Statutory Statement Contact Jennifer Gravelle (Area Code) (Telephone Number) (Extension)

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 , 0000 NAIC Company Code Employer's ID Number (Current Period) (Prior Period) Organized under the Laws of Florida State of Domicile or Port of Entry Florida Country of Domicile US Incorporated/Organized... May 31, 2007 Commenced Business... August 8, 2007 Statutory Home Office 4200 Northcorp Parkway Suite Palm Beach Gardens... FL... US (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 4200 Northcorp Parkway Suite Palm Beach Gardens... FL... US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address 4200 Northcorp Parkway Suite Palm Beach Gardens... FL... US (Street and Number or P. O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records 4200 Northcorp Parkway Suite Palm Beach Gardens... FL... US (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Web Site Address Statutory Statement Contact Jennifer Gravelle (Name) (Area Code) (Telephone Number) (Extension) jgravelle@oigfl.com ( Address) (Fax Number) OFFICERS Name Title Name Title 1. Jeffrey Bernard Scott CEO, President & Secretary 2. Jennifer Lee Gravelle CFO OTHER DIRECTORS OR TRUSTEES Jeffrey Bernard Scott Alec Isabelle Jean Machiels Richard H. Davis Jr. Daniel Benjamin Stencel Jennifer Lee Gravelle State of... County of... Florida Palm Beach 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) Jeffrey Bernard Scott Jennifer Lee Gravelle 1. (Printed Name) 2. (Printed Name) 3. (Printed Name) CEO, President & Secretary CFO (Title) (Title) (Title) Subscribed and sworn to before me a. Is this an original filing? Yes [ X ] No [ ] This day of 2017 b. If no 1. State the amendment number 2. Date filed 3. Number of pages attached

2 ASSETS Current Year Prior Year Net Admitted Nonadmitted Assets Net Assets Assets (Cols. 1-2) Admitted Assets 1. Bonds (Schedule D) ,216, ,216, ,062, Stocks (Schedule D): 2.1 Preferred stocks Common stocks ,146, ,146, ,969, Mortgage loans on real estate (Schedule B): 3.1 First liens Other than first liens Real estate (Schedule A): 4.1 Properties occupied by the company (less $...0 encumbrances) Properties held for the production of income (less $...0 encumbrances) Properties held for sale (less $...0 encumbrances) Cash ($...13,996,858, Schedule E-Part 1), cash equivalents ($...0, Schedule E-Part 2) and short-term investments ($...1,834,994, Schedule DA) ,831, ,831, ,636, Contract loans (including $...0 premium notes) 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 1 to 11) ,199, ,199, ,668, Title plants less $...0 charged off (for Title insurers only) Investment income due and accrued , , , Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection ,479, , ,450, ,233, Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $...0 earned but unbilled premiums) ,669, ,669, ,103, Accrued retrospective premiums ($...0) and contracts subject to redetermination ($...0) Reinsurance: 16.1 Amounts recoverable from reinsurers ,570, ,570, ,712, Funds held by or deposited with reinsured companies Other amounts receivable under reinsurance contracts Amounts receivable relating to uninsured plans Current federal and foreign income tax recoverable and interest thereon ,207, ,207, ,281, Net deferred tax asset , , , Guaranty funds receivable or on deposit Electronic data processing equipment and software , Furniture and equipment, including health care delivery assets ($...0) Net adjustment in assets and liabilities due to foreign exchange rates Receivables from parent, subsidiaries and affiliates , , , Health care ($...0) and other amounts receivable Aggregate write-ins for other-than-invested assets , , , Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) ,641, , ,029, ,172, From Separate Accounts, Segregated Accounts and Protected Cell Accounts TOTAL (Lines 26 and 27) ,641, , ,029, ,172,269 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 Asset , , Miscelleanous Receivable Citizens Assessment Receivable , , Summary of remaining write-ins for Line 25 from overflow page Totals (Lines 2501 through 2503 plus 2598) (Line 25 above) , , ,

3 LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current Year Prior Year 1. Losses (Part 2A, Line 35, Column 8) ,221, ,544, Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6) Loss adjustment expenses (Part 2A, Line 35, Column 9) ,111, ,967, Commissions payable, contingent commissions and other similar charges ,075, Other expenses (excluding taxes, licenses and fees) , , Taxes, licenses and fees (excluding federal and foreign income taxes) , , Current federal and foreign income taxes (including $...0 on realized capital gains (losses)) Net deferred tax liability Borrowed money $...0 and interest thereon $ Unearned premiums (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of $...69,910,917 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)......(3,885,925)...(4,650,848) 10. Advance premium ,933, ,644, Dividends declared and unpaid: 11.1 Stockholders Policyholders Ceded reinsurance premiums payable (net of ceding commissions) ,192, ,901, Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 19) Amounts withheld or retained by company for account of others Remittances and items not allocated , , 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 , Derivatives Payable for securities Payable for securities lending Liability for amounts held under uninsured plans Capital notes $...0 and interest thereon $ Aggregate write-ins for liabilities ,675, ,384, Total liabilities excluding protected cell liabilities (Lines 1 through 25) ,609, ,843, Protected cell liabilities Total liabilities (Lines 26 and 27) ,609, ,843, Aggregate write-ins for special surplus funds Common capital stock , , Preferred capital stock Aggregate write-ins for other-than-special surplus funds Surplus notes ,900, ,000, Gross paid in and contributed surplus ,498, ,498, Unassigned funds (surplus)......(10,013,146)...(10,204,096) 36. 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, less 36) (Page 4, Line 39) ,420, ,329, TOTAL (Page 2, Line 28, Col. 3) ,029, ,172,269 DETAILS OF WRITE-INS Escheat ,373, , Return Premiums , ,565, Summary of remaining write-ins for Line 25 from overflow page Totals (Lines 2501 through 2503 plus 2598) (Line 25 above) ,675, ,384, 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 STATEMENT OF INCOME 1 2 UNDERWRITING INCOME Current Year Prior Year 1. Premiums earned (Part 1, Line 35, Column 4)......(17,581,103)...(6,389,176) DEDUCTIONS: 2. Losses incurred (Part 2, Line 35, Column 7) ,683, ,839, Loss adjustment expenses incurred (Part 3, Line 25, Column 1) ,860, ,590, Other underwriting expenses incurred (Part 3, Line 25, Column 2)......(27,544,515)...(32,286,019) 5. Aggregate write-ins for underwriting deductions Total underwriting deductions (Lines 2 through 5)......(17,000,193)...(12,856,171) 7. Net income of protected cells Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7)......(580,910)...6,466,995 INVESTMENT INCOME 9. Net investment income earned (Exhibit of Net Investment Income, Line 17) , , Net realized capital gains (losses) less capital gains tax of $...56,271 (Exhibit of Capital Gains (Losses)) , , Net investment gain (loss) (Lines ) , ,226 OTHER INCOME 12. Net gain (loss) from agents' or premium balances charged off (amount recovered $...64,715 amount charged off $...104,038)......(39,323)...(25,864) 13. Finance and service charges not included in premiums Aggregate write-ins for miscellaneous income , , Total other income (Lines 12 through 14)......(1,431)...23, Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines ) , ,758, Dividends to policyholders Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 16 minus Line 17) , ,758, Federal and foreign income taxes incurred......(163,043)...698, Net income (Line 18 minus Line 19) (to Line 22) , ,059,867 CAPITAL AND SURPLUS ACCOUNT 21. Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2) ,329, ,776, Net income (from Line 20) , ,059, Net transfers (to) from Protected Cell accounts Change in net unrealized capital gains or (losses) less capital gains tax of $...43, ,564...(22,651) 25. Change in net unrealized foreign exchange capital gain (loss) Change in net deferred income tax......(12,748)...(1,545,460) 27. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 28, Column 3)......(79,302)...(54,600) 28. Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1) ,000...(10,000) 29. Change in surplus notes......(100,000) Surplus (contributed to) withdrawn from Protected Cells Cumulative effect of changes in accounting principles , Capital changes: 32.1 Paid in Transferred from surplus (Stock Dividend) Transferred to surplus Surplus adjustments: 33.1 Paid in Transferred to capital (Stock Dividend) Transferred from capital Net remittances from or (to) Home Office Dividends to stockholders Change in treasury stock (Page 3, Lines 36.1 and 36.2, Column 2 minus Column 1) Aggregate write-ins for gains and losses in surplus Change in surplus as regards policyholders for the year (Lines 22 through 37) , ,552, Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37) ,420, ,329,238 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) Commission on Flood Insurance , , Miscellaneous Expense......(16,271) Summary of remaining write-ins for Line 14 from overflow page Totals (Lines 1401 through 1403 plus 1498) (Line 14 above) , , Summary of remaining write-ins for Line 37 from overflow page Totals (Lines 3701 through 3703 plus 3798) (Line 37 above)

5 CASH FROM OPERATIONS CASH FLOW 1 2 Current Year Prior Year 1. Premiums collected net of reinsurance......(22,988,998)...(19,764,176) 2. Net investment income , , Miscellaneous income......(1,431)...23, Total (Lines 1 through 3)......(22,390,987)...(19,535,904) 5. Benefit and loss related payments ,865, ,414, Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts Commissions, expenses paid and aggregate write-ins for deductions......(27,596,665)...(30,078,178) 8. Dividends paid to policyholders Federal and foreign income taxes paid (recovered) net of $...0 tax on capital gains (losses)......(1,180,206)...2,764, Total (Lines 5 through 9)......(13,911,587)...(14,899,094) 11. Net cash from operations (Line 4 minus Line 10)......(8,479,400)...(4,636,810) CASH FROM INVESTMENTS 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds ,031, ,855, Stocks ,663, Mortgage loans Real estate Other invested assets Net gains or (losses) on cash, cash equivalents and short-term investments Miscellaneous proceeds Total investment proceeds (Lines 12.1 to 12.7) ,695, ,855, Cost of investments acquired (long-term only): 13.1 Bonds ,221, ,849, Stocks ,653, ,003, Mortgage loans Real estate Other invested assets Miscellaneous applications , Total investments acquired (Lines 13.1 to 13.6) ,879, ,853, Net increase (decrease) in contract loans and premium notes Net cash from investments (Line 12.8 minus Lines 13.7 minus Line 14) ,772...(12,998,263) 16. Cash provided (applied): CASH FROM FINANCING AND MISCELLANEOUS SOURCES 16.1 Surplus notes, capital notes......(100,000) 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)......(40,876)...(4,384,607) 17. Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)......(140,876)...(4,384,607) 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)......(7,804,504)...(22,019,680) 19. Cash, cash equivalents and short-term investments: 19.1 Beginning of year ,636, ,656, End of year (Line 18 plus Line 19.1) ,831, ,636,357 Note: Supplemental disclosures of cash flow information for non-cash transactions: None

6 UNDERWRITING AND INVESTMENT EXHIBIT PART 1 - PREMIUMS EARNED Unearned Premiums Unearned Premiums Net December 31 December 31 Premiums Premiums Prior Year- Current Year- Earned Written per per Col. 3, per Col. 5, During Year Line of Business Column 6, Part 1B Last Year's Part 1 Part 1A (Cols ) 1. Fire , , , , Allied lines ,518, ,346, ,023, ,841, Farmowners multiple peril Homeowners multiple peril......(21,357,366)...(8,601,828)...(6,326,000)...(23,633,194) 5. 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 , 19.2 Private passenger auto liability , 19.4 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 Reinsurance - nonproportional assumed financial lines Aggregate write-ins for other lines of business TOTALS......(16,816,180)...(4,650,848)...(3,885,925)...(17,581,103) 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 UNDERWRITING AND INVESTMENT EXHIBIT PART 1A - RECAPITULATION OF ALL PREMIUMS Reserve for Amount Unearned Amount Unearned Rate Credits Total Reserve (Running One Year (Running More Than and Retrospective for Unearned or Less from Date One Year from Earned But Adjustments Based Premiums Line of Business of Policy) (a) Date of Policy) (a) Unbilled Premium on Experience Cols Fire , , Allied lines ,023, ,023, Farmowners multiple peril Homeowners multiple peril......(6,326,000) (6,326,000) 5. 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 , 19.2 Private passenger auto liability , 19.4 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 Reinsurance - nonproportional assumed financial lines Aggregate write-ins for other lines of business TOTALS......(3,885,925) (3,885,925) 36. Accrued retrospective premiums based on experience Earned but unbilled premiums Balance (sum of Lines 35 through 37)......(3,885,925) 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 method 7

8 UNDERWRITING AND INVESTMENT EXHIBIT PART 1B - PREMIUMS WRITTEN 1 Reinsurance Assumed Reinsurance Ceded Net Premiums Direct Written Business From From To To (Cols Line of Business (a) Affiliates Non-Affiliates Affiliates Non-Affiliates - 4-5) 1. Fire ,234, (42,185) ,398, , Allied lines ,711, (312,763) ,880, ,518, Farmowners multiple peril Homeowners multiple peril ,658, (662,900)...7,173, ,178,624...(21,357,366) 5. 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 , 19.2 Private passenger auto liability , 19.4 Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty Reinsurance - nonproportional assumed property......xxx Reinsurance - nonproportional assumed liability......xxx Reinsurance - nonproportional assumed financial lines......xxx Aggregate write-ins for other lines of business TOTALS ,365, (1,017,848)...7,173, ,989,989...(16,816,180) 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 [ ] If yes: 1. The amount of such installment premiums $ Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $

9 9 Annual Statement for the year 2016 of the UNDERWRITING AND INVESTMENT EXHIBIT PART 2 - LOSSES PAID AND INCURRED Losses Paid Less Salvage Percentage of Net Losses Losses Losses Incurred Unpaid Net Losses Incurred (Col. 7, Part 2) Direct Reinsurance Reinsurance Net Payments Current Year Unpaid Current Year to Premiums Earned Line of Business Business Assumed Recovered (Cols ) (Part 2A, Col. 8) Prior Year (Cols ) (Col. 4, Part 1) 1. Fire , , , , ,749...(3,517)...(0.4) 2. Allied lines , , , , , , , Farmowners multiple peril Homeowners multiple peril ,325, ,520, ,936, ,909, ,032, ,305, ,635,736...(28.1) 5. 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 , 19.2 Private passenger auto liability , 19.4 Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty Reinsurance - nonproportional assumed property......xxx Reinsurance - nonproportional assumed liability......xxx Reinsurance - nonproportional assumed financial lines......xxx Aggregate write-ins for other lines of business TOTALS ,659, ,535, ,187, ,007, ,221, ,544, ,683,446...(38.0) DETAILS OF WRITE-INS Summary of remaining write-ins for Line 34 from overflow page xxx Totals (Lines 3401 through 3403 plus 3498) (Line 34 above)

10 10 Annual Statement for the year 2016 of the UNDERWRITING AND INVESTMENT EXHIBIT PART 2A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported Net Losses Excluding Net Incurred but Net Losses Unpaid Loss Reinsurance Deduct Reinsurance not Reported Reinsurance Reinsurance Unpaid Adjustment Line of Business Direct Assumed Recoverable (Cols ) Direct Assumed Ceded (Cols ) Expenses 1. Fire , , , , , , , , Allied lines , , , , , , , , Farmowners multiple peril Homeowners multiple peril ,976, ,072, ,664, ,384, ,442, , ,300, ,032, ,012, 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 (a) Credit accident and health (group and individual) Other accident and health (a) Workers' compensation Other liability - occurrence , , , , , , , , Other liability - claims-made Excess workers' compensation Products liability - occurrence Products liability - claims-made , 19.2 Private passenger auto liability , 19.4 Commercial auto liability Auto physical damage Aircraft (all perils) Fidelity Surety Burglary and theft Boiler and machinery Credit International Warranty Reinsurance - nonproportional assumed property......xxx xxx Reinsurance - nonproportional assumed liability......xxx xxx Reinsurance - nonproportional assumed financial lines......xxx xxx Aggregate write-ins for other lines of business TOTALS ,239, ,072, ,861, ,449, ,772, , ,529, ,221, ,111,782 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 1. Claim adjustment services: UNDERWRITING AND INVESTMENT EXHIBIT PART 3 - EXPENSES Other Loss Adjustment Underwriting Investment Expenses Expenses Expenses Total 1.1 Direct ,984, ,984, Reinsurance assumed ,412, ,412, Reinsurance ceded ,536, ,536, Net claim adjustment services ( ) ,860, ,860, Commission and brokerage: 2.1 Direct, excluding contingent ,090, ,090, Reinsurance assumed, excluding contingent Reinsurance ceded, excluding contingent ,595, ,595, Contingent - direct Contingent - reinsurance assumed Contingent - reinsurance ceded (5,802,041)......(5,802,041) 2.7 Policy and membership fees Net commission and brokerage ( ) (23,702,127) (23,702,127) 3. Allowances to manager and agents Advertising , , Boards, bureaus and associations (767)......(767) 6. Surveys and underwriting reports ,681, ,681, Audit of assureds' records Salary and related items: 8.1 Salaries ,126, ,126, Payroll taxes , , Employee relations and welfare , , Insurance , , Directors' fees Travel and travel items , , Rent and rent items , , Equipment , , Cost or depreciation of EDP equipment and software , , Printing and stationery , , Postage, telephone and telegraph, exchange and express , , Legal and auditing , , Totals (Lines 3 to 18) ,894, ,894, Taxes, licenses and fees: 20.1 State and local insurance taxes deducting guaranty association credits of $ ,315, ,315, Insurance department licenses and fees , , Gross guaranty association assessments All other (excluding federal and foreign income and real estate) Total taxes, licenses and fees ( ) ,322, ,322, Real estate expenses Real estate taxes Reimbursements by uninsured plans Aggregate write-ins for miscellaneous expenses (13,059,365)...175,000...(12,884,365) 25. Total expenses incurred ,860,876...(27,544,515)...175,000 (a)...(23,508,639) 26. Less unpaid expenses - current year ,111, ,803, ,915, Add unpaid expenses - prior year ,967, ,741, ,709, Amounts receivable relating to uninsured plans, prior year Amounts receivable relating to uninsured plans, current year TOTAL EXPENSES PAID (Lines ) ,716,863...(30,606,472)...175,000...(26,714,609) DETAILS OF WRITE-INS Professional Fees - Other ,179, ,179, Other Expenses , , Contributions Administration (14,805,000)......(14,805,000) Summary of remaining write-ins for Line 24 from overflow page , , , Totals (Lines 2401 through 2403 plus 2498) (Line 24 above) (13,059,365)...175,000...(12,884,365) (a) Includes management fees of $...30,955,057 to affiliates and $...0 to non-affiliates. 11

12 EXHIBIT OF NET INVESTMENT INCOME 1 2 Collected Earned During Year During Year 1. U.S. government bonds... (a)...22, , Bonds exempt from U.S. tax... (a)...86, , Other bonds (unaffiliated)... (a)...466, , Bonds of affiliates... (a) Preferred stocks (unaffiliated)... (b) Preferred stocks of affiliates... (b) Common stocks (unaffiliated) , , Common stocks of affiliates Mortgage loans... (c) Real estate... (d) Contract loans Cash, cash equivalents and short-term investments... (e) Derivative instruments... (f) Other invested assets Aggregate write-ins for investment income , , Total gross investment income , , Investment expenses... (g)...175, Investment taxes, licenses and fees, excluding federal income taxes... (g) Interest expense... (h) Depreciation on real estate and other invested assets... (i) Aggregate write-ins for deductions from investment income Total deductions (Lines 11 through 15) , Net investment income (Line 10 minus Line 16) ,500 DETAILS OF WRITE-INS Interest on State of Florida Deposit , , Interest on Florida Hurricane Cat Fund , , 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 $...22,182 accrual of discount less $...162,508 amortization of premium and less $...29,479 paid for accrued interest on purchases. (b) Includes $...0 accrual of discount less $...0 amortization of premium and less $...0 paid for accrued dividends on purchases. (c) Includes $...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 $...0 accrual of discount less $...0 amortization of premium and less $...0 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 $...0 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) Realized Change in Gain (Loss) Other Total Realized Change in Unrealized on Sales Realized Capital Gain (Loss) Unrealized Foreign Exchange or Maturity Adjustments (Columns 1 + 2) Capital Gain (Loss) Capital Gain (Loss) 1. U.S. government bonds Bonds exempt from U.S. tax , , Other bonds (unaffiliated) , , Bonds of affiliates Preferred stocks (unaffiliated) Preferred stocks of affiliates Common stocks (unaffiliated) , , , Common stocks of affiliates Mortgage loans Real estate Contract loans Cash, cash equivalents and short-term investments Derivative instruments Other invested assets Aggregate write-ins for capital gains (losses) Total capital gains (losses) , , , 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 EXHIBIT OF NONADMITTED ASSETS Current Year Prior Year Change in Total Total Total Nonadmitted Assets Nonadmitted Assets Nonadmitted Assets (Col. 2 - Col. 1) 1. Bonds (Schedule D) Stocks (Schedule D): 2.1 Preferred stocks Common stocks Mortgage loans on real estate (Schedule B): 3.1 First liens Other than first liens Real estate (Schedule A): 4.1 Properties occupied by the company Properties held for the production of income Properties held for sale Cash (Schedule E-Part 1), cash equivalents (Schedule E-Part 2) 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 1 to 11) Title plants (for Title insurers only) Investment income due and accrued Premiums and considerations: 15.1 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 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 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 , ,969...(131,314) 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 through 25) , ,770...(79,302) 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts TOTALS (Lines 26 and 27) , ,770...(79,302) 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) Non Admitted Prepaid , ,969...(131,314) Summary of remaining write-ins for Line 25 from overflow page Totals (Lines 2501 through 2503 plus 2598) (Line 25 above) , ,969...(131,314) 13

14 NOTES TO FINANCIAL STATEMENTS Note 1 Summary of Significant Accounting Policies and Going Concern A. Accounting Practices The accompanying financial statements of Olympus Insurance Company (the Company ) have been prepared in accordance with the statutory accounting practices ( SAP ) prescribed or permitted by the Florida Office of Insurance Regulation (the Office ). The Office requires insurance companies domiciled in the state of Florida to prepare their statutory financial statements in accordance with the National Association of Insurance Commissioners ( NAIC ) Accounting Practices & Procedures Manual, except to the extent that Florida law differs. The impact on statutory net income and surplus of the differences between NAIC SAP and that prescribed by the Office are shown in the table below. The Company has no permitted accounting practices. SSAP # F/S Page F/S Line # NET INCOME (1) state basis (Page 4, Line 20, Columns 1 & 2) XXX XXX XXX $ 189,436 $ 6,059,869 (2) State Prescribed Practices that increase/decrease NAIC SAP (3) State Permitted Practices that increase/decrease NAIC SAP (4) NAIC SAP (1 2 3 = 4) XXX XXX XXX $ 189,436 $ 6,059,869 SURPLUS (5) state basis (Page 3, line 37, Columns 1 & 2) XXX XXX XXX $ 30,420,188 $ 30,329,240 (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) XXX XXX XXX $ 30,420,188 $ 30,329,240 B. Use of Estimates in the Preparation of the Financial Statement The preparation of financial statements in conformity with the annual statement instructions and SAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, surplus, revenues and expenses. It also requires estimates in the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. A change in accounting estimate is reflected in the period when the change becomes known. C. Accounting Policy Written premiums are recorded as of the effective date of the policy or reinsurance contract. Upon recording the written premium, a liability, the unearned premium reserve, is established for the unexpired portion of the insurance or reinsurance coverage written. Unearned premium reserves are calculated using the daily pro rata method for direct and ceded business. Unearned premium reserves on assumed business are recorded based on reports from the ceding reinsurer. Flat fee service charges, other than installment fees, are recorded as written and earned premium as of the policy effective date. The Company does not charge installment fees. Expenses incurred in the acquisition of new and renewal insurance contracts, including acquisition costs such as sales commissions, underwriting and policy issue costs and inspection fees, are charged to operations as incurred. Acquisition expenses are reduced for ceding allowances received or receivable. The Company has concluded that its catastrophe and risk excess reinsurance costs are incurred for the acquisition of new and renewal insurance contracts and that these costs vary with the acquisition of each subject insurance contract based upon each acquired risk s insured value and its contribution to the Company s probable maximum catastrophe loss. Accordingly, both the Company s traditional acquisition costs, e.g. commissions and certain underwriting and policy issuance costs, and the cost of the Company s catastrophe and risk excess reinsurance constitute acquisition costs of the subject business ceded under the Company s quota share reinsurance contracts for purposes of applying the guidance found in paragraph 55 of Statement of Statutory Accounting Principle ( SSAP ) No. 62R, Property and Casualty Reinsurance. In addition, the Company uses the following significant accounting policies: (1) Short-term investments are stated at amortized cost. (2) Investment grade bonds rated as 1 or 2 by the NAIC, excluding loan-backed securities, are stated at amortized cost using the constant yield method. Bonds with NAIC ratings 3 6 are stated at the lower of amortized cost or estimated fair value. (3) Common stocks are stated at estimated fair value. (4) (5) (6) Investment grade loan-backed and structured securities are stated at either amortized cost or fair value depending on many factors, including the type of underlying collateral, NAIC rating and the relationship of amortized cost to estimated fair value and par value. The amortization period for loan-backed securities reflects estimates of the period over which repayment of principal is expected to occur, not the stated maturity date. Changes in estimated cash flows from assumptions at the date of purchase are accounted for using the retrospective method. See Note 5.D. for sources of estimated prepayment assumptions. (7) (8) (9) 14

15 NOTES TO FINANCIAL STATEMENTS (10) Investment income is not considered as a factor in determining the need for any premium deficiency reserves. (11) By their nature, insurance claims are subject to variability. The Company s ultimate liability for unpaid losses and loss adjustment expenses is dependent not only upon past events, but the emergence of future marketplace, legislative and judicial trends and events. While management believes that its recorded best estimate of the Company s ultimate net liability for losses and loss adjustment expenses is a reasonable provision as of December 31, 2016, no estimate of ultimate losses and loss adjustment expenses can be considered accurate with certainty. The relatively recent practice known as Assignment of Benefits ( AOB ), and associated litigation, are an example of emerging trends that introduce additional uncertainty into the estimation of the ultimate net liability for losses and loss adjustment expenses. An AOB is an assignment of the insured s rights under an insurance contract to a third party. Typically, an insured assigns the insurance benefits to a vendor whose incentive is to maximize the cost of repairs. The AOB vendors invoice, as well as invoices for additional services not covered by the AOB, often exceed what the Company considers to be reasonable, resulting in a greater likelihood of litigation and defense costs, as well as higher average loss severities. In addition, the the direct solicitation of insureds by attorneys also increases the likelihood of litigation. Continued emerging AOB and litigation trends in the marketplace, as well as future legislative and judicial trends associated with AOB, introduce greater uncertainty with respect to estimating the ultimate liability for losses and loss adjustment expenses. The ultimate net liability for losses and loss adjustment expenses is necessarily based on assumptions and estimates. Management believes the recorded liability in the accompanying statutory financial statements as of December 31, 2016, is adequate; however, the ultimate net liability may exceed, or be less than, the amount provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed and any adjustments are reflected in the period determined. (12) The Company capitalizes computer equipment and office furniture and equipment. The threshold for capitalization is $1,000. Such property is stated at cost, net of accumulated depreciation. Office furniture and equipment are a non-admitted asset in the accompanying statutory financial statements. Depreciation is recorded over the useful life of the asset in accordance with the relevant guidance in the Accounting Practices & Procedures Manual. There was no change in the Company s capitalization policy in (13) 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 The Company has reclassified in the prior year columns $707,056 from Liabilities, Surplus and Other Funds line 6, Taxes, licenses and fees, to the Assets page line 18.1, Current federal and foreign income tax recoverable and interest thereon. The net effect of this reclass was to reduce prior year's total assets and liabilities by $707,056. There was no impact on prior year's reported net income or capital and surplus. This reclassification is being made at the request of the Office. Note 3 Business Combinations and Goodwill Note 4 Discontinued Operations Note 5 Investments A. Mortgage Loans, including Mezzanine Real Estate Loans B. Debt Restructuring C. Reverse Mortgages D. Loan-Backed Securities (1) Prepayment assumptions are obtained from Bloomberg market data and the Company s investment manager s own internal estimates. (2) (3) (4) All impaired securities (estimated fair value is less than cost or amortized cost) for which am other-than-temporary impairment has not been recognized in earnings as a realized loss (including securities with a recognized other-than-temporary impairment for non-interest related declines when a non-recognized interest related impairment remains): a. Aggregate amount of unrealized loss 1. Less than 12 months $55, months or greater

16 NOTES TO FINANCIAL STATEMENTS b. Aggregate fair value of securities with unrealized loss 1. Less than 12 months $4,353, months or greater 40,280 (5) All impaired loan-backed and structured securities are regularly reviewed for other than temporary declines in estimated fair value. Factors considered in evaluating whether an impairment is other than temporary include the amount of impairment, the length of time a security has been impaired and the reasons for the impairment, i.e. interest rate or credit related. Assessments include judgments about the obligor s or guarantor s current and projected financial position, projected ability to service and repay its debt obligations, the existence and realizable value of any collateral backing the obligations, as well as macro and micro-economic factors related to specific industries and issuers. Estimating the future cash flows of loan-backed securities involves assumptions regarding the underlying collateral, such as prepayment and default rates, existences of subordinated classes capable of absorbing losses, and third party servicing capabilities. Based on the preceding factors, no write downs for other than temporary declines in estimated fair value of loan-backed and structured securities, or any other investments, were recorded during E. Repurchase Agreements and/or Securities Lending F. Write Downs for Impairments of Real Estate G. Low Income Housing Tax Credits H. Restricted Assets The Company had $371,743 of cash on deposit with the State of Florida as of December 31, I. Working Capital Finance Investments J. Offsetting and Netting of Assets and Liabilities K. Structured Note L. 5* Securities Note 6 Joint Ventures, Partnerships and Limited Liability Companies Note 7 Investment Income A. Accrued Investment Income The Company does not admit accrued investment income amounts that are over 90 days past due. B. Amounts Nonadmitted Note 8 Derivative Instruments Note 9 Income Taxes A. Deferred Tax Assets/(Liabilities) (1) Components of Net Deferred Tax Asset/(Liability) 14.2

17 Annual Statement for the year 2016 of the NOTES TO FINANCIAL STATEMENTS (2) Admission Calculation Components (3) Other Admissibility Criteria (4) Impact of Tax Planning Strategies B. a. Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by character as a percentage. b. Does the Company s tax planning strategies include the use of reinsurance: No Deferred Tax Liabilities Not Recognized None C. Current and Deferred Income Taxes (1) Current Income Tax (2) Deferred Taxes 14.3

18 NOTES TO FINANCIAL STATEMENTS (3) Deferred Tax Liabilities (4) Net Deferred Tax Assets D. Reconciliation of Federal Income Tax Rate to Actual Effective Tax Rate The more significant items causing a difference between the statutory Federal income tax rate and the Company s actual effective income tax rate were as follows for the year end December 31, E. Operating Loss and Tax Credit Carryforwards and Protective Tax Deposits The Company did not have any unused operating loss carryforwards to offset against future taxable income at December 31, 2016, The following is income tax expense for 2016 and 2015 that is available for recoupment in the event of future net losses: Year Amount 2016 $ ,878 F. The Company s Federal income tax return is consolidated with the following entities: Gemini Financial Holdings Corporation Gemini Financial Services Corporation Olympus MGA Corporation Technology Enhanced Claims Handling, Inc. Radiant Insurance Agency Radiant Holdings Corporation Radiant Insurance Agency Radiant Holdings Corporation Radiant Ltd LLC Buildpay LLC The method of allocation among the companies is subject to a written agreement approved by the Board of Directors. Under the terms of the agreement, allocation is made primarily on s separate return basis with current credit for any net operating losses or other items utilized in the consolidated tax return. G. Federal or Foreign Income Tax Loss Contingencies The Company does not have any tax loss contingencies for which it is reasonably possible that the total tax liability will significantly increase in the next 12 months. Note 10 Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties A. Nature of Relationships The Company is one of several wholly-owned subsidiaries of Gemini Financial Holdings Corporation, which in turn is a wholly-owned subsidiary of Gemini Financial 14.4