United Home Insurance Company

QUARTERLY STATEMENT of Paragould in the state of Arkansas 2017 TO THE Insurance Department STATE OF Arkansas FOR THE QUARTER ENDED MARCH 31, 2017 PROPERTY AND CASUALTY 2017

PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION QUARTERLY STATEMENT AS OF MARCH 31, 2017 CONDITION AND AFFAIRS 17647201720100101 2017 Document Code: 201 NAIC Group Code 0000, 0000 NAIC Company Code 17647 Employer s ID Number 73-1233518 (Current Period) (Prior Period) Organized under the Laws of Arkansas, State of Domicile or Port of Entry AR Country of Domicile United States of America Incorporated/Organized 07/17/1984 Commenced Business 03/01/1985 Statutory Home Office 1201 West Court Street, Paragould, AR, US 72450 (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 1201 West Court Street (Street and Number) Paragould, AR, US 72450 (870)236-2208 (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address P.O. Box 1546, Paragould, AR, US 72451 (Street and Number or P.O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records 1201 West Court Street (Street and Number) Paragould, AR, US 72450 (870)236-2208 (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Web Site Address www.unitedhomeins.com Statutory Statement Contact Chandra L McGowan (870)236-2208-305 (Name) (Area Code)(Telephone Number)(Extension) cmcgowan@unitedhomeins.com (870)236-5717 (E-Mail Address) (Fax Number) OFFICERS Name Kelly L. Ford William Kyle Harris William Kyle Harris William Kyle Harris, Vice President Kelly Lewis Ford Michael Thomas Harris Matthew Stephen Miller OTHERS Title President Secretary Treasurer DIRECTORS OR TRUSTEES William Kyle Harris Michael Ray Cline John Raymond Hines State of Arkansas County of United States ss The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement. (Signature) (Signature) (Signature) Kelly L Ford William K Harris William K Harris (Printed Name) (Printed Name) (Printed Name) 1. 2. 3. President Secretary Treasurer (Title) (Title) (Title) Subscribed and sworn to before me this a. Is this an original filing? Yes[X] No[ ] day of, 2017 b. If no, 1. State the amendment number 2. Date filed 3. Number of pages attached (Notary Public Signature)

Q2 STATEMENT AS OF ASSETS Current Statement Date 4 1 2 3 Net Admitted December 31 Nonadmitted Assets Prior Year Net Assets Assets (Cols. 1-2) Admitted Assets 1. Bonds............................................................................................ 23,517,811................................ 23,517,811......... 22,926,203 2. Stocks: 2.1 Preferred stocks.................................... 2.2 Common stocks........................................................................... 634,668.................................... 634,668............. 642,336 3. Mortgage loans on real estate: 3.1 First liens............................................ 3.2 Other than first liens............................... 4. Real estate: 4.1 Properties occupied by the company (less $...0 encumbrances)......................................................................... 2,021,828................................. 2,021,828.......... 1,992,291 4.2 Properties held for the production of income (less $...0 encumbrances)..................................... 4.3 Properties held for sale (less $...0 encumbrances)....................................................................................................... 5. Cash ($...3,265,924), cash equivalents ($...0) and short-term investments ($...0)..................................................................... 3,265,924................................. 3,265,924.......... 3,290,548 6. Contract loans (including $...0 premium notes)..................................................................................................................... 7. Derivatives................................................... 8. Other invested assets...................................... 9. Receivables for securities................................. 10. Securities lending reinvested collateral assets......... 11. Aggregate write-ins for invested assets................. 12. Subtotals, cash and invested assets (Lines 1 to 11)..................................... 29,440,230................................ 29,440,230......... 28,851,377 13. Title plants less $...0 charged off (for Title insurers only)......................................................................................................... 14. Investment income due and accrued........................................................... 175,089.................................... 175,089............. 207,713 15. Premiums and considerations: 15.1 Uncollected premiums and agents balances in the course of collection................................................................................ 5,093,368................................. 5,093,368.......... 5,035,167 15.2 Deferred premiums, agents balances and installments booked but deferred and not yet due (including $...0 earned but unbilled premiums)................................ 15.3 Accrued retrospective premiums ($...0) and contracts subject to redetermination ($...0)....... 16. Reinsurance: 16.1 Amounts recoverable from reinsurers.............................................. 1,431,411................................. 1,431,411.......... 1,028,946 16.2 Funds held by or deposited with reinsured companies............................................................................................................ 16.3 Other amounts receivable under reinsurance contracts............................ 419,530.................................... 419,530............. 419,530 17. Amounts receivable relating to uninsured plans....... 18.1 Current federal and foreign income tax recoverable and interest thereon................ 102,219.................................... 102,219............. 102,219 18.2 Net deferred tax asset.......................................................................... 1,326,972................................. 1,326,972............. 948,277 19. Guaranty funds receivable or on deposit................ 20. Electronic data processing equipment and software............................................ 7,123....................................... 7,123................ 7,860 21. Furniture and equipment, including health care delivery assets ($...0)........................................................................................ 10,983.............. 10,983..................... 0....................... 22. Net adjustments in assets and liabilities due to foreign exchange rates................................................................................................. 23. Receivables from parent, subsidiaries and affiliates......................................... 616,117.................................... 616,117............. 166,117 24. Health care ($...0) and other amounts receivable.................................................................................................................. 25. Aggregate write-ins for other-than-invested assets.......................................... 615,485............. 438,675............. 176,810............. 218,203 26. TOTAL assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25).................................................. 39,238,526............. 449,658......... 38,788,868......... 36,985,409 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts..................................................... 28. TOTAL (Lines 26 and 27).................................................................... 39,238,526............. 449,658......... 38,788,868......... 36,985,409 DETAILS OF WRITE-INS 1101.................................................................. 1102.................................................................. 1103.................................................................. 1198. Summary of remaining write-ins for Line 11 from overflow page.......................................................................................................... 1199. TOTALS (Lines 1101 through 1103 plus 1198) (Line 11 above).......................................................................................................... 2501. Company Vehicles................................................................................. 438,675............. 438,675..................... 0....................... 2502. Other Receivable.................................. 30,286 2503. Prepaid Reinsurance.............................................................................. 176,810.................................... 176,810............. 187,917 2598. Summary of remaining write-ins for Line 25 from overflow page.......................................................................................................... 2599. TOTALS (Lines 2501 through 2503 plus 2598) (Line 25 above)........................... 615,485............. 438,675............. 176,810............. 218,203

Q3 STATEMENT AS OF LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current December 31, Statement Date Prior Year 1. Losses (current accident year $...3,319,981)................................................................................................ 7,994,635.......... 6,107,716 2. Reinsurance payable on paid losses and loss adjustment expenses........................................................................................................... 3. Loss adjustment expenses...... 255,943............. 270,373 4. Commissions payable, contingent commissions and other similar charges.................................................................. 585,771............. 616,790 5. Other expenses (excluding taxes, licenses and fees)............................................................................................. 38,334............. 507,430 6. Taxes, licenses and fees (excluding federal and foreign income taxes)...................................................................... (10,697)....................... 7.1 Current federal and foreign income taxes (including $...0 on realized capital gains (losses))..................................................................... 7.2 Net deferred tax liability........................................... 8. Borrowed money $...0 and interest thereon $...0..................................................................................... 972.................. 972 9. Unearned premiums (after deducting unearned premiums for ceded reinsurance of $...4,819,437 and including warranty reserves of $...0 and accrued accident and health experience rating refunds including $...0 for medical loss ratio rebate per the Public Health Service Act)............................................................................ 14,816,318......... 14,295,843 10. Advance premium................ 957,558............. 591,285 11. Dividends declared and unpaid: 11.1 Stockholders............................................. 11.2 Policyholders............................................. 12. Ceded reinsurance premiums payable (net of ceding commissions)........................................................................ 1,268,939.......... 1,086,739 13. Funds held by company under reinsurance treaties......... 14. Amounts withheld or retained by company for account of others................................................................................................................ 15. Remittances and items not allocated........................... 16. Provision for reinsurance (including $...0 certified).. 17. Net adjustments in assets and liabilities due to foreign exchange rates........................................................................................................ 18. Drafts outstanding................................................. 19. Payable to parent, subsidiaries and affiliates................. 20. Derivatives.......................................................... 21. Payable for securities............................................. 22. Payable for securities lending................................... 23. Liability for amounts held under uninsured plans............. 24. Capital notes $...0 and interest thereon $...0..................................................................................................................... 25. Aggregate write-ins for liabilities................................. 26. TOTAL liabilities excluding protected cell liabilities (Lines 1 through 25).................................................................. 25,907,772......... 23,477,148 27. Protected cell liabilities............................................ 28. TOTAL liabilities (Lines 26 and 27).............................................................................................................. 25,907,772......... 23,477,148 29. Aggregate write-ins for special surplus funds................. 30. Common capital stock........ 2,500,000.......... 2,500,000 31. Preferred capital stock............................................ 32. Aggregate write-ins for other-than-special surplus funds.... 33. Surplus notes....................................................... 34. Gross paid in and contributed surplus............................................................................................................ 1,037,931.......... 1,037,931 35. Unassigned funds (surplus).. 9,343,165.......... 9,970,330 36. Less treasury stock, at cost: 36.1...0 shares common (value included in Line 30 $...0)................................................................................................. 36.2...0 shares preferred (value included in Line 31 $...0)................................................................................................. 37. Surplus as regards policyholders (Lines 29 to 35, less 36).................................................................................. 12,881,096......... 13,508,261 38. TOTALS (Page 2, Line 28, Col. 3)............................................................................................................... 38,788,868......... 36,985,409 DETAILS OF WRITE-INS 2501......................................................................... 2502......................................................................... 2503......................................................................... 2598. Summary of remaining write-ins for Line 25 from overflow page................................................................................................................. 2599. TOTALS (Lines 2501 through 2503 plus 2598) (Line 25 above)................................................................................................................. 2901......................................................................... 2902......................................................................... 2903......................................................................... 2998. Summary of remaining write-ins for Line 29 from overflow page................................................................................................................. 2999. TOTALS (Lines 2901 through 2903 plus 2998) (Line 29 above)................................................................................................................. 3201......................................................................... 3202......................................................................... 3203......................................................................... 3298. Summary of remaining write-ins for Line 32 from overflow page................................................................................................................. 3299. TOTALS (Lines 3201 through 3203 plus 3298) (Line 32 above).................................................................................................................

Q4 STATEMENT AS OF STATEMENT OF INCOME 1 2 3 Current Year Prior Year Prior Year Ended to Date to Date December 31 UNDERWRITING INCOME 1. Premiums earned 1.1 Direct (written $...10,777,512)................................................................................... 10,257,037......... 10,657,777......... 44,613,256 1.2 Assumed (written $...0).......................... 1.3 Ceded (written $...0)......................................................................................... 2,793,472.......... 3,216,523......... 15,059,875 1.4 Net (written $...10,777,512)....................................................................................... 7,463,565.......... 7,441,254......... 29,553,380 DEDUCTIONS: 2. Losses incurred (current accident year $...0) 2.1 Direct.................................................................................................................... 8,263,682.......... 5,755,639......... 23,400,434 2.2 Assumed..................................................... 2.3 Ceded................................................................................................................... 2,280,523.......... 2,188,620.......... 8,340,650 2.4 Net. 5,983,159.......... 3,567,019......... 15,059,784 3. Loss adjustment expenses incurred............................................................................................. 401,350............. 418,912.......... 1,473,260 4. Other underwriting expenses incurred....................................................................................... 2,619,018.......... 2,528,369......... 10,262,683 5. Aggregate write-ins for underwriting deductions................ 6. TOTAL underwriting deductions (Lines 2 through 5)...................................................................... 9,003,527.......... 6,514,299......... 26,795,727 7. Net income of protected cells....................................... 8. Net underwriting gain or (loss) (Line 1 minus Line 6 + Line 7)......................................................... (1,539,962)............. 926,955.......... 2,757,653 INVESTMENT INCOME 9. Net investment income earned................................................................................................... 169,455............. 150,079............. 593,622 10. Net realized capital gains (losses) less capital gains tax of $...0.............................................................................. 132................ 9,150 11. Net investment gain (loss) (Lines 9 + 10)....................................................................................... 169,455............. 150,211............. 602,772 OTHER INCOME 12. Net gain or (loss) from agents or premium balances charged off (amount recovered $...0 amount charged off $...0).................................. 13. Finance and service charges not included in premiums..................................................................... 397,774............. 397,446.......... 1,560,710 14. Aggregate write-ins for miscellaneous income.................. 15. TOTAL other income (Lines 12 through 14).................................................................................... 397,774............. 397,446.......... 1,560,710 16. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines 8 + 11 + 15)..................................................................................... (972,733).......... 1,474,612.......... 4,921,135 17. Dividends to policyholders.......................................... 18. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 16 minus Line 17)............................................................................... (972,733).......... 1,474,612.......... 4,921,135 19. Federal and foreign income taxes incurred........................................................................................................... 460,691.......... 1,503,832 20. Net income (Line 18 minus Line 19) (to Line 22)............................................................................ (972,733).......... 1,013,921.......... 3,417,303 CAPITAL AND SURPLUS ACCOUNT 21. Surplus as regards policyholders, December 31 prior year............................................................. 13,508,261......... 11,104,746......... 11,104,746 22. Net income (from Line 20)...................................................................................................... (972,733).......... 1,013,921.......... 3,417,303 23. Net transfers (to) from Protected Cell accounts................. 24. Change in net unrealized capital gains or (losses) less capital gains tax of $...0................................ (7,668).................. 464............. 157,217 25. Change in net unrealized foreign exchange capital gain (loss)..................................................................................................................... 26. Change in net deferred income tax.............................................................................................. 378,696.............. (1,250)............ (57,309) 27. Change in nonadmitted assets.................................................................................................. (25,460)............ (93,440)........... (113,696) 28. Change in provision for reinsurance............................... 29. Change in surplus notes............................................ 30. Surplus (contributed to) withdrawn from Protected cells....... 31. Cumulative effect of changes in accounting principles......... 32. Capital changes: 32.1 Paid in........................................................ 32.2 Transferred from surplus (Stock Dividend) 1,300,000 32.3 Transferred to surplus..................................... 33. Surplus adjustments: 33.1 Paid in........................................................ 33.2 Transferred to capital (Stock Dividend).. (1,300,000) 33.3 Transferred from capital................................... 34. Net remittances from or (to) Home Office........................ 35. Dividends to stockholders............................ (1,000,000) 36. Change in treasury stock............................................ 37. Aggregate write-ins for gains and losses in surplus............ 38. Change in surplus as regards policyholders (Lines 22 through 37)...................................................... (627,165)............. 919,695.......... 2,403,515 39. Surplus as regards policyholders, as of statement date (Lines 21 plus 38)........................................... 12,881,096......... 12,024,440......... 13,508,261 DETAILS OF WRITE-INS 0501........................................................................... 0502........................................................................... 0503........................................................................... 0598. Summary of remaining write-ins for Line 5 from overflow page..................................................................................................................... 0599. TOTALS (Lines 0501 through 0503 plus 0598) (Line 5 above)..................................................................................................................... 1401........................................................................... 1402........................................................................... 1403........................................................................... 1498. Summary of remaining write-ins for Line 14 from overflow page................................................................................................................... 1499. TOTALS (Lines 1401 through 1403 plus 1498) (Line 14 above)................................................................................................................... 3701........................................................................... 3702........................................................................... 3703........................................................................... 3798. Summary of remaining write-ins for Line 37 from overflow page................................................................................................................... 3799. TOTALS (Lines 3701 through 3703 plus 3798) (Line 37 above)...................................................................................................................

Q5 STATEMENT AS OF CASH FLOW 1 2 3 Current Prior Prior Year Year Year Ended To Date To Date December 31 Cash from Operations 1. Premiums collected net of reinsurance................................................................................... 8,474,312............ 7,442,087........... 31,430,007 2. Net investment income......................................................................................................... 204,624............... 177,557............... 584,244 3. Miscellaneous income.......................................................................................................... 397,774............. (338,388)............ 1,322,575 4. TOTAL (Lines 1 to 3)........................................................................................................ 9,076,709............ 7,281,256........... 33,336,827 5. Benefit and loss related payments........................................................................................ 4,498,706............ 3,943,996........... 15,946,522 6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts...................................................................................... 7. Commissions, expenses paid and aggregate write-ins for deductions.............................................. 3,515,324............ 2,986,794........... 11,562,478 8. Dividends paid to policyholders..................................... 9. Federal and foreign income taxes paid (recovered) net of $...0 tax on capital gains (losses)........... (1)........................................ 786,559 10. TOTAL (Lines 5 through 9)................................................................................................. 8,014,029............ 6,930,790........... 28,295,558 11. Net cash from operations (Line 4 minus Line 10)....................................................................... 1,062,681............... 350,466............ 5,041,268 Cash from Investments 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds................................................................................................................... 110,000............... 705,000............ 2,197,616 12.2 Stocks........................................................ 12.3 Mortgage loans.............................................. 12.4 Real estate................................................... 12.5 Other invested assets...................................... 12.6 Net gains or (losses) on cash, cash equivalents and short-term investments.......................................................................................... 12.7 Miscellaneous proceeds................................................................................................ 4,964.................. 7,107................ 18,816 12.8 TOTAL investment proceeds (Lines 12.1 to 12.7)............................................................... 114,964............... 712,107............ 2,216,432 13. Cost of investments acquired (long-term only): 13.1 Bonds................................................................................................................... 704,149............ 1,366,384............ 6,805,135 13.2 Stocks..................... 147,680............... 298,974 13.3 Mortgage loans.............................................. 13.4 Real estate.............................................................................................................. 34,500............... 236,180............... 526,326 13.5 Other invested assets...................................... 13.6 Miscellaneous applications................................ 13.7 TOTAL investments acquired (Lines 13.1 to 13.6).............................................................. 738,648............ 1,750,244............ 7,630,436 14. Net increase (or decrease) in contract loans and premium notes................................................................................................................... 15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)................................................ (623,685)........... (1,038,137)........... (5,414,004) Cash from Financing and Miscellaneous Sources 16. Cash provided (applied): 16.1 Surplus notes, capital notes............................... 16.2 Capital and paid in surplus, less treasury stock....... 16.3 Borrowed funds............................................. 16.4 Net deposits on deposit-type contracts and other insurance liabilities................................................................................................... 16.5 Dividends to stockholders.................... 1,000,000 16.6 Other cash provided (applied).................................................................................... (463,619)............... (67,119)............. (369,649) 17. Net cash from financing and miscellaneous sources (Line 16.1 through 16.4 minus Line 16.5 plus Line 16.6)................................................................................................................. (463,619)............... (67,119)........... (1,369,649) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)........... (24,623)............. (754,790)........... (1,742,384) 19. Cash, cash equivalents and short-term investments: 19.1 Beginning of year.................................................................................................. 3,290,548............ 5,032,932............ 5,032,932 19.2 End of period (Line 18 plus Line 19.1)......................................................................... 3,265,924............ 4,278,143............ 3,290,548 Note: Supplemental Disclosures of Cash Flow Information for Non-Cash Transactions: 20.0001.........................................................................

1. Summary of Significant Accounting Policies A. Accounting Practices Notes to Financial Statement A. The financial statements of are presented on the basis of accounting practices prescribed or permitted by the Arkansas Insurance Department. The National Association of Insurance Commissioners Accounting Practices and Procedures Manual has been adopted as a component of prescribed or permitted practices by the state of Arkansas. B. The preparation of financial statements in conformity with Statutory Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires disclosure of contingent assets and liabilities at the date of financial statements and reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. C. Premiums are earned over the terms of the related insurance policies and reinsurance contracts. Unearned premium reserves are established to cover the unexpired portion of premiums written. Such reserves are computed by pro rata methods for direct business and are based on reports received from ceding companies for reinsurance. Expenses incurred in connection with acquiring new insurance business, including such acquisition cost as sales commissions, are charged to operations as incurred. In addition the company also uses the following accounting policies: a. Short term investments, if any, are listed at cost b. Bonds are stated at amortized cost using the interest method. c. Publically traded common stocks, if any, are listed at market value d. No preferred stock e. No mortgage loans f. Book value for mortgage-backed securities is the cost of remaining principal plus accrual of the discount or less amortization of the premium over the life of the bond to maturity g. See # 3 h. No joint ventures, partnerships or LLC s i. No derivatives j. No anticipated investment income utilized in calculations k. Case loss reserve estimates per onsite inspection of damage with IBNR tied to historical norms. There are no liability exposures to toxic waste, asbestos, ect. l. Company has not changed its capitalization policy form prior period m. No pharmaceutical rebate receivable SSAP # F/S Page F/S Line # 2017 2016 NET INCOME (1) State basis (Page 4, Line 20, Columns 1 & 3) XXX XXX XXX (972,733) 3,417,304 (2) State Prescribed Practices that increase/(decrease) NAIC SAP: (3) State Permitted Practices that increase/(decrease) NAIC SAP: (4) NAIC SAP (1-2-3=4) XXX XXX XXX (972,733) 3,417,304 SURPLUS (5) State basis (Page 3, Line 37, Columns 1 & 2) XXX XXX XXX 12,881,096 13,508,261 (6) State Prescribed Practices that increase/(decrease) NAIC SAP: (7) State Permitted Practices that increase/(decrease) NAIC SAP: (8) NAIC SAP (5-6-7=8) XXX XXX XXX 12,881,096 13,508,261 2. Accounting Changes and Corrections of Errors The Company did not have any material changes in accounting principles and/or corrections of errors. 3. Business Combinations and Goodwill Not applicable. The Company did not have any business combinations. 4. Discontinued Operations Not applicable. The Company did not discontinue any of its operations. 5. Investments A. Mortgage Loans, including Mezzanine Real Estate Loans Not Applicable. The Company has no investments in real estate mortgage loans B. Debt Restructuring Not Applicable. The Company did not have any debt investments restructured during 2016. C. Reverse Mortgages Not Applicable. The Company has no investments in reverse mortgages. D. Loan-Backed Securities Not Applicable. The Company has no investments in loan-backed securities E. Repurchase Agreements and/or Securities Lending Transactions Not Applicable. The Company has no investments in repurchase agreement securities requiring collateral. F. Real Estate Not Applicable. G. Investments in Low-Income Housing Tax Credits (LIHTC) Q6

Not applicable Notes to Financial Statement H. Restricted Assets As of 03/31/2017 had restricted assets on deposit with Arkansas Insurance Department valued at 1,914,510. (1) Restricted Assets (Including Pledged) Gross (Admitted & Nonadmited) Restricted Current Year Current Year 6 7 8 9 Percentage 1 2 3 4 5 G/A Total Protected Protected Cell Account Total 10 Gross (Admitted & Total Supporting Cell Assets Increase/ Total Admitted Nonadmitted General Protected Account Supporting Total (Decrease) Nonadmitt Restricted ) Restricted Restricted Asset Account Cell Account Restricted G/A Total From (5 minus ed (5 minus to Total Category (G/A) Activity (a) Assets Activity (b) (1 plus 3) Prior Year 6) Restricted 8) Assets (c) 11 Admitted Restricted to Total Admitted Assets (d) (a) Subject to contractual obligation for which liability is not shown % % (b) Collateral held under security lending agreements % % (c) Subject to repurchase agreements % % (d) Subject to reverse repurchase agreements % % (e) Subject to dollar repurchase agreements % % (f) Subject to dollar reverse repurchase agreements % % (g) Placed under option contracts % % (h) Letter stock or securities restricted as to sale excluding FHLB capital stock % % (i) FHLB capital stock % % (j) On deposit with states 1,914,510 1,914,5 10 1,616,363 298,147 1,914,510 4.879% 4.936% (k) On deposit with other regulatory bodies % % (l) Pledged as collateral to FHLB (including assets backing funding agreements) % % (m Pledged as collateral ) not captured in other categories % % (n) Other restricted assets % % (o) Total Restricted Assets 1,914,510 1,914,5 10 1,616,363 298,147 1,914,510 4.879% 4.936% (a) Subset of column 1 (b) Subset of column 3 (c) Column 5 divided by Asset Page Column 1,Line 28 (d) Column 9 divided by Asset Page, Column 3, Line 28 I. Working Capital Finance Investments Not Applicable. J. Offsetting and Netting of Assets and Liabilities Not Applicable. K. Structured Notes Not Applicable L. 5* Securities None Not Applicable. 6. Joint Ventures, Partnerships and Limited Liability Companies A. The Company does not have any investments in joint ventures that exceed 10% of admitted assets. B. The Company did not recognize any impairment in its joint ventures 7. Investment Income The Company does not have any investment income due and accrued over 90 days past due and does not have any amounts excluded from surplus 8. Derivative Instruments Not applicable. The Company does not invest in derivative type investments 9. Income Taxes Q6.1

Notes to Financial Statement A. The components of the net deferred tax asset/(liability) at are as follows: 1. 2. 3. (1) Ordinary 03/31/2017 12/31/2016 Change (2) (3) (4) (5) (6) (7) (8) (Col. 1 + (Col. 4 + (Col. 1 (Col. 2 Capital 2) Total Ordinary Capital 5) Total 4) 5) (9) (Col. 7 + 8) Total Description Ordinary Capital (a) Gross Deferred Tax Assets 1,399,866 67,568 1,467,434 1,031,062 66,368 1,097,430 368.804 1,200 370,004 (b) Statutory Valuation Allowance Adjustments (c) Adjusted Gross Deferred Tax Assets (1a 1b) 1,399,866 67,568 1,467,434 1,031,062 66,368 1,097,430 368.804 1,200 370,004 (d) Deferred Tax Assets Nonadmitted (e) Subtotal Net Admitted Deferred Tax Asset (1c 1d) 1,399,866 67,568 1,467,434 1,031,062 66,368 1,097,430 368.804 1,200 370,004 (f) Deferred Tax Liabilities 68,067 72,396 140,463 74,150 75,003 149,153 (6,083) (2,607) (8,690) (g) Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (1e 1f) 1,331,799 (4,828) 1,326,971 956,912 (8,635) 948,277 374,887 3,807 378,694 03/31/2017 12/31/2016 Change (1) (2) (3) (4) (5) (6) (7) (8) (9) Admission Calculation Components SSAP No. 101 Ordinary Capital (Col. 1 + 2) Total Ordinary Capital (Col. 4 + 5) Total (Col. 1 4) Ordinary (Col. 2 5) Capital (Col. 7 + 8) Total (a) Federal Income Taxes Paid In Prior Years Recoverable Through Loss Carrybacks (b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Excluding The Amount Of Deferred Tax Assets From 2(a) Above) After Application of the Threshold Limitation (The Lesser of 2(b)1 and 2(b)2 below) 1,399,866 49,606 1,449,472 1,031,062 48,406 1,079,468 368,804 1,200 370,004 1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the 2. Balance Sheet Date Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold XXX XXX XXX XXX XXX XXX (c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities 17,962 17,962 17,962 17,962 (d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101 Total (2(a) + 2(b) + 2(c)) 1,399,866 67,568 1,467,434 1,031,062 66,368 1,097,430 368,804 1,200 370,004 Description 2017 2016 (a) Ratio Percentage Used To Determine Recovery Period And Threshold Limitation Amount. 366.000 366.000 (b) Amount Of Adjusted Capital And Surplus Used To Determine Recovery Period And Threshold Limitation in 2(b)2 Above. 12,559,984 12,559,984 4. Impact of Tax Planning Strategies (a). 03/31/2017 12/31/2016 Change (1) (2) (3) (4) (5) (Col. 1 3) Capital Ordinary Capital Ordinary (6) (Col. 2-4) Capital Impact of Tax-Planning Strategies Ordinary Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by tax character as a percentage 1. Adjusted gross DTAs amount from Note 9A1(c) 1,399,866 67,568 1,031,062 66,368 368,804 1,200 2. Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies 3. Net Admitted Adjusted Gross DTAs amount from Note 9A1(e) 1,399,866 67,568 1,031,062 66,368 368,804 1,200 4. Percentage of net admitted adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies (b) Does the Company s tax-planning strategies include the use of reinsurance? Yes No x B. Regarding deferred tax liabilities that are not recognized: C. Current income taxes incurred consist of the following major components: (1) (2) (3) (Col. 1 2) Change Description 03/31/2017 12/31/2016 1. Current Income Tax (a) Federal 0 1,053,832 (1,503,832) (b) Foreign (c) Subtotal 0 1,503,832 (1,503,832) (d) Federal income tax on net capital gains (e) Utilization of capital loss carry-forwards Q6.2

Notes to Financial Statement (f) Other (g) Federal and foreign income taxes incurred 0 1,503,832 (1,503,832) 2. Deferred Tax Assets: (a) Ordinary (1) Discounting of unpaid losses 83,111 58,944 24,167 (2) Unearned premium reserve 1,007,510 972,117 35,393 (3) Policyholder reserves (4) Investments (5) Deferred acquisition costs (6) Policyholder dividends accrual (7) Fixed assets (8) Compensation and benefits accrual (9) Pension accrual (10) Receivables nonadmitted (11) Net operating loss carry-forward 309,245 309,245 (12) Tax credit carry-forward (13) Other (including items < 5% of total ordinary tax assets) (99) Subtotal 1,399,866 1,031,061 368,805 (b) Statutory valuation allowance adjustment (c) Nonadmitted (d) Admitted ordinary deferred tax assets (2a99 2b 2c) 1,399,866 1,031,061 368,805 (e) Capital: (1) Investments 49,606 48,406 1,200 (2) Net capital loss carry-forward 17,962 17,962 (3) Real estate (4) Other (including items < 5% of total capital tax assets) (99) Subtotal 67,568 66,368 1,200 (f) Statutory valuation allowance adjustment (g) Nonadmitted (h) Admitted capital deferred tax assets (2e99 2f 2g) 67,568 66,368 1,200 (i) Admitted deferred tax assets (2d + 2h) 1,467,434 1,097,429 370,005 3. Deferred Tax Liabilities: (a) Ordinary (1) Investments (2) Fixed assets 68,067 74,150 (6,083) (3) Deferred and uncollected premium (4) Policyholder reserves (5) Other (including items < 5% of total ordinary tax liabilities) (99) Subtotal 68,067 74,150 (6,083) (b) Capital: (1) Investments 72,396 75,003 (2,607) (2) Real estate (3) Other (including items < 5% of total capital tax liabilities) (99) Subtotal 72,396 75,003 (2,607) (c) Deferred tax liabilities (3a99 + 3b99) 140,463 149,153 (8,690) 4. Net deferred tax assets/liabilities (2i 3c) 1,326,971 948,276 378,695 10. Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties A. As of, all outstanding shares of the Company are owned by the parent company, Farmers Home Holding Company. B. is owned by the same parent company as Ford, Harris, and Lamb Insurance Agency, which writes business for. had written premiums of 10,777,512 in the first quarter of that 307,009 was written by Ford Harris and Lamb. paid $56,293.96 in commission to Ford Harris and Lamb in the first quarter of 2017. C. None D. None E. As of, the Company has a $616,117 receivable from Farmers Home Holding Company. F. None G. All outstanding shares of are owned by the Parent Company, Farmers Home Holding Company, an insurance holding company domiciled in the state of Arkansas. H. Not Applicable. I. Not Applicable. J. Not Applicable. K. Not Applicable. L. Not Applicable. M. Not Applicable. N. Not Applicable. 11. Debt A. Debt The Company has no capital notes. It does have a $1,000,000 line of credit with First National Bank of Paragould, AR. The outstanding balance at 03/31/2017 was $972.44. This line of credit is collateralized by a $1,200,000 certificate of deposit at the same bank. B. FHLB (Federal Home Loan Bank) Agreements Not Applicable. 12. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans. Not Applicable 13. Capital and Surplus, Dividend Restrictions and Quasi-Reorganizations 1. The Company has 1,000,000 shares authorized, 1,000,000 shares issued and 1,000,000 shares outstanding. All shares are Class A Shares. There are 1,000,000 shares of common stock authorized and outstanding with a par value of $2.50 per share 2. The Company has no preferred stock outstanding 3. Without prior approval from the Arkansas Insurance Department, Dividends to shareholders are limited by the laws of the Company s state of incorporation, Arkansas, to 10% of surplus. However, since dividends paid by United Home to the holding company are used to retire debt, the Q6.3

Notes to Financial Statement Company is currently under an arrangement with the Arkansas Department not to pay any dividend without the written consent of the Department 4. An ordinary dividend in the amount of 1,000,000 on 12/15/2016 was paid by the company. A stock dividend in the amount of $1,300,000 on 12/31/2016 was also paid by the Company. 5. Within the limitations of (3) above, there are no restrictions placed on the portion of Company profits that may be paid as ordinary dividends to stockholders. 6. There were no restrictions placed on the company s surplus, including for whom the surplus is being held. 7. The Arkansas Insurance Code requires that every company maintain a minimum surplus of $750,000 (Section 2363-205 and 2363-207). By any amount that unassigned surplus does not equal the minimum, the Company agrees to recognize that amount of its paid in capital as surplus in order to meet the requirement. 8. The amounts of stock held by the Company, including stock of affiliated companies, for special purposes are: None 9. The Company does not have any changes in balances of special surplus funds from the prior year. 10. The portion of unassigned funds (surplus) represented or reduced by cumulative unrealized gains and losses is $0 11. The Company does not have any surplus debentures or similar obligations. 12. The Company does not have any restatement due to prior quasi-reorganizations. 14. Liabilities, Contingencies and Assessments A. Contingent Commitments The Company has no commitments, contingent commitments or guarantees or commitments to provide additional capital contributions. B. Assessments Not Applicable. C. Gain Contingencies The Company has recorded no gain contingencies as of December 31, 2016. D. Claims Related to Extra Contractual Obligations and Bad Faith Losses Stemming from Lawsuits The Company has no claims related to extra contractual obligations or bad faith losses. E. Product Warranties Not Applicable. F. Joint and Several Liabilities Not Applicable. G. All Other Contingencies In the normal course of business, the Company is subject to various contingent liabilities, including possible income tax assessment resulting from issues raised by taxing or regulatory authorities in their regular examinations. Management does not anticipate any significant losses or costs to result from any known or existing contingencies. There are no material legal proceedings other than those arising in the normal course of business and which generally pertain to claim matters relating to insurance policies and contracts issued by the Company. 15. Leases A. Lessee Operating Lease Not Applicable. B. Lessor Leases Not Applicable. 16. Information About Financial Instruments With Off-Balance-Sheet Risk And Financial Instruments With Concentrations of Credit Risk The Company does not invest in swaps, futures, derivatives or options. 17. Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities Not Applicable. 18. Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured Plans The Company does not write insurance for these types of A&H Plans. 19. Direct Premium Written/Produced by Managing General Agents/Third Party Administrators Not Applicable. 20. Fair Value Measurements A. (1) Fair Value Measurements at Reporting Date Description for each class of asset or liability (Level 1) (Level 2) (Level 3) Total a. Assets at fair value Perpetual Preferred stock Industrial and Misc Parent, Subsidiaries and Affiliates Total Perpetual Preferred Stocks Bonds U.S. Governments Industrial and Misc Hybrid Securities Parent, Subsidiaries and Affiliates Total Bonds Common Stock Industrial and Misc 634,668 634,668 Parent, Subsidiaries and Affiliates Total Common Stocks Derivative assets Interest rate contracts Foreign exchange contracts Credit contracts Q6.4

Commodity futures contracts Commodity forward contracts Total Derivatives Separate account assets Notes to Financial Statement Total assets at fair value 634,668 634,668 b. Liabilities at fair value Derivative liabilities Total liabilities at fair value (1) As of the Company had no investments in (Level 3) of the Fair Value Hierarchy. (2) The Company has not had any transfers (3) As of the Company had no common stock investments classified in Level 3. 21. Other Items A. Unusual or Infrequent Items Not Applicable. B. Troubled Debt Restructuring Not Applicable. C. Other Disclosures Not Applicable D. Business Interruption Insurance Recoveries Not Applicable E. State Transferable and Non-transferable Tax Credits Not Applicable F. Subprime-Mortgage-Related Risk Exposure Not Applicable G. Insurance-Linked Securities (ILS) Contracts Not Applicable 22. Events Subsequent There were no material events subsequent to. 23. Reinsurance A. Unsecured Reinsurance Recoverable. B. Reinsurance Recoverable in Dispute The Company has no reinsurance recoverable in dispute exceeding the disclosure requirement of 5% of policyholders surplus for any one company or 10% of policyholders surplus in the aggregate. C. Reinsurance Assumed and Ceded (1) (2) Assumed Reinsurance Ceded Reinsurance Net Commission Premium Commission Premium Equity Reserve Equity Reserves Premium Reserve Commission Equity Description a. Affiliates b. All Other 4,819,437 1,538,088 (4,819,437) (1,538,088) c. TOTAL 4,819,437 1,538,089 (4,819,437) (1,538,088) d. Direct Unearned Premium Reserve 19,635,755 Line (c) of Ceded Reinsurance Premium Reserve Column must equal Page 3, Line 9, first inside amount. REINSURANCE Description Direct Assumed Ceded Net a. Contingent Commission 419,530 (419,530) b. Sliding Scale Adjustments c. Other Profit Commission arrangements d. TOTAL 419,530 (419,530) D. Uncollectible Reinsurance The Company has not written off any reinsurance balance during the current calendar year. E. Commutation of Ceded Reinsurance The Company has not commuted any reinsurance balance during the current calendar year. F. Retroactive Reinsurance The Company has not entered into any retroactive reinsurance agreements during the current calendar year. G. Reinsurance Accounted for as a Deposit The Company has not accounted for any reinsurance agreements as deposit. I. Certified Reinsurer Rating Downgraded or Status Subject to Revocation Not Applicable. J. Reinsurance Agreements Qualifying for Reinsurer Aggregation Not Applicable Q6.5