* * 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 Weston Insurance Company NAIC Group Code 00000, NAIC Company Code 490 Employer s ID Number (Current Period) (Prior Period) Organized under the Laws of Florida, State of Domicile or Port of Entry Florida Country of Domicile United States Incorporated/Organized 0//0 Commenced Business //0 Statutory Home Office 555 Ponce de Leon Boulevard, Suite 00, Coral Gables, FL, US (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 555 Ponce de Leon Boulevard, Suite 00 Coral Gables, FL, US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address P.O.Box 4-057, Coral Gables, FL, US (Street and Number or P.O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records 555 Ponce de Leon Boulevard, Suite 00 Coral Gables, FL, US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Web Site Address Statutory Statement Contact Rachael Lynn Aldulaimi (Name) (Area Code) (Telephone Number) (Extension) rachael.aldulaimi@weston-ins.com ( Address) (Fax Number) OFFICERS Name Title Name Title Michael Christopher Lyons, Chief Executive Officer & President Bryan Triplett McCully, Chief Operating Officer & Secretary Richard Bruno Primerano, Chief Financial Officer & Treasurer Richard Ryan Gadapee, General Counsel OTHER OFFICERS Deanne Dietrich Nixon, Chief Underwriting Officer, DIRECTORS OR TRUSTEES Michael Christopher Lyons Bryan Triplett McCully Gregory Ernest Alexander Morrison Deanne Dietrich Nixon Richard Bruno Primerano State of County of Florida Miami-Dade ss The officers of this reporting entity, being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: () state law may differ; or, () that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement. Michael Christopher Lyons Bryan Triplett McCully Richard Bruno Primerano Chief Executive Officer & President Chief Operating Officer & Secretary Chief Financial Officer & Treasurer a. Is this an original filing? Yes [ X ] No [ ] Subscribed and sworn to before me b. If no: this day of February, 07. State the amendment number. Date filed. Number of pages attached R. Ryan Gadapee, Notary Public November 4, 07

2 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company ASSETS Current Year Prior Year 4 Assets Nonadmitted Assets Net Admitted Assets (Cols. - ) Net Admitted Assets. Bonds (Schedule D) 6,0 6,0 0. Stocks (Schedule D):. Preferred stocks Common stocks Mortgage loans on real estate (Schedule B):. First liens 0 0. Other than first liens Real estate (Schedule A): 4. Properties occupied by the company (less $ encumbrances) Properties held for the production of income (less $ encumbrances) Properties held for sale (less $ encumbrances) Cash ($ 4,,44, Schedule E-Part ), cash equivalents ($ 46,988,4, Schedule E-Part ) and short-term investments ($ 0, Schedule DA) 6,0,86 6,0,86 98,08, Contract loans (including $ premium notes) Derivatives (Schedule DB) Other invested assets (Schedule BA),50,000,50, Receivables for securities Securities lending reinvested collateral assets (Schedule DL) 0 0. Aggregate write-ins for invested assets Subtotals, cash and invested assets (Lines to ) 64,486, ,486,88 98,08,000. Title plants less $ charged off (for Title insurers only) Investment income due and accrued Premiums and considerations: 5. Uncollected premiums and agents balances in the course of collection 6,66,789 84,84 6,578,946,995, Deferred premiums, agents balances and installments booked but deferred and not yet due (including $ earned but unbilled premiums) 4,640,54 4,640,54 4,90, Accrued retrospective premiums ($ ) and contracts subject to redetermination ($ ) Reinsurance: 6. Amounts recoverable from reinsurers 98,58 98, Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon 887,85 887, Net deferred tax asset 849,89 849,89 65,74 9. Guaranty funds receivable or on deposit Electronic data processing equipment and software 0 0. Furniture and equipment, including health care delivery assets ($ ) 0 0. Net adjustment in assets and liabilities due to foreign exchange rates 0 0. Receivables from parent, subsidiaries and affiliates,778,9,778,9,806,96 4. Health care ($ ) and other amounts receivable Aggregate write-ins for other-than-invested assets,75,9 0,75, Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines to 5) 8,55,946 84,84 8,07,0 08,467, 7. From Separate Accounts, Segregated Accounts and Protected Cell Accounts Total (Lines 6 and 7) 8,55,946 84,84 8,07,0 08,467, DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page Totals (Lines 0 through 0 plus 98) (Line above) Premium Tax Recoverable,4,57,4, Brokerage Sharing Commission Receivable,5,46,5, State Income Tax Recoverable 76,698 76, Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above),75,9 0,75,9 0

3 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company LIABILITIES, SURPLUS AND OTHER FUNDS Current Year Prior Year. Losses (Part A, Line 5, Column 8) 54,479 0,59. Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part, Column 6) 0. Loss adjustment expenses (Part A, Line 5, Column 9) 609,446 54,57 4. Commissions payable, contingent commissions and other similar charges 0 5. Other expenses (excluding taxes, licenses and fees) 0 6. Taxes, licenses and fees (excluding federal and foreign income taxes), , Current federal and foreign income taxes (including $ on realized capital gains (losses)) 0 7. Net deferred tax liability 0 8. Borrowed money $ and interest thereon $ 0 9. Unearned premiums (Part A, Line 8, Column 5) (after deducting unearned premiums for ceded reinsurance of $ 5,0,07 and including warranty reserves of $ and accrued accident and health experience rating refunds including $ for medical loss ratio rebate per the Public Health Service Act) Advance premium,609,00,79,8. Dividends declared and unpaid:. Stockholders 0. Policyholders 0. Ceded reinsurance premiums payable (net of ceding commissions),59,46 8,797,00. Funds held by company under reinsurance treaties (Schedule F, Part, Column 9) 48,909 47,09 4. Amounts withheld or retained by company for account of others 0 5. Remittances and items not allocated 4, Provision for reinsurance (including $ certified) (Schedule F, Part 8) Net adjustments in assets and liabilities due to foreign exchange rates 0 8. Drafts outstanding 0 9. Payable to parent, subsidiaries and affiliates 0 0. Derivatives 0 0. Payable for securities 6,48,748. Payable for securities lending 0. Liability for amounts held under uninsured plans 0 4. Capital notes $ and interest thereon $ 0 5. Aggregate write-ins for liabilities,667,6,46, Total liabilities excluding protected cell liabilities (Lines through 5) 8,049,884 6,097, Protected cell liabilities 0 8. Total liabilities (Lines 6 and 7) 8,049,884 6,097, Aggregate write-ins for special surplus funds Common capital stock,500,000,500,000. Preferred capital stock 0. Aggregate write-ins for other-than-special surplus funds 0 0. Surplus notes 0 4. Gross paid in and contributed surplus 4,500,000 4,500, Unassigned funds (surplus),0,8,70, Less treasury stock, at cost: 6. shares common (value included in Line 0 $ ) 0 6. shares preferred (value included in Line $ ) 0 7. Surplus as regards policyholders (Lines 9 to 5, less 6) (Page 4, Line 9) 45,0,8 46,70, Totals (Page, Line 8, Col. ) 8,07,0 08,467, DETAILS OF WRITE-INS 50. Deferred Ceding Commissions,474,07,, Refunds Payable 76,848 50, Payable to Citizens Property Insurance Corporation 6,08 854, Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above),667,6,46, Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 90 through 90 plus 998) (Line 9 above) Summary of remaining write-ins for Line from overflow page Totals (Lines 0 through 0 plus 98) (Line above) 0 0

4 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company STATEMENT OF INCOME Current Year Prior Year UNDERWRITING INCOME. Premiums earned (Part, Line 5, Column 4) 7,5 548,89 DEDUCTIONS:. Losses incurred (Part, Line 5, Column 7) 7,55,87 66,08. Loss adjustment expenses incurred (Part, Line 5, Column ) 57, ,45 4. Other underwriting expenses incurred (Part, Line 5, Column ) (4,888,058) (,45,98) 5. Aggregate write-ins for underwriting deductions Total underwriting deductions (Lines through 5),99,4 (,779,477) 7. Net income of protected cells 0 8. Net underwriting gain (loss) (Line minus Line 6 plus Line 7) (,6,7),7,766 INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line 7) 68,09,89 0. Net realized capital gains (losses) less capital gains tax of $ (Exhibit of Capital Gains (Losses)) (70). Net investment gain (loss) (Lines 9 + 0) 68,09,769 OTHER INCOME. Net gain (loss) from agents' or premium balances charged off (amount recovered $ amount charged off $ 7, ) (7,) (65,04). Finance and service charges not included in premiums 65,60 79, Aggregate write-ins for miscellaneous income (,658) (,56) 5. Total other income (Lines through 4) 70,88 0,7 6. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines ) (,987,50),54,76 7. Dividends to policyholders 0 8. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 6 minus Line 7) (,987,50),54,76 9. Federal and foreign income taxes incurred,098,6,04 0. Net income (Line 8 minus Line 9) (to Line ) (,988,68),47,79 CAPITAL AND SURPLUS ACCOUNT. Surplus as regards policyholders, December prior year (Page 4, Line 9, Column ) 46,70,074 44,09,704. Net income (from Line 0) (,988,68),47,79. Net transfers (to) from Protected Cell accounts 0 4. Change in net unrealized capital gains or (losses) less capital gains tax of $ 0 5. Change in net unrealized foreign exchange capital gain (loss) 0 6. Change in net deferred income tax 684,086 (7,4) 7. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 8, Col. ) (44,) (4,55) 8. Change in provision for reinsurance (Page, Line 6, Column minus Column ) Change in surplus notes 0 0. Surplus (contributed to) withdrawn from protected cells 0. Cumulative effect of changes in accounting principles 0. Capital changes:. Paid in 0. Transferred from surplus (Stock Dividend) 0. Transferred to surplus 0. Surplus adjustments:. Paid in 0. Transferred to capital (Stock Dividend) 0. Transferred from capital 0 4. Net remittances from or (to) Home Office 0 5. Dividends to stockholders 0 6. Change in treasury stock (Page, Lines 6. and 6., Column minus Column ) Aggregate write-ins for gains and losses in surplus Change in surplus as regards policyholders for the year (Lines through 7) (,48,856),40,7 9. Surplus as regards policyholders, December current year (Line plus Line 8) (Page, Line 7) 45,0,8 46,70,074 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 050 through 050 plus 0598) (Line 5 above) Other Income (Expense) (5,0) (,56) 40. Interest Income - FHCF, Summary of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) (,658) (,56) Summary of remaining write-ins for Line 7 from overflow page Totals (Lines 70 through 70 plus 798) (Line 7 above) 0 0 4

5 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company CASH FLOW Current Year Prior Year Cash from Operations. Premiums collected net of reinsurance 9,960,87 8,480,49. Net investment income 69,70,89. Miscellaneous income 70,88 0,7 4. Total (Lines through ) 0,00,97 8,696,6 5. Benefit and loss related payments 7,04,45 0,0 6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts Commissions, expenses paid and aggregate write-ins for deductions (,969,69) (,490,07) 8. Dividends paid to policyholders Federal and foreign income taxes paid (recovered) net of $ tax on capital gains (losses) 888,8,66,8 0. Total (Lines 5 through 9),96,58 (9,787). Net cash from operations (Line 4 minus Line 0) 6,9,74 9,68,0 Cash from Investments. Proceeds from investments sold, matured or repaid:. Bonds 0 0. Stocks 0 0. Mortgage loans Real estate Other invested assets Net gains or (losses) on cash, cash equivalents and short-term investments 0 (70).7 Miscellaneous proceeds 0 6,48,748.8 Total investment proceeds (Lines. to.7) 0 6,48,678. Cost of investments acquired (long-term only):. Bonds 7, Stocks 0 0. Mortgage loans Real estate Other invested assets,50, Miscellaneous applications 6,48, Total investments acquired (Lines. to.6) 9,86, Net increase (decrease) in contract loans and premium notes Net cash from investments (Line.8 minus Line.7 minus Line 4) (9,86,546) 6,48,678 Cash from Financing and Miscellaneous Sources 6. Cash provided (applied): 6. Surplus notes, capital notes Capital and paid in surplus, less treasury stock Borrowed funds Net deposits on deposit-type contracts and other insurance liabilities Dividends to stockholders Other cash provided (applied) (,475,88) (69,587) 7. Net cash from financing and miscellaneous sources (Lines 6. to 6.4 minus Line 6.5 plus Line 6.6) (,475,88) (69,587) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8. Net change in cash, cash equivalents and short-term investments (Line, plus Lines 5 and 7) (7,097,75) 55,9,94 9. Cash, cash equivalents and short-term investments: 9. Beginning of year 98,08,000 4,75, End of year (Line 8 plus Line 9.) 6,0,86 98,08,000 5

6 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston 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. 5 Part A 4 Premiums Earned During Year (Cols. + - ). Fire Allied lines 7, ,5. Farmowners multiple peril Homeowners multiple peril Commercial multiple peril Mortgage guaranty Ocean marine Inland marine Financial guaranty Medical professional liability-occurrence Medical professional liability-claims-made Earthquake Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation Other liability-occurrence Other liability-claims-made Excess workers compensation Products liability-occurrence Products liability-claims-made ,9. Private passenger auto liability ,9.4 Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty Reinsurance-nonproportional assumed property Reinsurance-nonproportional assumed liability Reinsurance-nonproportional assumed financial lines Aggregate write-ins for other lines of business TOTALS 7, ,5 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above)

7 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company Line of Business UNDERWRITING AND INVESTMENT EXHIBIT 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 4 Reserve for Rate Credits and Retrospective Adjustments Based on Experience 5 Total Reserve for Unearned Premiums Cols Fire 0. Allied lines 0. Farmowners multiple peril 0 4. Homeowners multiple peril 0 5. Commercial multiple peril 0 6. Mortgage guaranty 0 8. Ocean marine 0 9. Inland marine 0 0. Financial guaranty 0. Medical professional liability-occurrence 0. Medical professional liability-claims-made 0. Earthquake 0. Group accident and health 0 4. Credit accident and health (group and individual) 0 5. Other accident and health 0 6. Workers' compensation 0 7. Other liability-occurrence 0 7. Other liability-claims-made 0 7. Excess workers compensation 0 8. Products liability-occurrence 0 8. Products liability-claims-made 0 9.,9.Private passenger auto liability 0 9.,9.4Commercial auto liability 0. Auto physical damage 0. Aircraft (all perils) 0. Fidelity 0 4. Surety 0 6. Burglary and theft 0 7. Boiler and machinery 0 8. Credit 0 9. International 0 0. Warranty 0. Reinsurance-nonproportional assumed property 0. Reinsurance-nonproportional assumed liability 0. Reinsurance-nonproportional assumed financial lines 0 4. Aggregate write-ins for other lines of business TOTALS Accrued retrospective premiums based on experience 7. Earned but unbilled premiums 8. Balance (Sum of Lines 5 through 7) 0 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) (a) State here basis of computation used in each case. 7

8 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART B - PREMIUMS WRITTEN Line of Business Reinsurance Assumed Reinsurance Ceded From From To To Affiliates Non-Affiliates Affiliates Non-Affiliates Direct Business (a) Net Premiums Written Cols Fire 0. Allied lines 88,459,44,6,980 99,908,099 7,5. Farmowners multiple peril 0 4. Homeowners multiple peril 0 5. Commercial multiple peril 0 6. Mortgage guaranty 0 8. Ocean marine 0 9. Inland marine 0 0. Financial guaranty 0. Medical professional liability-occurrence 0. Medical professional liability-claims-made 0. Earthquake 0. Group accident and health 0 4. Credit accident and health (group and individual) 0 5. Other accident and health 0 6. Workers' compensation 0 7. Other liability-occurrence 0 7. Other liability-claims-made 0 7. Excess workers compensation 0 8. Products liability-occurrence 0 8. Products liability-claimsmade 0 9.,9. Private passenger auto liability 0 9.,9.4 Commercial auto liability 0. Auto physical damage 0. Aircraft (all perils) 0. Fidelity 0 4. Surety 0 6. Burglary and theft 0 7. Boiler and machinery 0 8. Credit 0 9. International 0 0. Warranty 0. Reinsurancenonproportional assumed property XXX 0. Reinsurancenonproportional assumed liability XXX 0. Reinsurancenonproportional assumed financial lines XXX 0 4. Aggregate write-ins for other lines of business TOTALS 88,459,44 0,6, ,908,099 7,5 DETAILS OF WRITE-INS Sum. of remaining writeins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 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 recorded on an annualized basis $ 8

9 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company 9 UNDERWRITING AND INVESTMENT EXHIBIT PART - LOSSES PAID AND INCURRED Losses Paid Less Salvage Net Losses Unpaid Net Losses Losses Incurred Reinsurance Net Payments Current Year Unpaid Current Year Recovered (Cols. + - ) (Part A, Col. 8) Prior Year (Cols ) Percentage of Losses Incurred (Col. 7, Part ) to Premiums Earned (Col. 4, Part ) Reinsurance Line of Business Direct Business Assumed. Fire Allied lines 9,70,850 6,607,0,840 6,94,67 54,479 0,59 7,55,87,07.5. Farmowners multiple peril Homeowners multiple peril Commercial multiple peril Mortgage guaranty Ocean marine Inland marine Financial guaranty Medical professional liability-occurrence Medical professional liability-claims-made Earthquake Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation Other liability-occurrence Other liability-claims-made Excess workers compensation Products liability-occurrence Products liability-claims-made ,9. Private passenger auto liability ,9.4 Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty 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 9,70,850 6,607,0,840 6,94,67 54,479 0,59 7,55,87,07.5 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through ) (Line 4 above)

10 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported Net Losses Excl. Incurred But Not Reported (Cols. + - ) Net Losses Unpaid (Cols ) Net Unpaid Loss Adjustment Expenses Reinsurance Deduct Reinsurance Reinsurance Reinsurance Line of Business Direct Assumed Recoverable Direct Assumed Ceded. Fire 0 0. Allied lines 4,89,95,49 4,66,767 5,587 0,669,8 58,49 0,564,646 54, ,446. Farmowners multiple peril Homeowners multiple peril Commercial multiple peril Mortgage guaranty Ocean marine Inland marine Financial guaranty 0 0. Medical professional liability-occurrence 0 0. Medical professional liability-claims-made 0 0. Earthquake 0 0. Group accident and health 0 (a) 0 4. Credit accident and health (group and individual) Other accident and health 0 (a) 0 6. Workers' compensation Other liability-occurrence Other liability-claims-made Excess workers compensation Products liability-occurrence Products liability-claims-made ,9. Private passenger auto liability ,9.4 Commercial auto liability 0 0. Auto physical damage 0 0. Aircraft (all perils) 0 0. Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty 0 0. Reinsurance-nonproportional assumed property XXX 0 XXX 0. Reinsurance-nonproportional assumed liability XXX 0 XXX 0. Reinsurance-nonproportional assumed financial lines XXX 0 XXX 0 4. Aggregate write-ins for other lines of business TOTALS 4,89,95,49 4,66,767 5,587 0,669,8 58,49 0,564,646 54, ,446 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through ) (Line 4 above) (a) Including $ for present value of life indemnity claims.

11 . Claim adjustment services: ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART - EXPENSES Loss Adjustment Expenses Other Underwriting Expenses Investment Expenses. Direct 4,5,57 4,5,57. Reinsurance assumed 9,56 9,56. Reinsurance ceded 4,070,470 4,070,470.4 Net claim adjustment services ( ) 57, ,564. Commission and brokerage:. Direct, excluding contingent 0. Reinsurance assumed, excluding contingent,004,45,004,45. Reinsurance ceded, excluding contingent,97,50,97,50.4 Contingent-direct 0.5 Contingent-reinsurance assumed 0.6 Contingent-reinsurance ceded 0.7 Policy and membership fees 7,5 7,5.8 Net commission and brokerage ( ) 0 (9,55,574) 0 (9,55,574). Allowances to manager and agents,4,556,4, Advertising 0 5. Boards, bureaus and associations 8,0 8,0 6. Surveys and underwriting reports 0 7. Audit of assureds' records 0 8. Salary and related items: 8. Salaries 0 8. Payroll taxes 0 9. Employee relations and welfare 0 0. Insurance 0. Directors' fees 0. Travel and travel items 0. Rent and rent items 0 4. Equipment 0 5. Cost or depreciation of EDP equipment and software 0 6. Printing and stationery 0 7. Postage, telephone and telegraph, exchange and express 0 8. Legal and auditing 477,0 477,0 9. Totals (Lines to 8) 0,897,890 0,897, Taxes, licenses and fees: 0. State and local insurance taxes deducting guaranty association credits of $ 08,57 08,57 0. Insurance department licenses and fees 89,0 89,0 0. Gross guaranty association assessments All other (excluding federal and foreign income and real estate) (,67) (,67) 0.5 Total taxes, licenses and fees ( ) 0 96,6 0 96,6. Real estate expenses 0. Real estate taxes 0. Reimbursements by uninsured plans 0 4. Aggregate write-ins for miscellaneous expenses 0 7,65 0 7,65 5. Total expenses incurred 57,564 (4,888,058) 0 (a) (4,6,495) 6. Less unpaid expenses-current year 609,446,840 6,86 7. Add unpaid expenses-prior year 54,57 606, ,6 8. Amounts receivable relating to uninsured plans, prior year Amounts receivable relating to uninsured plans, current year 0 0. TOTAL EXPENSES PAID (Lines ) 6,75 (4,85,444) 0 (,969,69) DETAILS OF WRITE-INS 40. Miscellaneous Expenses Consulting/Professional Fees 48,4 48,4 40. Dues and Subscriptions 4,60 4, Summary of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) 0 7,65 0 7,65 (a) Includes management fees of $,4,556 to affiliates and $ to non-affiliates. 4 Total

12 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company EXHIBIT OF NET INVESTMENT INCOME Collected During Year Earned During Year. U.S. Government bonds (a) Bonds exempt from U.S. tax (a). Other bonds (unaffiliated) (a). Bonds of affiliates (a) 0. Preferred stocks (unaffiliated) (b) 0. Preferred stocks of affiliates (b) 0. Common stocks (unaffiliated) 0. Common stocks of affiliates 0. Mortgage loans (c) 4. Real estate (d) 5. Contract loans 6. Cash, cash equivalents and short-term investments (e) 67,85 67,85 7. Derivative instruments (f) 8. Other invested assets 9. Aggregate write-ins for investment income Total gross investment income 68,06 68,09. Investment expenses (g). Investment taxes, licenses and fees, excluding federal income taxes (g). Interest expense (h) 4. Depreciation on real estate and other invested assets (i) 5. Aggregate write-ins for deductions from investment income 0 6. Total deductions (Lines through 5) 0 7. Net investment income (Line 0 minus Line 6) 68,09 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 090 through 090 plus 0998) (Line 9 above) Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above) 0 (a) Includes $ accrual of discount less $,695 amortization of premium and less $,578 paid for accrued interest on purchases. (b) Includes $ accrual of discount less $ amortization of premium and less $ 0 paid for accrued dividends on purchases. (c) Includes $ 0 accrual of discount less $ 0 amortization of premium and less $ paid for accrued interest on purchases. (d) Includes $ for company s occupancy of its own buildings; and excludes $ interest on encumbrances. (e) Includes $ accrual of discount less $ 9,8 amortization of premium and less $ 6, paid for accrued interest on purchases. (f) Includes $ accrual of discount less $ amortization of premium. (g) Includes $ investment expenses and $ investment taxes, licenses and fees, excluding federal income taxes, attributable to segregated and Separate Accounts. (h) Includes $ interest on surplus notes and $ interest on capital notes. (i) Includes $ depreciation on real estate and $ depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) Realized Gain (Loss) On Sales or Maturity Other Realized Adjustments Total Realized Capital Gain (Loss) (Columns + ) 4 Change in Unrealized Capital Gain (Loss) 5 Change in Unrealized Foreign Exchange Capital Gain (Loss). U.S. Government bonds 0. Bonds exempt from U.S. tax 0. Other bonds (unaffiliated) 0. Bonds of affiliates Preferred stocks (unaffiliated) Preferred stocks of affiliates Common stocks (unaffiliated) Common stocks of affiliates Mortgage loans Real estate Contract loans 0 6. Cash, cash equivalents and short-term investments Derivative instruments 0 8. Other invested assets Aggregate write-ins for capital gains (losses) Total capital gains (losses) DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 090 through 090 plus 0998) (Line 9 above)

13 ANNUAL STATEMENT FOR THE YEAR 06 OF THE Weston Insurance Company EXHIBIT OF NONADMITTED ASSETS Current Year Total Nonadmitted Assets Prior Year Total Nonadmitted Assets Change in Total Nonadmitted Assets (Col. - Col. ). Bonds (Schedule D) Stocks (Schedule D):. Preferred stocks Common stocks Mortgage loans on real estate (Schedule B):. First liens Other than first liens Real estate (Schedule A): 4. Properties occupied by the company Properties held for the production of income Properties held for sale Cash (Schedule E-Part ), cash equivalents (Schedule E-Part ) and short-term investments (Schedule DA) Contract loans Derivatives (Schedule DB) Other invested assets (Schedule BA) Receivables for securities Securities lending reinvested collateral assets (Schedule DL) Aggregate write-ins for invested assets Subtotals, cash and invested assets (Lines to ) Title plants (for Title insurers only) Investment income due and accrued Premiums and considerations: 5. Uncollected premiums and agents balances in the course of collection 84,84 40,50 (44,) 5. Deferred premiums, agents balances and installments booked but deferred and not yet due Accrued retrospective premiums and contracts subject to redetermination Reinsurance: 6. Amounts recoverable from reinsurers Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon Net deferred tax asset Guaranty funds receivable or on deposit Electronic data processing equipment and software Furniture and equipment, including health care delivery assets Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates Health care and other amounts receivable Aggregate write-ins for other-than-invested assets Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines to 5) 84,84 40,50 (44,) 7. From Separate Accounts, Segregated Accounts and Protected Cell Accounts Total (Lines 6 and 7) 84,84 40,50 (44,) DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page Totals (Lines 0 through 0 plus 98) (Line above) Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above) 0 0 0

14 STATEMENT AS OF DECEMBER, 06 OF THE WESTON INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS. Summary of Significant Accounting Policies and Going Concern A. Accounting Practices, Impact of NAIC/ State Differences The financial statements of Weston Insurance Company are presented on a basis of accounting practices prescribed or permitted by the Florida Office of Insurance Regulation. The Florida Office of Insurance Regulation recognizes only statutory accounting practices prescribed by or permitted by the State of Florida for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under the Florida Insurance Law. The National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures Manual, version effective January, 00, (NAIC SAP) has been adopted as a component of prescribed or permitted practices by the State of Florida. A reconciliation of the Company s net income and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of Florida is shown below: Description State //06 //05 () Net Income, State Basis (Page 4, Line 0, Columns & ) FL (,988,68),47,79 () State Prescribed Practices FL - - () State Permitted Practices FL - - (4) Net Income, NAIC SAP (--=4) FL (,988,68),47,79 Description State //06 //05 (5) Policyholiders' surplus, state basis (Page, Line 7, Columns & ) FL 45,0,8 46,70,074 (6) State Prescribed Practices FL - - (7) State Permitted Practices FL - - (8) Policyholders' surplus, NAIC SAP (5-6-7=8) FL 45,0,8 46,70,074 B. Use of Estimates in the Preparation of the Financial Statements The preparation of financial statements in conformity with Statutory Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. C. Accounting Policies Premiums are earned over the terms of the related insurance policies and reinsurance contracts. Unearned premium reserves are established to cover the unexpired portion of premiums written. Such reserves are computed by pro rata methods for direct business. 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: () Basis of valuation of short term investments stated at amortized value using the effective interest method. () Basis of valuation of bonds Bonds not backed by other loans are stated at amortized cost using the interest method. () Basis of valuation of common stock Not applicable (4) Basis of valuation of preferred stock Not applicable (5) Basis of valuation of mortgage loans Not applicable (6) Basis of valuation of loan-backed securities Not applicable 4

15 STATEMENT AS OF DECEMBER, 06 OF THE WESTON INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (7) Basis of valuation of subsidiary, controlled and affiliated Not applicable (8) Basis of valuation of joint ventures, partnerships, LLCs Not applicable (9) Basis of valuation of derivatives Not applicable (0) Premium deficiency reserve Not applicable () Method of establishing loss and LAE reserves Unpaid losses and loss adjustment expenses include an amount determined from individual case estimates and loss reports and an amount, based on past experience, for losses incurred but not reported. Such liabilities are necessarily based on assumptions and estimates and while management believes the amount is adequate, the ultimate liability may be in excess of or less than the amount provided. In spite of the variability inherent in such estimates, management believes that the liabilities for unpaid losses and loss adjustment expenses are adequate. The methods, for making such estimates and for establishing the resulting liability, are continually reflected in the period determined. Subrogation and salvage recoveries are recorded, reviewed, and any adjustments are shown as reductions in losses and loss adjustment expenses when received. () Change in capitalization policy The Company has not modified its capitalization policy from the prior period. () Pharmaceutical rebate receivables Not applicable D. Going Concern Not applicable. Accounting Changes and Corrections of Errors Not applicable. Business Combinations and Goodwill A. Statutory purchase method Not applicable B. Statutory mergers Not applicable C. Write-downs for impairment of investments in affiliates Not applicable 4. Discontinued Operations A. Discontinued operation disposed of or classified as held for sale Not applicable B. Change in plan of sale of discontinued operation - Not Applicable C. Nature of any significant continuing involvement with discontinued operations after disposal Not applicable D. Equity interest retained in the discontinued operation after disposal Not applicable 5. Investments A. Mortgage loans, including Mezzanine real estate loans Not applicable B. Debt restructuring Not applicable C. Reverse mortgages Not applicable D. Loan-backed Securities Not applicable E. Repurchase agreements and/or securities lending transactions Not applicable F. Real estate Not applicable 4.

16 STATEMENT AS OF DECEMBER, 06 OF THE WESTON INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS G. Low income housing tax credits Not applicable H. Restricted assets Gross Restricted Percentage Current Year Total General Account (G/A) G/A Supporting Protected Cell Account Activity (a) Total Protected Cell Amount Restricted Assets Protected Cell Acount Assets Supporting (G/A) Total ( Activity (b) plus ) Total Increase/( From Prior Decrease) Year (5 minus 6) Total Nonadmit ted Restricte d Total Admitted Gross Restricted (5 minus 8) Restricted to Total Assets '(c) Admitted Restricted to Total Admitted Assets (d) Restricted Asset Category a. Subject to contractual obligation for which liability is not shown b. Collateral held under security 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. Placed under option contracts h. Letter stock or securities restricted as to sale - excluding FHLB capital stock i. FHLB capital stock j. On deposit with states 44, ,00,048,05-44, % 0.54% k. On deposit with other regulatory bodies l. Pledged as collateral to FHLB (including assets backing funding agreements) m. Pledged as collateral not captured in other categories n. Other restricted assets o. Total restricted assets 44, ,00,048,05 44, % 0.54% I. Working capital finance investments Not applicable J. Offsetting and netting of assets and liabilities Not applicable K. Structured notes Not applicable L. 5* securities Not applicable 6. Joint Ventures, Partnerships and Limited Liability Companies A. Detail for those greater than 0% of admitted assets - Not applicable B. Write-downs for impairments of joint ventures, partnerships, LLCs - Not applicable 4.

17 STATEMENT AS OF DECEMBER, 06 OF THE WESTON INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 7. Investment Income A. Accrued investment income i. The Company non-admits investment income due and accrued if amounts are over 90 days past due. B. Amounts non-admitted $0 8. Derivative Instruments Not applicable 4.

18 STATEMENT AS OF DECEMBER, 06 OF THE WESTON INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 9. Income Taxes A. The components of the net deferred tax asset/(liability) are as follow s: () DTA/DTL Components Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total (a) Gross deferred tax assets 85, ,68 65,74-65,74 687, ,45 (b) Statutory valuation allowance (c) Adjusted gross deferred tax assets 85, ,68 65,74-65,74 687, ,45 (d) Gross deferred tax liabilities (,9) - (,9) (,9) - (,9) (e) Net deferred tax asset/(liability) before non-admitted 849, ,89 65,74-65,74 684, ,086 (f) Non-admitted deferred tax assets (g) Net deferred tax asset/(liability) 849, ,89 65,74-65,74 684, ,086 () Admission Calculation Components under SSAP No. 0 Admission calculation under.a. -.c Change Change Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total (a) Admitted Pursuant to.a (b) Admitted Pursuant to.b. (lesser of.b.i. or.b.ii.) 85,68-85,68 65,74-65,74 687,45-687,45 (c).b.i 85,68 85,68 65,74 65,74 687,45 N/A N/A N/A N/A (d).b.ii N/A 6,65,559 N/A 6,90,650 N/A N/A (05,09) N/A N/A (e) Admitted Pursuant to.c (f) Total admitted under.a. -.c. 85,68-85,68 65,74-65,74 687,45-687,45 (g) Deferred tax liabilities (,9) - (,9) (,9) - (,9) Net admitted deferred tax asset/liability 849,89-849,89 65,74-65,74 684, ,086 () Other Admissibility Criteria (a) Ratio percentage used to determine recovery period and threshold limitation amount 49% 84% (b) Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in (b) above 44,70,90 46,04, Change () Threshold used in.b. Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total (a) ExDTA ACL RBC ratio N/A N/A 49% N/A N/A 84% N/A N/A N/A (b) ExDTA Surplus / Policyholders and Contingency Reserves Ratio N/A N/A N/A N/A N/A N/A N/A N/A N/A (c) Adjusted Gross DTA / Adjusted Capital and Surplus Ratio N/A N/A N/A N/A N/A N/A N/A N/A N/A (d) Amount of Adjusted Capital and Surplus used to determine recovery period and threshold above N/A N/A 44,70,90 N/A N/A 46,04, N/A N/A (,0,94) (4) Impact of tax planning strategies on adjusted gross DTAs and net admitted DTAs Change Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total 85,44 85,44 65,74 65,74 687,40 687,40 Adjusted gross DTAs - Amount (a) Adjusted gross DTAs - Percentage 0% 0% 0% 0% 0% 0% 0% 0% 0% Net admitted DTAs - Amount 85,68 85,68 65,74 65,74 687,45 687, (b) Net admitted DTAs - Percentage 0% 0% 0% 0% 0% 0% 0% 0% 0% (c) Has the entity entered into tax planning strategies involving reinsurance? No No Temporary differences for w hich deferred tax liabilities established B. have not been C. Current tax and change in deferred tax: () Current income taxes incurred consist of the follow ing major components: 06 05,9,5 (a) Current federal income tax expense - (b) Foreign taxes (c) Subtotal -,9,5 (d) Tax on capital gains/(losses) (e) Utilization of capital loss carryforw ards (f) Other, including prior year under accrual/(over accrual),098 (,499) (g) Federal and foreign income taxes incurred,098,6,04 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follow s: //6 //5 Change () Deferred Tax Assets: (a) Ordinary () Loss reserve discounting 7,64,77,87 () Unearned premium reserves 09,4 48,95 (8,78) () Non-deductible accruals (4) Net operating loss carryforw ards 707,4-707,4 (5) Non-admitted assets 8,847,777 5,070 (6) AMT credit carryforw ards (7) Start-up & Organizational Costs (8) Other (required to disclose items > 5%) Gross Ordinary Deferred Tax Assets 85,44 65,74 687,40 (b) Statutory Valuation Allow ance - Ordinary (c) Nonadmitted Deferred Tax Assets - Ordinary (d) Admitted Deferred Tax Assets - Ordinary 85,44 65,74 687,40 (e) Capital () Investments - () Capital Loss Carryforw ards 4-4 () Other (required to disclose items > 5%) - (4) Tax effect of unrealized capital losses - Gross Capital Deferred Tax Assets 4-4 (f) Statutory Valuation Allowance - Capital - (g) Nonadmitted Deferred Tax Assets - Capital (h) Admitted Deferred Tax Assets - Capital 4-4 (i) Total Admitted Deferred Tax Assets 85,68 65,74 687,45 () Deferred Tax Liabilities: (a) Ordinary () Deferred and uncollected premiums - () Depreciation () Accretion of bond discount (4) Other (required to disclose items > 5%) (,9) - (,9) Ordinary Deferred Tax Liabilities (,9) - (,9) (b) Capital () Investments - () Other (required to disclose items > 5%) - () Tax effect of unrealized capital gains - Capital Deferred Tax Liabilities (c) Total Deferred Tax Liabilities (,9) - (,9) (4) Net deferred tax assets/liabilities 849,89 65,74 684,086 The change in net deferred income taxes is composed of the follow ing (this analysis is exclusive of nonadmitted DTAs as the Change in Nonadmitted Assets is reported separately from the Change in Net Deferred Income Taxes in the surplus section of the Annual Statement): //6 //5 Change Total deferred tax assets 85,68 65,74 687,45 Total deferred tax liabilities (,9) - (,9) Net deferred tax assets/liabilities 849,89 65,74 684,086 Statutory valuation allow ance Net deferred tax assets/liabilities after valuation allowance 849,89 65,74 684,086 Tax effect of unrealized gains/(losses) Statutory valuation allow ance on unrealized - Change in net deferred income tax [(expense)/benefit] 849,89 65,74 684,086 Reconciliation of Federal Income Tax Rate to Actual Effective D. Rate The provision for federal income taxes incurred is different from that w hich w ould be obtained by applying the statutory federal income tax rate to pre-tax income. The significant items causing this difference are as follow s: Amount Tax Effect Effective Tax Rate (,987,50) (675,757) 4.00% Income before taxes Change in non-admitted assets (44,) (5,070) 0.76% Other, including prior year true-up,056 7,89-0.9% Total statutory income tax (,976,66) (68,988) 4.6% Federal income taxes incurred, % Change in net deferred income tax [expense/(benefit)] (684,086) 4.4% Total statutory income tax (68,988) 4.6% Carryforw ards, recoverable taxes, and IRC 660 deposits E. December, 06 December, 05 The Company had net operating losses of:,080,6 - The net operating losses carryforw ards begin to expire in 04. The follow ing represents income tax expense for 0, 04 and 05 that is available for recoupment in the event of future net losses: Year Ordinary Capital Total ,695-6,695 05,6,04 -,6,04 06,098 -,098 The Company did not have any protective tax deposits under Section 660 of the Internal Revenue Code. The Company's federal income tax return is consolidated w ith the follow ing entity F. Weston Insurance Holding Corporation The method of allocation is subject to written agreement, approved by the Board of Directors. Allocation is based upon separate return calculations with a credit for current losses pursuant to the terms of the tax sharing agreement. 4.4

19 STATEMENT AS OF DECEMBER, 06 OF THE WESTON INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 0. Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties A. Nature of relationships All outstanding shares of the Company are owned by Weston Insurance Holdings Corporation (WIHC), a Florida Holding Company. B. Detail of transaction greater than 0.5% of admitted assets The Company has entered into a loan agreement with Weston Insurance Management in the amount of (USD,50,000).The Facility may be partially or fully repaid at any time by Weston Insurance Management (the Borrower) upon mutual written agreement between the Borrower and the Company but at a minimum in compliance with applicable amortization requirements for admissibility of any outstanding balance by the Company as an asset pursuant to Chapter 65, Florida Statutes. The Facility will be automatically terminated on December 0, 0 (the Termination Date ) unless otherwise agreed in writing between the Borrower and the Company. All capital amounts outstanding under the Facility will be due and payable to the Company on the Termination Date. C. Change in terms of intercompany arrangements Effective October, 06 the Company and Weston Insurance Management, LLC. (WIM) agreed to amend the Managing General Agency and Claims Administration Agreement to increase the commission paid by.5% and to allow for a commission to WIM on the business assumed from the Texas Windstorm Insurance Association. The Florida Office of Insurance Regulation approved the amendment on December,06. D. Amounts due to or from related parties The Company has a receivable of $,778,9 from WIM and none of the balance is over 90 days old. E. Guarantees or undertakings for related parties Not applicable F. Management, service contracts, cost sharing arrangements WIM, an affiliate of the Company, is the exclusive management general agent for the Company. Under the Managing General Agency (MGA) Agreement with WIM, the Company pays commission to the MGA for expenses the Company incurs that are charged to underwriting, acquisition and other expenses for operations management, and loss adjustment expenses for claims administration and adjusting. An expense of $4,5,68 and $8,97,89 was recorded for the years ending December, 06 and 05, respectively, per the terms of the MGA agreement. G. Nature of relationships that could affect operations Not applicable H. Amount deducted for investment in upstream company Not applicable I. Detail of investments in affiliates greater than 0% of admitted assets Not applicable J. Write-down for impairments of investments in affiliates Not applicable K. Foreign insurance subsidiary valued using CARVM Not applicable L. Downstream holding valued using look-through method Not applicable M. SCA Investments- Not applicable N. Departures from NAIC accounting for SCA Investments Not applicable. Debt A. Amount, interest, maturities, collateral, covenants Not applicable B. Funding agreements with Federal Home Loan Bank (FHLB) Not applicable 4.5