XXX XXX XXX XXX XXX XXX XXX,

92 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION) SECTION 007 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,86,68,979,08,, XXX XXX XXX XXX XXX,99,98,70,9, XXX XXX XXX XXX XXX XXX,67 6,7 7,077 7, XXX XXX XXX XXX XXX XXX XXX,7 0,0, 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX 7,8, XXX XXX XXX XXX XXX XXX XXX XXX XXX 7, Years in Which Premiums Were Earned Losses Were Incurred SECTION NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX XXX XXX,8,78, XXX XXX XXX XXX XXX XXX XXX,7,, XXX XXX XXX XXX XXX XXX XXX XXX,80, XXX XXX XXX XXX XXX XXX XXX XXX XXX 6, Years in Which Premiums Were Earned Losses Were Incurred SECTION CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END Prior 9 () () (7) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,99,898,779,79,78, XXX XXX XXX XXX XXX,99,769,86,870, XXX XXX XXX XXX XXX XXX 8, 9,9 9,768 9, XXX XXX XXX XXX XXX XXX XXX,8,, XXX XXX XXX XXX XXX XXX XXX XXX,7 7, XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,

93 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART E - COMMERCIAL MULTIPLE PERIL SECTION 007 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Premiums Were Earned Losses Were Incurred SECTION NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Premiums Were Earned Losses Were Incurred SECTION CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

94 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part F - Medical Professional Liability - Occurrence - Section A N O N E Schedule P - Part F - Medical Professional Liability - Occurrence - Section A N O N E Schedule P - Part F - Medical Professional Liability - Occurrence - Section A N O N E Schedule P - Part F - Medical Professional Liability - Claims-Made - Section B N O N E Schedule P - Part F - Medical Professional Liability - Claims-Made - Section B N O N E Schedule P - Part F - Medical Professional Liability - Claims-Made - Section B N O N E 77, 78

95 Years in Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART H - OTHER LIABILITY - OCCURRENCE SECTION A 007 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Years in Which Premiums Were Earned Losses Were Incurred SECTION A NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Years in Which Premiums Were Earned Losses Were Incurred SECTION A CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END Prior 87 (0) (6) 98 (0) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 677,00,07, 9. 0 XXX XXX XXX XXX XXX XXX XXX 80,6, 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX,66, XXX XXX XXX XXX XXX XXX XXX XXX XXX,

96 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part H - Other Liability - Claims-Made - Section B N O N E Schedule P - Part H - Other Liability - Claims-Made - Section B N O N E Schedule P - Part H - Other Liability - Claims-Made - Section B N O N E 80

97 Years in Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART R - PRODUCTS LIABILITY - OCCURRENCE SECTION A 007 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Years in Which Premiums Were Earned Losses Were Incurred SECTION A NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Years in Which Premiums Were Earned Losses Were Incurred SECTION A CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END Prior () 69 () XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

98 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part R - Products Liability - Claims-Made - Section B N O N E Schedule P - Part R - Products Liability - Claims-Made - Section B N O N E Schedule P - Part R - Products Liability - Claims-Made - Section B N O N E 8

99 Years in Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART T - WARRANTY SECTION 007 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX XXX XXX XXX XXX,09, XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Years in Which Premiums Were Earned Losses Were Incurred SECTION NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX 8, XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Years in Which Premiums Were Earned Losses Were Incurred SECTION CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX XXX XXX XXX XXX,6, XXX XXX XXX XXX XXX XXX XXX XXX XXX,

100 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL SECTION Years in Which CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior 0,96 0,96 0,96 0,96 0,96 0,96 0,96 0, ,9,9,9,9,9,9,9,9,9, XXX,,,,,,,,,. 009 XXX XXX,76,76,76,76,76,76,76, XXX XXX XXX 6,900 6,900 6,900 6,900 6,900 6,900 6, XXX XXX XXX XXX 6,9 6,9 6,9 6,9 6,9 6, XXX XXX XXX XXX XXX 0,869 0,869 0,869 0,869 0, XXX XXX XXX XXX XXX XXX,06,06,06, XXX XXX XXX XXX XXX XXX XXX,97,97, XXX XXX XXX XXX XXX XXX XXX XXX,9,9. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,9,9. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,9. Earned Premiums (Sch P-Pt. ),9,,76 6,900 6,9 0,869,06,97,9,9 XXX SECTION Years in Which CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior 0,96 0,96 0,96 0,96 0,96 0,96 0,96 0, ,9,9,9,9,9,9,9,9,9, XXX,99,99,99,99,99,99,99,99, XXX XXX 0,86 0,86 0,86 0,86 0,86 0,86 0,86 0, XXX XXX XXX 6,8 6,8 6,8 6,8 6,8 6,8 6, XXX XXX XXX XXX,977,977,977,977,977, XXX XXX XXX XXX XXX 9,969 9,969 9,969 9,969 9, XXX XXX XXX XXX XXX XXX,86,86,86, XXX XXX XXX XXX XXX XXX XXX,9,9, XXX XXX XXX XXX XXX XXX XXX XXX 8,9 8,9. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,0,0. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,0. Earned Premiums (Sch P-Pt. ),9,99 0,86 6,8,977 9,969,86,9 8,9,0 XXX SCHEDULE P - PART 6D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION) SECTION Years in Which CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior ,8 7,8 7,8 7,8 7,8 7,8 7,8 7,8 7,8 7, XXX 8,67 8,67 8,67 8,67 8,67 8,67 8,67 8,67 8, XXX XXX 7, 7, 7, 7, 7, 7, 7, 7,. 00 XXX XXX XXX,076,076,076,076,076,076, XXX XXX XXX XXX 6, 6, 6, 6, 6, 6, 7. 0 XXX XXX XXX XXX XXX 0,80 0,80 0,80 0,80 0, XXX XXX XXX XXX XXX XXX 7,99 7,99 7,99 7, XXX XXX XXX XXX XXX XXX XXX,06,06, XXX XXX XXX XXX XXX XXX XXX XXX 9,879 9, XXX XXX XXX XXX XXX XXX XXX XXX XXX 606,8 606,8. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 606,8. Earned Premiums (Sch P-Pt. ) 7,8 8,67 7,,076 6, 0,80 7,99,06 9, ,8 XXX SECTION Years in Which CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior ,8 7,8 7,8 7,8 7,8 7,8 7,8 7,8 7,8 7, XXX 8,0 8,0 8,0 8,0 8,0 8,0 8,0 8,0 8, XXX XXX 6,66 6,66 6,66 6,66 6,66 6,66 6,66 6, XXX XXX XXX 0,98 0,98 0,98 0,98 0,98 0,98 0, XXX XXX XXX XXX 0,8 0,8 0,8 0,8 0,8 0, XXX XXX XXX XXX XXX 7,98 7,98 7,98 7,98 7, XXX XXX XXX XXX XXX XXX,687,687,687, XXX XXX XXX XXX XXX XXX XXX 88,888 88,888 88, XXX XXX XXX XXX XXX XXX XXX XXX 9,9 9,9. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,909 6,909. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,909. Earned Premiums (Sch P-Pt. ) 7,8 8,0 6,66 0,98 0,8 7,98,687 88,888 9,9 6,909 XXX 8

101 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART 6E - COMMERCIAL MULTIPLE PERIL SECTION Years in Which CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX,0,0,0,0, XXX XXX XXX XXX XXX XXX,976,976,976, XXX XXX XXX XXX XXX XXX XXX,60,60, XXX XXX XXX XXX XXX XXX XXX XXX 9,979 9, XXX XXX XXX XXX XXX XXX XXX XXX XXX,06,06. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,06. Earned Premiums (Sch P-Pt. ) 8,0,976,60 9,979,06 XXX SECTION Years in Which CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior XXX. 009 XXX XXX. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,797,797,797, XXX XXX XXX XXX XXX XXX XXX,66,66, XXX XXX XXX XXX XXX XXX XXX XXX 8,68 8, XXX XXX XXX XXX XXX XXX XXX XXX XXX 9,6 9,6. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 9,6. Earned Premiums (Sch P-Pt. ) 76 9,797,66 8,68 9,6 XXX SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE SECTION A Years in Which CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior,700,700,700,700,700,700,700, ,77,77,77,77,77,77,77,77,77, XXX,709,709,709,709,709,709,709,709, XXX XXX,70,70,70,70,70,70,70, XXX XXX XXX 8,86 8,86 8,86 8,86 8,86 8,86 8, XXX XXX XXX XXX,9,9,9,9,9, XXX XXX XXX XXX XXX,087,087,087,087, XXX XXX XXX XXX XXX XXX 96,8 96,8 96,8 96, XXX XXX XXX XXX XXX XXX XXX,878,878, XXX XXX XXX XXX XXX XXX XXX XXX,907, XXX XXX XXX XXX XXX XXX XXX XXX XXX,,. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,. Earned Premiums (Sch P-Pt. ),77,709,70 8,86,9,087 96,8,878,907, XXX SECTION A Years in Which CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior,700,700,700,700,700,700,700, ,77,77,77,77,77,77,77,77,77, XXX,7,7,7,7,7,7,7,7, XXX XXX 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8. 00 XXX XXX XXX 8,00 8,00 8,00 8,00 8,00 8,00 8, XXX XXX XXX XXX 0,98 0,98 0,98 0,98 0,98 0, XXX XXX XXX XXX XXX 8,9 8,9 8,9 8,9 8, XXX XXX XXX XXX XXX XXX 87,8 87,8 87,8 87, XXX XXX XXX XXX XXX XXX XXX 0,966 0,966 0, XXX XXX XXX XXX XXX XXX XXX XXX 6,0 6,0. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 0,9 0,9. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 0,9. Earned Premiums (Sch P-Pt. ),77,7 0,8 8,00 0,98 8,9 87,8 0,966 6,0 0,9 XXX 8

102 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part 6H - Other Liability - Claims-Made - Section B N O N E Schedule P - Part 6H - Other Liability - Claims-Made - Section B N O N E Schedule P - Part 6M - International - Section N O N E Schedule P - Part 6M - International - Section N O N E Schedule P - Part 6N- Reinsurance A - Nonproportional Property - Section N O N E Schedule P - Part 6N- Reinsurance A - Nonproportional Property - Section N O N E Schedule P - Part 6O - Reinsurance B - Nonproportional Liability - Section N O N E Schedule P - Part 6O - Reinsurance B - Nonproportional Liability - Section N O N E 86, 87

103 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE SECTION A Years in Which CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior ,78,78,78,78,78,78,78,78,78, XXX,,,,,,,,,. 009 XXX XXX,87,87,87,87,87,87,87, XXX XXX XXX,7,7,7,7,7,7, XXX XXX XXX XXX,8,8,8,8,8, XXX XXX XXX XXX XXX,8,8,8,8, XXX XXX XXX XXX XXX XXX,687,687,687, XXX XXX XXX XXX XXX XXX XXX,96,96, XXX XXX XXX XXX XXX XXX XXX XXX,70, XXX XXX XXX XXX XXX XXX XXX XXX XXX,69,69. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,69. Earned Premiums (Sch P-Pt. ),78,,87,7,8,8,687,96,70,69 XXX SECTION A Years in Which CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior ,78,78,78,78,78,78,78,78,78, XXX,089,089,089,089,089,089,089,089, XXX XXX,60,60,60,60,60,60,60, XXX XXX XXX,6,6,6,6,6,6, XXX XXX XXX XXX,668,668,668,668,668, XXX XXX XXX XXX XXX,6,6,6,6, XXX XXX XXX XXX XXX XXX,0,0,0, XXX XXX XXX XXX XXX XXX XXX,66,66, XXX XXX XXX XXX XXX XXX XXX XXX,6,6. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,08,08. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,08. Earned Premiums (Sch P-Pt. ),78,089,60,6,668,6,0,66,6,08 XXX SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS-MADE SECTION B Years in Which CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior XXX. 009 XXX XXX. 00 XXX XXX NONE XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Earned Premiums (Sch P-Pt. ) XXX SECTION B Years in Which CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) Premiums Were Earned Losses Were Incurred Current Year Premiums Earned. Prior XXX. 009 XXX XXX. 00 XXX XXX NONE XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Earned Premiums (Sch P-Pt. ) XXX 88

104 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS ($000 OMITTED) SECTION Total Net Losses Expenses Schedule P - Part Unpaid. Homeowners/Farmowners 6. Private Passenger Auto Liability/ Medical Net Losses Expenses Unpaid on Loss Sensitive Contracts Loss Sensitive as Percentage of Total Total Net Premiums Written. Commercial Auto/Truck Liability/ Medical 8,7,896. Workers Compensation 0,0 6,99. Commercial Multiple Peril,90,99 6. Medical Professional Liability - Occurrence 7. Medical Professional Liability - Claims - Made 8. Special Liability 9. Other Liability - Occurrence 0,86 8,87 0. Other Liability - Claims-Made. Special Property,7,7. Auto Physical Damage 6,76. Fidelity/Surety 799,0. Other 8 9. International Net Premiums Written on Loss Sensitive Contracts 6 Loss Sensitive as Percentage of Total 6. Reinsurance - Nonproportional Property XXX XXX XXX XXX XXX XXX 7. Reinsurance - Nonproportional Liability XXX XXX XXX XXX XXX XXX 8. Reinsurance - Nonproportional Financial Lines XXX XXX XXX XXX XXX XXX 9. Products Liability - Occurrence,76,78 0. Products Liability - Claims-Made. Financial Guaranty/Mortgage Guaranty. Warranty 6. Totals 0,6 8,9 Years in Which Policies Were Issued. Prior SECTION INCURRED LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) XXX. 009 XXX XXX NONE. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Policies Were Issued. Prior. 007 SECTION BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES AT YEAR END ($000 OMITTED) XXX. 009 XXX XXX NONE. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX

105 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part 7A - Section - Primary Loss Sensitive Contracts N O N E Schedule P - Part 7A - Section - Primary Loss Sensitive Contracts N O N E 90

106 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS ($000 OMITTED) SECTION Total Net Losses Expenses Schedule P - Part Unpaid. Homeowners/Farmowners 6. Private Passenger Auto Liability/Medical Net Losses Expenses Unpaid on Loss Sensitive Contracts Loss Sensitive as Percentage of Total Total Net Premiums Written. Commercial Auto/Truck Liability/Medical 8,7,896. Workers Compensation 0,0 6,99. Commercial Multiple Peril,90,99 6. Medical Professional Liability - Occurrence 7. Medical Professional Liability - Claims - Made 8. Special Liability 9. Other Liability - Occurrence 0,86 8,87 0. Other Liability - Claims-Made. Special Property,7,7. Auto Physical Damage 6,76. Fidelity/Surety 799,0. Other 8 9. International 6. Reinsurance - Nonproportional Property 7. Reinsurance - Nonproportional Liability 8. Reinsurance - Nonproportional Financial Lines 9. Products Liability - Occurrence,76,78 0. Products Liability - Claims-Made. Financial Guaranty/Mortgage Guaranty. Warranty 6. Totals 0,6 8,9 Net Premiums Written on Loss Sensitive Contracts 6 Loss Sensitive as Percentage of Total Years in Which Policies Were Issued. Prior SECTION INCURRED LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) XXX. 009 XXX XXX NONE. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX Years in Which Policies Were Issued. Prior. 007 SECTION BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES AT YEAR END ($000 OMITTED) XXX. 009 XXX XXX NONE. 00 XXX XXX XXX 6. 0 XXX XXX XXX XXX 7. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 0. 0 XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX

107 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company Schedule P - Part 7B - Section - Reinsurance Loss Sensitive Contracts N O N E Schedule P - Part 7B - Section - Reinsurance Loss Sensitive Contracts N O N E Schedule P - Part 7B - Section 6 - Reinsurance Loss Sensitive Contracts N O N E Schedule P - Part 7B - Section 7 - Reinsurance Loss Sensitive Contracts N O N E 9

108 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE P INTERROGATORIES. The following questions relate to yet-to-be-issued Extended Reporting Endorsements (EREs) arising from Death, Disability, or Retirement (DDR) provisions in Medical Professional Liability Claims Made insurance policies. EREs provided for reasons other than DDR are not to be included.. Does the company issue Medical Professional Liability Claims Made insurance policies that provide tail (also known as an extended reporting endorsement, or ERE ) benefits in the event of Death, Disability, or Retirement (DDR) at a reduced charge or at no additional cost? Yes [ ] No [ X ] If the answer to question. is no, leave the following questions blank. If the answer to question. is yes, please answer the following questions:. What is the total amount of the reserve for that provision (DDR Reserve), as reported, explicitly or not, elsewhere in this statement (in dollars)? $. Does the company report any DDR reserve as Unearned Premium Reserve per SSAP #6? Yes [ ] No [ ]. Does the company report any DDR reserve as loss or loss adjustment expense reserve? Yes [ ] No [ ]. If the company reports DDR reserve as Unearned Premium Reserve, does that amount match the figure on the Underwriting Investment Exhibit, Part A Recapitulation of all Premiums (Page 7) Column, Lines. plus.? Yes [ ] No [ ] N/A [ ].6 If the company reports DDR reserve as loss or loss adjustment expense reserve, please complete the following table corresponding to where these reserves are reported in Schedule P:.60 Prior Totals Years in Which Premiums Were Earned Losses Were Incurred DDR Reserve Included in Schedule P, Part F, Medical Professional Liability Column : Total Net Losses Expenses Unpaid Section : Occurrence Section : Claims-Made. The definition of allocated loss adjustment expenses (ALAE), therefore, unallocated loss adjustment expenses (ULAE) was changed effective January, 998. This change in definition applies to both paid unpaid expenses. Are these expenses (now reported as Defense Cost Containment Adjusting Other ) reported in compliance with these definitions in this statement? Yes [ X ] No [ ]. The Adjusting Other expense payments reserves should be allocated to the years in which the losses were incurred based on the number of claims reported, closed outsting in those years. When allocating Adjusting Other expense between companies in a group or a pool, the Adjusting Other expense should be allocated in the same percentage used for the loss amounts the claim counts. For reinsurers, Adjusting Other expense assumed should be reported according to the reinsurance contract. For Adjusting Other expense incurred by reinsurers, or in those situations where suitable claim count information is not available, Adjusting Other expense should be allocated by a reasonable method determined by the company described in Interrogatory 7, below. Are they so reported in this Statement? Yes [ X ] No [ ]. Do any lines in Schedule P include reserves that are reported gross of any discount to present value of future payments, that are reported net of such discounts on Page 0? Yes [ X ] No [ ] If yes, proper disclosure must be made in the Notes to Financial Statements, as specified in the Instructions. Also, the discounts must be reported in Schedule P - Part, Columns. Schedule P must be completed gross of non-tabular discounting. Work papers relating to discount calculations must be available for examination upon request. Discounting is allowed only if expressly permitted by the state insurance department to which this Annual Statement is being filed.. What were the net premiums in force at the end of the year for: (in thouss of dollars). Fidelity,9. Surety 6. Claim count information is reported per claim or per claimant (Indicate which). per claimant If not the same in all years, explain in Interrogatory The information provided in Schedule P will be used by many persons to estimate the adequacy of the current loss expense reserves, among other things. Are there any especially significant events, coverage, retention or accounting changes that have occurred that must be considered when making such analyses? Yes [ X ] No [ ] 7. (An extended statement may be attached.) Discounting of Workers' Compensation reserves was adopted effective --6. The details can be found in footnotes of the Annual Statement. 9

109 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE T - EXHIBIT OF PREMIUMS WRITTEN Gross Premiums, Including Policy Membership Fees, Less Return Premiums Premiums on Policies Not Taken Allocated by States Territories Premiums Written for Federal Purchasing Groups (Included in Column ) Dividends Paid or Finance Credited to Losses Service Policyholders Paid Charges Not Active Premiums Premiums on (Deducting Losses Losses Included in States, Etc. Status Written Earned Business Salvage) Incurred Unpaid Premiums. Alabama AL L,8,,,87 8,67,77 980,96 7. Alaska AK L. Arizona AZ L,6,006 98,66,87 6,00 9,. Arkansas AR L,79,6,706,09 9, 7,76,7,7 0. California CA L 6,88,8 67,08, 90,9,6 70,,09 08,00,8,0,8 6. Colorado CO L,7,779,0,67,08, 8,7,6,7, Connecticut CT L,66,96,,90,88 78,88 978,,0 8. Delaware DE L,07,6 96,89 0,8 9,7 6, 7,9 9. District of Columbia DC L,60, Florida FL E,96,70,9,6 9,,88 6,70,7,87,7. Georgia GA L 8,9,,00,7,6,8 7,,09 9,07,6,6. Hawaii HI L. Idaho ID L 697,000 69, 0,9 6,067 0,70. Illinois IL L 6,9,0,6, 6,87, 8,,69,9,,97. Indiana IN L,997,76,,69 8,6,09,,66, Iowa IA L,07,08,8,860 0,86 (,9) 79,8 7. Kansas KS L 8,968 8,998 78,0 69, 76, Kentucky KY L,76,7,979,09 67,000 6,980,8, Louisiana LA L 8,999 6,87 98,,76,6, Maine ME L 8,7,87 7,0 6,0 88,987. Maryl MD L,97,789,9,,86 9,,8,7,9. Massachusetts MA L,8,,6,97 787,68,98,97,,00 0,. Michigan MI L,7,,7,0,90,60,,89,00,7. Minnesota MN L 7,90,996 8,07,0,79,0,89,60,, Mississippi MS L 9,0 78,0 8,6 9,7 70, Missouri MO L,980,99,8,97,0,9,87,7,78,80 7. Montana MT L,99,07,6,90 96,778 7,67,99, Nebraska NE L,066,68,00,00 6,86 60,7 6, Nevada NV L 9,0,70 9,08,68,989,09,677,9 8,7, New Hampshire NH L,7,969,69,60 8, 96,9 779,80,0. New Jersey NJ L 7,6 8,7 6,66 9,77,99. New Mexico NM L,60,,7,8 0,9 6,87,0,6 9. New York NY L 6,9,0,70,8,00,70,8,69,770,70,0. North Carolina NC L,607,86,8,9,0,,69,7,6,7,98. North Dakota ND L,7 67,0,7 (89,8) 87, 6. Ohio OH L 9,90,009,66 80,0 890,,0,0 7. Oklahoma OK L 7,08,76 6,60,70,80,9,96,6,977, Oregon OR L,69,88,8,97,8,87,0,6 7,000,66 9. Pennsylvania PA L,9,,86,997,0,9,60,0 6,6,7 7, Rhode Isl RI L 99,7 0,98 8,76 76,08,67 9. South Carolina SC L 6, 7,9 0,776 (76,0) 0,79. South Dakota SD L 698,09 87,0 0,09 (9,96) 7,9. Tennessee TN L,6,79,9,67,6,,60,,,7 6,9. Texas TX L 9,0,0 8,079,788,09, 9,769,70 0,869,,. Utah UT L,8,87,,69 6,6,,98,,, Vermont VT L,,9,,6,09 90,79,09,008, Virginia VA L,76,86,,66,9,,60,99,8,,8 8. Washington WA L 8,8, 8,680,7,6,67 6,7,860,88, West Virginia WV L 79,6 68,690 0,60 (6,78) 70, Wisconsin WI L 7,8,66 8,,760,7,86,98,7,8,8,80,0 (00). Wyoming WY L 80,7 8,78 7,97 7,70 8,9. American Samoa AS N. Guam GU N. Puerto Rico PR N. U.S. Virgin Isls VI N 6. Northern Mariana Isls MP N 7. Canada CAN N 8. Aggregate other alien OT XXX 9. Totals (a) 0 87,7,778 87,,60,7,86 8,86,67 08,6, 79,9,9,09,8 DETAILS OF WRITE-INS 800. XXX 800. XXX 800. XXX Summary of remaining write-ins for Line 8 from overflow page XXX Totals (Lines 800 through 800 plus 8998)(Line 8 above) XXX (L) Licensed or Chartered - Licensed Insurance Carrier or Domiciled RRG; (R) Registered - Non-domiciled RRGs; (Q) Qualified - Qualified or Accredited Reinsurer; (E) Eligible - Reporting Entities eligible or approved to write Surplus Lines in the state; (N) None of the above - Not allowed to write business in the state. Explanation of basis of allocation of premiums by states, etc. Location of Property, Risk, or Insured (a) Insert the number of L responses except for Canada Other Alien. 9

110 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE T - PART INTERSTATE COMPACT - EXHIBIT OF PREMIUMS WRITTEN Allocated by States Territories States, Etc.. Alabama AL. Alaska AK. Arizona AZ. Arkansas AR. California CA 6. Colorado CO 7. Connecticut CT 8. Delaware DE 9. District of Columbia DC 0. Florida FL. Georgia GA. Hawaii HI. Idaho ID. Illinois IL. Indiana IN 6. Iowa IA 7. Kansas KS 8. Kentucky KY 9. Louisiana LA 0. Maine ME. Maryl MD. Massachusetts MA. Michigan MI. Minnesota MN. Mississippi MS 6. Missouri MO Life (Group Individual) Annuities (Group Individual) Business Only Disability Income (Group Individual) 7. Montana MT 8. Nebraska NONE NE 9. Nevada NV 0. New Hampshire NH. New Jersey NJ. New Mexico NM. New York NY. North Carolina NC. North Dakota ND 6. Ohio OH 7. Oklahoma OK 8. Oregon OR 9. Pennsylvania PA 0. Rhode Isl RI. South Carolina SC. South Dakota SD. Tennessee TN. Texas TX. Utah UT 6. Vermont VT 7. Virginia VA 8. Washington WA 9. West Virginia WV 0. Wisconsin WI. Wyoming WY. American Samoa AS. Guam GU. Puerto Rico PR. U.S. Virgin Isls VI 6. Northern Mariana Isls MP 7. Canada CAN 8. Aggregate Other Alien OT 9. Total Long-Term Care (Group Individual) Deposit-Type Contracts 6 Totals 9

111 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE Y INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART ORGANIZATIONAL CHART Leah Karfunkel (.%) () George Karfunkel (9.0%) () Barry Zyskind (7.%) () NATIONAL GENERAL HOLDINGS CORP. () (Exhibit A) AMTRUST FINANCIAL SERVICES, INC. () MAIDEN HOLDINGS, LTD () 90 (DE) NAIC Group Code NAIC Group Code AmTrust Insurance Company of Kansas, Inc. (KS) NAIC Code 9; FEIN 7-99 Republic Companies, Inc. (DE) AmTrust North America, Inc. (DE) AMT Warranty Corp. (DE) AmTrust North America of Florida, Inc. (FL) Republic Underwriters Insurance Company (TX) NAIC Code 8; FEIN 7-7 CNH Industrial Insurance Agency Inc. (DE) Warrantech Corporation (NV) AMTCS Holdings, Inc. (DE) Associated Industries Insurance Company, Inc. (FL) NAIC Code 0; FEIN Republic-Vanguard Insurance Company (AZ) NAIC Code 079; FEIN CNH Industrial Canada Insurance Agency Ltd. (Canada) 07 AMT Road Services Corp. (DE) AMT Consumer Services, Inc. (DE) Boca NW6, LLC (DE) AmTrust Title Insurance Company (NY) NAIC Code 78; FEIN -88 ARI Holdco Inc. (DE) Southern Underwriters Insurance Company (OK) NAIC Code 0809; FEIN Republic Fire Casualty Insurance Company (OK) NAIC Code 080; FEIN East Ninth & Superior, LLC (DE) (7) First Nonprofit Insurance Agency, Inc. (IL) National Home Surety Inc. (DE) Warrantech Automotive, Inc. (CT) Vemeco, Inc. (CT) ToCo Warranty Corp. (DE) CPP LLC (DE) CPP Florida LLC (FL) CPP Travel LLC (DE) ARI Insurance Company (PA) NAIC Code 900; FEIN -088 ARI Casualty Company (NJ) NAIC Code 7680; FEIN CorePointe Insurance Company (MI) NAIC Code 099; FEIN Southern Insurance Company (TX) NAIC Code 96; FEIN Republic Diversified Services, Inc. (DE) Republic Lloyds (TX) NAIC Code 908; FEIN Republic Group No. Two Company (MO) Northcoast Warranty Services, Inc. (DE) Signal Acquisition LLC (DE) Signal Service Solutions, LLC (DE) AmTrust E&S Insurance Services, Inc. (DE) 08 Warrantech Automotive of Canada, Inc. (Canada) Warrantech Automotive of Florida, Inc. (FL) Westport Reinsurance Limited (Turks & Caicos Isls) Warrantech Caribbean, LTD (Gr Cayman Isls) CPP Warranties LLC (DE) The CPP Insurance Agency LLC (DE) The Finest Service Organization, LLC (DE) (8) FSO LLC (DE) 96 CorePointe Insurance Agency, Inc. (MI) First Nonprofit Insurance Company (DE) NAIC Code 089; FEIN Southern County Mutual Insurance Company (TX) NAIC Code 786; FEIN Canyon State Auto Insurance Services, Inc. (AZ) AMT Title, LLC (DE) First Nationwide Title Agency LLC (NY) Warrantech Consumer Product Services, Inc. (CT) Warrantech Home Service Company (CT) OwnerGUARD Corporation (CA) OwnerGUARD Agency (CA) Heritage Indemnity Company (CA) NAIC Code 97; FEIN 9- Eagle General Agency, Inc. (TX) First Nationwide Title Agency of Texas LLC (TX) 7 Warrantech Home Assurance Company (FL) OwnerGUARD University (CA) Insco Insurance Services, Inc. (CA) AMT Warranty Solutions, Inc. (DE) First Nationwide 0 LLC (NY) WHSC, Inc. (TX) AMT Home Protection Company (CA) Builders Insurance Services, LLC (DE) 7 West Jefferson LLC (DE) AMT Agency Holdings, Inc. (DE) WCPS of Florida, Inc. (FL) Developers Surety Indemnity Company (CA) NAIC Code 78; FEIN Heritage Mechanical Breakdown Corporation (DE) Advantage Comp, Inc. (NJ) Warrantech, Inc. (TX) Indemnity Company of California (CA) NAIC Code 0; FEIN 9- Warranty Solutions Administrative Services, Inc.(FL) AmCom Insurance Services, Inc. (CA) Reinsurance, Ltd. (Turks & Caicos Isls) Vista Surety Insurance Solutions, LLC (CA) Warranty Solutions Management Corporation (CA) AmTrust Agriculture Insurance Services, LLC (CA) 0 W Corp. (DE) Milwaukee Casualty Insurance Co. (WI) NAIC Code 666; FEIN WS Aftermarket Services Corporation (DE) Assure Space, LLC (DE) Warrantech I, L.P. (TX) Security National Insurance Company (DE) NAIC Code 9879; FEIN Sequoia Insurance Company (CA) NAIC Code 98; FEIN Sequoia Indemnity Company (NV) NAIC Code 8; FEIN Technology Insurance Company, Inc. (DE) NAIC Code 76; FEIN AII Investment Holdings Ltd. (Bermuda) () Wesco Insurance Company (DE) NAIC Code 0; FEIN Primero Seguros, S.A. de C.V. (Mexico) () Westlake Insurance Company (Bermuda), Ltd. (Bermuda) AMTS Holding Corp. (DE) AMT Warranty Corp. of Canada, ULC (Alberta) AmTrust North America of Texas, Inc. (DE) Unified Grocers Insurance Services (CA) Builders & Tradesmen's Insurance Services, Inc. (CA) 00 LAE Insurance Services, Inc. (CA) Oryx Insurance Brokerage, Inc. (NY) Total Program Management, LLC (NY) United Underwriting Agency, Inc. (DE) AmTrust Underwriters, Inc. (DE) Warrantech International, Inc. (DE) Warrantech International de Chile (Chile) Warrantech Peru SRL (Peru) Warrantech Management Company (DE) Warrantech Management Holding Company (DE) Warrantech Management Limited Partnership (TX) All ownership is 00% unless otherwise noted Shaded box indicates an insurance company Number in blue indicates trading partner number First Nonprofit Companies, Inc. (IL)

112 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE Y INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART ORGANIZATIONAL CHART AMTRUST FINANCIAL SERVICES, INC. () AmTrust Financial Services, Inc. Page RS Acquisition Holdco, LLC (DE) (9) AmTrust International Insurance, Ltd. (Bermuda) PBOA, Inc. (FL) AmTrust Bermuda I Ltd. (Bermuda) (0) Agent Alliance Reinsurance Company, Ltd. (Bermuda) Risk Services - Arizona, Inc. (AZ) AmTrust Bermuda II Ltd. (Bermuda) AMT Global Realty Holdings LLC (DE) Risk Services (Bermuda) Ltd. (Bermuda) AmTrust Bermuda III Ltd. (Bermuda) 777 Cowan LLC (DE) Risk Services - (Hawaii), Ltd. (HI) AmTrust Holdings Luxembourg S.à r.l. (Luxembourg) AII Reinsurance Broker, Ltd. (Bermuda) NJ Realty Partners, LLC (DE) () Risk Services - Nevada, Inc. (NV) Aries Capital Holdings, LLC (DE) AII Insurance Management Limited (Bermuda) AMT NY Realty Holdings, LLC (NY) Risk Services - Vermont, Inc. (VT) AmTrust Captive Solutions Limited (Luxembourg) AmTrust Equity Solutions, Ltd. (Bermuda) (6) 7 St. Nicholas Holdings LLC (NY) (9) Risk Services Intermediaries (Bermuda) Ltd. (Bermuda) AMT Chronos S.A. (Luxembourg) AMT Capital Holdings III S.A. (Luxembourg) AmTrust Bermuda IV Ltd. (Bermuda) () Risk Services, LLC (VA) AMT Hestia S.à r.l. (Luxembourg) AMT Capital Alpha, LLC (DE) (7) AmTrust International Bermuda Ltd. (Bermuda) 60 Market Place, LLC (DE) AMT Plutus S.A. (Luxembourg) Tiger Capital, LLC (DE) (8) Executive Boulevard Southington, LLC (DE) LBJ Freeway LLC (DE) (0) 800 Superior, LLC (DE) () Capital Oakl Holdings, LLC (DE) Lion Capital Beta, LLC (DE) AMT do Brasil Holdings Limited (Engl) AmTrust Insurance Luxembourg S. A. (Luxembourg) 067 AmTrust International Underwriters DAC (Irel) NAIC Alien ID: AA Superior NMTC Investment Fund II LLC (OH) () AmTrust Irel Holdings Limited (Irel) AmTrust Management Services Irel Limited (Irel) AFS Realty Member, LLC (DE) AmTrust Netherls Holdings B.V. (Netherls) AmTrust Nordic, AB (Sweden) AFS Realty Holdings, LLC (DE) N.V. Nationale Borg-Maatschappij (Netherls) AmTrust Nordic Holdings Europe AB (Sweden) 6 East th Purchaser LLC (NY) Nationale Borg Reinsurance N.V. (Curaçao) AmTrust Insurance Services Sweden AB (Sweden) AMT RE NY Holdings LLC (DE) () Nationale Waarborg B.V. (Netherls) AmTrust Insurance Services Norway AS (Norway) REAF Holdings LLC (DE) N.V. Belegging-en Beheermaatschapij (Netherls) AmTrust Holding Sweden Europe AB (Sweden) AMT Investments LLC (DE) AMT Global, LLC (DE) AmTrust Ventures I, LLC (DE) () Rock Run South, LLC (DE) AmTrust Irel Holdings II Limited (Irel) AmTrust Insurance Agency Italy S.r.l. (Italy) Redray Pte. Ltd. (Singapore) Rochdale Insurance Company (NY) NAIC Code 9; FEIN TMI Solutions, LLC (WA) Canada Warranty Solutions LLC (WA) Rocklin Sierra College LLC (DE) AmTrust International Limited (Engl)[cont'd on Page ] Westside Parkway, GA, LLC (DE) All ownership is 00% unless otherwise noted AMT Capital Holdings S. A. (Luxembourg) (6) Shaded box indicates an insurance company Lion Capital Alpha, LLC (DE) Number in blue indicates trading partner number Cord Holdings LLC (DE)

113 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE Y INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART ORGANIZATIONAL CHART AmTrust International Limited (Engl) [cont'd from Page ] AmTrust Financial Services, Inc. Page AmTrust Lloyd's Holdings Limited (The Cayman Isls) Car Care Plan (Holdings) Limited (Engl) 0 Therium Group Holdings Limited (Jersey) (8) AmTrust Lloyd's Holdings (UK) Limited (Engl) AmTrust Corporate Member Limited (Engl) 908 Car Care Pension Trustees Limited (Engl) Therium Capital Management Limited (Engl) ANV Holding B.V. (Netherls) AmTrust Corporate Member Two Limited (Engl) Car Care Plan Limited (Engl) Therium Finance ICC (Jersey) 9 ANV International B.V. (Netherls) RHL Corporate Name No. Limited (Engl) Car Care Plan do Brasil Participacoes LTDA (Brazil) Therium Luxembourg Sarl (Luxembourg) (9) ANV Central Bureau of Services Ltd. (Engl) AmTrust Syndicate Holdings Limited (Engl) Car Care Plan GmbH (Germany) Therium Inc. (DE) ANV Services US Inc. (DE) AmTrust Claims Services, Inc. (California) Commercial Care Plan Limited (Engl) AmTrust France SAS (France) ANV MGA Services B.V. (Netherls) AmTrust at Lloyd's Limited (Engl) Shanghai First Response Service Co. Ltd (China) Arc Legal Assistance Limited (Engl) ANV Global Services Ltd. (Engl) AmTrust Syndicate Services Limited (Engl) AmTrust Management & Consultancy (China) Co., Ltd. (China) AmTrust Revive Limited (Engl) ANV Global Services Inc. (NY) AmTrust Underwriting Limited (Engl) DSSA Warranty Danışmanlık Anonim Şirketi (Turkey) AmTrust Insurance Spain, S.L.U. (Spain) ANV Risk B.V. (Netherls) AmTrust Cayman Reinsurance Company, Ltd. (The Cayman Isls) Car Care Plan Management Services Limited (Engl) AmTrust Gestion Bolivia S.R.L. (Bolivia) (0) ANV Holdings (UK) Ltd. (Engl) 96. AmTrust Europe Limited (Engl) AmTrust Italia S.R.L. (Italy) Motors Insurance Company Limited (Engl) Composite Holdings Limited (Engl) AmTrust Gestion Paraguay S.A. (Paraguay) (0) AmTrust Gestion Peru S.A.C. (Peru) (0) ANV Corporate Name Ltd. (Engl) ANV Syndicate Management Ltd. (Engl) AmTrust Europe Legal, Limited (Engl) Pedigree Livestock Insurance Limited (Engl) RightClaim Limited (Engl) AMT Mortgage Insurance Limited (Engl) AMT Mortgage Services Limited (Engl) Collegiate Limited (Engl) Collegiate Management Services Limited (Engl) Collegiate Insurance Brokers Limited (Engl) AMT Exchequer Court Limited (Engl) () AMT Exchequer (Jersey) No. Limited (Jersey) AMT Exchequer (Jersey) No. Limited (Jersey) Composite Assistance Limited (Engl) Composite Legal Expenses Limited (Engl) CLE Investments Limited (Engl) Composite Legal Services Limited (Engl) AmTrust Mobile Solutions Singapore PTE. LTD. (Singapore) () AmTrust Mobile Solutions Malaysia Holdings Sdn. Bhd. (Malaysia) AmTrust Mobile Solutions Malaysia Sdn. Bhd.. (Malaysia) Tecprotec AVA Sdn. Bhd. (Malaysia) PT AmTrust Mobile Solutions Indonesia Holdings (Indonesia) AmTrust Mobile Solutions India Holdings Private Limited (India) Tecprotec LLC (Russia) Finagra Group Limited (Engl) () Finagra Grains Limited (Engl) (6) Finagra USA Inc. (CT) AmCafe LLC (DE) Gadget Repair Solutions Limited (Engl) (7) AA Gadget Repair Limited (Irel) (Gadget Repair Solutions) Mobile Repair Solutions Malaysia SDN. BHD. (Malaysia) AmTrust Claims Management SrL (Italy) Caravan Security Storage Limited (Engl) Dore & Associates Holdings Limited (Engl) Dore Underwriting Services Limited (Engl) I.G.I. Administration Services Limited (Engl) I.G.I. Intermediaries Limited (Engl) Oakwood Village Limited (Engl) AmTrust Syndicates Ltd. (Engl) All ownership is 00% unless otherwise noted Shaded box indicates an insurance company AmTrust Corporate Capital Limited (Engl) AmTrust Mobile Solutions India Private Limited (India) () Number in blue indicates trading partner number AmTrust Management Services, Limited (Engl)

114 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE Y INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART ORGANIZATIONAL CHART 96. Footnotes: () Barry Zyskind, George Karfunkel, Leah Karfunkel, acting as a group, have publicly filed with the Securities Exchange Commission a notice on Schedule D AmTrust Financial Services, Inc. with respect to the common stock of AmTrust Financial Services, Inc. that each person controls. Page () AmTrust is a publicly-traded company listed on the NASDAQ global exchange under the ticker symbol "AFSI". Unless indicated otherwise, AmTrust owns 00% of all direct subsidiaries. () Various subsidiaries of AmTrust collectively own.6% of the entity's outsting common stock. Leah Karfunkel, as trustee of Leah Karfunkel 06-NG GRAT (.8%) the Michael Karfunkel Family 00 Trust (0.%) directly indirectly own.9% of the entity's common stock. Leah Karfunkel, the widow of Michael Karfunkel, has all powers of a sole trustee with respect to the entity's common stock held by each trust. () AmTrust's principal shareholders, Leah Karfunkel, as a trustee of the Trust, George Karfunkel, Barry Zyskind own or control approximately 9.%,.% 8.7%, respectively, of the entity's issued outsting capital stock. Mrs. Karfunkel has sole voting dispositive power over the shares held by the Trust. () Wesco Insurance Company owns 99.9%, Primero Promotora de Ventas, S.A. de C.V. owns the remaining 0.%. (6) AmTrust American Capital Acquisition Investments S.A. each own 0%. (7) AmTrust North America, Inc. National General Holdings Corp. each own 0%. (8) AMT Warranty Corp. owns 6% Shon LLC owns the remaining %. (9) AmTrust owns 80% (Class A Voting Interest) Michael Rogers owns 0% (Class B Non-Voting Interest). (0) AmTrust owns 0%, National General Re Ltd. owns the remaining 0%. () AmTrust Integon National Insurance Company each own 0%. () AmTrust National General Holdings Corp. are each a.% member. () This entity has a non-controlling interest in West Holdings LLC, a NY LLC, which also has other investors. () Technology Insurance Company, Inc. owns.%; Wesco Insurance Company owns.%; Associated Industries Insurance Company, Inc. owns.6%; CorePointe Insurance Company owns 8.89%; First Nonprofit Insurance Company owns 7.78%; Developers Surety Indemnity Company owns.%. () AmTrust owns 90%, the David Friedberg Revocable Trust, David Friedberg, Trustee owns the remaining 0%. (6) AII Insurance Management Limited AII Reinsurance Broker Ltd. each own 0%. (7) AMT Capital Holdings III S.A. American Capital Acquisition Investments S.A. each own 0%. (8) AMT Capital Holdings III S.A. American Capital Acquisition Investments S.A. each own 0% Class A Interests. (9) AMT NY Realty Holdings, LLC owns 90% Stoneblock Group, LLC owns the remaining 0%. (0) AmTrust International Insurance, Ltd. owns 0% AmTrust North America, Inc. owns the remaining 0%. () AmTrust International Insurance, Ltd. owns 60% AmTrust International Bermuda owns the remaining 0%. () AmTrust International Limited owns % InvestinAsia Pte. Ltd., a Singapore company, owns %. () AmTrust Mobile Solutions Malaysia Holdings Sdn. Bhd. owns 0% Essar Retail Holdings Private Limited owns the remaining 0% () AmTrust International Limited owns 0.000% Car Care Plan Limited owns %. () AmTrust International Limited owns.99%, certain other entities own the remaining 77.0%. (6) AmTrust Europe Limited owns 0% Ordinary Shares 00% Preferred, Series A Shares Finagra Group Limited owns 0% Ordinary Shares 00% Preferred, Series B Shares. (7) AmTrust International Limited owns 88.%, certain continuing shareholders own a total of.8%. (8) AmTrust International Limited owns 0%, certain other entities own the remaining 0%. The company owns additional entities that are not reflected on this organizational chart. (9) Therium Group Holdings Limited owns 80% certain other entities own the remaining 0%. (0) AmTrust Insurance Spain, S.L.U. owns 99% AmTrust International Limited owns %. () AmTrust Europe Limited owns 7.%; AmTrust Italia S.R.L. owns.%; Motors Insurance Company Limited owns 0.0%. () AmTrust International Insurance, Ltd. owns 80% Bonim Capital LLC owns 0% DORMANT ENTITIES: Strongwood Risk Management Solutions, LLC (CA); ARI Services, Inc. (NJ).

115 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Security National Insurance Company SCHEDULE Y INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART ORGANIZATIONAL CHART 96.