* * PROPERTY AND CASUALTY COMPANIES ASSOCIATION EDITION

Transcription

1 * * PROPERTY AND CASUALTY COMPANIES ASSOCIATION EDITION ANNUAL STATEMENT For the Year Ended December, 04 OF THE CONDITION AND AFFAIRS OF THE Seaton Insurance Company NAIC Group Code 475, 475 NAIC Company Code 576 Employer s ID Number (Current Period) (Prior Period) Organized under the Laws of Rhode Island, State of Domicile or Port of Entry Rhode Island Country of Domicile United States Incorporated/Organized 04/0/90 Commenced Business 04/0/90 Statutory Home Office 475 Kilvert Street, Suite 0, Warwick, RI, US 0886 (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 475 Kilvert Street, Suite 0 Warwick, RI, US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address 475 Kilvert Street, Suite 0, Warwick, RI, US 0886 (Street and Number or P.O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records 475 Kilvert Street, Suite 0 Warwick, RI, US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Web Site Address N/A Statutory Statement Contact Teresa M. Reali (Name) (Area Code) (Telephone Number) (Extension) teresa.reali@enstargroup.com ( Address) (Fax Number) OFFICERS Name Title Name Title Paul Brockman #, President Teresa Marie Reali, Treasurer and COO Thomas John Balkan, Secretary, OTHER OFFICERS Joseph Patrick Follis, Vice President Thomas James Nichols, CFO Nadja Stavenhagen, Assistant Secretary, DIRECTORS OR TRUSTEES Joseph Patrick Follis Andrea Jill Giannetta Paul Brockman # Thomas James Nichols Teresa Marie Reali Robert Redpath # State of County of Rhode Island Kent ss The officers of this reporting entity, being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: () state law may differ; or, () that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement. Paul Brockman Teresa Marie Reali Thomas John Balkan President Treasurer and COO Secretary a. Is this an original filing? Yes [ X ] No [ ] Subscribed and sworn to before me b. If no: this 6th day of February, 05. State the amendment number. Date filed 0/8/05. Number of pages attached Stacey L. Nolan, Notary Public June 8, 07

2 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company ASSETS Current Year Prior Year 4 Assets Nonadmitted Assets Net Admitted Assets (Cols. - ) Net Admitted Assets. Bonds (Schedule D) 7,58,584 7,58,584 5,9,4. Stocks (Schedule D):. Preferred stocks Common stocks Mortgage loans on real estate (Schedule B):. First liens 0 0. Other than first liens Real estate (Schedule A): 4. Properties occupied by the company (less $ encumbrances) Properties held for the production of income (less $ encumbrances) Properties held for sale (less $ encumbrances) Cash ($ 0,66,764, Schedule E-Part ), cash equivalents ($ 0, Schedule E-Part ) and short-term investments ($,04,096, Schedule DA),658,860,658,860 9,486, Contract loans (including $ premium notes) Derivatives (Schedule DB) Other invested assets (Schedule BA) Receivables for securities 0 47,08 0. Securities lending reinvested collateral assets (Schedule DL) 0 0. Aggregate write-ins for invested assets Subtotals, cash and invested assets (Lines to ) 50,87, ,87,444 55,756,9. Title plants less $ charged off (for Title insurers only) Investment income due and accrued 4,500 4,500 55,5 5. Premiums and considerations: 5. Uncollected premiums and agents balances in the course of collection Deferred premiums, agents balances and installments booked but deferred and not yet due (including $ earned but unbilled premiums) Accrued retrospective premiums Reinsurance: 6. Amounts recoverable from reinsurers 5,86,68 5,86,68 5,480, Funds held by or deposited with reinsured companies 78,955 78,955 97, Other amounts receivable under reinsurance contracts 0 8,00, Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon Net deferred tax asset Guaranty funds receivable or on deposit Electronic data processing equipment and software 0 0. Furniture and equipment, including health care delivery assets ($ ) 0 0. Net adjustment in assets and liabilities due to foreign exchange rates 0 0. Receivables from parent, subsidiaries and affiliates 6,75,8 6,75, Health care ($ ) and other amounts receivable Aggregate write-ins for other-than-invested assets Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines to 5) 6,59,70 0 6,59,70 79,690,55 7. From Separate Accounts, Segregated Accounts and Protected Cell Accounts Total (Lines 6 and 7) 6,59,70 0 6,59,70 79,690,55 DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page Totals (Lines 0 through 0 plus 98) (Line above) Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above)

3 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company LIABILITIES, SURPLUS AND OTHER FUNDS Current Year Prior Year. Losses (Part A, Line 5, Column 8) 4,958,6 47,79,0. Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part, Column 6) 4,805,485 8,79,779. Loss adjustment expenses (Part A, Line 5, Column 9) 0,555,0 4,949,4 4. Commissions payable, contingent commissions and other similar charges 0 5. Other expenses (excluding taxes, licenses and fees) 49,55,80 6. Taxes, licenses and fees (excluding federal and foreign income taxes) 0 7. Current federal and foreign income taxes (including $ on realized capital gains (losses)) 7, Net deferred tax liability 0 8. Borrowed money $ and interest thereon $ 0 9. Unearned premiums (Part A, Line 8, Column 5) (after deducting unearned premiums for ceded reinsurance of $ and including warranty reserves of $ and accrued accident and health experience rating refunds including $ for medical loss ratio rebate per the Public Health Service Act) Advance premium 0. Dividends declared and unpaid:. Stockholders 0. Policyholders 0. Ceded reinsurance premiums payable (net of ceding commissions) 0. Funds held by company under reinsurance treaties (Schedule F, Part, Column 9) 5,557 05,59 4. Amounts withheld or retained by company for account of others 0 5. Remittances and items not allocated 0 6. Provision for reinsurance (including $ certified) (Schedule F, Part 8),90,58,7, Net adjustments in assets and liabilities due to foreign exchange rates 0 8. Drafts outstanding 0 9. Payable to parent, subsidiaries and affiliates 64,08 676,07 0. Derivatives 0. Payable for securities 0. Payable for securities lending 0. Liability for amounts held under uninsured plans 0 4. Capital notes $ and interest thereon $ 0 5. Aggregate write-ins for liabilities 0 (4,,70) 6. Total liabilities excluding protected cell liabilities (Lines through 5) 4,65,7 7,55,50 7. Protected cell liabilities 0 8. Total liabilities (Lines 6 and 7) 4,65,7 7,55,50 9. Aggregate write-ins for special surplus funds Common capital stock,600,000,600,000. Preferred capital stock 0. Aggregate write-ins for other than special surplus funds 0 0. Surplus notes 0 4. Gross paid in and contributed surplus 5,400,000 5,400, Unassigned funds (surplus) 6. Less treasury stock, at cost: (5,85,560) (46,86,977) 6. shares common (value included in Line 0 $ ) 0 6. shares preferred (value included in Line $ ) 0 7. Surplus as regards policyholders (Lines 9 to 5, less 6) (Page 4, Line 9) 9,64,440 8,7,0 8. Totals (Page, Line 8, Col. ) 6,59,7 79,690,55 DETAILS OF WRITE-INS 50. Retro Reinsurance Recoverable (4,,70) Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above) 0 (4,,70) Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 90 through 90 plus 998) (Line 9 above) Summary of remaining write-ins for Line from overflow page Totals (Lines 0 through 0 plus 98) (Line above) 0 0

4 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company STATEMENT OF INCOME Current Year Prior Year UNDERWRITING INCOME. Premiums earned (Part, Line 5, Column 4) 6,446,46 DEDUCTIONS:. Losses incurred (Part, Line 5, Column 7) (,54,) (,04,6). Loss adjustment expenses incurred (Part, Line 5, Column ) (09,079),97,00 4. Other underwriting expenses incurred (Part, Line 5, Column ) 57,5 70, Aggregate write-ins for underwriting deductions Total underwriting deductions (Lines through 5) (,60,768),65,68 7. Net income of protected cells 0 8. Net underwriting gain (loss) (Line minus Line 6 plus Line 7),87,4 (,6,55) INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line 7) 4, ,77 0. Net realized capital gains (losses) less capital gains tax of $ (Exhibit of Capital Gains (Losses)) 9,4 9,40. Net investment gain (loss) (Lines 9 + 0) 4,6 54,797 OTHER INCOME. Net gain (loss) from agents' or premium balances charged off (amount recovered $ amount charged off $ ) 0. Finance and service charges not included in premiums 0 4. Aggregate write-ins for miscellaneous income (4,05,580) 74,7 5. Total other income (Lines through 4) (4,05,580) 74,7 6. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines ) 9,4,960 (5,4) 7. Dividends to policyholders 0 8. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 6 minus Line 7) 9,4,960 (5,4) 9. Federal and foreign income taxes incurred 7, Net income (Line 8 minus Line 9) (to Line ) 9,95,4 (5,4) CAPITAL AND SURPLUS ACCOUNT. Surplus as regards policyholders, December prior year (Page 4, Line 9, Column ) 8,7,08 8,46,05. Net income (from Line 0) 9,95,4 (5,4). Net transfers (to) from Protected Cell accounts 0 4. Change in net unrealized capital gains or (losses) less capital gains tax of $ 0 5. Change in net unrealized foreign exchange capital gain (loss) 0 6. Change in net deferred income tax 0 7. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 8, Col. ) Change in provision for reinsurance (Page, Line 6, Column minus Column ),8,76 6,44 9. Change in surplus notes 0 0. Surplus (contributed to) withdrawn from protected cells 0. Cumulative effect of changes in accounting principles 0. Capital changes:. Paid in 0. Transferred from surplus (Stock Dividend) 0. Transferred to surplus 0. Surplus adjustments:. Paid in 0. Transferred to capital (Stock Dividend) 0. Transferred from capital 0 4. Net remittances from or (to) Home Office 0 5. Dividends to stockholders 0 6. Change in treasury stock (Page, Lines 6. and 6., Column minus Column ) Aggregate write-ins for gains and losses in surplus Change in surplus as regards policyholders for the year (Lines through 7),07,47 (08,997) 9. Surplus as regards policyholders, December current year (Line plus Line 8) (Page, Line 7) 9,64,45 8,7,08 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 050 through 050 plus 0598) (Line 5 above) Misc Income or Expense 8,40, Reinsurance Unpaid Paid writeoff 45, Fitzwilliam treaty-cession (4,,70) 686, Summary of remaining write-ins for Line 4 from overflow page 0 686, Totals (Lines 40 through 40 plus 498) (Line 4 above) (4,05,580) 74,7 70. Prior Period Adjustment-claim service fees Prior Period Adjustment - NICO treaty adj Summary of remaining write-ins for Line 7 from overflow page Totals (Lines 70 through 70 plus 798) (Line 7 above) 0 0 4

5 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company CASH FLOW Current Year Prior Year Cash from Operations. Premiums collected net of reinsurance 6,446,46. Net investment income 58,878 57,079. Miscellaneous income (5,987,057) 8,95,74 4. Total (Lines through ) (5,77,7) 9,50,48 5. Benefit and loss related payments,688,78 5,858,76 6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts Commissions, expenses paid and aggregate write-ins for deductions 4,740,09 5,5,56 8. Dividends paid to policyholders Federal and foreign income taxes paid (recovered) net of $ tax on capital gains (losses) Total (Lines 5 through 9) 7,48,8,074,98. Net cash from operations (Line 4 minus Line 0) (,806,554) 8,45,950 Cash from Investments. Proceeds from investments sold, matured or repaid:. Bonds 8,07,75 9,880,. Stocks 4,46 0. Mortgage loans Real estate Other invested assets Net gains or (losses) on cash, cash equivalents and short-term investments Miscellaneous proceeds 47, Total investment proceeds (Lines. to.7) 8,559,6 9,880,744. Cost of investments acquired (long-term only):. Bonds 9,950,79 0,558,95. Stocks 4,46 0. Mortgage loans Real estate Other invested assets Miscellaneous applications 80 47,08.7 Total investments acquired (Lines. to.6) 9,955,65 0,905,95 4. Net increase (decrease) in contract loans and premium notes Net cash from investments (Line.8 minus Line.7 minus Line 4) (,96,04) (,05,09) Cash from Financing and Miscellaneous Sources 6. Cash provided (applied): 6. Surplus notes, capital notes Capital and paid in surplus, less treasury stock Borrowed funds Net deposits on deposit-type contracts and other insurance liabilities Dividends to stockholders Other cash provided (applied) 7,74,870 (65,79) 7. Net cash from financing and miscellaneous sources (Lines 6. to 6.4 minus Line 6.5 plus Line 6.6) 7,74,870 (65,79) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8. Net change in cash, cash equivalents and short-term investments (Line, plus Lines 5 and 7) (6,87,708) 6,784, Cash, cash equivalents and short-term investments: 9. Beginning of year 9,486,564,70,65 9. End of year (Line 8 plus Line 9.),658,856 9,486,564 5

6 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT Line of Business PART - PREMIUMS EARNED Net Premiums Written per Column 6, Part B Unearned Premiums Dec. Prior Year - per Col., Last Year s Part Unearned Premiums Dec. Current Year - per Col. 5 Part A 4 Premiums Earned During Year (Cols. + - ). Fire Allied lines Farmowners multiple peril Homeowners multiple peril Commercial multiple peril Mortgage guaranty Ocean marine Inland marine Financial guaranty Medical professional liability-occurrence Medical professional liability-claims-made Earthquake Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation Other liability-occurrence Other liability-claims-made Excess workers compensation Products liability-occurrence Products liability-claims-made ,9. Private passenger auto liability ,9.4 Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty Reinsurance-nonproportional assumed property Reinsurance-nonproportional assumed liability 6, ,446. Reinsurance-nonproportional assumed financial lines Aggregate write-ins for other lines of business TOTALS 6, ,446 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above)

7 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company Line of Business UNDERWRITING AND INVESTMENT EXHIBIT PART A - RECAPITULATION OF ALL PREMIUMS Amount Unearned (Running One Year or Less from Date of Policy) (a) Amount Unearned (Running More Than One Year from Date of Policy) (a) Earned but Unbilled Premium 4 Reserve for Rate Credits and Retrospective Adjustments Based on Experience 5 Total Reserve for Unearned Premiums Cols Fire 0. Allied lines 0. Farmowners multiple peril 0 4. Homeowners multiple peril 0 5. Commercial multiple peril 0 6. Mortgage guaranty 0 8. Ocean marine 0 9. Inland marine 0 0. Financial guaranty 0. Medical professional liability-occurrence 0. Medical professional liability-claims-made 0. Earthquake 0. Group accident and health 0 4. Credit accident and health (group and individual) 0 5. Other accident and health 0 6. Workers' compensation 0 7. Other liability-occurrence 0 7. Other liability-claims-made 0 7. Excess workers compensation 0 8. Products liability-occurrence 0 8. Products liability-claims-made 0 9.,9.Private passenger auto liability 0 9.,9.4Commercial auto liability 0. Auto physical damage 0. Aircraft (all perils) 0. Fidelity 0 4. Surety 0 6. Burglary and theft 0 7. Boiler and machinery 0 8. Credit 0 9. International 0 0. Warranty 0. Reinsurance-nonproportional assumed property 0. Reinsurance-nonproportional assumed liability 0. Reinsurance-nonproportional assumed financial lines 0 4. Aggregate write-ins for other lines of business TOTALS Accrued retrospective premiums based on experience 7. Earned but unbilled premiums 8. Balance (Sum of Lines 5 through 7) 0 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) (a) State here basis of computation used in each case. 7

8 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART B - PREMIUMS WRITTEN Line of Business Reinsurance Assumed Reinsurance Ceded From From To To Affiliates Non-Affiliates Affiliates Non-Affiliates Direct Business (a) Net Premiums Written Cols Fire 0. Allied lines 0. Farmowners multiple peril 0 4. Homeowners multiple peril 0 5. Commercial multiple peril 0 6. Mortgage guaranty 0 8. Ocean marine 0 9. Inland marine 0 0. Financial guaranty 0. Medical professional liability-occurrence 0. Medical professional liability-claims-made 0. Earthquake 0. Group accident and health 0 4. Credit accident and health (group and individual) 0 5. Other accident and health 0 6. Workers' compensation 0 7. Other liability-occurrence 0 7. Other liability-claims-made 0 7. Excess workers compensation 0 8. Products liability-occurrence 0 8. Products liability-claimsmade 0 9.,9. Private passenger auto liability 0 9.,9.4 Commercial auto liability 0. Auto physical damage 0. Aircraft (all perils) 0. Fidelity 0 4. Surety 0 6. Burglary and theft 0 7. Boiler and machinery 0 8. Credit 0 9. International 0 0. Warranty 0. Reinsurancenonproportional assumed property XXX 0. Reinsurancenonproportional assumed liability XXX 6,446 6,446. Reinsurancenonproportional assumed financial lines XXX 0 4. Aggregate write-ins for other lines of business TOTALS 0 0 6, ,446 DETAILS OF WRITE-INS Sum. of remaining writeins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) (a) Does the company s direct premiums written include premiums recorded on an installment basis? Yes [ ] No [ X ] If yes:. The amount of such installment premiums $. Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $ 8

9 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company 9 UNDERWRITING AND INVESTMENT EXHIBIT PART - LOSSES PAID AND INCURRED Losses Paid Less Salvage Net Losses Unpaid Net Losses Losses Incurred Reinsurance Net Payments Current Year Unpaid Current Year Recovered (Cols. + - ) (Part A, Col. 8) Prior Year (Cols ) Percentage of Losses Incurred (Col. 7, Part ) to Premiums Earned (Col. 4, Part ) Reinsurance Line of Business Direct Business Assumed. Fire Allied lines Farmowners multiple peril (59) (59) Homeowners multiple peril (,90) (,90) Commercial multiple peril 476,56 476, Mortgage guaranty Ocean marine Inland marine Financial guaranty Medical professional liability-occurrence Medical professional liability-claims-made Earthquake Group accident and health Credit accident and health (group and individual) Other accident and health Workers' compensation 606, , Other liability-occurrence,55, ,8,746,850 5,5,86 0,784, (,685,5) Other liability-claims-made Excess workers compensation Products liability-occurrence 96,56 96, Products liability-claims-made ,9. Private passenger auto liability ,9.4 Commercial auto liability Auto physical damage (65) (65) Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty Reinsurance-nonproportional assumed property XXX Reinsurance-nonproportional assumed liability XXX (,6,078),589,046 (,950,5) 9,606,0 6,494,878 (0,88,70) (6,60.4). Reinsurance-nonproportional assumed financial lines XXX Aggregate write-ins for other lines of business TOTALS 5,08,497 (,60,49) 4,87,79 (,0,75) 4,958,6 47,79,0 (,54,) (6,765.) DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through ) (Line 4 above)

10 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported Net Losses Excl. Incurred But Not Reported (Cols. + - ) Net Losses Unpaid (Cols ) Net Unpaid Loss Adjustment Expenses Reinsurance Deduct Reinsurance Reinsurance Reinsurance Line of Business Direct Assumed Recoverable Direct Assumed Ceded. Fire 0 0. Allied lines 0 0. Farmowners multiple peril Homeowners multiple peril Commercial multiple peril 597,9 597,9 0 9,08,056 9,08, Mortgage guaranty Ocean marine Inland marine Financial guaranty 0 0. Medical professional liability-occurrence 0 0. Medical professional liability-claims-made 0 0. Earthquake 0 0. Group accident and health 0 (a) 0 4. Credit accident and health (group and individual) Other accident and health 0 (a) 0 6. Workers' compensation 5,404,88 5,404, ,8 60, Other liability-occurrence 7,66,78,60 4,959,5,680,86 9,0,804 6,6,804 5,5,86,086,50 7. Other liability-claims-made Excess workers compensation Products liability-occurrence,48,,48, 0 74,476 74, Products liability-claims-made ,9. Private passenger auto liability ,9.4 Commercial auto liability 0 0. Auto physical damage 0 0. Aircraft (all perils) 0 0. Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty 0 0. Reinsurance-nonproportional assumed property XXX 0 XXX 0. Reinsurance-nonproportional assumed liability XXX 5,46,65 476,5 4,987,0 XXX 5,4, ,000 9,606,0 8,468,5. Reinsurance-nonproportional assumed financial lines XXX 0 XXX 0 4. Aggregate write-ins for other lines of business TOTALS 5,066,58 5,477,8,875,69 7,668,6 8,576,79 5,4,000 6,400,79 4,958,6 0,555,0 DETAILS OF WRITE-INS Sum. of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through ) (Line 4 above) (a) Including $ for present value of life indemnity claims.

11 . Claim adjustment services: ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company UNDERWRITING AND INVESTMENT EXHIBIT PART - EXPENSES Loss Adjustment Expenses Other Underwriting Expenses Investment Expenses. Direct,4,687,4,687. Reinsurance assumed (4,76) (4,76). Reinsurance ceded,0,040,0,040.4 Net claim adjustment services ( ) (09,079) 0 0 (09,079). Commission and brokerage:. Direct, excluding contingent 0. Reinsurance assumed, excluding contingent 0. Reinsurance ceded, excluding contingent 0.4 Contingent-direct 0.5 Contingent-reinsurance assumed 0.6 Contingent-reinsurance ceded 0.7 Policy and membership fees 0.8 Net commission and brokerage ( ) Allowances to manager and agents 0 4. Advertising 0 5. Boards, bureaus and associations,545, Surveys and underwriting reports 0 7. Audit of assureds' records 0 8. Salary and related items: 8. Salaries 0 8. Payroll taxes 0 9. Employee relations and welfare 0 0. Insurance 0. Directors' fees 0. Travel and travel items,98,98. Rent and rent items 0 4. Equipment 0 5. Cost or depreciation of EDP equipment and software 0 6. Printing and stationery 0 7. Postage, telephone and telegraph, exchange and express 0 8. Legal and auditing 80,709 80, Totals (Lines to 8) 0 04,5 0 04,5 0. Taxes, licenses and fees: 0. State and local insurance taxes deducting guaranty association credits of $ Insurance department licenses and fees 7,56 7,56 0. Gross guaranty association assessments (,80) (,80) 0.4 All other (excluding federal and foreign income and real estate) Total taxes, licenses and fees ( ) 0 6, ,704. Real estate expenses 0. Real estate taxes 0. Reimbursements by uninsured plans 0 4. Aggregate write-ins for miscellaneous expenses 0 4,585 64,48 05,8 5. Total expenses incurred (09,079) 57,5 64,48 (a) 47,69 6. Less unpaid expenses-current year 0,555,0 49,55 0,804, Add unpaid expenses-prior year 4,949,4,80 0 5,8,5 8. Amounts receivable relating to uninsured plans, prior year Amounts receivable relating to uninsured plans, current year 0 0. TOTAL EXPENSES PAID (Lines ) 4,85, 554,808 64,48 4,804,87 DETAILS OF WRITE-INS 40. Run-off expense 0,08, Consulting fees Misc expense 0,476 64,48 74, Summary of remaining write-ins for Line 4 from overflow page Totals (Lines 40 through 40 plus 498) (Line 4 above) 0 4,585 64,48 05,8 (a) Includes management fees of $,00,000 to affiliates and $ to non-affiliates. 4 Total

12 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company EXHIBIT OF NET INVESTMENT INCOME Collected During Year Earned During Year. U.S. Government bonds (a) 4,6 6,07. Bonds exempt from U.S. tax (a). Other bonds (unaffiliated) (a) 465,0 465,4. Bonds of affiliates (a) 0. Preferred stocks (unaffiliated) (b) 0. Preferred stocks of affiliates (b) 0. Common stocks (unaffiliated) 0 0. Common stocks of affiliates 0. Mortgage loans (c) 4. Real estate (d) 5. Contract loans 6. Cash, cash equivalents and short-term investments (e) 4,974, Derivative instruments (f) 8. Other invested assets Aggregate write-ins for investment income Total gross investment income 485, ,. Investment expenses (g) 64,48. Investment taxes, licenses and fees, excluding federal income taxes (g). Interest expense (h) 4. Depreciation on real estate and other invested assets (i) 5. Aggregate write-ins for deductions from investment income 0 6. Total deductions (Lines through 5) 64,48 7. Net investment income (Line 0 minus Line 6) 4,084 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 090 through 090 plus 0998) (Line 9 above) Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above) 0 (a) Includes $ 4,8 accrual of discount less $ 6,874 amortization of premium and less $ 0,97 paid for accrued interest on purchases. (b) Includes $ accrual of discount less $ amortization of premium and less $ 0 paid for accrued dividends on purchases. (c) Includes $ 0 accrual of discount less $ 0 amortization of premium and less $ paid for accrued interest on purchases. (d) Includes $ for company s occupancy of its own buildings; and excludes $ interest on encumbrances. (e) Includes $,08 accrual of discount less $ 4,4 amortization of premium and less $ 8,978 paid for accrued interest on purchases. (f) Includes $ accrual of discount less $ amortization of premium. (g) Includes $ investment expenses and $ investment taxes, licenses and fees, excluding federal income taxes, attributable to segregated and Separate Accounts. (h) Includes $ interest on surplus notes and $ interest on capital notes. (i) Includes $ depreciation on real estate and $ depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) Realized Gain (Loss) On Sales or Maturity Other Realized Adjustments Total Realized Capital Gain (Loss) (Columns + ) 4 Change in Unrealized Capital Gain (Loss) 5 Change in Unrealized Foreign Exchange Capital Gain (Loss). U.S. Government bonds 0 (80). Bonds exempt from U.S. tax 0. Other bonds (unaffiliated) 9,606 9, Bonds of affiliates Preferred stocks (unaffiliated) Preferred stocks of affiliates Common stocks (unaffiliated) Common stocks of affiliates Mortgage loans Real estate Contract loans 0 6. Cash, cash equivalents and short-term investments Derivative instruments 0 8. Other invested assets Aggregate write-ins for capital gains (losses) Total capital gains (losses) 9,6 0 9,6 (80) 0 DETAILS OF WRITE-INS Summary of remaining write-ins for Line 9 from overflow page Totals (Lines 090 through 090 plus 0998) (Line 9 above)

13 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company EXHIBIT OF NONADMITTED ASSETS Current Year Total Nonadmitted Assets Prior Year Total Nonadmitted Assets Change in Total Nonadmitted Assets (Col. - Col. ). Bonds (Schedule D) Stocks (Schedule D):. Preferred stocks Common stocks Mortgage loans on real estate (Schedule B):. First liens Other than first liens Real estate (Schedule A): 4. Properties occupied by the company Properties held for the production of income Properties held for sale Cash (Schedule E-Part ), cash equivalents (Schedule E-Part ) and short-term investments (Schedule DA) Contract loans Derivatives (Schedule DB) Other invested assets (Schedule BA) Receivables for securities Securities lending reinvested collateral assets (Schedule DL) Aggregate write-ins for invested assets Subtotals, cash and invested assets (Lines to ) Title plants (for Title insurers only) Investment income due and accrued Premiums and considerations: 5. Uncollected premiums and agents balances in the course of collection Deferred premiums, agents balances and installments booked but deferred and not yet due Accrued retrospective premiums Reinsurance: 6. Amounts recoverable from reinsurers Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon Net deferred tax asset Guaranty funds receivable or on deposit Electronic data processing equipment and software Furniture and equipment, including health care delivery assets Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates Health care and other amounts receivable Aggregate write-ins for other-than-invested assets Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines to 5) From Separate Accounts, Segregated Accounts and Protected Cell Accounts Total (Lines 6 and 7) DETAILS OF WRITE-INS Summary of remaining write-ins for Line from overflow page Totals (Lines 0 through 0 plus 98) (Line above) Summary of remaining write-ins for Line 5 from overflow page Totals (Lines 50 through 50 plus 598) (Line 5 above) 0 0 0

14 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company NOTES TO FINANCIAL STATEMENTS. Summary of Significant Accounting Policies A. Accounting Practices State of Domicile 04 0 NET INCOME () Company state basis (Page 4, Line 0, Columns & )... RI $... 9,95,4 $...(5,4) () State Prescribed Practices that increase/(decrease) NAIC SAP: () State Permitted Practices that increase/(decrease) NAIC SAP: (4) NAIC SAP (--=4)... RI $... 9,95,4 $... (5,4) SURPLUS (5) Company state basis (Page, Line 7, Columns & )... RI $... 9,64,440 $... 8,7,0 (6) State Prescribed Practices that increase/(decrease) NAIC SAP: (7) State Permitted Practices that increase/(decrease) NAIC SAP: (8) NAIC SAP (5-6-7=8)... RI $... 9,64,440 $... 8,7,0 B. The preparation of financial statements in conformity with Statutory Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. C. The Company uses the following accounting policies:. Short-term investments are stated at cost.. Bonds, including issuer obligations, mortgage-backed securities and asset-backed securities rated and are stated at amortized cost using the interest method; all others are stated at the lower of amortized cost or market.. Common Stocks, other than investments in stocks of subsidiaries and affiliates, are reported at fair market values as determined by the Securities Valuation of the NAIC. 4. 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 value or fair value. 5. Mortgage Loans 6. Loan-Backed Securities are stated at either amortized cost or the lower of amortized cost or fair market value. The prospective adjustment method is used to value all securities. 7. Investments in subsidiaries, controlled and affiliated companies 8. Investments in joint ventures, partnerships and limited liability companies 9. Derivatives 0. Premium Deficiency. Loss/Claim Adjustment Expenses Asbestos, Environmental and Other Latent Injury Type Claims Direct Losses An exposure analysis on an account by account basis is performed and the appropriate reserves are established whether it be case reserves or a bulk IBNR reserve. IBNR reserves are established for the unknown or unreported cases, adverse development on known cases and allocated adjustment expenses. Assumed Losses An exposure analysis on a treaty by treaty is performed and the appropriate case reserves are established. A more detailed category review assists in the development of the IBNR reserves.. Capitalization Policy.. Pharmaceutical Rebate Receivables. Accounting Changes and Corrections of Errors There have been no material changes in accounting principles and/or correction of errors during the current year.. Business Combinations and Goodwill 4. Discontinued Operations 5. Investments A. Mortgage Loans, including Mezzanine Real Estate Loans The Company had no investments in mortgage loans or mezzanine real estate loans. B. Debt Restructuring The Company had no restructured debt invested assets. C. Reverse Mortgages-NONE D. Loan-Backed Securities () Mortgage backed securities are valued using anticipated prepayment assumptions as of the date of purchase. These assumptions continue to be reasonable in the current interest rate and economic environment. The prospective adjustment method is used to value structured securities. Fair values of mortgage backed securities are estimated using values obtained from independent pricing services or are based on expected future cash flows discounted using a current market rate applicable to the yield, credit quality and maturity of the investments. () The Company has not recognized any other-than-temporary impairments on its mortgage backed securities. () The Company has no impaired mortgage backed securities in which fair value is less than cost for which an other-than-temporary impairment has not been recognized. (4) The Company s loan-backed securities in an unrealized loss position at December, 04, are summarized as follows: Less than months months or more Total Market Unrealized Market Unrealized Market Unrealized Value Loss Value Loss Value Loss $,578,5 $(,48) $496,97 $(6,56) $,075,08 $(8,908) 4

15 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company (5) The Company regularly reviews its investment portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of its investments. A number of criteria are considered during this process, including but not limited to the following: whether the Company intends to sell the security; the current fair value as compared to amortized cost or cost, as appropriate, of the security; the length of time the security s fair value has been below amortized cost or cost; the likelihood that the Company will be required to sell the security before recovery of its cost basis; specific credit issues related to the issuer; and current economic conditions, including interest rates. In general, the Company reviews all securities that are impaired by 5% or more at the end of the period. The Company focuses its review of securities with no stated maturity date on securities that were impaired by 0% or more at the end of the period or had been impaired 0% or more continuously for six months or longer as of the end of the period. The Company also analyzes the entire portfolio for other factors that might indicate a risk of impairment, including credit ratings, liquidity of the issuer and interest rates. If declines in the fair value of a loan-backed security are deemed other than temporary and if the Company does not intend to sell and more likely than not would not be required to sell the security prior to recovery of the amortized cost basis, the impairment is separated into the amount that is credit related and the amount that is due to all other factors. The other-than-temporary impairment ( OTTI ) charged to operations is equal to the credit loss component and is the difference between a security s amortized cost basis and the present value of expected future cash flows discounted at the security s effective interest rate. For loan-backed securities that are considered to be other-than-temporarily impaired and that the Company intends to sell or more likely than not would be required to sell prior to recovery of the amortized cost basis, the amount of the OTTI loss is equal to the entire difference between the investment s amortized cost basis and its fair value at the balance sheet date. In 04, there were no OTTI charges. At December, 04, no security had a fair value less than 80% of its amortized cost or cost. E. Repurchase Agreements and/or Securities Lending Transactions The Company has no repurchase agreements. F. Real Estate Not applicable G. Low-Income Housing Tax Credits Not applicable H. Restricted Assets () Restricted Assets (Including Pledged) Gross Restricted 8 Percentage Current Year G/A Supporting Protected Cell Account Activity (a) Total Protected Cell Account Restricted Assets Protected Cell Account Assets Supporting G/A Activity (b) Increase/ (Decrease) (5 minus 6) Total Current Year Admitted Restricted Admitted Restricted to Total Admitted Assets Restricted Asset Category Total General Account (G/A) Total ( plus ) Total From Prior Year Gross Restricted to Total Assets a. Subject to contractual obligation for which liability is not shown $... $... $... $... $... 0 $... 0 $... 0 $ % % b. Collateral held under security lending agreements c. Subject to repurchase agreements d. Subject to reverse repurchase agreements e. Subject to dollar repurchase agreements f. Subject to dollar reverse repurchase agreements g. Placed under option contracts h. Letter stock or securities restricted as to sale excluding FHLB capital stock i. FHLB capital stock j. On deposit with states...,56, ,56,5...,54,870...(8,8) 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 $...,56,5 $... 0 $... 0 $... 0 $...,56,5 $...,54,870 $...(8,8) $ %...% (a) Subset of column (b) Subset of column (a) Subset of column (b) Subset of column (a) Subset of column (b) Subset of column () Detail of Assets Pledged as Collateral Not Captured in Other Categories (Contracts that Share Similar Characteristics, Such as Reinsurance and Derivatives, Are Reported in the Aggregate) () Detail of Other Restricted Assets (Contracts that Share Similar Characteristics, Such as Reinsurance and Derivatives, Are Reported in the Aggregate) I. Working Capital Finance Investments-NONE J. Offsetting and Netting of Assets and Liabilities-NONE K. Structured Notes-NONE 6. Joint Ventures, Partnerships and Liability Companies 7. Investment Income A. Accrued Investment Income The Company non admits investment income due and accrued if amounts are over 90 days past due (80 days for mortgage loans or amounts on mortgage loans in default). B. Amounts Non-Admitted 8. Derivative Instruments 4.

16 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company 9. Income Taxes A. The components of the net deferred tax asset/(liability) at December are as follows:. //04 () () () Ordinary Capital (Col +) Total (a) Gross Deferred Tax Assets $...,740,6 $... $...,740,6 (b) Statutory Valuation Allowance Adjustments $...,77,09 $... $...,77,09 (c) Adjusted Gross Deferred Tax Assets (a - b) $...,59 $... 0 $....,59 (d) Deferred Tax Assets Nonadmitted $... $... $... 0 (e) Subtotal Net Admitted Deferred Tax Asset (c -d ) $...,59 $... 0 $....,59 (f) Deferred Tax Liabilities $...,59 $... $...,59 (g) Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (e - f) $... 0 $... 0 $ (4) Ordinary //0 (5) Capital (6) (Col 4+5) Total (a) Gross Deferred Tax Assets $... 5,68,4 $... 0 $.... 5,68,4 (b) Statutory Valuation Allowance Adjustments $... 4,85,605 $... 0 $.... 4,85,605 (c) Adjusted Gross Deferred Tax Assets (a - b) $... 89,68 $... 0 $ ,68 (d) Deferred Tax Assets Nonadmitted $... 0 $... 0 $ (e) Subtotal Net Admitted Deferred Tax Asset (c -d ) $... 89,68 $... 0 $ ,68 (f) Deferred Tax Liabilities $... 89,68 $... 0 $ ,68 (g) Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (e - f) $... 0 $... 0 $ (7) (Col -4) Ordinary Change (8) (Col -5) Capital (9) (Col 7+8) Total (a) Gross Deferred Tax Assets $...(,94,6) $... 0 $....(,94,6) (b) Statutory Valuation Allowance Adjustments $...(,5,5) $... 0 $....(,5,5) (c) Adjusted Gross Deferred Tax Assets (a - b) $...(86,099) $... 0 $....(86,099) (d) Deferred Tax Assets Nonadmitted $... 0 $... 0 $ (e) Subtotal Net Admitted Deferred Tax Asset (c -d ) $...(86,099) $... 0 $....(86,099) (f) Deferred Tax Liabilities $...(86,099) $... 0 $....(86,099) (g) Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (e - f) $... 0 $... 0 $ //04 () () () Admission Calculation Components SSAP No. 0 Ordinary Capital (Col +) Total (a) Federal Income Taxes Paid In Prior Years Recoverable Through Loss Carrybacks. $... $... $... 0 (b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Excluding The Amount Of Deferred Tax Assets From (a) above) After Application of the Threshold Limitation. (The Lesser of (b) and (b) Below) $... $... $ Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date. $... $... $ Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold. XXX XXX $....,98,00 (c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From (a) and (b) above) Offset by Gross Deferred Tax Liabilities. $...,59 $... $...,59 (d) Deferred Tax Assets Admitted as the result of application of SSAP No. 0. Total ((a) + (b) + (c)) $...,59 $... 0 $....,59 (4) Ordinary //0 (5) Capital (6) (Col 4+5) Total (a) Federal Income Taxes Paid In Prior Years Recoverable Through Loss Carrybacks. $... 0 $... 0 $ (b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Excluding The Amount Of Deferred Tax Assets From (a) above) After Application of the Threshold Limitation. (The Lesser of (b) and (b) Below) $... 0 $... 0 $ Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date. $... 0 $... 0 $ Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold. XXX XXX $ (c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From (a) and (b) above) Offset by Gross Deferred Tax Liabilities. $... 89,68 $... 0 $ ,68 (d) Deferred Tax Assets Admitted as the result of application of SSAP No. 0. Total ((a) + (b) + (c)) $... 89,68 $... 0 $ ,68 (7) (Col -4) Ordinary Change (8) (Col -5) Capital (9) (Col 7+8) Total (a) Federal Income Taxes Paid In Prior Years Recoverable Through Loss Carrybacks. $... 0 $... 0 $ (b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Excluding The Amount Of Deferred Tax Assets From (a) above) After Application of the Threshold Limitation. (The Lesser of (b) and (b) Below) $... 0 $... 0 $ Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date. $... 0 $... 0 $ Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold. XXX XXX $....,98,00 (c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From (a) and (b) above) Offset by Gross Deferred Tax Liabilities. $...(86,099) $... 0 $....(86,099) (d) Deferred Tax Assets Admitted as the result of application of SSAP No. 0. Total ((a) + (b) + (c)) $...(86,099) $... 0 $....(86,099) (a) (b) Ratio Percentage Used To Determine Recovery Period And Threshold Limitation Amount. Amount Of Adjusted Capital And Surplus Used To Determine Recovery Period And Threshold Limitation In (b) Above.... %... 59% $... 9,8,000 $... 8,7,0 4. The Company has not considered tax-planning strategies in the measurements of deferred tax assets and liabilities. B. Deferred tax liabilities are not recognized for the following amounts: 4.

17 ANNUAL STATEMENT FOR THE YEAR 04 OF THE Seaton Insurance Company C. Current income taxes incurred consist of the following major components: () //04 () //0 () (Col -) Change. Current Income Tax (a) Federal $... 7,79 $ $.... 7,79 (b) Foreign $... $ $ (c) Subtotal $... 7,79 $ $.... 7,79 (d) Federal income tax on net capital gains $... $ $ (e) Utilization of capital loss carry-forwards $... $ $ (f) Other $... $ $ (g) Federal and foreign income taxes incurred $ $ $ The Company has no income tax contingencies to report for the periods ending December, 04 and December, 0. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows at December, 04 and December, 0:. Deferred Tax Assets: (a) Ordinary () Discounting of unpaid losses $...,44,708 $...,,4 $....(689,45) () NOL Carryforward $... 76,55 $...,550,00 $....(,47,745) () Accruals $...,850 $... 0 $....,850 (4) AMT Credit $... 7,79 $... 0 $.... 7,79 (5) Deferred acquisition costs $... $... 0 $ (6) Policyholder dividends accrual $... $... 0 $ (7) Fixed assets $... $... 0 $ (8) Compensation and benefits accrual $... $... 0 $ (9) Pension accrual $... $... 0 $ (0) Receivables - nonadmitted $... $... 0 $ () Net operating loss carry-forward $... $... $.... () Tax credit carry-forward $... $... 0 $.... () Other (including items <5% of total ordinary tax assets) $... $... 0 $.... (99) Subtotal $...,740,6 $... 5,68,4 $....(,94,6) (b) Statutory valuation allowance adjustment $...,77,09 $... 4,85,605 $....(,5,5) (c) Nonadmitted $... $... 0 $ (d) Admitted ordinary deferred tax assets (a99 - b - c) $...,59 $... 89,68 $.... (86,099) (e) Capital: () Investments $... $... 0 $ () Net capital loss carry-forward $... $... 0 $ () Real estate $... $... 0 $ (4) Other (including items <5% of total capital tax assets) $... $... 0 $ (99) Subtotal $... 0 $... 0 $ (f) Statutory valuation allowance adjustment $... $... 0 $ (g) Nonadmitted $... $... 0 $ (h) Admitted capital deferred tax assets (e99 - f - g) $... 0 $... 0 $ (i) Admitted deferred tax assets (d + h) $...,59 $... 89,68 $.... (86,099). Deferred Tax Liabilities: (a) Ordinary () Retroactive Reinsurance Recoverable $... $... 89,68 $....(89,68) () Accrued Market Discount $...,59 $... 0 $....,59 () Deferred and uncollected premium $... $... 0 $ (4) Policyholder reserves $... $... 0 $ (5) Other (including items<5% of total ordinary tax liabilities) $... $... $.... (99) Subtotal $...,59 $... 89,68 $....(86,099) (b) Capital: () Investments $... $... 0 $ () Real estate $... $... 0 $ () Other (including items <5% of total capital tax liabilities) $... $... 0 $ (99) Subtotal $... 0 $... 0 $ (c) Deferred tax liabilities (a99 + b99) $...,59 $... 89,68 $.... (86,099) 4. Net deferred tax assets/liabilities (i - c) $... 0 $... 0 $ The change in net deferred income taxes between December, 04 and December, 0 is composed of the following (this analysis is exclusive of nonadmitted DTAs as the Change in Nonadmitted Assets is reported //04 //0 Change Total deferred tax a ssets $,740,6 $ 5,68,4 $ (,94,6) Total deferred tax lia bilitie s,59 89,69 (86,0 0) Net deferred tax assets /lia bilitie s,77,09 4,85,605 (,5,5) Statutory valuation a llo wa nce (,77,09) (4,85,605),5,5 Net deferred tax assets a fter valuation allo wa nce Tax e ffect of unrealized gains /(lo sses) Statutory valuation a llo wa nce on unrealized Change in net deferred income tax (expense)/benefit $ - $ - $ - 4.