ANNUAL STATEMENT For the Year Ended DECEMBER 31, 2016 OF THE CONDITION AND AFFAIRS OF THE FLORIDA PENINSULA INSURANCE COMPANY

Transcription

1 PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION ANNUAL STATEMENT For the Year Ended DECEMBER 31, 2016 OF THE CONDITION AND AFFAIRS OF THE FLORIDA PENINSULA INSURANCE COMPANY Document Code: 201 NAIC Group Code 4769, 4769 NAIC Company Code Employer's ID Number (Current Period) (Prior Period) Organized under the Laws of Florida, State of Domicile or Port of Entry FL Country of Domicile United States of America Incorporated/Organized 03/30/2005 Commenced Business 05/01/2005 Statutory Home Office 903 NW 65th Street Suite 200, Boca Raton, FL, US (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 903 NW 65th Street Suite 200 (Street and Number) Boca Raton, FL, US (877) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address P.O. Box 50969, Sarasota, FL, US (Street and Number or P.O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records P.O. Box (Street and Number) Sarasota, FL, US (877) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Website Address Statutory Statement Contact Francis Joseph Lattanzio (561) (Name) (Area Code)(Telephone Number)(Extension) fran.lattanzio@floridapeninsula.com (561) ( Address) (Fax Number) OFFICERS Paul Montgomery Adkins Stacey Alexander Giulianti Gary Andrew Cantor Name Roger Louis Desjadon Stacey Alexander Giulianti Francis Joseph Lattanzio OTHERS Title Chief Executive Officer Secretary Treasurer DIRECTORS OR TRUSTEES Francis Joseph Lattanzio Roger Louis Desjadon Clint Bryan Strauch State of Florida County of Palm Beach ss The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of the said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement. (Signature) (Signature) (Signature) Roger Louis Desjadon Stacey Alexander Giulianti Francis Joseph Lattanzio (Printed Name) (Printed Name) (Printed Name) Chief Executive Officer Secretary Treasurer (Title) (Title) (Title) Subscribed and sworn to before me this a. Is this an original filing? Yes[X] No[ ] day of, 2017 b. If no, 1. State the amendment number 2. Date filed 3. Number of pages attached (Notary Public Signature)

2 2 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY ASSETS Current Year Prior Year Net Admitted Nonadmitted Assets Net Admitted Assets Assets (Cols.1-2) Assets 1. Bonds (Schedule D) ,496, ,496, ,279, Stocks (Schedule D): 2.1 Preferred stocks.. 1,918, ,918,194 2,833, Common Stocks. 5,507, ,507, ,032, Mortgage loans on real estate (Schedule B): 3.1 First liens Other than first liens 4. Real estate (Schedule A): 4.1 Properties occupied by the company (less $...0 encumbrances). 4.2 Properties held for the production of income (less $...0 encumbrances). 4.3 Properties held for sale (less $...0 encumbrances) Cash ($...34,870,159, Schedule E Part 1), cash equivalents ($...0, Schedule E Part 2) and short-term investments ($...610,810, Schedule DA).. 35,480, ,480, ,531, Contract loans (including $...0 premium notes).. 7. Derivatives (Schedule DB). 8. Other invested assets (Schedule BA) ,466, ,466, ,817, Receivables for securities... 66, Securities Lending Reinvested Collateral Assets (Schedule DL) 11. Aggregate write-ins for invested assets. 12. Subtotals, cash and invested assets (Lines 1 to 11) 288,869, ,869, ,560, Title plants less $...0 charged off (for Title insurers only) 14. Investment income due and accrued. 1,417, ,417,369 1,384, Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection 1,284,956. 6,168 1,278, , Deferred premiums, agents' balances and installments booked but deferred and not yet due (Including $...0 earned but unbilled premiums).. 10,078, ,078, ,076, Accrued retrospective premiums ($...0) and contracts subject to redetermination ($...0). 16. Reinsurance: 16.1 Amounts recoverable from reinsurers. 5,412, ,412,456 1,956, Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts , , Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon... 5,118, ,118, Net deferred tax asset.... 5,990, ,990,328 6,975, Guaranty funds receivable or on deposit 20. Electronic data processing equipment and software. 21. Furniture and equipment, including health care delivery assets ($...0) Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates. 833, ,929 1,301, Health care ($...0) and other amounts receivable Aggregate write-ins for other than invested assets 2,178, ,756 1,906,532 2,037, TOTAL Assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) ,664, , ,386, ,215, From Separate Accounts, Segregated Accounts and Protected Cell Accounts TOTAL (Lines 26 and 27). 321,664, , ,386, ,215,569 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 11 from overflow page TOTALS (Lines 1101 through 1103 plus 1198) (Line 11 above) Prepaid Expenses. 271, , Goodwill , , , Brokerage Income Receivable.. 946, Summary of remaining write-ins for Line 25 from overflow page.... 1,643, ,643, , TOTALS (Lines 2501 through 2503 plus 2598) (Line 25 above).... 2,178, ,756 1,906,532 2,037,747

3 3 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current Year Prior Year 1. Losses (Part 2A, Line 35, Column 8)... 77,950, ,436, Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6) Loss adjustment expenses (Part 2A, Line 35, Column 9) 8,730,277 6,436, Commissions payable, contingent commissions and other similar charges Other expenses (excluding taxes, licenses and fees)... 52, , Taxes, licenses and fees (excluding federal and foreign income taxes) , Current federal and foreign income taxes (including $...0 on realized capital gains (losses)). 4,619, Net deferred tax liability.. 8. Borrowed money $...0 and interest thereon $ Unearned premiums (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of $...66,365,860 and including warranty reserves of $...0 and accrued accident and health experience rating refunds including $...0 for medical loss ratio rebate per the Public Health Service Act) ,500, ,156, Advance premiums. 5,335,972 5,583, Dividends declared and unpaid: 11.1 Stockholders Policyholders Ceded reinsurance premiums payable (net of ceding commissions). 37,901, ,869, Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 19) 26, , Amounts withheld or retained by company for account of others 84, , Remittances and items not allocated... 82, Provision for reinsurance (including ($...0 certified)) (Schedule F, Part 8) Net adjustments in assets and liabilities due to foreign exchange rates Drafts outstanding Payable to parent, subsidiaries and affiliates.. 220, Derivatives Payable for securities. 950, Payable for securities lending Liability for amounts held under uninsured plans Capital notes $...0 and interest thereon $ Aggregate write-ins for liabilities 10, TOTAL Liabilities excluding protected cell liabilities (Lines 1 through 25) ,845, ,314, Protected cell liabilities TOTAL Liabilities (Lines 26 and 27).. 190,845, ,314, Aggregate write-ins for special surplus funds. 30. Common capital stock.. 2,000,000 2,000, Preferred capital stock Aggregate write-ins for other than special surplus funds Surplus notes.. 10,477, ,683, Gross paid in and contributed surplus.. 47,000, ,000, Unassigned funds (surplus) 71,063, ,217, Less treasury stock, at cost: shares common (value included in Line 30 $...0) shares preferred (value included in Line 31 $...0) Surplus as regards policyholders (Lines 29 to 35, minus 36) (Page 4, Line 39). 130,541, ,901, TOTALS (Page 2, Line 28, Column 3).. 321,386, ,215,569 DETAILS OF WRITE-INS Deferred Ceding Commission.. 10, Summary of remaining write-ins for Line 25 from overflow page TOTALS (Lines 2501 through 2503 plus 2598) (Line 25 above). 10, Summary of remaining write-ins for Line 29 from overflow page TOTALS (Lines 2901 through 2903 plus 2998) (Line 29 above) Summary of remaining write-ins for Line 32 from overflow page TOTALS (Lines 3201 through 3203 plus 3298) (Line 32 above)...

4 4 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY STATEMENT OF INCOME 1 2 Current Prior Year Year UNDERWRITING INCOME 1. Premiums earned (Part 1, Line 35, Column 4). 112,529, ,109,640 DEDUCTIONS 2. Losses incurred (Part 2, Line 35, Column 7). 48,377, ,493, Loss adjustment expenses incurred (Part 3, Line 25, Column 1).. 31,415, ,104, Other underwriting expenses incurred (Part 3, Line 25, Column 2) ,232, ,999, Aggregate write-ins for underwriting deductions TOTAL Underwriting Deductions (Lines 2 through 5) ,025, ,597, Net income of protected cells. 8. Net underwriting gain or (loss) (Line 1 minus Line 6 plus Line 7) (5,495,609) ,512,627 INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line 17).... 4,459,342 4,792, Net realized capital gains (losses) less capital gains tax of $...992,744 (Exhibit of Capital Gains (Losses)).. 1,927,091 1,195, Net investment gain or (loss) (Lines ).. 6,386,433 5,987,793 OTHER INCOME 12. Net gain or (loss) from agents' or premium balances charged off (amount recovered $...0 amount charged off $...12,860). (12,860).. (52,932) 13. Finance and service charges not included in premiums. 577, , Aggregate write-ins for miscellaneous income.... 1,219,596 2,314, TOTAL Other Income (Lines 12 through 14)... 1,783,986 2,880, Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines ) 2,674, ,381, Dividends to policyholders 18. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 16 minus Line 17).... 2,674, ,381, Federal and foreign income taxes incurred.... (459,446) ,091, Net income (Line 18 minus Line 19) (to Line 22).. 3,134, ,290,262 CAPITAL AND SURPLUS ACCOUNT 21. Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2). 127,901, ,979, Net income (from Line 20)... 3,134, ,290, Net transfers (to) from Protected Cell accounts 24. Change in net unrealized capital gains or (losses) less capital gains tax of $...609,905. 2,104, (2,253,482) 25. Change in net unrealized foreign exchange capital gain (loss). 26. Change in net deferred income tax.... (375,170). (904,417) 27. Change in nonadmitted assets (Exhibit of Nonadmitted Assets Line 28, Column 3).. (17,672).... (4,266) 28. Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1). 29. Change in surplus notes... (2,205,882)... (2,205,882) 30. Surplus (contributed to) withdrawn from protected cells 31. Cumulative effect of changes in accounting principles Capital changes: 32.1 Paid in Transferred from surplus (Stock Dividend) Transferred to surplus. 33. Surplus adjustments: 33.1 Paid in Transferred to capital (Stock Dividend) 33.3 Transferred from capital Net remittances from or (to) Home Office Dividends to stockholders. 36. Change in treasury stock (Page 3, Line 36.1 and 36.2, Column 2 minus Column 1) 37. Aggregate write-ins for gains and losses in surplus 38. Change in surplus as regards policyholders for the year (Lines 22 through 37) 2,640, ,922, Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37) ,541, ,901,551 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 5 from overflow page TOTALS (Lines 0501 through 0503 plus 0598) (Line 5 above) Brokerage Income.... 1,215,892 2,314, Other Miscellaneous Income.. 3, Summary of remaining write-ins for Line 14 from overflow page TOTALS (Lines 1401 through 1403 plus 1498) (Line 14 above)... 1,219,596 2,314, Summary of remaining write-ins for Line 37 from overflow page TOTALS (Lines 3701 through 3703 plus 3798) (Lines 37 above)...

5 Cash from Operations CASH FLOW 1 2 Current Year Prior Year 1. Premiums collected net of reinsurance. 117,300, ,849, Net investment income.... 6,838,063 7,313, Miscellaneous income 1,303,768 2,880, TOTAL (Lines 1 through 3) 125,442, ,044, Benefit and loss related payments... 62,318, ,844, Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts 7. Commissions, expenses paid and aggregate write-ins for deductions. 68,242, ,133, Dividends paid to policyholders 9. Federal and foreign income taxes paid (recovered) net of $...992,774 tax on capital gains (losses) 10,271,628 8,368, TOTAL (Lines 5 through 9) 140,833, ,346, Net cash from operations (Line 4 minus Line 10).... (15,391,155)... (3,302,398) 12. Proceeds from investments sold, matured or repaid: Cash from Investments 12.1 Bonds. 108,429, ,888, Stocks.. 21,661,384 2,399, Mortgage loans Real estate Other invested assets... 66, , Net gains or (losses) on cash, cash equivalents and short-term investments.. (1,113).... (9,383) 12.7 Miscellaneous proceeds. 1,017, TOTAL Investment proceeds (Lines 12.1 to 12.7) ,173, ,402, Cost of investments acquired (long-term only): 13.1 Bonds. 110,481, ,871, Stocks. 759, ,764, Mortgage loans Real estate Other invested assets Miscellaneous applications.. 73, , TOTAL Investments acquired (Lines 13.1 to 13.6).. 111,313, ,883, Net increase (decrease) in contract loans and premium notes Net cash from investments (Line 12.8 minus Line 13.7 minus Line 14) 19,860,236.. (18,481,496) 16. Cash provided (applied): Cash from Financing and Miscellaneous Sources 16.1 Surplus notes, capital notes (2,205,882)... (2,205,882) 16.2 Capital and paid in surplus, less treasury stock 16.3 Borrowed funds Net deposits on deposit-type contracts and other insurance liabilities Dividends to stockholders Other cash provided (applied).. 685, (1,931,826) 17. Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6).. (1,519,984)... (4,137,708) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17).. 2,949,097.. (25,921,602) 19. Cash, cash equivalents and short-term investments: 19.1 Beginning of year... 32,531, ,453, End of year (Line 18 plus Line 19.1). 35,480, ,531,872 Note: Supplemental Disclosures of Cash Flow Information for Non-Cash Transactions:

6 6 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 1 - PREMIUMS EARNED Net Unearned Unearned Premiums Premiums Premiums Premiums Earned Written Per Dec. 31 Prior Year - Dec. 31 During Year Column 6, per Column 3, Current Year - per (Columns Line of Business Part 1B Last Year's Part 1 Column 5, Part 1A ) 1. Fire Allied lines. 3. Farmowners multiple peril.. 4. Homeowners multiple peril 109,826, ,137, ,480, ,483, Commercial multiple peril Mortgage guaranty. 8. Ocean marine. 9. Inland marine... 46, , , , Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made. 12. Earthquake 13. Group accident and health. 14. Credit accident and health (group and individual) Other accident and health Workers' compensation 17.1 Other liability - occurrence Other liability - claims-made 17.3 Excess Workers' Compensation 18.1 Products liability - occurrence Products liability - claims-made Private passenger auto liability Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity 24. Surety. 26. Burglary and theft Boiler and machinery Credit International Warranty Reinsurance-Nonproportional Assumed Property Reinsurance-Nonproportional Assumed Liability 33. Reinsurance-Nonproportional Assumed Financial Lines 34. Aggregate write-ins for other lines of business TOTALS ,873, ,156, ,500, ,529,455 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 3401 through 3403 plus 3498) (Line 34 above).

7 7 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 1A - RECAPITULATION OF ALL PREMIUMS Amount Unearned Amount Unearned Reserve for Total (Running One (Running More Rate Credits Reserve Year or Less Than One Year Earned and Retrospective For Unearned From Date From Date But Adjustments Premiums of Policy) of Policy) Unbilled Based on Columns Line of Business (a) (a) Premium Experience Fire Allied lines. 3. Farmowners multiple peril.. 4. Homeowners multiple peril ,480, ,480, Commercial multiple peril Mortgage guaranty. 8. Ocean marine.. 9. Inland marine 19,823 19, Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made Earthquake 13. Group accident and health Credit accident and health (group and individual) 15. Other accident and health Workers' compensation 17.1 Other liability - occurrence Other liability - claims-made 17.3 Excess Workers' Compensation 18.1 Products liability - occurrence Products liability - claims-made Private passenger auto liability Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity 24. Surety. 26. Burglary and theft Boiler and machinery Credit International Warranty Reinsurance-Nonproportional Assumed Property Reinsurance-Nonproportional Assumed Liability. 33. Reinsurance-Nonproportional Assumed Financial Lines 34. Aggregate write-ins for other lines of business TOTALS.. 59,500, ,500, Accrued retrospective premiums based on experience Earned but unbilled premiums Balance (Sum of Lines 35 through 37) ,500,014 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 3401 through 3403 plus 3498) (Line 34 above).. (a) State here basis of computation used in each case: Daily pro rata

8 8 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 1B - PREMIUMS WRITTEN 1 Reinsurance Assumed Reinsurance Ceded Net Premiums Direct Written Business From From To To Columns Line of Business (a) Affiliates Non-Affiliates Affiliates Non-Affiliates Fire.. 2. Allied lines Farmowners multiple peril 4. Homeowners multiple peril ,873, ,047, ,826, Commercial multiple peril. 6. Mortgage guaranty Ocean marine Inland marine. 63,827 17, , Financial guaranty Medical professional liability - occurrence Medical professional liability - claims-made. 12. Earthquake Group accident and health Credit accident and health (group and individual) Other accident and health 16. Workers' compensation Other liability - occurrence 17.2 Other liability - claims-made Excess Workers' Compensation Products liability - occurrence 18.2 Products liability - claims-made Private passenger auto liability Commercial auto liability 21. Auto physical damage Aircraft (all perils) 23. Fidelity Surety Burglary and theft 27. Boiler and machinery. 28. Credit International Warranty. 31. Reinsurance-Nonproportional Assumed Property. X X X Reinsurance-Nonproportional Assumed Liability.. X X X Reinsurance-Nonproportional Assumed Financial Lines... X X X Aggregate write-ins for other lines of business TOTALS. 253,937, ,064, ,873,339 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 3401 through 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 $...0. (2) Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $...0

9 9 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 2 - LOSSES PAID AND INCURRED Losses Paid Less Salvage Net Losses Losses Percentage of Net Unpaid Net Incurred Losses Incurred Payments Current Year Losses Current Year (Column 7, Part 2) Direct Reinsurance Reinsurance (Columns (Part 2A, Unpaid (Columns to Premiums Earned Line of Business Business Assumed Recovered ) Column 8) Prior Year ) (Column 4, Part 1) 1. Fire. 2. Allied lines Farmowners multiple peril. 4. Homeowners multiple peril 85,922,796. 1,840,809 28,911,049 58,852,557 77,907,595 88,386,004 48,374, Commercial multiple peril. 6. Mortgage guaranty Ocean marine Inland marine , ,927 10,390 43,170 50,444. 3, Financial guaranty 11.1 Medical professional liability - occurrence Medical professional liability - claims-made Earthquake Group accident and health 14. Credit accident and health (group and individual) 15. Other accident and health. 16. Workers' compensation Other liability - occurrence 17.2 Other liability - claims-made Excess Workers' Compensation Products liability - occurrence Products liability - claims made Private passenger auto liability Commercial auto liability. 21. Auto physical damage. 22. Aircraft (all perils). 23. Fidelity Surety Burglary and theft 27. Boiler and machinery Credit International. 30. Warranty 31. Reinsurance-Nonproportional Assumed Property X X X. 32. Reinsurance-Nonproportional Assumed Liability. X X X. 33. Reinsurance-Nonproportional Assumed Financial Lines... X X X. 34. Aggregate write-ins for other lines of business TOTALS. 85,940,113. 1,840,809 28,917,975 58,862,947 77,950,765 88,436,448 48,377, DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 3401 through 3403 plus 3498) (Line 34 above)

10 10 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 2A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported Net Losses Excluding Net Net Deduct Incurred But Not Losses Unpaid Unpaid Loss Reinsurance Reinsurance Reported Reinsurance Reinsurance (Columns Adjustment Line of Business Direct Assumed Recoverable (Columns ) Direct Assumed Ceded ) Expenses 1. Fire. 2. Allied Lines.. 3. Farmowners multiple peril. 4. Homeowners multiple peril. 31,358, ,517. 9,830,804 22,124,176 79,324,949 79,360 23,620,890 77,907,595. 8,726, Commercial multiple peril.. 6. Mortgage guaranty Ocean marine Inland marine , ,943 43,170. 3, Financial guaranty 11.1 Medical professional liability - occurrence 11.2 Medical professional liability - claims-made Earthquake Group accident & health. (a) Credit accident & health (group & individual). 15. Other accident & health.. (a) Workers' compensation Other liability - occurrence Other liability - claims-made Excess Workers' Compensation 18.1 Products liability - occurrence Products liability - claims-made Private passenger auto liability Commercial auto liability Auto physical damage 22. Aircraft (all perils). 23. Fidelity Surety Burglary and theft 27. Boiler and machinery. 28. Credit International. 30. Warranty 31. Reinsurance-Nonproportional Assumed Property.. X X X... X X X. 32. Reinsurance-Nonproportional Assumed Liability... X X X... X X X. 33. Reinsurance-Nonproportional Assumed Financial Lines X X X... X X X. 34. Aggregate write-ins for other lines of business TOTALS... 31,358, ,517. 9,830,804 22,124,176 79,379,062 79,360 23,631,833 77,950,765. 8,730,277 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page TOTALS (Lines 3401 through 3403 plus 3498) (Line 34 above).... (a) Including $...0 for present value of life indemnity claims.

11 11 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 3 - EXPENSES Loss Other Adjustment Underwriting Investment Expenses Expenses Expenses Total 1. Claim adjustment services: 1.1 Direct.. 26,165,102 26,165, Reinsurance assumed 479, , Reinsurance ceded. 8,603,218. 8,603, Net claim adjustment services ( ).. 18,041,826 18,041, Commission and brokerage: 2.1 Direct, excluding contingent... 24,344, ,344, Reinsurance assumed, excluding contingent Reinsurance ceded, excluding contingent. 35,074, ,074, Contingent - direct , , Contingent - reinsurance assumed. 2.6 Contingent - reinsurance ceded.. 627, , Policy and membership fees... 1,608, ,608, Net commission and brokerage ( ) (9,297,742). (9,297,742) 3. Allowances to manager and agents Advertising Boards, bureaus and associations 8,559, ,559, Surveys and underwriting reports.. 7. Audit of assureds' records 8. Salary and related items: 8.1 Salaries 7,535, ,438, , ,132, Payroll taxes.. 281, ,728. 5,905 1,014, Employee relations and welfare ,127 1,421, ,551 1,984, Insurance 11. Directors' fees 12. Travel and travel items , ,395. 7,641 1,312, Rent and rent items Equipment Cost or depreciation of EDP equipment and software ,601 1,007,519. 8,186 1,406, Printing and stationery. 19, , , Postage, telephone and telegraph, exchange and express.. 31, , , Legal and auditing.. 4,198, ,828, , ,115, TOTALS (Lines 3 to 18) ,373, ,055, , ,709, Taxes, licenses and fees: 20.1 State and local insurance taxes deducting guaranty association credits of $...0 3,254, ,254, Insurance department licenses and fees 9, , Gross guaranty association assessments All other (excluding federal and foreign income and real estate) , , TOTAL taxes, licenses and fees ( ) 3,393, ,393, Real estate expenses. 22. Real estate taxes. 23. Reimbursements by uninsured plans Aggregate write-ins for miscellaneous expenses... 1,081,104 1,118,145 2,199, TOTAL expenses incurred 31,415, ,232,178 1,398,436 (a) 71,046, Less unpaid expenses - current year.... 8,731,249. 4, ,736, Add unpaid expenses - prior year... 6,463, , ,330, Amounts receivable relating to uninsured plans, prior year. 29. Amounts receivable relating to uninsured plans, current year TOTAL EXPENSES PAID (Lines )... 29,147, ,095,490 1,397, ,640,903 DETAILS OF WRITE-INS Donations , , Other Miscellaneous Expenses... 11, , Bank Service Charges and Investment Fees. 859, ,596 1,758, Summary of remaining write-ins for Line 24 from overflow page. 218, , TOTALS (Lines 2401 through 2403 plus 2498) (Line 24 above) 1,081,104 1,118,145 2,199,249 (a) Includes management fees of $...79,124,619 to affiliates and $...377,965 to non-affiliates.

12 12 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY EXHIBIT OF NET INVESTMENT INCOME 1 2 Collected Earned During Year During Year 1. U.S. Government bonds (a) , , Bonds exempt from U.S. tax (a) , , Other bonds (unaffiliated)... (a).. 3,298,073 3,260, Bonds of affiliates.. (a) Preferred stocks (unaffiliated)... (b) , , Preferred stocks of affiliates (b) Common stocks (unaffiliated). 168, , Common stocks of affiliates.. 3. Mortgage loans (c).. 4. Real estate (d).. 5. Contract loans Cash, cash equivalents and short-term investments. (e). 60, , Derivative instruments.. (f) Other invested assets.. 1,381,707 1,380, Aggregate write-ins for investment income 10. TOTAL Gross investment income... 5,824,227 5,857, Investment expenses.... (g).. 1,179, Investment taxes, licenses and fees, excluding federal income taxes. (g) Interest expense (h) , Depreciation on real estate and other invested assets.... (i) 15. Aggregate write-ins for deductions from investment income 16. TOTAL Deductions (Lines 11 through 15).... 1,398, Net Investment income (Line 10 minus Line 16). 4,459,342 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page TOTALS (Lines 0901 through 0903 plus 0998) (Line 9 above) Summary of remaining write-ins for Line 15 from overflow page TOTALS (Lines 1501 through 1503 plus 1598) (Line 15 above) (a) Includes $...150,296 accrual of discount less $...2,524,001 amortization of premium and less $...260,459 paid for accrued interest on purchases. (b) Includes $...8,993 accrual of discount less $...0 amortization of premium and less $...0 paid for accrued dividends on purchases. (c) Includes $...0 accrual of discount less $...0 amortization of premium and less $...0 paid for accrued interest on purchases. (d) Includes $...0 for company's occupancy of its own buildings; and excludes $...0 interest on encumbrances. (e) Includes $...8,929 accrual of discount less $...100,054 amortization of premium and less $...14,582 paid for accrued interest on purchases. (f) Includes $...0 accrual of discount less $...0 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 $...218,549 interest on surplus notes and $...0 interest on capital notes. (i) Includes $...0 depreciation on real estate and $...0 depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) Total Realized Change in Realized Gain Capital Gain Change in Unrealized Foreign (Loss) on Sales Other Realized (Loss) Unrealized Capital Exchange Capital or Maturity Adjustments (Columns 1 + 2) Gain (Loss) Gain (Loss) 1. U.S. Government bonds 203, , , Bonds exempt from U.S. tax 381, , Other bonds (unaffiliated). 2,002, ,002, , Bonds of affiliates Preferred stocks (unaffiliated) , , , Preferred stocks of affiliates Common stocks (unaffiliated) , , , Common stocks of affiliates , Mortgage loans 4. Real estate 5. Contract loans. 6. Cash, cash equivalents and short-term investments... (1,113) (1,113) Derivative instruments. 8. Other invested assets 715, Aggregate write-ins for capital gains (losses) TOTAL Capital gains (losses). 2,919, ,919,835 2,714,407.. DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page TOTALS (Lines 0901 through 0903 plus 0998) (Line 9 above)..

13 13 ANNUAL STATEMENT FOR THE YEAR OF THE 2016 FLORIDA PENINSULA INSURANCE COMPANY EXHIBIT OF NONADMITTED ASSETS Change in Total Current Year Total Prior Year Total Nonadmitted Assets Nonadmitted Assets Nonadmitted Assets (Col. 2 - Col. 1) 1. Bonds (Schedule D) 2. Stocks (Schedule D): 2.1 Preferred stocks Common stocks 3. Mortgage loans on real estate (Schedule B): 3.1 First liens Other than first liens 4. Real estate (Schedule A): 4.1 Properties occupied by the company 4.2 Properties held for the production of income 4.3 Properties held for sale. 5. Cash (Schedule E-Part 1), cash equivalents (Schedule E-Part 2) and short-term investments (Schedule DA). 6. Contract loans.. 7. Derivatives (Schedule DB).. 8. Other invested assets (Schedule BA) Receivables for securities Securities lending reinvested collateral assets (Schedule DL) Aggregate write-ins for invested assets Subtotals, cash and invested assets (Lines 1 to 11). 13. Title plants (for Title insurers only) Invested income due and accrued Premium and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection.... 6,168. 6, Deferred premiums, agents' balances and installments booked but deferred and not yet due Accrued retrospective premiums and contracts subject to redetermination Reinsurance: 16.1 Amounts recoverable from reinsurers Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon Net deferred tax asset Guaranty funds receivable or on deposit. 20. Electronic data processing equipment and software. 21. Furniture and equipment, including health care delivery assets Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates. 24. Health care and other amounts receivable Aggregate write-ins for other than invested assets.. 271, ,262.. (18,494) 26. TOTAL Assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25). 277, ,253.. (17,672) 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts TOTAL (Lines 26 and 27). 277, ,253.. (17,672) DETAILS OF WRITE-INS Summary of remaining write-ins for Line 11 from overflow page TOTALS (Lines 1101 through 1103 plus 1198) (Line 11 above) Prepaid Expenses 271, ,262.. (18,494) Summary of remaining write-ins for Line 25 from overflow page TOTALS (Lines 2501 through 2503 plus 2598) (Line 25 above). 271, ,262.. (18,494)

14 Notes to Financial Statements Note 1 Summary of Significant Accounting Policies and Going Concern A. Accounting Practices, Impact of NAIC/State Differences The accompanying financial statements of Florida Peninsula Insurance Company (Company) have been prepared in conformity with accounting practice prescribed or permitted by the National Association of Insurance Commissioners (NAIC) and the State of Florida. The Florida Office of Insurance Regulation recognizes only statutory accounting practices prescribed or permitted by the State of Florida for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under Florida insurance law. The NAIC Accounting Practices and Procedures Manual (SAP) has been adopted as a component of prescribed or permitted practices by the State of Florida. A reconciliation of the Company s net income and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of Florida is shown below: SSAP # F/S Page F/S Line # Net Income (1) Company state basis (Page 4, Line 20, Columns 1 & 2) XXX XXX XXX 3,134,256 26,290,262 (2) State Prescribed Practices that (increase)/decrease NAIC SAP (3) State Permitted Practices that (increase)/decrease NAIC SAP (4) NAIC SAP( = 4) XXX XXX XXX 3,134,256 26,290,262 SSAP # F/S Page F/S Line # Surplus (5) Company state basis (Page 3, Line 37, Columns 1 & 2) XXX XXX XXX 130,541, ,901,551 (6) State Prescribed Practices that (increase)/decrease NAIC SAP (7) State Permitted Practices that (increase)/decrease NAIC SAP (8) NAIC SAP( = 8) XXX XXX XXX 130,541, ,901,551 B. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in these financial statements and notes. Actual results could differ from these estimates. C. Accounting Policies Direct and ceded premiums are earned over the terms of the related policies and reinsurance contracts. Unearned premiums are established to cover the unexpired portion of premiums written. Such reserves are computed by pro rata methods for direct and ceded business. Premiums receivable are due from policyholders and are charged off when specific balances are determined to be uncollectable. Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as sales commissions, are charged to operations as incurred. Expenses incurred are reduced for ceding allowances received or receivable. Net investment income earned consists of interest and dividendincome reduced by investment related expenses. Interest is recognized on an accrual basis and dividends are recognized on an ex-dividend basis. Net realized capital gains (losses) are recognized on a specific identification basis when securities are sold, redeemed or otherwise disposed. In addition, the Company uses the following accounting policies: 1. Basis of Valuation of Short-Term Investments Short-term investments are stated at amortized value using the interest method. Non-investment grade short-term investments are stated at the lower of amortized value or fair value. 2. Basis of Valuation of Bonds Investment grade non-loan-backed bonds with NAIC designations 1 or 2 are stated at amortized value using the interest method. Non-investment grade non-loan-backed bonds with NAIC designations of 3 through 6 are stated at the lower of amortized value or fair value. See paragraph 6 for loan-backed and structured securities. 3. Basis of Valuation of Common Stocks Common stocks are stated at fair value. 4. Basis of Valuation of Preferred Stocks Investment grade redeemable preferred stocks are stated at amortized value. Investment grade perpetual preferred stocks are stated at fair value. Non-investment grade preferred stocks are stated at the lower of amortized cost or fair value. 5. Basis of Valuation of Mortgage Loans 6. Basis of Valuation of Loan-Backed Securities U.S. government agency loan-backed and structured securities are valued at amortized value. Other loanbacked and structured securities are valued at either amortized value or fair value, depending on many factors including: the type of underlying collateral, whether modeled by NAIC vendor, whether rated (by either NAIC approved rating organization or NAIC Securities Valuation Office), and relationship of amortized value to par value and amortized value to fair value. 14

15 Notes to Financial Statements 7. Basis of Valuation of Subsidiary, Controlled, and Affiliated 8. Basis of Valuation of Joint Ventures, Partnerships, LLCs 9. Basis of Valuation of Derivatives 10. Premium Deficiency Reserve 11. Method of Establishing Loss and LAE Reserves Unpaid losses and loss adjustment expenses include an amount determined from individual case estimates and loss reports and an amount, based on past experience, for losses incurred but not reported. Such liabilities are necessarily based on assumptions and estimates although, while management believes the amounts are adequate, the ultimate liabilities may be in excess of or less than the amount provided. The methods for making such estimates and for establishing the resulting liabilities are continually reviewed and any adjustments are reflected in the period determined. 12. Change in Capitalization Policy The Company has a written capitalization policy for prepaid expenses. The predefined capitalization thresholds under this policy have not changed from those of the prior year. 13. Method of Estimating Pharmaceutical Rebate Receivables D. Going Concern Based upon its evaluation of relevant conditions and events, management does not have substantial doubt about the Company s ability to continue as a going concern. Note 2 Accounting Changes and Corrections of Errors Note 3 Business Combinations and Goodwill A. Statutory Purchase Method 1. On January 5th, 2010, Edison Insurance Group, LLC was purchased by Florida Peninsula Holdings, LLC. Edison Insurance Company is a wholly owned subsidiary of Edison Insurance Group, LLC. Florida Peninsula Holdings, LLC then contributed 100% of the shares of Edison Insurance Company to Florida Peninsula Insurance Company. 2. The transaction above was accounted for as a statutory purchase. 3. The cost of the Edison Insurance Group, LLC acquisition was 4,875,830, resulting in goodwill of 875,830 of which 262,749 is unamortized. 4. Goodwill is amortized over ten years. Current year goodwill amortization on the purchase of Edison Insurance Group, LLC was 87,583. Goodwill amortization is recorded as a component of the change in net unrealized capital gains (losses). B. Statutory Mergers C. Writedowns for Impairment of Investments in Affiliates Note 4 Discontinued Operations Note 5 Investments A. Mortgage Loans B. Troubled Debt Restructuring for Creditors C. Reverse Mortgages D. Loan-Backed and Structured Securities 1. Prepayment assumptions for fixed rate agency mortgage-backed securities are determined using constant prepayment rates obtained from a broker-dealer survey. Prepayment assumptions for other loan-backed and structured securities are obtained from an outside vendor using a model/scenario based on the current interest rate and economic environment. 14.1

16 Notes to Financial Statements Loan-backed and structured securities in unrealized loss positions as of quarter-end, stratified based on length of time continuously in these unrealized loss positions, are as follows: 5. Bonds in an unrealized loss position are regularly reviewed for other-than temporary declines in value. Factors considered in determining whether a decline is other-than-temporary include the length of time a bond has been in an unrealized loss position and the reasons for the decline in value. Assessments include judgments about an obligor's or guarantor's current and projected financial position projected ability to service and repay its debt obligations, the existence of, and realizable value for, any collateral backing the obligations, and the macro-economic and micro-economic outlooks for specific industries and issuers. Estimating the future cash flows of loan-backed securities also involves assumptions regarding the underlying collateral such as prepayment rates, default and recovery rates, existence of subordinated classes capable of absorbing losses, and thirdparty servicing abilities. E. Repurchase Agreements and/or Securities Lending Transactions F. Writedowns for Impairments of Real Estate, Real Estate Sales, Retail Land Sales Operations and Real Estate with Participating Mortgage Loan Features G. Low Income Housing Tax Credits H. Restricted Assets a. Aggregate amount of unrealized loss 1. Less than tw elve months 507, Tw elve months or longer 38,529 b. Aggregate fair value of securities with unrealized loss 1. Less than tw elve months 39,766, Tw elve months or longer 3,037,048 Gross Restricted (Admitted & Nonadmitted) Restricted Current Year Current Year Percentage Gross Total (Admitted & G/A Supporting Protected Cell Protected Cell Nonadmitted) Protected Cell Account Account Assets Increase/ Total Total Admitted Restricted to Account Activity Restricted Supporting G/A Total Total From (Decrease) Nonadmitted Restricted (5 Total Assets (a) Assets Activity (b) (1 plus 3) Prior Year (5 minus 6) Restricted minus 8) (c) Total General Account (G/A) Admitted Restricted to Total Admitted Assets (d) Restricted Asset Category A. Subject to contractual obligation for which liability is not show n B. Collateral held under security lending arrangements C. Subject to repurchase agreements D. Subject to reverse repurchase agreements E. Subject to dollar repurchase agreements F. Subject to dollar reverse repurchase agreements G. Placed under option contracts H. Letter stock or securities restricted as to sale - excluding FHLB capital stock I. FHLB capital stock 294, , , , % 0.09% J. On deposit w ith states 426, , ,553 (325) 426, % 0.13% K. On deposit with other regulatory bodies L. Pledged as collateral to FHLB (including assets backing funding agreements) M. Pledged as collateral not captured in other categories N. Other restricted assets O. Total restricted assets 426, , ,553 (325) 426, % 0.133% (a) Subset of column 1 (b) Subset of column 3 (c) Column 5 divided by Asset Page, Column 1, Line 28 (d) Column 9 divided by Asset Page, Column 3, Line 28 I. Working Capital Finance Investments J. Offsetting and Netting of Assets and Liabilities K. Structured Notes Mortgage- CUSIP Book/Adjusted Referenced Security Identification Actual Cost Fair Value Carrying Value (Yes/No) 00170F209RP 1,353,461 1,263,563 1,336,459 No AG6 94, ,425 95,103 No AH2 173, , ,741 No AD2 163, , ,031 No AF7 774,780 1,077, ,315 No 50540RAG7 215, , ,375 No AB8 1,157,648 1,278,852 1,163,256 No 60855RAD2 499, , ,384 No AF0 237, , ,882 No AF6 574, , ,535 No XL9 761, , ,998 No AJ7 359, , ,277 No Total 6,364,638 6,851,340 6,170,356 XXX 14.2

17 Notes to Financial Statements L. 5* Securities Note 6 Joint Ventures, Partnerships and Limited Liability Companies A. Detail for Those Greater than 10% of Admitted Assets B. Writedowns for Impairment of Joint Ventures, Partnerships and LLCs Note 7 Investment Income A. Accrued Investment Income The Company does not admit investment income due and accrued if amounts are over 90 days past due. B. Amounts Nonadmitted Note 8 Derivative Instruments A.-F. Purpose, Risks, Accounting Note 9 Income Taxes A. Deferred Tax Asset/(Liability) 1. Components of Net Deferred Tax Asset/(Liability) Change (Col 1+2) (Col 4+5) (Col 1-4) (Col 2-5) (Col 7+8) Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total a. Gross deferred tax assets 6,045,993 87,862 6,133,855 6,426, ,767 7,124,401 (380,641) (609,905) (990,546) b. Statutory valuation allow ance adjustment c. Adjusted gross deferred tax assets (1a-1b) 6,045,993 87,862 6,133,855 6,426, ,767 7,124,401 (380,641) (609,905) (990,546) d. Deferred tax assets nonadmitted - - e. Subtotal net admitted deferred tax asset (1c-1d) 6,045,993 87,862 6,133,855 6,426, ,767 7,124,401 (380,641) (609,905) (990,546) f. Deferred tax liabilities 143, , , ,998 (5,472) (5,472) g. Net admitted deferred tax assets/(net defered tax liability) (1e-1f) 5,902,467 87,862 5,990,328 6,277, ,767 6,975,403 (375,169) (609,905) (985,075) 2. Admission Calculation Components Change (Col 1+2) (Col 4+5) (Col 1-4) (Col 2-5) (Col 7+8) Ordinary Capital Total Ordinary Capital Total Ordinary Capital Total a. Federal income taxes paid in prior years recoverable through loss carrybacks 5,902,467 87,862 5,990,328 6,277, ,767 6,975,403 (375,169) (609,905) (985,075) b. Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of threshold limitation. (The lesser of paragraph 2(b)1 and 2(b)2 below ): Adjusted gross deferred tax assets expected to be realized follow ing the balance sheet date Adjusted gross deferred tax assets allow ed per limitation threshold xxx xxx 18,682,688 xxx xxx 18,138,922 xxx xxx 543,766 c. Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities 143, , , ,998 (5,472) (5,472) d. Deferred tax assets admitted as the result of application of SSAP 101 Total (2(a)+2(b)+2(c) 6,045,993 87,862 6,133,855 6,426, ,767 7,124,401 (380,641) (609,905) (990,546) 3. Other Admissibility Criteria a. Ratio percentage used to determine recovery period and threshold limitation amount b. Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in 2(b)2 above 124,551, ,926,