Phone: Fax: Website:

XXXXX Company Name Here XXXXX BEST S RATING REPORT Alterra America Insurance Company A Wilmington, Delaware, United States 19801 Exec. Office: 4521 Highwoods Parkway, Glen Allen, Virginia, United States 23060 Mailing Address: Ten Parkway North, Deerfi eld, Illinois, United States 60015 AMB #: 002061 NAIC #: 21296 FEIN#: 35-0293730 Phone: 804-747-0136 Fax: 804-527-7905 Website: www.markelcorp.com Markel Global Reinsurance Company A Wilmington, Delaware, United States 19801 Exec. Office: 535 Springfi eld Avenue, Summit, New Jersey, United States 07901 Mailing Address: Ten Parkway North, Deerfi eld, Illinois, United States 60015 AMB #: 013819 NAIC #: 10829 FEIN#: 06-1481194 Phone: 908-630-2700 Fax: 908-630-2701 Website: www.markelcorp.com Essentia Insurance Company A Clayton, Missouri, United States 63105 Exec. Office: 4521 Highwoods Parkway, Glen Allen, Virginia, United States 23060 Mailing Address: Ten Parkway North, Deerfi eld, Illinois, United States 60015 AMB #: 014889 NAIC #: 37915 FEIN#: 04-2672903 Phone: 847-572-6000 Fax: 847-572-6389 Website: www.markelcorp.com Evanston Insurance Company A Ten Parkway North, Deerfi eld, Illinois, United States 60015 AMB #: 003759 NAIC #: 35378 FEIN#: 36-2950161 Phone: 847-572-6000 Fax: 847-572-6389 Website: www.markelcorp.com FirstComp Insurance Company A 222 South 15th Street, Suite 1500 N, Omaha, Nebraska, United States 68102 Mailing Address: Ten Parkway North, Deerfi eld, Illinois, United States 60015 AMB #: 002910 NAIC #: 27626 FEIN#: 43-1429637 Phone: 402-926-0099 Fax: 847-572-6389 Website: www.markelcorp.com Markel American Insurance Company A 4521 Highwoods Parkway, Glen Allen, Virginia, United States 23060-6148 AMB #: 000602 NAIC #: 28932 FEIN#: 54-1398877 Phone: 804-747-0136 Fax: 804-527-7905 Website: www.markelcorp.com Markel Bermuda Limited A Markel House, 2 Front Street, Hamilton HM 11, Bermuda AMB #: 087119 NAIC #: N/A AIIN#: AA-3190829 Phone: 441-296-8800 Fax: 441-296-8811 Website: www.markelcorp.com Markel Insurance Company A Deerfi eld, Illinois, United States 60015 Exec. Office: 4521 Highwoods Parkway, Glen Allen, Virginia, United States 23060 Mailing Address: 4521 Highwoods Parkway, Glen Allen, Virginia, United States 23060 AMB #: 002699 NAIC #: 38970 FEIN#: 36-3101262 Phone: 804-747-0136 Fax: 804-527-7905 Website: www.markelcorp.com Markel International Insurance Company Limited A 20 Fenchurch Street, London EC3M 3AZ, United Kingdom AMB #: 085173 NAIC #: N/A AIIN#: AA-1121425 Phone: 44-20-7953-6000 Fax: 44-20-7953-6001 Website: www.markelintl.com Website: www.markelcorp.com Financial Strength Rating A M BEST A Excellent Page 1 of 116 Printed April 30, 2018

Alterra America Insurance Company Alterra America Insurance Company Report Release Date: Rating Effective Date: March 22, 2018 December 20, 2017 Disclosure Information: View A.M. Best s Rating Disclosure Form Analytical Contacts A.M. Best Rating Services, Inc. Jennifer Marshall, CPCU, ARM Michael J. Lagomarsino, CFA, FRM Director Senior Director Jennifer.Marshall@ambest.com Michael.Lagomarsino@ambest.com +1(908) 439-2200 Ext. 5327 +1(908) 439-2200 Ext. 5810 Ultimate Parent: 058405 - Markel Corporation A.M. Best Rating Unit: 087119 - Markel Bermuda Limited Best's Credit Ratings: Rating Effective Date: December 20, 2017 Best's Financial Strength Rating: A Outlook: Stable Action: Affirmed Best's Issuer Credit Rating: a Outlook: Stable Action: Affirmed Last Five Rating Events: Best's Financial Strength Ratings Best's Issuer Credit Ratings Date Rating Outlook Action Rating Outlook Action 12/20/2017 A Stable Affirmed a Stable Affirmed 07/01/2016 A Stable Affirmed a Stable Affirmed 05/15/2015 A Stable Affirmed a Stable Affirmed 03/21/2014 A Stable Affirmed a Stable Affirmed 08/09/2013 A Stable Affirmed a Stable Affirmed Rating Rationale: Alterra America Insurance Company is considered a member of the Markel Bermuda Limited rating unit based on its role in the organization's operations as a provider of coverage in the United States. It also reflects the common ownership and management and other implicit support provided through its relationship with Markel Bermuda. The following text is derived from Best's Insurance Report on Markel Bermuda Limited (AMB# 087119): Balance Sheet Strength: Strongest Strongest level of risk-adjusted capital as measured by Best's Capital Adequacy Ratio (BCAR) is supported by a conservative reinsurance program consisting primarily of highly-rated companies and significant collateral. Page 2 of 116 Printed April 30, 2018

Alterra America Insurance Company Substantial exposure to common equity leverage is offset by Markel Corporation's long-term favorable track record of managing these investments. The group's exposure to natural catastrophe has caused variability in surplus growth, but is controlled within the group's stated risk appetite. Operating Performance: Adequate Operating performance generally outperforms the industry, although it lags that of its reinsurance peers. Underwriting performance has been variable, and investment income has declined over the five-year period (although increasing in the more recent years), producing variable levels of pre-tax operating income and pre-tax RORs. Surplus growth has also been variable over the five-year period, reflecting the changes in operating income and payment of dividends. ROEs have averaged 8.3% through 2016, but the average will decline at year-end 2017 as a result of the expected declines in income and surplus. Business Profile: Neutral The group's business is well-diversified by geography (internationally and within the US). It also includes both reinsurance (56% of 2016 NPW) and primary insurance, which consists primarily of coverage for multinational operations of clients and unique and hard-to-place risks written in the London market. The group's market position within the global reinsurance segment is modest, ranking 38th based on 2016 assumed non-affiliated gross premium written. Enterprise Risk Management: Appropriate Markel has developed, implemented and embedded a risk management framework that appropriately addresses the risks inherent in its profile. The rating unit has implemented this framework and has developed risk management capabilities that are generally appropriate for its risk profile. The group's risk management capabilities generally meet or exceed its risk profile. Outlook The stable outlook reflects the group's Strongest balance sheet strength, adequate operating performance and business profile, and its appropriate ERM. The trends in these factors do not indicate any change in the rating is likely in the near to mid-term. Rating Drivers Rating factors that could lead to an upgrade in these ratings include continued favorable operating profitability coupled with maintenance of a strong risk-adjusted capital level and/or explicit or implicit support from Markel. Positive rating action could result from a change in A.M. Best's view of the strategic position of the companies within the unit to the overall Markel enterprise. Alternatively, factors that could lead to a downgrade in these ratings and/or a revised outlook to negative include unfavorable operating profitability trends, outsized catastrophe or investment losses relative to peers, significant adverse loss reserve development or a material decline in its risk-adjusted capital. Financial Data Notes: Time Period: Annual - 2016 Status: A.M. Best Quality Cross Checked Data as of: 12/14/2017 Page 3 of 116 Printed April 30, 2018

Alterra America Insurance Company Key Financial Indicators: Key Financial Indicators (000) Year End - December 31 2016 2015 2014 2013 2012 Premiums Written Direct 81,533 226,949 244,423 226,353 154,250 Net 73,751 103,568 22,221 21,296 15,425 Pre-tax Operating Income ($000) 38,340-28,155-1,496-4,810-5,085 Net Income 29,221-9,460-662 -4,816-4,032 Total Admitted Assets 421,791 454,766 246,466 222,418 145,424 Policyholders' Surplus 192,978 157,199 165,447 150,257 93,831 Key Financial Indicators - A.M. Best Ratios (%) Year End - December 31 2016 2015 2014 2013 2012 Profitability Combined Ratio 90.0 113.6 106.7 120.3 133.5 Investment Yield 3.0 0.1... 0.1 0.1 Pre-Tax Return on Revenue 34.1-55.6-6.8-25.6-39.3 Leverage Non-Affiliated Investment Leverage... 0.2 0.4...... Net Premiums Written to Policyholders' Surplus 0.4 0.7 0.1 0.1 0.2 Net Leverage 1.6 2.5 0.6 0.6 0.7 Liquidity Overall Liquidity 184.7 153.7 304.2 308.2 281.9 Operating Cash-Flow 78.4 135.6 263.1 79.5 183.8 (*) 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 statutory statement. Credit Analysis: Balance Sheet Strength: Strongest Page 4 of 116 Printed April 30, 2018

Alterra America Insurance Company Capitalization: Capital Generation Analysis Year End - December 31 2016 2015 2014 2013 2012 Pre-tax Operating Income ($000) 38,340-28,155-1,496-4,810-5,085 Realized Capital Gains ($000) 491 15,678 15-6 123 Income Taxes ($000) 9,610-3,017-819... -929 Unrealized Capital Gains ($000) 2 1,855 10,231 2,296-19,740 Net Contributed Capital ($000)...... 5,000 60,000... Other Changes ($000) 6,555-644 621-1,054 1,720 Change in Policyholders' Surplus ($000) 35,779-8,248 15,190 56,427-22,052 Change in Policyholders' Surplus (%) 22.8-5.0 10.1 60.1-19.0 Liquidity Analysis (%) Company Industry Composite Year End - December 31 Year End - December 31 2016 2015 2014 2013 2012 2016 2015 2014 2013 2012 Quick Liquidity 23.9 19.3 31.9 32.3 31.2 21.0 21.6 24.0 24.0 22.6 Current Liquidity 176.8 80.7 19.0 18.7 18.2 103.7 104.4 108.2 109.0 106.1 Overall Liquidity 184.7 153.7 304.2 308.2 281.9 145.5 146.2 148.1 148.2 147.0 Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US Asset Liability Management Investments: Bond Portfolio - 2016 Bonds Distribution by Maturity (%) Years Years Average 0-1 1-5 5-10 10-20 20+ Maturity Government 4.1 1.1 1.5 1.9... 5.3 Government Agencies and Municipal Bonds 2.5 9.5 38.5 9.4 17.0 11.5 Industrial and Misc. 5.1 0.9 8.4...... 4.8 Total 11.7 11.5 48.4 11.4 17.0 10.0 Bond Distribution by Issuer Type Year End - December 31 2016 2015 2014 2013 2012 Bonds ($000) 372,377 186,081 6,001 7,209 4,319 US Government (%) 5.0 2.4 72.6 61.6 37.5 Foreign-All Other (%)......... 1.5 1.2 State/Special Revenue-US (%) 79.7 84.5 6.2 14.2 32.3 Industrial and Misc-US (%) 15.3 13.1 21.2 22.7 29.0 Page 5 of 116 Printed April 30, 2018

Alterra America Insurance Company Asset Liability Management Investments: 2016 Bond Distribution By Issuer Type 15.3% 5.0% US Government (%) State/Special Revenue-US (%) Industrial and Misc-US (%) 79.7% Reserve Adequacy: Loss and Allocated Loss Adjustment Expense Reserve Development Year End - December 31 Calendar Year: 2016 2015 2014 2013 2012 Original Loss Reserves ($000) 184,653 204,847 29,375 19,687 12,582 Developed Reserves Thru Latest Year End ($000) 184,653 175,014 5,903 16,407 10,640 Development to Original (%)... -14.6-79.9-16.7-15.4 Development to Policyholder Surplus (%)... -19.0-14.2-2.2-2.1 Developed Reserves to Net Premiums Earned (%) 164.3 345.8 26.8 87.3 82.3 Unpaid Reserves @ Latest Year End ($000) 184,653 125,656 78,295 41,304 19,302 Unpaid Reserves to Developed Reserves (%) 100.0 71.8 999.9 251.7 181.4 Page 6 of 116 Printed April 30, 2018

Alterra America Insurance Company Reserve Adequacy: Year End - December 31 Accident Year: 2016 2015 2014 2013 2012 Original Loss Reserves ($000) 58,997 86,344 14,110 11,440 10,309 Developed Reserves Thru Latest Year End ($000) 58,997 71,143-6,275 9,763 9,130 Development to Original (%)... -17.6-99.9-14.7-11.4 Unpaid Reserves @ Latest Year End ($000) 58,997 47,361 36,991 22,002 16,169 Accident Year Loss Ratio (%) 70.9 59.9-11.0 70.9 94.5 Accident Year Combined Ratio (%) 116.1 100.7 13.8 115.1 130.8 Source: Bestlink - Schedule P (Loss Reserves) - P/C, US Operating Performance: Adequate Financial Performance Summary (000) Year End - December 31 2016 2015 2014 2013 2012 Pre-tax Operating Income 38,340-28,155-1,496-4,810-5,085 Net Income 29,221-9,460-662 -4,816-4,032 A.M. Best Ratios (%) Company Industry Composite Year End - December 31 Year End - December 31 2016 2015 2014 2013 2012 2016 2015 2014 2013 2012 Operating Ratio 81.5 113.0 106.6 119.7 132.3 88.1 85.2 84.4 81.6 90.2 Realized Return on Invested Assets 3.2 8.0... 0.1 0.3 4.3 4.2 4.3 6.5 4.7 Pre-Tax Return on Revenue 34.1-55.6-6.8-25.6-39.3 12.1 14.6 15.2 18.5 9.2 Return on Surplus 16.7-4.7 6.1-2.1-22.7 8.1 6.6 11.9 13.3 8.1 Loss & LAE Ratio 44.7 72.9 81.9 76.1 97.3 71.2 68.1 68.2 66.9 75.1 Expense Ratio 45.3 40.7 24.8 44.2 36.2 30.3 30.8 29.7 30.6 30.0 Combined Ratio 90.0 113.6 106.7 120.3 133.5 101.8 99.2 98.2 97.7 105.4 Net Investment Yield 3.0 0.1... 0.1 0.1 3.8 3.8 3.8 4.4 4.1 Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US Page 7 of 116 Printed April 30, 2018

Alterra America Insurance Company Combined Ratio (%) 150 120 90 133.5 97.3 120.3 76.1 106.7 81.9 113.6 72.9 90.0 60 30 36.2 44.2 24.8 40.7 44.7 45.3 0 2012 2013 2014 2015 2016 - Combined Ratio - Loss & LAE Ratio - Expense Ratio 2016 Pure Loss Ratio by Product Line (%) 60 40 25.6 32.4 37.4 40.5 56.4 20 0-20 -40-32.5 Oth Liab CM Inland Marine Com'l MultiPeril Ocean Marine Oth Liab Occur All Other Business Profile: Neutral The following text is derived from Best's Credit Report on Markel Bermuda Limited (AMB# 087119): Markel Bermuda is the Bermuda-based operating unit of Markel Corporation, and provides the majority of the company's reinsurance operations. Underwriting operations provide a diversified and balanced mix of short-tail and long-tail insurance and reinsurance Page 8 of 116 Printed April 30, 2018

Alterra America Insurance Company 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 an excess of loss and a 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 group maintains a U.S.-based primary company, Alterra America Insurance Company, which provides an admitted market for certain primary products offered by the company, primarily where U.S. paper is needed to write specific programs or classes of business in the primary market for reinsurance clients. The group also includes a U.S. domiciled reinsurer, Markel Global Reinsurance Company, providing direct access to the U.S. reinsurance market, which maintains a significant reinsurance relationship with Markel Bermuda. Under previous management, Markel Bermuda had a presence at Lloyd's under the name Alterra at Llloyd's, Syndicate 1400. Following the 2013 acquisition of what is now Markel Bermuda, certain of the Lloyd's business began to transition to Markel Syndicate 3000, Markel's existing Lloyd's operation. Syndicate 1400 ceased writing new business at year-end 2013. Effective as of January 1, 2016, the 2013 year of account of Syndicate 1400 was transferred via a Reinsurance to Close to Syndicate 3000. Markel Bermuda became a wholly owned subsidiary of the Markel Corporation (Markel) effective May 1, 2013, when Alterra Capital Holdings Limited (Alterra) was merged into a direct, wholly owned merger subsidiary of Markel. Alterra was formed as a result of the amalgamation of Max Capital Group Ltd. and Harbor Point Limited that took place in May 2010. Max Capital Group Ltd.'s origins date back to 1999 when it was formed as Maximus Capital Holdings Limited on July 8, 1999. Since then, the name has changed several times, including after the 2010 amalgamation, as the holding company has been rebranded. Markel Bermuda operates as an insurance company under Bermuda Law and is registered as a Class 4 insurer and Class C long-term insurer. Leverage Analysis Company Industry Composite Year End - December 31 Year End - December 31 A.M. Best Ratios (%) 2016 2015 2014 2013 2012 2016 2015 2014 2013 2012 Business Retention 54.6 45.6 9.0 9.3 10.0 76.2 77.8 80.2 78.8 80.4 Net Premiums Written to Policyholders Surplus 0.4 0.7 0.1 0.1 0.2 0.7 0.7 0.7 0.7 0.7 Industry Composite: Commercial Casualty Composite - Bestlink - Best's Statement File - P/C, US 2016 Top Product Lines of Business (Net Premiums Written) 15.5% 6.2% 0.9% Oth Liab CM Inland Marine Com'l MultiPeril Ocean Marine Oth Liab Occur 50.8% 26.8% Page 9 of 116 Printed April 30, 2018

Alterra America Insurance Company 2016 By-Line Business Product Line Direct Premiums Written Reinsurance Premiums Assumed Reinsurance Premiums Ceded Net Premiums Written ($000) (%) ($000) (%) ($000) (%) ($000) (%) Business Retention (%) Oth Liab CM 25,614 31.4 53,459 100.0 41,644 68.0 37,429 50.8 47.3 Inland Marine 29,782 36.5...... 10,024 16.4 19,758 26.8 66.3 Com'l MultiPeril 18,258 22.4...... 6,824 11.1 11,433 15.5 62.6 Ocean Marine 6,080 7.5...... 1,505 2.5 4,574 6.2 75.2 Oth Liab Occur 1,799 2.2...... 1,111 1.8 689 0.9 38.3 All Other............ 133 0.2-133 -0.2... Total 81,533 100.0 53,459 100.0 61,241 100.0 73,751 100.0 54.6 Geographical Breakdown By Direct Premium Writings 2016 2015 2014 2013 2012 New York 13,793 40,280 42,907 42,304 29,566 Florida 11,781 19,212 20,384 19,811 14,819 Texas 9,828 26,598 30,227 31,686 23,081 California 5,901 18,337 16,239 14,330 8,701 Hawaii 3,925 7,602 7,675 6,956 5,491 Georgia 2,686 4,965 5,775 4,225 3,407 Illinois 2,497 11,146 12,981 11,385 6,209 New Jersey 2,460 9,517 9,645 10,264 6,180 Louisiana 2,274 7,207 8,863 9,021 8,538 Virginia 1,717 5,318 4,749 2,877 2,473 All Other 24,671 76,767 84,977 73,494 45,785 Total 81,533 226,949 244,423 226,353 154,250 Page 10 of 116 Printed April 30, 2018

Alterra America Insurance Company Financial Statements: Balance Sheet: Balance Sheet: Admitted Assets Year End - December 31 2016 ($000) 2015 ($000) 2016 (%) 2015 (%) Bonds 372,377 186,081 88.3 40.9 Preferred Stock............ Common Stock............ Cash and Short-term Invest 29,527 52,298 7.0 11.5 Real estate, investment............ Derivatives............ Other Non-Affil Inv Asset............ Investments in Affiliates............ Real Estate, Offices............ Total Invested Assets 401,904 238,380 95.3 52.4 Premium Balances 5,044 15,907 1.2 3.5 Accrued Interest 2,605 1,831 0.6 0.4 All Other Assets 12,238 198,649 2.9 43.7 Total Assets 421,791 454,766 100.0 100.0 Liabilities & Surplus Year End - December 31 2016 ($000) 2015 ($000) 2016 (%) 2015 (%) Loss and LAE Reserves 192,859 212,785 45.7 46.8 Unearned Premiums 24,807 63,451 5.9 14.0 Derivatives............ Conditional Reserve Funds 492 1,630 0.1 0.4 All Other Liabilities 10,655 19,702 2.5 4.3 Total Liabilities 228,813 297,567 54.2 65.4 Surplus notes............ Capital and Assigned Surplus 180,176 180,176 42.7 39.6 Unassigned Surplus 12,802-22,977 3.0-5.1 Total Policyholders' Surplus 192,978 157,199 45.8 34.6 Total Liabilities and Surplus 421,791 454,766 100.0 100.0 Page 11 of 116 Printed April 30, 2018

Alterra America Insurance Company Summary of Operations and Operating Cash Flow: Summary Of Operations (000) Year End - December 31 Statement of Income 2016 Net Operating Cash Flow 2016 Premiums earned 112,395 Premiums collected 68,948 Losses incurred 37,750 Benefit & loss-related pmts 59,855 LAE incurred 12,538 Undwr expenses incurred 33,387 LAE & undwr expenses paid 45,306 Other expenses incurred... Other income / expense... Dividends to policyholders... Dividends to policyholders... Net underwriting income 28,720 Underwriting cash flow -36,212 Net transfer... Net investment income 9,620 Investment income 11,123 Other income/expense... Other income/expense... Pre-tax operating income 38,340 Pre-tax cash operations -25,089 Realized capital gains 491 Income taxes incurred 9,610 Income taxes pd (recov) -2,370 Net income 29,221 Net oper cash flow -22,719 Page 12 of 116 Printed April 30, 2018

Alterra America Insurance Company Alterra America Insurance Company Report Revision Date: April 17, 2018 Company Attributes: Industry: Business Type: Entity Type: Organization Type: Business Status: Marketing Type: Financial Size: Insurance Property/Casualty Operating Company Stock In Business - Actively Underwriting Independent Agency XV ($2 Billion or greater) Company History: Date Incorporated: 12/18/1919 Date Commenced: 08/01/1936 Domicile: United States: Delaware This company was originally incorporated under the laws of Indiana to become successor to Motor Indemnity Association, a reciprocal exchange formed in 1919. Originally organized to write automobile 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 to Associates Insurance Company. The name was changed to Citicapital Insurance Company in September 2001 and on May 30, 2002, the company reverted back to the former title, Associates Insurance Company. The name was changed to Commercial Guaranty Casualty Insurance Company on September 1, 2004 and to Max America Insurance Company on July 9, 2008. In May 2010, Max Capital Group Ltd. and Harbor Point Limited amalgamated to 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 to 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. On December 31, 2015, the company's subsidiary, Alterra Excess & Surplus Insurance Company, was acquired by then merged with and into its affiliate, Evanston Insurance Company. Company Operations: Licensed Territory: (Current since 01/17/2002).The company is licensed in the District of Columbia and all states. 2017 Rank Top 5 Lines of Business by NPW 1 Oth Liab CM 93.3% 2 Oth Liab Occur 5.7% 3 Inland Marine 1.6% 4 Com'l MultiPeril -0.4% 2017 Rank Top 5 Geographic Distribution by DPW 1 United States: NY 39.4% 2 United States: TX 14.9% 3 United States: HI 6.5% 4 United States: TN 6.0% 5 United States: FL 5.8% Page 13 of 116 Printed April 30, 2018

Alterra America Insurance Company Company Management: Last significant update on 04/06/2018 Officers Chairman and CEO: Bradley J. Kiscaden President: Matthew H. Parker Vice President and CFO: Robert G. Whitt III Vice President and Secretary: Richard R. Grinnan Vice President: Deidre I. Balbuena Vice President: Nora N. Crouch Vice President: Robin Russo Vice President: Bryan W. Sanders Treasurer: April L. Duff Directors Britton L. Glisson Bradley J. Kiscaden Matthew H. Parker Robin Russo Richard R. Whitt, III Regulatory: Auditor: KPMG, LLP An examination of the financial condition was made as of December 31, 2015, by the insurance department of Delaware. The 2017 annual independent audit of the company was conducted by KPMG, LLP. The annual statement of actuarial opinion is provided by G. Christopher Nyce, FCAS, MAAA, KPMG, LLP. Page 14 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Markel Global Reinsurance Company Report Release Date: Rating Effective Date: March 22, 2018 December 20, 2017 Disclosure Information: View A.M. Best s Rating Disclosure Form Analytical Contacts A.M. Best Rating Services, Inc. Jennifer Marshall, CPCU, ARM Michael J. Lagomarsino, CFA, FRM Director Senior Director Jennifer.Marshall@ambest.com Michael.Lagomarsino@ambest.com +1(908) 439-2200 Ext. 5327 +1(908) 439-2200 Ext. 5810 Ultimate Parent: 058405 - Markel Corporation A.M. Best Rating Unit: 087119 - Markel Bermuda Limited Best's Credit Ratings: Rating Effective Date: December 20, 2017 Best's Financial Strength Rating: A Outlook: Stable Action: Affirmed Best's Issuer Credit Rating: a Outlook: Stable Action: Affirmed Last Five Rating Events: Best's Financial Strength Ratings Best's Issuer Credit Ratings Date Rating Outlook Action Rating Outlook Action 12/20/2017 A Stable Affirmed a Stable Affirmed 07/01/2016 A Stable Affirmed a Stable Affirmed 05/15/2015 A Stable Affirmed a Stable Affirmed 03/21/2014 A Stable Affirmed a Stable Affirmed 08/09/2013 A Stable Affirmed a Stable Affirmed Rating Rationale: Markel Global Reinsurance Company is considered a member of the Markel Bermuda Limited rating unit based on its reinsurance relationship with Markel Bermuda Limited and its role as a provider of insurance coverages in the United States. The relationship is enhanced by common ownership and management, and implied benefits it receives through its position in the Markel enterprise. The following text is derived from Best's Insurance Report on Markel Bermuda Limited (AMB# 087119): Balance Sheet Strength: Strongest Strongest level of risk-adjusted capital as measured by Best's Capital Adequacy Ratio (BCAR) is supported by a conservative reinsurance program consisting primarily of highly-rated companies and significant collateral. Page 15 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Substantial exposure to common equity leverage is offset by Markel Corporation's long-term favorable track record of managing these investments. The group's exposure to natural catastrophe has caused variability in surplus growth, but is controlled within the group's stated risk appetite. Operating Performance: Adequate Operating performance generally outperforms the industry, although it lags that of its reinsurance peers. Underwriting performance has been variable, and investment income has declined over the five-year period (although increasing in the more recent years), producing variable levels of pre-tax operating income and pre-tax RORs. Surplus growth has also been variable over the five-year period, reflecting the changes in operating income and payment of dividends. ROEs have averaged 8.3% through 2016, but the average will decline at year-end 2017 as a result of the expected declines in income and surplus. Business Profile: Neutral The group's business is well-diversified by geography (internationally and within the US). It also includes both reinsurance (56% of 2016 NPW) and primary insurance, which consists primarily of coverage for multinational operations of clients and unique and hard-to-place risks written in the London market. The group's market position within the global reinsurance segment is modest, ranking 38th based on 2016 assumed nonaffiliated gross premium written. Enterprise Risk Management: Appropriate Markel has developed, implemented and embedded a risk management framework that appropriately addresses the risks inherent in its profile. The rating unit has implemented this framework and has developed risk management capabilities that are generally appropriate for its risk profile. The group's risk management capabilities generally meet or exceed its risk profile. Outlook The stable outlook reflects the group's Strongest balance sheet strength, adequate operating performance and business profile, and its appropriate ERM. The trends in these factors do not indicate any change in the rating is likely in the near to mid-term. Rating Drivers Rating factors that could lead to an upgrade in these ratings include continued favorable operating profitability coupled with maintenance of a strong risk-adjusted capital level and/or explicit or implicit support from Markel. Positive rating action could result from a change in A.M. Best's view of the strategic position of the companies within the unit to the overall Markel enterprise. Alternatively, factors that could lead to a downgrade in these ratings and/or a revised outlook to negative include unfavorable operating profitability trends, outsized catastrophe or investment losses relative to peers, significant adverse loss reserve development or a material decline in its risk-adjusted capital. Financial Data Notes: Time Period: Annual - 2016 Status: A.M. Best Quality Cross Checked Data as of: 12/14/2017 Page 16 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Key Financial Indicators: Key Financial Indicators (000) Year End - December 31 2016 2015 2014 2013 2012 Premiums Written Direct............... Net 254,721 211,712 220,703 186,933 201,664 Pre-tax Operating Income ($000) 9,735 9,984 7,980 26,475 15,900 Net Income 4,879 1,729 11,640 19,569 9,713 Total Admitted Assets 1,692,904 1,546,414 1,491,632 1,364,745 1,299,208 Policyholders' Surplus 804,103 727,130 749,372 714,952 671,627 Key Financial Indicators - A.M. Best Ratios (%) Year End - December 31 2016 2015 2014 2013 2012 Profitability Combined Ratio 102.0 106.3 103.4 97.9 102.5 Investment Yield 1.9 2.1 1.8 2.1 2.5 Pre-Tax Return on Revenue 4.3 4.8 4.0 14.0 8.3 Leverage Non-Affiliated Investment Leverage 55.2 52.2 26.0 14.8 1.8 Net Premiums Written to Policyholders' Surplus 0.3 0.3 0.3 0.3 0.3 Net Leverage 1.4 1.4 1.3 1.2 1.2 Liquidity Overall Liquidity 190.5 188.8 201.0 210.0 207.0 Operating Cash-Flow 123.9 122.8 139.4 153.6 168.5 (*) Within several financial tables of this report, this company is compared against the Reinsurance Composite. (*) Data reflected within all tables of this report has been compiled from the company-filed statutory statement. Credit Analysis: Balance Sheet Strength: Strongest Page 17 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Capitalization: Capital Generation Analysis Year End - December 31 2016 2015 2014 2013 2012 Pre-tax Operating Income ($000) 9,735 9,984 7,980 26,475 15,900 Realized Capital Gains ($000) -249-10,995 5,039 1,687 50 Income Taxes ($000) 4,607-2,740 1,379 8,593 6,236 Unrealized Capital Gains ($000) 63,910-18,451 13,201 1,391-22,979 Net Contributed Capital ($000)...... 5,000 21,274 1,275 Other Changes ($000) 8,184-5,519 4,579 1,090 7,141 Change in Policyholders' Surplus ($000) 76,973-22,242 34,420 43,325-4,850 Change in Policyholders' Surplus (%) 10.6-3.0 4.8 6.5-0.7 Liquidity Analysis (%) Company Industry Composite Year End - December 31 Year End - December 31 2016 2015 2014 2013 2012 2016 2015 2014 2013 2012 Quick Liquidity 56.7 55.5 55.4 56.2 44.6 70.0 69.2 73.4 73.2 64.8 Current Liquidity 121.7 126.0 136.7 145.0 143.6 119.1 121.3 122.4 127.4 122.6 Overall Liquidity 190.5 188.8 201.0 210.0 207.0 205.9 202.6 208.1 225.9 211.4 Industry Composite: Reinsurance Composite - Bestlink - Best's Statement File - P/C, US Asset Liability Management Investments: Bond Portfolio - 2016 Bonds Distribution by Maturity (%) Years Years Average 0-1 1-5 5-10 10-20 20+ Maturity Government 6.6 1.2 2.6 0.1... 2.6 Government Agencies and Municipal Bonds 9.4 7.5 28.4 12.5 6.1 9.1 Industrial and Misc. 5.2 11.7 4.1 0.5 4.2 7.0 Total 21.2 20.4 35.1 13.0 10.3 7.9 Page 18 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Asset Liability Management Investments: (Continued...) Bond Distribution by Issuer Type Year End - December 31 2016 2015 2014 2013 2012 Bonds ($000) 536,052 568,953 685,005 673,386 791,592 US Government (%) 5.0 5.4 3.6 5.9 8.0 Foreign Government (%) 1.1 1.1 2.4 1.5 1.3 Foreign-All Other (%) 5.7 6.6 9.7 11.8 10.8 State/Special Revenue-US (%) 64.3 59.4 52.0 36.1 31.4 Industrial and Misc-US (%) 23.8 27.5 32.3 44.8 48.5 2016 Bond Distribution By Issuer Type 5.0% 1.1% 5.7% 23.8% US Government (%) Foreign Government (%) Foreign-All Other (%) State/Special Revenue-US (%) Industrial and Misc-US (%) 64.3% Reserve Adequacy: Loss and Allocated Loss Adjustment Expense Reserve Development Year End - December 31 Calendar Year: 2016 2015 2014 2013 2012 Original Loss Reserves ($000) 452,463 421,280 369,950 310,508 272,928 Developed Reserves Thru Latest Year End ($000) 452,463 414,893 362,363 294,000 254,231 Development to Original (%)... -1.5-2.1-5.3-6.9 Development to Policyholder Surplus (%)... -0.9-1.0-2.3-2.8 Developed Reserves to Net Premiums Earned (%) 199.9 200.7 179.8 155.9 133.0 Unpaid Reserves @ Latest Year End ($000) 452,463 328,172 220,872 140,498 87,670 Unpaid Reserves to Developed Reserves (%) 100.0 79.1 61.0 47.8 34.5 Page 19 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Reserve Adequacy: (Continued...) Year End - December 31 Accident Year: 2016 2015 2014 2013 2012 Original Loss Reserves ($000) 124,291 122,443 128,757 111,121 125,260 Developed Reserves Thru Latest Year End ($000) 124,291 126,306 128,536 104,450 122,138 Development to Original (%)... 3.2-0.2-6.0-2.5 Unpaid Reserves @ Latest Year End ($000) 124,291 107,300 80,374 52,828 38,782 Accident Year Loss Ratio (%) 67.1 71.7 75.7 67.8 73.7 Accident Year Combined Ratio (%) 100.2 106.2 107.7 97.8 102.7 Source: Bestlink - Schedule P (Loss Reserves) - P/C, US Operating Performance: Adequate Financial Performance Summary (000) Year End - December 31 2016 2015 2014 2013 2012 Pre-tax Operating Income 9,735 9,984 7,980 26,475 15,900 Net Income 4,879 1,729 11,640 19,569 9,713 A.M. Best Ratios (%) Company Industry Composite Year End - December 31 Year End - December 31 2016 2015 2014 2013 2012 2016 2015 2014 2013 2012 Operating Ratio 91.5 94.3 93.0 86.2 90.1 70.6 67.7 52.1 43.0 55.5 Realized Return on Invested Assets 1.9 1.2 2.3 2.3 2.5 4.5 4.5 7.3 5.2 4.3 Pre-Tax Return on Revenue 4.3 4.8 4.0 14.0 8.3 26.1 29.8 35.7 53.4 41.5 Return on Surplus 9.0-2.3 3.4 3.0-2.0 13.7 5.4 9.4 25.1 15.0 Loss & LAE Ratio 68.9 71.7 71.4 68.0 73.5 69.4 68.1 68.6 53.0 64.1 Expense Ratio 33.2 34.5 32.0 29.9 29.1 26.0 24.3 21.3 29.8 29.1 Combined Ratio 102.0 106.3 103.4 97.9 102.5 95.4 92.4 90.0 82.8 93.1 Net Investment Yield 1.9 2.1 1.8 2.1 2.5 3.5 3.6 6.1 4.0 4.2 Industry Composite: Reinsurance Composite - Bestlink - Best's Statement File - P/C, US Page 20 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Combined Ratio (%) 100 102.5 97.9 103.4 106.3 102.0 80 73.5 68.0 71.4 71.7 68.9 60 40 20 29.1 29.9 32.0 34.5 33.2 0 2012 2013 2014 2015 2016 - Combined Ratio - Loss & LAE Ratio - Expense Ratio 2016 Pure Loss Ratio by Product Line (%) 75 60 45 69.8 52.7 72.5 40.1 62.1 79.3 67.4 48.3 77.8 51.5 51.1 30 15 14.8 0 Reins-Casualty Oth Liab CM Oth Liab Occur Fire Homeowners Priv Pass Auto Liab Credit Workers' Comp Auto Physical Reins-Surety etc Aircraft All Other Business Profile: Neutral The following text is derived from Best's Credit Report on Markel Bermuda Limited (AMB# 087119): Markel Bermuda is the Bermuda-based operating unit of Markel Corporation, and provides the majority of the company's reinsurance operations. Underwriting operations provide a diversified and balanced mix of short-tail and long-tail insurance and reinsurance Page 21 of 116 Printed April 30, 2018

Markel Global Reinsurance Company 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 an excess of loss and a 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 group maintains a U.S.-based primary company, Alterra America Insurance Company, which provides an admitted market for certain primary products offered by the company, primarily where U.S. paper is needed to write specific programs or classes of business in the primary market for reinsurance clients. The group also includes a U.S. domiciled reinsurer, Markel Global Reinsurance Company, providing direct access to the U.S. reinsurance market, which maintains a significant reinsurance relationship with Markel Bermuda. Under previous management, Markel Bermuda had a presence at Lloyd's under the name Alterra at Llloyd's, Syndicate 1400. Following the 2013 acquisition of what is now Markel Bermuda, certain of the Lloyd's business began to transition to Markel Syndicate 3000, Markel's existing Lloyd's operation. Syndicate 1400 ceased writing new business at year-end 2013. Effective as of January 1, 2016, the 2013 year of account of Syndicate 1400 was transferred via a Reinsurance to Close to Syndicate 3000. Markel Bermuda became a wholly owned subsidiary of the Markel Corporation (Markel) effective May 1, 2013, when Alterra Capital Holdings Limited (Alterra) was merged into a direct, wholly owned merger subsidiary of Markel. Alterra was formed as a result of the amalgamation of Max Capital Group Ltd. and Harbor Point Limited that took place in May 2010. Max Capital Group Ltd.'s origins date back to 1999 when it was formed as Maximus Capital Holdings Limited on July 8, 1999. Since then, the name has changed several times, including after the 2010 amalgamation, as the holding company has been rebranded. Markel Bermuda operates as an insurance company under Bermuda Law and is registered as a Class 4 insurer and Class C long-term insurer. Leverage Analysis Company Industry Composite Year End - December 31 Year End - December 31 A.M. Best Ratios (%) 2016 2015 2014 2013 2012 2016 2015 2014 2013 2012 Business Retention 48.6 47.4 47.3 47.6 47.4 94.8 95.6 96.3 85.0 86.1 Net Premiums Written to Policyholders Surplus 0.3 0.3 0.3 0.3 0.3 0.2 0.3 0.3 0.2 0.2 Industry Composite: Reinsurance Composite - Bestlink - Best's Statement File - P/C, US 2016 Top Product Lines of Business (Net Premiums Written) 2.8% 3.3% 4.4% 5.2% 5.3% 5.9% 6.8% 2.4% 5.5% 8.5% 18.0% 31.8% Reins-Casualty Oth Liab CM Oth Liab Occur Fire Homeowners Priv Pass Auto Liab Credit Workers' Comp Auto Physical Reins-Surety etc Aircraft All Other Page 22 of 116 Printed April 30, 2018

Markel Global Reinsurance Company 2016 By-Line Business Product Line Direct Premiums Written Reinsurance Premiums Assumed Reinsurance Premiums Ceded Net Premiums Written ($000) (%) ($000) (%) ($000) (%) ($000) (%) Business Retention (%) Reins-Casualty...... 168,704 32.2 87,577 32.5 81,127 31.8 48.1 Oth Liab CM...... 95,404 18.2 49,623 18.4 45,781 18.0 48.0 Oth Liab Occur...... 45,136 8.6 23,509 8.7 21,628 8.5 47.9 Fire...... 35,827 6.8 18,598 6.9 17,228 6.8 48.1 Homeowners...... 31,387 6.0 16,321 6.0 15,066 5.9 48.0 Priv Pass Auto Liab...... 24,251 4.6 10,695 4.0 13,555 5.3 55.9 Credit...... 28,358 5.4 14,998 5.6 13,360 5.2 47.1 Workers' Comp...... 23,483 4.5 12,211 4.5 11,272 4.4 48.0 Auto Physical...... 15,925 3.0 7,460 2.8 8,465 3.3 53.2 Reins-Surety etc...... 14,810 2.8 7,701 2.9 7,109 2.8 48.0 Aircraft...... 14,764 2.8 8,599 3.2 6,165 2.4 41.8 All Other...... 26,554 5.1 12,589 4.7 13,966 5.5 52.6 Total...... 524,603 100.0 269,882 100.0 254,721 100.0 48.6 Page 23 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Financial Statements: Balance Sheet: Balance Sheet: Admitted Assets Year End - December 31 2016 ($000) 2015 ($000) 2016 (%) 2015 (%) Bonds 536,052 568,953 31.7 36.8 Preferred Stock............ Common Stock 443,985 367,496 26.2 23.8 Cash and Short-term Invest 91,752 90,220 5.4 5.8 Real estate, investment............ Derivatives............ Other Non-Affil Inv Asset 3,320... 0.2... Investments in Affiliates 242,581 161,705 14.3 10.5 Real Estate, Offices............ Total Invested Assets 1,317,689 1,188,373 77.8 76.8 Premium Balances 300,589 292,996 17.8 18.9 Accrued Interest 6,161 5,734 0.4 0.4 All Other Assets 68,464 59,311 4.0 3.8 Total Assets 1,692,904 1,546,414 100.0 100.0 Liabilities & Surplus Year End - December 31 2016 ($000) 2015 ($000) 2016 (%) 2015 (%) Loss and LAE Reserves 456,942 425,127 27.0 27.5 Unearned Premiums 209,127 181,562 12.4 11.7 Derivatives............ Conditional Reserve Funds 276 109...... All Other Liabilities 222,455 212,486 13.1 13.7 Total Liabilities 888,801 819,284 52.5 53.0 Surplus notes............ Capital and Assigned Surplus 677,769 677,769 40.0 43.8 Unassigned Surplus 126,334 49,361 7.5 3.2 Total Policyholders' Surplus 804,103 727,130 47.5 47.0 Total Liabilities and Surplus 1,692,904 1,546,414 100.0 100.0 Page 24 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Summary of Operations and Operating Cash Flow: Summary Of Operations (000) Year End - December 31 Statement of Income 2016 Net Operating Cash Flow 2016 Premiums earned 226,300 Premiums collected 265,743 Losses incurred 143,025 Benefit & loss-related pmts 137,524 LAE incurred 12,784 Undwr expenses incurred 84,440 LAE & undwr expenses paid 95,766 Other expenses incurred... Other income / expense... Dividends to policyholders... Dividends to policyholders... Net underwriting income -13,950 Underwriting cash flow 32,453 Net transfer... Net investment income 23,685 Investment income 25,212 Other income/expense... Other income/expense... Pre-tax operating income 9,735 Pre-tax cash operations 57,665 Realized capital gains -249 Income taxes incurred 4,607 Income taxes pd (recov) 1,494 Net income 4,879 Net oper cash flow 56,171 Page 25 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Markel Global Reinsurance Company Report Revision Date: April 17, 2018 Company Attributes: Industry: Business Type: Entity Type: Organization Type: Business Status: Marketing Type: Financial Size: Insurance Property/Casualty Operating Company Stock In Business - Actively Underwriting Broker XV ($2 Billion or greater) Company History: Date Incorporated: 04/21/1997 Date Commenced: 09/17/1997 Domicile: United States: Delaware On January 2, 2007, the company, formerly named Quadrant Indemnity Company was acquired as a shell from Executive Risk Indemnity, Inc., a subsidiary of The Chubb Corporation. At that time the company was renamed Harbor Point Reinsurance U.S., Inc. and the ultimate parent and holding company was Harbor Point Limited. In May 2010, Max Capital Group Ltd. and Harbor Point Limited amalgamated to form Alterra Capital Holdings Limited. All operating subsidiaries were rebranded with the Alterra identity including Harbor Point Reinsurance U.S., Inc. which was renamed Alterra Reinsurance USA Inc. in August 2010. 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. On December 31, 2014 the company redomesticated from Connecticut to Delaware. On September 2, 2015, the company changed its name to Markel Global Reinsurance Company (MGRC). Company Operations: Licensed Territory: (Current since 06/24/2009).The company is licensed in the District of Columbia, AK, AR, CA, CT, DE, FL, GA, HI, IL, IN, IA, KS, LA, ME, MD, MA, MI, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, VT, VA, WA, WV, WI and WY. Credit is allowed for reinsurance as a licensed reinsurer in AL, A, CO, ID, KY, MN and UT. Effective May 18, 2012, the company received a certificate of authority from the U.S. Department of the Treasury authorizing it to qualify as an acceptable reinsurer on obligations required by U.S. laws. 2017 Rank Top 5 Lines of Business by NPW 1 Reins-Casualty 22.4% 2 Oth Liab Occur 18.8% 3 Oth Liab CM 14.4% 4 Fire 5.9% 5 Com'l MultiPeril 5.4% Page 26 of 116 Printed April 30, 2018

Markel Global Reinsurance Company Company Management: Last significant update on 12/11/2017 Officers Chairman of the Board: Robin Russo President and Chief Underwriting Officer: Jed E. Rhoads SVP: Richard R. Whitt III Vice President and CFO: Anne G. Waleski Vice President and Secretary: Richard R. Grinnan Vice President and Controller: Robert G. Whitt III Vice President: Nora N. Crouch Vice President: Stephen E. Leitz Treasurer: April L. Duff Directors F. Michael Crowley Britton L. Glisson Bradley J. Kiscaden Robin Russo Richard R. Whitt III Regulatory: Auditor: KPMG, LLP An examination of the financial condition is being made as of December 31, 2015, by the insurance department of Delaware. The 2015 annual independent audit of the company was conducted by KPMG, LLP. The annual statement of actuarial opinion is provided by G. Christopher Nyce, FCAS, MAAA, KPMG, LLP. Page 27 of 116 Printed April 30, 2018

Essentia Insurance Company Essentia Insurance Company Report Release Date: Rating Effective Date: March 15, 2018 December 20, 2017 Disclosure Information: View A.M. Best s Rating Disclosure Form Analytical Contacts A.M. Best Rating Services, Inc. Jennifer Marshall, CPCU, ARM Michael J. Lagomarsino, CFA, FRM Director Senior Director Jennifer.Marshall@ambest.com Michael.Lagomarsino@ambest.com +1(908) 439-2200 Ext. 5327 +1(908) 439-2200 Ext. 5810 Ultimate Parent: 058405 - Markel Corporation A.M. Best Rating Unit: 003191 - Markel North America Insurance Group Best's Credit Ratings: Rating Effective Date: December 20, 2017 Best's Financial Strength Rating: A Outlook: Stable Action: Affirmed Best's Issuer Credit Rating: a+ Outlook: Stable Action: Affirmed Last Five Rating Events: Best's Financial Strength Ratings Best's Issuer Credit Ratings Date Rating Outlook Action Rating Outlook Action 12/20/2017 A Stable Affirmed a+ Stable Affirmed 07/01/2016 A Stable Affirmed a+ Stable Affirmed 05/15/2015 A Stable Affirmed a+ Stable Affirmed 03/21/2014 A Stable Affirmed a+ Stable Affirmed 01/04/2013 A Stable First a+ Stable Assigned Rating Rationale: Essentia Insurance Company is considered part of the Markel North American Insurance Group rating unit as a result of its substantial quota share reinsurance with Evanston Insurance Company and based on its role and strategic importance to the operations' overall strategy as a provider of insurance for the group's specialty personal lines offerings. The ratings also recognize common ownership, common management as well as the explicit and implied support of future parental commitment if and when necessary. The following text is derived from Best's Insurance Report on Markel Bermuda Limited (AMB# 087119): Balance Sheet Strength: Strongest Page 28 of 116 Printed April 30, 2018

Essentia Insurance Company Strongest level of risk-adjusted capital as measured by Best's Capital Adequacy Ratio (BCAR) is supported by a conservative reinsurance program consisting primarily of highly-rated companies and significant collateral. Substantial exposure to common equity leverage is offset by Markel Corporation's long-term favorable track record of managing these investments. The group's exposure to natural catastrophe has caused variability in surplus growth, but is controlled within the group's stated risk appetite. Operating Performance: Adequate Operating performance generally outperforms the industry, although it lags that of its reinsurance peers. Underwriting performance has been variable, and investment income has declined over the five-year period (although increasing in the more recent years), producing variable levels of pre-tax operating income and pre-tax RORs. Surplus growth has also been variable over the five-year period, reflecting the changes in operating income and payment of dividends. ROEs have averaged 8.3% through 2016, but the average will decline at year-end 2017 as a result of the expected declines in income and surplus. Business Profile: Neutral The group's business is well-diversified by geography (internationally and within the US). It also includes both reinsurance (56% of 2016 NPW) and primary insurance, which consists primarily of coverage for multinational operations of clients and unique and hard-to-place risks written in the London market. The group's market position within the global reinsurance segment is modest, ranking 38th based on 2016 assumed non-affiliated gross premium written. Enterprise Risk Management: Appropriate Markel has developed, implemented and embedded a risk management framework that appropriately addresses the risks inherent in its profile. The rating unit has implemented this framework and has developed risk management capabilities that are generally appropriate for its risk profile. The group's risk management capabilities generally meet or exceed its risk profile. Outlook The stable outlook reflects the group's Strongest balance sheet strength, adequate operating performance and business profile, and its appropriate ERM. The trends in these factors do not indicate any change in the rating is likely in the near to mid-term. Rating Drivers Rating factors that could lead to an upgrade in these ratings include continued favorable operating profitability coupled with maintenance of a strong risk-adjusted capital level and/or explicit or implicit support from Markel. Positive rating action could result from a change in A.M. Best's view of the strategic position of the companies within the unit to the overall Markel enterprise. Alternatively, factors that could lead to a downgrade in these ratings and/or a revised outlook to negative include unfavorable operating profitability trends, outsized catastrophe or investment losses relative to peers, significant adverse loss reserve development or a material decline in its risk-adjusted capital. Page 29 of 116 Printed April 30, 2018

Essentia Insurance Company Financial Data Notes: Time Period: Annual - 2016 Status: A.M. Best Quality Cross Checked Data as of: 12/14/2017 Key Financial Indicators: Key Financial Indicators (000) Year End - December 31 2016 2015 2014 2013 2012 Premiums Written Direct 274,456 239,847 217,575 194,736... Net 26,904............ Pre-tax Operating Income ($000) -6,115 195 193 14... Net Income -4,855 189 179 9... Total Admitted Assets 85,727 67,022 55,120 73,809... Policyholders' Surplus 26,450 30,368 30,179 26,030... Key Financial Indicators - A.M. Best Ratios (%) Year End - December 31 2016 2015 2014 2013 2012 Profitability Combined Ratio 96.7............ Investment Yield 0.7 0.7 0.5...... Pre-Tax Return on Revenue -44.7............ Leverage Net Premiums Written to Policyholders' Surplus 1.0............ Net Leverage 3.3 1.2 0.8 1.8... Liquidity Overall Liquidity 144.6 182.8 221.0 154.5... Operating Cash-Flow 421.7 68.6-99.9-36.9... (*) Within several financial tables of this report, this company is compared against the Private Passenger Standard Automobile Composite. (*) Data reflected within all tables of this report has been compiled from the company-filed statutory statement. Credit Analysis: Balance Sheet Strength: Strongest Page 30 of 116 Printed April 30, 2018