ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2016 OF THE CONDITION AND AFFAIRS OF THE. Wesco Insurance Company

Transcription

1 PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER, 06 OF THE CONDITION AND AFFAIRS OF THE Wesco Insurance Company * * NAIC Group Code NAIC Company Code 50 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 //96 Commenced Business 05/9/96 Statutory Home Office Centerville Road, Suite 00, Wilmington, DE, US 9808 (Street Number) (City or Town, State, Country Zip Code) Main Administrative Office 59 Maiden Lane, rd Floor (Street Number) New York, NY, US 008, -0-0 (City or Town, State, Country Zip Code) (Area Code) (Telephone Number) Mail Address 59 Maiden Lane, rd Floor, New York, NY, US 008 (Street Number or P.O. Box) (City or Town, State, Country Zip Code) Primary Location of Books Records 59 Maiden Lane, rd Floor (Street Number) New York, NY, US 008, -0-0 (City or Town, State, Country Zip Code) (Area Code) (Telephone Number) Internet Website Address Statutory Statement Contact Mark Braccia, -0-0 (Name) (Area Code) (Telephone Number) mark.braccia@amtrustgroup.com, -0-0 ( Address) (FAX Number) OFFICERS President Jeffrey Paul Leo Treasurer Harry Schlachter Secretary Stephen Barry Ungar Barry Wolff Moses, Vice President, Regulatory & Compliance Assistant Secretary OTHER Kerry James Heitz #, Executive Vice President & Chief Financial Officer Jeffrey Howard Mayer, Chief Actuary DIRECTORS OR TRUSTEES Donald Thomas DeCarlo Harry Schlachter Stephen Barry Ungar 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, th day of February. State the amendment number. Date filed. Number of pages attached

2 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY ASSETS Assets Current Year Nonadmitted Assets Net Admitted Assets (Cols. - ) Prior Year Net Admitted Assets. Bonds (Schedule D) 86,,05 86,,05 56,800,99. Stocks (Schedule D):. Preferred stocks 9,50,000. Common stocks 68,6,6 68,6,6 5,90,509. 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) 5. Cash ($,05,6, Schedule E - Part ), cash equivalents ($, Schedule E - Part ) short-term investments ($,5,8, Schedule DA) 5,5,0 5,5,0 6,,0 6. Contract loans (including $ premium notes). Derivatives (Schedule DB) 8. Other invested assets (Schedule BA) 0,85,055 0,85,055,98,88 9. Receivable for securities,00,,00, 0. Securities lending reinvested collateral assets (Schedule DL). Aggregate write-ins for invested assets. Subtotals, cash invested assets (Lines to ),0,89,,0,89, 89,6,6. Title plants less $ charged off (for Title insurers only). Investment income due accrued 6,9,66 6,9,66,00,8 5. Premiums considerations: 5. Uncollected premiums agents' balances in the course of collection 9,008,8,0,6 6,98,60 5,0, Deferred premiums agents' balances installments booked but deferred not yet due (including $,505,6 earned but unbilled premiums) 5,699,6 5,699,6 50,6,8 5. Accrued retrospective premiums ($ ) 6. Reinsurance: contracts subject to redetermination ($ ) 6. Amounts recoverable from reinsurers 59,56, 59,56, 50,, 6. Funds held by or deposited with reinsured companies,96,,96, (,6) 6. Other amounts receivable under reinsurance contracts. Amounts receivable relating to uninsured plans 8. Current federal foreign income tax recoverable interest thereon,95,09,95,09 8. Net deferred tax asset 5,06, 9,50 5,,6,06,5 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 5. Aggregate write-ins for other than invested assets 56,0,9 56,0,9 9,868, Total assets excluding Separate Accounts, Segregated Accounts Protected Cell Accounts (Lines to 5),9,65,,955,56,90,659,688,,,58. From Separate Accounts, Segregated Accounts Protected Cell Accounts 8. Total (Lines 6 ),9,65,,955,56,90,659,688,,, 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) 50. Claims funding deposit 5,688, 5,688, 6,5,0 50. Federal excise tax recoverable,9,8,9,8,580,0 50. Other receivables 0,0 0,0 6, Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 50 thru 50 plus 598)(Line 5 above) 56,0,9 56,0,9 9,868,959

3 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY LIABILITIES, SURPLUS AND OTHER FUNDS Current Year Prior Year. Losses (Part A, Line 5, Column 8) 8,, 5,8,98. Reinsurance payable on paid losses loss adjustment expenses (Schedule F, Part, Column 6) 0,8,88 9,55,. Loss adjustment expenses (Part A, Line 5, Column 9) 9,8,00 9,95,65. Commissions payable, contingent commissions other similar charges 6,056,0 0,89, Other expenses (excluding taxes, licenses fees),08,89,,6 6. Taxes, licenses fees (excluding federal foreign income taxes),8,65 0,5,. Current federal foreign income taxes (including $ on realized capital gains (losses)),895,00. Net deferred tax liability 8. Borrowed money $ interest thereon $ 9. Unearned premiums (Part A, Line 8, Column 5) (after deducting unearned premiums for ceded reinsurance of $,69,5,85 including warranty reserves of $ 985,66,658 accrued accident health experience rating refunds including $ for medical loss ratio rebate per the Public Health Service Act) 65,6,9 8,8,55 0. Advance premium 6,89,055,55,. Dividends declared unpaid:. Stockholders. Policyholders. reinsurance premiums payable (net of ceding commissions) 50,5,00 86,86,0. Funds held by company under reinsurance treaties (Schedule F, Part, Column 9) 585,06,5 6,95,5. Amounts withheld or retained by company for account of others 68,000 68, Remittances items not allocated 6. Provision for reinsurance (including $ 65,000 certified) (Schedule F, Part 8),868,000,6,800. Net adjustments in assets liabilities due to foreign exchange rates 8. Drafts outsting 9. Payable to parent, subsidiaries affiliates,5,65,96,09 0. Derivatives. Payable for securities 0,8,0. Payable for securities lending. Liability for amounts held under uninsured plans. Capital notes $ interest thereon $ 5. Aggregate write-ins for liabilities 9,99,58,89,00 6. Total liabilities excluding protected cell liabilities (Lines through 5),50,5,899,09,86,850. Protected cell liabilities 8. Total liabilities (Lines 6 ),50,5,899,09,86, Aggregate write-ins for special surplus funds 0. Common capital stock 5,000,000 5,000,000. Preferred capital stock. Aggregate write-ins for other than special surplus funds. Surplus notes. Gross paid in contributed surplus 5,6,66,6,66 5. Unassigned funds (surplus),,5 0,5,68 6. Less treasury stock, at cost: 6. shares common (value included in Line 0 $ ) 6. shares preferred (value included in Line $ ). Surplus as regards policyholders (Lines 9 to 5, less 6) (Page, Line 9) 6,506,89,55, 8. TOTALS (Page, Line 8, Col. ),90,659,688,,,58 DETAILS OF WRITE-INS 50. Surcharge Payable 8,89,99,98, Premium audits cancel due,55,00,6,0 50. Other liability 8,,, Summary of remaining write-ins for Line 5 from overflow page 599. Totals (Lines 50 thru 50 plus 598)(Line 5 above) 9,99,58,89, 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 WESCO INSURANCE COMPANY STATEMENT OF INCOME Current Year UNDERWRITING INCOME Prior Year. Premiums earned (Part, Line 5, Column ) 59,695,06 95,, DEDUCTIONS:. Losses incurred (Part, Line 5, Column ) 9,6,888,0,9. Loss adjustment expenses incurred (Part, Line 5, Column ),05,9 8,,099. Other underwriting expenses incurred (Part, Line 5, Column ) 8,859,8,0,9 5. Aggregate write-ins for underwriting deductions 6. Total underwriting deductions (Lines through 5) 56,9,0 6,8,5. Net income of protected cells 8. Net underwriting gain or (loss) (Line minus Line 6 plus Line ) (6,50,9),985,8 INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line ),80,8,8,8 0. Net realized capital gains or (losses) less capital gains tax of $ (Exhibit of Capital Gains (Losses) ),86,99,,00. Net investment gain (loss) (Lines 9 + 0) 6,56,,09,9 OTHER INCOME. Net gain (loss) from agents or premium balances charged off (amount recovered $ amount charged off $ ). Finance service charges not included in premiums. Aggregate write-ins for miscellaneous income 5. Total other income (Lines through ) 6. Net income before dividends to policyholders, after capital gains tax before all other federal foreign income taxes (Lines ) 0,065,,05,0. Dividends to policyholders,9,80 50, 8. Net income, after dividends to policyholders, after capital gains tax before all other federal foreign income taxes (Line 6 minus Line ) 8,80, 6,5, Federal foreign income taxes incurred,9,9,9,55 0. Net income (Line 8 minus Line 9)(to Line ) 5,95,6,095,6 CAPITAL AND SURPLUS ACCOUNT. Surplus as regards policyholders, December prior year (Page, Line 9, Column ),55, 5,50,08. Net income (from Line 0) 5,95,6,095,6. Net transfers (to) from Protected Cell accounts. Change in net unrealized capital gains or (losses) less capital gains tax of $ 59,86,658,60 5. Change in net unrealized foreign exchange capital gain (loss) 6. Change in net deferred income tax 9,,5 9,,. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 8, Col. ) (,95,80) (0,,56) 8. Change in provision for reinsurance (Page, Line 6, Column minus Column ) (6,00) (,800) 9. Change in surplus notes 0. Surplus (contributed to) withdrawn from protected cells. Cumulative effect of changes in accounting principles,5,59. Capital changes:. Paid in. Transferred from surplus (Stock Dividend). Transferred to surplus. Surplus adjustments:. Paid in,000,000 9,8,85. Transferred to capital (Stock Dividend). Transferred from capital. Net remittances from or (to) Home Office 5. Dividends to stockholders 6. Change in treasury stock (Page, Lines 6. 6., Column minus Column ). Aggregate write-ins for gains losses in surplus 8. Change in surplus as regards policyholders for the year (Lines through ) 9,99,055,985, Surplus as regards policyholders, December current year (Line plus Line 8) (Page, Line ) 6,506,89,55, DETAILS OF WRITE-INS Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 050 thru 050 plus 0598)(Line 5 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 from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above)

5 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY CASH FLOW Current Year Prior Year Cash from Operations. Premiums collected net of reinsurance 600,899,05,,66. Net investment income,08,6,89,69. Miscellaneous income. Total (Lines through ) 6,9, 5,6,80 5. Benefit loss related payments 95,9,605 98,689,06 6. Net transfers to Separate Accounts, Segregated Accounts Protected Cell Accounts. Commissions, expenses paid aggregate write-ins for deductions 8,0,588,,65 8. Dividends paid to policyholders,9,80 50, 9. Federal foreign income taxes paid (recovered) net of $ tax on capital gains (losses) 9,55,559 5,0,85 0. Total (Lines 5 through 9) 08,50,56 8,8,80. Net cash from operations (Line minus Line 0),56,5 8,0,6 Cash from Investments. Proceeds from investments sold, matured or repaid:. Bonds 8,09,58,96,60. Stocks 9,50,000. Mortgage loans. Real estate.5 Other invested assets,55 9,.6 Net gains or (losses) on cash, cash equivalents short-term investments (,888) (5,9). Miscellaneous proceeds 0,8,0.8 Total investment proceeds (Lines. to.) 9,556,5 5,6,0. Cost of investments acquired (long-term only):. Bonds,,06,5,9. Stocks 6,6,99 9,95,5. Mortgage loans. Real estate.5 Other invested assets 6,06,09,5,5.6 Miscellaneous applications,,68. Total investments acquired (Lines. to.6) 6,6,8 50,5,088. Net increase (decrease) in contract loans premium notes 5. Net cash from investments (Line.8 minus Line. minus Line ) (,056,58) (9,60,98) Cash from Financing Miscellaneous Sources 6. Cash provided (applied): 6. Surplus notes, capital notes 6. Capital paid in surplus, less treasury stock,000,000 9,8,85 6. Borrowed funds 6. Net deposits on deposit-type contracts other insurance liabilities 6.5 Dividends to stockholders 6.6 Other cash provided (applied) (58,0,9) 0,,695. Net cash from financing miscellaneous sources (Lines 6. to 6. minus Line 6.5 plus Line 6.6) (,0,9) 95,6,55 RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8. Net change in cash, cash equivalents short-term investments (Line, plus Lines 5 ) (00,800,96) 5,800,0 9. Cash, cash equivalents short-term investments: 9. Beginning of year 6,,0 8,5,8 9. End of period (Line 8 plus Line 9.) 5,5,0 6,,0 MGA settlement of premium receivables with securities for $5,0,0 Note: Supplemental disclosures of cash flow information for non-cash transactions: 5

6 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 Premiums Earned During Year (Cols. + - ). Fire,88,8 6,9,889,96, 6,899,656. Allied lines,5,80,6,89 5,5,9,69,9. Farmowners multiple peril. Homeowners multiple peril 5. Commercial multiple peril,590,0 5,5, 0,08,856,908,65 6. Mortgage guaranty 8. Ocean marine 9. Inl marine,65,88 9,985,600 9,959,56,6,5 0. Financial guaranty. Medical professional liability - occurrence 9,0,5,0 59,58. Medical professional liability - claims-made (6,) 6,95 (6,) 8,95. Earthquake 05,00 0,60 5,60 99,856. Group accident health. Credit accident health (group individual) 5. Other accident health 8,650,0 59,890,85 9,66,5 6. Workers' compensation 08,96,0 5,,9 8,88,50,86,. Other liability - occurrence,969,66,50,06,890,809 5,585,888. Other liability - claims-made,8,8 6,50,8 0,806,95 0,5,5. Excess workers' compensation 0,98,,8,550 6,5,05 6,6,68 8. Products liability - occurrence 6,,9,066,085,9,8 5,996,9 8. Products liability - claims-made 9., 9. Private passenger auto liability 9., 9. Commercial auto liability 8,096,0,09,55,6,89,860,8. Auto physical damage,89,9,8,05 5,50,8 0,5,. Aircraft (all perils). Fidelity 69,,89 6,0 0,. Surety,6,698,6,60,55,8,09,96 6. Burglary theft 5,65 5, 59,9 5,85. Boiler machinery 5,5 6,80,9 95,9 8. Credit,085,0 (0,) (9,95),5,68 9. International 0. Warranty 8,58,66 0,66,55,,6,59,955. Reinsurance - nonproportional assumed property. Reinsurance - nonproportional assumed liability. Reinsurance - nonproportional assumed financial lines. Aggregate write-ins for other lines of business 5. TOTALS 60,0, 8,68,55 65,0,609 59,695,06 DETAILS OF WRITE-INS 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 WESCO 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 5 Total Reserve for Unearned Premiums Cols Fire,96,,96,. Allied lines 5,5,9 5,5,9. Farmowners multiple peril. Homeowners multiple peril 5. Commercial multiple peril 0,08,856 0,08, Mortgage guaranty 8. Ocean marine 9. Inl marine 9,959,56 9,959,56 0. Financial guaranty. Medical professional liability - occurrence,0,0. Medical professional liability - claims-made (6,) (6,). Earthquake 5,60 5,60. Group accident health. Credit accident health (group individual) 5. Other accident health,85,85 6. Workers' compensation 8,0, (6,60) 8,88,50. Other liability - occurrence,890,809,890,809. Other liability - claims-made 0,806,95 0,806,95. Excess workers' compensation 6,5,05 6,5,05 8. Products liability - occurrence,9,8,9,8 8. Products liability - claims-made 9., 9. Private passenger auto liability 9., 9. Commercial auto liability,6,89,6,89. Auto physical damage 5,50,8 5,50,8. Aircraft (all perils). Fidelity 6,0 6,0. Surety,55,8,55,8 6. Burglary theft 59,9 59,9. Boiler machinery,9,9 8. Credit (9,95) (9,95) 9. International 0. Warranty,,6,,6. Reinsurance - nonproportional assumed property. Reinsurance - nonproportional assumed liability. Reinsurance - nonproportional assumed financial lines. Aggregate write-ins for other lines of business 5. TOTALS 65,6,9 (6,60) 65,0, Accrued retrospective premiums based on experience. Earned but unbilled premiums 6,60 8. Balance (Sum of Line 5 through ) 65,6, 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

8 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART B - PREMIUMS WRITTEN Line of Business Reinsurance Reinsurance 6 5 Net Premiums Written Business (a) From Affiliates From Non-Affiliates To Affiliates To Non-Affiliates Cols Fire 6,90,56 0,0,0 0,06,95,88,8. Allied lines 5,09,56 9,98,58,88,898,5,80. Farmowners multiple peril. Homeowners multiple peril 5. Commercial multiple peril 98,60,05 6,, 6,58,0,590,0 6. Mortgage guaranty 8. Ocean marine 9. Inl marine,6,5,9,55 6,80,,65,88 0. Financial guaranty. Medical professional liability - occurrence,0,65,,5 9,0. Medical professional liability - claims-made (5,) (,60) (6,). Earthquake 06,58, 60,06 05,00. Group accident health. Credit accident health (group individual) 5,059 5, Other accident health 8,6,6 9,99,5 8,650,0 6. Workers' compensation 68,0,00,59, 59,,9,, 08,96,0. Other liability - occurrence 0,569,68 (68,,9) 8,,,60,995,969,66. Other liability - claims-made 9,68, 6,90,0 8,0,0,8,8. Excess workers' compensation 9,8,58 56,9,560 5,996,85 0,98, 8. Products liability - occurrence,86,85,9,8,59,6 6,,9 8. Products liability - claims-made 9., 9. Private passenger auto liability 9., 9. Commercial auto liability 86,8,966,55,65 9,568,88 6,0,68 8,096,0. Auto physical damage,0,988 (,6,569) 0,,0,095,86,89,9. Aircraft (all perils). Fidelity 05,60,869,69 69,. Surety 8,85,5 6,65,8 0,900,6, Burglary theft 58,9 05,9 0,0 5,65. Boiler machinery 9,98 9,09,86 5,5 8. Credit,8,9,5,6,5,68,085,0 9. International 0. Warranty 596,6,00,908,66,006,5,55 8,58,66. Reinsurance - nonproportional assumed property XXX. Reinsurance - nonproportional assumed liability XXX. Reinsurance - nonproportional assumed financial lines XXX. Aggregate write-ins for other lines of business 5. TOTALS,,508, 5,66,065,59,50,00 0,99,9 60,0, 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 WESCO 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., Part ) to Premiums Earned (Col., Part ) Reinsurance Reinsurance Net Payments Net Losses Unpaid Line of Business Business Recovered (Cols. + - ) Prior Year. Fire,,80,,8,899,6,08,56,6,986 6,69,89.. Allied lines,905,0,06,05,698,95,6,5,986,6 6,88, Farmowners multiple peril. Homeowners multiple peril 5. Commercial multiple peril 9,5,9 5,88,65,6,69 8,0,,6, 8,, Mortgage guaranty 8. Ocean marine 9. Inl marine,,098,90,6,98,69 8,65,65,0,80,65,5 5,655, Financial guaranty. Medical professional liability - occurrence,6,69,0,8 8,5 (50,0) 8,698 69, Medical professional liability - claims-made,,8,59, 68,06 (906,06) 5,8 (59,8) (95.). Earthquake 5,9 5, Group accident health. Credit accident health (group individual) 5. Other accident health 9,00,9 6, 5,,68,9, 9,958 89,8,0, Workers' compensation 0,898,69,9,0 86,69,5,66, 0,5,0 5,8,8 8,56,.. Other liability - occurrence 6,95,58,90,8 6,,866 9,,05 5,8,,,60,95,9 6.. Other liability - claims-made,56,95 5,85,5,,50 8,,855,5,805 6,09, Excess workers' compensation,,59,96,56,580,5 550,60,88,06,5,,86,.8 8. Products liability - occurrence,85,65,08,9 5,59,86,5,6,8 5,, Products liability - claims-made 9., 9. Private passenger auto liability 9., 9. Commercial auto liability 9,698,8,9,8 9,09,96,8,8,50, 5,0,5 59,5, Auto physical damage,9,6,0 6,9,90,650,8,6,06,098,88 9,0, Aircraft (all perils). Fidelity 8, 69,99,95,8 5,6 9, Surety,9,965,,9 50,56 99,99 609,58 88, Burglary theft 69,0 58,89 0,5 6,,66 8,0.9. Boiler machinery 9,8,60 5,,8 6,5, Credit,05,0,000, 0,6 (6,599) 9,66 (66,68) (0.) 9. International 0. Warranty 5,08,5 0,6 5,8,556 8,59, 5,56, 6,56,8,508, Reinsurance - nonproportional assumed property XXX. Reinsurance - nonproportional assumed liability XXX. Reinsurance - nonproportional assumed financial lines XXX. Aggregate write-ins for other lines of business 5. TOTALS 8,9,5,68,9 6,0,96 80,,5 8,, 5,8,98,090,9 59. 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 WESCO 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 9,00,66 6,8,60,9,006,8,09 5,90,58,08,56 00,566. Allied lines 0,908,0 8,,55,8,55,0, 5,8,9,6,5 8,88. Farmowners multiple peril. Homeowners multiple peril 5. Commercial multiple peril 5,,895 0,95,08,,86 0,595,980 6,50,50 8,0,,06, Mortgage guaranty 8. Ocean marine 9. Inl marine 85,5 66,6 98,85,8,006 89,0,98,,0,80 6,80 0. Financial guaranty. Medical professional liability - occurrence,89 (,89) 869,5,05,68 (50,0). Medical professional liability - claims-made 906,06 (906,06). Earthquake 0,600 5,0 5,9,08. Group accident health (a). Credit accident health (group individual) 5. Other accident health,66,8,688,95 (a) 9,958 0, 6. Workers' compensation,05,59,6,58 5,8,5,86,55,86,8 5,6,5 99,6,8 0,5,0,5,899. Other liability - occurrence 9,90,98 0,98,566 0,,65,,899 95,808,89,69,0 80,06,5 5,8,,96,. Other liability - claims-made 6,8,85,66,5,08,0 0,6,88 6,59,6 8,,855 6,96,868. Excess workers' compensation 5,88,98,68,0,0,99,089,96,5,865 88,8,9 00,0,8,88,06,5,00 8. Products liability - occurrence 8,99,,9,0,0,90,608,0,8,069,86,5,68,66 8. Products liability - claims-made 9., 9. Private passenger auto liability 9., 9. Commercial auto liability 66,66,095 6,099,,06 5,,0 9,,55 6,90,80 90,9,6,50, 6,50,585. Auto physical damage,50,90 (6,099),9,59 8,9 0,65,65 8,990,6,6,06 9,6. Aircraft (all perils). Fidelity,6,,8,6. Surety,09,55 9,6 5,8,89,8,0,6 99,99 59,8 6. Burglary theft,000 0,00,800 50,96 9, 6,,556. Boiler machinery 5, 98,885 5,8 85,,96,8,9 8. Credit,6,6,58,85,55,8 (6,599) 9. International 0. Warranty 5,855 (5,855) 5,008,59,968 8,500,998 5,56,,88. 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 5. TOTALS 68,55, 6,5, 6,,8 0,,6 9,606,66 55,5,68 99,05,5 8,, 9,8,00 DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page 99. Totals (Lines 0 thru 0 plus 98)(Line above) (a) Including $ for present value of life indemnity claims.

11 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART - EXPENSES. Claim adjustment services: Loss Adjustment Expenses Other Underwriting Expenses Investment Expenses. 8,00,9 8,00,9. Reinsurance assumed 0,86,850 0,86,850. Reinsurance ceded 8,9,9 8,9,9. Net claim adjustment service ( ) 9,899,85 9,899,85. Commission brokerage:. excluding contingent,6,86,6,86. Reinsurance assumed, excluding contingent,659,68,659,68. Reinsurance ceded, excluding contingent,890,6,890,6. Contingent - direct 0,96,55 0,96,55.5 Contingent - reinsurance assumed 906, 906,.6 Contingent - reinsurance ceded. Policy membership fees,96,6,96,6.8 Net commission brokerage ( ) 0,,6 0,,6. Allowances to managers agents. Advertising 5. Boards, bureaus associations 586,98 586,98 6. Surveys underwriting reports 8,0 8,0. Audit of assureds records,98,9,98,9 8. Salary related items: 8. Salaries 6,899,08 8,9,0 9,00 5,859,8 8. Payroll taxes, 8,08,9 99,59 9. Employee relations welfare 8,9 0, 8,5 0. Insurance 0, 85,500,8 50,5. ors fees 8,6 8,6. Travel travel items 9,69 8,,9 50,8. Rent rent items 06,09 06,09. Equipment 5. Cost or depreciation of EDP equipment software Printing stationery 0,, ,66. Postage, telephone telegraph, exchange express 65,86 85,5 5,69 8. Legal auditing,06,,06, 9. Totals (Lines to 8),805, 5,,,,6,85 0. Taxes, licenses fees: 0. State local insurance taxes deducting guaranty association credits of $ 6,8,69 6,8,69 0. Insurance department licenses fees 68,90 68,90 0. Gross guaranty association assessments 0. All other (excluding federal foreign income real estate),,86,, Total taxes, licenses fees ( ) 65,9,85 65,9,85. Real estate expenses. Real estate taxes. Reimbursements by uninsured plans. Aggregate write-ins for miscellaneous expenses,0,68,0,68 5. Total expenses incurred,05,9 8,859,8, (a) 6,609,5 6. Less unpaid expenses - current year 9,8,00 58,556,6 98,,69. Add unpaid expenses - prior year 9,95,65,6,9 6,,59 8. Amounts receivable relating to uninsured plans, prior year 9. Amounts receivable relating to uninsured plans, current year 0. TOTAL EXPENSES PAID (Lines ),8,5 6,95,06, 8,5, DETAILS OF WRITE-INS 0. Other professional fees,50,5,50,5 0. Bad Debt,565,086,565, Other expenses,806,6,806,6 98. Summary of remaining write-ins for Line from overflow page,,06,, Totals (Lines 0 thru 0 plus 98)(Line above),0,68,0,68 (a) Includes management fees of $ 5,, to affiliates $, to non-affiliates. Total

12 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY EXHIBIT OF NET INVESTMENT INCOME Collected During Year Earned During Year. U.S. Government bonds (a) 9,89,066,9. Bonds exempt from U.S. tax (a),06,585,,. Other bonds (unaffiliated) (a) 6,,9 8,,8. Bonds of affiliates (a). Preferred stocks (unaffiliated) (b). Preferred stocks of affiliates (b) 5,99 5,99. Common stocks (unaffiliated),960,960. Common stocks of affiliates 6, 96,509. Mortgage loans (c). Real estate (d) 5 Contract loans 6 Cash, cash equivalents short-term investments (e),98 0,8 Derivative instruments (f) 8. Other invested assets 50,000 50, Aggregate write-ins for investment income 0. Total gross investment income 0,00,5,,6. Investment expenses (g),. Investment taxes, licenses fees, excluding federal income taxes (g). Interest expense (h). Depreciation on real estate other invested assets (i) 5. Aggregate write-ins for deductions from investment income 6. Total deductions (Lines through 5),. Net investment income (Line 0 minus Line 6),80,8 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 5 from overflow page 599. Totals (Lines 50 thru 50 plus 598) (Line 5, above) (a) Includes $,00,80 accrual of discount less $,, amortization of premium less $,8,0 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 $ 58, accrual of discount less $,68 amortization of premium less $ 6, 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) 5 Realized Gain (Loss) On Sales or Maturity Other Realized Adjustments Total Realized Capital Gain (Loss) (Columns + ) Change in Unrealized Capital Gain (Loss). U.S. Government bonds. Bonds exempt from U.S. tax,0,0. Other bonds (unaffiliated),99,8 (60,0),59,6 89,50. Bonds of affiliates. Preferred stocks (unaffiliated). Preferred stocks of affiliates. Common stocks (unaffiliated). Common stocks of affiliates (69,). Mortgage loans. Real estate 5. Contract loans 6. Cash, cash equivalents short-term investments (,888) (,888). Derivative instruments 8. Other invested assets 56, Aggregate write-ins for capital gains (losses) 0. Total capital gains (losses),6,996 (60,0),86,99 59,8 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 WESCO 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 5. Cash (Schedule E - Part ), cash equivalents (Schedule E - Part ) short-term investments (Schedule DA) 6. Contract loans. 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 5. Premiums considerations: Current Year Total Nonadmitted Assets Prior Year Total Nonadmitted Assets Change in Total Nonadmitted Assets (Col. - Col. ) 5. Uncollected premiums agents' balances in the course of collection,0,6 9,6,90 (,,6) 5. Deferred premiums, agents' balances installments booked but deferred not yet due 5. 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. Amounts receivable relating to uninsured plans 8. Current federal foreign income tax recoverable interest thereon 8. Net deferred tax asset 9,50 6,56 (08,05) 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 5. Aggregate write-ins for other than invested assets 6. Total assets excluding Separate Accounts, Segregated Accounts Protected Cell Accounts (Lines to 5),955,56 0,00,6 (,95,80). From Separate Accounts, Segregated Accounts Protected Cell Accounts 8. Total (Lines 6 ),955,56 0,00,6 (,95,80) 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 5 from overflow page 599. Totals (Lines 50 thru 50 plus 598)(Line 5 above)

14 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY. Summary of Significant Accounting Policies A. Accounting Practices NOTES TO FINANCIAL STATEMENTS The accompanying financial statements of Wesco 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 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 permitted practices by the State of Delaware. The State has adopted certain prescribed 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: State of Domicile () Net Income Delaware basis DE $ 5,95,65 $,095,6 () State Prescribed Practices (Income): DE 0 0 () State Permitted Practices (Income): DE,060,6 0 () Net Income, NAIC SAP DE $,85,08 $,095,6 (5) Statutory Surplus Delaware basis DE $ 6,506,89 $,55, (6) State Prescribed Practices (Surplus): DE 0 0 () State Permitted Practices (Surplus): DE $ 6,,509 0 (8) Statutory Surplus, NAIC SAP DE $ 5,9,80 $,55, B. Use of Estimates The preparation of statutory 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. C. Accounting Policies 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 the pro rata method for direct business are based on reports received from ceding companies for reinsurance. Expenses incurred in connection with acquiring new insurance business, including such costs as sales commissions, are charged to operations as incurred. Expenses incurred are reduced for ceding allowances. In addition, the Company uses the following accounting policies: () Short-term investments are stated at amortized cost. () Investment grade bonds not backed by other loans are stated at amortized cost using the interest method. Non-investment grade bonds with NAIC designations of through 6 are stated at the lower of amortized value or fair value. () Common stocks, other than investments in stocks of subsidiaries affiliates, are stated at fair market value. () The Company carries preferred stock at fair market value. (5) The Company does not hold any mortgage loans. (6) The Company does not hold any loan-backed securities. () The Company s investment in affiliates is stated at equity value. (8) The Company carries its investments in joint ventures, partnership or limited liability companies at carrying value less encumbrances. (9) The Company carries no derivative investments. (0) The Company carries no premium deficiency reserve. () 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 method for making such estimates for establishing the resulting liability is continually reviewed any adjustments are reflected in the period determined. () The Company has not modified its capitalization policy from the prior period. () Not applicable as the Company does not write major medical insurance with prescription drug coverage.. Accounting Changes or Correction 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 65, Property Casualty Contracts ( SSAP 65 ) 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 of $,5,59..0

15 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY. Business Combinations Goodwill There have been no business combinations or resulting goodwill in 06.. Discontinued Operations There have been no there are no current plans to discontinue or dispose of any business segment. 5. Investments A. Mortgage Loans: Not Applicable. B. Debt Restructuring: Not Applicable. C. Reverse Mortgages: Not Applicable. D. Loan-Backed Securities: Not Applicable. E. Repurchase Agreements: 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 Credits: Not Applicable. H. Restricted Assets: () Restricted Assets (Including Pledge) Gross Restricted Current Year 5 Total Protected G/A Supporting Total Protected cell Account Protected Cell Cell Account Assets Account Activity Restricted Supporting G/A (a) Assets Activity(b) Total General Account (G/A) Total ( plus ) 6 Total From Prior Year Increase/ (Decrease) (5 minus 6) 8 Percentage 9 0 Total Current Year Admitted Restricted Gross Restricted to Total Assets Admitted Restricted to Total Admitted Assets Restricted Asset Category a. Subject to contractual obligation for which liability is not shown $ - $ - $ - $ - $ - $ - $ - $ % 0.00% b. Collateral held under security lending agreements - c. Subject to repurchase agreements - d. Subject to reverse purchase 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,99,5,99,5 0,60,95 0,8,66 0,60,95.%.6% k. On deposit with regulatory bodies - l. Pedged 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 $,99,5 $ - $ - $ - $,99,5 $ 0,60,95 $ 0,8,66 $ 0,60,95.%.6% () Detail of Assets Pledged as Collateral Not Captured in Other Categories: Not Applicable () Detail of Other Restricted Assets: Not Applicable I. Working Capital Finance Investments: Not Applicable. J. Offsetting Netting of Assets Liabilities: Not Applicable. K. Structured Notes: Not Applicable. 6. Joint Ventures, Partnerships Limited Liability Companies A. Detail for those greater than 0% of admitted assets: Not Applicable. B. Writedowns for investments in Joint Ventures, Partnerships or Limited Liability Companies: Not Applicable.. Investment Income The Company has not excluded any investment income in its 06 statutory financial statements..

16 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY 8. Derivative Instruments The Company does not hold investments in derivative instruments. 9. Income Taxes A. The components of the net deferred tax asset/(liability) at December are as follows:. December, 06 December, 05 Change Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total (a) Gross deferred tax assets $5,96,68 $86,9 $5,,8 $6,0,65 $60,80 $,6,85 $6,59,9 $56,0 $6,650,6 (b) Statutory valuation allowance adjustments (c) Adjusted gross deferred tax assets (a- b) 5,96,68 86,9 5,,8 6,0,65 60,80,6,85 6,59,9 56,0 6,650,6 (d) Deferred Tax Assets Nonadmitted 8,0 86,9 9,50 6,56 0 6,56 (608,) 86,9 08,05 (e) Subtotal Net Admitted Deferred Tax Asset (c - d) 5,8,6 0 5,8,6 5,95,909 60,80 6,6,89,0,6 (60,80) 6,,8 (f) Deferred Tax Liabilities 5,,,85,90,059 6,80,,,689,9 58, (9,) (8,885) (g) Net admitted deferred tax asset/(net Deferred Tax Liability) (e- f) $5,0, ($,,85) $5,,6 $5,659,0 ($,6,66) $,06,5 $,0,0 $80,8 $,5, 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 $8,9,98 $86,9 $8,996,95 $8,6, $60,80 $9,,0 $9,88,05 $56,0 $9,8,09 (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),5, 0,5,,9, 0,9,,5,05 0,5,05. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date,5, 0,5,,9, 0,9,,5,05 0,5,05. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold XXX XXX 6,5,6 XXX XXX,5,6 XXX XXX,00, (c) Adjusted Gross Deferred Tax Assets (Excluding the Amount of Deferred Tax Assets From (a) (b) above) Offset by Gross Deferred Tax Liabilities 5,,,85,90,059 6,80,,,689,9 58, (9,) (8,885) (d) Deferred Tax Assets Admitted as the Result of Application of SSAP No. 0 Total ((a) + (b) + (c) 50,90,9,8, 5,8,6,60,6,,6 6,6,89,,58 (885,00) 6,, Percentage Percentage (a) Ratio Percentage Used to Determine Recovery Period Threshold Limitation Amount 58% 590% (b) Amount of Adjusted Capital Surplus Used to Determine Recovery Period Threshold Limitation in (b) Above 59,509,9,5,6 (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, 05 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: Change (a) Federal,9,9,9,55 (0,8,805) (b) Foreign (c) Subtotal,9,9,9,55 (0,8,805) (d) Federal income tax on net capital gains (e) Utilization of capital loss carryforward (f) Other Federal foreign income taxes incurred,9,9,9,55 (0,8,805).

17 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY. Deferred tax assets: Change (a) Ordinary: () Discounting of unpaid losses,00,68,986, (95,6) () Unearned premium reserve 6,06,50 0,65,9 5,5,8 () Policyholder reserves () Investments (5) Deferred acquisition costs (6) Policyholder dividends accrual () Fixed assets (8) Compensation benefits accrual (9) Pension accrual (0) Receivables - nonadmitted,55,6 0,55,6 () Net operating loss carry-forward () Tax credit carry-forward () Other (including items <5% of total ordinary tax assets) 8,66,8,89,,9,55 () Discount on salvage subrogation,985,6,0,85 (,6,0) (99) Subtotal 5,96,68 6,0,65 6,59,9 (b) Statutory valuation allowance adjustment (c) Nonadmitted 8,0 6,56 (608,) (d) Admitted ordinary deferred tax assets (a99-b-c) 5,8,6 5,95,909,0,6 (e) Capital () Unrealized Losses () Investments 86,9 60,80 56,06 () Real estate () Other (including items <5% of total capital tax assets) (99) Subtotal 86,9 60,80 0 (f) Statutory valuation allowance adjustment (g) Nonadmitted 86,9 0 0 (h) Admitted capital deferred tax assets (e99-f-g) 0 60,80 (60,80) (i) Admitted deferred tax assets (d+h) 5,8,6 6,6,89 6,,8. Deferred tax liabilities: Change (a) Ordinary: () Investments () Fixed assets () Deferred uncollected premiums () Policyholder reserves (5) Other (including items <5% of total ordinary tax liabilities) (6) Additional acquisition costs-installment premiums 5, 6,80 58, () Discount of accrued salvage subrogation (8) Guaranty funds receivable (99) Subtotal 5, 6,80 58, (b) Capital () Investments,,85,, (9,) () Real estate () Other (including items <5% of total capital tax liabilities) (99) Subtotal,,85,, (9,) (c) Deferred tax liabilities (a99+b99),90,059,689,95 (8,885). Net deferred tax assets/liabilities (i-c) 5,,6,06,5,5,6 D. Reconciliation of Federal Income Tax Rate to Actual Effective Rate The significant items causing a difference between the statutory federal income tax rate Wesco Insurance Company's effective income tax rate are as follows: December, 06 Effective Tax Rate Provision computed at statutory rate $6,60,5 5.0% Change in nonadmitted assets (,55,6) -6.% Tax exempt income deduction (,8) -.% Dividends received deduction (6,85) -0.% Previously Taxed Income (59,8) -0.8% Goodwill amortization 0 0.0% Proration of tax exempt investment income 6,5 0.% Accounting Method Change,89,0.% Nondeductible Items 5,58 0.% Taxes recovered RAR 0 0.0% Accrual adjustment - prior year 6, 0.% Other (,0) -.% Totals ($,0,90) -8.% Federal foreign income taxes incurred $,9,9 68.6% Realized capital gains (losses) tax 0 0.0% Change in net deferred income taxes (6,,656) -86.6% ($,0,90) -8.0%.

18 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY 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 that is available for recoupment in the event of future net losses: Year Amount 06 $,9,9 05 $,9,55 () 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 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 55 LBJ Freeway LLC Composite Holdings Limited 5 West Jefferson LLC Composite Assistance Limited 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 AII Investment Holdings Limited Reinsurance, Ltd AII Reinsurance Broker Ltd Dore & Associates Holdings Limited AIU Management Services Limited Dore Underwriting Services Limited AmCafe LLC DSSA Warranty Danýþmanlýk Anonim Þiriketi AmCom Insurance Services, Inc. Eagle General Agency, Inc. AMT Agency Holdings, Inc. East Ninth & Superior, LLC AMT Capital Alpha, LLC Finagra (UK) Limited AMT Capital Holdings III S.A. Finagra USA Inc. AMT Capital Holdings S.A First Nationwide 0 LLC AMT Chronos S.A. First Nationwide Title Agency LLC AMT Consumer Services, Inc. First Nationwide Title Agency of Texas, LLC AMT Title, LLC First NonProfit Companies AMT do Brasil Holdings Limited First Nonprofit Insurance Agency AMT Global, LLC First Nonprofit Insurance Company AMT Global Realty Holdings LLC First Nonprofit Unemployment Administration Company, LLC AMT Home Protection Company FSO LLC AMT Investments, LLC Gadget Repair Solutions Limited AMT Mortgage Insurance Limited Heritage Indemnity Company AMT Mortgage Services Limited Heritage Mechanical Breakdown Corporation AMT NJ Realty LLC I.G.I. Administration Services Limited AMT NY Realty Holdings, LLC I.G.I. Intermediaries Limited AMT Plutus S.A. Indemnity Company of California AMT RE NY Holdings LLC Insco Insurance Services, Inc. AMT Road Services Corp LAE Insurance Services, Inc AMT Warranty Corp. Lion Capital Alpha, LLC AMT Warranty Corp of Canada, ULC Lion Capital Beta, LLC AMT Warranty Solutions, Inc. MGB Investments LLP AMTCS Holdings, Inc. Milwaukee Casualty Insurance Company AmTrust Agriculture Insurance Services, LLC Mobile Reapair Solutions Malaysia SDN BHD AmTrust at Lloyd's Limited Motors Insurance Company Limited AmTrust Bermuda I Ltd. National Home Surety Inc. AmTrust Bermuda II Ltd. Northcoast Warranty Services, Inc. AmTrust Bermuda III Ltd. Oakwood Village, Ltd AmTrust Bermuda IV Ltd. Oryx Insurance Brokerage, Inc. AmTrust Captive Solutions Limited OwnerGUARD Agency AmTrust Cayman Resinsurance Company, Ltd. OwnerGUARD Corporation AmTrust Claims Management SrL. OwnerGUARD University AmTrust Claims Services, Inc. PBOA. Inc AmTrust Corporate Capital Limited Pedigree Livestock Insurance Limited AmTrust Corporate Member Limited Primero Seguros, S.A. de C.V. AmTrust Corporate Member Two Limited PT AmTrust Mobile Solutions Indonesia Holdings AmTrust E&S Insurance Services, Inc. REAF Holdings LLC AmTrust Equity Solutions Ltd Republic Companies, Inc. AmTrust Europe Legal Ltd Republic Diversified Services, Inc. AmTrust Europe Limited Republic Fire Casualty Insurance Company AmTrust France SAS Republic Group No. Two Company AmTrust Gestion Bolivia S.R.L. Republic Lloyds AmTrust Gestion Paraguay S.A. Republic Underwriters Insurance Company AmTrust Gestion Peru S.A.C. Republic-Vanguard Insurance Company AmTrust Financial Services, Inc RHL Corporate Name No. Limited AmTrust Holdings Luxembourg - Europe S.a.r.l. Right Claim, Limited AmTrust Holdings Luxembourg S.A.R.L. Risk Services - Arizona Inc. AmTrust Holding Sweden Europe AB Risk Services - Nevada, Inc. AmTrust Insurance Agency Italy S.r.l. Risk Services - Vermont, Inc AmTrust Insurance Company of Kansas, Inc. Risk Services (Bermuda) Ltd AmTrust Insurance Luxembourg S.A. Risk Services (Hawaii) Ltd AmTrust Insurance Spain, S.L.U. Risk Services Intermediaries (Bermuda) Ltd AmTrust International Bermuda Ltd. Risk Services, LLC AmTrust International Insurance, LTD Rock Run South, LLC AmTrust International Limited Rocklin Sierra College AmTrust International Underwriters Limited RS Acquisition Holdco, LLC.

19 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY 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 00 (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 NW65, 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 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 basis with current credit for any net operating losses or other items utilized in the consolidated tax return. Intercompany tax balances are settled quarterly. G. Federal or Foreign Federal 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. No change B. The Company is a party to acquisition disposal transactions of financial instruments between AmTrust Affiliates. The details of these transactions for the current quarter are reported on Schedule D-Part Show All Long-Term Bonds Stock Acquired During the Current Quarter Show All Long-Term Bonds Stocks Sold, Redeemed or Otherwise Disposed of During the Current Quarter. All investment transactions with affiliates have been reported at market value. Below are the transactions on Schedule D-Part Schedule D-Part from the current quarter that are greater than or equal ½ of % of total admitted assets: Schedule D- Part Bonds Description of Bonds Date Acquired Name of Vendor Actual Cost GINNIE MAE 05- AD.600% /6/55 08//06 AMTRUST INTL INS LTD 8,508,8 GINNIE MAE 05-5 AB.500% 0/6/5 0//06 AMTRUST FINANCIAL SVCS INC,90,6 AUST & NEW ZEALAND BANKING GRP REGS.00% /6/5 08/5/06 AMTRUST INTL INS LTD 8,6,08 VERIZON COMMUNICATIONS.50% 0/5/ /8/06 AMTRUST INTL INS LTD,5,09 Schedule D- Part Common Stock Description of Common Stock Date Acquired Name of Vendor Actual Cost AII INVT HLDGS LTD /0/06 AFS,000,000.5

20 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY Schedule D- Part Bonds Description of Bonds Disposal Date Name of Purchaser Consideration GINNIE MAE 05- AD.600% /6/55 0/9/06 AMTRUST INTL INS LTD 5,859,9 ASTRA ZENECA PLC.5% /6/5 0/9/06 AMTRUST INTL INS LTD,55,8 VERIZON COMMUNICATIONS.50% 0/5/ 05/0/06 AMTRUST INTL INS LTD 0,8,60 CVS CAREMARK CORP.85% 0/0/5 0//06 TECHNOLOGY INSURANCE COMPANY 0,,0 JP MORGAN CHASE COMM MORTGAGE 05 JP CLASS A.650% /5/5 0//06 TECHNOLOGY INSURANCE COMPANY 0,0,900 MICHIGAN ST HSG AUTH SER A.50% /0/0 0//06 TECHNOLOGY INSURANCE COMPANY 0,5,000 FANNIE MAE 0- CLASS YT.000% 0/5/ 0//06 TECHNOLOGY INSURANCE COMPANY 0,080,898 CREDIT SUISSE GP FUNDING LTD EXCH FROM A CUSIP AA9.50% 0/6/5 0//06 TECHNOLOGY INSURANCE COMPANY 9,65,90 Schedule D- Part Preferred stock Description of Preferred Stock Disposal Date Name of Purchaser Consideration AMTRUST EQUITY SOLUTIONS LTD PFRD /8/06 AMTRUST FINANCIAL SVCS INC 9,50,000 C. All of the outsting stock of the Company is owned by AmTrust Financial Services, Inc. (AmTrust). On June, 006, the Company entered into a reinsurance agreement (the reinsurance agreement ) with its affiliates, AmTrust International Insurance, Ltd. (AII), Technology Insurance Company, Inc. (Technology) Rochdale Insurance Company (Rochdale) by which the Company cedes 0% of its net retained premiums losses to AII 0% to Technology. On September, 00, the reinsurance agreement was amended to include Associated Industries Insurance Company, Inc. ( Associated ). Under the current reinsurance agreement, the Company continues to cede 0% of its net retained premiums losses to AII 0% to Technology. The Company does not cede any business to or assume any business from Rochdale or Associated. Effective January, 05, the reinsurance agreement was amended to cede 60% of net earned premium incurred losses on new renewal business to AII. The terms of the agreement for TIC were not changed. Effective January, 06, the reinsurance agreement was amended to cede 50% of net earned premium incurred losses on new renewal business to AII. D. At December, 06, the Company reported payables to parent, subsidiaries, affiliates of $,5,65. These amounts are to be settled monthly. E. There are no guarantees or contingencies for the material benefit of related parties. F. The Company has an Intercompany Management Agreement with AmTrust, by which AmTrust provides certain management services for the Company. The Company has a General Agency Agreement with an affiliate, AmTrust North America, Inc. ( ANA ) by which ANA provides certain agency services for the Company. 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 Investment in Affiliates: Not Applicable. K. Foreign Insurance Subsidiary Valued Using CARVM: Not Applicable. L. Downstream Holding Company Value Using Look-Through Method: Not Applicable. M. All SCA Investments ) Balance Sheet Value (Admitted Nonadmitted) All SCAs (Except 8bi Entities) SCA Entity Percentage of SCA Ownership Gross Amount Admitted Amount Nonadmitted Amount a. SSAP No. 9 8a Entities National General Holding Corp Common.6% $,586,08 $,586,08 $0 Total SSAP No. 9 8a Entities $,586,08 $,586,08 $0 b. SSAP No. 9 8b(ii) Entities Total SSAP No. 9 8b(ii) Entities c. SSAP No.9 8b(iii)&(v) Entities AII Invt Holdings Ltd.% $,000,000 $,000,000 $0 Total SSAP No.9 8b(iii)&(v) Entities $,000,000 $,000,000 $0 d. SSAP No. 9 8b(iv) Entities Primero Seguros SA 99.9% $9,8,08 Total SSAP No. 9 8b(iv) Entities e. Total SSAP No. 9 8b Entities (except 8bi $,8,08 $,000,000 $0 entities) (b+c+d) f. Aggregate Total (a+e) $66,805,6 $5,586,08 $0.6

21 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY ) NAIC Filing Response Information SCA Entity (Should be same entities as shown in M() above.) a. SSAP No. 9 8a Entities National General Holdings Corp Common Type of NAIC Filing* Date of Filing to the NAIC NAIC Valuation Amount NAIC Response Received Y/N NAIC Disallowed Entities Valuation Method, Resubmission Required Y/N S /0/6 $,586,08 Y N Code** Total SSAP No. 9 8a Entities $,586,08 b. SSAP No. 9 8b(ii) Entities Total SSAP No. 9 8b(ii) Entities c. SSAP No. 9 8b(iii)&(v) Entities AII Invt Holdings Ltd S /0/ $,000,000 N N Total SSAP No. 9 8b(iii)&(v) Entities $,000,000 d. SSAP No. 9 8b(iv) Entities Primero Seguros SA S //6 $9,8,08 Y N Total SSAP No. 9 8b(iv) Entities $9,8,08 e. Total SSAP No. 9 8b Entities $,8,08 (except 8bi entities) (b+c+d) f Aggregate Total (a+e) $66,805,6 * S Sub-, S Sub- or RDF Resubmission of Disallowed Filing ** I Immaterial or M Material. Debt A. Amount, interest, maturities, collateral, covenants: Not applicable. B. Funding agreements with Federal Home Loan Bank (FHLB) ) The Company is a member of the Federal Home Loan Bank (FHLB) of Pittsburgh. Through its membership, the Company has issued $,000 to the FHLB in exchange for, shares of capital stock.. Retirement Plans, Deferred Compensation, Postemployment Benefits Compensated Absences other Postretirement Benefit Plans A. Defined Benefit Plan: Not Applicable. 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 plan that covers substantially all employees. AmTrust makes discretionary employer contributions on a variable matching basis. AmTrust contributes 50% per employee dollar, up to a maximum contribution 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 of Postretirement Benefits (INT 0-): Not Applicable.. Capital Surplus, dividend restrictions Quasi-Reorganizations. ) The Company has,000 shares of $,500 par value common stock authorized. There are,000 shares issued outsting as of December, 06. 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: () 0% of policyholders surplus or () net income, not including realized capital gains. Under such restrictions, the maximum dividend payout which may be made by the Company without prior approval in 06 is $6,50,69. ) The Company did not pay dividends as of December, 06. 5) Ordinary dividends may be paid out of profits subject to applicable law. 6) The Company has no restrictions on its unassigned funds (surplus) as of December, 06. ) Mutual Surplus Advances: Not Applicable. 8) Company Stock Held for Special Purposes: Not Applicable. 9) Changes in Special Surplus Funds: Not Applicable. 0) The portion of unassigned funds (surplus) represented by cumulative unrealized gain (loss) is $,9,50..

22 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY ) The Company has not issued any surplus debentures or similar obligations. ) Impact Dates of Quasi-Reorganizations: Not Applicable.. Contingencies A. Contingent Commitments The Company has no commitments or contingent commitments to any SCA entity, joint venture, partnership or limited liability company. B. Assessments The Company has received notification of several insolvencies in the states which the Company operates. It is expected that the insolvencies will result in a guaranty fund assessment against the Company at some future date. At this time, the Company is unable to estimate the possible amounts, if any, of such assessments. Accordingly, the Company is unable to determine the impact, if any, such assessments may have on the Company's financial position or results of operations. C. Gain Contingencies: Not Applicable D. Claims Related Extra Contractual Obligation Bad Faith Losses Stemming from Lawsuits: Not Applicable. E. Product Warranties: Not Applicable. F. All Other Contingencies The Company is not aware of any material contingencies as of reporting date. 5. 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.. Sale, Transfer Servicing of Financial Assets Extinguishment of Liabilities The Company does not have any type of servicing agreements or arrangements as of December, Gains or Loss to the Company from Uninsured Plans Uninsured Portion of Partially Insured Plans A. Administrative Services Only (ASO) Plans: Not Applicable. B. Administrative Services Contract (ASC) Plans: Not Applicable. 9. Premium Written/Produced by Managing General Agents/Third Party Administrators The Company uses managing general agents (as such term is defined by applicable law) to underwrite administer on behalf of the Company certain insurance policies. The terms of the managing agency agreements extend to these agents limited authority for underwriting (U), binding authority (B), premium collection (P), claim payment (C) claim adjustment (CA), all as more particularly set forth in such written managing agency agreements. The Company establishes the underwriting guidelines claims hling procedures. Regular audits of the underwriting claims hling practices are conducted to ensure compliance. Managing general agents in excess of 5% of surplus are: Name Address FEI Number Exclusive Contract Type of Business Written Type of Authority Granted Written Premium AmTrust North America, Inc. 800 Superior Avenue E. Clevel, OH No OccuSure Workers Compensation Specialists, LLC 6 Cadillac Dr., Ste. 0 Brentwood, TN No 0. Fair Value Measurements A. Inputs Used for Assets Liabilities Measured at Fair Value.. Fair Value Measurements by Levels, Workers Comp Workers Comp, GL U, B, P,CA,C 8,58,5 C, CA, B,P,U,86,8 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 defined 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 bonds. The estimated fair values of the securities within this category are based on quoted prices in active markets are thus classified as Level..8

23 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY Level - Significant Other Observable Inputs: This category for items measured at fair value on recurring basis includes bonds which are not exchange-traded The estimated fair values of some of these items were determined by independent pricing services using observable inputs. Level - Significant Unobservable Inputs: This category for items measured at fair value on recurring basis includes investment partnerships. The estimated fair value is determined by the investment manager. Description Level Level Level Total Assets at fair value Bonds US Government 9,,86 5,09,6 -,56, Industrial & Misc - 8,56,6-8,56,6 Total bonds asset-backed securities 9,,86 9,59,59-8,9,58 Common stock Industrial & Misc - -,9,000,9,000 Parent, Subsidiaries Affiliates,586,08 -,8,00 66,805,08 Total Common Stock,586,08-5,89,00 68,6,08 Other invested assets Investment partnerships Total other invested assets Total assets at fair value $,009,569 $9,59,59 $5,89,00 $9,8,566. Rollforward of Level Items Balance January,06 Transfers in Level Transfers out Level Total Gains (Losses) Included in Surplus Purchase Sales Balance Dec, 06 Perpetual Preferred Stocks Parent Subsidiaries Affiliates $ - $ - $ - $ - $ - $ - Common Stock Parent Subsidiaries Affiliates,09,09 - (6,50,50),6,99-9,8,08 Industrial Misc.,9, ,9,000 Other Invested Assets Investment Partnerships,98, ,656 6,0,56-0,85,055 Total Assets $ 8,86,9 $ - $ - (5,588,9) $ 8,0,55 $ - $,5,6. 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 that would cause an instrument to be transferred into or out of Level. During the current year, no transfers into or out of Level were required.. 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 used of matrix pricing. Matrix pricing takes quoted prices of bonds with similar features applies analytic methods to determine the fail value of bonds held. Features that are inputs into the analysis include duration, credit quality, tax status call sinking fund features. The Company has no preferred stock measured at fair value in Level. The Company has no common stock categorized as Level. Other invested assets categorized as Level fair value are carried at fair value as determined by the investment manager. 5. Derivative Fair Values. Other Items Not applicable A. Extraordinary Items: Not Applicable. B. Troubled Debt Restructuring: Not Applicable. C. Other Disclosures The Company has assets in the amount of $,99,5 $0,60,95 at December, 06 05, respectively, which are on deposit with government authorities as required by law. D. Business Interruption Insurance Recoveries: Not Applicable E. State Transferable Non-transferable Tax Credits: Not Applicable..9

24 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY F. Subprime Mortgage Related Risk Exposure: Not Applicable. G. Insurance-Linked Securities (ILS) Contracts Number of Outsting ILS Contracts Aggregate Maximum Proceeds Management of Risk Related To: () ly - Written Insurance Risks a. ILS Contracts as Issuer b. ILS Contracts as Ceding Insurer $5 million c. ILS Contracts as Counterparty () - Written Insurance Risks a. ILS Contracts as Issuer b. ILS Contracts as Ceding Insurer c. ILS Contracts as Counterparty. Events Subsequent Subsequent events have been considered through February, 0, the date of issuance of these statutory financial statements. There were no events occurring subsequent to the end of the year that merited recognition or disclosure in these statements. The Company does not write health insurance subject to assessment under section 900 of the Affordable Care Act.. Reinsurance A. The following table summarizes the aggregate reinsurance recoverable in excess of % of policyholders surplus. NAIC Code Federal ID # Name of Reinsurer Amount AA-908 AmTrust International Insurance Co.,9,8, Technology Insurance Company 0,8, Motors Insurance Corporation,6, AA ARIA (SAC) Ltd.,, AA Southwest Colonial Re, Ltd. 9,8, AA-908 Atlantic Gateway International Ltd. 9,5, AA-06 AmTrust at Lloyds Limited, Syndicate 06,5, AA-0058 Preferred Natiowide Reinsurance Company Ltd. 5,99, Canopius US Insurance Inc.,00, AA De Lage Len Re Limited (Dublin, Irel),56, AA North 5 Insurance Inc.,,000 B. The Company has no reinsurance recoverable in dispute. C. Reinsurance. Reinsurance Reinsurance Net () () () () (5) (6) Premium Commission Premium Commission Premium Commission Reserve Equity Reserve Equity Reserve Equity a. Affiliates $ - $ - $,06,90,56 $ 8,0,8 $ (,06,90,56) $ (8,0,8) b. All Other 8,9,09 9,90,065,65,90 8,85, $ (8,85,98) $ (9,055,6) c. Total $ 8,9,09 $ 9,90,065 $,69,5,85 $,66,88 $ (,85,96,6) $ (0,6,) d. Unearned Premium Reserves: $,50,5, The Company has no additional or return commission predicated on loss experience.. The Company has no protected cells at December, 06. D. Uncollectible Reinsurance: Not Applicable. E. Commutation of Reinsurance: Not Applicable. F. Retroactive Reinsurance: Not Applicable. G. Reinsurance Accounted for as a Deposit: Not Applicable. H. Disclosures for the Transfer of Property Casualty Run-off Agreements: Not Applicable. I. Certified Reinsurer Rating Down Graded or Status Subject to Revocation: Not Applicable..0

25 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY. Retrospectively Rated Contracts & Contracts Subject to Redetermination The Company has no retrospectively rated contracts or contracts subject to redetermination. 5. Changes in Incurred Losses Loss Adjustment Expense Reserves as of December, 05 were $0.8 million. As of December, 06, $.5 million has been paid for incurred claims claim adjustment expenses attributable to insured events of prior years. Reserves remaining for prior years are now $5.0 million as a result of re-estimation of unpaid claims claim adjustment expenses principally on workers compensation commercial auto liability lines of insurance. There has been a $6.5 un-favorable prior-year development since December, 05 to December, 06. The increase is generally the result of ongoing analysis of recent loss development trends. Original estimates are increased or decreased, as additional information becomes known regarding individual claims. 6. Intercompany Pooling Arrangements The Company did not participate in any intercompany pooling arrangement.. Structured Settlement The Company has no exposure to unreported loss contingencies as a result of structured settlements. 8. Health Care Receivables The Company has no Health Care Receivables. 9. Participating Policies The Company has no participating policies other than P&C contracts. 0. Premium Deficiency Reserve The Company has no premium deficiency reserve recorded.. High Deductibles The Company has taken no reserve credit related to unpaid claims.. 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 Mortality Table 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, 05 as described in Note. As of December, 06 the amount of discounted tabular workers compensation excess workers compensation case reserves is $60,000. The amount of tabular discount as of December, 06 is as follows: Tabular Discount Included in Schedule P - Part Schedule P lines of business Case IBNR Total Workers' compensation $ 60,000 $ - $ 60,000 Excess workers' compensation Total tabular discount $ 60,000 $ - $ 60,000 Non-Tabular Discount Schedule P lines of business Case IBNR Total Workers' compensation $,08,000 $,,000 $ 6,50,000 Excess workers' compensation 555,000,65,000,08,000 Total nontabular discount $,58,000 $ 5,95,000 $ 9,558,000. Asbestos/Environmental Reserves The Company has no potential exposure to asbestos /or environmental claims.. Subscriber Savings Accounts The Company is a stock company therefore has no surplus identified as subscriber savings accounts. 5. Multiple Peril Crop Insurance Not applicable. 6. Financial Guaranty Insurance Not applicable..

26 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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: 05/0/06. 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.5 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 [ ] No [ ] N/A [ X ]. 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 [ ] 5. Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? Yes [ ] No [ X ] 5. 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:. Does any foreign (non-united States) person or entity directly or indirectly control 0% or more of the reporting entity? Yes [ ] No [ X ]. If yes,. State the percentage of foreign control;. 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 5

27 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 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, 5 Park Avenue, New York, NY 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 H 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: 0.5 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 0.5 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, Second 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 $,99,6. If, yes provide explanation:. 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). 5.

28 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY GENERAL INTERROGATORIES 5. 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 ] 5. If the response to 5. 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 [ ]. 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 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 ].05 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. $.0 Does your securities lending program require 0% (domestic securities) 05% (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 ] 5.

29 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. $ 5. 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 [ ] 5. If yes, state the amount thereof at December of the current year: 5. Subject to repurchase agreements $ 5. Subject to reverse repurchase agreements $ 5. Subject to dollar repurchase agreements $ 5. Subject to reverse dollar repurchase agreements $ 5.5 Placed under option agreements $ 5.6 Letter stock or securities restricted as to sale - excluding FHLB Capital Stock $ 5. FHLB Capital Stock $ 5.8 On deposit with states $,99,5 5.9 On deposit with other regulatory bodies $ 5.0 Pledged as collateral - excluding collateral pledged to an FHLB $ 5. Pledged as collateral to FHLB - including assets backing funding agreements $ 5. Other $ 5. For category (5.6) 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 [ ] If no, attach a description with this statement.. 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 ]. 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) New York, 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 5.

30 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY GENERAL INTERROGATORIES 8.05 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 8.05, 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 8.05, does the total assets under management aggregate to more than 50% of the reporting entity s assets? Yes [ ] No [ X ] 8.06 For those firms or individuals listed in the table for 8.05 with an affiliation code of "A" (affiliated) or "U" (unaffiliated), provide the information for the table below. Central Registration Depository Number 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) Legal Entity Identifier (LEI) Registered With 5 Investment Management Agreement (IMA) Filed DS DS DS DS DS 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 5(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 86,,99 8,9,58 (,60,) 0. Preferred stocks 0. Totals 86,,99 8,9,58 (,60,) 0. Describe the sources or methods utilized in determining the fair values: Fair values were provided by pricing service IDC (interactive DATA).. 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: Pricing provided by Interactive Data Corporation. 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: 5.

31 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY GENERAL INTERROGATORIES OTHER. Amount of payments to trade associations, service organizations statistical or rating bureaus, if any? $ 586,98. List the name of the organization the amount paid if any such payment represented 5% 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 98,855. Amount of payments for legal expenses, if any? $ 6,669. List the name of the firm the amount paid if any such payment represented 5% or more of the total payments for legal expenses during the period covered by this statement. Name Amount Paid Matthews, Shiels, Pearce, Knott, Eden Davis LLP 6,69 5. Amount of payments for expenditures in connection with matters before legislative bodies, officers or departments of government, if any? $ 5. List the name of the firm the amount paid if any such payment represented 5% 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 5.5

32 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. $.5 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 $.65 Total incurred claims $.66 Number of covered lives. Group policies: Most current three years:. Total premium earned $. Total incurred claims $. Number of covered lives All years prior to most current three years. Total premium earned $.5 Total incurred claims $.6 Number of covered lives. Health Test: Current Year Prior Year. Premium Numerator 9,66,5 6,009,5. Premium Denominator 59,695,06 95,,. Premium Ratio (./.) Reserve Numerator,008,8,,.5 Reserve Denominator 698,6,59 68,,.6 Reserve Ratio (./.5) Does the reporting entity issue both participating non-participating policies? Yes [ X ] No [ ]. If yes, state the amount of calendar year premiums written on:. Participating policies $,58,. Non-participating policies $ 55,98,66. For mutual reporting Entities Reciprocal Exchanges Only:. Does the reporting entity issue assessable policies? Yes [ ] No [ ]. Does the reporting entity issue non-assessable policies? Yes [ ] No [ ]. 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. $ 5. For Reciprocal Exchanges Only: 5. Does the Exchange appoint local agents? Yes [ ] No [ ] 5. If yes, is the commission paid: 5. Out of Attorney's-in-fact compensation Yes [ ] No [ ] N/A [ ] 5. As a direct expense of the exchange Yes [ ] No [ ] N/A [ ] 5. What expenses of the Exchange are not paid out of the compensation of the Attorney-in-fact? 5. Has any Attorney-in-fact compensation, contingent on fulfillment of certain conditions, been deferred? Yes [ ] No [ X ] 5.5 If yes, give full information 6

33 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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; $56.50m xs $0m - 00% covered on a catastrophe basis. In addition, there is a $0m coverage for earthquake only with 8.5% placement, a terrorism (NBCR) layer; $00m xs $0m which is 00% placed. The program, including the additional $0m earthquake layer, covers losses up to :,9 year return time using RMS AIR blended modeling. In addition, the Company reinsures 0% of its net risk (net of external reinsurance) to an affiliated company. 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 $5m. $m xs $m property per risk at 00% coverage. The Company's property catastrophe program covers $550m xs $0m at 00%. In addition, there is a special $0m layer for earthquake, wind, storm, tornado, hail, which is 8.5% 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 [ ] 6.5 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.. 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 ]. If yes, indicate the number of reinsurance contracts containing such provisions:. 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 5% 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 5% 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 5% 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 5% 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 (50%) 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 (5%) 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 ] 9.5 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 WESCO 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 5. 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 5., 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 %.5 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): $,00,000. 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 participating 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 [ ].5 If the answer to. is no, please explain: 5. Has the reporting entity guaranteed any financed premium accounts? Yes [ ] No [ X ] 5. 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 5 Premium Earned 6. Home,8,8,58,50 6,86,8 6,8,0 59,65, 6. Products 0,96,5,999,5 65,5,09 0,908,0 08,560, Automobile,089,9,,5 6,6, 56,9, 0,60,5 6. Other* 6,98 50,000,6,869,6,869 * Disclose type of coverage: 6.

35 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY GENERAL INTERROGATORIES PART - PROPERTY AND CASUALTY INTERROGATORIES. Does the reporting entity include amounts recoverable on unauthorized reinsurance in Schedule F - Part that it excludes from Schedule F - Part 5? 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 5. Provide the following information for this exemption:. Gross amount of unauthorized reinsurance in Schedule F - Part excluded from Schedule F - Part 5 $. Unfunded portion of Interrogatory. $. Paid losses loss adjustment expenses portion of Interrogatory. $. Case reserves portion of Interrogatory. $.5 Incurred but not reported portion of Interrogatory. $.6 Unearned premium portion of Interrogatory. $. Contingent commission portion of Interrogatory. $ Provide the following information for all other amounts included in Schedule F - P art excluded from Schedule F - Part 5, not included above..8 Gross amount of unauthorized reinsurance in Schedule F - Part excluded from Schedule F - Part 5 $.9 Unfunded portion of Interrogatory.8 $.0 Paid losses loss adjustment expenses portion of Interrogatory.8 $. Case reserves portion of Interrogatory.8 $. Incurred but not reported portion of Interrogatory.8 $. Unearned premium portion of Interrogatory.8 $. Contingent commission portion of Interrogatory.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 WESCO 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,.,.,., 8., 8., 9., 9. & 9., 9.),55,566,809,0,00,59,00,00,6 668,8,580 86,5,9. Property lines (Lines,, 9,, & 6) 9,8,88,65,688 86,,5 5,08,69,50,08. Property liability combined lines (Lines,, 5, 8, & ) 98,00, 6,69,6,00,8,6,95,69,05. All other lines (Lines 6, 0,,, 5,,, 8, 9, 0 & ) 69,66, ,6,5 5,09,8 60,59,59 66,9,0 5. Nonproportional reinsurance lines (Lines, & ) 6. Total (Line 5),8,,,9,58,68,6,0,96,09,0,80 686,,6 Net Premiums Written (Page 8, Part B, Col. 6). Liability lines (Lines.,., 6,.,.,., 8., 8., 9., 9. & 9., 9.) 9,9,85,09,96 9,698,5 6,080,8,86,8 8. Property lines (Lines,, 9,, & 6) 5,9, 5,85,889,9,9,56,89,95,8 9. Property liability combined lines (Lines,, 5, 8, & ),65,59 0,8,98,5,0,8 56,8 0. All other lines (Lines 6, 0,,, 5,,, 8, 9, 0 & ) 0,5,,09,5 6,66,0 6,9,0,5,06. Nonproportional reinsurance lines (Lines, & ). Total (Line 5) 60,0, 6,9,5 8,55,85,8,85 80,05,9 Statement of Income (Page ) Net underwriting gain (loss) (Line 8) (6,50,9),985,8,55,805 6,0, 0,99,800. Net investment gain or (loss) (Line ) 6,56,,09,9,0,68 0,0,580 6,56,8 5. Total other income (Line 5) 6. Dividends to policyholders (Line ),9,80 50, 585,08 0,59 5,58. Federal foreign income taxes incurred (Line 9),9,9,9,55,55,0,898,90 8,055,59 8. Net income (Line 0) 5,95,6,095,6,50,0,6,50 9,6,06 Balance Sheet Lines (Pages ) 9. Total admitted assets excluding protected cell business (Page, Line 6, Col. ),90,659,688,,,58,,58,5 80,, 505,5,0 0. Premiums considerations (Page, Col. ) 0. In course of collection (Line 5.) 6,98,60 5,0,080 08,6,5 08,8, 58,, Deferred not yet due (Line 5.) 5,699,6 50,6,8 88,9,66,56,055 58,0,90 0. Accrued retrospective premiums (Line 5.). Total liabilities excluding protected cell business (Page, Line 6),50,5,899,09,86, ,05,5 6,0,56 90,,08. Losses (Page, Line ) 8,, 5,8,98 80,58,8,69,96 8,,6. Loss adjustment expenses (Page, Line ) 9,8,00 9,95,65 9,9,80 5,8,59,6,06. Unearned premiums (Page, Line 9) 65,6,9 8,8,55 66,5,8 0,59,8 06,0, 5. Capital paid up (Page, Lines 0 & ) 5,000,000 5,000,000 5,000,000 5,000,000 5,000, Surplus as regards policyholders (Page, Line ) 6,506,89,55, 5,50,08 66,8,90,50,956 Cash Flow (Page 5). Net cash from operations (Line ),56,5 8,0,6 (8,8,586) (6,858,) 8,8,5 Risk-Based Capital Analysis 8. Total adjusted capital 5,99,89,55, 5,50,08 66,8,90,50, Authorized control level risk-based capital 6,080,96 9,69,80 8,9,8 5,6,85,9, 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 5) Contract loans (Line 6) 6. Derivatives (Line ). 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. ) 9,50,000 9,50,000 9,50,000 9,50,000. Affiliated common stocks (Schedule D, Summary, Line, Col. ) 66,805,6 5,9, Affiliated short-term investments (subtotals included in Schedule DA Verification, Col. 5, Line 0) 6. Affiliated mortgage loans on real estate. All other affiliated 8. Total of above Lines to 66,805,6 60,69,509 9,50,000 9,50,000 9,50, Total Investment in Parent included in Lines to above 50. Percentage of investments in parent, subsidiaries affiliates to surplus as regards policyholders (Line 8 above divided by Page, Col., Line x 00.0)

37 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY FIVE-YEAR HISTORICAL DATA 06 (Continued) Capital Surplus Accounts (Page ) 5. Net unrealized capital gains (losses) (Line ) 59,86,658,60 8,0 (,) (,95) 5. Dividends to stockholders (Line 5) 5. Change in surplus as regards policyholders for the year (Line 8) 9,99,055,985,655 8,,8 5,08,95,9,08 Gross Losses Paid (Page 9, Part, Cols. & ) 5. Liability lines (Lines.,., 6,.,.,., 8., 8., 9., 9. & 9., 9.),,650 9,8,9 8,,0 5,868,90 9,09,6 55. Property lines (Lines,, 9,, & 6) 95,8,8 58,5,999 5,5,6,869,56,85, 56. Property liability combined lines (Lines,, 5, 8, & ) 9,0,6 0,65,65,50,8,,995 0,8 5. All other lines (Lines 6, 0,,, 5,,, 8, 9, 0 & ) 59,05,5 8,56,069 5,9,56 6,,09 0,55, Nonproportional reinsurance lines (Lines, & ) 59. Total (Line 5) 9,90,8 686,, 90,90,06 0,6,95 0,6, Net Losses Paid (Page 9, Part, Col. ) 60. Liability lines (Lines.,., 6,.,.,., 8., 8., 9., 9. & 9., 9.) 69,85,0,8,,86,9 0,669,059 8,8,0 6. Property lines (Lines,, 9,, & 6),55,8 8,0,08,9,65,55,0,9,8 6. Property liability combined lines (Lines,, 5, 8, & ),,8,05,68,6 6,9 0,8 6. All other lines (Lines 6, 0,,, 5,,, 8, 9, 0 & ) 8,5,5 56,,5,56,06,989,05 8,559,6 6. Nonproportional reinsurance lines (Lines, & ) 65. Total (Line 5) 80,,5 99,856,550 6,8,900 6,60,56 9,60, Operating Percentages (Page ) (Line divided by Page, Line ) x Premiums earned (Line ) Losses incurred (Line ) Loss expenses incurred (Line ) Other underwriting expenses incurred (Line ) Net underwriting gain (loss) (Line 8) (.) Other Percentages. Other underwriting expenses to net premiums written (Page, Lines divided by Page 8, Part B, Col. 6, Line 5 x 00.0) 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 5 divided by Page, Line, Col. x 00.0) One Year Loss Development (000 omitted). Development in estimated losses loss expenses incurred prior to current year (Schedule P - Part - Summary, Line, Col. ) 6,8,6 6,0 88,69 5. Percent of development of losses loss expenses incurred to policyholders surplus of prior year end (Line above divided by Page, Line, Col. x 00.0) Two Year Loss Development (000 omitted) 6. Development in estimated losses loss expenses incurred two years before the current year prior year (Schedule P, Part - Summary, Line, Col. ),566,90,9 8,5. Percent of development of losses loss expenses incurred to reported policyholders surplus of second prior year end (Line 6 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 WESCO INSURANCE COMPANY EXHIBIT OF PREMIUMS AND LOSSES (Statutory Page ) NAIC Group Code 58 BUSINESS IN THE STATE OF Gr Total DURING THE YEAR 06 NAIC Company Code 50 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 6,90,56 6,6,66 6,,,,80,,5 6,,5 980,0,80, 880,0 5,6,9,,88. Allied lines 5,09,56 55,880, 9,8,8,905,0 6,88,,95,99,5,88,0,9,9,90,50,8 95,5. Multiple peril crop. Federal flood.. Private crop.5 Private flood. Farmowners multiple peril. Homeowners multiple peril 5. Commercial multiple peril (non-liability portion) 55,959,9,65,8 8,95,8 6,,5,5,5,,89,6, 5, 58,5,,,56,5 5. Commercial multiple peril (liability portion),00,,9,998 9,88,59,,88 6,06,5,,58 989,58,5,86,6,66 8,00, 8,06 6. Mortgage guaranty 8. Ocean marine 9. Inl marine,6,5,65,9 59,06,5,,098,9,6,,58,69,0 5,6,65,8,89,8 0. Financial guaranty. Medical professional liability. Earthquake 06,58 56, 5,05 0,598 0,600 8,85,55. Group accident health (b) 0,. Credit accident health (group individual) 5,059 5,059,56,90 5. Collectively renewable accident health (b) 5. Non-cancelable accident health(b) 5. Guaranteed renewable accident health(b) 5. Non-renewable for stated reasons only (b) 5.5 Other accident only 5.6 Medicare Title XVIII exempt from state taxes or fees 5. All other accident health (b) 8,6,6,8,55,6 9,00,9 9,90,0,66,8 6,,66 98, 5.8 Federal employees health benefits plan premium (b) 6. Workers' compensation 68,0,00 6,89,95,9,80 9,,55 0,898,69,5,8 609,,0,88,050,,66 6,, 8,8,9,,. Other Liability - occurrence 0,569,68,6,08 8,65,86 6,95,58 6,668,899 86,999,8,50,08 8,86,855 6,869,66 8,,55 5,,00. Other Liability - claims made 9,68, 9,66,9 0,66,0,56,95,580,8,58,,66,905 9,695,56 5,0,60 6,6,806,99,9. Excess workers' compensation 9,8,58 9,,0,5,559,,59,88,89 8,06,86,6,08,906,0,95,68 5,95 8. Products liability,86,85,8,909 8,69,6,85,65,,55 50,600,,56,990 6,5,,9, 6,0, 595, 9. Private passenger auto no-fault (personal injury protection) 9. Other private passenger auto liability 9. Commercial auto no-fault (personal injury protection) 6,8,5 6,5,0,90,99,58,5,69,095 8,6,69 6,58 88,9 86,85,0,65 6,6 9. Other commercial auto liability 80,6,5 8,56,866,8,9 5,,0 5,55,60,5,05 0,88,8 8,9,8,6,6 5,69,0 9,00,9. Private passenger auto physical damage. Commercial auto physical damage,0,988 5,0,55 9,89,,9,6 8,56, 5,06,560,9,88,659,0,08,0 0,69,88,05,69. Aircraft (all perils). Fidelity 05,60 5,9 50,95 8,,8,6,8,0,9 9,8 6,. Surety 8,85,5 9,5,68 5,80,8,9,965,0,,9,958 0,098 86,9,6,50,,0 90,50 6. Burglary theft 58,9 65,89 0,60 69,0 56,65 6,96 0,66 (6,00) 6,908,098 5,68. Boiler machinery 9,98,8,6 9,8 6,86 6,96 0,65,966,6 0,9, 8. Credit,8,9 5,65,96 588,68,05,0 (99,96),,,,98,85 0. Warranty 596,6,00,9,85 985,80,9 5,08,5,6,90 5,008,6 90,88,6,80,60. Aggregate write-ins for other lines of business 5. TOTALS (a),,508,,,6,88,9,80,50,5,666 8,9,6,,69,,58,06,50 05,6,80 8,00,9 69,9,59 98,65,05 65,9,85 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 5 $ (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 WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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. 6 + Payable Receivable Premium Companies Posted Credit ID Number Total - U.S. Non-Pool Total - Other (Non-U.S.) Total - Affiliates American Trucking Transporation Insurance Company RRG MT,6,85, ARI Mutual Insurance Company PA (0,08) Emergency Medicine Professional Assurance Company RRG NV,65,9,9,9, Federal Motor Carriers RRG Inc DE First Colonial Insurance Company FL Great American Insurance Company OH MIC Property Casualty Insurance Corporation MI Motors Insurance Corporation MI National Interstate Insurance Company OH Pinels Insurance Company RRG, Inc. DC,65,65 (,88) A-One Commercial Insurance RRG TN,8 68, Allied Premium Insurance RRG CT 90, American Forest Casualty RRG VT (55) Caterpillar Insurance Company MO 6, Galen Insurance Company MO Liberty First RRG Insurance Company UT National Builders & Contractors Insurance Company NV (55) (55) (86) Physicians Casualty RRG Inc NV () Physicians' Insurance Program Exchange VT () Public Risk Management of Florida (PRM) FL 8,95 (),068,055, Spirit Commercial Auto Risk Retention Group, Inc. NV 6,08,066,90, Texas Political Subdivision Joint Self-Insurance Fund TX West Bend Mutual Insurance Company WI The Protected Insurance Program for Schools & Community Colleges Joint Powers Authority CA,0 (6) 9,0 9,5,86, 8, Majestic Insurance Company CA (50) (50) Urgent MD Risk Retention Group, Inc. VT Doctors Professional Liability Risk Retention Group NC Other U.S. Unaffiliated Insurers Reinsurance for which the total of Column 8 is less than $00, Total Other U.S. Unaffiliated Insurers 6, 5,908,695 9,60,05 50,559,96 8,9 AA National Workers Compensation Reinsurance Pool NY,0 0,8 0, , 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,0 0,8 0, , Big Independent Cities Excess Pool CA,9 5,5, California Affiliated Risk Management Authroities (CARMA) CA, California Fair Services Authority (CFSA) CA California State Association of Communities Excess Insurance Authority CA 8,5 (,60) 8, 5,5, Montana Municipal Interlocal Authority (MMIA) Liability Program MT 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 5,56 (,8),8 0,, Total - Pools Associations 8,96 (,8) 6,68 60,90 980, Industrial Alliance Pacific General Insurance CAN United Risk Solutions, Ltd BMU (,605) 6,55 6,55, Other Non-U.S. Insurers - Reinsurance for which the total of Column 8 is less than $00,000 Amount of Assets Pledged or Collateral Held in Trust

40 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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. 6 + Payable Receivable Premium Companies Posted Credit ID Number Total Other Non-U.S. Insurers (,605) 6,55 6,55, Totals 5,66 0,85 6,86 8,08 6,9 8,9,96 8,9 Amount of Assets Pledged or Collateral Held in Trust 0.

41 ID Number NAIC Company Code ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Premium Portfolio Reinsurance Effected or (Canceled) during Current Year Name of Company Date of Contract 5 Original Premium 6 Reinsurance Premium NONE

42 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number Technology Insurance Company NH,06 0,00,680 08,,6 68,8 665,50 665,50 6, Total Authorized - Affiliates - U.S. Non-Pool - Other,06 0,00,680 08,,6 68,8 665,50 665,50 6, Total Authorized - Affiliates - U.S. Non-Pool,06 0,00,680 08,,6 68,8 665,50 665,50 6, Total Authorized - Affiliates - Other (Non-U.S.) Total Authorized - Affiliates,06 0,00,680 08,,6 68,8 665,50 665,50 6, Allied World Insurance Company NH (6) American Agricultural Insurance Co IN (,66), American Trucking Transportation Insurance Company MT Arch Reinsurance Company DE 0 0 (,6), Aspen America Insurance Company TX 5 (5) AXIS Reinsurance Company NY () Berkley Insurance Company DE (55) () Canopius US Insurance Inc. DE 5,980,00,00, Clarendon National Insurance Company IL (0) Endurance Reinsurance Company of Amerixca DE 58,0 69 5, (), Everest Reinsurance Company DE,8 (6,6) 6, General Reinsurance Corp DE,6,08,895 90, (,0), Houston Casualty Company TX 8 0 (8) Liberty Mutual Insurance Company MA Maiden Reinsurance North America In. MO () Motors Insurance Corporation MI 5,, 6,0 0,80 (,5), Munich Reinsurance America, Inc. DE 0 (6) National Health Insurance Company TX (99) (99) (99) National Union Fire Insurance Company of Pittsburgh PA,08 6 () Odyssey America Reinsurance Corporation CT,9 () 5 9 (558) Partner Reinsurance Co of the U.S. NY,505, 56,580 0, ,606,969, QBE Reinsurance Corporation PA 95 (69) Renaissance Reinsurance US Inc. MD 6 (6) Safety National Casualty Corp MO 56 (,05) 5,0 90,, SCOR Reinsurance Company DE (599) SeaBright Insurance Company TX Swiss Re America Corporation NY 6,58 (85) 96,0,60,89 (99),8 The Harford Steam Boiler Inspection Insurance Company CT ,5,865, Toa Reinsurance Co of America DE , 80 69,055 8, Transatlantic Reinsurance Company NY Workers Compensation Reinsurance Association MN 8,80 (,80) XL Re America NY ,0,66, Total Authorized - Other U.S. Unaffiliated Insurers (Under $00,000) Total Authorized - Other U.S. Unaffiliated Insurers 5,0 (85) 888 9,5 0,,00, 9,56,8 8, Total Authorized - Pools - Matory Pools AA Aspen Insurance UK Ltd GBR 6 09 (95),06 AA Hannover Rueck SE DEU,89 (,8),5,99 595,9, AA Lloyds of London GBR 9,009 (,009) AA Lloyds Syndicate 50 GBR () AA Lloyds Syndicate Acapellia 0 GBR 60 (56) 6 AA Lloyds Syndicate Advent 80 GBR (5) AA Lloyds Syndicate Amlin 00 GBR,,08,0 9,5,0 AA Lloyds Syndicate Argo 00 GBR () AA Lloyds Syndicate Ascot GBR 5,0 () 5 6,0,85 6,999 (8), AA Lloyds Syndicate Asta 90 GBR,0 () AA Lloyds Syndicate Atrium 609 GBR 6 0 (50) 8 Funds Held By Company Under Reinsurance Treaties

43 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number AA Lloyds Syndicate Barbicon 955 GBR 5 5 () 5 AA Lloyds Syndicate Beazley 6 / 6 GBR () AA Lloyds Syndicate Brit 98 GBR (9) 55 AA Lloyds Syndicate Canopius GBR (5) 599 AA Lloyds Syndicate Canopius 958 GBR (8) 0 AA Lloyds Syndicate Cathedral 00 GBR () AA Lloyds Syndicate Catlin 00 GBR,558 (,55) AA Lloyds Syndicate Catlin 00 GBR AA Lloyds Syndicate Chaucer 08 GBR (9), AA Lloyds Syndicate Chaucer 096 GBR AA Lloyds Syndicate Faraday 5 GBR (09) 9 AA Lloyds Syndicate Grant 99 GBR AA Lloyds Syndicate Hardy 8 GBR (8) 8 AA Lloyds Syndicate JAGO 05 GBR AA Lloyds Syndicate JEM GBR AA Lloyds Syndicate Liberty GBR 5 8 (6) 80 AA Lloyds Syndicate MAP 9 GBR 9 (9) AA Lloyds Syndicate Markel 000 GBR 6 AA Lloyds Syndicate Meacock GBR () (8) 8 AA Lloyds Syndicate MJH 000 GBR AA Lloyds Syndicate Novae 00 GBR 9 (9) AA Lloyds Syndicate Pembroke 000 GBR AA Lloyds Syndicate QBE GBR AA Lloyds Syndicate QBE 566 GBR () 65 AA Lloyd's Syndicate Ren Re 58 GBR 6 (8,0) 8,0 AA Lloyds Syndicate ROS GBR AA Lloyds Syndicate SVB 00 GBR AA Lloyds Syndicate Tokio 50 GBR,9,8 6,5, 6,6,9 AA Lloyds Syndicate Tokio 55 GBR AA MAPFRE RE, Compania de Reaseguros, S.A ESP AA Montpelier Reinsurance Limited BMU () AA Munich Reinsurance Company DEU (5) (0) AA Partner Reinsurance Co Ltd. BMU () AA W.R. Berkley Insurance (Europe) Limited LIRMA (B9009) GBR Total Authorized - Other Non-U.S. Insurers (Under $00,000) Total Authorized - Other Non-U.S. Insurers,56 (950) 0,5 9,98 0 0,5,8 (,9) 5, Total Authorized 500,80 (,80),8 5,909,0 50,0,8 5,6 9,50 0 9,99 6, Total Unauthorized - Affiliates - U.S. Intercompany Pooling Total Unauthorized - Affiliates - U.S. Non-Pool Agent Alliance Reinsurance Company Ltd. BMU, ,5,85 50 AA AmTrust at Lloyds Limited, Syndicate 06 GBR,6,5,5,5 5,89 AA AmTrust International Insurance Co. BMU,086,0 () 0,590 5,00 65, 9,69 5,6,9,69 (0),9,8 5,99 AA AmTrust International Underwriters Insurance Company IRL () (6) Total Unauthorized - Affiliates - Other (Non-U.S.) - Other,0,88 80,90 5,0 66,5 9,69 68,08,99,58,68,99,880, Total Unauthorized - Affiliates - Other (Non-U.S.),0,88 80,90 5,0 66,5 9,69 68,08,99,58,68,99,880, Total Unauthorized - Affiliates,0,88 80,90 5,0 66,5 9,69 68,08,99,58,68,99,880, A-One Commercial Insurance Riks Retention Group Inc. TN Express Performance, Ltd. CA 9, ,89,,5, EZA Reinsurance KS 0 (0) Food Service Risk Management Inc SC,58 (9) 8 8,58 09,059, Geminus Reinsurance Co. DE, ,59,9,8 6, MOX Reinsurance KS 0 (0) Funds Held By Company Under Reinsurance Treaties

44 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number MZP Reinsurance KS 0 (0) North 5 Insurance, Inc. HI, 8 8,9,,, -809 PrimeOne Insurance Co MI (,) 0 9 () (68) (6) Sportsman's Insurance Company VT, ,566,599,56 6, US Legal Services, Inc. FL, (9) Utah Business Insurance Company UT, ,5,0 6, ZYX Reinsurance KS 0 (0) Total Unauthorized - Other U.S. Unaffiliated Insurers (Under $00,000) Total Unauthorized - Other U.S. Unaffiliated Insurers 9, ,6 56 5, ,8,08 6,88 0, Total Unauthorized - Pools - Matory Pools AA Blue Ridge Reinsurance, Ltd. TCA AA JM Group Reinsurance, Ltd. TCA AA KRS Whitaker Reinsurance, Ltd. TCA AA Lehmer's Reinsurance, Ltd. TCA AA Lemich Reinsurance, Ltd. TCA AA Low Country Reinsurance, Ltd. TCA AA Thompson & Ortiz Reinsurance, Ltd. TCA AA Thompsons Custome ESP Reinsurance, Ltd. TCA AA A & P Reinsurance, Ltd. BMU AA Academy Reinsurance, Limited. TCA () 9 5 AA ACE Tempest Reinsurance Ltd BMU 86 6 (6) AA Agency Program Insurance Company (SAC) BMU AA AJD Reinsurance Inc. TCA () AA Amlin AG CHE ,9,8 AA AMLIN BERMUDA LTD BMU () AA APA III Reinsurance TCA (90) AA Appalachian Reinsurance (Bermuda) Ltd. BMU, 9 9 6,69 685,0,5,8 AA Arch Reinsurance Underwriting Europe IRL (06) 06 AA ARIA (SAC) Ltd. BMU,9, ,,585,58, AA Ariel Reinsurance Company Ltd BMU AA ASIA Capital Reinsurance Group Pte Limited SGP,00,6 (,6) AA Aspen Bermuda Ltd. BMU (,5),5 AA Associated Dealers Reinsurance Co., Ltd. TCA,80 9,88,5 80,6 AA Atlantic Gateway International LTD BMU 9,005,50 5 6,85 5 6,5 () 8,9 5,0 5,88 9,5 AA AutoXcel Reinsurance Ltd. TCA,89 8,8,5,0, AA AXIS SPECIALTY LTD BMU (6) AA Babette's Reinsurance Ltd. TCA AA Bar Don Reinsurance, Ltd. BMU AA BARBERA AUTOLAND REINSURANCE LTD. TCA (00) AA BDM Reinsurance Ltd TCA AA BEAL HALL FINANCIAL REINSURANCE LTD TCA AA Biggs Family Reinsurance, Ltd. BMU AA Blue Heron Reinsurance, Ltd. TCA () 9 5 AA Bluewater Reinsurance, Ltd. BMU AA Boardtracker Re TCA AA Bowtie Reinsurance, Ltd. BMU Brisk Insurance Company, Ltd. BMU,9 8 8,098 0,6 8,586 AA Brookmont Capital Reinsurance BMU AA Carma Reinsurance Ltd. TCA AA Castilone United Reinsurance Ltd TCA AA Catlin Ins Co Ltd BMU () AA China Reinsurance (Group) Corporation CHN 9 (58) 58 Funds Held By Company Under Reinsurance Treaties

45 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number AA CLASSIC DENTON GMPP REINSURANCE LTD TCA AA Clinch Mountain TCA,68 5,0,650,8 AA Cmfr Reinsurance Trust TCA (8) 9 AA Consumer Protection Processing Reinsurance, Ltd. TCA (8) AA CornerStone Re CYM 5,88,06 5,6 9,98,59,95 AA Cranbrook IV Reinsurance Ltd. CYM ,,59 6,96 AA Cranbrook Reinsurance Company BMU () AA Cuda Reinsurance Ltd. TCA () AA Cycle Protection Reinsurance CYM AA D'AMBROSIO REINSURANCE LTD. TCA 506,56, 59,55 AA Davinci Reinsurance Ltd BMU 59 (59) AA Davis Calvert Reinsurance, Ltd. BMU 6 5,66,5,9 AA De Lage Len Re Limited (Dublin, Irel) IRL 5,88, ,0 8,58,5,56 AA EDS Warrchest Reinsurance, Ltd. TCA 6,0, ,80 5,5,659,59 AA EHN Reinsurance Ltd TCA, 0 0,0,80,966 AA Entire Car Protection Reinsurance, Ltd. TCA,86,96,960,6,9 AA Equity Track Reinsurance AIA () AA Eric C Gerhardt Reinsurance TCA (8) 9 AA Fab Retirement Reinsurace Ltd. TCA () AA Factory Reinsurance, Ltd. BMU ,56,08 9,6 AA Farner Reinsurance Company Ltd. TCA,0 (9) 8 6 (5),00 AA Fidelis Insurance Bermuda Ltd. BMU (9) 9 AA First Innovations TCA AA Fortius Re Ltd BMU (9) AA Freedom Insurance Co. Ltd. TCA,00 8,99,0 5, AA Furniture Assurance Svcs., Re., Ltd. BMU ,,50 8,8 AA General Insurance Company of India IND 96 (,008),008 AA Gettysburg National Indemnity Ltd BMU AA Golden Dome Reinsurance, Ltd. TCA 8 98 AA Govero Reinsurance TCA (8) 9 AA Gulf Coast Reinsurance Ltd. TCA (6) () 9 AA Hadwin Reinsurance, Ltd. TCA AA Hannover Re (Bermuda) Ltd. BMU,06 0 0,96 (,6) Hardin Indemnity Ltd. II BMU AA HFRC Reinsurance, Ltd. BMU AA Howell Furniture TCA IAT Reinsurance Co Ltd BMU (8) () IPPA Insurance Company Ltd. BMU, , 8, IRC Re, Ltd BMU AA Ironshore Insurance Ltd. BMU AA J&S Reinsurance Company TCA 8 () AA Jakens Reinsurance Ltd. TCA AA James Wood Denton reinsruance Company TCA 8 () AA JAX Reinsurance, Ltd. TCA (6) AA JOHN JOHNSON AUTO GROUP REINSURANCE LTD TCA AA JP MB Reinsurance TCA () () () AA JP Reinsurance TCA () () () AA JPGPB Reinsurance, Ltd. TCA () AA JPH REINSURANCE LTD TCA AA JS JP Reinsurance TCA () () () AA JS MB Reinsurance TCA () () () AA JS Reinsurance TCA () () () AA JS Reinsurance Ltd. TCA 8 Funds Held By Company Under Reinsurance Treaties

46 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number AA JSR Group Reinsurance Ltd. TCA 5 9 AA Juniper Reinsuranc Ltd. TCA 5 () AA JYM Reinsurance, Ltd. TCA () () AA KB Reinsurance Ltd TCA () AA King Family Reins Co Ltd TCA AA Korean Reinsurance Company KOR 09 (99) 99 AA Lancashire Insurance Company (UK) Limited GBR AA Lancashire Insurance Company, Ltd. BMU 5 () AA LAREDO REINSURANCE LTD TCA AA LA-Z-Boy Furniture TCA AA LIBCHEVY LC REINSURANCE LTD TCA AA Linden II Reinsurance TCA 655 () () AA Lloyds - Other Unauthorized GBR (6) 5 5 AA LSP Reinsurance Ltd. BMU 5 5 AA M&J Reinsurance Ltd TCA AA Maiden Reinsurance Ltd. BMU 8 () AA Mamear Reinsurance Ltd TCA AA Markel Bermuda Limited BMU 0 (0) AA Marsh Financial Reinsurance Ltd. TCA AA MAYFIELD REINSURANCE TCA AA MB Reinsurance BMU () () () AA McDeck Reinsurance Ltd. TCA Member Insurance Limited BMU 66 () 68 90, 6,95 AA MMCG Ins. Protected Cell Series BMU AA MS Frontier Reinsurance Ltd BMU 50 (9) 9 AA Mulberry Street Reinsurance Ltd. TCA,6 8,06, National Insurance Alliance Ltd CYM (6) AA Nimincht Protection Reinsurance Ltd. TCA AA NJ Car Insurance Company, Ltd. BMU (5) AA North Point Reinsurance Limited TCA AA North Shoreline Reinsurance Ltd. BMU ,,59 6,96 AA North Shoreline Reinsurance Ltd. II TCA 655 () () AA North Star Reinsurance Ltd. BMU AA Nothstar Insurance, Inc. BMU Nursing Home Risk Indemnity Ltd BMU 6 85,96,885 8,5 AA OUTTEN REINSURANCE COMPANY LTD TCA 6 AA Outten Reinsurance, Ltd. BMU AA PacRe Ltd. BMU 6 (6) AA Parden Reinsurance Limited TCA (5) PEO Funding Group CYM 6, ,66,9 6 9,08,85 5,698 AA Perma Plate Reinurance Company I TCA,998,50 08,5 5,6,98 6 AA Perma Plate Reinurance Company II TCA,998,50 08,5 5,6,98 6 AA Perma Plate Reinurance Company III TCA,998,50 08,5 5,6,98 6 AA Perma Plate Reinurance Company IV TCA,998,50 08,5 5,6,98 6 AA Perma Plate Reinurance Company V TCA,998,50 08,5 5,6,98 6 AA Perma Plate Reinurance Company VI TCA,998,50 08,5 5,6,98 6 AA Perma Plate Reinurance Company, Ltd. TCA,8,500,590 6,0,56, AA Pessada Reinsurance Company TCA, 8 5,5,88 6, AA Preferrred Nationwide Reinsurance Company, Ltd. TCA 6,08,08,0 5,59 8,65,68 5,99 AA Procyon Insurance, Inc. BMU AA Qatar General Insurance reinsurance Comp QAT 6 (05) 05 AA QUIGLEY 9 PARTNERS REINSURANCE LTD TCA AA R.K. Reinsurance Ltd. TCA Funds Held By Company Under Reinsurance Treaties

47 .5 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number AA RBH Reinsurance, Ltd. BMU, 0 8 5,6 6,0 5,9 AA Regency Reinsurance Ltd. BMU AA Renaissance Reinsurance Ltd BMU, (,65),65 AA Road Master, Ltd. (Bermuda) BMU,656,05 5,,60,8 (56) AA ROBJAKETC REINSURANCE LTD TCA AA RV's U Reinsurance Company CYM () AA Sailfish Midwest Reinsurance Limited TCA AA Salerno-Duane Group Reinsuramce Ltd. TCA AA Santenay Reinsurance Company Ltd. TCA AA SCOR Global P&C SE FRA 55 (88) 88 AA SD-MCD Group Reinsurance TCA AA Selects Reinsurance Ltd. TCA 8 () AA Seminole Insurance, Inc. BMU AA SFTF Reinsurance, Ltd. TCA AA Sheets Ventures Reinsurance Ltd. TCA 9 9 () AA Sidewinder Reinsurance, Ltd. TCA 0 59 AA Sliman's Reinsurance Company Inc. TCA AA Sompo Japan Nipponkoa Insurance Inc. JPN 9 6 (6) AA South County CDJR Reinsurance Ltd. TCA AA Southern Beholdings Reinsurnce Ltd. TCA AA Southstar Insurance, Inc. BMU AA Southwest Colonial Re., Ltd. TCA,0,09 5 8,8 0,666,8 9,8 AA SPELLMATT REINSURANCE LTD TCA 99,0, 68 8 AA Spencer Insurance Company BMU (6) 9,,9,909 AA STRONGDRIVE REINSURANCE LTD TCA AA Symi Insurance Ltd. TCA (,95) AA Taiping Reinsurance Company Ltd. HKG (5) AA The Stuart Insurance Group Ltd. BMU 55 (9) 0,6 98, (96),8 AA Thornapple Reinsurance, Ltd. TCA () 9 5 AA TINMAN REINSURANCE LTD TCA 8 8,00, AA Topanga Reinsurance, Ltd. TCA AA Torus Insurance (Bermuda) Limited BMU () (5) AA TRG Reinsurance, Ltd. TCA () AA TRICOR - Capital BMU 5 5 AA TRICOR - Capital Chevrolet Inc. BMU 8 AA TRICOR - Gollings BMU AA TRICOR - Suburban Group BMU,5,0, AA TRICOR - Tyson's Corner BMU,8,0, AA Tricor Reinsurance Company Ltd. BMU,866 (0) 8,6,60 8,69 AA Turnkey Reins. Co., Ltd. TCA () 595 AA Tuscan Reinsurance Company, Ltd. TCA 0 5,5,80 8, Unicorn Insurance Benefits Services, Inc CYM () () 6 AA Validus Reinsurance Ltd BMU (50) 9 (5) AA Vantage National Reinsurance Company, Ltd TCA 5,,08 566,68 9,,08 8, AA Wade & Alan Reinsurance TCA 0 9 9,,5 5, AA WALLY ARMOUR CDJ REINSURANCE LTD TCA () AA WATSON INVESTMENTS REINSURANCE LTD TCA AA Wesco Kingdom Reins Co Ltd BMU AA Wise Reinsurance Limited TCA AA WK Reinsurance Ltd. TCA () AA Wyndham Insurance Company Ltd BMU 8,8 86,0,09 08,8,65,55,90 AA XL Bermuda Ltd BMU,6 () AA ZAPCO REINSURANCE LTD TCA Funds Held By Company Under Reinsurance Treaties

48 .6 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number AA H Auto Reinsurance, Ltd. TCA 9 8 AA SOLUTIONS REINSURANCE, LTD. TCA 5 () AA AAA CFC Reinsurance TCA () AA Ackerman Reinsurance TCA AA ADAW Reinsurance, Ltd. TCA ,0,8 (9) AA Alvarez Investment Reinsurance TCA () AA Alvarez Lewis Reinsurance, Ltd. TCA () AA AMA Taylor Reinsurance, Ltd. TCA AA Anjolee Automotive Reinsurance TCA AA Apple Reinsurance, Ltd. TCA AA ASJ Reinsurance, Ltd. TCA () AA AJSN REINSURANCE COMPANY, LTD. TCA 6 85 AA Associated Dealer Reinsurance Company, Ltd. TCA (5) AA ATI Reinsurance, Ltd. TCA 0 (0) AA Atkinson Reinsurance II TCA (96) () 86 (5) 6 AA Auto Block Reinsurance, Ltd TCA AA B Canales Reinsurance, Ltd. TCA AA Ballyhoo Investments Reinsurance, Ltd TCA AA Bella Enterprise Reinsurance Company, Ltd. TCA AA BENEFICIAL REINSURANCE, LTD. TCA () AA Ben Boyd Reinsurance, Ltd TCA (0) 5 () 5 () AA Big Red Reinsurance, Ltd. TCA () () AA BITTERROOT REINSURANCE, LTD. TCA 5 5 AA Bobby Ford Reinsurance Two, Ltd. TCA AA Bobby Ford Reinsurance, Ltd. TCA (5) (6) () () AA BRH Reinsurance, Ltd. TCA ,88, 80,5 AA Camano Reinsurance, Ltd. TCA 85 9,05,9 0,690 AA CAPFAM REINSURANCE, LTD. TCA AA Cardinal Assurance Corp Reinsurance TCA (8) () AA Carsafe Reinsurance TCA (6) () 9 (5) 6 AA Chaves Reynosa Reinsurance Ltd. TCA () () AA Checkmate Reinsurance TCA,6 0,0, 9,095 AA CMGN Reinsurance, Ltd. TCA 5,,, AA CMT Automotive Reinsurance Corp (Norco) TCA () AA Coachman IV Reinsurance, Ltd TCA (56) AA Coachman V Reinsurance, Ltd. TCA 8,65,68,66 AA COACHMAN VI REINSURANCE, LTD. TCA AA Credit Acceptance TCA (86) 6 (9) 5 9 () AA Danart Reinsurance Company, Inc. TCA AA SSS VSC TCA (9) (8) 66 AA Stone TCA (9) () 668 AA Dealernet VSC TCA (9) (68) 0 AA SAS TCA (9) (8) 66 AA Dealers National Auto Warranty TCA () AA Del Gre Reinsurance, Ltd. TCA (59) (68) 80 AA SDG Re, Ltd. TCA (6) (8) 86 AA KDG Re, Ltd. TCA (6) (8) 86 AA DEL SILVER REINSURANCE, LTD. TCA 9 AA DGSS Reinsurance, Ltd. TCA AA Dickson Investments Reinsurance, Ltd. TCA 560,6,665 69,596 AA DJAJ Reinsurance Ltd TCA () () AA DRK Reinsurance, Ltd. TCA (9) 6 5,60,, AA Dunning & Dunning Reinsurance, Ltd.. TCA Funds Held By Company Under Reinsurance Treaties

49 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number AA EAS REINSURANCE, LTD. TCA () AA ELR Reinsurance, Ltd. TCA , AA ENZO PAULINO REINSURANCE, LTD. TCA 0 0 () AA Escamilla Enterprise Reinsurance, Ltd. TCA () 5 9 () 8 AA Eusay Trust Reinsurance, Ltd. TCA () AA EveryCarListed Reinsurance TCA AA F & I Solutions Reinsurance, Ltd. TCA 00 5,, 0,68 AA First Guard Reinsurance II TCA (5) () () 8 () AA First Guard Reinsurance III TCA (8) () () 5 (9) AA LAB Reinsurance TCA (8) () () 5 (5) 0 AA First Euro Group Reinsurance, Ltd. TCA AA Five Cents Reinsurance, Inc. TCA AA FMMW Reinsurance, Ltd. TCA () 6 6 () AA Fredy Kia Reinsurance. Ltd TCA 0 () 6 68 () 6 AA Goldthwaite Reinsurance, Ltd. TCA 6 5 AA GRALAN Reinsurance, Ltd. TCA AA Gresham, Hall & Taber Reinsurance, Ltd. TCA AA Griffin Reinsurance TCA 699,98,99,906 AA GTP Reinsurance, Ltd. TCA () AA Hanna Belle Reinsurance, Ltd TCA () AA Hidden Meadows Reinsurance Company, Inc TCA AA Hip National Reinsurance TCA () AA Howmar Reinsurance, Ltd TCA (9) 5 0 (5) 5 AA Ibarra Brito Reinsurance, Ltd. TCA 00,00, AA IGS Reinsurance, Ltd TCA (8) 6 AA J & S REINSURANCE, INC. TCA AA JACANTU Financial Reinsurance, Ltd. TCA AA Java Auto Reinsurance, Ltd. TCA (6) 0 () 6 9 () AA Jhobar Holdings Reinsurance, Ltd. TCA () () AA JJG Reinsurance (Big Apple VW) TCA () () AA JPJ Reinsurance, Ltd. TCA 6 (),5,50 05,05 AA JWMJR Reinsurance, Ltd. TCA AA KarBiz Reinsurance, Ltd. TCA 50 () AA KBD Reinsurance, Ltd. TCA,50,89, 5,8 AA KGSIX REINSURANCE, LTD. TCA () AA KKM Reinsurance, Ltd. TCA , AA Kirste Motor Reinsurance, Ltd. TCA (5) AA Koehn Reinsurance, Ltd. TCA 90 (0) AA Koehn II Reinsurance, Ltd. TCA 90 (0) AA Kunes Family Reinsurance, Ltd. TCA 96 (),80,96,669 AA TASTES GREAT TCA (6) AA LESS FILLING TCA (6) AA Lakel Auto 0 Reinsurance, Ltd. TCA () () AA Lakeside Auto Group Reinsurance, Ltd. TCA 9 (6) AA Lassen And Doran Reinsurance Company, Ltd. TCA 6 6 AA LITTLES REINSURANCE, LTD. TCA 0 (9) AA M & J REINSURANCE, LTD. TCA () AA MAFA Reinsurance, Ltd TCA ,09,,0 AA MAFA Reinsurance, Ltd TCA 0 5,65,0 5,65 AA MAFA Reinsurance, Ltd. TCA 5 9 9,80,8,6 AA MAFA REINSURANCE, LTD TCA () AA MAMEAR Reinsurance, Ltd. TCA AA MAPAM 0 Reinsurance, Ltd. TCA () () Funds Held By Company Under Reinsurance Treaties

50 .8 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number AA MARKETPLACE REINSURANCE, LTD. TCA AA Marquez Capital Reinsurance, Ltd. TCA () AA Masters Reinsurance TCA () AA MBSC, Reinsurance, Ltd. TCA () AA ME & O REINSURANCE, LTD. TCA,0 (),050, AA Mel Grata Reinsurance, Ltd TCA 5 (6) AA MH Investments Reinsurance, Ltd. TCA AA Mike Shannon Reinsurance, Ltd. TCA AA Miracle Reinsurance, Ltd. TCA () () () 5 AA Mississippi Reinsurance TCA AA MLE Reinsurance, Ltd. TCA, 5 9,56,9 (),8 AA Mungenast Reinsurance TCA (6) 9 5 () 9 AA MUSKIES REINSURANCE, LTD. TCA 96 (5) AA Nanco Reinsurance, Ltd. TCA AA NR Reinsurance, Ltd. TCA () () AA PACIFIC PERFOMANCE HOLDINGS, LTD. TCA AA Papa Gallo All Star Reins, Ltd. TCA AA Patrick Fam Reinsurance, Ltd. TCA 5 0,50,95 9,6 AA Polaris Reinsurance TCA () AA Principal Warranty Corp Reinsurance TCA () 65 6 (56) AA PMH 006 Reinsurance, Ltd. TCA AA PTT 006 Reinsurance, Ltd. TCA AA Ramaz Reinsurance, Ltd. TCA AA Ransco II Reinsurance, Ltd. TCA 0 () AA Red Swan Reinsurance, Ltd. TCA ,09,6 95,968 AA Redex Care Reinsurance Company TCA () 5 () AA Reid Investments Reinsurance TCA 5 58 AA REP Reinsurance, Ltd. TCA 5 6 8,0,,090 AA RJM Reinsurance, Ltd. TCA , AA RKR REINSURANCE, LTD. TCA () AA Route 66 Reinsurance TCA () AA RPA Reinsurance, Ltd. TCA 9 5,00, AA RPT Reinsurance (Dealer Group Reinsurance) TCA () 5 () 65 AA Rt 6 Reinsurance, Ltd. TCA () AA SAE Group Reinsurance, Ltd. TCA 50 0,0,69 5,6 AA SAE Reinsurance Two, Ltd. TCA 0 5,0,80,0 AA Sam & E Reinsurance, Ltd. TCA AA SANTENAY REINSURANCE, LTD. TCA () AA Schmit Bros Family Trust Reinsurance, Ltd TCA AA Sea Breeze Reinsurance TCA (5) () AA Shepherd Reinsurance TCA 6 8 6,,50 5,56 AA Sidewinder Reinsurance, Ltd. TCA AA Silverback Reinsurance, Ltd. TCA () AA Sinno Reinsurance TCA AA Sinno Two Reinsurance, Ltd.. TCA AA Smart Choice Reinsurance, Ltd. TCA AA Southern Plantation Reinsurance, Ltd. TCA () AA Southern Reinsurance, Ltd. TCA 6 6,69,6 5,8 AA Speedway Investments Reinsurance, Ltd TCA 88 () AA Spoerl Reinsurance, Ltd. TCA AA STLR Nation Reinsurance Co TCA AA Sumar Reinsurance, Ltd. TCA (0) AA TAG Reinsurance, Ltd. TCA Funds Held By Company Under Reinsurance Treaties

51 .9 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number AA Tami S. & Barney A. Lewis Reinsurance, Ltd. TCA AA Tantillo Reinsurance Holdings Company, Ltd. TCA (80),00,6 (),68 AA Taylor Ridge Management Reinsurance, Ltd. TCA 0 56 AA Bill Hodges WH REINS TCA () AA BULL VALLEY REINSURANCE, LTD. TCA (5) AA Mazda reinsurance TCA () AA Momentum Reinsurance TCA ,009 (8) AA Southern Chrysler TCA () AA TCM Reinsurance, Ltd. TCA AA Texas Sunset Reins., Ltd TCA (9) 5 () AA Sunrise TCA () () AA Siesta Reinsurance TCA () 0 () AA Thompson Dahl Reinsurance, Ltd. TCA 9 () 55 AA Thornapple Reinsurance, Ltd. TCA (6) 5 (6) AA Thrift Auto Reinsurance, Ltd. TCA () AA T Reinsurance, Ltd. TCA 0 (0) AA Tri State Reinsurance TCA AA TriCor Suburban Group Reins TCA AA Twenty Seven K Reinsurance, Ltd. TCA AA TUSCAN REINSURANCE, LTD. TCA () AA USAFA Reinsurance TCA 6 6,6,59 6,5 AA STROS Reinsurance, Ltd. TCA (00) () AA Vargas Reinsuracne, Ltd. TCA 6 AA W F O'DELL MO Reinsurance TCA () () AA Why Not Reinsurance, Ltd. TCA 6 5,6,,80 AA Wit II Reinsurance TCA (9) (0) 98 AA WMRF Reinsruance, Ltd. TCA 8 (5) AA WOAPO Reinsurance, Ltd. TCA () 6 (6) AA WTN Reinsurance, Ltd. TCA AA Yankees Reinsurance TCA ,06,00 AA EME Reins, Ltd. TCA AA Yochim Reinsurance, Ltd. TCA,065 8,56,596 9,50 AA Zaerich Reinsurance TCA () AA Zapco Reinsurance, Ltd. TCA Total Unauthorized - Other Non-U.S. Insurers (Under $00,000) Total Unauthorized - Other Non-U.S. Insurers 8,5 5, , ,69,969 6,0 0,06,966 98, Total Unauthorized,8,0 59,5 58, 5,8 668,65 96,8,,066,80,88 50,96,0,, 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 AA Allied World Assurance Company BMU (8) AA Endurance Specialty Insurance Ltd. BMU (8) AA Everest Reinsurance Bermuda Ltd. BMU, AA TOKIO MILLENNIUM Re AG BMU (58) Total Certified - Other Non-U.S. Insurers (Under $00,000) Total Certified - Other Non-U.S. Insurers, (69) Total Certified, (69) Total Authorized, Unauthorized Certified,880,9 5,68,869 6,,56 99,055 9,,69,6,60,869 50,5,0,8 585,06 Funds Held By Company Under Reinsurance Treaties

52 .0 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART Reinsurance as of December, Current Year (000 OMITTED) 5 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- thru Balances Due to Cols. 5 - Code Name of Reinsurer Jurisdiction Code Losses Paid LAE Reserves Reserves Reserves Reserves Premiums sions Totals Payable Reinsurers [6 + ] ID Number Total Protected Cells Totals,880,9 5,68,869 6,,56 99,055 9,,69,6,60,869 50,5,0,8 585,06 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 $50,000: Name of Reinsurer Commission Rate Premium B. Report the five largest reinsurance recoverables reported in Column 5, due from any one reinsurer (based on the total recoverables, Line , Column 5), the amount of ceded premium, indicate whether the recoverables are due from an affiliated insurer. Name of Reinsurer Total Recoverables Premiums Affiliated. AmTrust International Insurance Co.,9,69,086,0 Yes [ X ] No [ ]. Technology Insurance Company 665,50,06 Yes [ X ] No [ ]. Corner Store Re 9,98 5,88 Yes [ ] No [ X ]. ARIA (SAC) Ltd.,585,9 Yes [ ] No [ X ] 5. Southwest Colonial Re., Ltd. 0,666,0 Yes [ ] No [ X ] Funds Held By Company Under Reinsurance Treaties

53 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 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 Berkley Insurance Company DE (55) (55) National Health Insurance Company TX (99) (99) Odyssey America Reinsurance Corporation CT Partner Reinsurance Co of the U.S. NY,, Safety National Casualty Corp MO (,05) (,05) Swiss Re America Corporation NY The Harford Steam Boiler Inspection Insurance Company CT Toa Reinsurance Co of America DE Transatlantic Reinsurance Company NY XL Re America NY Total Authorized - Other U.S. Unaffiliated Insurers 5 5 AA Hannover Rueck SE DEU (,8) (,8) AA Lloyds Syndicate Ascot GBR AA Lloyds Syndicate Brit 98 GBR 5 5 AA Lloyds Syndicate Canopius GBR AA Lloyds Syndicate Catlin 00 GBR AA Lloyd's Syndicate Ren Re 58 GBR Total Authorized - Other Non-U.S. Insurers (0) (0) Total Authorized (65) (65) Total Unauthorized - Affiliates - U.S. Non-Pool Agent Alliance Reinsurance Company Ltd. BMU AA AmTrust International Insurance Co. BMU () () Total Unauthorized - Affiliates - Other (Non-U.S.) - Other Total Unauthorized - Affiliates - Other (Non-U.S.) Total Unauthorized - Affiliates Express Performance, Ltd. CA EZA Reinsurance KS Food Service Risk Management Inc SC (85) (85) Geminus Reinsurance Co. DE MOX Reinsurance KS MZP Reinsurance KS North 5 Insurance, Inc. HI PrimeOne Insurance Co MI (,0) (,0) Sportsman's Insurance Company VT US Legal Services, Inc. FL ZYX Reinsurance KS Total Unauthorized - Other U.S. Unaffiliated Insurers AA Blue Ridge Reinsurance, Ltd. TCA JM Group Reinsurance, Ltd. TCA AA KRS Whitaker Reinsurance, Ltd. TCA AA Lehmer's Reinsurance, Ltd. TCA 5 5 AA Lemich Reinsurance, Ltd. TCA AA Low Country Reinsurance, Ltd. TCA AA Thompson & Ortiz Reinsurance, Ltd. TCA AA Thompsons Custome ESP Reinsurance, Ltd. TCA AA A & P Reinsurance, Ltd. BMU AA Academy Reinsurance, Limited. TCA () () AA Agency Program Insurance Company (SAC) BMU AJD Reinsurance Inc. TCA 0 0 AA APA III Reinsurance TCA AA Appalachian Reinsurance (Bermuda) Ltd. BMU 9 9 Percentage Overdue Col. 0/Col. Percentage More Than 0 Days Overdue Col. 9/Col.

54 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 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 AA ARIA (SAC) Ltd. BMU,0,0 AA Associated Dealers Reinsurance Co., Ltd. TCA AA Atlantic Gateway International LTD BMU, , AutoXcel Reinsurance Ltd. TCA Babette's Reinsurance Ltd. TCA AA Bar Don Reinsurance, Ltd. BMU 8 8 AA BARBERA AUTOLAND REINSURANCE LTD. TCA BDM Reinsurance Ltd TCA 0 0 AA BEAL HALL FINANCIAL REINSURANCE LTD TCA AA Biggs Family Reinsurance, Ltd. BMU AA Blue Heron Reinsurance, Ltd. TCA () () AA Bluewater Reinsurance, Ltd. BMU AA Boardtracker Re TCA 5 5 AA Bowtie Reinsurance, Ltd. BMU Brisk Insurance Company, Ltd. BMU (0) Carma Reinsurance Ltd. TCA Castilone United Reinsurance Ltd TCA AA CLASSIC DENTON GMPP REINSURANCE LTD TCA 5 5 AA Clinch Mountain TCA AA Cmfr Reinsurance Trust TCA AA Consumer Protection Processing Reinsurance, Ltd. TCA CornerStone Re CYM,06,06 AA Cranbrook IV Reinsurance Ltd. CYM 6 6 AA Cranbrook Reinsurance Company BMU Cuda Reinsurance Ltd. TCA AA Cycle Protection Reinsurance CYM D'AMBROSIO REINSURANCE LTD. TCA AA Davis Calvert Reinsurance, Ltd. BMU AA De Lage Len Re Limited (Dublin, Irel) IRL,05,05 AA EDS Warrchest Reinsurance, Ltd. TCA,98,98 AA EHN Reinsurance Ltd TCA 0 0 AA Entire Car Protection Reinsurance, Ltd. TCA AA Equity Track Reinsurance AIA 9 9 AA Eric C Gerhardt Reinsurance TCA Fab Retirement Reinsurace Ltd. TCA AA Factory Reinsurance, Ltd. BMU Farner Reinsurance Company Ltd. TCA (9) (9) First Innovations TCA Freedom Insurance Co. Ltd. TCA Furniture Assurance Svcs., Re., Ltd. BMU 5 5 AA Gettysburg National Indemnity Ltd BMU () () (.) (.) AA Golden Dome Reinsurance, Ltd. TCA AA Govero Reinsurance TCA AA Gulf Coast Reinsurance Ltd. BMU AA Hadwin Reinsurance, Ltd. BMU HFRC Reinsurance, Ltd. BMU IAT Reinsurance Co Ltd BMU (80) (80) IPPA Insurance Company Ltd. BMU IRC Re, Ltd BMU Jakens Reinsurance Ltd. TCA AA JAX Reinsurance, Ltd. TCA (6) (6) AA JOHN JOHNSON AUTO GROUP REINSURANCE LTD TCA 5 5 AA JP MB Reinsurance BMU () () AA JP Reinsurance BMU () () AA JPGPB Reinsurance, Ltd. BMU

55 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 Overdue Percentage Overdue Col. 0/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 AA JPH REINSURANCE LTD TCA AA JS JP Reinsurance BMU () () AA JS MB Reinsurance BMU () () AA JS Reinsurance BMU () () AA JS Reinsurance Ltd. TCA AA JSR Group Reinsurance Ltd. TCA AA King Family Reins Co Ltd TCA AA LAREDO REINSURANCE LTD TCA LA-Z-Boy Furniture TCA AA LIBCHEVY LC REINSURANCE LTD TCA 9 9 AA Linden II Reinsurance TCA () () AA LSP Reinsurance Ltd. BMU AA M&J Reinsurance Ltd TCA AA Maiden Reinsurance Ltd. BMU AA Mamear Reinsurance Ltd TCA Marsh Financial Reinsurance Ltd. TCA 9 9 AA MAYFIELD REINSURANCE TCA 5 5 AA MB Reinsurance BMU () () AA McDeck Reinsurance Ltd. TCA Member Insurance Limited BMU MMCG Ins. Protected Cell Series BMU 0 0 AA Mulberry Street Reinsurance Ltd. TCA National Insurance Alliance Ltd CYM AA Nimincht Protection Reinsurance Ltd. TCA NJ Car Insurance Company, Ltd. BMU North Point Reinsurance Limited TCA AA North Shoreline Reinsurance Ltd. BMU North Shoreline Reinsurance Ltd. II TCA () () AA North Star Reinsurance Ltd. BMU 5 5 AA Nothstar Insurance, Inc. BMU Nursing Home Risk Indemnity Ltd BMU AA OUTTEN REINSURANCE COMPANY LTD TCA AA Outten Reinsurance, Ltd. BMU PEO Funding Group CYM AA Perma Plate Reinurance Company I BMU,50,50 AA Perma Plate Reinurance Company II BMU,50,50 AA Perma Plate Reinurance Company III BMU,50,50 AA Perma Plate Reinurance Company IV BMU,50,50 AA Perma Plate Reinurance Company V BMU,50,50 AA Perma Plate Reinurance Company VI BMU,50,50 AA Perma Plate Reinurance Company, Ltd. BMU,500, Pessada Reinsurance Company TCA 8 8 AA Preferrred Nationwide Reinsurance Company, Ltd. BMU,08, Procyon Insurance, Inc. BMU AA QUIGLEY 9 PARTNERS REINSURANCE LTD TCA AA R.K. Reinsurance Ltd. TCA AA RBH Reinsurance, Ltd. BMU 0 0 AA Regency Reinsurance Ltd. BMU AA Road Master, Ltd. (Bermuda) BMU,05,05 AA ROBJAKETC REINSURANCE LTD TCA 9 9 AA RV's U Reinsurance Company CYM 5 5 AA Sailfish Midwest Reinsurance Limited TCA AA Salerno-Duane Group Reinsuramce Ltd. TCA AA Santenay Reinsurance Company Ltd. TCA 8 8 AA SD-MCD Group Reinsurance TCA Percentage More Than 0 Days Overdue Col. 9/Col.

56 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 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 Seminole Insurance, Inc. BMU AA SFTF Reinsurance, Ltd. BMU 5 5 AA Sheets Ventures Reinsurance Ltd. TCA AA Sliman's Reinsurance Company Inc. TCA AA South County CDJR Reinsurance Ltd. TCA AA Southern Beholdings Reinsurnce Ltd. TCA Southstar Insurance, Inc. BMU AA Southwest Colonial Re., Ltd. BMU,09,09 AA SPELLMATT REINSURANCE LTD TCA Spencer Insurance Company BMU 9 9 AA STRONGDRIVE REINSURANCE LTD TCA 5 5 AA Symi Insurance Ltd. TCA AA The Stuart Insurance Group Ltd. BMU 6 6 AA Thornapple Reinsurance, Ltd. TCA () () AA TINMAN REINSURANCE LTD TCA AA Topanga Reinsurance, Ltd. TCA AA Torus Insurance (Bermuda) Limited BMU 9 9 AA TRG Reinsurance, Ltd. TCA () () TRICOR - Gollings TCA TRICOR - Suburban Group TCA TRICOR - Tyson's Corner TCA AA Tricor Reinsurance Company Ltd. TCA (0) (0) AA Turnkey Reins. Co., Ltd. TCA AA Tuscan Reinsurance Company, Ltd. TCA Unicorn Insurance Benefits Services, Inc CYM () () AA Vantage National Reinsurance Company, Ltd TCA,08,08 AA Wade & Alan Reinsurance CYM 9 9 AA WATSON INVESTMENTS REINSURANCE LTD TCA Wesco Kingdom Reins Co Ltd BMU AA Wise Reinsurance Limited TCA 8 8 AA Wyndham Insurance Company Ltd BMU 8 (5) (.) AA ZAPCO REINSURANCE LTD TCA AA H Auto Reinsurance, Ltd. TCA AA SOLUTIONS REINSURANCE, LTD. TCA AAA CFC Reinsurance TCA AA Ackerman Reinsurance TCA AA ADAW Reinsurance, Ltd. TCA Alvarez Investment Reinsurance TCA AA Alvarez Lewis Reinsurance, Ltd. TCA AA AMA Taylor Reinsurance, Ltd. TCA 5 5 AA Anjolee Automotive Reinsurance TCA 0 0 AA Apple Reinsurance, Ltd. TCA AA ASJ Reinsurance, Ltd. TCA () () AA AJSN REINSURANCE COMPANY, LTD. TCA AA Associated Dealer Reinsurance Company, Ltd. TCA AA ATI Reinsurance, Ltd. TCA (0) (0) AA Atkinson Reinsurance II TCA AA Auto Block Reinsurance, Ltd TCA 9 9 AA B Canales Reinsurance, Ltd. TCA AA Ballyhoo Investments Reinsurance, Ltd TCA Bella Enterprise Reinsurance Company, Ltd. TCA 6 6 AA Ben Boyd Reinsurance, Ltd TCA 5 5 AA Big Red Reinsurance, Ltd. TCA AA BITTERROOT REINSURANCE, LTD. TCA AA Bobby Ford Reinsurance Two, Ltd. TCA 6 6

57 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 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 AA Bobby Ford Reinsurance, Ltd. TCA (6) (6) AA BRH Reinsurance, Ltd. TCA 5 5 AA Camano Reinsurance, Ltd. TCA AA CAPFAM REINSURANCE, LTD. TCA AA Cardinal Assurance Corp Reinsurance TCA 9 9 AA Carsafe Reinsurance TCA Chaves Reynosa Reinsurance Ltd. TCA AA Checkmate Reinsurance TCA AA CMGN Reinsurance, Ltd. TCA AA CMT Automotive Reinsurance Corp (Norco) TCA AA Coachman IV Reinsurance, Ltd TCA AA Coachman V Reinsurance, Ltd. TCA COACHMAN VI REINSURANCE, LTD. TCA Credit Acceptance TCA 6 6 AA SSS VSC TCA 5 5 AA Stone TCA 5 5 AA Dealernet VSC TCA 5 5 AA SAS TCA Dealers National Auto Warranty TCA AA Del Gre Reinsurance, Ltd. TCA AA SDG Re, Ltd. TCA AA KDG Re, Ltd. TCA AA DGSS Reinsurance, Ltd. TCA AA Dickson Investments Reinsurance, Ltd. TCA AA DJAJ Reinsurance Ltd TCA AA DRK Reinsurance, Ltd. TCA 6 6 AA Dunning & Dunning Reinsurance, Ltd.. TCA 8 8 AA EAS REINSURANCE, LTD. TCA AA ELR Reinsurance, Ltd. TCA 0 0 AA Escamilla Enterprise Reinsurance, Ltd. TCA 5 5 AA Eusay Trust Reinsurance, Ltd. TCA AA F & I Solutions Reinsurance, Ltd. TCA AA First Guard Reinsurance II TCA AA First Guard Reinsurance III TCA AA LAB Reinsurance TCA AA First Euro Group Reinsurance, Ltd. TCA AA FMMW Reinsurance, Ltd. TCA 6 6 AA Fredy Kia Reinsurance. Ltd TCA () () AA Goldthwaite Reinsurance, Ltd. TCA AA GRALAN Reinsurance, Ltd. TCA 8 8 AA Gresham, Hall & Taber Reinsurance, Ltd. TCA AA Griffin Reinsurance TCA AA GTP Reinsurance, Ltd. TCA AA Hanna Belle Reinsurance, Ltd TCA Hidden Meadows Reinsurance Company, Inc TCA 5 5 AA Hip National Reinsurance TCA AA Howmar Reinsurance, Ltd TCA AA Ibarra Brito Reinsurance, Ltd. TCA AA IGS Reinsurance, Ltd TCA JACANTU Financial Reinsurance, Ltd. TCA AA Java Auto Reinsurance, Ltd. TCA 0 0 AA Jhobar Holdings Reinsurance, Ltd. TCA AA JJG Reinsurance (Big Apple VW) TCA AA JPJ Reinsurance, Ltd. TCA () () AA JWMJR Reinsurance, Ltd. TCA 5 5 Percentage Overdue Col. 0/Col. Percentage More Than 0 Days Overdue Col. 9/Col.

58 .5 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 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 AA KarBiz Reinsurance, Ltd. TCA () () AA KBD Reinsurance, Ltd. TCA AA KGSIX REINSURANCE, LTD. TCA 5 5 AA KKM Reinsurance, Ltd. TCA 0 0 AA Koehn Reinsurance, Ltd. TCA (0) (0) AA Koehn II Reinsurance, Ltd. TCA (0) (0) AA Kunes Family Reinsurance, Ltd. TCA () () AA TASTES GREAT TCA LESS FILLING TCA 5 5 AA Lakel Auto 0 Reinsurance, Ltd. TCA () () AA Lakeside Auto Group Reinsurance, Ltd. TCA (6) (6) AA Lassen And Doran Reinsurance Company, Ltd. TCA AA LITTLES REINSURANCE, LTD. TCA AA M & J REINSURANCE, LTD. TCA AA MAFA Reinsurance, Ltd TCA 5 5 AA MAFA Reinsurance, Ltd TCA 5 5 AA MAFA Reinsurance, Ltd. TCA 9 9 AA MAFA REINSURANCE, LTD TCA 5 5 AA MAMEAR Reinsurance, Ltd. TCA 6 6 AA MAPAM 0 Reinsurance, Ltd. TCA AA MARKETPLACE REINSURANCE, LTD. TCA AA Marquez Capital Reinsurance, Ltd. TCA AA Masters Reinsurance TCA 5 5 AA MBSC, Reinsurance, Ltd. TCA 9 9 AA ME & O REINSURANCE, LTD. TCA () () AA Mel Grata Reinsurance, Ltd TCA (6) (6) AA MH Investments Reinsurance, Ltd. TCA 5 5 AA Mike Shannon Reinsurance, Ltd. TCA AA Miracle Reinsurance, Ltd. TCA () () AA Mississippi Reinsurance TCA AA MLE Reinsurance, Ltd. TCA Mungenast Reinsurance TCA AA MUSKIES REINSURANCE, LTD. TCA (5) (5) AA Nanco Reinsurance, Ltd. TCA 0 0 AA NR Reinsurance, Ltd. TCA 0 0 AA PACIFIC PERFOMANCE HOLDINGS, LTD. TCA AA Papa Gallo All Star Reins, Ltd. TCA 9 9 AA Patrick Fam Reinsurance, Ltd. TCA Polaris Reinsurance TCA Principal Warranty Corp Reinsurance TCA PMH 006 Reinsurance, Ltd. TCA PTT 006 Reinsurance, Ltd. TCA AA Ramaz Reinsurance, Ltd. TCA AA Ransco II Reinsurance, Ltd. TCA () () AA Red Swan Reinsurance, Ltd. TCA Redex Care Reinsurance Company TCA AA Reid Investments Reinsurance TCA AA REP Reinsurance, Ltd. TCA 6 6 AA RJM Reinsurance, Ltd. TCA RKR REINSURANCE, LTD. TCA Route 66 Reinsurance TCA AA RPA Reinsurance, Ltd. TCA AA RPT Reinsurance (Dealer Group Reinsurance) TCA AA Rt 6 Reinsurance, Ltd. TCA AA SAE Group Reinsurance, Ltd. TCA 0 0 Percentage Overdue Col. 0/Col. Percentage More Than 0 Days Overdue Col. 9/Col.

59 .6 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 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 AA SAE Reinsurance Two, Ltd. TCA 5 5 AA Sam & E Reinsurance, Ltd. TCA AA SANTENAY REINSURANCE, LTD. TCA AA Schmit Bros Family Trust Reinsurance, Ltd TCA 5 5 AA Sea Breeze Reinsurance TCA AA Shepherd Reinsurance TCA 8 8 AA Sidewinder Reinsurance, Ltd. TCA Silverback Reinsurance, Ltd. TCA () () AA Sinno Reinsurance TCA AA Sinno Two Reinsurance, Ltd.. TCA AA Smart Choice Reinsurance, Ltd. TCA AA Southern Plantation Reinsurance, Ltd. TCA () () AA Southern Reinsurance, Ltd. TCA 6 6 AA Speedway Investments Reinsurance, Ltd TCA () () AA Spoerl Reinsurance, Ltd. TCA STLR Nation Reinsurance Co TCA 5 5 AA Sumar Reinsurance, Ltd. TCA AA TAG Reinsurance, Ltd. TCA AA Tami S. & Barney A. Lewis Reinsurance, Ltd. TCA AA Tantillo Reinsurance Holdings Company, Ltd. TCA AA Taylor Ridge Management Reinsurance, Ltd. TCA AA BULL VALLEY REINSURANCE, LTD. TCA Mazda reinsurance TCA AA Momentum Reinsurance TCA Southern Chrysler TCA AA TCM Reinsurance, Ltd. TCA AA Texas Sunset Reins., Ltd TCA 5 5 AA Sunrise TCA AA Siesta Reinsurance TCA AA Thompson Dahl Reinsurance, Ltd. TCA () () AA Thornapple Reinsurance, Ltd. TCA 5 5 AA T Reinsurance, Ltd. TCA (0) (0) AA Tri State Reinsurance TCA TriCor Suburban Group Reins TCA AA Twenty Seven K Reinsurance, Ltd. TCA AA TUSCAN REINSURANCE, LTD. TCA AA USAFA Reinsurance TCA 6 6 AA STROS Reinsurance, Ltd. TCA 5 5 AA Vargas Reinsuracne, Ltd. TCA W F O'DELL MO Reinsurance TCA AA Why Not Reinsurance, Ltd. TCA 6 6 AA Wit II Reinsurance TCA 8 8 AA WMRF Reinsruance, Ltd. TCA (5) (5) AA WOAPO Reinsurance, Ltd. TCA 6 6 AA WTN Reinsurance, Ltd. TCA AA Yankees Reinsurance TCA AA EME Reins, Ltd. TCA AA Yochim Reinsurance, Ltd. TCA AA Zaerich Reinsurance TCA AA Zapco Reinsurance, Ltd. TCA Total Unauthorized - Other Non-U.S. Insurers 5, , 58, Total Unauthorized 58, , 60, Total Certified - Affiliates - U.S. Non-Pool Total Certified - Affiliates - Other (Non-U.S.) Total Certified - Affiliates

60 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 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 Total Certified Total Authorized, Unauthorized Certified 58, , 59, Total Protected Cells Totals 58, , 59,5..6.

61 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 5 Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. 5 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. ) Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 5 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. ) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6) ID Number Name of Reinsurer Special Code Letters of Credit Total - U.S. Non-Pool XXX Agent Alliance Reinsurance Company Ltd. BMU,5,85 995,5 AA AmTrust at Lloyds Limited, Syndicate 06 GBR,5 5,89,5 000,5 AA AmTrust International Insurance Co. BMU,9,69 5,99 00, (0),0,5,9,69 AA AmTrust International Underwriters Insurance Company IRL (6) (6) Affiliates - Other (Non-U.S.) - Other,99,58,65,5 XXX,68,0,0,99, Total - Other (Non-U.S.),99,58,65,5 XXX,68,0,0,99, Total - Affiliates,99,58,65,5 XXX,68,0,0,99, A-One Commercial Insurance Riks Retention Group Inc. TN Express Performance, Ltd. CA,,5 0,05, EZA Reinsurance KS Food Service Risk Management Inc SC,059,699, Geminus Reinsurance Co. DE,9,8,59, MOX Reinsurance KS MZP Reinsurance KS North 5 Insurance, Inc. HI,,,60, -809 PrimeOne Insurance Co MI () 8 (68) () Sportsman's Insurance Company VT,599,56 6,06, US Legal Services, Inc. FL Utah Business Insurance Company UT,0 6,86, ZYX Reinsurance KS Total Other U.S. Unaffiliated Insurers, XXX 6,88 5,,08 AA Blue Ridge Reinsurance, Ltd. TCA JM Group Reinsurance, Ltd. TCA AA KRS Whitaker Reinsurance, Ltd. TCA AA Lehmer's Reinsurance, Ltd. TCA Lemich Reinsurance, Ltd. TCA AA Low Country Reinsurance, Ltd. TCA AA Thompson & Ortiz Reinsurance, Ltd. TCA AA Thompsons Custome ESP Reinsurance, Ltd. TCA AA A & P Reinsurance, Ltd. BMU AA Academy Reinsurance, Limited. TCA 5 5 AA Agency Program Insurance Company (SAC) BMU AJD Reinsurance Inc. TCA AA Amlin AG CHE, AA APA III Reinsurance TCA AA Appalachian Reinsurance (Bermuda) Ltd. BMU,0,5,6,0 AA ARIA (SAC) Ltd. BMU,585,58,0,585 AA Associated Dealers Reinsurance Co., Ltd. TCA,5 80,8,5 AA Atlantic Gateway International LTD BMU 5, ,88,68 5, AutoXcel Reinsurance Ltd. TCA,5,0,58, Babette's Reinsurance Ltd. TCA AA Bar Don Reinsurance, Ltd. BMU AA BARBERA AUTOLAND REINSURANCE LTD. TCA BDM Reinsurance Ltd TCA AA BEAL HALL FINANCIAL REINSURANCE LTD TCA

62 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 5 Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. 5 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. ) Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 5 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. ) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6) ID Number Name of Reinsurer Special Code Letters of Credit AA Biggs Family Reinsurance, Ltd. BMU AA Blue Heron Reinsurance, Ltd. TCA 5 5 AA Bluewater Reinsurance, Ltd. BMU AA Boardtracker Re TCA AA Bowtie Reinsurance, Ltd. BMU Brisk Insurance Company, Ltd. BMU, ,6,6 AA Brookmont Capital Reinsurance BMU Carma Reinsurance Ltd. TCA Castilone United Reinsurance Ltd TCA AA CLASSIC DENTON GMPP REINSURANCE LTD TCA AA Clinch Mountain TCA,650,8,0,650 AA Cmfr Reinsurance Trust TCA 9 (8) 5 9 AA Consumer Protection Processing Reinsurance, Ltd. TCA CornerStone Re CYM 9,98,59,5 9,98 AA Cranbrook IV Reinsurance Ltd. CYM,59 6,50,59 AA Cranbrook Reinsurance Company BMU Cuda Reinsurance Ltd. TCA AA Cycle Protection Reinsurance CYM D'AMBROSIO REINSURANCE LTD. TCA, 59,6, AA Davis Calvert Reinsurance, Ltd. BMU,5,68,5 AA De Lage Len Re Limited (Dublin, Irel) IRL 8,58,5,5 8,58 AA EDS Warrchest Reinsurance, Ltd. TCA 5,5,659 5,0 5,5 AA EHN Reinsurance Ltd TCA,80,6,80 AA Entire Car Protection Reinsurance, Ltd. TCA,960,6,9,960 AA Equity Track Reinsurance AIA AA Eric C Gerhardt Reinsurance TCA 9 (8) Fab Retirement Reinsurace Ltd. TCA AA Factory Reinsurance, Ltd. BMU,08 9,6, Farner Reinsurance Company Ltd. TCA 6 (5), First Innovations TCA AA Fortius Re Ltd BMU Freedom Insurance Co. Ltd. TCA,0 5,8, Furniture Assurance Svcs., Re., Ltd. BMU,50 8,0,50 AA Gettysburg National Indemnity Ltd BMU AA Golden Dome Reinsurance, Ltd. TCA 99 AA Govero Reinsurance TCA 9 (8) 0 9 AA Gulf Coast Reinsurance Ltd. BMU 99 (),80 99 AA Hadwin Reinsurance, Ltd. BMU AA Hannover Re (Bermuda) Ltd. BMU 0, HFRC Reinsurance, Ltd. BMU Howell Furniture TCA IAT Reinsurance Co Ltd BMU IPPA Insurance Company Ltd. BMU, 8,9, IRC Re, Ltd BMU J&S Reinsurance Company TCA Jakens Reinsurance Ltd. TCA James Wood Denton reinsruance Company TCA 8 AA JAX Reinsurance, Ltd. TCA AA JOHN JOHNSON AUTO GROUP REINSURANCE LTD TCA

63 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 5 Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. 5 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. ) Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 5 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. ) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6) ID Number Name of Reinsurer Special Code Letters of Credit AA JP MB Reinsurance BMU () 9 () AA JP Reinsurance BMU () 9 () AA JPGPB Reinsurance, Ltd. BMU AA JPH REINSURANCE LTD TCA 9 9 AA JS JP Reinsurance BMU () 9 () AA JS MB Reinsurance BMU () 9 () AA JS Reinsurance BMU (),0 () AA JS Reinsurance Ltd. TCA 9 AA JSR Group Reinsurance Ltd. TCA 9 AA Juniper Reinsuranc Ltd. TCA 5 AA JYM Reinsurance, Ltd. BMU AA KB Reinsurance Ltd TCA AA King Family Reins Co Ltd TCA AA LAREDO REINSURANCE LTD TCA LA-Z-Boy Furniture TCA AA LIBCHEVY LC REINSURANCE LTD TCA AA Linden II Reinsurance TCA 6,0 6 AA Lloyds - Other Unauthorized GBR 5 AA LSP Reinsurance Ltd. BMU AA M&J Reinsurance Ltd TCA AA Maiden Reinsurance Ltd. BMU AA Mamear Reinsurance Ltd TCA AA Markel Bermuda Limited BMU, Marsh Financial Reinsurance Ltd. TCA AA MAYFIELD REINSURANCE TCA AA MB Reinsurance BMU () 9 () AA McDeck Reinsurance Ltd. TCA Member Insurance Limited BMU, MMCG Ins. Protected Cell Series BMU 95,09 95 AA Mulberry Street Reinsurance Ltd. TCA,8,55, National Insurance Alliance Ltd CYM AA Nimincht Protection Reinsurance Ltd. TCA NJ Car Insurance Company, Ltd. BMU North Point Reinsurance Limited TCA AA North Shoreline Reinsurance Ltd. BMU,59 6,50, North Shoreline Reinsurance Ltd. II TCA 6,0 6 AA North Star Reinsurance Ltd. BMU AA Nothstar Insurance, Inc. BMU Nursing Home Risk Indemnity Ltd BMU,885 8,589,885 AA OUTTEN REINSURANCE COMPANY LTD TCA 6 8 AA Outten Reinsurance, Ltd. BMU AA Parden Reinsurance Limited TCA PEO Funding Group CYM,08,5 000,85,,08 AA Perma Plate Reinurance Company I BMU 5,6, ,6 AA Perma Plate Reinurance Company II BMU 5,6, ,6 AA Perma Plate Reinurance Company III BMU 5,6, ,6 AA Perma Plate Reinurance Company IV BMU 5,6, ,6 AA Perma Plate Reinurance Company V BMU 5,6, ,6 AA Perma Plate Reinurance Company VI BMU 5,6, ,6

64 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 5 Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. 5 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. ) Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 5 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. ) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6) ID Number Name of Reinsurer Special Code Letters of Credit AA Perma Plate Reinurance Company, Ltd. BMU 6,0,56,50 6, Pessada Reinsurance Company TCA,88 6,68,88 AA Preferrred Nationwide Reinsurance Company, Ltd. BMU 8,65,68,008 8, Procyon Insurance, Inc. BMU AA QUIGLEY 9 PARTNERS REINSURANCE LTD TCA AA R.K. Reinsurance Ltd. TCA AA RBH Reinsurance, Ltd. BMU 6,0 6,5 6,0 AA Regency Reinsurance Ltd. BMU AA Road Master, Ltd. (Bermuda) BMU,60,8 900,60 AA ROBJAKETC REINSURANCE LTD TCA AA RV's U Reinsurance Company CYM AA Sailfish Midwest Reinsurance Limited TCA AA Salerno-Duane Group Reinsuramce Ltd. TCA AA Santenay Reinsurance Company Ltd. TCA AA SD-MCD Group Reinsurance TCA 5 6 AA Selects Reinsurance Ltd. TCA Seminole Insurance, Inc. BMU AA SFTF Reinsurance, Ltd. BMU 98 59, AA Sheets Ventures Reinsurance Ltd. TCA 9 AA Sidewinder Reinsurance, Ltd. BMU AA Sliman's Reinsurance Company Inc. TCA AA South County CDJR Reinsurance Ltd. TCA AA Southern Beholdings Reinsurnce Ltd. TCA Southstar Insurance, Inc. BMU AA Southwest Colonial Re., Ltd. BMU 0,666,8,80 0,666 AA SPELLMATT REINSURANCE LTD TCA, 68 98, Spencer Insurance Company BMU,9,95,9 AA STRONGDRIVE REINSURANCE LTD TCA AA Symi Insurance Ltd. TCA 0 8, 0 AA Taiping Reinsurance Company Ltd. HKG AA The Stuart Insurance Group Ltd. BMU, 8,50 00 (96), AA Thornapple Reinsurance, Ltd. TCA AA TINMAN REINSURANCE LTD TCA, ,05 AA Topanga Reinsurance, Ltd. TCA AA Torus Insurance (Bermuda) Limited BMU AA TRG Reinsurance, Ltd. TCA TRICOR - Capital TCA TRICOR - Capital Chevrolet Inc. TCA TRICOR - Gollings TCA TRICOR - Suburban Group TCA, , TRICOR - Tyson's Corner TCA, ,05 AA Tricor Reinsurance Company Ltd. TCA,60 8,9,60 AA Turnkey Reins. Co., Ltd. TCA 55 () AA Tuscan Reinsurance Company, Ltd. TCA,80 8,9, Unicorn Insurance Benefits Services, Inc CYM () () 6 AA Validus Reinsurance Ltd BMU 9 AA Vantage National Reinsurance Company, Ltd TCA 9,,08,65 9, AA Wade & Alan Reinsurance CYM,5 5,,5 AA WALLY ARMOUR CDJ REINSURANCE LTD TCA

65 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 5 Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. 5 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. ) Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 5 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. ) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6) ID Number Name of Reinsurer Special Code Letters of Credit AA WATSON INVESTMENTS REINSURANCE LTD TCA Wesco Kingdom Reins Co Ltd BMU AA Wise Reinsurance Limited TCA AA WK Reinsurance Ltd. TCA,6 00 AA Wyndham Insurance Company Ltd BMU,65,55 5,058,65 AA ZAPCO REINSURANCE LTD TCA AA H Auto Reinsurance, Ltd. TCA AA SOLUTIONS REINSURANCE, LTD. TCA AAA CFC Reinsurance TCA AA Ackerman Reinsurance TCA 88 AA ADAW Reinsurance, Ltd. TCA,0,8, Alvarez Investment Reinsurance TCA AA Alvarez Lewis Reinsurance, Ltd. TCA AA AMA Taylor Reinsurance, Ltd. TCA AA Anjolee Automotive Reinsurance TCA AA Apple Reinsurance, Ltd. TCA AA ASJ Reinsurance, Ltd. TCA 8 08 AA AJSN REINSURANCE COMPANY, LTD. TCA 08 AA Associated Dealer Reinsurance Company, Ltd. TCA AA ATI Reinsurance, Ltd. TCA AA Atkinson Reinsurance II TCA 86 (5),05 86 AA Auto Block Reinsurance, Ltd TCA AA B Canales Reinsurance, Ltd. TCA AA Ballyhoo Investments Reinsurance, Ltd TCA Bella Enterprise Reinsurance Company, Ltd. TCA AA BENEFICIAL REINSURANCE, LTD. TCA 5 5 AA Ben Boyd Reinsurance, Ltd TCA 5 AA Big Red Reinsurance, Ltd. TCA AA BITTERROOT REINSURANCE, LTD. TCA 5 AA Bobby Ford Reinsurance Two, Ltd. TCA 8 8 AA Bobby Ford Reinsurance, Ltd. TCA () () () AA BRH Reinsurance, Ltd. TCA, 80,5, AA Camano Reinsurance, Ltd. TCA,9 0,00,9 AA CAPFAM REINSURANCE, LTD. TCA AA Cardinal Assurance Corp Reinsurance TCA AA Carsafe Reinsurance TCA 9 (5) Chaves Reynosa Reinsurance Ltd. TCA AA Checkmate Reinsurance TCA, 9,0, AA CMGN Reinsurance, Ltd. TCA,,, AA CMT Automotive Reinsurance Corp (Norco) TCA AA Coachman IV Reinsurance, Ltd TCA AA Coachman V Reinsurance, Ltd. TCA,68,85, COACHMAN VI REINSURANCE, LTD. TCA Credit Acceptance TCA AA Danart Reinsurance Company, Inc. TCA AA SSS VSC TCA 6 (8) 9 6 AA Stone TCA 6 () 9 6 AA Dealernet VSC TCA 6 (68) 9 6 AA SAS TCA 6 (8) 96 6

66 .5 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 5 Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. 5 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) ID Number Name of Reinsurer Special Code Letters of Credit Dealers National Auto Warranty TCA AA Del Gre Reinsurance, Ltd. TCA 5 (68),60 5 AA SDG Re, Ltd. TCA 8 (8) 50 8 AA KDG Re, Ltd. TCA 8 (8) 9 8 AA DEL SILVER REINSURANCE, LTD. TCA 9 5 AA DGSS Reinsurance, Ltd. TCA 0 6 AA Dickson Investments Reinsurance, Ltd. TCA,665 69,666,665 AA DJAJ Reinsurance Ltd TCA AA DRK Reinsurance, Ltd. TCA,,55, AA Dunning & Dunning Reinsurance, Ltd.. TCA 8 69 AA EAS REINSURANCE, LTD. TCA AA ELR Reinsurance, Ltd. TCA,0 6,00,0 AA ENZO PAULINO REINSURANCE, LTD. TCA 0 0 AA Escamilla Enterprise Reinsurance, Ltd. TCA () 8 AA Eusay Trust Reinsurance, Ltd. TCA EveryCarListed Reinsurance TCA AA F & I Solutions Reinsurance, Ltd. TCA, 0,08, AA First Guard Reinsurance II TCA 8 0 AA First Guard Reinsurance III TCA 5 (9) 5 AA LAB Reinsurance TCA 5 (5) 8 5 AA First Euro Group Reinsurance, Ltd. TCA Five Cents Reinsurance, Inc. TCA AA FMMW Reinsurance, Ltd. TCA 6 6 AA Fredy Kia Reinsurance. Ltd TCA () 6 AA Goldthwaite Reinsurance, Ltd. TCA 6 6 AA GRALAN Reinsurance, Ltd. TCA 986, AA Gresham, Hall & Taber Reinsurance, Ltd. TCA 0 AA Griffin Reinsurance TCA,99,96,99 AA GTP Reinsurance, Ltd. TCA AA Hanna Belle Reinsurance, Ltd TCA Hidden Meadows Reinsurance Company, Inc TCA AA Hip National Reinsurance TCA AA Howmar Reinsurance, Ltd TCA 0 (5) 0 0 AA Ibarra Brito Reinsurance, Ltd. TCA,056 9,00,056 AA IGS Reinsurance, Ltd TCA 56 (8),06 56 AA J & S REINSURANCE, INC. TCA JACANTU Financial Reinsurance, Ltd. TCA 55 AA Java Auto Reinsurance, Ltd. TCA AA Jhobar Holdings Reinsurance, Ltd. TCA AA JJG Reinsurance (Big Apple VW) TCA AA JPJ Reinsurance, Ltd. TCA,50 05,,50 AA JWMJR Reinsurance, Ltd. TCA AA KarBiz Reinsurance, Ltd. TCA AA KBD Reinsurance, Ltd. TCA, 5,0, AA KGSIX REINSURANCE, LTD. TCA AA KKM Reinsurance, Ltd. TCA,0 6 9,0 AA Kirste Motor Reinsurance, Ltd. TCA 0 0 AA Koehn Reinsurance, Ltd. TCA AA Koehn II Reinsurance, Ltd. TCA Provision for Unauthorized Reinsurance (Col. 6 Minus Col. ) Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 5 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. ) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6)

67 .6 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 5 Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. 5 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) ID Number Name of Reinsurer Special Code Letters of Credit AA Kunes Family Reinsurance, Ltd. TCA,96,0,96 AA TASTES GREAT TCA LESS FILLING TCA AA Lakel Auto 0 Reinsurance, Ltd. TCA AA Lakeside Auto Group Reinsurance, Ltd. TCA AA Lassen And Doran Reinsurance Company, Ltd. TCA 6 8 AA LITTLES REINSURANCE, LTD. TCA AA M & J REINSURANCE, LTD. TCA AA MAFA Reinsurance, Ltd TCA,,5, AA MAFA Reinsurance, Ltd TCA,0 5,60,0 AA MAFA Reinsurance, Ltd. TCA,8,6,8 AA MAFA REINSURANCE, LTD TCA AA MAMEAR Reinsurance, Ltd. TCA 5 AA MAPAM 0 Reinsurance, Ltd. TCA () 0 AA MARKETPLACE REINSURANCE, LTD. TCA AA Marquez Capital Reinsurance, Ltd. TCA AA Masters Reinsurance TCA 8 90 AA MBSC, Reinsurance, Ltd. TCA 88 AA ME & O REINSURANCE, LTD. TCA, ,05 AA Mel Grata Reinsurance, Ltd TCA AA MH Investments Reinsurance, Ltd. TCA AA Mike Shannon Reinsurance, Ltd. TCA AA Miracle Reinsurance, Ltd. TCA () 6 AA Mississippi Reinsurance TCA AA MLE Reinsurance, Ltd. TCA,9 (),96, Mungenast Reinsurance TCA 5 () 96 5 AA MUSKIES REINSURANCE, LTD. TCA AA Nanco Reinsurance, Ltd. TCA AA NR Reinsurance, Ltd. TCA 0 () 0 AA PACIFIC PERFOMANCE HOLDINGS, LTD. TCA AA Papa Gallo All Star Reins, Ltd. TCA AA Patrick Fam Reinsurance, Ltd. TCA,95 9,8, Polaris Reinsurance TCA Principal Warranty Corp Reinsurance TCA PMH 006 Reinsurance, Ltd. TCA PTT 006 Reinsurance, Ltd. TCA AA Ramaz Reinsurance, Ltd. TCA 6 65 AA Ransco II Reinsurance, Ltd. TCA AA Red Swan Reinsurance, Ltd. TCA,6 95,8, Redex Care Reinsurance Company TCA 5 AA Reid Investments Reinsurance TCA AA REP Reinsurance, Ltd. TCA,,99, AA RJM Reinsurance, Ltd. TCA,0 6 9, RKR REINSURANCE, LTD. TCA Route 66 Reinsurance TCA AA RPA Reinsurance, Ltd. TCA,09 8 9,09 AA RPT Reinsurance (Dealer Group Reinsurance) TCA 5 () 85 5 AA Rt 6 Reinsurance, Ltd. TCA AA SAE Group Reinsurance, Ltd. TCA,69 5,80,69 Provision for Unauthorized Reinsurance (Col. 6 Minus Col. ) Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 5 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. ) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6)

68 . ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 5 Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. 5 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) ID Number Name of Reinsurer Special Code Letters of Credit AA SAE Reinsurance Two, Ltd. TCA,80,55,80 AA Sam & E Reinsurance, Ltd. TCA AA SANTENAY REINSURANCE, LTD. TCA AA Schmit Bros Family Trust Reinsurance, Ltd TCA AA Sea Breeze Reinsurance TCA () AA Shepherd Reinsurance TCA,50 5,9,50 AA Sidewinder Reinsurance, Ltd. TCA Silverback Reinsurance, Ltd. TCA 9 9 AA Sinno Reinsurance TCA AA Sinno Two Reinsurance, Ltd.. TCA AA Smart Choice Reinsurance, Ltd. TCA AA Southern Plantation Reinsurance, Ltd. TCA AA Southern Reinsurance, Ltd. TCA,6 5,6,6 AA Speedway Investments Reinsurance, Ltd TCA AA Spoerl Reinsurance, Ltd. TCA STLR Nation Reinsurance Co TCA AA Sumar Reinsurance, Ltd. TCA AA TAG Reinsurance, Ltd. TCA 5 66 AA Tami S. & Barney A. Lewis Reinsurance, Ltd. TCA AA Tantillo Reinsurance Holdings Company, Ltd. TCA,6 (),65,6 AA Taylor Ridge Management Reinsurance, Ltd. TCA Bill Hodges WH REINS TCA AA BULL VALLEY REINSURANCE, LTD. TCA Mazda reinsurance TCA AA Momentum Reinsurance TCA 9, Southern Chrysler TCA AA TCM Reinsurance, Ltd. TCA AA Texas Sunset Reins., Ltd TCA () 6 AA Sunrise TCA AA Siesta Reinsurance TCA 0 () 0 AA Thompson Dahl Reinsurance, Ltd. TCA AA Thornapple Reinsurance, Ltd. TCA AA Thrift Auto Reinsurance, Ltd. TCA AA T Reinsurance, Ltd. TCA AA Tri State Reinsurance TCA TriCor Suburban Group Reins TCA AA Twenty Seven K Reinsurance, Ltd. TCA AA TUSCAN REINSURANCE, LTD. TCA AA USAFA Reinsurance TCA,59 6,96,59 AA STROS Reinsurance, Ltd. TCA 0 () 86 0 AA Vargas Reinsuracne, Ltd. TCA W F O'DELL MO Reinsurance TCA () 8 AA Why Not Reinsurance, Ltd. TCA,,65, AA Wit II Reinsurance TCA 8 (0),88 8 AA WMRF Reinsruance, Ltd. TCA AA WOAPO Reinsurance, Ltd. TCA (6) AA WTN Reinsurance, Ltd. TCA AA Yankees Reinsurance TCA,06,006,06 AA EME Reins, Ltd. TCA Provision for Unauthorized Reinsurance (Col. 6 Minus Col. ) Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 5 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. ) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6)

69 .8 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 5 Provision for Unauthorized Reinsurance as of December, Current Year (000 OMITTED) NAIC Company Code Domiciliary Jurisdiction Reinsurance Recoverable all Items Schedule F Part, Col. 5 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. ) Recoverable Paid Losses & LAE Expenses Over 90 Days past Due not in Dispute 0% of Amount in Col. 5 0% of Amount in Dispute Included in Column 6 Provision for Overdue Reinsurance (Col 6 plus Col. ) Total Provision for Reinsurance to Unauthorized Reinsurers (Col. plus Col. 8 but not in Excess of Col. 6) ID Number Name of Reinsurer Special Code Letters of Credit AA Yochim Reinsurance, Ltd. TCA,596 9,5,596 AA Zaerich Reinsurance TCA 8 AA ACE Tempest Reinsurance Ltd BMU 6 AA Amlin Bermuda, Ltd BMU AA ASIA Capital Reinsurance Group Pte Limited SGP,6 AA Aspen Bermuda Ltd. BMU (,5) (,5),5 AA AXIS SPECIALTY LTD BMU 6 AA China Reinsurance (Group) Corporation CHN (58) (58) 58 AA Davinci Reinsurance Ltd BMU 59 AA Fidelis Insurance Bermuda Ltd. BMU (9) (9) 9 AA General Insurance Company of India IND (,008) (,008),008 AA Korean Reinsurance Company KOR (99) (99) 99 AA Lasncashire Insurance Company, Ltd BMU AA Qatar General Insurance Reinsurance Comp QAT (05) (05) 05 AA REnaissance Reinsurance Ltd BMU (,65) (,65),65 AA Scor Global P&C SE FRA (88) (88) 88 AA Sompo Japan Nipporkoa Insurance, Inc. JPN 6 AA XL Bermuda Ltd BMU () () AA Zapco Reinsurance, Ltd TCA 5 AA Arch Reinsurance Underwriting Europe IRL (06) (06) 06 AA Catlin Ins Co Ltd BMU AA MS Frontier Reinsurance LTD BMU (9) (9) 9 AA PacRe, Ltd BMU Total Other Non-U.S. Insurers 0,06 6,509 XXX,966,00 9,6 0,, Total Affiliates Others,80,88,69 9,96 XXX 50,96,8,6,0, 0,60, Total Protected Cells XXX Totals,80,88,69 9,96 XXX 50,96,8,6,0, 0,60,. Amounts in dispute totaling $ are included in Column 6.. Amounts in dispute totaling $ are excluded from Column 5. (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 000 Rabobank New York Branch, JP Morgan Bank 00, TD Bank, NA Barclays Bank Fifth Third Comerica Bank Comerica Bank Citibank, Fifth Third Comerica Bank, Bank of America NA 8,50

70 (a) Issuing or Confirming Bank Reference Number Letters of Credit Code ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY American Bankers Association (ABA) Routing Number Issuing or Confirming Bank Name Letters of Credit Amount Comerica Bank,6.9

71 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 ) 5 6 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, not to Reinsurance Letters of Reference Allowable (Col. + (Col. / by Exceed Treaties Credit Number (a) Collateral ) Col. 0) 00%) 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 AA Allied World Assurance Company BMU 0/0/0 0.0 AA Endurance Specialty Insurance Ltd. BMU 0/0/ (8) (8) (6) AA Everest Reinsurance Bermuda Ltd. BMU 0/0/ AA TOKIO MILLENNIUM Re AG BMU 0/0/ Total Other Non-U.S. Insurers 6 6 XXX XXX XXX Total Affiliates Others 6 6 XXX XXX XXX Total Protected Cells XXX XXX XXX Multiple Beneficiary Trust 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 6 6 XXX XXX XXX 65 (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

72 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY Schedule F - Part 6 - Section - Provision for Overdue Reinsurance to Certified Reinsurers N O N E Schedule F - Part - Provision for Overdue Authorized Reinsurance N O N E 6,

73 ID Number NAIC Company Code Name of Reinsurer ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE F - PART 8 Provision for Overdue Reinsurance as of December, Current Year 5 6 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. 5 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 Col.. Provision for Overdue Authorized Reinsurance (Lines + ) 5. Provision for Reinsurance to Unauthorized Reinsurers (Schedule F - Part 5 Col. 9 x000),, Provision for Reinsurance to Certified Reinsurers (Schedule F- Part 6, Section, Col. x 000) 65,000. Provision for Overdue Reinsurance to Certified Reinsurers (Schedule F - Part 6, Section, Col 5 x 000) 8. Provision for Reinsurance (sum Lines ) (Enter this amount on Page, Line 6),868,000 8

74 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 ),0,89,,0,89,. Premiums considerations (Line 5) 06,686,68 06,686,68. Reinsurance recoverable on loss loss adjustment expense payments (Line 6.) 59,56, (59,56,). Funds held by or deposited with reinsured companies (Line 6.),96, (,96,) 5. Other assets 8,0, 8,0, 6. Net amount recoverable from reinsurers,59,96,98,59,96,98. Protected cell assets (Line ) 8. Totals (Line 8),90,659,688,6,09,9,66,09,60 LIABILITIES (Page ) 9. Losses loss adjustment expenses (Lines through ),65,6,,95,068,065,590, 0. Taxes, expenses, other obligations (Lines through 8) 58,556,6 58,556,6. Unearned premiums (Line 9) 65,6,9,69,5,85,8,5,0. Advance premiums (Line 0) 6,89,055 6,89,055. Dividends declared unpaid (Line..). reinsurance premiums payable (net of ceding commissions (Line ) 50,5,000 (50,5,000) 5. Funds held by company under reinsurance treaties (Line ) 585,06,000 (585,06,000) 6. Amounts withheld or retained by company for account of others (Line ) 68,000 68,000. Provision for reinsurance (Line 6),868,000 (,5,000), Other liabilities,,6,,6 9. Total liabilities excluding protected cell business (Line 6),50,5,899,6,09,9,00,0,8 0. Protected cell liabilities (Line ). Surplus as regards policyholders (Line ) 6,506,89 XXX 6,506,89. Totals (Line 8),90,659,688,6,09,9,66,09,60 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

75 Total Amount % ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE H - ACCIDENT AND HEALTH EXHIBIT Group Accident Health Amount % Credit Accident Health (Group Individual) Collectively Renewable Non-Cancelable Guaranteed Renewable Amount % Amount % Amount % Amount % PART. - ANALYSIS OF UNDERWRITING OPERATIONS Other Individual Contracts Non-Renewable for Stated Reasons Only Other Accident Only All Other 5 6 Amount % Amount % Amount 8 %. Premiums written 8,650,0 XXX XXX XXX XXX XXX XXX XXX XXX 8,650,0 XXX. Premiums earned 9,66,5 XXX XXX XXX XXX XXX XXX XXX XXX 9,66,5 XXX. Incurred claims,0,58.8,0,58.8. Cost containment expenses 5. Incurred claims cost containment expenses (Lines ),0,58.8,0, Increase in contract reserves. Commissions (a),6,0.6,6, Other general insurance expenses,95 0.5, Taxes, licenses fees,66 8., Total other expenses incurred,0,.,0,.. Aggregate write-ins for deductions 0. Gain from underwriting before dividends or refunds,,88.9,,88.9. Dividends or refunds. Gain from underwriting after dividends or refunds,,88.9,, 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) Includes $ reported as "Contract, membership other fees retained by agents.

76 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE H - ACCIDENT AND HEALTH EXHIBIT (Continued) Other Individual Contracts Credit Accident Health 5 6 Non-Renewable Total Group Accident Health (Group Individual) Collectively Renewable Non-Cancelable Guaranteed Renewable for Stated Reasons Only PART. - RESERVES AND LIABILITIES A. Premium Reserves:. Unearned premiums,85,85. Advance premiums. Reserve for rate credits. Total premium reserves, current year,85,85 5. Total premium reserves, prior year 59,890 59, Increase in total premium reserves (56,505) (56,505) B. Contract Reserves:. Additional reserves (a). Reserve for future contingent benefits. Total contract reserves, current year. Total contract reserves, prior year. 5. Increase in contract reserves C. Claim Reserves Liabilities:. Total current year 9,958 9,958. Total prior year 89,8 89,8. Increase 80, 80, 8 Other Accident Only 9 All Other PART. - TEST OF PRIOR YEAR'S CLAIM RESERVES AND LIABILITIES. Claims paid during the year:. On claims incurred prior to current year 699,9 699,9. On claims incurred during current year,,,,. Claim reserves liabilities, December, current year:. On claims incurred prior to current year. On claims incurred during current year 9,958 9,958. Test:. Line.. 699,9 699,9. Claim reserves liabilities, December, prior year 89,8 89,8. Line. minus Line. (9,8) (9,8) PART. - REINSURANCE A. Reinsurance :. Premiums written. Premiums earned. Incurred claims. Commissions B. Reinsurance :. Premiums written 0,08, 5,059 9,99,5. Premiums earned,6,9 5,059,08,680. Incurred claims 5,, 5,,. Commissions,96,58,96,58 (a) Includes $ premium deficiency reserve.

77 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE H - PART 5 - HEALTH CLAIMS Medical Dental Other Total A. :. Incurred Claims. Beginning claim reserves liabilities. Ending claim reserves liabilities. Claims paid B. Reinsurance: 5. Incurred Claims 6. Beginning claim reserves liabilities. Ending claim reserves liabilities 8. Claims paid C. Reinsurance: 9. Incurred Claims 0. Beginning claim reserves liabilities NONE. Ending claim reserves liabilities. Claims paid D. Net:. Incurred Claims. Beginning claim reserves liabilities 5. Ending claim reserves liabilities 6. Claims paid E. Net Incurred Claims Cost Containment Expenses:. Incurred claims cost containment expenses 8. Beginning reserves liabilities 9. Ending reserves liabilities 0. Paid claims cost containment expenses

78 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5 5 6,5 XXX. 00 9,9 8,96, 5,880,59 6,508 5,88,,9,08 XXX ,809 6,9,680,96 05,9,65,6,6,0 8,899 XXX. 009,,5 9,960 8,85 69,600,69 6,0 5,9 5,9 6,85 XXX ,9,55,689 8,06 69,8 6,66,965 6,8 6,06 8,8 XXX ,9 0,505 6,6 0, 9,69 0,09 8,0,5 6,56,8,96 XXX. 0 50,0 8,99 56,6,959 9,8,95 8,66,60,9,,6 XXX ,95 0,59 90,98 0,9 80,50,,9,98,65 6, 55,59 XXX 9. 0,0,0,58,0 6,9 58,96 66,9 5,9,95,9,55 5,66 8,56 XXX 0. 05,899,556,60,08 95, 66,60 59, 9,66,6 9,6 8,500,96,65 XXX. 06,98,8,68,686 59, ,88 8,696 8,66,8,06,89,6,88 XXX. Totals XXX XXX XXX,,58,,,,85 6,8 6,5,98 88,5 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 8 8 () (8) 5 5 (6) (5) (9) XXX , XXX. 008,6,9,55, XXX ,9 6,05,88, XXX ,50 5,68 5, 5, XXX 6. 0,8,09 0,0 9,605 98, ,08 XXX. 0, 5,5 8,59 8,,650,5,0, 9 80,0 XXX ,5 6,99 60,8 5,65 6,850 6,5 6,5 5,58,666,6 9,6 XXX ,88,5 0,9 0,5,,6,8 5,8 5,,59,80 XXX 0. 05,0 08,06,6,5 6,5,56 8,6,,506 9,8 9,95 XXX. 06 9,89 88,55 6, 500,,,8 5,85,68 9,088 5,5,96 XXX. Totals 8,95 6,608,6,0 959,098 86,68,568, 95,6 0,809,66,988 XXX Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX (6) ,85 5,58, ,06 6,6 9, ,58 0,, (5) 5. 00, 0,9, (6) ,669,59 8, , ,06 8,586 5, , ,95 568,9 65, ,0, ,5 800,88 00, ,5 8,9, ,80,898,086,08 9, ,00 6,55 0,0. 06,56,898,6,055 0, ,9 8,85,685. Totals XXX XXX XXX XXX XXX XXX 9,55 XXX 8, 9,8 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.

79 Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 Two Year. Prior () (5). 00,9,8,5,855,88,8,699,,0, XXX 6,69,05 8,00 8,5 8,695 8,550 8,58 8, 8, XXX XXX 0,9,95,89,55,,98,9,69 (65) XXX XXX XXX,,8 5, 5,9 5,8,,05 (6), XXX XXX XXX XXX,85,0,5 5,9 5,909,,,9. 0 XXX XXX XXX XXX XXX 0,05,90,59,656, XXX XXX XXX XXX XXX XXX 55, 58,00 60,8 6,66,9 5, XXX XXX XXX XXX XXX XXX XXX 98,5 9,8 98,9 5, XXX XXX XXX XXX XXX XXX XXX XXX 85,0 9,59 6,88 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,06 XXX XXX. Totals 6,8,566 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 XXX XXX ,608,8,96,6,69,6,66,88,909 XXX XXX. 008 XXX,,86 5,8,00,80,9 8,00 8,0 8,56 XXX XXX. 009 XXX XXX,8,0 9,056 0,906,0,5,90,5 XXX XXX XXX XXX XXX 6,55 9,896,98,999,9 5,0 6,6 XXX XXX 6. 0 XXX XXX XXX XXX, 8,0 0,6,,,0 XXX XXX. 0 XXX XXX XXX XXX XXX, 8,86,565,5,6 XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX,05 8,89 5, 5,08 XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 6,50 6,690, XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,906,5 XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,668 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 () 6 () 8 (8). 00, XXX, XXX XXX,, (98) XXX XXX XXX 5, () 6. 0 XXX XXX XXX XXX,966,859 (999), XXX XXX XXX XXX XXX,5 6,565,, XXX XXX XXX XXX XXX XXX 9,99 9,8,5, XXX XXX XXX XXX XXX XXX XXX 8,,65, XXX XXX XXX XXX XXX XXX XXX XXX 8,86 9,5. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,

80 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY Schedule P - Part A - Homeowners/Farmowners N O N E Schedule P - Part B - Private Passenger Auto Liability/Medical N O N E 5, 6

81 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. 00,6 0,50,66 0, 8,8,68,9,08 9,, ,,050,,6,008 8,50,0,5,0,6, , 8,5,86 5,9,,680 6,99,65,860,, ,809 6,6,56,695 5,9,959,56,66,,9, ,9 8,09,898 0,569 8,66,,58,,005,58, ,65 65,88,8 6,89 56, 0,58 9,60,588,6,56 6, ,5 9,9 0, 9,8,0,,8,95,99 5 9,8 6, ,56 9,666,850 65,60 59,6 9,9 8,560,9,68,556 8, ,,9,58 80,8 6,8,0 6,56,05,8,869, ,59,98,86 6,9 8,0,, ,996 9,580. Totals XXX XXX XXX 9,556 9,06,5 6,9,9 9,8 6,888 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 (9) (9) (5) () () Number of Claims Outsting (8) (5) ,60,05 (0) (8) ,66 96 (6) , (,8) (,05) 6 () ,066 5,56 (,95) (,) (,00) (,68) ,8,69,8,08,869, , ,56,9,05 0,98,98,650,,586,,086 6, ,80 8,66,0 60,9,89,5 5,5,658,8,6 0,8, ,09 0,955,99 05,,60,09 9,5,0,,,58,9. Totals 66,8, 6,0 90,0,9 0,506 6,68, 9,0,58 8,005,9 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX () (). 00 5,50,9, ,6 5,80, , 5,9, ,66,, ,55,9, ,965,6, (59) , 09,59, , ,9,89, , ,68 95,56, ,85, ,00 89,506 56, ,659,859. Totals XXX XXX XXX XXX XXX XXX XXX,50 6,50

82 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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,5 XXX. 00 8,9,6 5,99, ,90 5,99,5 8,98,,50, 96 90,995, ,85 5,89,556 6,,8,,09,9,009 65,06, ,88 55,9 5,590 5,96,5,96,,,0 68,85, ,8,09,89,58 8,686 5,8 5,9,0,5,588,889,. 0 9, 6,85,6 6,06 56,8 9,690 8,59 8,06,8,0 8,55, , 5,5 5,90 09,8 99,95,6 5,5,6 6,80 5,69,6, ,5 0,08,0,8 8,506, 8,89,6 6,8,8 6,68 6, ,5 50,868 8,8 6,0 0,88 0,68 8,59,90,8,05 8,06,0. 06,5 55,59,86 60, 5,86,658 5,6, ,8 0,0. Totals XXX XXX XXX 68,0 55, 9,55 8,98 0,0 5,805 9,9 88,90 XXX Losses Unpaid Defense Cost Containment Unpaid Adjusting Case Basis Bulk + IBNR Case Basis Bulk + IBNR Other Unpaid Prior 5 Salvage Subrogation Anticipated Total Net Losses Expenses Unpaid Number of Claims Outsting ,00, ,006,9,6, ,8,5,8, ,9,,69, ,85,,8, ,89 0,0 0, 9,906,55, , , 55,59,96,59 6,06,,6,0,595, ,588 85,6 89,8 8,,96,50,98,00 8,6, ,6 88,988 0,99 55,0,56,559 6,88 6,06 8,5,8. Totals,60 69,0 6,88 5,99 6,,56,9,5 0,8,6 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX. 00,699, (). 008,60,55, () ,56 5,89, (90) , 6,908, (8) 0 () ,669 5, 5, (). 0 9,85 88,565 9, ,0 65,89, , , 6,9, ,95 (6) ,85,8 6, ,0,89,60. 06,56 6,8 0, ,69, 8,80. Totals XXX XXX XXX XXX XXX XXX 6,9 XXX 0,5,5 8

83 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 ,, 0,90, ,, ,885,0,5,09, ,9 5,08,58 0,8,889,05, , ,56,65,909 6,, , Totals XXX XXX XXX,60,8,60, ,9 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 (8) () (0) (0) ,8, ,08,85 5,0, , , 6,,86, ,88, , Totals 5,8 0,95 0,596 6,505,69,0,8,8, ,0 568 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX ,6, () 8. 0, ,8 5, ,50 9,85 6, , ,886 5,60, ,99 6. Totals XXX XXX XXX XXX XXX XXX XXX 8,0,06 9

84 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - OCCURRENCE ($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 ,5,0, ,09,85 0, ,95,58 95,88, 9. 0,0, ,9, Totals XXX XXX XXX 5,8,8,00 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 () (5) (55) (68) (66) (6) () Totals 869,06 (5) Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX () (5) 6. 0, (55). 0,6, (68) 8. 0,, (66) (6) () Totals XXX XXX XXX XXX XXX XXX XXX (5) 0

85 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - CLAIMS-MADE ($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 ,86,5 9,6, ,60, 60,596, ,9, ,99, , Totals XXX XXX XXX,506,,9 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 () (55) (5). 0 5 (5) 8. 0 () (06) (95) (8). Totals 906 (906) Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX ,6, () 5. 00,596, (55) (8) 9.9. (9.9) (5). 0 5 () (5.) (5) (0).5 8. (.) () (6). 9.6 (.6) (06) ().. (.6) (95) (). 8.0 (8.0) (8). Totals XXX XXX XXX XXX XXX XXX XXX (906)

86 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. 00 XXX. 008 XXX. 009 XXX XXX 6. 0 XXX. 0 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 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 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

87 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 (9) () 6 () XXX ,5,06,6, ,968 6, ,0 5,08,, ,50,9,,8 0,9,9,006 09, ,9 8,509,90,09,0 5,, ,90, ,896,9,,5 9,88 6,5 5, ,06, ,8 8,0, 55, 5,980 5, 5,,,0 6,885, ,,95,5,89,5 8,5,8, ,6, ,56 6,5 8,59,8,9 6,60 5, ,86, ,888 5,8 5,0 8,65 5,6,965, 9 5,6,. 06,95 6,5 6,88 6,,9,58, ,88,588. Totals XXX XXX XXX 5,650,96 6,6,6 5,60 5,0,55,80 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 (0) (9) () Number of Claims Outsting ,,50,59, ,9 6,0,99, ,05. 0,806,6 8,665 8,6 60,905,6 00 5,0 8. 0,988 5,68 8,509 6,5,55,0,859,98,59,09 5, ,0 9,98 5,6 8,68,6,99,9,060,58,8 8, ,088 5,65 9,89 8,559,0,585 5,5,60,,09 9, ,5 9,050 6, 9,9,069,600 6,5,8,,5,0 8. Totals 56,96 9,5 56,555 0,06 0,05 8,6 6,6 5,86 0,99 9, 8,68,500 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX (). 00 6,9 5, ,5.9, ,6 8, ,8,5, , 0,88, ,99,558, , 80,68 5, , ,9 0,60 0, , ,09,0, ,085, ,605 65,99, ,8, ,8 8,09 6, ,55 5,0. Totals XXX XXX XXX XXX XXX XXX,08 XXX 6,0,0

88 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 ,0, ,608 9,5 8,96,,0, , 0,65,6,,085 5,0, ,5,58,66,,09,96 0,989 80, ,6 6,9 0,0,05 0,5,06 9,9 99,00, ,6,5 0,55,89,8,0,56,,0. Totals XXX XXX XXX 5,5,59 5,8,9 805,90 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 ,86,99 (69) (5) ,99,55 (,) (,),008 90,65, ,068 0,5,58,59,995,8,88, , ,860 6,06 0, 6,60 5,8,,60,95,00 8 0,5 68. Totals 6,85,6 0,6 6,59, 9,85,05 9,8,69,9 5,5,000 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX ,5, , 6, ,88, (0) ,96,85, ,90 9,, ,60, ,5 6,0, ,,85. Totals XXX XXX XXX XXX XXX XXX XXX 8, 6,96

89 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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,9, XXX ,0 90,8 8, 6,09 5,8,89, ,6 XXX ,650 5,5,98 9,556 9,,9, ,98 XXX. Totals XXX XXX XXX 86,96 65,6,900,6,96,059,59,95 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 ,68,008,, ,68,99 6,50, , ,96 5. Totals 0,9 5,80 8,0,6,06 8,5 95,08 8 0, 60 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX ,,068, , 6, 9, , 0. Totals XXX XXX XXX XXX XXX XXX XXX 9,8 9 5

90 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 (0) (6) 6 0 5,86 XXX. 05,0,96 5,6 8,6,99,08 906,098 89,85,9, ,8 5, 0,5 8,6, ,80 6,95,56. Totals XXX XXX XXX 56,00 5,65,66,809,696, 8,,5 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 56,6, ,98, ,860,6 5,0, ,8 89. Totals,09,9 0,66 8, ,68,00 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX. 05,905 9,, ,6 0,589 9, ,96 6. Totals XXX XXX XXX XXX XXX XXX XXX,6 9 6

91 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 XXX. 05 0,85 9,,0,58, XXX. 06 0,05,90,50, XXX. Totals XXX XXX XXX,65, 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 ,9, ,06. Totals,09 98,6,9 66 6,0 80 8,0 Number of Claims Outsting Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX ,60, ,65,95, Totals XXX XXX XXX XXX XXX XXX XXX,05 6

92 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. 05 0,855,998 6,85,66 9,908 0,5 XXX. 06 6,95 6,59 0,9,0, ,66 XXX. Totals XXX XXX XXX,, ,0 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,09, () (9) () () (50). 06,58,996 (9) (5) 8 8. Totals 5,9 5, Number of Claims Outsting Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX (5) 6. 05,0 0,006, (8) (). 06 9,5 5,, (). Totals XXX XXX XXX XXX XXX XXX XXX

93 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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, 50, 5, 5

94 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 ,585, ,, ,, ,, ,869, ,86, ,59, ,50,595,55,00 9,80, ,,6,5,9, ,9,69,6,90, ,8,8 5, Totals XXX XXX XXX, 6,5 9, 8,50 69,856 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 () (0) 50 5 () () (8) Number of Claims Outsting ,5,06 (8) (09) ,509, ,5, ,50,6,6, ,0,55 9,56, ,50,06 0 0, ,8,5 0, 9, ,95, , ,6,5,0,8 5 6,,6 8, Totals 8,99,9,608,8,86,5,85,99,5,00 9,0 9 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX (). 00, ,98, ,965, ,, ,0 5, ,98,8, ,,, , ,0,5, , , 5,5, , 9. Totals XXX XXX XXX XXX XXX XXX XXX,86,69 5

95 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 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 5

96 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. 05 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 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 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 55

97 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 XXX. 05 8,,996 5,5 6,8,8 5,0 9,60. 06,5 5,95,580 0,88,068,60 0,89. Totals XXX XXX XXX 5,65 6,5 6,00 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 ,0 8, ,6 5,9. Totals 6 5,0 8, ,6 5,9 Total Losses Loss Expenses Incurred 6 8 Net Loss Loss Expense Percentage (Incurred /Premiums Earned) 9 0 Net Nontabular Discount Loss Loss Expense Net Balance Sheet Reserves After Discount 5 6 Inter- Company Pooling Participation Percentage Losses Unpaid Loss Expenses Unpaid. Prior XXX XXX XXX XXX XXX XXX XXX. 05 6,8,8 5, , 8,9 80, ,56 5. Totals XXX XXX XXX XXX XXX XXX XXX 5,

98 Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. 009 XXX XXX XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Prior XXX. Totals SCHEDULE P - PART B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL. 009 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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 C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL Two Year. Prior (5) () (). 00,6,8,90,,5,06,990,969,,09 () XXX,,0,,,,0,00,6, XXX XXX,955,89,659,89,96,69,58,9 () XXX XXX XXX,86,865,8,098,900,66,09 8, XXX XXX XXX XXX,08,65,0,56,666, XXX XXX XXX XXX XXX,65 5,5 6,6,, XXX XXX XXX XXX XXX XXX 5, 8,05 9,80 0,66 86, XXX XXX XXX XXX XXX XXX XXX 9,08 0,56,,6, XXX XXX XXX XXX XXX XXX XXX XXX 8,05,9 5,869 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 55,59 XXX XXX. Totals 0,585 0,5 SCHEDULE P - PART D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION). Prior () () () () () () () (8) XXX,6,680,,00,96,0,968,008,98 (80) (0). 009 XXX XXX,8,9,96,06,99,5,96,0 (9) (8) XXX XXX XXX,995,6,950,,86,6,088 (5) (98) 6. 0 XXX XXX XXX XXX,,9 5,069,999 5,5,50 (595) (9). 0 XXX XXX XXX XXX XXX,5 8,08,9 8,68 8, (96) XXX XXX XXX XXX XXX XXX,5,98,0,69 () 9. 0 XXX XXX XXX XXX XXX XXX XXX,5, 0,55 (,69) (,69) XXX XXX XXX XXX XXX XXX XXX XXX,56 5,9,6 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 99,55 XXX XXX. Prior XXX. 009 XXX XXX XXX XXX XXX SCHEDULE P - PART E - COMMERCIAL MULTIPLE PERIL. Totals (,80) (,05) 6. 0 XXX XXX XXX XXX 8 8 (). 0 XXX XXX XXX XXX XXX (6) () 8. 0 XXX XXX XXX XXX XXX XXX (8) () 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX, 6,9,09 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,08 XXX XXX. Totals,996 (8) 5

99 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 Two Year. 009 XXX XXX (0) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX (8) (6) 8. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX (6) XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals 9 6 SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX () XXX XXX XXX 66 0 (8) XXX XXX XXX XXX (8) (8) (0). 0 XXX XXX XXX XXX XXX 66 0 () () (9) 8. 0 XXX XXX XXX XXX XXX XXX 66 6 (0) (6) (96) 9. 0 XXX XXX XXX XXX XXX XXX XXX 8 6 (6) () (5) XXX XXX XXX XXX XXX XXX XXX XXX () () XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX () XXX XXX. Totals (5) (9) SCHEDULE P - PART G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY). Prior XXX. 009 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 50 9 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 9 XXX XXX. Totals 9 SCHEDULE P - PART H - SECTION - OTHER LIABILITY - OCCURRENCE. Prior (0) () (8) () XXX XXX XXX ,5,,9,56, XXX XXX XXX,,08,9,955,6,65, XXX XXX XXX XXX,9,086,09,0,58, XXX XXX XXX XXX XXX,0 6, 6, 5,08 5,05 (,0) 8. 0 XXX XXX XXX XXX XXX XXX,8 8,0 8,5 0,59,, XXX XXX XXX XXX XXX XXX XXX,8 0,08,56, XXX XXX XXX XXX XXX XXX XXX XXX,5,685 (,) XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 5,6 XXX XXX. Totals 5,55,. Prior XXX SCHEDULE P - PART H - SECTION - OTHER LIABILITY - CLAIMS-MADE. 009 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX (80) (5) 9. 0 XXX XXX XXX XXX XXX XXX XXX,6,6, XXX XXX XXX XXX XXX XXX XXX XXX 6,,9 85 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,6 XXX XXX. Totals,

100 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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,096,0, XXX XXX XXX XXX XXX XXX XXX XXX,0,89 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 9,608 XXX XXX. Totals 0 SCHEDULE P - PART J - AUTO PHYSICAL DAMAGE. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,09, 8 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 8,95 XXX XXX. Totals SCHEDULE P - PART K - FIDELITY/SURETY. Prior XXX XXX XXX XXX XXX XXX XXX 5 0 () (). 05 XXX XXX XXX XXX XXX XXX XXX XXX (8) XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX, XXX XXX. Totals () () SCHEDULE P - PART L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH). Prior XXX XXX XXX XXX XXX XXX XXX,0 (6) (88) 8 (,6). 05 XXX XXX XXX XXX XXX XXX XXX XXX 5,,0 (69) XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,59 XXX XXX. Totals (6) (,6) SCHEDULE P - PART M - INTERNATIONAL. Prior XXX. 009 XXX XXX XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. Totals 59

101 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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

102 Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 Two Year. Prior () () () () () XXX XXX XXX (5) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 8,0,995 98, XXX XXX XXX XXX XXX XXX XXX XXX,989,8 9 XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,5 XXX XXX. Totals,909, SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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. 05 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 5,966,, (,6). 05 XXX XXX XXX XXX XXX XXX XXX XXX 5,8 5,0 (,8) XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 80,86 XXX XXX. Totals (,8) (,6) 6

103 Years in Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART A - HOMEOWNERS/FARMOWNERS CUMULATIVE PAID NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) Prior XXX. 009 XXX XXX NONE XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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. Prior XXX SCHEDULE P - PART B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL. 009 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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 ,89,80,9,96,9,5,, XXX 68,,0,0,88,9,968,89,05,00, XXX XXX,,9,09,,0,,8,5, XXX XXX XXX 6 8,5,65,6,80,699, XXX XXX XXX XXX 86 8,,80,8,, XXX XXX XXX XXX XXX,,06 5,59,0,9, XXX XXX XXX XXX XXX XXX,6,9 6,5 9,0 5,88, XXX XXX XXX XXX XXX XXX XXX,6,898, 5,008, XXX XXX XXX XXX XXX XXX XXX XXX,88,9 6,56 5,8. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 8,90,, SCHEDULE P - PART D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION). Prior 000 () () () () () () () () () XXX 9,8,659,86,85,866,88,9, XXX XXX 8,98,69,89,568,695,89,896, XXX XXX XXX 88,08,85,,56,5,909, XXX XXX XXX XXX 95,569,5,09,6,6, XXX XXX XXX XXX XXX,5,96 5,9 6,5,8 6, XXX XXX XXX XXX XXX XXX, 6,856 9,8,08, XXX XXX XXX XXX XXX XXX XXX,006 0,0 6,0, XXX XXX XXX XXX XXX XXX XXX XXX 6,899,9,5, XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,55 9,05,90. Prior XXX. 009 XXX XXX XXX XXX XXX SCHEDULE P - PART E - COMMERCIAL MULTIPLE PERIL 6. 0 XXX XXX XXX XXX 0. 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,0, XXX XXX XXX XXX XXX XXX XXX XXX XXX,

104 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 Number of Claims Closed With Loss Payment. 009 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Number of Claims Closed Without Loss Payment SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 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. 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. 00 XXX XXX. 008 XXX XXX XXX. 009 XXX XXX XXX XXX XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX XXX XXX XXX. 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 9 9 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 0 XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 9 XXX XXX SCHEDULE P - PART H - SECTION - OTHER LIABILITY - OCCURRENCE. Prior 000 () () (0) , XXX XXX XXX ,88, XXX XXX XXX 65 9,5,5,9,5, XXX XXX XXX XXX 80,9,,,9,,9. 0 XXX XXX XXX XXX XXX 95,86,808,5, XXX XXX XXX XXX XXX XXX 66 00,06 5,60, XXX XXX XXX XXX XXX XXX XXX 0,50 5,09, XXX XXX XXX XXX XXX XXX XXX XXX,0, XXX XXX XXX XXX XXX XXX XXX XXX XXX,8,85 6. Prior SCHEDULE P - PART H - SECTION - OTHER LIABILITY - CLAIMS-MADE. 008 XXX. 009 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 0,6, XXX XXX XXX XXX XXX XXX XXX XXX 6, XXX XXX XXX XXX XXX XXX XXX XXX XXX,0 9 6

105 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. 05 XXX XXX XXX XXX XXX XXX XXX XXX,56,09 XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 0,909 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,,89, XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,8,9, SCHEDULE P - PART K - FIDELITY/SURETY. Prior XXX XXX XXX XXX XXX XXX XXX XXX XXX. 05 XXX XXX XXX XXX XXX XXX XXX XXX 5 60 XXX XXX. 06 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 000 (6) () XXX XXX. 05 XXX XXX XXX XXX XXX XXX XXX XXX,05,5 XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,66 XXX XXX SCHEDULE P - PART M - INTERNATIONAL. Prior 000 XXX XXX. 00 XXX XXX. 008 XXX XXX XXX. 009 XXX XXX XXX XXX XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX XXX XXX. 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 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 6

106 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 65

107 Years in Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 000 () () () () () 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 6 SCHEDULE P - PART R - SECTION - PRODUCTS LIABILITY - CLAIMS-MADE. Prior XXX. 009 XXX XXX XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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. 05 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 000,, 686, XXX XXX XXX XXX XXX XXX XXX XXX,6 5,0 96,098,6. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,60 0,896,000 66

108 Years in Which Losses Were Incurred. Prior. 00 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. 009 XXX XXX NONE XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX. Prior XXX 0 SCHEDULE P - PART B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL. 009 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX NONE XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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 5 () (). 008 XXX, () 80 8 (0). 009 XXX XXX, XXX XXX XXX () 6. 0 XXX XXX XXX XXX, (6). 0 XXX XXX XXX XXX XXX 99, (60) 8. 0 XXX XXX XXX XXX XXX XXX,8,55, XXX XXX XXX XXX XXX XXX XXX 5,88,9, XXX XXX XXX XXX XXX XXX XXX XXX 6,9,0. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,9 SCHEDULE P - PART D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION). Prior XXX (). 009 XXX XXX 58 6 () XXX XXX XXX,8 89 (9) 6. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX,66, XXX XXX XXX XXX XXX XXX 6,8,58, XXX XXX XXX XXX XXX XXX XXX,68,8, XXX XXX XXX XXX XXX XXX XXX XXX, 0, XXX XXX XXX XXX XXX XXX XXX XXX XXX 8,8. Prior XXX. 009 XXX XXX XXX XXX XXX SCHEDULE P - PART E - COMMERCIAL MULTIPLE PERIL 6. 0 XXX XXX XXX XXX. 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,60, XXX XXX XXX XXX XXX XXX XXX XXX XXX,

109 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART F - SECTION - MEDICAL PROFESSIONAL LIABILITY - OCCURRENCE Years in Which Losses Were Incurred. Prior. 00 BULK AND IBNR RESERVES ON NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) XXX XXX XXX 6 8 () XXX XXX XXX 9 (5) 6. 0 XXX XXX XXX XXX 99 9 (9). 0 XXX XXX XXX XXX XXX 8 () 8. 0 XXX XXX XXX XXX XXX XXX 5 () 9. 0 XXX XXX XXX XXX XXX XXX XXX 5 (6) XXX XXX XXX XXX XXX XXX XXX XXX 5 (). 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 () XXX XXX XXX 66 (55) 6. 0 XXX XXX XXX XXX (5). 0 XXX XXX XXX XXX XXX 66 0 (5) 8. 0 XXX XXX XXX XXX XXX XXX 66 6 () 9. 0 XXX XXX XXX XXX XXX XXX XXX 8 6 (06) XXX XXX XXX XXX XXX XXX XXX XXX (95). 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX (8) SCHEDULE P - PART G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY). Prior XXX. 009 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 60 SCHEDULE P - PART H - SECTION - OTHER LIABILITY - OCCURRENCE. Prior (0) (9) XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX,6,5 (,6) XXX XXX XXX XXX XXX,,6, XXX XXX XXX XXX XXX XXX,99 5,,066, XXX XXX XXX XXX XXX XXX XXX 0,,90 6, XXX XXX XXX XXX XXX XXX XXX XXX 0,0,5. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 8,58. Prior XXX SCHEDULE P - PART H - SECTION - OTHER LIABILITY - CLAIMS-MADE. 009 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX XXX 5 9 () 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 9 (6) 9. 0 XXX XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX XXX XXX XXX XXX,9, XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,

110 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5,8. 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 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,6 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 80 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,89 (50). 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX SCHEDULE P - PART M - INTERNATIONAL. Prior XXX. 009 XXX XXX XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 69

111 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 0

112 Years in Which Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 8 () XXX XXX XXX 8 5 () XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 690 9, 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 XXX XXX XXX NONE 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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. 05 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 5,9. 05 XXX XXX XXX XXX XXX XXX XXX XXX 6, XXX XXX XXX XXX XXX XXX XXX XXX XXX 5,5

113 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY Schedule P - Part 5A - Homeowners/Farmowners - Section N O N E Schedule P - Part 5A - Homeowners/Farmowners - Section N O N E Schedule P - Part 5A - Homeowners/Farmowners - Section N O N E Schedule P - Part 5B - Private Passenger Auto Liability/Medical - Section N O N E Schedule P - Part 5B - Private Passenger Auto Liability/Medical - Section N O N E Schedule P - Part 5B - Private Passenger Auto Liability/Medical - Section N O N E,

114 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL SECTION 00 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior ,,,98,50,5,55,56, XXX 6,969,,59,5,598,65,66, XXX XXX 88,85,,9,80,5,5, XXX XXX XXX 86,5,9,8,500,59, XXX XXX XXX XXX 8,,8,8,8,9. 0 XXX XXX XXX XXX XXX,56,6,66,66, XXX XXX XXX XXX XXX XXX,0,9 5, 5, XXX XXX XXX XXX XXX XXX XXX,6,68 5, XXX XXX XXX XXX XXX XXX XXX XXX,0 6, 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,69, XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX XXX XXX XXX, XXX XXX XXX XXX XXX XXX XXX XXX,90,0. 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,,,6,8,98,50,5, XXX,5,66,9,,,0,06,99,. 009 XXX XXX,5,,6,696,8,9,, XXX XXX XXX,50,80,8,98,956,95, XXX XXX XXX XXX,,6,90,9,88, XXX XXX XXX XXX XXX, 6,80 6,59 6,05 6, XXX XXX XXX XXX XXX XXX,9 6,659 6,55 6, XXX XXX XXX XXX XXX XXX XXX 6, 8,0 8, XXX XXX XXX XXX XXX XXX XXX XXX,8, XXX XXX XXX XXX XXX XXX XXX XXX XXX 9,

115 Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART 5D - WORKERS' COMPENSATION (EXCLUDING EXCESS WORKERS COMPENSATION) SECTION 00 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior XXX 98,58,6,0,,,69,0,. 009 XXX XXX,,96,589,06,6,80,8, XXX XXX XXX,65,68,900,005,0,05, XXX XXX XXX XXX,6,8,55,0,5,8. 0 XXX XXX XXX XXX XXX,58 5, 6, 6, 6, XXX XXX XXX XXX XXX XXX 6,8 9,9 0,0, XXX XXX XXX XXX XXX XXX XXX 8,99,6, XXX XXX XXX XXX XXX XXX XXX XXX,5,5. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 9, 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,606, XXX XXX XXX XXX XXX XXX XXX,,89, XXX XXX XXX XXX XXX XXX XXX XXX 6,980, XXX XXX XXX XXX XXX XXX XXX XXX XXX,8 Years in Which Premiums Were Earned Losses Were Incurred Prior 5 SECTION CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END XXX,60,89,855,869,8,89,89,896, XXX XXX,9,09,9,,8,00,0, XXX XXX XXX,95,8,06,66,98,0, 6. 0 XXX XXX XXX XXX,6,9,,6,8,. 0 XXX XXX XXX XXX XXX 5,5 6, 6,90 6,966, XXX XXX XXX XXX XXX XXX 0,05,69,86, XXX XXX XXX XXX XXX XXX XXX,6 6,6 6, XXX XXX XXX XXX XXX XXX XXX XXX 8,5,0. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 0,

116 Years in Which Premiums Were Earned Losses Were Incurred. Prior. 00 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART 5E - COMMERCIAL MULTIPLE PERIL SECTION 00 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END XXX. 009 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 9. 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 95 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 XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 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 XXX XXX 98 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 XXX XXX XXX 6. 0 XXX XXX XXX XXX. 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 659 6

117 Years in Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART 5F - MEDICAL PROFESSIONAL LIABILITY - OCCURRENCE SECTION A 00 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior XXX. 009 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 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 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. 009 XXX XXX XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 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 XXX. 009 XXX XXX XXX XXX XXX XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 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

118 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY Schedule P - Part 5F - Medical Professional Liability - Claims-Made - Section B N O N E Schedule P - Part 5F - Medical Professional Liability - Claims-Made - Section B N O N E Schedule P - Part 5F - Medical Professional Liability - Claims-Made - Section B N O N E 8

119 Years in Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE SECTION A 00 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior,6 6, XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 6 98,06,,89,. 0 XXX XXX XXX XXX XXX,59,658,5,8, XXX XXX XXX XXX XXX XXX,0,59,596, XXX XXX XXX XXX XXX XXX XXX,,0, 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,8, (5) () XXX XXX XXX XXX XXX XXX 96,5,8,5,8, 6. 0 XXX XXX XXX XXX,95,,5,55,560,6. 0 XXX XXX XXX XXX XXX,9,08,0,69, XXX XXX XXX XXX XXX XXX,5,006,00, XXX XXX XXX XXX XXX XXX XXX,95,, XXX XXX XXX XXX XXX XXX XXX XXX,9,. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,

120 Years in Years in Which Premiums Were Earned Losses Were Incurred. Prior. 00 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS-MADE SECTION B 00 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END XXX. 009 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 9 Years in Years in Which Premiums Were Earned Losses Were Incurred SECTION B NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END Prior XXX. 009 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 68 Years in Years in Which Premiums Were Earned Losses Were Incurred SECTION B CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END Prior XXX. 009 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 95,0. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,0 80

121 Years in Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE SECTION A 00 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. 009 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 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 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

122 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY Schedule P - Part 5R - Products Liability - Claims-Made - Section B N O N E Schedule P - Part 5R - Products Liability - Claims-Made - Section B N O N E Schedule P - Part 5R - Products Liability - Claims-Made - Section B N O N E 8

123 Years in Years in Which Premiums Were Earned Losses Were Incurred ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART 5T - WARRANTY SECTION 00 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END Prior XXX XXX XXX XXX XXX XXX XXX 686, XXX XXX XXX XXX XXX XXX XXX XXX 96,098 96, XXX XXX XXX XXX XXX XXX XXX XXX XXX 0, 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, XXX XXX XXX XXX XXX XXX XXX XXX 6, XXX XXX XXX XXX XXX XXX XXX XXX XXX 5, 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 6,5 (,90) XXX XXX XXX XXX XXX XXX XXX XXX 95,80 9, XXX XXX XXX XXX XXX XXX XXX XXX XXX 0,

124 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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. 00,6,6,6,6,6,6,6,6,6, XXX 5, 5, 5, 5, 5, 5, 5, 5, 5,. 009 XXX XXX 5, 5, 5, 5, 5, 5, 5, 5, XXX XXX XXX 8,809 8,809 8,809 8,809 8,809 8,809 8, XXX XXX XXX XXX 0,9 0,9 0,9 0,9 0,9 0,9. 0 XXX XXX XXX XXX XXX 69,65 69,65 69,65 69,65 69, XXX XXX XXX XXX XXX XXX 0,5 0,5 0,5 0, XXX XXX XXX XXX XXX XXX XXX 5,56 5,56 5, XXX XXX XXX XXX XXX XXX XXX XXX,,. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 5,59 5,59. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 5,59. Earned Premiums (Sch P-Pt. ),6 5, 5, 8,809 0,9 69,65 0,5 5,56, 5,59 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. 00 0,50 0,50 0,50 0,50 0,50 0,50 0,50 0,50 0,50 0, XXX,050,050,050,050,050,050,050,050, XXX XXX 8,5 8,5 8,5 8,5 8,5 8,5 8,5 8, XXX XXX XXX 6,6 6,6 6,6 6,6 6,6 6,6 6, XXX XXX XXX XXX 8,09 8,09 8,09 8,09 8,09 8,09. 0 XXX XXX XXX XXX XXX 65,88 65,88 65,88 65,88 65, XXX XXX XXX XXX XXX XXX 9,9 9,9 9,9 9, XXX XXX XXX XXX XXX XXX XXX 9,666 9,666 9, XXX XXX XXX XXX XXX XXX XXX XXX,9,9. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,98,98. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,98. Earned Premiums (Sch P-Pt. ) 0,50,050 8,5 6,6 8,09 65,88 9,9 9,666,9,98 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. 00 8,9 8,9 8,9 8,9 8,9 8,9 8,9 8,9 8,9 8, XXX 8,90 8,90 8,90 8,90 8,90 8,90 8,90 8,90 8, XXX XXX 50,85 50,85 50,85 50,85 50,85 50,85 50,85 50, XXX XXX XXX 60,88 60,88 60,88 60,88 60,88 60,88 60, XXX XXX XXX XXX 8,8 8,8 8,8 8,8 8,8 8,8. 0 XXX XXX XXX XXX XXX 9, 9, 9, 9, 9, 8. 0 XXX XXX XXX XXX XXX XXX,,,, 9. 0 XXX XXX XXX XXX XXX XXX XXX 5,5 5,5 5, XXX XXX XXX XXX XXX XXX XXX XXX 608,5 608,5. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,5,5. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,5. Earned Premiums (Sch P-Pt. ) 8,9 8,90 50,85 60,88 8,8 9,, 5,5 608,5,5 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. 00,6,6,6,6,6,6,6,6,6, XXX 5,99 5,99 5,99 5,99 5,99 5,99 5,99 5,99 5, XXX XXX 5,89 5,89 5,89 5,89 5,89 5,89 5,89 5, XXX XXX XXX 55,9 55,9 55,9 55,9 55,9 55,9 55, XXX XXX XXX XXX,09,09,09,09,09,09. 0 XXX XXX XXX XXX XXX 6,85 6,85 6,85 6,85 6, XXX XXX XXX XXX XXX XXX 5,5 5,5 5,5 5, XXX XXX XXX XXX XXX XXX XXX 0,08 0,08 0, XXX XXX XXX XXX XXX XXX XXX XXX 50,868 50, XXX XXX XXX XXX XXX XXX XXX XXX XXX 55,59 55,59. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 55,59. Earned Premiums (Sch P-Pt. ),6 5,99 5,89 55,9,09 6,85 5,5 0,08 50,868 55,59 XXX 8

125 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 XXX XXX XXX 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,885,885, XXX XXX XXX XXX XXX XXX XXX XXX 59,9 59,9. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 5,56 5,56. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 5,56. Earned Premiums (Sch P-Pt. ) 8,,,885 59,9 5,56 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 XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX,,,,, 8. 0 XXX XXX XXX XXX XXX XXX,85,85,85, XXX XXX XXX XXX XXX XXX XXX,0,0, XXX XXX XXX XXX XXX XXX XXX XXX 5,08 5, XXX XXX XXX XXX XXX XXX XXX XXX XXX,65,65. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,65. Earned Premiums (Sch P-Pt. ),,85,0 5,08,65 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. 00,5,5,5,5,5,5,5,5,5, XXX 6,968 6,968 6,968 6,968 6,968 6,968 6,968 6,968 6, XXX XXX,50,50,50,50,50,50,50, XXX XXX XXX 0,9 0,9 0,9 0,9 0,9 0,9 0, XXX XXX XXX XXX 6,896 6,896 6,896 6,896 6,896 6, XXX XXX XXX XXX XXX 89,8 89,8 89,8 89,8 89, XXX XXX XXX XXX XXX XXX 6, 6, 6, 6, 9. 0 XXX XXX XXX XXX XXX XXX XXX 95,56 95,56 95, XXX XXX XXX XXX XXX XXX XXX XXX 0,888 0, XXX XXX XXX XXX XXX XXX XXX XXX XXX,95,95. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,95. Earned Premiums (Sch P-Pt. ),5 6,968,50 0,9 6,896 89,8 6, 95,56 0,888,95 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. 00 6,68 6,68 6,68 6,68 6,68 6,68 6,68 6,68 6,68 6, XXX 6,0 6,0 6,0 6,0 6,0 6,0 6,0 6,0 6, XXX XXX,9,9,9,9,9,9,9, XXX XXX XXX 8,509 8,509 8,509 8,509 8,509 8,509 8, XXX XXX XXX XXX,9,9,9,9,9,9. 0 XXX XXX XXX XXX XXX 8,0 8,0 8,0 8,0 8, XXX XXX XXX XXX XXX XXX,95,95,95, XXX XXX XXX XXX XXX XXX XXX 6,5 6,5 6, XXX XXX XXX XXX XXX XXX XXX XXX 5,8 5,8. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,5 6,5. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,5. Earned Premiums (Sch P-Pt. ) 6,68 6,0,9 8,509,9 8,0,95 6,5 5,8 6,5 XXX 85

126 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART 6H - OTHER 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 XXX XXX XXX 6. 0 XXX XXX XXX XXX,0,0,0,0,0,0. 0 XXX XXX XXX XXX XXX 9,608 9,608 9,608 9,608 9, XXX XXX XXX XXX XXX XXX,,,, 9. 0 XXX XXX XXX XXX XXX XXX XXX 8,5 8,5 8, XXX XXX XXX XXX XXX XXX XXX XXX,6,6. 06 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. ),0 9,608, 8,5,6 9,6 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 XXX XXX XXX 6. 0 XXX XXX XXX XXX,96,96,96,96,96,96. 0 XXX XXX XXX XXX XXX 9,5 9,5 9,5 9,5 9, XXX XXX XXX XXX XXX XXX 0,65 0,65 0,65 0, XXX XXX XXX XXX XXX XXX XXX,58,58, XXX XXX XXX XXX XXX XXX XXX XXX 6,9 6,9. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,5,5. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,5. Earned Premiums (Sch P-Pt. ),96 9,5 0,65,58 6,9,5 XXX SCHEDULE P - PART 6M - INTERNATIONAL 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 XXX XXX NONE XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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 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 XXX XXX NONE XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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 86

127 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY 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 8

128 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 XXX,585,585,585,585,585,585,585,585, XXX XXX,,,,,,,, XXX XXX XXX,,,,,,, 6. 0 XXX XXX XXX XXX,,,,,,. 0 XXX XXX XXX XXX XXX,86,86,86,86, XXX XXX XXX XXX XXX XXX,50,50,50, XXX XXX XXX XXX XXX XXX XXX 9, 9, 9, XXX XXX XXX XXX XXX XXX XXX XXX 5,9 5,9. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX,8,8. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,8. Earned Premiums (Sch P-Pt. ) 6,585,,,,86,50 9, 5,9,8 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 XXX,5,5,5,5,5,5,5,5, XXX XXX,95,95,95,95,95,95,95, XXX XXX XXX,,,,,,, 6. 0 XXX XXX XXX XXX,6,6,6,6,6,6. 0 XXX XXX XXX XXX XXX,099,099,099,099, XXX XXX XXX XXX XXX XXX,595,595,595, XXX XXX XXX XXX XXX XXX XXX,6,6, XXX XXX XXX XXX XXX XXX XXX XXX,69, XXX XXX XXX XXX XXX XXX XXX XXX XXX,8,8. Totals XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX,8. Earned Premiums (Sch P-Pt. ) 6,5,95,,6,099,595,6,69,8 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 XXX XXX NONE XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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 XXX XXX NONE XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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

129 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART A - PRIMARY LOSS SENSITIVE CONTRACTS ($000 OMITTED) SECTION Schedule P - Part. Homeowners/Farmowners. Private Passenger Auto Liability/ Medical Total Net Losses Expenses Unpaid Net Losses Expenses Unpaid on Loss Sensitive Contracts Loss Sensitive as Percentage of Total Total Net Premiums Written. Commercial Auto/Truck Liability/ Medical 8,005 8,096. Workers Compensation 0,8 08,96 5. Commercial Multiple Peril 9,0, Medical Professional Liability - Occurrence (5) 9. Medical Professional Liability - Claims - Made (906) (6) 8. Special Liability 6 9. Other Liability - Occurrence 8,68 68,98 0. Other Liability - Claims-Made 5,5,8. Special Property 0,,05. Auto Physical Damage,68,89. Fidelity/Surety,0,5. Other 9 9,6 5. International 5 Net Premiums Written on Loss Sensitive Contracts 6 Loss Sensitive as Percentage of Total 6. Reinsurance - Nonproportional Property XXX XXX XXX XXX XXX XXX. Reinsurance - Nonproportional Liability XXX XXX XXX XXX XXX XXX 8. Reinsurance - Nonproportional Financial Lines XXX XXX XXX XXX XXX XXX 9. Products Liability - Occurrence 9,0 6, 0. Products Liability - Claims-Made. Financial Guaranty/Mortgage Guaranty. Warranty 5,6 8,59. Totals,988 60,0 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 XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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. 00 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 XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX

130 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY Schedule P - Part A - Section - Primary Loss Sensitive Contracts N O N E Schedule P - Part A - Section 5 - Primary Loss Sensitive Contracts N O N E 90

131 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE P - PART B - REINSURANCE LOSS SENSITIVE CONTRACTS ($000 OMITTED) SECTION Schedule P - Part. Homeowners/Farmowners. Private Passenger Auto Liability/Medical Total Net Losses Expenses Unpaid Net Losses Expenses Unpaid on Loss Sensitive Contracts Loss Sensitive as Percentage of Total Total Net Premiums Written. Commercial Auto/Truck Liability/Medical 8,005 8,096. Workers Compensation 0,8 08,96 5. Commercial Multiple Peril 9,0, Medical Professional Liability - Occurrence (5) 9. Medical Professional Liability - Claims - Made (906) (6) 8. Special Liability 6 9. Other Liability - Occurrence 8,68 68,98 0. Other Liability - Claims-Made 5,5,8. Special Property 0,,05. Auto Physical Damage,68,89. Fidelity/Surety,0,5. Other 9 9,6 5. International 6. Reinsurance - Nonproportional Property. Reinsurance - Nonproportional Liability 8. Reinsurance - Nonproportional Financial Lines 9. Products Liability - Occurrence 9,0 6, 0. Products Liability - Claims-Made. Financial Guaranty/Mortgage Guaranty. Warranty 5,6 8,59. Totals,988 60,0 5 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 XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX 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. 00 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 XXX XXX XXX 6. 0 XXX XXX XXX XXX. 0 XXX XXX XXX XXX XXX 8. 0 XXX XXX XXX XXX XXX XXX 9. 0 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX. 06 XXX XXX XXX XXX XXX XXX XXX XXX XXX

132 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY Schedule P - Part B - Section - Reinsurance Loss Sensitive Contracts N O N E Schedule P - Part B - Section 5 - Reinsurance Loss Sensitive Contracts N O N E Schedule P - Part B - Section 6 - Reinsurance Loss Sensitive Contracts N O N E Schedule P - Part B - Section - Reinsurance Loss Sensitive Contracts N O N E 9

133 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 #65? Yes [ ] No [ X ]. Does the company report any DDR reserve as loss or loss adjustment expense reserve? Yes [ ] No [ X ].5 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 ) Column, Lines. plus.? Yes [ ] No [ ] N/A [ X ].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, 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. 5. What were the net premiums in force at the end of the year for: (in thouss of dollars) 5. Fidelity 5. Surety 6. Claim count information is reported per claim or per claimant (Indicate which). per claim 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 [ ]. (An extended statement may be attached.) Discounting of workers compensation reserves was adopted effective //6 - see footnote per the Notes to the Financial Statements 9

134 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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,8,685,08,55,86,0 9,,65,,89. Alaska AK L 0,,60,0,0,9. Arizona AZ L 0,8,0 8,8,8,,59 6,0,5,8,996. Arkansas AR L 6,800,,,85,5,0,68,956 5,905,5 5. California CA L,0,060 6,60,680,,098,0,8 9,,8 6. Colorado CO L,8,09,8,0 69,596 9,8,695,59. Connecticut CT L 6,56,88,99,98,0,859 5,50,660,8, Delaware DE L 6,08,08 6,0,9,6,6,588,5,00,9 9. District of Columbia DC L,,5,5,666,06,50,60,68,09 0. Florida FL L 6,0,89 0,,86 5,69, 8,8,0 9,09,05. Georgia GA L 65,,56 6,6,089,,,6,889 8,08,. Hawaii HI L,00,85 888,5 56,06,99 8,. Idaho ID L,5,65,8, 6,8,8,88,9. Illinois IL L 50,86,,65,6,,,568,5,88,6 5. Indiana IN L 5,0,9,0,9,0, 9,0,55 8,58,9 6. Iowa IA L 6,95,0 5,98,080 6,,6,0,0,6,55,6. Kansas KS L 9,60,09 6,9,05,068,00,905,8,68,8 8. Kentucky KY L,,60 8,89,88,0,5 6,6,95,0, 9. Louisiana LA L 9,8, 8,,0,5,58,50,66 6,,09 0. Maine ME L,99,80,59,0,0,,98,0,65,5. Maryl MD L,96,,9,66,,50 0,99,8,09,. Massachusetts MA L 56,90,585 5,,9,668,66,6,50,55,5. Michigan MI L,,0 5,9,9,88,0,9,,9,55. Minnesota MN L 6,99,08,,8 96,56 9,9,9 0,50,6 6,98,98 5. Mississippi MS L 0,,06 9,65,089,90, 8,,650 8,59, Missouri MO L 9,9,,8,06 6,0,656 9,,058,89,. Montana MT L,,58,9,99 59,06 5,00 0, 8. Nebraska NE L,065,,80, 86,69,855,09,89,85 9. Nevada NV L 0,56,9 9,,88 5,,90 9,0,,95,5 0. New Hampshire NH L 0,66,8 0,0,9,,50 0,9,9 0,0,65. New Jersey NJ L 5,690,955 5,,68 80,6,69,9,88,0 8,88,88. New Mexico NM L,5,09,,,06,0,606,5,08,969. New York NY L 55,08,56 5,8,800 9,99,868,966,8 65,958,8. North Carolina NC L 5,6,,8,56 0,0,0,,988,850,0 5. North Dakota ND L 99,56 98,856 55,8 6,58 69,0 6. Ohio OH L,95,69,65,05 6,9,88 9,,908 8,66,56. Oklahoma OK L 8,605,5,08,98,8,55,55,,6,6 8. Oregon OR L,9,90 6,9,9,6,56,6,5,9, Pennsylvania PA L 0,59,9 6,9, 9,95,66,90,5 6,965, Rhode Isl RI L,868,95,5, 9,8 9, 6,06. South Carolina SC L 8,988,65 0,55,66,5,0 5,56,68 9,08,89. South Dakota SD L,,0,5,090 (0,68) 58,8 5,680. Tennessee TN L,99,959 6,09,6,889,86 5,88,8,5,06. Texas TX L 9,9,6 0,989,09,9,5 0,555,6,85,6 5. Utah UT L,, 6,,55 9,90,,9,,6,56 6. Vermont VT L,8,88 0,5, 5,58,50 8,08,09,86,. Virginia VA L 8,89,8,6,68 8,5,0,,69,85,98 8. Washington WA L,6,50,58,6,05,59 9,8,9 5,6, 9. West Virginia WV L 5,88,66 5,0,8,58,8,,88 5,59, Wisconsin WI L 9,96,5 9,65,9 5,599,98,6 6,60,9 6,5,0 5. Wyoming WY L 9,996 6,8 66,6 (0,5),6 5. American Samoa AS N 5. Guam GU L 5. Puerto Rico PR L 55. U.S. Virgin Isls VI N 56. Northern Mariana Isls MP N 5. Canada CAN N 58. Aggregate other alien OT XXX,568,6 65,8 59. Totals (a) 5,,508,,,6,88,9,80 8,9,6,,69,,58,06,50 DETAILS OF WRITE-INS MEX Mexico XXX,568,6 65, XXX XXX Summary of remaining write-ins for Line 58 from overflow page XXX Totals (Lines 5800 through 5800 plus 58998)(Line 58 above) XXX,568,6 65,8 (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. Premium is allocated based on location of insured. (a) Insert the number of L responses except for Canada Other Alien. 9

135 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 5. California CA 6. Colorado CO. Connecticut CT 8. Delaware DE 9. District of Columbia DC 0. Florida FL. Georgia GA. Hawaii HI. Idaho ID. Illinois IL 5. Indiana IN 6. Iowa IA. Kansas KS 8. Kentucky KY 9. Louisiana LA 0. Maine ME. Maryl MD. Massachusetts MA. Michigan MI. Minnesota MN 5. Mississippi MS 6. Missouri MO Life (Group Individual) Annuities (Group Individual) Business Only Disability Income (Group Individual). 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 5. North Dakota ND 6. Ohio OH. Oklahoma OK 8. Oregon OR 9. Pennsylvania PA 0. Rhode Isl RI. South Carolina SC. South Dakota SD. Tennessee TN. Texas TX 5. Utah UT 6. Vermont VT. Virginia VA 8. Washington WA 9. West Virginia WV 50. Wisconsin WI 5. Wyoming WY 5. American Samoa AS 5. Guam GU 5. Puerto Rico PR 55. U.S. Virgin Isls VI 56. Northern Mariana Isls MP 5. Canada CAN 58. Aggregate Other Alien OT 59. Total Long-Term Care (Group Individual) 5 Deposit-Type Contracts 6 Totals 95

136 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 (.%) () NATIONAL GENERAL HOLDINGS CORP. () (Exhibit A) AMTRUST FINANCIAL SERVICES, INC. () MAIDEN HOLDINGS, LTD () 905 (DE) NAIC Group Code NAIC Group Code AmTrust Insurance Company of Kansas, Inc. (KS) NAIC Code 595; FEIN 5-99 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 58; FEIN 5-5 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 09; FEIN 5-5 CNH Industrial Canada Insurance Agency Ltd. (Canada) 0 AMT Road Services Corp. (DE) AMT Consumer Services, Inc. (DE) Boca NW65, LLC (DE) AmTrust Title Insurance Company (NY) NAIC Code 558; FEIN ARI Holdco Inc. (DE) Southern Underwriters Insurance Company (OK) NAIC Code 0809; FEIN 5-80 Republic Fire Casualty Insurance Company (OK) NAIC Code 080; FEIN East Ninth & Superior, LLC (DE) () 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 ARI Casualty Company (NJ) NAIC Code 680; FEIN -690 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 0859; FEIN Southern County Mutual Insurance Company (TX) NAIC Code 86; FEIN 5-60 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 95; FEIN Eagle General Agency, Inc. (TX) First Nationwide Title Agency of Texas LLC (TX) 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) 5 West Jefferson LLC (DE) AMT Agency Holdings, Inc. (DE) WCPS of Florida, Inc. (FL) Developers Surety Indemnity Company (CA) NAIC Code 8; FEIN -090 Heritage Mechanical Breakdown Corporation (DE) Advantage Comp, Inc. (NJ) 5 Warrantech, Inc. (TX) Indemnity Company of California (CA) NAIC Code 5550; FEIN 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 989; FEIN Sequoia Insurance Company (CA) NAIC Code 985; FEIN Sequoia Indemnity Company (NV) NAIC Code 8; FEIN Technology Insurance Company, Inc. (DE) NAIC Code 6; FEIN AII Investment Holdings Ltd. (Bermuda) () Wesco Insurance Company (DE) NAIC Code 50; FEIN Primero Seguros, S.A. de C.V. (Mexico) (5) 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)

137 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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) 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) 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) () 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) 55 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) 06 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) (5) 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)

138 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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) 505 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) (5) Finagra Grains Limited (Engl) (6) Finagra USA Inc. (CT) AmCafe LLC (DE) Gadget Repair Solutions Limited (Engl) () 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)

139 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO 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 005 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.%, respectively, of the entity's issued outsting capital stock. Mrs. Karfunkel has sole voting dispositive power over the shares held by the Trust. (5) 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 50%. () AmTrust North America, Inc. National General Holdings Corp. each own 50%. (8) AMT Warranty Corp. owns 65% Shon LLC owns the remaining 5%. (9) AmTrust owns 80% (Class A Voting Interest) Michael Rogers owns 0% (Class B Non-Voting Interest). (0) AmTrust owns 50%, National General Re Ltd. owns the remaining 50%. () AmTrust Integon National Insurance Company each own 50%. () AmTrust National General Holdings Corp. are each a.5% 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 5.56%; CorePointe Insurance Company owns 8.89%; First Nonprofit Insurance Company owns.8%; Developers Surety Indemnity Company owns.%. (5) 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 50%. () AMT Capital Holdings III S.A. American Capital Acquisition Investments S.A. each own 50%. (8) AMT Capital Holdings III S.A. American Capital Acquisition Investments S.A. each own 50% Class A Interests. (9) AMT NY Realty Holdings, LLC owns 90% Stoneblock Group, LLC owns the remaining 0%. (0) AmTrust International Insurance, Ltd. owns 50% AmTrust North America, Inc. owns the remaining 50%. () AmTrust International Insurance, Ltd. owns 60% AmTrust International Bermuda owns the remaining 0%. () AmTrust International Limited owns 55% InvestinAsia Pte. Ltd., a Singapore company, owns 5%. () AmTrust Mobile Solutions Malaysia Holdings Sdn. Bhd. owns 50% Essar Retail Holdings Private Limited owns the remaining 50% () AmTrust International Limited owns 0.000% Car Care Plan Limited owns %. (5) AmTrust International Limited owns.99%, certain other entities own the remaining.0%. (6) AmTrust Europe Limited owns 50% Ordinary Shares 00% Preferred, Series A Shares Finagra Group Limited owns 50% Ordinary Shares 00% Preferred, Series B Shares. () AmTrust International Limited owns 88.%, certain continuing shareholders own a total of.8%. (8) AmTrust International Limited owns 50%, certain other entities own the remaining 50%. 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.5%; AmTrust Italia S.R.L. owns.5%; 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).

140 ANNUAL STATEMENT FOR THE YEAR 06 OF THE WESCO INSURANCE COMPANY SCHEDULE Y INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART ORGANIZATIONAL CHART 96.