Financial Statements. For the period ended September 30, (Unaudited)

Financial Statements For the period ended September 30, 2013 (Unaudited)

Table of contents September 30, 2013 Summary of financial results - (unaudited) 1 Consolidated financial statements - (unaudited) Statutory consolidated statements of admitted assets, liabilities and accumulated surplus 3 Statutory consolidated statements of operations 4 Comparative financial statements - (unaudited) Statutory comparative statements of admitted assets, liabilities and accumulated surplus 5 Statutory comparative statements of operations 6 Statutory comparative statements of operations PLA 7 Statutory comparative statements of operations CLA 8 Statutory comparative statements of operations COASTAL 9 Statutory comparative administrative expenses schedule 10 Budgetary analysis - (unaudited) Statutory statements of operations 11 Statutory statements of operations PLA 12 Statutory statements of operations CLA 13 Statutory statements of operations COASTAL 14 Statutory comparative administrative expenses schedule 15 GAAP analysis - (unaudited) GAAP consolidated statement of net assets 16 GAAP consolidated statement of revenues, expenses and 17 changes in net assets Reconciliation of STAT to GAAP 18 Adjusted GAAP total net assets - (unaudited) 19

1 Summary of financial results - statutory basis (unaudited) September 30, 2013 Key Financial Data (in millions) Consolidated Actual YTD Consolidated Budget YTD Amount Percent Amount Percent Consolidated Actual Prior YTD Fav/(Unfav) Fav/(Unfav) Fav/(Unfav) Fav/(Unfav) Direct written premiums $ 2,222.8 $ 2,544.3 $ 2,555.9 $ (321.5) -13% (333.1) -13% Ceded written premiums to:.variance from budget..variance from prior year Takeout companies (159.5) (100.9) (62.3) (58.6) -58% (97.2) -156% FHCF (435.0) (475.0) (487.8) 40.0 8% 52.8 11% Private reinsurers (281.2) (327.1) (271.1) 45.9 14% (10.1) -4% Net written premiums $ 1,347.1 $ 1,641.3 $ 1,734.7 $ (294.2) -18% $ (387.6) -22% Net earned premiums $ 1,473.0 $ 1,647.4 $ 1,758.5 $ (174.4) -11% $ (285.5) -16% Losses incurred $ 436.6 $ 715.4 $ 752.6 $ 278.8 39% $ 316.0 42% LAE incurred 179.6 202.7 202.0 23.1 11% 22.4 11% Net underwriting income $ 489.1 $ 321.3 $ 378.6 $ 167.8 52% $ 110.5 29% Net Income (loss) $ 492.0 $ 293.6 $ 397.3 $ 198.4 68% $ 94.7 24% Cash and invested assets $ 14,654.5 $ 14,797.2 $ (142.7) -1% Loss and LAE reserves 1,341.0 1,419.1 78.1 6% Ending surplus (deficit) $ 6,808.6 $ 6,295.2 $ 513.4 8% Policy Data Policies in-force 1,222,166 1,249,213 1,476,942 (27,047) -2% (254,776) -17% Polices serviced 1,373,837 1,342,963 1,561,281 30,874 2% (187,444) -12% Key Underwriting Ratios Loss Ratio 30% 43% 43% 13% 30% 13% 30% LAE Ratio 12% 12% 11% 0% 0% -1% -9% Expense Ratio (based on DWP) 17% 16% 17% -1% -6% 0% 0% Combined Ratio 59% 71% 71% 12% 17% 12% 17% Direct Loss Ratio - PLA only 34% 50% 16% 32% Direct Loss Ratio (sinkhole) 155% 430% 275% 64% Direct Loss Ratio (ex-sinkhole) 30% 37% 7% 19%

2 Summary of financial results - statutory basis (unaudited) September 30, 2013 Key Financial Data (in millions) YTD Actual YTD Budget Prior YTD Actual PLA CLA COASTAL PLA CLA COASTAL PLA CLA COASTAL Direct written premiums $ 1,109.8 $ 147.7 $ 965.3 $ 1,343.2 $ 159.6 $ 1,041.5 $ 1,390.5 $ 155.3 $ 1,010.1 Ceded written premiums to: Takeout companies (106.2) - (53.3) (91.1) - (9.8) (58.7) - (3.6) FHCF (160.0) (35.0) (240.0) (160.0) (35.0) (280.0) (187.8) (30.0) (270.0) Private reinsurers (16.2) - (265.0) - - (327.1) - - (271.1) Net written premiums $ 827.4 $ 112.7 $ 407.0 $ 1,092.1 $ 124.6 $ 424.6 $ 1,144.0 $ 125.3 $ 465.4 Net earned premiums $ 879.6 $ 123.3 $ 470.1 $ 1,021.1 $ 126.4 $ 499.9 $ 1,114.2 $ 131.1 $ 513.2 Losses incurred $ 335.8 $ 21.6 $ 79.3 $ 580.8 $ 27.0 $ 107.7 $ 622.5 $ 28.9 $ 101.2 LAE incurred 119.6 13.6 46.4 152.2 7.3 43.2 154.1 7.7 40.2 Net underwriting income $ 239.2 $ 60.4 $ 189.5 $ 80.5 $ 60.2 $ 180.6 $ 113.5 $ 64.5 $ 200.6 Net Income (loss) $ 251.0 $ 74.8 $ 166.2 $ 99.0 $ 71.6 $ 123.0 $ 142.6 $ 83.8 $ 170.9 Cash and invested assets $ 5,156.4 $ 1,849.7 $ 7,648.4 $ 5,111.6 $ 1,778.1 $ 7,907.6 Loss and LAE reserves 979.8 164.5 196.7 1,083.6 144.7 190.8 Ending surplus (deficit) $ 2,262.9 $ 1,421.3 $ 3,124.4 $ 2,008.9 $ 1,343.4 $ 2,942.9 Policy Data Policies in-force 797,305 7,727 417,134 803,030 8,237 437,946 1,006,198 8,308 462,436 Polices serviced 915,258 7,727 450,852 889,280 8,237 445,446 1,084,538 8,308 468,435 Key Underwriting Ratios Loss Ratio 38% 17% 17% 57% 21% 22% 56% 22% 20% LAE Ratio 14% 11% 10% 15% 6% 9% 14% 6% 8% Expense Ratio (based on DWP) 17% 19% 16% 15% 20% 16% 16% 19% 17% Combined Ratio 69% 47% 43% 87% 47% 47% 86% 47% 45%

Consolidated Financial Statements

3 Statements of admitted assets, liabilities and accumulated surplus - statutory basis (unaudited) September 30, 2013 Consolidated PLA CLA COASTAL Assets Cash and invested assets $ 14,654,511,062 $ 5,156,423,457 $ 1,849,683,100 $ 7,648,404,505 Premium receivable, net 176,575,926 80,507,479 5,232,713 90,835,734 Due from takeout companies 28,283,595 10,843,326-17,440,269 Reinsurance recoverable 2,774,175 2,268,094-506,081 Edp equipment, net 7,381,796 7,381,796 - - Accrued investment income 77,683,701 22,783,865 6,199,996 48,699,840 Other assets 101,056 91,798-9,258 Due from investment broker 27,667,170 8,534,044 12,609,256 6,523,870 Inter-account receivable (payable) 67,512 103,668,814 (21,014,194) (82,587,108) Assessment receivables 216,080,695 9,887,301 5,407,189 200,786,205 Total assets $ 15,191,126,688 $ 5,402,389,974 $ 1,858,118,060 $ 7,930,618,654 Liabilities Loss reserves $ 1,051,368,161 $ 771,019,417 $ 128,747,781 $ 151,600,963 Loss expense reserves 289,641,212 208,772,888 35,757,001 45,111,323 Retroactive reinsurance reserves (4,168,514) (3,794,777) - (373,737) Unearned premiums, net 1,146,806,893 637,134,871 82,068,114 427,603,908 Unearned assessment income 65,214,282 - - 65,214,282 Reinsurance premiums payable 488,667,698 97,939,755 24,251,961 366,475,982 Funds held under reinsurance treaties 2,325 - - 2,325 Provision for reinsurance 2,046,705 1,942,153-104,552 Advance premiums & suspended cash 83,286,784 43,900,502 3,636,921 35,749,361 Notes payable 5,005,192,762 1,252,423,296 143,812,262 3,608,957,204 Interest payable 70,492,631 16,572,284 1,902,949 52,017,398 Taxes and fees payable 14,073,314 7,742,787 1,030,617 5,299,910 Due to investment broker 57,597,496 21,984,074 12,906,457 22,706,965 Other liabilities 112,351,306 83,824,272 2,731,033 25,796,001 Total liabilities $ 8,382,573,055 3,139,461,522 436,845,096 4,806,266,437 Accumulated surplus Unrestricted surplus 6,787,667,306 2,262,928,452 1,421,272,964 3,103,465,890 Restricted surplus 20,886,327 - - 20,886,327 Ending surplus (deficit) 6,808,553,633 2,262,928,452 1,421,272,964 3,124,352,217 Total liabilities & surplus (deficit) $ 15,191,126,688 $ 5,402,389,974 $ 1,858,118,060 $ 7,930,618,654

4 Statements of operations - statutory basis (unaudited) As of September 30, 2013 Consolidated PLA CLA COASTAL Net earned premiums: Direct earned premiums $ 2,249,884,895 $ 1,200,575,491 $ 146,593,491 $ 902,715,913 Ceded earned premiums (776,880,077) (320,946,479) (23,333,333) (432,600,265) Net earned premiums 1,473,004,818 879,629,012 123,260,158 470,115,648 Underwriting expense: Losses incurred $ 436,638,179 $ 335,753,063 $ 21,552,791 $ 79,332,325 Loss adjustment expense incurred 179,588,114 119,561,591 13,618,071 46,408,452 Producer commissions 180,633,994 79,282,707 16,540,481 84,810,806 Ceded commissions - - - - Taxes and assessments 42,006,258 21,656,665 2,995,729 17,353,864 Administrative and other underwriting 145,065,438 84,188,221 8,144,908 52,732,309 Total underwriting expenses 983,931,983 640,442,247 62,851,980 280,637,756 Net underwriting income $ 489,072,835 $ 239,186,765 $ 60,408,178 $ 189,477,892 Other income (expense) Investment income $ 140,208,430 $ 44,631,928 $ 17,574,315 $ 78,002,187 Interest expense (152,269,811) (26,648,108) (3,059,927) (122,561,776) Financing costs - - - - Takeout bonuses - - - - Assessment income 19,836,936 - - 19,836,936 Other income and expense (4,849,240) (6,172,789) (129,293) 1,452,842 Total other income (expense) 2,926,315 11,811,031 14,385,095 (23,269,811) Net income (loss) $ 491,999,150 $ 250,997,796 $ 74,793,273 $ 166,208,081

Comparative Financial Statements

5 Statutory statements of admitted assets, liabilities and accumulated surplus - comparative (unaudited) Consolidated PLA / CLA / COASTAL September 30, 2013 December 31, 2012 Variance Assets Cash and invested assets $ 14,654,511,062 $ 14,797,187,898-1% Premium receivable, net 176,575,926 178,230,651-1% Due from takeout companies 28,283,595 18,407,148 54% Reinsurance recoverable 2,774,175 (4,348,717) 164% Edp equipment, net 7,381,796 9,808,284-25% Accrued investment income 77,683,701 88,285,945-12% Other assets 101,056 1,302,877-92% Due from investment broker 27,667,170-100% Inter-account receivable (payable) 67,512 58,296 16% Assessment receivables 216,080,695 354,287,091-39% Total assets $ 15,191,126,688 $ 15,443,219,473-2% Liabilities Loss reserves $ 1,051,368,161 $ 1,140,376,987-8% Loss expense reserves 289,641,212 278,678,186 4% Retroactive reinsurance reserves (4,168,514) - -100% Unearned premiums, net 1,146,806,893 1,272,645,451-10% Unearned assessment income 65,214,282 85,051,218-23% Reinsurance premiums payable 488,667,698 189,533,501 158% Funds held under reinsurance treaties 2,325 2,667-13% Provision for reinsurance 2,046,705 2,046,705 0% Advance premiums & suspended cash 83,286,784 85,824,225-3% Notes payable 5,005,192,762 5,910,316,098-15% Interest payable 70,492,631 31,771,747 122% Taxes and fees payable 14,073,314 5,988,763 135% Due to investment broker 57,597,496 23,653,641 144% Other liabilities 112,351,306 122,173,560-8% Total liabilities 8,382,573,055 9,148,062,749-8% Accumulated surplus Unrestricted surplus 6,787,667,306 6,284,044,272 8% Restricted surplus 20,886,327 11,112,452 88% Ending surplus (deficit) 6,808,553,633 6,295,156,724 8% Total liabilities & surplus (deficit) $ 15,191,126,688 $ 15,443,219,473-2%

6 Statutory statements of operations - comparative (unaudited) PLA / CLA / COASTAL Year to Date September 30, 2013 September 30, 2012 Variance Net earned premiums: Direct earned premiums $ 2,249,884,895 $ 2,333,383,898-4% Ceded earned premiums (776,880,077) (574,861,408) -35% Net earned premiums 1,473,004,818 1,758,522,490-16% Underwriting expense: Losses incurred 436,638,179 752,592,947-42% Loss adjustment expense incurred 179,588,114 202,046,993-11% Producer commissions 180,633,994 205,591,327-12% Ceded commissions - 4,388,573-100% Taxes and assessments 42,006,258 48,498,668-13% Administrative and other underwriting 145,065,438 166,842,925-13% Total underwriting expenses 983,931,983 1,379,961,433-29% Net underwriting income 489,072,835 378,561,057 29% Other income (expense) Investment income 140,208,430 140,681,627 0% Interest expense (152,269,811) (144,260,931) -6% Financing costs - (8,405,108) 100% Takeout bonuses - 43,103-100% Assessment income 19,836,936 23,943,430-17% Other income and expense (4,849,240) 6,725,228-172% Total other income (expense) 2,926,315 18,727,349-84% Net income (loss) $ 491,999,150 $ 397,288,406 24%

7 Statutory statements of operations - comparative (unaudited) Year to Date PLA September 30, 2013 September 30, 2012 Variance Net earned premiums: Direct earned premiums $ 1,200,575,491 $ 1,302,516,953-8% Ceded earned premiums (320,946,479) (188,365,190) -70% Net earned premiums 879,629,012 1,114,151,763-21% Underwriting expense: Losses incurred 335,753,063 622,548,352-46% Loss adjustment expense incurred 119,561,591 154,089,387-22% Producer commissions 79,282,707 98,980,115-20% Ceded commissions - 3,815,916-100% Taxes and assessments 21,656,665 27,147,845-20% Administrative and other underwriting 84,188,221 94,106,860-11% Total underwriting expenses 640,442,247 1,000,688,475-36% Net underwriting income (loss) 239,186,765 113,463,288 111% Other income (expense) Investment income 44,631,928 42,658,301 5% Interest expense (26,648,108) (10,085,954) -164% Financing costs - (7,507,443) 100% Take-out bonuses - 43,103-100% Assessment income - - 0% Other income and expense (6,172,789) 4,044,179-253% Total other income (expense) 11,811,031 29,152,186-59% Net income (loss) $ 250,997,796 $ 142,615,474 76%

8 Statutory statements of operations - comparative (unaudited) Year to Date CLA September 30, 2013 September 30, 2012 Variance Net earned premiums: Direct earned premiums $ 146,593,491 $ 151,143,869-3% Ceded earned premiums (23,333,333) (20,000,000) -17% Net earned premiums 123,260,158 131,143,869-6% Underwriting expense: Losses incurred 21,552,791 28,855,796-25% Loss adjustment expense incurred 13,618,071 7,746,564 76% Producer commissions 16,540,481 17,589,750-6% Ceded commissions - - 0% Taxes and assessments 2,995,729 3,153,159-5% Administrative and other underwriting 8,144,908 9,297,391-12% Total underwriting expenses 62,851,980 66,642,660-6% Net underwriting income (loss) 60,408,178 64,501,209-6% Other income (expense) Investment income 17,574,315 21,017,680-16% Interest expense (3,059,927) (1,205,978) -154% Financing costs - (897,665) 100% Take-out bonuses - - 0% Assessment income - - 0% Other income and expense (129,293) 401,754-132% Total other income (expense) 14,385,095 19,315,791-26% Net income (loss) $ 74,793,273 $ 83,817,000-11%

9 Statutory statements of operations - comparative (unaudited) Year to Date COASTAL September 30, 2013 September 30, 2012 Variance Net earned premiums: Direct earned premiums $ 902,715,913 $ 879,723,076 3% Ceded earned premiums (432,600,265) (366,496,218) -18% Net earned premiums 470,115,648 513,226,858-8% Underwriting expense: Losses incurred 79,332,325 101,188,799-22% Loss adjustment expense incurred 46,408,452 40,211,042 15% Producer commissions 84,810,806 89,021,462-5% Ceded commissions - 572,657-100% Taxes and assessments 17,353,864 18,197,664-5% Administrative and other underwriting 52,732,309 63,438,674-17% Total underwriting expenses 280,637,756 312,630,298-10% Net underwriting income (loss) 189,477,892 200,596,560-6% Other income (expense) Investment income 78,002,187 77,005,646 1% Interest expense (122,561,776) (132,968,999) 8% Financing costs - - 0% Take-out bonuses - - 0% Assessment income 19,836,936 23,943,430-17% Other income and expense 1,452,842 2,279,295-36% Total other income (expense) (23,269,811) (29,740,628) 22% Net income (loss) $ 166,208,081 $ 170,855,932-3%

10 Statutory comparative administrative and other expenses (unaudited) Year to Date All departments September 30, 2013 September 30, 2012 Variance Salaries $ 57,547,209 $ 56,325,043 2% Employee benefits 12,250,594 12,107,684 1% Payroll taxes 4,580,700 4,631,182-1% Temporary services 4,159,675 7,252,111-43% Other underwriting fees 8,426,592 31,534,297-73% Other processing fees 1,049,246 1,078,399-3% Training 263,523 462,798-43% Recruiting 587,094 569,230 3% Printing 4,845,905 4,858,337 0% Office supplies 728,037 1,867,950-61% Subscriptions & dues 824,816 778,749 6% Postage 4,589,268 6,121,989-25% Telecommunications 3,185,755 3,155,764 1% Legal 739,101 629,083 17% Insurance 534,148 432,817 23% Travel & meals 996,935 1,470,821-32% Servicing carrier fees 7,007,496 7,788,572-10% Professional consulting 28,745,013 26,159,366 10% Miscellaneous (123,652) (22,490) -450% Rent - facilities 5,923,806 5,520,313 7% Rent - ofc equip & furn 1,043,877 414,081 152% Depreciation 4,817,853 2,889,209 67% Producer fees collected (497,051) (460,082) -8% Maintenance & repairs 1,531,809 1,494,031 3% Bank charges 240,788 255,969-6% Software maint & licensing 11,061,349 9,847,257 12% FMAP funding (192,184) (194,705) 1% ULAE expense allocation (19,802,264) (20,124,850) 2% Total admin and other $ 145,065,438 $ 166,842,925-13% Capital acquisitions $ 1,212,115 $ 4,835,279-75% Total expenditures $ 146,277,553 $ 171,678,204-15% Employee count 1,149 1,161-1%

Budgetary Analysis

11 Statements of operations - statutory basis (unaudited) Month ended September 30, 2013 PLA / CLA / COASTAL Actual Year to Date Budget Favorable (Unfavorable) Net earned premiums: Direct earned premiums $ 2,249,884,895 $ 2,450,388,582-8% Ceded earned premiums (776,880,077) (802,949,444) 3% Net earned premiums 1,473,004,818 1,647,439,138-11% Underwriting expense: Losses incurred 436,638,179 715,421,183 39% Loss adjustment expense incurred 179,588,114 202,673,768 11% Producer commissions 180,633,994 209,443,274 14% Ceded commissions - - 0% Taxes and assessments 42,006,258 40,089,318-5% Administrative and other underwriting 145,065,438 158,550,044 9% Total underwriting expenses 983,931,983 1,326,177,587 26% Net underwriting income (loss) 489,072,835 321,261,551 52% Other income (expense) Investment income 140,208,430 114,145,211 23% Interest expense (152,269,811) (163,469,061) 7% Financing costs - (3,259,536) 100% Take-out bonuses - - 0% Assessment income 19,836,936 19,836,936 0% Other income and expense (4,849,240) 5,092,370-195% Total other income (expense) 2,926,315 (27,654,080) 111% Net income (loss) $ 491,999,150 $ 293,607,471 68%

12 Statutory statements of operations - budget to actual (unaudited) Month ended September 30, 2013 PLA Actual Year to Date Budget Favorable (Unfavorable) Net earned premiums: Direct earned premiums $ 1,200,575,491 $ 1,366,416,639-12% Ceded earned premiums (320,946,479) (345,288,579) 7% Net earned premiums 879,629,012 1,021,128,060-14% Underwriting expense: Losses incurred 335,753,063 580,814,284 42% Loss adjustment expense incurred 119,561,591 152,173,343 21% Producer commissions 79,282,707 96,531,127 18% Ceded commissions - - 0% Taxes and assessments 21,656,665 21,887,255 1% Administrative and other underwriting 84,188,221 89,228,887 6% Total underwriting expenses 640,442,247 940,634,896 32% Net underwriting income (loss) 239,186,765 80,493,164 197% Other income (expense) Investment income 44,631,928 42,594,684 5% Interest expense (26,648,108) (26,743,222) 0% Financing costs - - 0% Take-out bonuses - - 0% Assessment income - - 0% Other income and expense (6,172,789) 2,688,366-330% Total other income (expense) 11,811,031 18,539,828-36% Net income (loss) $ 250,997,796 $ 99,032,992 153%

13 Statutory statements of operations - budget to actual (unaudited) Month ended September 30, 2013 Year to Date CLA Actual Budget Favorable (Unfavorable) Net earned premiums: Direct earned premiums $ 146,593,491 $ 149,739,024-2% Ceded earned premiums (23,333,333) (23,333,333) 0% Net earned premiums 123,260,158 126,405,691-2% Underwriting expense: Losses incurred 21,552,791 26,953,024 20% Loss adjustment expense incurred 13,618,071 7,331,222-86% Producer commissions 16,540,481 18,323,257 10% Ceded commissions - - 0% Taxes and assessments 2,995,729 2,712,381-10% Administrative and other underwriting 8,144,908 10,917,169 25% Total underwriting expenses 62,851,980 66,237,053 5% Net underwriting income (loss) 60,408,178 60,168,638 0% Other income (expense) Investment income 17,574,315 14,342,283 23% Interest expense (3,059,927) (3,226,216) 5% Financing costs - - 0% Take-out bonuses - - 0% Assessment income - - 0% Other income and expense (129,293) 319,520-140% Total other income (expense) 14,385,095 11,435,587 26% Net income (loss) $ 74,793,273 $ 71,604,225 4%

14 Statutory statements of operations - budget to actual (unaudited) Month ended September 30, 2013 Year to Date COASTAL Actual Budget Favorable (Unfavorable) Net earned premiums: Direct earned premiums $ 902,715,913 $ 934,232,919-3% Ceded earned premiums (432,600,265) (434,327,532) 0% Net earned premiums 470,115,648 499,905,387-6% Underwriting expense: Losses incurred 79,332,325 107,653,875 26% Loss adjustment expense incurred 46,408,452 43,169,203-8% Producer commissions 84,810,806 94,588,890 10% Ceded commissions - - 0% Taxes and assessments 17,353,864 15,489,682-12% Administrative and other underwriting 52,732,309 58,403,988 10% Total underwriting expenses 280,637,756 319,305,638 12% Net underwriting income (loss) 189,477,892 180,599,749 5% Other income (expense) Investment income 78,002,187 57,208,244 36% Interest expense (122,561,776) (133,499,623) 8% Financing costs - (3,259,536) 100% Take-out bonuses - - 0% Assessment income 19,836,936 19,836,936 0% Other income and expense 1,452,842 2,084,484-30% Total other income (expense) (23,269,811) (57,629,495) 60% Net income (loss) $ 166,208,081 $ 122,970,254 35%

15 Administrative and other expenses - statutory basis (unaudited) Month ended September 30, 2013 Actual Year to Date Budget Favorable (Unfavorable) Salaries $ 57,547,209 $ 57,734,683 0% Employee benefits 12,250,594 11,795,762-4% Payroll taxes 4,580,700 4,864,053 6% Temporary services 4,159,675 4,510,800 8% Other underwriting fees 8,426,592 12,268,766 31% Other processing fees 1,049,246 1,219,266 14% Training 263,523 518,313 49% Recruiting 587,094 265,312-121% Printing 4,845,905 5,104,338 5% Office supplies 728,037 983,711 26% Subscriptions & dues 824,816 771,472-7% Postage 4,589,268 6,229,377 26% Telecommunications 3,185,755 2,775,247-15% Legal 739,101 680,631-9% Insurance 534,148 592,650 10% Travel & meals 996,935 1,532,166 35% Servicing carrier fees 7,007,496 6,838,493-2% Professional consulting 28,745,013 37,939,915 24% Miscellaneous (123,652) 28,949 527% Rent - facilities 5,923,806 6,564,747 10% Rent - ofc equip & furn 1,043,877 1,142,836 9% Depreciation 4,817,853 4,973,914 3% Producer fees collected (497,051) (837,750) -41% Maintenance & repairs 1,531,809 1,508,500-2% Bank charges 240,788 257,400 6% Software maint & licensing 11,061,349 10,861,554-2% FMAP funding (192,184) (159,259) 21% ULAE expense allocation (19,802,264) (22,415,802) -12% Total admin and other $ 145,065,438 $ 158,550,044 9% Capital acquisitions $ 1,212,115 $ 5,004,825 76% Total expenditures $ 146,277,553 $ 163,554,869 11% Employee count 1,149 1,262 9%

GAAP Financials

16 GAAP Consolidated statements of net assets (unaudited) September 30, 2013 Consolidated PLA CLA COASTAL Assets Cash and investments $ 14,820,237,280 $ 5,185,937,885 $ 1,859,000,457 $ 7,775,298,938 Premium receivable, net 176,575,926 80,507,480 5,232,712 90,835,734 Due from takeout companies 28,283,596 10,843,325-17,440,271 Reinsurance recoverables 2,774,175 2,268,094-506,081 Accrued investment income 77,683,701 22,783,865 6,199,996 48,699,840 Prepaid reinsurance premiums 314,333,507 101,121,786 11,666,667 201,545,054 Deferred policy acquisition costs 146,960,045 68,280,052 12,239,917 66,440,076 Deferred takeout bonus - - - - Deferred financing costs 73,255,749 4,982,069 572,077 67,701,603 Fixed assets, net 12,894,033 12,894,033 - - Other assets 10,681,605 10,672,347-9,258 Due from investment broker 27,667,170 8,534,044 12,609,256 6,523,870 Inter-account receivable (payable) 67,512 103,668,814 (21,014,194) (82,587,108) Assessment receivables 199,812,048 80,735 4,561,065 195,170,248 Total assets $ 15,891,226,347 $ 5,612,574,529 $ 1,891,067,953 $ 8,387,583,865 Liabilities Loss reserves $ 1,051,368,161 $ 771,019,417 $ 128,747,781 $ 151,600,963 Loss expense reserves 289,641,212 208,772,888 35,757,001 45,111,323 Retroactive reinsurance reserves (4,168,514) (3,794,777) - (373,737) Direct unearned premiums 1,461,140,399 738,256,655 93,734,784 629,148,960 Unearned assessment income 77,084,568 - - 77,084,568 Reinsurance premiums payable 488,667,698 97,939,755 24,251,961 366,475,982 Funds held under reinsurance treaties 2,325 - - 2,325 Advance premiums & suspended cash 83,286,784 43,900,502 3,636,921 35,749,361 Notes payable 5,005,192,762 1,252,423,296 143,812,262 3,608,957,204 Interest payable 70,492,631 16,572,284 1,902,949 52,017,398 Taxes and fees payable 14,073,314 7,742,787 1,030,617 5,299,910 Due to investment broker 57,597,496 21,984,074 12,906,457 22,706,965 Other liabilities 112,351,306 83,824,272 2,731,033 25,796,001 Total liabilities 8,706,730,142 3,238,641,153 448,511,766 5,019,577,223 Net assets Invested in capital assets 12,894,033 12,894,033 - - Restricted 20,886,327 - - 20,886,327 Unrestricted 7,150,715,845 2,361,039,343 1,442,556,187 3,347,120,315 Total net assets 7,184,496,205 2,373,933,376 1,442,556,187 3,368,006,642 Total liabilities and net assets $ 15,891,226,347 $ 5,612,574,529 $ 1,891,067,953 $ 8,387,583,865

17 GAAP consolidated statements of revenues, expenses and change in net assets (unaudited) As of September 30, 2013 Consolidated PLA CLA COASTAL Operating revenue: Premiums earned $ 1,473,004,818 $ 879,629,012 $ 123,260,158 $ 470,115,648 Operating expenses: Losses incurred 436,638,179 335,753,063 21,552,791 79,332,325 Loss adjustment expense incurred 179,588,114 119,561,591 13,618,071 46,408,452 Producer commissions, net 171,835,383 80,577,996 16,507,944 74,749,443 Taxes and assessments 40,804,155 22,099,922 2,991,080 15,713,153 Administrative and other underwriting 152,287,130 87,643,461 8,167,550 56,476,119 Total operating expenses 981,152,961 645,636,033 62,837,436 272,679,492 Operating income 491,851,857 233,992,979 60,422,722 197,436,156 Non-operating revenues (expenses): Investments income 68,665,017 18,814,056 3,726,692 46,124,269 Interest expense (164,810,582) (26,648,108) (3,059,927) (135,102,547) Financing costs (4,931,490) (1,219,692) (169,468) (3,542,330) Takeout bonuses - - - - Assessment Income 42,115,126 5,439,934 976,219 35,698,973 Other income and expense (6,318,643) (6,471,404) (153,961) 306,722 Total non-operating revenues (65,280,572) (10,085,214) 1,319,555 (56,514,913) Gain from operations 426,571,285 223,907,765 61,742,277 140,921,243 Federal income tax benefit - - - - Change in net assets $ 426,571,285 $ 223,907,765 $ 61,742,277 $ 140,921,243

18 Reconciliation of STAT to GAAP (unaudited) As of September 30, 2013 Consolidated PLA CLA COASTAL Net income - Statutory Basis $ 491,999,150 $ 250,997,796 $ 74,793,273 $ 166,208,081 Adjustments: Change in deferred policy acquisition costs 2,779,023 (5,193,784) 14,543 7,958,264 Change in deferred financing costs (17,472,260) (1,219,692) (169,468) (16,083,100) Change in deferred takeout bonuses - - - - Change in allowance for doubtful accounts (1,469,403) (298,617) (24,667) (1,146,119) Change in unearned assessment income 10,787,762 - - 10,787,762 Change in 2012 FIGA assessment income 11,490,427 5,439,934 976,219 5,074,274 Change in unrealized gain (loss) on investments (71,543,414) (25,817,872) (13,847,623) (31,877,919) Change in net assets - GAAP $ 426,571,285 $ 223,907,765 $ 61,742,277 $ 140,921,243 Consolidated PLA CLA COASTAL Accumulated surplus - Statutory Basis $ 6,808,553,633 $ 2,262,928,452 $ 1,421,272,964 $ 3,124,352,217 Adjustments: Deferred policy acquisition costs 146,960,045 68,280,052 12,239,917 66,440,076 Deferred financing costs 73,255,749 4,982,069 572,077 67,701,603 Deferred takeout bonuses - - - - Unrealized gain (loss) on investments 100,614,455 18,676,927 7,064,665 74,872,863 Statutory non-admitted assets other than premium 81,204,551 26,930,289 2,252,688 52,021,574 Unrealized assessment income change (11,870,286) - - (11,870,286) 2012 FIGA assessment income change (16,268,647) (9,806,566) (846,124) (5,615,957) Statutory provision for reinsurance-sch F penalty 2,046,705 1,942,153-104,552 Total net assets - GAAP $ 7,184,496,205 $ 2,373,933,376 $ 1,442,556,187 $ 3,368,006,642

19 Adjusted GAAP total net assets per 16(L) of the Plan of Operations (unaudited)* As of September 30, 2013 Consolidated PLA CLA COASTAL GAAP total net assets $ 7,184,496,205 $ 2,373,933,376 $ 1,442,556,187 $ 3,368,006,642 Deferred takeout bonus - - - - Deferred financing costs (73,255,749) (4,982,069) (572,077) (67,701,603) Net assets related to pre-event notes (41,943,810) (18,076,957) (3,863,808) (20,003,045) Restricted cash - FSLSO (20,886,327) - - (20,886,327) Adjusted GAAP total net assets $ 7,048,410,319 $ 2,350,874,350 $ 1,438,120,302 $ 3,259,415,667 * GAAP for purposes of assessment calculation