ALTERRA AMERICA INSURANCE COMPANY

ALTERRA AMERICA INSURANCE COMPANY A ALTERRA EXCESS & SURPLUS INSURANCE CO A ALTERRA REINSURANCE USA INC. A ASSOCIATED INTERNATIONAL INSURANCE COMPANY A DEERFIELD INSURANCE COMPANY A- ESSENTIA INSURANCE COMPANY A ESSEX INSURANCE COMPANY A EVANSTON INSURANCE COMPANY A FIRSTCOMP INSURANCE COMPANY B++ MARKEL AMERICAN INSURANCE COMPANY A MARKEL BERMUDA LIMITED A MARKEL EUROPE PLC A MARKEL INSURANCE COMPANY A MARKEL INTERNATIONAL INSURANCE COMPANY LIMITED A Back Top 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 1 of 72

Ultimate Parent: Markel Corporation ALTERRA AMERICA INSURANCE COMPANY Wilmingn, DE 4521 Highwoods Parkway, Glen Allen, VA 23060 Web: www.markelcorp.com Tel: 804-287-6972 Fax: 804-965-1723 AMB#: 002061 NAIC#: 21296 Ultimate Parent#: 058405 FEIN#: 35-0293730 BEST S CREDIT RATING Best s Financial Strength Rating: A Outlook: Stable Best s Financial Size Category: XIV RATING RATIONALE Rating nale: The rating of Markel Bermuda Limited (formerly Alterra Bermuda Limited) has been extended Alterra America Insurance Company based on its role in the organization s operations. This position is further supported by common ownership, common management, implicit support and internal reinsurance. Bermuda Limited (AMB# 087119). In May of 2013, Alterra Capital Holdings Limited (Alterra) was acquired by Markel Corporation (Markel), and the integration is ongoing. Both Alterra and Markel are specialty-focused underwriters. In addition recognizing its new ownership under Markel, the rating also reflects Markel Bermuda s solid financial performance and strong risk-adjusted capitalization. Markel Bermuda s existing platforms and operations in major global underwriting markets also provide broad diversification as well as additional flexibility in optimizing its underwriting portfolio composition. Being part of Markel, revenue and earnings prospects are likely be enhanced over time while leveraging existing business relationships and efficiencies may also be gained. Partially offsetting these positive rating attributes are the effects of the prolonged soft market in U.S. casualty classes, which represents a significant portion of Markel Bermuda s portfolio, and the challenging investment climate that places increased pressure on underwriting profitability. While no rating enhancement is afforded Markel Bermuda at this time, the rating for Markel Bermuda takes in consideration the future benefits be derived from the transaction as well as some of the immediate benefits gained in terms of enhanced scale, reach, the Markel brand, distribution platform and its leadership position in the excess and surplus lines marketplace in the United States. The rating also considers no material changes business profile, capitalization, performance as well as intercompany reinsurance. Rating facrs that could lead an upgrade in the rating includes continued favorable operating profitability coupled with maintenance of a strong risk-adjusted capital level and/or explicit or implicit support from Markel that would materially enhance capital along with its role in the new organization. Alternatively, facrs that could lead a downgrade in the rating and/or a revised outlook negative include unfavorable operating profitability trends, outsized catastrophe or investment losses relative peers, significant adverse loss reserve development or a material decline in its risk-adjusted capital. FIVE-YEAR RATING HISTORY Date Best s FSR Date Best s FSR 03/21/14 A 09/07/10 A 08/09/13 A 05/13/10 A 06/20/12 A 03/04/10 A- u 08/05/11 A KEY FINANCIAL INDICATORS ($000) Statury Data Direct Premiums Written Premiums Written Pre-tax Operating Income Income Total Admitted Assets Policyholders Surplus 2009 24,401 2,440 19 96 37,514 19,934 2010 52,150 5,215-966 154 126,686 111,771 2011 94,606 9,461-4,680-3,031 153,406 115,883 2012 154,250 15,425-5,085-4,032 145,424 93,831 2013 226,353 21,296-4,810-4,816 222,418 150,257 Profitability Leverage Liquidity Comb. Inv. Yield (%) Pre-tax ROR (%) NA Inv Lev NPW Overall Liq. (%) Oper. Cash flow (%) 2009 115.3 3.1 2.3 0.1 1.0 213.4 490.0 2010 123.5 1.1-22.4 0.0 0.2 849.3 13.6 2011 151.2 0.4-70.3 0.1 0.4 408.8 90.2 2012 133.5 0.1-39.3 0.2 0.7 281.9 183.8 2013 120.3 0.1-25.6 0.1 0.6 308.2 79.5 5-Yr 129.2 0.5-35.6 (*) Within several financial tables of this report, this company is compared against the Commercial Casualty Composite. (*) Data reflected within all tables of this report has been compiled from the company-filed statury statement. BUSINESS PROFILE Bermuda Limited (AMB# 087119). Markel Bermuda is the Bermuda-based operating unit of Alterra. Alterra was a publicly traded company on the NASDAQ exchange prior being acquired by Markel on May 1, 2013. Alterra was formed as a result of the amalgamation between Max Capital Group Ltd. (Max) and Harbor Point Limited in May 2010. The holding company and all of the subsidiaries were rebranded with the Alterra name. The integration of Alterra s operations in Markel is currently ongoing. Through Alterra s operating subsidiaries, traditional reinsurance and insurance of both long-tailed and short-tailed liabilities are provided. Affiliated operating companies distribute products for the group in the U.S., Europe, Canada, Japan, Latin America, Australia and New Zealand. Underwriting operations provide a diversified and balanced mix of short-tail and long-tail insurance and reinsurance capacity. Covered risks include the (re)insurance of general casualty, professional lines, workers compensation, accident and health, medical malpractice, property, agriculture, aviation, credit/surety, and marine and energy. The Reinsurance segment products are offered on both excess of loss and quota share basis, and are generally written on market terms where the company participates alongside other reinsurers. Whole account coverage is underwritten with a focus on casualty risk exposures. The U.S. Insurance lines segment (formerly known as Alterra Excess & Surplus) provides access the U.S. excess and surplus lines market with coverage in property, casualty, marine, umbrella and excess liability the middle market. In June 2008, Alterra America Insurance Company was acquired. This company offers the same type of coverage but on an admitted basis. In November 2008, Imagine Group (UK) Limited (Imagine Lloyd s), a Lloyd s insurance operation, was acquired by Max from Imagine Insurance Company Limited. It had been rebranded as Alterra at Lloyd s Limited form the Lloyd s segment and through Lloyd s Syndicate 1400 offers a diverse portfolio of specialty risks, which includes accident and health, agriculture, aviation, international casualty, financial institutions, marine, professional indemnity, property, employers and public liability, and surety. The Lloyd s syndicates complement underwriting operations in Bermuda, Ireland and the U.S. Markel Bermuda also owns Alterra Europe plc, which is a (re)insurance company domiciled in Ireland. This company has been rebranded as Markel Europe plc. 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 2 of 72

TOTAL PREMIUM COMPOSITION & GROWTH ANALYSIS DPW Reinsurance Prem Assumed Reinsurance Prem Ceded ($000) (% Chg) ($000) (% Chg) ($000) (% Chg) 2009 24,401 21,961 2010 52,150 113.7 46,935 113.7 2011 94,606 81.4 85,146 81.4 2012 154,250 63.0 138,825 63.0 2013 226,353 46.7 3,782 208,839 50.4 NPW NPE ($000) (% Chg) ($000) (% Chg) 2009 2,440 845 2010 5,215 113.7 4,313 410.4 2011 9,461 81.4 6,660 54.4 2012 15,425 63.0 12,926 94.1 2013 21,296 38.1 18,796 45.4 Terriry: The company is licensed in the District of Columbia and all states. 2013 BY-LINE BUSINESS ($000) Reinsurance Reinsurance DPW Prem Assumed Prem Ceded Product Line ($000) (%) ($000) (%) ($000) (%) Oth Liab CM 70,579 31.2 3,782 100.0 68,642 32.9 Inland Marine 52,705 23.3 47,434 22.7 Oth Liab Occur 51,349 22.7 46,214 22.1 Com l MultiPeril 35,976 15.9 32,378 15.5 Ocean Marine 15,803 7.0 14,223 6.8 All Other -59 0.0-53 0.0 Total 226,353 100.0 3,782 100.0 208,839 100.0 Business NPW Retention Product Line ($000) (%) (%) Oth Liab CM 5,719 26.9 7.7 Inland Marine 5,270 24.7 10.0 Oth Liab Occur 5,135 24.1 10.0 Com l MultiPeril 3,598 16.9 10.0 Ocean Marine 1,580 7.4 10.0 All Other -6 0.0 100.0 Total 21,296 100.0 9.3 BY-LINE RESERVES ($000) Product Line Oth Liab CM 4,378 1,321 202 Inland Marine 3,760 3,526 1,516 870 137 Oth Liab Occur 5,863 2,056 109 Com l MultiPeril 3,254 314 Ocean Marine 1,938 2,932 1,663 279 367 All Other 1,253 2,922 978 562 45 Total 20,446 13,071 4,467 1,712 549 GEOGRAPHIC BREAKDOWN BY DIRECT PREMIUM WRITINGS ($000) New York 42,304 29,566 15,119 5,858 3,727 Texas 31,686 23,081 13,952 7,044 2,380 Florida 19,811 14,819 14,196 10,396 4,600 California 14,330 8,701 4,434 3,324 2,088 Illinois 11,385 6,209 2,860 1,074 215 New Jersey 10,264 6,180 3,915 2,536 918 Louisiana 9,021 8,538 5,545 3,806 1,079 Hawaii 6,956 5,491 5,130 4,646 2,347 Ohio 6,472 4,032 2,124 1,081 960 Pennsylvania 5,655 2,878 1,770 768 363 All Other 68,469 44,755 25,561 11,617 5,724 Total 226,353 154,250 94,606 52,150 24,401 RISK MANAGEMENT Bermuda Limited (AMB# 087119). Alterra s enterprise risk management (ERM) framework permeates all levels of the organization. There were several committees set up oversee the various operational and risk functions as well as delegated authority. Underwriting and investing activities were modeled on an integrated basis and proprietary and non-proprietary models were used analyze risk characteristics of its liabilities and assets. It is expected that ERM will continue support Alterra although going forward the ERM of Alterra will be under the umbrella of Markel. This is viewed be a positive rating attribute. OPERATING PERFORMANCE Bermuda Limited (AMB# 087119). Operating Results: The combined ratio has been relatively stable and profitable over the five-year period; however, overall operating performance has experienced some volatility. Results in 2013 were impacted by the Markel acquisition and Markel s approach reserve setting. Since the acquisition, Markel Bermuda has eliminated its hedge fund holdings and will gradually adapt an allocation in line with Markel s investment strategy. The current investment posture coupled with the financial market rebound in 2009 has aided in strengthening the balance sheet. Consequently, longer-term return measures have been skewed as a result of the significant investment losses in 2008. Since the amalgamation in 2010 through the acquisition in 2013, operating performance has been relatively steady and stable. In 2011, losses from global catastrophes were on the lower side relative peers, which A.M. Best expected given its risk profile. However, it is also worth noting that the losses from the global catastrophes, including the Japanese and New Zealand earthquakes and flooding in Thailand were within its stated risk lerance which speaks its catastrophe risk management. operating income for 2012 improved in comparison 2011 primarily due the significant decline in property catastrophe losses. Operating income for 2012 was however adversely impacted by the recording of a valuation allowance related deferred tax asset of the US operating subsidiary and a decline in investment income due lower investment yields on new investment purchases. Back Top 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 3 of 72

PROFITABILITY ANALYSIS ($000) Company Pre-tax After-tax Operating Operating Total Income Income Income Return 2009 19 96 96 96 2010-966 -451 154 3,284 2011-4,680-3,041-3,031-2,568 2012-5,085-4,155-4,032-23,772 2013-4,810-4,810-4,816-2,520 5-Yr Total -15,521-12,361-11,628-25,479 INVESTMENT GAINS Company Realized Unrealized Inv Capital Capital Year Income Gains Gains 2009 622 2010 685 606 3,130 2011 435 10 463 2012 150 123-19,740 2013 102-6 2,296 5-Yr Total 1,995 734-13,851 Back Top Company Industry Composite Company Industry Composite Pre-tax Return Operating Pre-tax Return Operating Inv Inc Inv Return on Total Inv Inc Inv ROR on ROR on Growth Yield Inv Assets Return Growth Yield 2009 2.3 0.5 41.7 15.4 11.4 84.7 Year (%) (%) (%) (%) (%) (%) 2010-22.4 5.0 107.6 11.2 9.5 88.1 2009-73.2 3.1 3.1 3.1-9.4 4.4 2011-70.3-2.3 144.7 6.7 5.6 93.0 2010 10.2 1.1 2.0 7.0 3.7 4.5 2012-39.3-22.7 132.3 7.6 7.8 91.5 2011-36.5 0.4 0.4 0.8-5.0 4.2 2013-25.6-2.1 119.7 15.0 12.4 84.5 2012-65.5 0.1 0.3-17.6-0.1 4.1 5-Yr Avg -35.6-6.0 124.6 11.2 9.3 88.3 2013-31.9 0.1 0.1 2.0 6.6 4.3 5-Yr Avg -52.6 0.5 0.7-2.6-1.1 4.3 UNDERWRITING EXPERIENCE Undrw Loss s Expense s Ind BALANCE SHEET STRENGTH Income ($000) Pure Loss LAE Loss LAE & Other Comm. Exp. Total Exp. Div. Pol. Comb. Comb. 2009-603 79.3 6.3 85.6-99.9 147.8 29.7 115.3 99.9 Bermuda Limited (AMB# 087119). 2010-1,651 49.4 3.4 52.8-70.8 141.5 70.7 123.5 104.3 2011-5,115 76.8 13.6 90.3-76.4 137.3 60.9 151.2 107.7 Capitalization: Markel Bermuda s risk-adjusted capitalization is at an 2012-5,235 91.3 6.0 97.3-81.5 117.7 36.2 133.5 105.6 excellent level and remains commensurate with its rating and business profile 2013-4,912 71.0 5.0 76.1-74.3 118.5 44.2 120.3 98.8 per A.M. Best s risk-based capital model. Following the amalgamation of Max 5-Yr Total/Avg -17,517 75.9 6.5 82.4-78.3 125.1 46.8 129.2 103.2 Capital Group Ltd. and Harbor Point Limited in May 2010, shareholders equity for the consolidated organization was roughly $3 billion. Given that the integration with Markel is currently ongoing, it is possible that the capital within certain operating subsidiaries may be right sized reflect their future business positions within the group. Capital contributions, including additional capital provided via distributions made by Markel International, helped fortify the balance sheets of the member companies. In the past, the parent company has shown the willingness draw down on its available credit facility ensure that enough capital is on hand support the group s business plan. BY-LINE LOSS RATIO Product Line 5-Yr Avg Oth Liab CM 69.9 57.8 70.0 66.4 Inland Marine 65.1 89.8 61.2 52.6 48.8 69.1 Oth Liab Occur 73.7 72.7 70.7 73.3 Com l MultiPeril 121.7 140.1 123.1 Ocean Marine 23.7 136.0 146.1 33.9 152.7 90.2 All Other -18.1 107.3 62.9 53.4 26.4 71.0 Total 71.0 91.3 76.8 49.4 79.3 75.9 DIRECT LOSS RATIO BY STATE 5-Yr Avg New York 127.5 139.6 51.2 22.4 134.6 114.8 Texas 71.2 48.4 55.2 47.3 25.4 58.9 Florida 75.1 40.5 62.9 38.1 229.4 61.1 California 33.3 125.7 80.4 54.8 34.8 67.2 Illinois 13.7 139.1 24.3 69.0 70.0 55.7 New Jersey 73.7 197.0 38.1 76.3 27.6 101.3 Louisiana 12.0 60.2 257.8 37.6 24.9 76.4 Hawaii 2.2 115.9 47.6 47.0 97.2 53.0 Ohio 39.4 50.0 54.3 24.1 20.8 41.1 Pennsylvania 22.2 108.7 63.1 53.6 42.4 54.4 All Other 54.3 81.6 84.6 71.3 47.0 67.6 Total 65.3 91.3 76.7 48.7 82.8 73.3 CAPITAL GENERATION ANALYSIS ($000) Source of Surplus Growth Pre-tax Realized Unrealized Operating Capital Income Capital Year Income Gains Taxes Gains 2009 19-77 2010-966 606-515 3,130 2011-4,680 10-1,639 463 2012-5,085 123-929 -19,740 2013-4,810-6 2,296 5-Yr Total -15,521 734-3,160-13,851 Source of Surplus Growth Change % Chg Contrib. Other in in Year Capital Changes 2009 324-511 -90-0.5 2010 95,176-6,624 91,836 460.7 2011 6,680 4,112 3.7 2012 1,720-22,052-19.0 2013 60,000-1,054 56,427 60.1 5-Yr Total 155,500 212 130,233 49.6 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 4 of 72

QUALITY OF SURPLUS ($000) Surplus Other Contributed Unassigned Year Notes Debt Capital Surplus 2009 20,000-66 2010 115,176-3,406 2011 115,176 706 2012 115,176-21,345 2013 175,176-24,919 Year-End Conditional Adjusted Year 2009 19,934 19,934 2010 111,771 111,771 2011 115,883 115,883 2012 93,831 93,831 2013 150,257 150,257 LEVERAGE ANALYSIS Company Industry Composite Res. Res. NPW NPW 2009 0.1 0.0 1.0 1.0 0.7 1.5 2.9 3.7 2010 0.0 0.0 0.2 0.2 0.7 1.4 2.8 3.6 2011 0.1 0.0 0.4 0.4 0.8 1.5 3.0 3.8 2012 0.2 0.1 0.7 0.7 0.8 1.4 2.9 3.8 2013 0.1 0.1 0.6 0.8 0.8 1.4 3.0 3.8 Current BCAR: 384.8 CEDED REINSURANCE ANALYSIS ($000) Company Bus. Reins. Ceded Ret. Recov. Reins. (%) (%) (%) Industry Composite Bus. Reins. Ceded Ret. Recov. Reins. (%) (%) (%) Ceded Reins. Total 2009 10.0 82.7 60.0 83.5 2010 10.0 82.2 56.1 78.4 2011 10.0 82.2 57.8 82.5 2012 10.0 82.3 57.3 82.2 2013 29,302 9.3 8.1 19.5 82.6 54.9 81.0 2013 REINSURANCE RECOVERABLES ($000) Paid & Unpaid Losses IBNR Unearned Premiums Other Recov* Total Reins Recov US Affiliates... 65,873 122,821 92,671 281,365 US Insurers... 4,306 7,824 12,130 Total (ex US Affils)... 4,306 7,824 12,130 Grand Total... 65,873 127,127 100,495 293,495 * Includes Commissions less Funds Withheld LOSS & ALAE RESERVE DEVELOP.: CALENDAR YEAR ($000) Orig. Developed Develop. Develop. Develop. Unpaid Unpaid Loss Res. Thru 13 Orig. (%) (%) NPE (%) @12/13 Develop. (%) Calendar Year 2008 2009 538 359-33.3-0.9 42.5 19 5.3 2010 1,678 2,314 37.9 0.6 53.7 1,090 47.1 2011 4,400 3,907-11.2-0.4 58.7 2,180 55.8 2012 12,582 12,243-2.7-0.4 94.7 8,247 67.4 2013 19,687 19,687 104.7 19,687 100.0 LOSS & ALAE RESERVE DEVELOP.: ACCIDENT YEAR ($000) Accident Year Orig. Loss Developed Thru 13 Develop. Orig. (%) Unpaid @12/13 Acc. Yr Loss Acc. Yr Comb. 2008 2009 538 359-33.3 19 64.3 94.0 2010 1,480 2,295 55.1 1,071 77.9 148.6 2011 2,387 2,676 12.1 1,090 73.3 134.2 2012 10,309 9,916-3.8 6,067 97.8 134.0 2013 11,440 11,440 11,440 76.9 121.1 Bermuda Limited (AMB# 087119). Liquidity: Hisrically, the vast majority of fixed income securities have been held in highly liquid and highly rated investments. Fixed income securities fund insurance reserves and related claim payments. LIQUIDITY ANALYSIS Company Industry Composite Quick Liq. (%) Current Liq. (%) Overall Liq. (%) Agents Bal. (%) Quick Liq. (%) Current Liq. (%) Overall Liq. (%) Agents Bal. (%) 2009 807.9 969.0 213.4 31.2 21.0 111.0 146.4 9.0 2010 243.5 391.2 849.3 4.7 21.1 111.4 146.8 8.9 2011 67.8 101.5 408.8 16.3 19.9 109.3 145.1 10.1 2012 31.2 42.0 281.9 21.5 21.9 108.4 145.4 10.8 2013 32.3 39.0 308.2 23.0 22.0 109.5 144.9 10.8 CASH FLOW ANALYSIS ($000) Company Industry Composite Underw Oper Underw Oper Underw Oper Cash Cash Cash Cash Cash Cash Cash Year Flow Flow Flow Flow (%) Flow (%) Flow (%) Flow (%) 2009 9,007 9,648 801 464.1 490.0 99.0 110.2 2010-5,769-4,972-7,575-0.3 13.6 96.4 108.5 2011-2,437-1,363-117 82.5 90.2 96.6 107.8 2012 6,976 8,810 3,852 166.4 183.8 99.5 113.0 2013-8,177-4,533 1,166 63.1 79.5 106.1 117.5 5-Yr Total -401 7,590-1,873 Investments: The company s investment portfolio allocations have been held in highly liquid and highly rated investments, which A.M. Best views as relatively conservative. Bermuda Limited (AMB# 087119). Markel Bermuda s investment portfolio allocation is similar that of most Bermuda market companies, which A.M. Best views as relatively conservative. As part of the current integration with Markel, the investment strategy will change better optimize the tal asset portfolio of the larger organization. INVESTMENT LEVERAGE ANALYSIS (% OF ) Industry Company Composite Class Real Other Non-Affil. Class 3-6 Estate/ Invested Common Inv. Affil. 3-6 Common Bonds Mtg. Assets Scks Inv. Bonds Scks 2009 5.9 8.6 2010 82.2 7.0 9.3 2011 86.8 7.0 9.8 2012 86.1 6.9 10.5 2013 95.2 7.5 13.2 INVESTMENTS - SECURITIES Current Year Distribution of Bonds By Maturity Years Yrs-Avg 0-1 1-5 5-10 10-20 20+ Maturity Government 41.5 3 Gov t Agencies & Muni 2.2 3.3 0.5 1.0 2.4 10 Industrial & Misc 34.9 5.5 5.7 1.8 1.0 3 Total 37.2 50.2 6.3 2.9 3.4 3 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 5 of 72

Bonds (000) 7,209 4,319 9,727 15,906 11,735 US Government 61.6 37.5 58.6 51.5 57.8 Foreign - All Other 1.5 1.2 State/Special Revenue - US 14.2 32.3 27.3 28.9 42.2 Industrial & Misc - US 22.7 29.0 14.2 19.6 Private Issues 0.0 Public Issues 100.0 100.0 100.0 100.0 100.0 Bond Quality (%) Class 1 99.9 100.0 100.0 100.0 100.0 Class 2 0.1 INVESTMENTS - EQUITIES Scks (000) 143,087 80,791 100,531 91,920 Affiliated Common 100.0 100.0 100.0 100.0 INVESTMENTS - OTHER INVESTED ASSETS Other Inv Assets (000) 6,234 5,068 1,216 1,333 8,908 Cash 43.7 60.2 8.2 9.1 Short-Term 56.3 39.8 91.8 100.0 90.9 HISTORY This company was originally incorporated under the laws of Indiana become successor Mor Indemnity Association, a reciprocal exchange formed in 1919. Originally organized write aumobile physical damage insurance, the company s charter powers were subsequently broadened and, since 1961, have permitted the handling of all property and casualty lines. Effective February 10, 1986, the company name was changed from Emmco Insurance Company Associates Insurance Company. The name was changed Citicapital Insurance Company in September 2001 and on May 30, 2002, the company reverted back the former title, Associates Insurance Company. The name was changed Commercial Guaranty Casualty Insurance Company on September 1, 2004 and Max America Insurance Company on July 9, 2008. In May 2010, Max Capital Group Ltd. and Harbor Point Limited amalgamated form Alterra Capital Holdings Limited. The amalgamated company was rebranded as Alterra Capital Holdings Limited and all operating subsidiaries were rebranded as well. Following the amalgamation, Max America Insurance Company was renamed Alterra America Insurance Company and redomesticated Delaware. On May 1, 2013, Markel Corporation, a publicly traded holding company that trades on the NYSE under ticker symbol MKL acquired Alterra Capital Holdings Limited and all of its subsidiaries including the company. MANAGEMENT Officers: President, F. Michael Crowley; Senior Vice President, Richard R. Whitt, III; Vice President, Treasurer and Chief Financial Officer, Anne G. Waleski; Vice Presidents, Deidre I. Balbuena, Nora N. Crouch, Dewey M. Jones, Robin Russo, Bryan W. Sanders; Controller, Robert G. Whitt III. Direcrs: Gerard Albanese, Jr., F. Michael Crowley, Britn L. Glisson, Bradley J. Kiscaden, Richard R. Whitt, III. REGULATORY An examination of the financial condition was made as of December 31, 2010, by the insurance department of Delaware. The 2013 annual independent audit of the company was conducted by KPMG, LLP. The annual statement of actuarial opinion is provided by G. Chrispher Nyca, FCAS, MAAA. REINSURANCE The largest net amount insured on any single risk is $4 million. The group provides reinsurance coverage third party insurance and reinsurance companies and also purchases reinsurance protection for its insurance and reinsurance operations. On an internal basis, Markel Bermuda provides reinsurance coverage its operating affiliates in the U.S. and Europe through respective quota share agreements. Markel Corporation arranges catastrophe coverage for all property Insurance units within Markel North America including Global Ocean Marine and Global Inland Marine divisions of Markel North America, resulting in higher limits and more cost effective coverage. At May 1, 2013, coverage for wind and earthquake was placed on a traditional and non-traditional basis. The traditional reinsurance coverage is placed 80% of the combined layer of $225 million excess of $100 million and 27.14% of the layer $175 million excess $325 million. The non-traditional reinsurance coverage is placed at 80% of the layer of $50 million excess of $50 million and $50 million part of the layer $175 million excess of $325 million or $50 million excess of $50 million 2nd, 3rd event cover. The non-traditional reinsurance is a p and drop reinsurance cover that affords a tal of $80 million in limit. Additionally, a 50% quota share was placed with a maximum $225 million occurrence limit. The company s principal non-affiliated reinsurer is ULLICO Labor CAPTIVE, IC. BALANCE SHEET ADMITTED ASSETS ($000) 12/31/13 12/31/12 13% 12% Bonds... 7,209 4,319 3.2 3.0 Cash & short-term invest... 6,234 5,068 2.8 3.5 Investments in affiliates... 143,087 80,791 64.3 55.6 Total invested assets... 156,530 90,178 70.4 62.0 Premium balances... 36,741 21,805 16.5 15.0 Accrued interest... 31 20 0.0 0.0 All other assets... 29,116 33,421 13.1 23.0 Total assets... 222,418 145,424 100.0 100.0 LIABILITIES & SURPLUS ($000) 12/31/13 12/31/12 13% 12% Loss & LAE reserves... 20,446 13,071 9.2 9.0 Unearned premiums... 10,297 7,797 4.6 5.4 All other liabilities... 41,419 30,726 18.6 21.1 Total liabilities... 72,161 51,593 32.4 35.5 Capital & assigned surplus... 175,176 115,176 78.8 79.2 Unassigned surplus... -24,919-21,345-11.2-14.7 Total policyholders surplus... 150,257 93,831 67.6 64.5 Total liabilities & surplus... 222,418 145,424 100.0 100.0 SUMMARY OF 2013 OPERATIONS ($000) Funds Provided from Statement of Income 12/31/13 Operations 12/31/13 Premiums earned... 18,796 Premiums collected... 13,953 Benefit & loss-related pmts Losses incurred... 13,354 11,621 LAE incurred... 944 Undrw expenses incurred LAE & undrw expenses paid 9,411 10,510 underwriting income -4,912 Undrw cash flow... -8,177 investment income... 102 Investment income... 2,781 Pre-tax cash operations Pre-tax oper income... -4,810-5,396 Realized capital gains... -6 Income taxes incurred... Income taxes pd (recov)... -863 income... -4,816 oper cash flow... -4,533 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 6 of 72

Ultimate Parent: Markel Corporation ALTERRA EXCESS & SURPLUS INSURANCE CO Wilmingn, DE 4521 Highwoods Parkway, Glen Allen, VA 23060 Web: www.markelcorp.com Tel: 804-287-6972 Fax: 804-965-1723 AMB#: 003677 NAIC#: 33189 Ultimate Parent#: 058405 FEIN#: 13-2872766 BEST S CREDIT RATING Best s Financial Strength Rating: A Outlook: Stable Best s Financial Size Category: XIV RATING RATIONALE Rating nale: The rating of Markel Bermuda Limited (formerly Alterra Bermuda Limited) has been extended Alterra Excess & Surplus Insurance Company based on its role and affiliation with Markel Bermuda Limited. This position is further supported by common ownership, common management, implicit support and internal reinsurance. Bermuda Limited (AMB# 087119). In May of 2013, Alterra Capital Holdings Limited (Alterra) was acquired by Markel Corporation (Markel), and the integration is ongoing. Both Alterra and Markel are specialty-focused underwriters. In addition recognizing its new ownership under Markel, the rating also reflects Markel Bermuda s solid financial performance and strong risk-adjusted capitalization. Markel Bermuda s existing platforms and operations in major global underwriting markets also provide broad diversification as well as additional flexibility in optimizing its underwriting portfolio composition. Being part of Markel, revenue and earnings prospects are likely be enhanced over time while leveraging existing business relationships and efficiencies may also be gained. Partially offsetting these positive rating attributes are the effects of the prolonged soft market in U.S. casualty classes, which represents a significant portion of Markel Bermuda s portfolio, and the challenging investment climate that places increased pressure on underwriting profitability. While no rating enhancement is afforded Markel Bermuda at this time, the rating for Markel Bermuda takes in consideration the future benefits be derived from the transaction as well as some of the immediate benefits gained in terms of enhanced scale, reach, the Markel brand, distribution platform and its leadership position in the excess and surplus lines marketplace in the United States. The rating also considers no material changes business profile, capitalization, performance as well as intercompany reinsurance. Rating facrs that could lead an upgrade in the rating includes continued favorable operating profitability coupled with maintenance of a strong risk-adjusted capital level and/or explicit or implicit support from Markel that would materially enhance capital along with its role in the new organization. Alternatively, facrs that could lead a downgrade in the rating and/or a revised outlook negative include unfavorable operating profitability trends, outsized catastrophe or investment losses relative peers, significant adverse loss reserve development or a material decline in its risk-adjusted capital. FIVE-YEAR RATING HISTORY Date Best s FSR Date Best s FSR 03/21/14 A 09/07/10 A 08/09/13 A 05/13/10 A 06/20/12 A 03/04/10 A- u 08/05/11 A KEY FINANCIAL INDICATORS ($000) Statury Data Direct Premiums Written Premiums Written Pre-tax Operating Income Income Total Admitted Assets Policyholders Surplus 2009 247,445 23,636-11,683-8,053 213,741 118,209 2010 271,436 43,656-873 -3,761 203,372 89,976 2011 280,245 50,022 12,554 8,353 247,309 100,531 2012 244,719 43,530-21,947-18,003 265,115 80,791 2013 227,816 52,124-1,009-456 402,140 143,087 Profitability Leverage Liquidity Comb. Inv. Yield (%) Pre-tax ROR (%) NA Inv Lev NPW Overall Liq. (%) Oper. Cash flow (%) 2009 164.5 3.7-59.5 0.2 1.0 224.2 36.0 2010 108.8 3.4-2.5 0.5 1.6 180.0 160.5 2011 87.4 3.2 26.6 0.5 1.8 169.2 149.8 2012 158.9 2.6-51.6 0.5 2.5 144.0 79.2 2013 107.2 1.5-2.0 30.1 0.4 2.0 155.3 448.5 5-Yr 120.8 2.8-11.8 (*) Within several financial tables of this report, this company is compared against the Surplus Lines Composite. (*) Data reflected within all tables of this report has been compiled from the company-filed statury statement. BUSINESS PROFILE Bermuda Limited (AMB# 087119). Markel Bermuda is the Bermuda-based operating unit of Alterra. Alterra was a publicly traded company on the NASDAQ exchange prior being acquired by Markel on May 1, 2013. Alterra was formed as a result of the amalgamation between Max Capital Group Ltd. (Max) and Harbor Point Limited in May 2010. The holding company and all of the subsidiaries were rebranded with the Alterra name. The integration of Alterra s operations in Markel is currently ongoing. Through Alterra s operating subsidiaries, traditional reinsurance and insurance of both long-tailed and short-tailed liabilities are provided. Affiliated operating companies distribute products for the group in the U.S., Europe, Canada, Japan, Latin America, Australia and New Zealand. Underwriting operations provide a diversified and balanced mix of short-tail and long-tail insurance and reinsurance capacity. Covered risks include the (re)insurance of general casualty, professional lines, workers compensation, accident and health, medical malpractice, property, agriculture, aviation, credit/surety, and marine and energy. The Reinsurance segment products are offered on both excess of loss and quota share basis, and are generally written on market terms where the company participates alongside other reinsurers. Whole account coverage is underwritten with a focus on casualty risk exposures. The U.S. Insurance lines segment (formerly known as Alterra Excess & Surplus) provides access the U.S. excess and surplus lines market with coverage in property, casualty, marine, umbrella and excess liability the middle market. In June 2008, Alterra America Insurance Company was acquired. This company offers the same type of coverage but on an admitted basis. In November 2008, Imagine Group (UK) Limited (Imagine Lloyd s), a Lloyd s insurance operation, was acquired by Max from Imagine Insurance Company Limited. It had been rebranded as Alterra at Lloyd s Limited form the Lloyd s segment and through Lloyd s Syndicate 1400 offers a diverse portfolio of specialty risks, which includes accident and health, agriculture, aviation, international casualty, financial institutions, marine, professional indemnity, property, employers and public liability, and surety. The Lloyd s syndicates complement underwriting operations in Bermuda, Ireland and the U.S. Markel Bermuda also owns Alterra Europe plc, which is a (re)insurance company domiciled in Ireland. This company has been rebranded as Markel Europe plc. 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 7 of 72

TOTAL PREMIUM COMPOSITION & GROWTH ANALYSIS DPW Reinsurance Prem Assumed Reinsurance Prem Ceded ($000) (% Chg) ($000) (% Chg) ($000) (% Chg) 2009 247,445 36.5 35,593 171.2 259,402 44.7 2010 271,436 9.7 47,340 33.0 275,119 6.1 2011 280,245 3.2 84,990 79.5 315,213 14.6 2012 244,719-12.7 138,916 63.5 340,106 7.9 2013 227,816-6.9 191,677 38.0 367,370 8.0 5-Yr CAGR 4.7 71.0 15.4 NPW NPE ($000) (% Chg) ($000) (% Chg) 2009 23,636 56.2 19,632 126.8 2010 43,656 84.7 35,254 79.6 2011 50,022 14.6 47,229 34.0 2012 43,530-13.0 42,516-10.0 2013 52,124 19.7 49,729 17.0 5-Yr CAGR 28.1 41.9 Terriry: The company is licensed in Delaware. It also operates on a surplus lines or non-admitted basis in the District of Columbia, Puer Rico, U.S. Virgin Islands, AL, AK, AZ, AR, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI and WY. 2013 BY-LINE BUSINESS ($000) Reinsurance Reinsurance DPW Prem Assumed Prem Ceded Product Line ($000) (%) ($000) (%) ($000) (%) Oth Liab CM 45,806 20.1 51,470 26.9 82,587 22.5 Allied Lines 81,163 35.6-42 0.0 67,164 18.3 Oth Liab Occur 27,914 12.3 46,214 24.1 64,294 17.5 Earthquake 28,577 12.5 23,681 6.4 Fire 21,824 9.6 0 0.0 18,266 5.0 Inland Marine 8,211 3.6 47,434 24.7 53,016 14.4 Homeowners 14,320 6.3 12,311 3.4 All Other 0 0.0 46,601 24.3 46,050 12.5 Total 227,816 100.0 191,677 100.0 367,370 100.0 Business NPW Retention Product Line ($000) (%) (%) Oth Liab CM 14,689 28.2 32.1 Allied Lines 13,956 26.8 17.2 Oth Liab Occur 9,835 18.9 35.2 Earthquake 4,896 9.4 17.1 Fire 3,559 6.8 16.3 Inland Marine 2,629 5.0 10.9 Homeowners 2,009 3.9 14.0 All Other 551 1.1 2.3 Total 52,124 100.0 22.9 BY-LINE RESERVES ($000) Product Line Oth Liab CM 24,358 12,811 9,782 5,064 2,094 Allied Lines 20,564 14,257 8,362 2,810 588 Oth Liab Occur 34,655 24,246 20,323 13,318 6,815 Earthquake 3,858 3,540 67 205 108 Fire 4,630 4,655 884 801 942 Inland Marine 1,374-1,832 1,126 2,792 640 Homeowners 1,085 1,702 690 369 233 All Other -1,266 2,838-965 13 304 Total 89,258 62,216 40,267 25,373 11,724 GEOGRAPHIC BREAKDOWN BY DIRECT PREMIUM WRITINGS ($000) California 36,528 37,826 44,433 42,989 34,872 Florida 33,500 39,775 48,452 45,287 43,118 Texas 21,990 25,247 31,378 31,205 31,394 New York 13,819 13,162 15,932 15,467 14,039 New Jersey 10,497 10,255 14,328 15,145 14,764 Illinois 9,050 12,640 9,708 7,586 5,679 South Carolina 8,930 8,858 8,857 10,736 10,911 Louisiana 8,142 7,824 10,780 11,159 13,130 Georgia 6,579 5,946 4,890 5,757 4,957 Pennsylvania 5,406 5,440 6,219 5,545 5,964 All Other 73,374 77,746 85,267 80,560 68,618 Total 227,816 244,719 280,245 271,436 247,445 RISK MANAGEMENT Bermuda Limited (AMB# 087119). Alterra s enterprise risk management (ERM) framework permeates all levels of the organization. There were several committees set up oversee the various operational and risk functions as well as delegated authority. Underwriting and investing activities were modeled on an integrated basis and proprietary and non-proprietary models were used analyze risk characteristics of its liabilities and assets. It is expected that ERM will continue support Alterra although going forward the ERM of Alterra will be under the umbrella of Markel. This is viewed be a positive rating attribute. OPERATING PERFORMANCE Bermuda Limited (AMB# 087119). Operating Results: The combined ratio has been relatively stable and profitable over the five-year period; however, overall operating performance has experienced some volatility. Results in 2013 were impacted by the Markel acquisition and Markel s approach reserve setting. Since the acquisition, Markel Bermuda has eliminated its hedge fund holdings and will gradually adapt an allocation in line with Markel s investment strategy. The current investment posture coupled with the financial market rebound in 2009 has aided in strengthening the balance sheet. Consequently, longer-term return measures have been skewed as a result of the significant investment losses in 2008. Since the amalgamation in 2010 through the acquisition in 2013, operating performance has been relatively steady and stable. In 2011, losses from global catastrophes were on the lower side relative peers, which A.M. Best expected given its risk profile. However, it is also worth noting that the losses from the global catastrophes, including the Japanese and New Zealand earthquakes and flooding in Thailand were within its stated risk lerance which speaks its catastrophe risk management. operating income for 2012 improved in comparison 2011 primarily due the significant decline in property catastrophe losses. Operating income for 2012 was however adversely impacted by the recording of a valuation allowance related deferred tax asset of the US operating subsidiary and a decline in investment income due lower investment yields on new investment purchases. 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 8 of 72

PROFITABILITY ANALYSIS ($000) Company Pre-tax After-tax Operating Operating Total Income Income Income Return 2009-11,683-8,285-8,053-8,706 2010-873 -1,199-3,761-2,413 2011 12,554 8,353 8,353 8,353 2012-21,947-18,260-18,003-18,003 2013-1,009-1,009-456 2,712 5-Yr Total -22,959-20,401-21,920-18,057 INVESTMENT GAINS Company Realized Unrealized Inv Capital Capital Year Income Gains Gains 2009 5,460 232-653 2010 4,425-2,562 1,348 2011 3,989 0 2012 3,221 257 2013 2,708 553 3,168 5-Yr Total 19,802-1,519 3,864 Back Top Company Industry Composite Company Industry Composite Pre-tax Return Operating Pre-tax Return Operating Inv Inc Inv Return on Total Inv Inc Inv ROR on ROR on Growth Yield Inv Assets Return Growth Yield 2009-59.5-7.1 136.7 25.9 12.3 74.3 Year (%) (%) (%) (%) (%) (%) 2010-2.5-2.3 96.2 19.9 9.7 79.7 2009-19.0 3.7 3.9 3.4-7.0 4.0 2011 26.6 8.8 79.0 16.8 5.7 82.6 2010-19.0 3.4 1.4 2.4 7.8 4.1 2012-51.6-19.9 151.3 13.1 8.1 88.8 2011-9.8 3.2 3.2 3.2 9.6 4.3 2013-2.0 2.4 101.7 32.2 15.3 68.4 2012-19.2 2.6 2.8 2.8-6.2 3.9 5-Yr Avg -11.8-3.4 110.6 21.4 10.2 79.0 2013-15.9 1.5 1.8 3.6 10.7 4.4 5-Yr Avg -16.9 2.8 2.6 3.1 2.8 4.1 UNDERWRITING EXPERIENCE Undrw Loss s Expense s Ind BALANCE SHEET STRENGTH Income ($000) Pure Loss LAE Loss LAE & Other Comm. Exp. Total Exp. Div. Pol. Comb. Comb. 2009-16,769 51.5 10.5 62.0-42.1 144.6 102.5 164.5 94.1 Bermuda Limited (AMB# 087119). 2010-6,890 56.2 7.5 63.7-47.6 92.7 45.1 108.8 100.6 2011 5,150 52.2 7.4 59.6-51.9 79.8 27.9 87.4 104.9 Capitalization: Markel Bermuda s risk-adjusted capitalization is at an 2012-25,558 92.2 16.0 108.2-42.8 93.6 50.7 158.9 109.1 excellent level and remains commensurate with its rating and business profile 2013-3,814 88.7 8.1 96.8-47.5 57.9 10.3 107.2 92.8 per A.M. Best s risk-based capital model. Following the amalgamation of Max 5-Yr Total/Avg -47,881 70.9 9.8 80.7-47.0 87.1 40.1 120.8 100.5 Capital Group Ltd. and Harbor Point Limited in May 2010, shareholders equity for the consolidated organization was roughly $3 billion. Given that the integration with Markel is currently ongoing, it is possible that the capital within certain operating subsidiaries may be right sized reflect their future business positions within the group. Capital contributions, including additional capital provided via distributions made by Markel International, helped fortify the balance sheets of the member companies. In the past, the parent company has shown the willingness draw down on its available credit facility ensure that enough capital is on hand support the group s business plan. BY-LINE LOSS RATIO Product Line 5-Yr Avg Oth Liab CM 89.4 24.9 82.9 72.2 81.9 66.4 Allied Lines 83.9 98.5 57.1 37.6 29.2 67.3 Oth Liab Occur 175.4 107.8 73.7 64.4 39.1 92.9 Earthquake 8.0 78.0-1.3 5.4-10.8 21.7 Fire 66.5 163.8 68.8 33.8 62.0 80.7 Inland Marine 184.5 32.0-36.9 269.6 116.5 105.1 Homeowners 32.2 146.3 48.5 39.0 29.9 53.7 All Other -99.9-99.9-99.9 288.2 246.7-99.9 Total 88.7 92.2 52.2 56.2 51.5 70.9 DIRECT LOSS RATIO BY STATE 5-Yr Avg California -13.3 68.1 33.2 32.7 42.8 33.5 Florida 41.0 61.4 18.3 50.6 46.7 43.6 Texas 77.4 72.1 70.0 41.0 85.8 68.5 New York 256.4 419.8 117.4 67.8 61.9 187.5 New Jersey 51.2 172.9 50.6 49.4 65.7 75.7 Illinois 89.4 50.3 60.9 28.7 71.7 61.0 South Carolina 9.4 39.6-22.4 46.1 21.2 19.4 Louisiana 53.7 53.7-0.1 42.8 44.0 37.7 Georgia 89.4 59.0 24.3 45.2 23.8 52.0 Pennsylvania 90.2 101.4 100.1 72.7 67.6 86.6 All Other 77.8 65.7 74.0 56.4 53.3 66.0 Total 63.2 91.4 51.8 48.5 54.4 62.0 CAPITAL GENERATION ANALYSIS ($000) Source of Surplus Growth Pre-tax Realized Unrealized Operating Capital Income Capital Year Income Gains Taxes Gains 2009-11,683 232-3,398-653 2010-873 -2,562 326 1,348 2011 12,554 0 4,201 2012-21,947 257-3,687 2013-1,009 553 3,168 5-Yr Total -22,959-1,519-2,558 3,864 Source of Surplus Growth Change % Chg Contrib. Other in in Year Capital Changes 2009-641 -9,347-7.3 2010-28,644 2,823-28,234-23.9 2011 2,202 10,556 11.7 2012 24-1,761-19,740-19.6 2013 60,000-416 62,296 77.1 5-Yr Total 31,379 2,208 15,531 2.3 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 9 of 72

QUALITY OF SURPLUS ($000) Surplus Other Contributed Unassigned Year Notes Debt Capital Surplus 2009 150,000-31,791 2010 121,356-31,380 2011 115,156-14,624 2012 115,179-34,388 2013 175,179-32,092 Year-End Conditional Adjusted Year 2009 118,209 210 118,419 2010 89,976 421 90,397 2011 100,531 619 101,151 2012 80,791 268 81,059 2013 143,087 158 143,245 LEVERAGE ANALYSIS Company Industry Composite Res. Res. NPW NPW 2009 0.2 0.1 1.0 5.8 0.4 0.9 1.7 2.6 2010 0.5 0.3 1.6 8.9 0.4 1.0 1.8 2.6 2011 0.5 0.4 1.8 9.8 0.4 0.9 1.8 2.5 2012 0.5 0.8 2.5 15.5 0.4 0.9 1.7 2.5 2013 0.4 0.6 2.0 10.1 0.4 0.8 1.6 2.4 Current BCAR: 384.8 CEDED REINSURANCE ANALYSIS ($000) Company Bus. Reins. Ceded Ret. Recov. Reins. (%) (%) (%) Industry Composite Bus. Reins. Ceded Ret. Recov. Reins. (%) (%) (%) Ceded Reins. Total 2009 570,028 9.1 262.8 482.2 44.8 63.6 86.2 2010 658,271 16.1 425.8 731.6 51.3 57.4 78.7 2011 811,798 17.9 494.0 807.5 49.6 56.6 78.4 2012 1,053,935 17.8 883.5 999.9 43.4 56.2 80.1 2013 1,156,503 22.9 551.6 808.2 38.6 57.8 82.0 2013 REINSURANCE RECOVERABLES ($000) Paid & Unpaid Losses IBNR Unearned Premiums Other Recov* Total Reins Recov US Affiliates... 200 90 17 307 Foreign Affiliates... 137,901 297,174 149,241 584,316 US Insurers... 45,263 47,815 11,989 410 105,477 Other Non-US... 47,416 39,729 12,103 214 99,462 Total (ex US Affils)... 230,580 384,718 173,333 624 789,255 Grand Total... 230,780 384,808 173,350 624 789,562 * Includes Commissions less Funds Withheld LOSS & ALAE RESERVE DEVELOP.: CALENDAR YEAR ($000) Orig. Developed Develop. Develop. Develop. Unpaid Unpaid Loss Res. Thru 13 Orig. (%) (%) NPE (%) @12/13 Develop. (%) Calendar Year 2008 4,537 7,557 66.6 2.4 87.3 1,510 20.0 2009 11,622 15,630 34.5 3.4 79.6 4,823 30.9 2010 25,089 30,146 20.2 5.6 85.5 12,070 40.0 2011 39,858 57,958 45.4 18.0 122.7 33,007 56.9 2012 60,112 75,441 25.5 19.0 177.4 58,761 77.9 2013 86,499 86,499 173.9 86,499 100.0 LOSS & ALAE RESERVE DEVELOP.: ACCIDENT YEAR ($000) Accident Year Orig. Loss Developed Thru 13 Develop. Orig. (%) Unpaid @12/13 Acc. Yr Loss Acc. Yr Comb. 2008 4,142 6,978 68.5 1,374 103.8 240.1 2009 8,427 9,748 15.7 3,313 70.5 173.0 2010 17,027 17,906 5.2 7,247 68.0 113.1 2011 21,031 34,704 65.0 20,937 88.5 116.4 2012 34,144 34,123-0.1 25,754 99.2 149.9 2013 27,738 27,738 27,738 63.7 74.0 Bermuda Limited (AMB# 087119). Liquidity: Hisrically, the vast majority of fixed income securities have been held in highly liquid and highly rated investments. Fixed income securities fund insurance reserves and related claim payments. LIQUIDITY ANALYSIS Company Industry Composite Quick Liq. (%) Current Liq. (%) Overall Liq. (%) Agents Bal. (%) Quick Liq. (%) Current Liq. (%) Overall Liq. (%) Agents Bal. (%) 2009 50.0 121.5 224.2 37.2 35.0 151.4 172.7 8.7 2010 60.2 118.5 180.0 41.2 37.8 150.5 170.0 8.1 2011 48.2 101.7 169.2 58.4 37.4 151.8 172.2 8.2 2012 33.8 76.4 144.0 68.4 43.3 152.5 173.5 8.8 2013 80.2 107.3 155.3 34.7 50.3 161.7 178.0 9.4 CASH FLOW ANALYSIS ($000) Company Industry Composite Underw Oper Underw Oper Underw Oper Cash Cash Cash Cash Cash Cash Cash Year Flow Flow Flow Flow (%) Flow (%) Flow (%) Flow (%) 2009-35,387-30,066-2,447 24.0 36.0 105.3 128.3 2010 12,828 22,566 8,725 134.4 160.5 139.9 155.7 2011 6,304 13,803 3,908 123.0 149.8 91.1 110.8 2012-15,159-14,657 6,432 77.1 79.2 94.3 110.6 2013 77,063 84,128 106,238 419.2 448.5 82.2 98.4 5-Yr Total 45,649 75,774 122,856 Investments: The company s investment portfolio allocations have been held in highly liquid and highly rated investments, which A.M. Best views as relatively conservative. Bermuda Limited (AMB# 087119). Markel Bermuda s investment portfolio allocation is similar that of most Bermuda market companies, which A.M. Best views as relatively conservative. As part of the current integration with Markel, the investment strategy will change better optimize the tal asset portfolio of the larger organization. INVESTMENT LEVERAGE ANALYSIS (% OF ) Industry Company Composite Class Real Other Non-Affil. Class 3-6 Estate/ Invested Common Inv. Affil. 3-6 Common Bonds Mtg. Assets Scks Inv. Bonds Scks 2009 25.3 3.5 15.2 2010 3.2 16.9 2011 3.7 18.8 2012 5.3 22.0 2013 30.1 30.1 3.9 30.3 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 10 of 72

INVESTMENTS - SECURITIES Current Year Distribution of Bonds By Maturity Years Yrs-Avg 0-1 1-5 5-10 10-20 20+ Maturity Government 0.2 8.1 3 Gov t Agencies & Muni 22.6 4.9 3.0 3.2 0.7 3 Industrial & Misc 34.6 14.6 4.6 1.7 1.9 3 Total 57.4 27.6 7.6 4.8 2.5 3 Bonds (000) 75,942 98,787 113,849 109,450 112,270 US Government 16.9 16.4 36.9 34.9 31.0 Foreign Government 0.9 0.9 0.9 Foreign - All Other 5.1 4.7 4.5 3.8 2.3 State/Special Revenue - US 30.3 35.6 26.9 20.0 23.4 Industrial & Misc - US 47.7 43.4 30.8 40.4 42.4 Private Issues 4.4 6.9 2.5 2.8 2.7 Public Issues 95.6 93.1 97.5 97.2 97.3 Bond Quality (%) Class 1 98.8 96.9 99.2 98.2 99.1 Class 2 1.2 3.1 0.8 1.8 0.9 INVESTMENTS - EQUITIES Scks (000) 43,037 29,957 Unaffiliated Common 100.0 Affiliated Common 100.0 INVESTMENTS - OTHER INVESTED ASSETS Other Inv Assets (000) 127,670 21,531 15,006 11,091 2,366 Cash 62.0 33.4 64.9 83.8 19.8 Short-Term 38.0 66.2 35.1 16.2 80.2 All Other 0.5 0.0 HISTORY The company was originally incorporated as Monticello Insurance Company May 13, 1973, under the laws of Delaware and began operating on July 20, 1976. In 1999, the company received approval from the New York State Department of Insurance withdraw its New York admitted license and operate as a surplus lines carrier in New York. The company was acquired by Max Capital Group Ltd, on April 3, 2007, with a subsequent name change Max Specialty Insurance Company. In May 2010, Max Capital Group Ltd. amalgamated with Harbor Point Limited form Alterra Capital Holdings Limited, and all operating subsidiaries were rebranded under the Alterra name. In September 2010, the company changed its name Alterra Excess & Surplus Insurance Company. On May 1, 2013, Markel Corporation, a publicly traded holding company that trades on the NYSE under ticker symbol MKL acquired Alterra Capital Holdings Limited and all of its subsidiaries including the company. MANAGEMENT REINSURANCE The largest net amount insured on any single risk is $5 million. The group provides reinsurance coverage third party insurance and reinsurance companies and also purchases reinsurance protection for its insurance and reinsurance operations. On an internal basis, Markel Bermuda provides reinsurance coverage its operating affiliates in the U.S. and Europe through respective quota share agreements. Markel Corporation arranges catastrophe coverage for all property Insurance units within Markel North America including Global Ocean Marine and Global Inland Marine divisions of Markel North America, resulting in higher limits and more cost effective coverage. At May 1, 2013, coverage for wind and earthquake was placed on a traditional and non-traditional basis. The traditional reinsurance coverage is placed 80% of the combined layer of $225 million excess of $100 million and 27.14% of the layer $175 million excess $325 million. The non-traditional reinsurance coverage is placed at 80% of the layer of $50 million excess of $50 million and $50 million part of the layer $175 million excess of $325 million or $50 million excess of $50 million 2nd, 3rd event cover. The non-traditional reinsurance is a p and drop reinsurance cover that affords a tal of $80 million in limit. Additionally, a 50% quota share was placed with a maximum $225 million occurrence limit. The company s principal non-affiliated reinsurers are: Lloyd s Syndicate 4000, Odyssey Reinsurance Company, Lloyd s Syndicate 2003, Swiss Reinsurance America Corporation, Aeolus Re Ltd., Munich Reinsurance America Inc., Tokio Millennium Re AG, Everest Reinsurance Company, General Reinsurance Corporation and Validus Reinsurance, Ltd. BALANCE SHEET ADMITTED ASSETS ($000) 12/31/13 12/31/12 13% 12% Bonds... 75,942 98,787 18.9 37.3 Common sck... 43,037 10.7 Cash & short-term invest... 127,670 21,431 31.7 8.1 Other non-affil inv asset... 100 0.0 Total invested assets... 246,648 120,318 61.3 45.4 Premium balances... 49,682 55,352 12.4 20.9 Accrued interest... 631 729 0.2 0.3 All other assets... 105,179 88,716 26.2 33.5 Total assets... 402,140 265,115 100.0 100.0 LIABILITIES & SURPLUS ($000) 12/31/13 12/31/12 13% 12% Loss & LAE reserves... 89,258 62,216 22.2 23.5 Unearned premiums... 27,014 24,619 6.7 9.3 Conditional reserve funds... 158 268 0.0 0.1 All other liabilities... 142,624 97,220 35.5 36.7 Total liabilities... 259,053 184,323 64.4 69.5 Capital & assigned surplus... 175,179 115,179 43.6 43.4 Unassigned surplus... -32,092-34,388-8.0-13.0 Total policyholders surplus... 143,087 80,791 35.6 30.5 Total liabilities & surplus... 402,140 265,115 100.0 100.0 Back Top Officers: President, F. Michael Crowley; Senior Vice President, Richard R. Whitt, III; Vice President, Treasurer and Chief Financial Officer, Anne G. Walseki; Vice Presidents, Nora N. Crouch, Dewey M. Jones, Bryan W. Sanders; Secretary, Richard R. Grinnan; Controller, Robert G. Whitt, III. Direcrs: Gerard Albanese, Jr., F. Michael Crowley, Britn L. Glisson, Bradley J. Kiscaden, Richard R. Whitt, III. REGULATORY An examination of the financial condition was made as of December 31, 2010, by the insurance department of Delaware. The 2013 annual independent audit of the company was conducted by KPMG, LLP. The annual statement of actuarial opinion is provided by G. Chrispher Nyce, FCAS, MAAA. 2014 A.M. Best Company, Oldwick, NJ 08858 Printed June 2, 2014 www.ambest.com Page 11 of 72