* * PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION

Transcription

1 PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION * * ANNUAL STATEMENT For the Year Ended December 31, 2016 of the Condition and Affairs of the NAIC Group Code...93, 93 NAIC Company Code Employer's ID Number (Current Period) (Prior Period) Organized under the Laws of TEXAS State of Domicile or Port of Entry TEXAS Country of Domicile US Incorporated/Organized... November 30, 1960 Commenced Business... April 1, 1963 Statutory Home Office 1900 L. Don Dodson Dr... Bedford... TX... US (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 1900 L. Don Dodson Dr... Bedford... TX... US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address 1900 L. Don Dodson Dr... Bedford... TX... US (Street and Number or P. O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records 1900 L. Don Dodson Dr... Bedford... TX... US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Web Site Address Statutory Statement Contact Shelly Dianne McChesney (Name) (Area Code) (Telephone Number) (Extension) regulatoryreporting@statenational.com ( Address) (Fax Number) OFFICERS Name Title Name Title Terry Lee Ledbetter Chairman of the Board and CEO Matthew Anthony Freeman # President David Donaldson Hale Treasurer Lonnie Kossuth Ledbetter III Secretary David Martin Cleff Assistant Secretary OTHER DIRECTORS OR TRUSTEES Eugene Elmer Becker # Marsha Ann Cameron # Matthew Anthony Freeman # David Edward King # Lonnie Kossuth Ledbetter Terry Lee Ledbetter Ferdinand Herbert Reichelt State of... County of... Texas Tarrant The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (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) Matthew Anthony Freeman Lonnie Kossuth Ledbetter III David Donaldson Hale (Printed Name) (Printed Name) (Printed Name) President Secretary Treasurer (Title) (Title) (Title) Subscribed and sworn to before me a. Is this an original filing? Yes [ X ] No [ ] This 20th day of February, 2017 b. If no 1. State the amendment number 2. filed 3. Number of pages attached

2 1. Bonds: SUMMARY INVESTMENT SCHEDULE Gross Admitted Assets as Reported Investment Holdings in the Annual Statement Securities Lending Total Reinvested (Col ) Investment Categories Amount Percentage Amount Collateral Amount Amount Percentage 1.1 U.S. treasury securities ,096, ,096, ,096, U.S. government agency obligations (excluding mortgage-backed securities): 1.21 Issued by U.S. government agencies Issued by U.S. government sponsored agencies ,521, ,521, ,521, Non-U.S. government (including Canada, excluding mortgagebacked securities) Securities issued by states, territories and possessions and political subdivisions in the U.S.: 1.41 States, territories and possessions general obligations ,160, ,160, ,160, Political subdivisions of states, territories and possessions and political subdivisions general obligations ,913, ,913, ,913, Revenue and assessment obligations ,708, ,708, ,708, Industrial development and similar obligations , , , Mortgage-backed securities (includes residential and commercial MBS): 1.51 Pass-through securities: Issued or guaranteed by GNMA , , , Issued or guaranteed by FNMA and FHLMC ,035, ,035, ,035, All other , , , CMOs and REMICs: Issued or guaranteed by GNMA, FNMA, FHLMC or VA ,294, ,294, ,294, Issued by non-u.s. Government issuers and collateralized by mortgage-based securities issued or guaranteed by agencies shown in Line All other ,050, ,050, ,050, Other debt and other fixed income securities (excluding short-term): 2.1 Unaffiliated domestic securities (includes credit tenant loans and hybrid securities) ,832, ,832, ,832, Unaffiliated non-u.s. securities (including Canada) ,902, ,902, ,902, Affiliated securities Equity interests: 3.1 Investments in mutual funds Preferred stocks: 3.21 Affiliated Unaffiliated Publicly traded equity securities (excluding preferred stocks): 3.31 Affiliated Unaffiliated Other equity securities: 3.41 Affiliated Unaffiliated Other equity interests including tangible personal property under lease: 3.51 Affiliated Unaffiliated Mortgage loans: 4.1 Construction and land development Agricultural Single family residential properties Multifamily residential properties Commercial loans Mezzanine real estate loans Real estate investments: 5.1 Property occupied by company Property held for production of income (including $...0 of property acquired in satisfaction of debt) Property held for sale (including $...0 property acquired in satisfaction of debt) Contract loans Derivatives Receivables for securities , , , Securities lending (Line 10, Asset Page reinvested collateral) xxx......xxx......xxx Cash, cash equivalents and short-term investments ,337, ,337, ,337, Other invested assets Total invested assets ,785, ,785, ,785, SI01

3 SCHEDULE A - VERIFICATION BETWEEN YEARS Real Estate 1. Book/adjusted carrying value, December 31 of prior year Cost of acquired: 2.1 Actual cost at time of acquisition (Part 2, Column 6) Additional investment made after acquisition (Part 2, Column 9) Current year change in encumbrances: 3.1 Totals, Part 1, Column Totals, Part 3, Column Total gain (loss) on disposals, Part 3, Column Deduct amounts received on disposals, Part 3, Column Total foreign exchange change in book/adjusted carrying value: 6.1 Totals, Part 1, Column Totals, Part 3, Column Deduct current year's other-than-temporary impairment recognized: 7.1 Totals, Part 1, Column Totals, Part 3, Column Deduct current year's depreciation: 8.1 Totals, Part 1, Column Totals, Part 3, Column Book/adjusted carrying value at end of current period (Lines ) Deduct total nonadmitted amounts Statement value at end of current period (Line 9 minus Line 10)... 0 SCHEDULE B - VERIFICATION BETWEEN YEARS Mortgage Loans 1. Book value/recorded investment excluding accrued interest, December 31 of prior year Cost of acquired: 2.1 Actual cost at time of acquisition (Part 2, Column 7) Additional investment made after acquisition (Part 2, Column 8) Capitalized deferred interest and other: 3.1 Totals, Part 1, Column Totals, Part 3, Column Accrual of discount Unrealized valuation increase (decrease): 5.1 Totals, Part 1, Column Totals, Part 3, Column Total gain (loss) on disposals, Part 3, Column Deduct amounts received on disposals, Part 3, Column Deduct amortization of premium and mortgage interest points and commitment fees Total foreign exchange change in book value/recorded investment excluding accrued interest: 9.1 Totals, Part 1, Column Totals, Part 3, Column Deduct current year's other-than-temporary impairment recognized: 10.1 Totals, Part 1, Column Totals, Part 3, Column Book value/recorded investment excluding accrued interest at end of current period (Lines ) Total valuation allowance Subtotal (Line 11 plus Line 12) Deduct total nonadmitted amounts Statement value at end of current period (Line 13 minus Line 14)... 0 SI02

4 SCHEDULE BA - VERIFICATION BETWEEN YEARS Other Long-Term Invested Assets 1. Book/adjusted carrying value, December 31 of prior year Cost of acquired: 2.1 Actual cost at time of acquisition (Part 2, Column 8) Additional investment made after acquisition (Part 2, Column 9) Capitalized deferred interest and other: 3.1 Totals, Part 1, Column Totals, Part 3, Column Accrual of discount Unrealized valuation increase (decrease): 5.1 Totals, Part 1, Column Totals, Part 3, Column Total gain (loss) on disposals, Part 3, Column Deduct amounts received on disposals, Part 3, Column Deduct amortization of premium and depreciation Total foreign exchange change in book/adjusted carrying value: 9.1 Totals, Part 1, Column Totals, Part 3, Column Deduct current year's other-than-temporary impairment recognized: 10.1 Totals, Part 1, Column Totals, Part 3, Column Book/adjusted carrying value at end of current period (Lines ) Deduct total nonadmitted amounts Statement value at end of current period (Line 11 minus Line 12)... 0 SCHEDULE D - VERIFICATION BETWEEN YEARS Bonds and Stocks 1. Book/adjusted carrying value, December 31 of prior year... 54,851, Cost of bonds and stocks acquired, Part 3, Column ,303, Accrual of discount... 20, Unrealized valuation increase (decrease): 4.1 Part 1, Column (7,425) 4.2 Part 2, Section 1, Column Part 2, Section 2, Column Part 4, Column (7,425) 5. Total gain (loss) on disposals, Part 4, Column , Deduct consideration for bonds and stocks disposed of, Part 4, Column ,385, Deduct amortization of premium , Total foreign exchange change in book/adjusted carrying value: 8.1 Part 1, Column Part 2, Section 1, Column Part 2, Section 2, Column Part 4, Column Deduct current year's other-than-temporary impairment recognized: 9.1 Part 1, Column Part 2, Section 1, Column Part 2, Section 2, Column Part 4, Column Book/adjusted carrying value at end of current period (Lines )... 61,437, Deduct total nonadmitted amounts Statement value at end of current period (Line 10 minus Line 11)... 61,437,183 SI03

5 SCHEDULE D - SUMMARY BY COUNTRY Long-Term Bonds and Stocks OWNED December 31 of Current Year Book/Adjusted Par Value Description Carrying Value Fair Value Actual Cost of Bonds BONDS 1. United States ,387, ,422, ,483, ,241,692 Governments (Including all obligations 2. Canada guaranteed by governments) 3. Other Countries U.S. States, Territories and Possessions 4. Totals ,387, ,422, ,483, ,241,692 (Direct and guaranteed) 5. Totals ,160, ,180, ,222, ,020,000 U.S. Political Subdivisions of States, Territories and Possessions (Direct and guaranteed) 6. Totals ,913, ,923, ,095, ,410,000 U.S. Special Revenue and Special Assessment Obligations and All Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their Political Subdivisions 7. Totals ,217, ,206, ,582, ,477,959 Industrial and Miscellaneous, SVO Identified 8. United States ,855, ,741, ,933, ,413,374 Funds and Hybrid Securities (unaffiliated) 9. Canada , , , , Other Countries ,154, ,116, ,152, ,160, Totals ,757, ,576, ,833, ,323,374 Parent, Subsidiaries and Affiliates 12. Totals Total Bonds ,437, ,309, ,217, ,473,025 PREFERRED STOCKS 14. United States Industrial and Miscellaneous (Unaffiliated) 15. Canada Other Countries Totals Parent, Subsidiaries and Affiliates 18. Totals Total Preferred Stocks COMMON STOCKS 20. United States Industrial and Miscellaneous (Unaffiliated) 21. Canada Other Countries Totals Parent, Subsidiaries and Affiliates 24. Totals Total Common Stocks Total Stocks Total Bonds and Stocks ,437, ,309, ,217,969 SI04

6 SI05 Annual Statement for the year 2016 of the SCHEDULE D - PART 1A - SECTION 1 Quality and Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Types of Issues and NAIC Designations Year Over 1 Year Over 5 Years Over 10 Years Over 20 No Maturity Total Column 7 as a Total from Column % from Col. 7 Total Total NAIC Designation or Less Through 5 Years Through 10 Years Through 20 Years Years Current Year % of Line Prior Year Prior Year Publicly Traded Privately Placed (a) 1. U.S. Governments 1.1 NAIC ,477, ,616, ,159, , ,162,544...XXX ,021, ,936, ,893, , NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX Totals ,477, ,616, ,159, , ,162,544...XXX ,021, ,936, ,893, , All Other Governments 2.1 NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX Totals XXX U.S. States, Territories and Possessions, etc., Guaranteed 3.1 NAIC , , XXX ,160, ,428, ,160, NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX Totals , , XXX ,160, ,428, ,160, U.S. Political Subdivisions of States, Territories and Possessions, Guaranteed 4.1 NAIC , , ,683, XXX ,913, ,738, ,913, NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX Totals , , ,683, XXX ,913, ,738, ,913, U.S. Special Revenue & Special Assessment Obligations, etc., Non-Guaranteed 5.1 NAIC ,010, ,505, ,227, ,323, ,576...XXX ,217, ,942, ,217, NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX Totals ,010, ,505, ,227, ,323, ,576...XXX ,217, ,942, ,217,

7 SI06 Annual Statement for the year 2016 of the SCHEDULE D - PART 1A - SECTION 1 (continued) Quality and Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Types of Issues and NAIC Designations Year Over 1 Year Over 5 Years Over 10 Years Over 20 No Maturity Total Column 7 as a Total from Column % from Col. 7 Total Total NAIC Designation or Less Through 5 Years Through 10 Years Through 20 Years Years Current Year % of Line Prior Year Prior Year Publicly Traded Privately Placed (a) 6. Industrial and Miscellaneous (unaffiliated) 6.1 NAIC ,443, ,681, ,369, , ,049...XXX ,804, ,229, ,671, ,132, NAIC , ,201, ,424, , XXX ,861, ,349, ,690, ,170, NAIC , XXX , , NAIC XXX NAIC XXX NAIC XXX Totals ,998, ,882, ,885, , ,049...XXX ,757, ,579, ,454, ,303, Hybrid Securities 7.1 NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX Totals XXX Parent, Subsidiaries and Affiliates 8.1 NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX NAIC XXX Totals XXX SVO Identified Funds 9.1 NAIC XXX......XXX......XXX......XXX......XXX XXX......XXX NAIC XXX......XXX......XXX......XXX......XXX XXX......XXX NAIC XXX......XXX......XXX......XXX......XXX XXX......XXX NAIC XXX......XXX......XXX......XXX......XXX XXX......XXX NAIC XXX......XXX......XXX......XXX......XXX XXX......XXX NAIC XXX......XXX......XXX......XXX......XXX XXX......XXX Totals......XXX......XXX......XXX......XXX......XXX XXX......XXX

8 SI07 Annual Statement for the year 2016 of the SCHEDULE D - PART 1A - SECTION 1 (continued) Quality and Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Types of Issues and NAIC Designations Year Over 1 Year Over 5 Years Over 10 Years Over 20 No Maturity Total Column 7 as a Total from Column % from Col. 7 Total Total NAIC Designation or Less Through 5 Years Through 10 Years Through 20 Years Years Current Year % of Line Prior Year Prior Year Publicly Traded Privately Placed (a) 10. Total Bonds Current Year 10.1 NAIC 1... (d)...8,298, ,416, ,851, ,233, ,318, ,117, xxx......xxx ,857, ,260, NAIC 2... (d)...554, ,201, ,424, , ,861, xxx......xxx ,690, ,170, NAIC 3... (d) , , xxx......xxx , NAIC 4... (d) xxx......xxx NAIC 5... (d) (c) xxx......xxx NAIC 6... (d) (c) xxx......xxx Totals ,853, ,618, ,367, ,914, ,318, (b)...62,071, xxx......xxx ,639, ,431, Line 10.7 as a % of Col XXX......XXX......XXX Total Bonds Prior Year 11.1 NAIC ,412, ,516, ,780, ,381, ,184,185...XXX......XXX......XXX ,275, ,463, ,811, NAIC , ,621, ,627, XXX......XXX......XXX ,349, ,995, , NAIC XXX......XXX......XXX NAIC XXX......XXX......XXX NAIC XXX......XXX......XXX... (c) NAIC XXX......XXX......XXX... (c) Totals ,512, ,138, ,407, ,381, ,184,185...XXX......XXX......XXX... (b)...57,624, ,459, ,164, Line 11.7 as a % of Col XXX......XXX......XXX XXX Total Publicly Traded Bonds 12.1 NAIC ,923, ,272, ,406, ,941, ,313, ,857, ,463, ,857,440...XXX NAIC , ,946, ,691, , ,690, ,995, ,690,452...XXX NAIC , , ,750...XXX NAIC XXX NAIC XXX NAIC XXX Totals ,478, ,218, ,190, ,438, ,313, ,639, ,459, ,639,642...XXX Line 12.7 as a % of Col XXX......XXX......XXX XXX Line 12.7 as a % of Line 10.7, Col. 7, Section XXX......XXX......XXX XXX Total Privately Placed Bonds 13.1 NAIC ,374, ,144, ,444, , , ,260, ,811, XXX ,260, NAIC , , , ,170, , XXX ,170, NAIC XXX NAIC XXX NAIC XXX NAIC XXX Totals ,374, ,399, ,176, , , ,431, ,164, XXX ,431, Line 13.7 as a % of Col XXX......XXX......XXX......XXX Line 13.7 as a % of Line 10.7, Col. 7, Section XXX......XXX......XXX......XXX (a) Includes $...10,431,464 freely tradable under SEC Rule 144 or qualified for resale under SEC Rule 144A. (b) Includes $...0 current year, $...0 prior year of bonds with Z designations and $...0 current year, $...0 prior year of bonds with Z* designations. The letter "Z" means the NAIC designation was not assigned by the Securities Valuation Office (SVO) at the date of the statement. "Z*" means the SVO could not evaluate the obligation because valuation procedures for the security class are under regulatory review. (c) Includes $...0 current year, $...0 prior year of bonds with 5* designations and $...0 current year, $...0 prior year of bonds with 6* designations. "5*" means the NAIC designation was assigned by the SVO in reliance on the insurer's certification that the issuer is current in all principal and interest payments. "6*" means the NAIC designation was assigned by the SVO due to inadequate certification of principal and interest payments. (d) Includes the following amount of short-term and cash equivalent bonds by NAIC designation: NAIC 1 $...633,923; NAIC 2 $...0; NAIC 3 $...0; NAIC 4 $...0; NAIC 5 $...0; NAIC 6 $...0.

9 SI08 Annual Statement for the year 2016 of the SCHEDULE D - PART 1A - SECTION 2 Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Type and Subtype of Issues Year Over 1 Year Over 5 Years Over 10 Years Over 20 No Maturity Total Column 7 as a Total from Column % from Col. 7 Total Total Distribution by Type or Less Through 5 Years Through 10 Years Through 20 Years Years Current Year % of Line Prior Year Prior Year Publicly Traded Privately Placed 1. U.S. Governments 1.1 Issuer Obligations ,133, ,011, , XXX ,730, ,805, ,730, Residential Mortgage-Backed Securities , , , , XXX , ,131, , , Commercial Mortgage-Backed Securities , , , , ,161,668...XXX ,342, ,342, Other Loan-Backed and Structured Securities XXX Totals ,477, ,616, ,159, , ,162,544...XXX ,021, ,936, ,893, , All Other Governments 2.1 Issuer Obligations XXX Residential Mortgage-Backed Securities XXX Commercial Mortgage-Backed Securities XXX Other Loan-Backed and Structured Securities XXX Totals XXX U.S. States, Territories and Possessions, Guaranteed 3.1 Issuer Obligations , , XXX ,160, ,428, ,160, Residential Mortgage-Backed Securities XXX Commercial Mortgage-Backed Securities XXX Other Loan-Backed and Structured Securities XXX Totals , , XXX ,160, ,428, ,160, U.S. Political Subdivisions of States, Territories and Possessions, Guaranteed 4.1 Issuer Obligations , , ,683, XXX ,913, ,738, ,913, Residential Mortgage-Backed Securities XXX Commercial Mortgage-Backed Securities XXX Other Loan-Backed and Structured Securities XXX Totals , , ,683, XXX ,913, ,738, ,913, U.S. Special Revenue & Special Assessment Obligations, etc., Non-Guaranteed 5.1 Issuer Obligations ,138, ,299, ,762, , XXX ,340, ,682, ,340, Residential Mortgage-Backed Securities ,871, ,206, ,011, ,183, ,576...XXX ,422, ,120, ,422, Commercial Mortgage-Backed Securities , XXX , , Other Loan-Backed and Structured Securities XXX , Totals ,010, ,505, ,227, ,323, ,576...XXX ,217, ,942, ,217, Industrial and Miscellaneous (unaffiliated) 6.1 Issuer Obligations ,104, ,819, ,667, , XXX ,272, ,670, ,819, ,453, Residential Mortgage-Backed Securities , ,077, , , ,049...XXX ,319, ,168, , ,183, Commercial Mortgage-Backed Securities , ,103, ,553, XXX ,703, ,050, ,568, ,134, Other Loan-Backed and Structured Securities ,219, ,882, , , XXX ,462, ,688, ,930, ,532, Totals ,998, ,882, ,885, , ,049...XXX ,757, ,579, ,454, ,303, Hybrid Securities 7.1 Issuer Obligations XXX Residential Mortgage-Backed Securities XXX Commercial Mortgage-Backed Securities XXX Other Loan-Backed and Structured Securities XXX Totals XXX Parent, Subsidiaries and Affiliates 8.1 Issuer Obligations XXX Residential Mortgage-Backed Securities XXX Commercial Mortgage-Backed Securities XXX Other Loan-Backed and Structured Securities XXX Totals XXX

10 SI09 Annual Statement for the year 2016 of the 9. SVO Identified Funds SCHEDULE D - PART 1A - SECTION 2 (continued) Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Type and Subtype of Issues Year Over 1 Year Over 5 Years Over 10 Years Over 20 No Maturity Total Column 7 as a Total from Column % from Col. 7 Total Total Distribution by Type or Less Through 5 Years Through 10 Years Through 20 Years Years Current Year % of Line Prior Year Prior Year Publicly Traded Privately Placed 9.1 Exchange Traded Funds Identified by the SVO......XXX......XXX......XXX......XXX......XXX XXX......XXX Bond Mutual Funds Identified by the SVO......XXX......XXX......XXX......XXX......XXX XXX......XXX Totals......XXX......XXX......XXX......XXX......XXX XXX......XXX Total Bonds Current Year 10.1 Issuer Obligations ,744, ,743, ,109, , XXX ,418, XXX......XXX ,965, ,453, Residential Mortgage-Backed Securities ,810, ,698, ,561, ,462, ,502...XXX ,690, XXX......XXX ,378, ,311, Commercial Mortgage-Backed Securities , ,293, ,407, , ,161,668...XXX ,500, XXX......XXX ,365, ,134, Other Loan-Backed and Structured Securities ,219, ,882, , , XXX ,462, XXX......XXX ,930, ,532, SVO Identified Funds......XXX......XXX......XXX......XXX......XXX XXX......XXX Totals ,853, ,618, ,367, ,914, ,318, ,071, XXX......XXX ,639, ,431, Line 10.6 as a % of Col XXX......XXX......XXX Total Bonds Prior Year 11.1 Issuer Obligations ,798, ,452, ,074, XXX......XXX......XXX ,325, ,173, ,151, Residential Mortgage-Backed Securities ,795, ,954, ,138, ,346, ,184,185...XXX......XXX......XXX ,419, ,262, ,156, Commercial Mortgage-Backed Securities , , ,111, XXX......XXX......XXX ,050, , ,061, Other Loan-Backed and Structured Securities , ,945, , , XXX......XXX......XXX ,828, ,034, , SVO Identified Funds......XXX......XXX......XXX......XXX......XXX......XXX......XXX......XXX......XXX......XXX......XXX......XXX Totals ,512, ,138, ,407, ,381, ,184,185...XXX......XXX......XXX ,624, ,459, ,164, Line 11.6 as a % of Col XXX......XXX......XXX XXX Total Publicly Traded Bonds 12.1 Issuer Obligations ,744, ,206, ,377, , XXX ,965, ,173, ,965,317...XXX Residential Mortgage-Backed Securities ,163, ,612, ,208, ,242, ,565...XXX ,378, ,262, ,378,646...XXX Commercial Mortgage-Backed Securities , , ,361, , ,161,668...XXX ,365, , ,365,486...XXX Other Loan-Backed and Structured Securities ,537, ,148, , XXX ,930, ,034, ,930,192...XXX SVO Identified Funds......XXX......XXX......XXX......XXX......XXX XXX......XXX XXX Totals ,478, ,218, ,190, ,438, ,313, ,639, ,459, ,639,642...XXX Line 12.6 as a % of Col XXX......XXX......XXX XXX Line 12.6 as a % of Line 10.6, Col. 7, Section XXX......XXX......XXX XXX Total Privately Placed Bonds 13.1 Issuer Obligations ,537, , , XXX ,453, ,151, XXX ,453, Residential Mortgage-Backed Securities , ,085, , , ,937...XXX ,311, ,156, XXX ,311, Commercial Mortgage-Backed Securities , ,042, ,046, XXX ,134, ,061, XXX ,134, Other Loan-Backed and Structured Securities , , , , XXX ,532, , XXX ,532, SVO Identified Funds......XXX......XXX......XXX......XXX......XXX XXX......XXX......XXX Totals ,374, ,399, ,176, , , ,431, ,164, XXX ,431, Line 13.6 as a % of Col XXX......XXX......XXX......XXX Line 13.6 as a % of Line 10.6, Col. 7, Section XXX......XXX......XXX......XXX

11 SCHEDULE DA - VERIFICATION BETWEEN YEARS Short-Term Investments Other Short-term Investments in Mortgage Investment Parent, Subsidiaries Total Bonds Loans Assets (a) and Affiliates 1. Book/adjusted carrying value, December 31 of prior year , , Cost of short-term investments acquired ,656, ,656, Accrual of discount Unrealized valuation increase (decrease) Total gain (loss) on disposals Deduct consideration received on disposals ,296, ,296, Deduct amortization of premium SI10 8. Total foreign exchange change in book/adjusted carrying value Deduct current year's other-than-temporary impairment recognized Book/adjusted carrying value at end of current period (Lines ) , , Deduct total nonadmitted amounts Statement value at end of current period (Line 10 minus Line 11) , , (a) Indicate the category of such assets, for example, joint ventures, transportation equipment:...

12 Sch. DB - Pt. A - Verification Sch. DB - Pt. B - Verification Sch. DB - Pt. C - Sn. 1 Sch. DB - Pt. C - Sn. 2 Sch. DB - Verification SI11, SI12, SI13, SI14

13 SCHEDULE E - VERIFICATION BETWEEN YEARS Cash Equivalents Total Bonds Other (a) 1. Book/adjusted carrying value, December 31 of prior year ,499, ,499, Cost of cash equivalents acquired Accrual of discount Unrealized valuation increase (decrease) Total gain (loss) on disposals......(14)...(14) Deduct consideration received on disposals ,499, ,499, Deduct amortization of premium Total foreign exchange change in book/adjusted carrying value Deduct current year's other-than-temporary impairment recognized Book/adjusted carrying value at end of current period (Lines ) Deduct total nonadmitted amounts Statement value at end of current period (Line 10 minus Line 11) (a) Indicate the category of such investments, for example, joint ventures, transportation equipment:... SI15

14 Sch. A - Pt. 1 Sch. A - Pt. 2 Sch. A - Pt. 3 Sch. B - Pt. 1 Sch. B - Pt. 2 Sch. B - Pt. 3 Sch. BA - Pt. 1 Sch. BA - Pt. 2 Sch. BA - Pt. 3 E01, E02, E03, E04, E05, E06, E07, E08, E09

15 E10 Annual Statement for the year 2016 of the SCHEDULE D - PART 1 Showing all Long-Term BONDS Owned December 31 of Current Year 1 2 Codes 6 7 Fair Value Change in Book/Adjusted Carrying Value Interest s CUSIP Identification Description Code U.S. Government - Issuer Obligations F o Current Year's r Unrealized Other-Than- Total Foreign ei NAIC Rate Used Valuation Current Year's Temporary Exchange Admitted g Bond Designation to Obtain Book/Adjusted Increase (Amortization) / Impairment Change in Effective When Amount Due & Amount Rec. n CHAR Actual Cost Fair Value Fair Value Par Value Carrying Value (Decrease) Accretion Recognized B./A.C.V. Rate of Rate of Paid Accrued During Year Acquired A4 2 UNITED STATES TREASURY , , , , (1,667) MN ,000 02/12/ /30/ B9 0 UNITED STATES TREASURY , , , , (757) FA , ,000 12/30/ /28/ HH 6 UNITED STATES TREASURY... SD , , , , MN , ,250 04/29/ /15/ LY 4 UNITED STATES TREASURY... SD , , , , (5,640) MN , ,500 04/09/ /15/ MP 2 UNITED STATES TREASURY... SD , , , , (6,688) FA , ,406 04/09/ /15/ ND 8 UNITED STATES TREASURY... SD , , , , (6,861) MN , ,500 04/09/ /15/ NT 3 UNITED STATES TREASURY... SD , , , , (3,228) FA , ,875 02/19/ /15/ PC 8 UNITED STATES TREASURY... SD , , , , (1,242) MN ,563 05/02/ /15/ PT 1 UNITED STATES TREASURY... SD , , , , (1,844) JJ , ,625 01/23/ /31/ QN 3 UNITED STATES TREASURY... SD , , , , (3,713) MN , ,844 04/14/ /15/ SN 1 UNITED STATES TREASURY... SD , , , , (1,011) MS , ,500 02/19/ /31/ UB 4 UNITED STATES TREASURY... SD , , , , , MN ,700 09/22/ /30/ VB 3 UNITED STATES TREASURY , , , , , MN , ,500 12/29/ /15/ U.S. Government - Issuer Obligations ,180,718 XXX...5,135, ,005, ,096, (28,514) XXX XXX XXX...27, ,263 XXX XXX U.S. Government - Residential Mortgage-Backed Securities 30254R AA 8 FDIC 13R2 A - CMO/RMBS... $ , , , , MON ,657 08/15/ /25/ N MP 0 G2 MA RMBS , , , , (386) MON ,465 10/11/ /20/ E UL 1 G RMBS , , , , MON ,014 04/29/ /20/ E Y8 6 G RMBS , , , , MON /29/ /20/ E YF 0 G RMBS , , , , MON ,193 04/29/ /20/ F 3J 3 G RMBS , , , , (389) MON ,678 09/13/ /20/ F AN 6 G RMBS , , , , MON ,868 04/29/ /20/ F BA 3 G RMBS , , , , MON ,704 04/29/ /20/ F M4 5 G RMBS , , , , (1) MON ,795 04/29/ /20/ F 2G 5 GNR 1073A TV - CMO/RMBS , , , , (861) MON ,385 12/28/ /20/ U.S. Government - Residential Mortgage-Backed Securities ,012 XXX...953, , , (1,264) XXX XXX XXX...2, ,670 XXX XXX U.S. Government - Commercial Mortgage-Backed Securities 38376G 5M 8 GNR C - CMBS , , , , (278) MON , ,500 12/27/ /16/ G TE 0 GNR C - CMBS , , , , (184) MON ,067 08/10/ /16/ G W4 8 GNR 1186A C - CMBS , , , , (1,289) MON , ,607 12/08/ /16/ B E2 1 GNR A - CMBS , , , , (91) MON ,425 09/14/ /16/ K Q2 8 GNR B - CMBS ,006, ,004, ,000, ,005, (792) MON , ,000 07/29/ /16/ U.S. Government - Commercial Mortgage-Backed Securities ,349,445 XXX...2,334, ,311, ,342, (2,635) XXX XXX XXX...6, ,598 XXX XXX Total - U.S. Government ,483,175 XXX...8,422, ,241, ,387, (32,413) XXX XXX XXX...36, ,531 XXX XXX U.S. States, Territories & Possessions (Direct and Guaranteed) - Issuer Obligations 56052A YB 6 MAINE ST... SD FE...429, , , , (7,423) JD , ,500 06/24/ /01/ P Q8 6 MASSACHUSETTS ST... SD FE...230, , , , (3,843) FA , ,000 07/31/ /01/ SL 4 TEXAS ST FE...204, , , , (4,967) AO , ,500 12/04/ /01/ L M4 6 WISCONSIN ST FE...173, , , , (2,666) MN , ,500 09/13/ /01/ L Q3 4 WISCONSIN ST FE...184, , , , (3,814) MN , ,500 05/09/ /01/ U.S. States, Territories & Possessions - Issuer Obligations ,222,605 XXX...1,180, ,020, ,160, (22,713) XXX XXX XXX...10, ,000 XXX XXX Total - U.S. States, Territories & Possessions (Direct and Guaranteed) ,222,605 XXX...1,180, ,020, ,160, (22,713) XXX XXX XXX...10, ,000 XXX XXX Stated Contractual Maturity

16 E10.1 Annual Statement for the year 2016 of the SCHEDULE D - PART 1 Showing all Long-Term BONDS Owned December 31 of Current Year 1 2 Codes 6 7 Fair Value Change in Book/Adjusted Carrying Value Interest s CUSIP Identification Description Code U.S. Political Subdivisions of States, Territories & Possessions (Direct and Guaranteed) - Issuer Obligations F o Current Year's r Unrealized Other-Than- Total Foreign ei NAIC Rate Used Valuation Current Year's Temporary Exchange Admitted g Bond Designation to Obtain Book/Adjusted Increase (Amortization) / Impairment Change in Effective When Amount Due & Amount Rec. n CHAR Actual Cost Fair Value Fair Value Par Value Carrying Value (Decrease) Accretion Recognized B./A.C.V. Rate of Rate of Paid Accrued During Year Acquired F 9 ALBUQUERQUE N MEX FE...360, , , , (8,171) JJ , ,875 05/05/ /01/ XQ 4 ALVIN TEX INDPT SCH DIST FE...422, , , , (9,645) FA , ,500 12/03/ /15/ R 2 BELLEVUE WASH... SD FE...309, , , , (4,215) JD , ,073 03/31/ /01/ R 2 BELLEVUE WASH FE...309, , , , (8,751) JD , ,719 03/31/ /01/ EV 8 CHARLOTTE N C... SD FE...157, , , , (2,785) JJ , ,750 08/23/ /01/ C QY 3 FRISCO TEX INDPT SCH DIST FE...478, , , , (8,921) FA , ,000 05/21/ /15/ AH 3 GALENA PARK TEX INDPT SCH DIST... SD FE...61, , , , (2,234) (3.092) FA ,238 04/29/ /15/ CG 3 GALENA PARK TEX INDPT SCH DIST... SD FE...89, , , , (938) (3.100) FA , /29/ /15/ CT 5 GALENA PARK TEX INDPT SCH DIST... SD FE...241, , , , (2,521) (3.100) FA , /29/ /15/ D7 8 GOOSE CREEK TEX CONS INDPT SCH DIST FE...236, , , , (3,571) FA , ,000 07/02/ /15/ RE 9 HUNTSVILLE ALA... SD FE...309, , , , (5,517) FA , ,500 08/15/ /01/ SD 9 KING CNTY WASH SCH DIST NO 400 MERCER IS FE...590, , , , (13,426) JD , ,972 06/04/ /01/ QP 9 LANE CNTY ORE SCH DIST NO 4 J EUGENE FE...367, , , , (7,282) JD ,000 09/05/ /15/ G 2 LOUDOUN CNTY VA FE...162, , , , (3,913) JD ,250 07/23/ /01/ U.S. Political Subdivisions of States, Territories & Possessions - Issuer Obligations ,095,943 XXX...3,923, ,410, ,913, (81,892) XXX XXX XXX...45, ,876 XXX XXX Total - U.S. Political Subdivisions of States, Territories & Possessions ,095,943 XXX...3,923, ,410, ,913, (81,892) XXX XXX XXX...45, ,876 XXX XXX U.S. Special Revenue & Special Assessment Obligations and all Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their U.S. Political Subdivisions - Issuer Obligations WH 4 ARIZONA ST TRANSN BRD HWY REV... SD FE...495, , , , (10,922) JJ , ,000 03/27/ /01/ G DL 0 FEDERAL FARM CREDIT BANKS , , , , (21,891) AO , ,500 04/29/ /22/ Q MY 0 FEDERAL FARM CREDIT BANKS... SD , , , , (4,016) JJ , ,950 04/29/ /20/ XL F8 1 FEDERAL HOME LOAN BANKS... SD , , , , (16,385) JD , ,656 01/10/ /09/ EA DB 2 FEDERAL HOME LOAN MORTGAGE CORP... SD FE...333, , , , , JJ , ,313 09/06/ /13/ S3 2 INDIANA BD BK REV FE...200, , , , (167) FA , ,404 07/26/ /01/ R AK 6 LOUISIANA LOC GOVT ENVIRONMENTAL FACS & FE...139, , , , FA , ,536 07/29/ /01/ MW 8 MASSACHUSETTS BAY TRANSN AUTH MASS REV... SD FE...185, , , , (3,881) JJ , ,500 06/08/ /01/ E S9 9 NEW YORK ST DORM AUTH ST PERS INCOME TAX... SD FE...511, , , , (11,312) FA , ,750 09/11/ /15/ Q AG 9 NORTH CAROLINA ST LTD OBLIG FE...186, , , , (4,318) MN , ,500 05/29/ /01/ D RP 2 OREGON ST DEPT TRANSN HWY USER TAX REV... SD FE...374, , , , (6,524) MN , ,000 09/02/ /15/ VW 2 ST CHARLES MO... SD FE...111, , , , (212) MS ,650 04/29/ /01/ J 0 SAN ANTONIO TEX ELEC & GAS REV FE...372, , , , (7,256) FA , ,750 09/19/ /01/ W9 1 TEXAS A & M UNIV PERM UNIV FD... SD FE...124, , , , (2,720) JJ , ,000 06/27/ /01/ J7 4 WISCONSIN ST TRANSN REV... SD FE...240, , , , (5,053) JJ , ,000 11/07/ /01/ U.S. Special Revenue & Assessment Obligations - Issuer Obligations ,653,529 XXX...4,375, ,030, ,340, (92,701) XXX XXX XXX...62, ,509 XXX XXX U.S. Special Revenue & Special Assessment Obligations and all Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their U.S. Political Subdivisions - Residential Mortgage-Backed Securities 31281B KG 4 FH N RMBS , , , , (12) MON /29/ /01/ K0 NE 9 FH A RMBS , , , , (2) MON /29/ /01/ M1 B9 9 FH G RMBS , , , , MON ,343 04/29/ /01/ M1 Q8 5 FH G RMBS , , , , (4) MON ,013 04/29/ /01/ M1 TK 5 FH G RMBS , , , , MON ,138 03/30/ /01/ M5 4E 7 FH G RMBS , , , , (26) MON ,639 01/24/ /01/ M7 3L 8 FH G RMBS , , , , (118) MON ,287 01/04/ /01/ M7 YV 2 FH G RMBS , , , , (78) MON ,466 02/25/ /01/2040. Stated Contractual Maturity