COMBINED ANNUAL STATEMENT For the Year Ended December 31, 2015 of the Condition and Affairs of the

Transcription

1 COMBINED PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION * * COMBINED ANNUAL STATEMENT For the Year Ended December 31, 2015 of the Condition and Affairs of the and its affiliated property and casualty insurers This annual statement contains combined data for the property and casualty insurance companies listed below, compiled in accordance with the NAIC instructions for the completion of annual statements. NAIC Group Code NAIC Combined Company Code Mail Address One Hartford Plaza Hartford, Connecticut (Street and Number) (City or Town, State and Zip Code) Statutory Statement Contact Randolph A. Dalton (860) (Name) (Area Code) (Telephone Number) statement.questions@thehartford.com (E ma il) NAMES OF COMPANIES INCLUDED IN THIS STATEMENT Hartford Fire Insurance Company Connecticut Hartford Accident and Indemnity Company Connecticut Hartford Casualty Insurance Company Indiana Hartford Underwriters Insurance Company Connecticut Twin City Fire Insurance Company Indiana Pacific Insurance Company, Limited Connecticut Sentinel Insurance Company, Ltd. Connecticut Hartford Lloyd's Insurance Company Texas Hartford Insurance Company of Illinois Illinois Hartford Insurance Company of the Midwest Indiana Trumbull Insurance Company Connecticut Hartford Insurance Company of the Southeast Connecticut Nutmeg Insurance Company Connecticut Property and Casualty Insurance Company of Hartford Indiana 34690

2 ASSETS Current Year Prior Year Net Admitted Nonadmitted Assets Net Assets Assets (Cols. 1-2) Admitted Assets 1. Bonds (Schedule D) ,287,357, ,287,357, ,413,955, Stocks (Schedule D): 2.1 Preferred stocks ,027, ,027, ,533, Common stocks ,738, ,738, ,006, Mortgage loans on real estate (Schedule B): 3.1 First liens ,917,253, ,917,253, ,693,101, Other than first liens Real estate (Schedule A): 4.1 Properties occupied by the company (less $...0 encumbrances) ,447, ,447, ,110, Properties held for the production of income (less $...0 encumbrances) Properties held for sale (less $...0 encumbrances) Cash ($...40,828,285, Sch. E-Part 1), cash equivalents ($...0, Sch. E-Part 2) and short-term investments ($...817,790,171, Sch. DA) ,618, ,618, ,046,959, Contract loans (including $...0 premium notes) Derivatives (Schedule DB) ,070, ,070, ,630, Other invested assets (Schedule BA) ,209,750, ,209,750, ,309,897, Receivables for securities ,325, ,325, ,275, Securities lending reinvested collateral assets (Schedule DL) ,683, ,683, Aggregate write-ins for invested assets ,636, ,636, , Subtotals, cash and invested assets (Lines 1 to 11) ,978,908, ,978,908, ,303,475, Title plants less $...0 charged off (for Title insurers only) Investment income due and accrued ,304, ,304, ,910, Premiums and considerations: 15.1 Uncollected premiums and agents' balances in course of collection ,897, ,480, ,416, ,192, Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $...88,790,228 earned but unbilled premiums) ,410,027, ,638, ,396,388, ,328,849, Accrued retrospective premiums ($...0) and contracts subject to redetermination ($...0) ,167, Reinsurance: 16.1 Amounts recoverable from reinsurers ,913, ,913, ,210, Funds held by or deposited with reinsured companies ,183, ,282,980...(3,099,387)...2,746, Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon ,557, ,557, ,373, Net deferred tax asset ,305,961, ,378, ,032,582, ,087,264, Guaranty funds receivable or on deposit ,025, ,025, ,624, Electronic data processing equipment and software ,440, ,607, ,833, ,861, Furniture and equipment, including health care delivery assets ($...0) ,404, ,404, Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates ,259, , ,018, ,538, Health care ($...0) and other amounts receivable Aggregate write-ins for other than invested assets ,449, ,545, ,904, ,294, Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) ,953,334, ,579, ,030,754, ,483,508, From Separate Accounts, Segregated Accounts and Protected Cell Accounts TOTALS (Lines 26 and 27) ,953,334, ,579, ,030,754, ,483,508,729 DETAILS OF WRITE-INS Combined write-ins for Assets Line ,636, ,636, , Summary of remaining write-ins for Line 11 from overflow page Totals (Lines 0901 thru 1103 plus 1198) (Line 11 above) ,636, ,636, , Combined write-ins for Assets Line ,449, ,545, ,904, ,294, Summary of remaining write-ins for Line 25 from overflow page Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above) ,449, ,545, ,904, ,294,337 2

3 LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current Year Prior Year 1. Losses (Part 2A, Line 35, Column 8) ,101,915, ,863,105, Reinsurance payable on paid loss and loss adjustment expenses (Schedule F, Part 1, Column 6) ,148, ,326, Loss adjustment expenses (Part 2A, Line 35, Column 9) ,118,570, ,143,715, Commissions payable, contingent commissions and other similar charges ,722, ,796, Other expenses (excluding taxes, licenses and fees) ,206, ,577, Taxes, licenses and fees (excluding federal and foreign income taxes) ,797, ,540, Current federal and foreign income taxes (including $...0 on realized capital gains (losses)) ,032, ,044, Net deferred tax liability Borrowed money $...0 and interest thereon $ Unearned premiums (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of $...340,319,971 and including warranty reserves of $...0 and accrued accident and health experience rating refunds including $...0 for medical loss ratio rebate per the Public Health Service Act) ,097,310, ,904,903, Advance premiums ,778, ,114, Dividends declared and unpaid: 11.1 Stockholders Policyholders ,730, ,010, Ceded reinsurance premiums payable (net of ceding commissions) ,058, ,199, Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 19) ,877, ,339, Amounts withheld or retained by company for account of others ,699, ,992, Remittances and items not allocated ,497, ,893, Provision for reinsurance (including $...0 certified) (Schedule F, Part 8) ,561, ,269, Net adjustments in assets and liabilities due to foreign exchange rates ,296, ,015, Drafts outstanding ,530, ,523, Payable to parent, subsidiaries and affiliates ,889, ,029, Derivatives ,055, ,265, Payable for securities ,332, ,462, Payable for securities lending ,683, Liability for amounts held under uninsured plans Capital notes $...0 and interest thereon $ Aggregate write-ins for liabilities ,710, ,969, Total liabilities excluding protected cell liabilities (Lines 1 through 25) ,894,404, ,310,095, Protected cell liabilities Total liabilities (Lines 26 and 27) ,894,404, ,310,095, Aggregate write-ins for special surplus funds Common capital stock ,670, ,670, Preferred capital stock Aggregate write-ins for other than special surplus funds Surplus notes Gross paid in and contributed surplus ,272,578, ,035,953, Unassigned funds (surplus) ,786,118, ,059,806, Less treasury stock, at cost: shares common (value included in Line 30 $...580,000) ,016, ,016, shares preferred (value included in Line 31 $...0) Surplus as regards policyholders (Lines 27 to 33, less 34) (Page 4, Line 38) ,136,350, ,173,413, TOTALS (Page 2, Line 28, Col. 3) ,030,754, ,483,508,729 DETAILS OF WRITE-INS Combined write-ins for Liabilities Line ,710, ,969, Summary of remaining write-ins for Line 25 from overflow page Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above) ,710, ,969, Summary of remaining write-ins for Line 29 from overflow page Totals (Lines 2901 thru 2903 plus 2998) (Line 29 above) Summary of remaining write-ins for Line 32 from overflow page Totals (Lines 3201 thru 3203 plus 3298) (Line 32 above)

4 STATEMENT OF INCOME 1 2 UNDERWRITING INCOME Current Year Prior Year 1. Premiums earned (Part 1, Line 35, Column 4) ,334,931, ,096,686,497 DEDUCTIONS 2. Losses incurred (Part 2, Line 35, Column 7) ,668,032, ,564,367, Loss adjustment expenses incurred (Part 3, Line 25, Column 1) ,160,194, ,204,216, Other underwriting expenses incurred (Part 3, Line 25, Column 2) ,140,981, ,003,892, Aggregate write-ins for underwriting deductions Total underwriting deductions (Lines 2 through 5) ,969,208, ,772,476, Net income of protected cells Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7) ,723, ,210,484 INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line 17) ,300,547, ,246,060, Net realized capital gains (losses) less capital gains tax of $...91,627,020 (Exhibit of Capital Gains (Losses)) ,598, ,382, Net investment gain (loss) (Lines ) ,382,145, ,319,443,118 OTHER INCOME 12. Net gain (loss) from agents' or premium balances charged off (amount recovered $...921,337 amount charged off $...40,831,657)......(39,910,320)...(40,451,971) 13. Finance and service charges not included in premiums ,395, ,033, Aggregate write-ins for miscellaneous income......(63,381,308)...(93,851,295) 15. Total other income (Lines 12 through 14)......(25,896,432)...(57,269,562) 16. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines ) ,721,972, ,586,384, Dividends to policyholders ,668, ,536, Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 16 minus Line 17) ,707,303, ,572,848, Federal and foreign income taxes incurred ,214, ,163, Net income (Line 18 minus Line 19) (to Line 22) ,486,088, ,270,684,888 CAPITAL AND SURPLUS ACCOUNT 21. Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2) ,173,413, ,376,596,582 GAINS AND (LOSSES) IN SURPLUS 22. Net income (from Line 20) ,486,088, ,270,684, Net transfers (to) from Protected Cell accounts Change in net unrealized capital gains or (losses) less capital gains tax of $...(89,352,418)......(669,543,076)...1,153,873, Change in net unrealized foreign exchange capital gain (loss)......(9,706,722)...(26,806,211) 26. Change in net deferred income tax......(148,120,508)...(107,199,520) 27. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 28 Column 3)......(21,562,614)...46,487, Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1) ,708, ,498, Change in surplus notes Surplus (contributed to) withdrawn from protected cells Cumulative effect of changes in accounting principles Capital changes: 32.1 Paid in Transferred from surplus (Stock Dividend) Transferred to surplus Surplus adjustments: 33.1 Paid in ,625, ,094, Transferred to capital (Stock Dividend) Transferred from capital Net remittances from or (to) Home Office Dividends to stockholders......(907,022,856)...(2,518,000,000) 36. Change in treasury stock (Page 3, Lines 36.1 and 36.2, Column 2 minus Column 1) Aggregate write-ins for gains and losses in surplus......(8,529,553)...(49,815,300) 38. Change in surplus as regards policyholders for the year (Lines 22 through 37)......(37,063,213)...(203,183,146) 39. Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37) ,136,350, ,173,413,436 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 0501 thru 0503 plus 0598) (Line 5 above) Combined write-ins for Statement of Income Line (63,381,308)...(93,851,295) Summary of remaining write-ins for Line 14 from overflow page Totals (Lines 1401 thru 1403 plus 1498) (Line 14 above)......(63,381,308)...(93,851,295) Combined write-ins for Statement of Income Line (8,529,553)...(49,815,300) Summary of remaining write-ins for Line 37 from overflow page Totals (Lines 3701 thru 3703 plus 3798) (Line 37 above)......(8,529,553)...(49,815,300) 4

5 CASH FROM OPERATIONS CASH FLOW 1 2 Current Year Prior Year 1. Premiums collected net of reinsurance ,458,199, ,134,146, Net investment income ,602,238, ,317,967, Miscellaneous income......(66,771,791)...(57,269,562) 4. Total (Lines 1 through 3) ,993,667, ,394,844, Benefit and loss related payments ,408,225, ,430,832, Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts Commissions, expenses paid and aggregate write-ins for deductions ,321,743, ,114,054, Dividends paid to policyholders ,948, ,403, Federal and foreign income taxes paid (recovered) net of $...91,627,020 tax on capital gains (losses) ,038, ,130, Total (Lines 5 through 9) ,988,955, ,852,420, Net cash from operations (Line 4 minus Line 10) ,004,711, ,542,424,517 CASH FROM INVESTMENTS 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds ,038,088, ,677,231, Stocks ,924, ,942, Mortgage loans ,215, ,936, Real estate Other invested assets ,312, ,248, Net gains or (losses) on cash, cash equivalents and short-term investments ,156, Miscellaneous proceeds ,692, ,328, Total investment proceeds (Lines 12.1 to 12.7) ,495,390, ,442,687, Cost of investments acquired (long-term only): 13.1 Bonds ,538,332, ,520,629, Stocks ,196,761, ,779, Mortgage loans ,647, ,715, Real estate ,247, ,759, Other invested assets ,341, ,424, Miscellaneous applications ,987, ,607, Total investments acquired (Lines 13.1 to 13.6) ,958,316, ,441,915, Net increase (decrease) in contract loans and premium notes Net cash from investments (Line 12.8 minus Lines 13.7 and 14)......(1,462,926,091)...1,000,771,700 CASH FROM FINANCING AND MISCELLANEOUS SOURCES 16. Cash provided (applied): 16.1 Surplus notes, capital notes Capital and paid in surplus, less treasury stock ,500, Borrowed funds Net deposits on deposit-type contracts and other insurance liabilities Dividends to stockholders ,022, ,518,000, Other cash provided (applied) ,395,985...(49,399,081) 17. Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)......(730,126,871)...(2,567,399,080) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in cash, cash equivalents and short-term investments (Line 11 plus Line 15 plus Line 17)......(188,341,368)...(24,202,864) 19. Cash, cash equivalents and short-term investments: 19.1 Beginning of year ,046,959, ,071,162, End of year (Line 18 plus Line 19.1) ,618, ,046,959,824 Note: Supplemental disclosures of cash flow information for non-cash transactions: Non-cash proceeds from inv asset exchanges - bonds, common stocks and other invested assets......(477,052,871) Non-cash acquisitions from inv asset exchanges - bonds, common stocks and other invested assets......(477,052,871) Non-cash affiliated adverse development cover reinsurance transaction - other than invested asset......(40,875,360) Non-cash affiliated development cover reinsurance transaction - miscellaneous income......(40,875,360) Aggregate write-ins for liabilities: non-cash quarterly stock compensation contribution......(966,521)...(27,635,865) Paid in capital: non-cash quarterly stock compensation contribution......(966,521)...24,094, Non-cash capital contributions - common stock......(79,091,534) Non-cash capital contributions......(79,091,534)...0 5

6 UNDERWRITING AND INVESTMENT EXHIBIT PART 1 - PREMIUMS EARNED Unearned Premiums Unearned Premiums Net December 31 December 31 Premiums Premiums Prior Year- Current Year- Earned Written per per Col. 3 Last per Col. 5 During Year Line of Business Column 6, Part 1B Year's Part 1 Part 1A (Cols ) 1. Fire ,684, ,516, ,964, ,237, Allied lines ,716, ,762, ,946, ,533, Farmowners multiple peril Homeowners multiple peril ,129,677, ,171, ,521, ,132,327, Commercial multiple peril ,674,479, ,416, ,763, ,662,132, Mortgage guaranty Ocean marine ,497, ,295, ,216, ,576, Inland marine ,949, ,267, ,187, ,029, Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made Earthquake ,976, ,319, ,372, ,923, Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation ,131,094, ,310,247, ,361,209, ,080,132, Other liability - occurrence ,523, ,329, ,546, ,306, Other liability - claims-made ,366, ,656, ,983, ,039, Excess workers' compensation ,874, ,174, ,293, ,755, Products liability - occurrence ,149, ,554, ,233, ,469, Products liability - claims-made , , , , , 19.2 Private passenger auto liability ,732,063, ,530, ,036, ,701,557, , 19.4 Commercial auto liability ,654, ,204, ,247, ,611, Auto physical damage ,070,008, ,339, ,390, ,045,957, Aircraft (all perils) , , Fidelity ,973, ,686, ,257, ,401, Surety ,946, ,356, ,320, ,982, Burglary and theft ,530, ,125, ,794, ,861, Boiler and machinery , , , , Credit International , , Warranty Reinsurance - nonproportional assumed property ,797, ,277, ,104, ,971, Reinsurance - nonproportional assumed liability......(12,476,072) ,875,360...(53,351,432) 33. Reinsurance - nonproportional assumed financial lines Aggregate write-ins for other lines of business TOTALS ,537,525, ,894,716, ,097,310, ,334,931,821 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above)

7 UNDERWRITING AND INVESTMENT EXHIBIT PART 1A - RECAPITULATION OF ALL PREMIUMS (a) Gross premiums (less reinsurance) and unearned premiums on all unexpired risks and reserve for return premiums under rate credit or retrospective rating plans based upon experience, viz: Reserve for Amount Unearned Amount Unearned Rate Credits Total Reserve (Running One Year (Running more than and Retrospective for Unearned or Less from Date One Year from Earned But Adjustments Based Premiums Line of Business of Policy) (a) Date of Policy) (a) Unbilled Premium on Experience Cols Fire ,956, , ,964, Allied lines ,941, , ,946, Farmowners multiple peril Homeowners multiple peril ,521, ,521, Commercial multiple peril ,880, , ,763, Mortgage guaranty Ocean marine ,989, , ,216, Inland marine ,991, ,196, ,187, Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made Earthquake ,372, ,372, Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation ,362,931,734...(3,490) (1,719,000)...1,361,209, Other liability - occurrence ,228, ,129, ,187, ,546, Other liability - claims-made ,643, ,340, ,983, Excess workers' compensation ,293, ,293, Products liability - occurrence ,010, ,222, ,233, Products liability - claims-made , , , , 19.2 Private passenger auto liability ,035, , ,036, , 19.4 Commercial auto liability ,762, , (675,000)...211,247, Auto physical damage ,347, , ,390, Aircraft (all perils) Fidelity ,789, ,468, ,257, Surety ,386, ,933, ,320, Burglary and theft ,556, , ,794, Boiler and machinery , , Credit International Warranty Reinsurance - nonproportional assumed property ,104, ,104, Reinsurance - nonproportional assumed liability ,875, ,875, Reinsurance - nonproportional assumed financial lines Aggregate write-ins for other lines of business TOTALS ,954,071, ,444, ,793, ,097,310, Accrued retrospective premiums based on experience Earned but unbilled premiums Balance (sum of Lines 35 through 37) ,097,310,352 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above) (a) State here basis of computation used in each case: Daily pro rata not terminated: 100% 7

8 UNDERWRITING AND INVESTMENT EXHIBIT PART 1B - PREMIUMS WRITTEN Gross Premiums (Less Return Premiums), Including Policy and Membership Fees Written and Renewed During Year 1 Reinsurance Assumed Reinsurance Ceded 6 Direct Net Premiums Written Business (Cols Line of Business (a) From Affiliates From Non-Affiliates To Affiliates To Non-Affiliates - 4-5) 1. Fire ,332, ,337, ,985, ,684, Allied lines ,082, ,899, ,265, ,716, Farmowners multiple peril Homeowners multiple peril ,164,040, ,291, ,655, ,129,677, Commercial multiple peril ,779,280, ,801, ,674,479, Mortgage guaranty Ocean marine ,644, ,146, ,497, Inland marine ,759, ,809, ,949, Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made Earthquake ,976, (1) ,976, Group accident and health , , Credit accident and health (group and individual) Other accident and health Workers' compensation ,324,634, ,126, ,666, ,131,094, Other liability - occurrence ,373, (472,338) ,378, ,523, Other liability - claims-made ,407, , ,042, ,366, Excess workers' compensation ,874, ,874, Products liability - occurrence ,876, (15,053) ,712, ,149, Products liability - claims-made , , , , 19.2 Private passenger auto liability ,617,691, ,188, ,816, ,732,063, , 19.4 Commercial auto liability ,045, ,611, ,002, ,654, Auto physical damage ,131, ,127, ,250, ,070,008, Aircraft (all perils) (10,195)...10, Fidelity ,362, (51) ,389, ,973, Surety ,771, , ,827, ,946, Burglary and theft ,507, , , ,530, Boiler and machinery ,119, , ,987, , Credit International , (3)...5, Warranty Reinsurance - nonproportional assumed property......xxx ,154, ,356, ,797, Reinsurance - nonproportional assumed liability......xxx......(12,609,826)...135, ,338...(12,476,071) 33. Reinsurance - nonproportional assumed financial lines......xxx Aggregate write-ins for other lines of business TOTALS ,135,128,154...(12,609,826)...265,409, , ,127, ,537,525,574 DETAILS OF WRITE-INS Summ. of remaining write-ins for Line 34 from overflow page Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above) (a) Does the company's direct premiums written include premiums recorded on an installment basis? Yes [ ] No [ X ] If yes: 1. The amount of such installment premiums $ Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $

9 9 Combined Statement for the year 2015 of the UNDERWRITING AND INVESTMENT EXHIBIT PART 2 - LOSSES PAID AND INCURRED Losses Paid Less Salvage Percentage of Net Losses Losses Losses Incurred Unpaid Net Losses Incurred (Col. 7, Part 2) Direct Reinsurance Reinsurance Net Payments Current Year Unpaid Current Year to Premiums Earned Line of Business Business Assumed Recovered (Cols ) (Part 2A, Col. 8) Prior Year (Cols ) (Col. 4, Part 1) 1. Fire ,407, ,306, , ,732, ,715, ,135, ,311, Allied lines ,023, , ,769, ,751, ,686, ,942, ,494, Farmowners multiple peril , ,954...(1) Homeowners multiple peril ,466, , , ,612, ,423, ,220, ,816, Commercial multiple peril ,772, , ,240, ,167, ,510,942, ,536,120, ,990, Mortgage guaranty Ocean marine ,698,329...(22,035)...(112,609)...7,788, ,524, ,500, ,813, Inland marine ,186, ,456, ,730, ,053, ,110, ,672, Financial guaranty Medical professional liability - occurrence , , , ,392, ,412,595...(5,563) Medical professional liability - claims-made , , Earthquake , , , ,643...(2,531)...(0.0) 13. Group accident and health , , Credit accident and health (group and individual) Other accident and health Workers' compensation ,528,525, ,628, ,687, ,372,466, ,076,161, ,792,665, ,655,962, Other liability - occurrence ,026, ,450, ,110, ,367, ,437,058, ,422,186, ,238, Other liability - claims-made ,321, ,071, ,617, ,775, ,917, ,205, , Excess workers' compensation ,265, ,308, ,956, ,542, ,875, ,623, Products liability - occurrence ,526, , ,161, ,288, ,753, ,746, ,295, Products liability - claims-made , ,905...(280,163)...1,159, , , , 19.2 Private passenger auto liability ,080,441, ,680, ,116, ,170,005, ,198,867, ,215,796, ,153,075, , 19.4 Commercial auto liability ,202, ,401, ,770, ,832, ,239, ,889, ,182, Auto physical damage ,468, ,250, ,763, ,954, ,724, ,014, ,664, Aircraft (all perils) , ,500...(108,367)...195, ,237, ,173, , , Fidelity ,199, , ,260, ,941, ,812, ,377, ,377, Surety ,544,754...(6,231)...4,898, ,639, ,517, ,730, ,427, Burglary and theft , ,284...(8)...737, ,678, ,264, ,151, Boiler and machinery ,094, ,094, , ,231...(383,968)...(334.4) 28. Credit International , , ,899, ,705,041...(2,359,202)...(39,898.6) 30. Warranty Reinsurance - nonproportional assumed property......xxx , ,105,068...(121,154)...4,052, ,312,625...(2,381,340)...(47.9) 32. Reinsurance - nonproportional assumed liability......xxx ,694,912...(78,133)...16,773, ,696, ,390, ,079,754...(92.0) 33. Reinsurance - nonproportional assumed financial lines......xxx ,440, ,440, , ,249,752...(2,236,530)...(329,148.3) 34. Aggregate write-ins for other lines of business TOTALS ,664,497, ,754, ,029, ,429,222, ,101,915, ,863,105, ,668,032, DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above)

10 10 Combined Statement for the year 2015 of the UNDERWRITING AND INVESTMENT EXHIBIT PART 2A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported Deduct Reinsurance Net Losses Excluding Recoverable from Incurred but Net Losses Unpaid Loss Authorized and not Reported Reinsurance Reinsurance Unpaid Adjustment Line of Business Direct Reinsurance Assumed Unauthorized Companies (Cols ) Direct Assumed Ceded (Cols ) Expenses 1. Fire ,607, , , ,564, ,163, ,037, , ,715, ,214, Allied lines ,199, ,045...(365,271)...1,701, , , , ,686, , Farmowners multiple peril , (247,854)...249, , Homeowners multiple peril ,410, ,698...(6,415,895)...165,935, ,982, , , ,423, ,882, Commercial multiple peril ,830, ,608, ,451, ,986, ,636, ,393, ,074, ,510,942, ,959, Mortgage guaranty Ocean marine ,293, ,129,890...(694,026)...6,117, ,281, ,674, , ,524, ,843, Inland marine ,979, (5,626,264)...28,606, ,845, , ,053, ,722, Financial guaranty Medical professional liability - occurrence , (1,180,155)...1,350, , , ,392, , Medical professional liability - claims-made , , , Earthquake , (3)...5, , , , Group accident and health , ,745 (a) Credit accident and health (group and individual) Other accident and health (a) Workers' compensation ,351,437, ,419, ,274, ,065,581, ,400,036, ,979, ,435, ,076,161, ,568, Other liability - occurrence ,431, ,959, ,957, ,433, ,025,173, ,171, ,720, ,437,058, ,793, Other liability - claims-made ,836, ,617, ,219, ,122, ,588, ,013, ,917, ,397, Excess workers' compensation ,393, ,309, ,084, ,375, , ,542, ,155, Products liability - occurrence ,706, ,735...(19,411,383)...69,115, ,572, , ,885, ,753, ,005, Products liability - claims-made , , , (662,506)...1,159, , , 19.2 Private passenger auto liability ,511, ,928, ,126, ,313, ,590, ,870, ,907, ,198,867, ,227, , 19.4 Commercial auto liability ,412, ,607, ,601, ,418, ,110, ,448, ,737, ,239, ,951, Auto physical damage ,565, ,152,127...(718,921)...48,436,456...(3,951,397)...(512,550)...4,247, ,724, ,047, Aircraft (all perils) ,604, ,251, ,191, ,665, ,314, ,812, ,555, ,237, ,302, Fidelity ,631, , , ,486, ,317, , ,629, ,812, ,497, Surety ,293, , ,494, ,222, ,006, , , ,517, ,148, Burglary and theft , , ,262, ,013, ,678, ,462, Boiler and machinery , ,628...(5,755)...42, , , , Credit International ,878, , ,368, ,530, ,899, , Warranty Reinsurance - nonproportional assumed property......xxx ,139, ,185,956...(46,537)...xxx ,098, ,052, , Reinsurance - nonproportional assumed liability......xxx ,412, , ,684,167...xxx ,118, ,105, ,696,986...(591,583) 33. Reinsurance - nonproportional assumed financial lines......xxx , ,481...xxx , , , Aggregate write-ins for other lines of business TOTALS ,824,930, ,474, ,741, ,476,663, ,517,792, ,307, ,848, ,101,915, ,118,570,099 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above) (a) Including $...0 for present value of life indemnity claims.

11 1. Claim adjustment services: UNDERWRITING AND INVESTMENT EXHIBIT PART 3 - EXPENSES Other Loss Adjustment Underwriting Investment Expenses Expenses Expenses Total 1.1 Direct ,180, ,180, Reinsurance assumed ,070, ,070, Reinsurance ceded ,836, ,836, Net claim adjustment services ( ) ,414, ,414, Commission and brokerage: 2.1 Direct excluding contingent ,645, ,645, Reinsurance assumed excluding contingent ,409, ,409, Reinsurance ceded excluding contingent ,301, ,301, Contingent - direct ,747, ,747, Contingent - reinsurance assumed Contingent - reinsurance ceded , , Policy and membership fees Net commission and brokerage ( ) ,001,422, ,001,422, Allowances to managers and agents , ,333, ,390, Advertising , ,676, , ,180, Boards, bureaus and associations ,752, ,243, , ,006, Surveys and underwriting reports ,690, ,457, ,148, Audit of assureds' records Salary and related items: 8.1 Salaries ,005, ,096, ,222, ,325, Payroll taxes ,738, ,135, ,873, Employee relations and welfare ,097, ,054, ,501, ,653, Insurance ,051, , , ,143, Directors' fees Travel and travel items ,890, ,305, , ,392, Rent and rent items ,831, ,217, ,207, ,256, Equipment......(167,999)...1,703, , ,552, Cost or depreciation of EDP equipment and software ,251, ,573, ,246, ,071, Printing and stationery ,406, ,704, , ,123, Postage, telephone and telegraph, exchange and express ,193, ,720, , ,609, Legal and auditing ,924, ,675, , ,882, Totals (Lines 3 to 18) ,220, ,475,971, ,417, ,965,609, Taxes, licenses and fees: 20.1 State and local insurance taxes deducting guaranty association credits of $...1,651, ,832, ,832, Insurance department licenses and fees ,427, ,427, Gross guaranty association assessments ,659, ,659, All other (excluding federal and foreign income and real estate) ,034, ,034, Total taxes, licenses and fees ( ) ,953, ,953, Real estate expenses ,704, ,704, Real estate taxes ,734, ,734, Reimbursements by uninsured plans Aggregate write-ins for miscellaneous expenses ,558, ,633, ,108, ,301, Total expenses incurred ,160,194, ,140,981, ,965,337 (a)...4,372,140, Less unpaid expenses - current year ,118,570, ,348, ,027, ,591,946, Add unpaid expenses - prior year ,143,715, ,519, ,518, ,606,753, Amounts receivable relating to uninsured plans, prior year Amounts receivable relating to uninsured plans, current year TOTAL EXPENSES PAID (Lines ) ,185,339, ,137,152, ,456, ,386,948,638 DETAILS OF WRITE-INS Combined write-ins for U&I Part 3 Line ,558, ,633, ,108, ,301, Summary of remaining write-ins for Line 24 from overflow page Totals (Lines 2401 thru 2403 plus 2498) (Line 24 above) ,558, ,633, ,108, ,301,171 (a) Includes management fees of $...33,189,466 to affiliates and $...0 to non-affiliates. 11

12 EXHIBIT OF NET INVESTMENT INCOME 1 2 Collected Earned During Year During Year 1. U.S. government bonds... (a)...25,228, ,250, Bonds exempt from U.S. tax... (a)...356,540, ,852, Other bonds (unaffiliated)... (a)...590,415, ,918, Bonds of affiliates... (a)...67,080, ,080, Preferred stocks (unaffiliated)... (b)...4,941, ,497, Preferred stocks of affiliates... (b) Common stocks (unaffiliated) ,302, ,219, Common stocks of affiliates ,196, ,196, Mortgage loans... (c)...75,485, ,226, Real estate... (d) ,066, Contract loans Cash, cash equivalents and short-term investments... (e)...5,007, ,867, Derivative instruments... (f)...13,565,080...(8,343,721) 8. Other invested assets ,378, ,921, Aggregate write-ins for investment income......(3,515,860)...(331,719) 10. Total gross investment income ,396,626, ,384,422, Investment expenses... (g)...70,965, Investment taxes, licenses and fees, excluding federal income taxes... (g) Interest expense... (h) Depreciation on real estate and other invested assets... (i)...12,910, Aggregate write-ins for deductions from investment income Total deductions (Lines 11 through 15) ,875, Net investment income (Line 10 minus Line 16) ,300,547,201 DETAILS OF WRITE-INS Combined write-ins for Investment Income Line (3,515,860)...(331,719) Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above)......(3,515,860)...(331,719) Summary of remaining write-ins for Line 15 from overflow page Totals (Lines 1501 thru 1503 plus 1598) (Line 15 above) (a) Includes $...51,005,248 accrual of discount less $...192,968,621 amortization of premium and less $...37,589,286 paid for accrued interest on purchases. (b) Includes $...0 accrual of discount less $...0 amortization of premium and less $...0 paid for accrued dividends on purchases. (c) Includes $...24,625 accrual of discount less $...0 amortization of premium and less $...0 paid for accrued interest on purchases. (d) Includes $...40,066,519 for company's occupancy of its own buildings; and excludes $...0 interest on encumbrances. (e) Includes $...104,411 accrual of discount less $...239,924 amortization of premium and less $...42,863 paid for accrued interest on purchases. (f) Includes $...3,915,794 accrual of discount less $...1,774,022 amortization of premium. (g) Includes $...0 investment expenses and $...0 investment taxes, licenses and fees, excluding federal income taxes, attributable to Segregated and Separate Accounts. (h) Includes $...0 interest on surplus notes and $...0 interest on capital notes. (i) Includes $...12,910,048 depreciation on real estate and $...0 depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) Realized Change in Gain (Loss) Other Total Realized Change in Unrealized on Sales Realized Capital Gain (Loss) Unrealized Foreign Exchange or Maturity Adjustments (Columns 1 + 2) Capital Gain (Loss) Capital Gain (Loss) 1. U.S. government bonds ,151, ,151, Bonds exempt from U.S. tax ,015, ,015, , Other bonds (unaffiliated)......(13,905,262)...(33,461,053)...(47,366,315)...(11,960,105)...3,665, Bonds of affiliates (448,889,755) Preferred stocks (unaffiliated)......(12,405,604)...(2,114,639)...(14,520,242)...(2,256,244) Preferred stocks of affiliates Common stocks (unaffiliated) ,977,115...(233,829)...5,743,286...(17,643,497)...(183,059) 2.21 Common stocks of affiliates (44,128,195) Mortgage loans ,696, Real estate Contract loans Cash, cash equivalents and short-term investments ,156, ,156, Derivative instruments ,085, ,085,167...(164,540,397)...8,925, Other invested assets ,506,325...(10,957,212)...(3,450,887)...(71,804,925)...(203,627) 9. Aggregate write-ins for capital gains (losses)......(544,165)...4,954, ,410,481...(144,205)...(21,911,101) 10. Total capital gains (losses) ,037,217...(41,812,086)...173,225,132...(758,895,494)...(9,706,721) DETAILS OF WRITE-INS Combined write-ins for Capital Gains (Losses) Line (544,165)...4,954, ,410,481...(144,205)...(21,911,101) Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above)......(544,165)...4,954, ,410,481...(144,205)...(21,911,101) 12

13 20 Combined Statement for the year 2015 of the SCHEDULE F - PART 1 Assumed Reinsurance as of December 31, Current Year (000 Omitted) Reinsurance On Amount of Assets Amount of Funds Held by Pledged or Assets NAIC Paid Losses and Known Case Contingent Assumed or Deposited Letters of Compensating Pledged or ID Company Domiciliary Assumed Loss Adjustment Losses Cols. Commissions Premiums Unearned With Reinsured Credit Balances to Secure Collateral Number Code Name of Reinsured Jurisdiction Premium Expenses and LAE Payable Receivable Premium Companies Posted Letters of Credit Held in Trust Affiliates - U. S. Intercompany Pooling Affiliates - U.S. Non-Pool - Captive Affiliates - U.S. Non-Pool - Other Affiliates - U.S. Non-Pool - Total Affiliates - Other (Non-U. S.) - Captive Affiliates - Other (Non-U. S.) - Other......(12,610) , Affiliates - Other (Non-U. S.) - Total......(12,610) , Total Affiliates......(12,610) , Other U. S. Unaffiliated Insurers for which the total of column 8 is less than $100, Other U. S. Unaffiliated Insurers , , , , , ,425...(1,939) Pools and Associations for which the total of column 8 is less than $100,000-Mandatory Pools and Associations - Mandatory Pools , , , , Pools and Associations for which the total of column 8 is less than $100,000-Voluntary Pools and Associations - Voluntary Pools ,543...(56)...19, , , Total Pools and Associations ,825...(56)...152, , , Other Non-U. S. Insurers for which the total of column 8 is less than $100, Other Non-U. S. Insurers , , , (1,244) Totals , , , , , ,806...(3,099)