Financial Statements. For the year ended March 31, (Unaudited)

Financial Statements For the year ended March 31, 2012 (Unaudited)

Table of contents March 31, 2012 Summary of financial results - (unaudited) 1 Consolidated financial statements - (unaudited) Statutory consolidated statement of admitted assets, liabilities and accumulated surplus 3 Statutory consolidated statement of operations 4 Comparative financial statements - (unaudited) Statutory comparative statement of admitted assets, liabilities and accumulated surplus 5 Statutory comparative statement of operations 6 Statutory comparative statement of operations PLA 7 Statutory comparative statement of operations CLA 8 Statutory comparative statement of operations COASTAL 9 Statutory comparative administrative expenses schedule 10 Budgetary analysis - (unaudited) Statutory statement of operations 11 Statutory statement of operations PLA 12 Statutory statement of operations CLA 13 Statutory statement 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) March 31, 2012 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 $ 735.9 $ 768.7 $ 668.7 $ (32.8) -4% 67.2 10% Ceded written premiums to:.variance from budget..variance from prior year Takeout companies (46.3) (8.3) (12.9) (38.0) -458% (33.4) -259% FHCF 2.2 - - 2.2 100% 2.2 100% Private reinsurers - - - - 0% - 0% Net written premiums $ 691.8 $ 760.4 $ 655.8 $ (68.6) -9% $ 36.0 5% Net earned premiums $ 751.3 $ 792.5 $ 639.9 $ (41.2) -5% $ 111.4 17% Losses incurred $ 244.5 $ 275.1 $ 222.4 $ 30.6 11% $ (22.1) -10% LAE incurred 64.2 52.9 40.5 (11.3) -21% (23.7) -59% Net underwriting income $ 314.4 $ 331.2 $ 273.2 $ (16.8) -5% $ 41.2 15% Net Income (loss) $ 325.4 $ 324.0 $ 264.6 $ 1.4 0% $ 60.8 23% Cash and invested assets $ 13,076.7 $ 11,721.4 $ 1,355.3 12% Loss and LAE reserves 1,417.5 910.4 (507.1) -56% Ending surplus (deficit) $ 5,918.1 $ 5,375.8 $ 542.3 10% Policy Data Policies in-force 1,439,898 1,528,535 1,317,471 (88,637) -6% 122,427 9% Polices serviced 1,497,535 1,536,729 1,334,665 (39,194) -3% 162,870 12% Key Underwriting Ratios Loss Ratio 33% 35% 35% 2% 6% 2% 6% LAE Ratio 9% 7% 6% -2% -29% -3% -50% Expense Ratio (based on DWP) 17% 17% 16% 0% 0% -1% -6% Combined Ratio 59% 59% 57% 0% 0% -2% -4%

2 Summary of financial results - statutory basis (unaudited) March 31, 2012 Key Financial Data (in millions) YTD Actual YTD Budget Prior YTD Actual PLA CLA COASTAL PLA CLA COASTAL PLA CLA COASTAL Direct written premiums $ 413.2 $ 43.6 $ 279.1 $ 435.2 $ 46.7 $ 286.8 $ 363.5 $ 44.6 $ 260.6 Ceded written premiums to: Takeout companies (44.1) - (2.2) (5.3) - (3.0) (11.1) - (1.8) FHCF 2.2 - - - - - - - - Private reinsurers - - - - - - - - - Net written premiums $ 371.3 $ 43.6 $ 276.9 $ 429.9 $ 46.7 $ 283.8 $ 352.4 $ 44.6 $ 258.8 Net earned premiums $ 409.3 $ 49.9 $ 292.0 $ 411.9 $ 61.6 $ 318.9 $ 316.7 $ 51.0 $ 272.3 Losses incurred $ 204.8 $ 9.7 $ 30.0 $ 230.7 $ 12.3 $ 32.1 $ 164.9 $ 12.0 $ 45.5 LAE incurred 48.1 3.3 12.8 40.1 2.9 9.9 29.3 0.9 10.2 Net underwriting income $ 85.3 $ 28.3 $ 200.8 $ 69.6 $ 37.0 $ 224.7 $ 69.5 $ 30.1 $ 173.6 Net Income (loss) $ 101.3 $ 35.5 $ 188.6 $ 79.2 $ 41.1 $ 203.7 $ 77.5 $ 33.7 $ 153.4 Cash and invested assets $ 3,601.3 $ 1,512.0 $ 7,963.4 $ 3,029.8 $ 1,375.4 $ 7,316.1 Loss and LAE reserves 1,056.4 161.3 199.8 588.3 169.8 152.3 Ending surplus (deficit) $ 1,798.1 $ 1,239.5 $ 2,880.4 $ 1,787.9 $ 1,095.2 $ 2,492.8 Policy Data Policies in-force 973,581 8,347 457,970 1,058,230 7,885 462,420 863,038 8,303 446,130 Polices serviced 1,027,573 8,347 461,615 1,064,268 7,885 464,576 878,076 8,303 448,286 Key Underwriting Ratios Loss Ratio 50% 20% 10% 56% 20% 10% 52% 24% 17% LAE Ratio 12% 7% 4% 10% 5% 3% 9% 2% 4% Expense Ratio (based on DWP) 17% 20% 17% 16% 20% 18% 15% 18% 16% Combined Ratio 79% 47% 31% 82% 45% 31% 76% 44% 37%

Consolidated Financial Statements

3 Statement of admitted assets, liabilities and accumulated surplus - statutory basis (unaudited) March 31, 2012 Consolidated PLA CLA COASTAL Assets Cash and invested assets $ 13,076,712,165 $ 3,601,335,028 $ 1,512,016,919 $ 7,963,360,218 Premium receivable, net 171,456,771 95,370,199 5,714,290 70,372,282 Due from takeout companies 2,913,111 2,581,651-331,460 Reinsurance recoverable 4,934,808 4,311,089-623,719 Edp equipment, net 3,029,308 3,029,308 - - Accrued investment income 72,562,753 12,859,557 5,480,292 54,222,904 Other assets 252,290 245,484-6,806 Due from investment broker 19,123,798 8,545,610 10,578,188 - Inter-account receivable (payable) 67,649 68,637,554 (15,842,040) (52,727,865) Assessment receivables 446,988,962 (1,016,443) 4,573,367 443,432,038 Total assets $ 13,798,041,615 $ 3,795,899,037 $ 1,522,521,016 $ 8,479,621,562 Liabilities Loss reserves $ 1,155,898,187 $ 864,642,288 $ 133,397,723 $ 157,858,176 Loss expense reserves 261,590,399 191,725,674 27,882,104 41,982,621 Unearned premiums, net 1,351,744,295 759,656,039 87,448,337 504,639,919 Unearned assessment income 108,171,469 - - 108,171,469 Reinsurance premiums payable 27,842,710 - - 27,842,710 Funds held under reinsurance treaties 3,548 - - 3,548 Provision for reinsurance 2,664,060 2,414,673-249,387 Advance premiums & suspended cash 136,139,770 74,634,282 4,391,747 57,113,741 Notes payable 4,530,045,273 - - 4,530,045,273 Interest payable 59,688,025 - - 59,688,025 Taxes and fees payable 14,522,448 8,609,571 883,833 5,029,044 Due to investment broker 105,653,589 8,018,606 24,773,059 72,861,924 Other liabilities 125,987,425 88,099,441 4,200,614 33,687,370 Total liabilities $ 7,879,951,198 1,997,800,574 282,977,417 5,599,173,207 Accumulated surplus Beginning surplus (deficit) 5,733,818,548 1,741,434,586 1,211,972,436 2,780,411,526 Restricted surplus 11,643,994 - - 11,643,994 Change in non-admitted assets (151,927,774) (44,649,746) (7,920,249) (99,357,779) Change in provision for reinsurance - - - - Change in net unrealized capital - - - - Change in other (801,340) - - (801,340) Net income 325,356,989 101,313,623 35,491,412 188,551,954 Ending surplus (deficit) 5,918,090,417 1,798,098,463 1,239,543,599 2,880,448,355 Total liabilities & surplus (deficit) $ 13,798,041,615 $ 3,795,899,037 $ 1,522,521,016 $ 8,479,621,562

4 Statement of operations - statutory basis (unaudited) As of March 31, 2012 Consolidated PLA CLA COASTAL Net earned premiums: Direct earned premiums $ 767,684,988 $ 423,757,492 $ 49,944,004 $ 293,983,492 Ceded earned premiums (16,413,731) (14,410,943) - (2,002,788) Net earned premiums 751,271,257 409,346,549 49,944,004 291,980,704 Underwriting expense: Losses incurred $ 244,540,733 $ 204,767,709 $ 9,745,951 $ 30,027,073 Loss adjustment expense incurred 64,242,215 48,138,790 3,344,407 12,759,018 Producer commissions 59,571,043 29,660,468 4,941,118 24,969,457 Ceded commissions 3,295,423 2,829,653-465,770 Taxes and assessments 13,938,691 8,025,803 883,844 5,029,044 Administrative and other underwriting 51,243,312 30,670,208 2,679,880 17,893,224 Total underwriting expenses 436,831,417 324,092,631 21,595,200 91,143,586 Net underwriting income $ 314,439,840 $ 85,253,918 $ 28,348,804 $ 200,837,118 Other income (expense) Investment income $ 45,542,100 $ 14,733,384 $ 7,009,061 $ 23,799,655 Interest expense (45,365,239) - - (45,365,239) Financing costs - - - - Takeout bonuses 43,103 43,103 - - Assessment income 8,541,742 - - 8,541,742 Other income and expense 2,155,443 1,283,218 133,547 738,678 Total other income (expense) 10,917,149 16,059,705 7,142,608 (12,285,164) Net income (loss) $ 325,356,989 $ 101,313,623 $ 35,491,412 $ 188,551,954

Comparative Financial Statements

5 Statutory statements of admitted assets, liabilities and accumulated surplus - comparative (unaudited) Consolidated PLA / CLA / COASTAL March 31, 2012 December 31, 2011 Variance Assets Cash and invested assets $ 13,076,712,165 $ 12,670,596,653 3% Premium receivable, net 171,456,771 181,017,669-5% Due from takeout companies 2,913,111 874,391 233% Reinsurance recoverable 4,934,808 3,130,295 58% Edp equipment, net 3,029,308 2,028,919 49% Accrued investment income 72,562,753 72,830,920 0% Other assets 252,290 2,401,235-89% Due from investment broker 19,123,798-100% Inter-account receivable (payable) 67,649 52,582 29% Assessment receivables 446,988,962 481,302,301-7% Total assets $ 13,798,041,615 $ 13,414,234,965 3% Liabilities Loss reserves $ 1,155,898,187 $ 1,093,917,314 6% Loss expense reserves 261,590,399 252,652,533 4% Unearned premiums, net 1,351,744,295 1,411,230,633-4% Unearned assessment income 108,171,469 116,713,211-7% Reinsurance premiums payable 27,842,710 55,683,887-50% Funds held under reinsurance treaties 3,548 3,548 0% Provision for reinsurance 2,664,060 2,664,060 0% Advance premiums & suspended cash 136,139,770 99,291,432 37% Notes payable 4,530,045,273 4,643,315,600-2% Interest payable 59,688,025 27,479,242 117% Taxes and fees payable 14,522,448 6,477,051 124% Due to investment broker 105,653,589 1,380,677 7552% Other liabilities 125,987,425 115,284,562 9% Total liabilities 7,879,951,198 7,826,093,750 1% Accumulated surplus Beginning surplus (deficit) 5,733,818,548 5,089,807,822 13% Restricted surplus 11,643,994 11,726,079-1% Change in non-admitted assets (151,927,774) 35,023,773-534% Change in provision for reinsurance - 3,000,563-100% Change in net unrealized capital - - 0% Change in other (801,340) (118,148) -578% Net Income 325,356,989 448,701,126-27% Ending surplus (deficit) 5,918,090,417 5,588,141,215 6% Total liabilities & surplus (deficit) $ 13,798,041,615 $ 13,414,234,965 3%

6 Statutory statement of operations - comparative (unaudited) PLA / CLA / COASTAL Year to Date March 31, 2012 March 31, 2011 Variance Net earned premiums: Direct earned premiums $ 767,684,988 $ 649,870,222 18% Ceded earned premiums (16,413,731) (9,947,232) -65% Net earned premiums 751,271,257 639,922,990 17% Underwriting expense: Losses incurred 244,540,733 222,437,846 10% Loss adjustment expense incurred 64,242,215 40,497,639 59% Producer commissions 59,571,043 55,307,614 8% Ceded commissions 3,295,423 (2,081,362) 258% Taxes and assessments 13,938,691 13,274,821 5% Administrative and other underwriting 51,243,312 37,282,539 37% Total underwriting expenses 436,831,417 366,719,097 19% Net underwriting income 314,439,840 273,203,893 15% Other income (expense) Investment income 45,542,100 24,150,659 89% Interest expense (45,365,239) (43,059,329) -5% Financing costs - - 0% Takeout bonuses 43,103-100% Assessment income 8,541,742 8,246,514 4% Other income and expense 2,155,443 2,077,924 4% Total other income (expense) 10,917,149 (8,584,232) 227% Net income (loss) $ 325,356,989 $ 264,619,661 23%

7 Statutory statement of operations - comparative (unaudited) Year to Date PLA March 31, 2012 March 31, 2011 Variance Net earned premiums: Direct earned premiums $ 423,757,492 $ 325,996,878 30% Ceded earned premiums (14,410,943) (9,299,609) -55% Net earned premiums 409,346,549 316,697,269 29% Underwriting expense: Losses incurred 204,767,709 164,913,836 24% Loss adjustment expense incurred 48,138,790 29,343,824 64% Producer commissions 29,660,468 26,382,452 12% Ceded commissions 2,829,653 (1,797,892) 257% Taxes and assessments 8,025,803 7,104,348 13% Administrative and other underwriting 30,670,208 21,291,819 44% Total underwriting expenses 324,092,631 247,238,387 31% Net underwriting income (loss) 85,253,918 69,458,882 23% Other income (expense) Investment income 14,733,384 6,835,957 116% Interest expense - - 0% Financing costs - - 0% Take-out bonuses 43,103-100% Assessment income - - 0% Other income and expense 1,283,218 1,203,247 7% Total other income (expense) 16,059,705 8,039,204 100% Net income (loss) $ 101,313,623 $ 77,498,086 31%

8 Statutory statement of operations - comparative (unaudited) Year to Date CLA March 31, 2012 March 31, 2011 Variance Net earned premiums: Direct earned premiums $ 49,944,004 $ 50,968,015-2% Ceded earned premiums - - 0% Net earned premiums 49,944,004 50,968,015-2% Underwriting expense: Losses incurred 9,745,951 12,005,891-19% Loss adjustment expense incurred 3,344,407 910,921 267% Producer commissions 4,941,118 5,127,487-4% Ceded commissions - - 0% Taxes and assessments 883,844 903,475-2% Administrative and other underwriting 2,679,880 1,919,837 40% Total underwriting expenses 21,595,200 20,867,611 3% Net underwriting income (loss) 28,348,804 30,100,404-6% Other income (expense) Investment income 7,009,061 3,441,280 104% Interest expense - - 0% Financing costs - - 0% Take-out bonuses - - 0% Assessment income - - 0% Other income and expense 133,547 175,450-24% Total other income (expense) 7,142,608 3,616,730 97% Net income (loss) $ 35,491,412 $ 33,717,134 5%

9 Statutory statement of operations - comparative (unaudited) Year to Date COASTAL March 31, 2012 March 31, 2011 Variance Net earned premiums: Direct earned premiums $ 293,983,492 $ 272,905,329 8% Ceded earned premiums (2,002,788) (647,623) -209% Net earned premiums 291,980,704 272,257,706 7% Underwriting expense: Losses incurred 30,027,073 45,518,119-34% Loss adjustment expense incurred 12,759,018 10,242,894 25% Producer commissions 24,969,457 23,797,675 5% Ceded commissions 465,770 (283,470) 264% Taxes and assessments 5,029,044 5,266,998-5% Administrative and other underwriting 17,893,224 14,070,883 27% Total underwriting expenses 91,143,586 98,613,099-8% Net underwriting income (loss) 200,837,118 173,644,607 16% Other income (expense) Investment income 23,799,655 13,873,422 72% Interest expense (45,365,239) (43,059,329) -5% Financing costs - - 0% Take-out bonuses - - 0% Assessment income 8,541,742 8,246,514 4% Other income and expense 738,678 699,227 6% Total other income (expense) (12,285,164) (20,240,166) 39% Net income (loss) $ 188,551,954 $ 153,404,441 23%

10 Statutory comparative administrative and other expenses (unaudited) Year to Date All departments March 31, 2012 March 31, 2011 Variance Salaries $ 23,739,167 $ 21,603,359 10% Employee benefits 4,060,519 3,768,604 8% Payroll taxes 1,923,120 1,576,228 22% Temporary services 1,975,943 631,004 213% Other underwriting fees 6,705,625 2,112,065 217% Other processing fees 356,833 355,088 0% Training 170,376 192,928-12% Recruiting 54,636 16,469 232% Printing 24,261 24,064 1% Office supplies 639,874 206,802 209% Subscriptions & dues 356,737 252,104 42% Postage 2,009,214 1,298,906 55% Telecommunications 1,008,789 925,048 9% Legal 22,296 (532,619) 104% Insurance 147,486 165,478-11% Travel & meals 404,067 256,546 58% Servicing carrier fees 2,535,863 2,193,843 16% Professional consulting 6,092,866 3,218,871 89% Miscellaneous 21,594 (47,534) 145% Rent - facilities 1,827,792 1,608,165 14% Rent - ofc equip & furn 110,977 107,496 3% Depreciation 871,357 1,413,612-38% Producer fees collected (194,354) (198,953) 2% Maintenance & repairs 480,096 432,502 11% Bank charges 81,762 91,159-10% Software maint & licensing 3,046,296 2,065,639 47% FMAP funding (67,649) (65,090) -4% ULAE expense allocation (7,162,231) (6,389,245) -12% Total admin and other $ 51,243,312 $ 37,282,539 37% Capital acquisitions $ 2,476,046 $ 423,204 485% Total expenditures $ 53,719,358 $ 37,705,743 42% Employee count 1,179 1,161 2%

Budgetary Analysis

11 Statement of operations - statutory basis (unaudited) Month ended March 31, 2012 PLA / CLA / COASTAL Actual Year to Date Budget Favorable (Unfavorable) Net earned premiums: Direct earned premiums $ 767,684,988 $ 797,489,140-4% Ceded earned premiums (16,413,731) (5,031,857) -226% Net earned premiums 751,271,257 792,457,283-5% Underwriting expense: Losses incurred 244,540,733 275,121,814 11% Loss adjustment expense incurred 64,242,215 52,897,841-21% Producer commissions 59,571,043 63,429,283 6% Ceded commissions 3,295,423 - -100% Taxes and assessments 13,938,691 11,926,230-17% Administrative and other underwriting 51,243,312 57,843,964 11% Total underwriting expenses 436,831,417 461,219,132 5% Net underwriting income (loss) 314,439,840 331,238,151-5% Other income (expense) Investment income 45,542,100 29,086,745 57% Interest expense (45,365,239) (45,769,888) 1% Financing costs - - 0% Take-out bonuses 43,103-100% Assessment income 8,541,742 7,915,498 8% Other income and expense 2,155,443 1,538,554 40% Total other income (expense) 10,917,149 (7,229,091) 251% Net income (loss) $ 325,356,989 $ 324,009,060 0%

12 Statutory statement of operations - budget to actual (unaudited) Month ended March 31, 2012 PLA Actual Year to Date Budget Favorable (Unfavorable) Net earned premiums: Direct earned premiums $ 423,757,492 $ 414,935,504 2% Ceded earned premiums (14,410,943) (2,986,691) -383% Net earned premiums 409,346,549 411,948,813-1% Underwriting expense: Losses incurred 204,767,709 230,704,140 11% Loss adjustment expense incurred 48,138,790 40,142,520-20% Producer commissions 29,660,468 31,506,140 6% Ceded commissions 2,829,653 - -100% Taxes and assessments 8,025,803 7,006,873-15% Administrative and other underwriting 30,670,208 33,037,118 7% Total underwriting expenses 324,092,631 342,396,791 5% Net underwriting income (loss) 85,253,918 69,552,022 23% Other income (expense) Investment income 14,733,384 8,762,573 68% Interest expense - - 0% Financing costs - - 0% Take-out bonuses 43,103-100% Assessment income - - 0% Other income and expense 1,283,218 871,078 47% Total other income (expense) 16,059,705 9,633,651 67% Net income (loss) $ 101,313,623 $ 79,185,673 28%

13 Statutory statement of operations - budget to actual (unaudited) Month ended March 31, 2012 Year to Date CLA Actual Budget Favorable (Unfavorable) Net earned premiums: Direct earned premiums $ 49,944,004 $ 61,623,093-19% Ceded earned premiums - - 0% Net earned premiums 49,944,004 61,623,093-19% Underwriting expense: Losses incurred 9,745,951 12,324,619 21% Loss adjustment expense incurred 3,344,407 2,864,242-17% Producer commissions 4,941,118 5,399,028 8% Ceded commissions - - 0% Taxes and assessments 883,844 793,061-11% Administrative and other underwriting 2,679,880 3,211,999 17% Total underwriting expenses 21,595,200 24,592,949 12% Net underwriting income (loss) 28,348,804 37,030,144-23% Other income (expense) Investment income 7,009,061 3,980,670 76% Interest expense - - 0% Financing costs - - 0% Take-out bonuses - - 0% Assessment income - - 0% Other income and expense 133,547 93,502 43% Total other income (expense) 7,142,608 4,074,172 75% Net income (loss) $ 35,491,412 $ 41,104,316-14%

14 Statutory statement of operations - budget to actual (unaudited) Month ended March 31, 2012 Year to Date COASTAL Actual Budget Favorable (Unfavorable) Net earned premiums: Direct earned premiums $ 293,983,492 $ 320,930,543-8% Ceded earned premiums (2,002,788) (2,045,166) 2% Net earned premiums 291,980,704 318,885,377-8% Underwriting expense: Losses incurred 30,027,073 32,093,055 6% Loss adjustment expense incurred 12,759,018 9,891,079-29% Producer commissions 24,969,457 26,524,115 6% Ceded commissions 465,770 - -100% Taxes and assessments 5,029,044 4,126,296-22% Administrative and other underwriting 17,893,224 21,594,847 17% Total underwriting expenses 91,143,586 94,229,392 3% Net underwriting income (loss) 200,837,118 224,655,985-11% Other income (expense) Investment income 23,799,655 16,343,502 46% Interest expense (45,365,239) (45,769,888) 1% Financing costs - - 0% Take-out bonuses - - 0% Assessment income 8,541,742 7,915,498 8% Other income and expense 738,678 573,974 29% Total other income (expense) (12,285,164) (20,936,914) 41% Net income (loss) $ 188,551,954 $ 203,719,071-7%

15 Administrative and other expenses - statutory basis (unaudited) Month ended March 31, 2012 Actual Year to Date Budget Favorable (Unfavorable) Salaries $ 23,739,167 $ 23,739,414 0% Employee benefits 4,060,519 4,025,381-1% Payroll taxes 1,923,120 1,427,241-35% Temporary services 1,975,943 1,767,903-12% Other underwriting fees 6,705,625 7,757,265 14% Other processing fees 356,833 375,936 5% Training 170,376 407,163 58% Recruiting 54,636 47,700-15% Printing 24,261 46,331 48% Office supplies 639,874 455,321-41% Subscriptions & dues 356,737 224,982-59% Postage 2,009,214 1,622,962-24% Telecommunications 1,008,789 964,907-5% Legal 22,296 187,500 88% Insurance 147,486 163,050 10% Travel & meals 404,067 861,585 53% Servicing carrier fees 2,535,863 3,915,431 35% Professional consulting 6,092,866 10,788,936 44% Miscellaneous 21,594 4,248-408% Rent - facilities 1,827,792 1,934,859 6% Rent - ofc equip & furn 110,977 147,421 25% Depreciation 871,357 912,194 4% Producer fees collected (194,354) (224,910) -14% Maintenance & repairs 480,096 768,611 38% Bank charges 81,762 96,000 15% Software maint & licensing 3,046,296 3,232,969 6% FMAP funding (67,649) (64,238) 5% ULAE expense allocation (7,162,231) (7,742,198) -7% Total admin and other $ 51,243,312 $ 57,843,964 11% Capital acquisitions $ 2,476,046 $ 3,715,020 33% Total expenditures $ 53,719,358 $ 61,558,984 13% Employee count 1,179 1,310 10%

GAAP Financials

16 GAAP Consolidated statement of net assets (unaudited) March 31, 2012 Consolidated PLA CLA COASTAL Assets Cash and investments $ 13,326,668,380 $ 3,651,465,485 $ 1,535,158,828 $ 8,140,044,067 Premium receivable, net 171,456,771 95,370,199 5,714,290 70,372,282 Due from takeout companies 2,913,111 2,581,651-331,460 Reinsurance recoverables 4,934,808 4,311,089-623,719 Accrued investment income 72,562,753 12,859,557 5,480,292 54,222,904 Prepaid reinsurance premiums 53,603,622 49,978,919-3,624,703 Deferred policy acquisition costs 142,858,199 74,998,576 11,602,252 56,257,371 Deferred takeout bonus - - - - Deferred financing costs 100,881,193 - - 100,881,193 Fixed assets, net 10,438,614 10,438,614 - - Other assets 8,985,345 8,978,539-6,806 Due from investment broker 19,123,798 8,545,610 10,578,188 - Inter-account receivable (payable) 67,649 68,637,554 (15,842,040) (52,727,865) Assessment receivables 446,988,962 (1,016,443) 4,573,367 443,432,038 Total assets $ 14,361,483,205 $ 3,987,149,350 $ 1,557,265,177 $ 8,817,068,678 Liabilities Loss reserves $ 1,155,898,187 $ 864,642,288 $ 133,397,723 $ 157,858,176 Loss expense reserves 261,590,399 191,725,674 27,882,104 41,982,621 Direct unearned premiums 1,405,347,916 809,634,957 87,448,338 508,264,621 Unearned assessment income 143,402,819 - - 143,402,819 Reinsurance premiums payable 27,842,710 - - 27,842,710 Funds held under reinsurance treaties 3,548 - - 3,548 Advance premiums & suspended cash 136,139,770 74,634,282 4,391,747 57,113,741 Notes payable 4,530,045,273 - - 4,530,045,273 Interest payable 59,688,025 - - 59,688,025 Taxes and fees payable 14,522,448 8,609,571 883,833 5,029,044 Due to investment broker 105,653,589 8,018,606 24,773,059 72,861,924 Other liabilities 125,987,425 88,099,441 4,200,614 33,687,370 Total liabilities 7,966,122,109 2,045,364,819 282,977,418 5,637,779,872 Net assets Invested in capital assets 10,438,614 10,438,614 - - Restricted 11,643,994 - - 11,643,994 Unrestricted 6,373,278,488 1,931,345,917 1,274,287,759 3,167,644,812 Total net assets 6,395,361,096 1,941,784,531 1,274,287,759 3,179,288,806 Total liabilities and net assets $ 14,361,483,205 $ 3,987,149,350 $ 1,557,265,177 $ 8,817,068,678

17 GAAP consolidated statement of revenues, expenses and change in net assets (unaudited) As of March 31, 2012 Consolidated PLA CLA COASTAL Operating revenue: Premiums earned $ 751,271,257 $ 409,346,549 $ 49,944,004 $ 291,980,704 Operating expenses: Losses incurred 244,540,733 204,767,709 9,745,951 30,027,073 Loss adjustment expense incurred 64,242,215 48,138,790 3,344,407 12,759,018 Producer commissions, net 65,447,147 33,103,692 5,695,701 26,647,754 Taxes and assessments 14,798,928 8,582,643 992,736 5,223,549 Administrative and other underwriting 49,891,360 29,621,918 2,767,312 17,502,130 Total operating expenses 438,920,383 324,214,752 22,546,107 92,159,524 Operating income 312,350,874 85,131,797 27,397,897 199,821,180 Non-operating revenues (expenses): Investments income 83,857,997 22,156,730 10,959,864 50,741,403 Interest expense (49,545,496) - - (49,545,496) Financing costs (1,518,572) - - (1,518,572) Takeout bonuses 43,103 43,103 - - Assessment Income 13,186,929 - - 13,186,929 Other income and expense 2,193,851 1,144,232 328,702 720,917 Total non-operating revenues 48,217,812 23,344,065 11,288,566 13,585,181 Gain from operations 360,568,686 108,475,862 38,686,463 213,406,361 Federal income tax benefit - - - - Change in net assets $ 360,568,686 $ 108,475,862 $ 38,686,463 $ 213,406,361

18 Reconciliation of STAT to GAAP (unaudited) As of March 31, 2012 Consolidated PLA CLA COASTAL Net income - Statutory Basis $ 325,356,989 $ 101,313,623 $ 35,491,412 $ 188,551,954 Adjustments: Change in deferred policy acquisition costs (2,088,966) (122,121) (950,907) (1,015,938) Change in deferred financing costs (5,698,830) - - (5,698,830) Change in deferred takeout bonuses - - - - Change in allowance for doubtful accounts 38,409 (138,986) 195,155 (17,760) Change in unearned assessment income 4,645,187 - - 4,645,187 Change in unrealized gain (loss) on investments 38,315,897 7,423,346 3,950,803 26,941,748 Change in net assets - GAAP $ 360,568,686 $ 108,475,862 $ 38,686,463 $ 213,406,361 Consolidated PLA CLA COASTAL Accumulated surplus - Statutory Basis $ 5,918,090,417 $ 1,798,098,463 $ 1,239,543,599 $ 2,880,448,355 Adjustments: Deferred policy acquisition costs 142,858,199 74,998,576 11,602,252 56,257,371 Deferred financing costs 100,881,193 - - 100,881,193 Deferred takeout bonuses - - - - Unrealized gain (loss) on investments 123,206,217 28,027,241 15,402,067 79,776,909 Statutory non-admitted assets other than premium 142,892,360 38,245,578 7,739,841 96,906,941 Unrealized assessment income change (35,231,350) - - (35,231,350) Statutory provision for reinsurance-sch F penalty 2,664,060 2,414,673-249,387 Total net assets - GAAP $ 6,395,361,096 $ 1,941,784,531 $ 1,274,287,759 $ 3,179,288,806

19 Adjusted GAAP total net assets per 16(L) of the Plan of Operations (unaudited)* As of March 31, 2012 Consolidated PLA CLA COASTAL GAAP total net assets $ 6,395,361,096 $ 1,941,784,531 $ 1,274,287,759 $ 3,179,288,806 Deferred takeout bonus - - - - Deferred financing costs (100,881,193) - - (100,881,193) Net assets related to pre-event notes - - - - Restricted cash - FSLSO (11,643,994) - - (11,643,994) Adjusted GAAP total net assets $ 6,282,835,909 $ 1,941,784,531 $ 1,274,287,759 $ 3,066,763,619 * GAAP for purposes of assessment calulation