-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PzwKt8/3g2F1fsM6RsdZgHuBb4BWOzHduYg5EagP7Hl+HoVPg8LiLiVl4aAAGJnN VJnpffyrBbZhXrUi/j1HLQ== 0000950152-96-001317.txt : 19960402 0000950152-96-001317.hdr.sgml : 19960402 ACCESSION NUMBER: 0000950152-96-001317 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960401 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERCHANTS GROUP INC CENTRAL INDEX KEY: 0000803027 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 161280763 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K405 SEC ACT: 1934 Act SEC FILE NUMBER: 001-09640 FILM NUMBER: 96542979 BUSINESS ADDRESS: STREET 1: 250 MAIN ST CITY: BUFFALO STATE: NY ZIP: 14202 BUSINESS PHONE: 7168493333 MAIL ADDRESS: STREET 1: 250 MAIN ST CITY: BUFFALO STATE: NY ZIP: 14202 10-K405 1 MERCHANTS GROUP 10-K405 1 FORM 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------ X - --- ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1995 ----------------- OR - --- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from ________ to _______________________ Commission file number 1-9640 ------ MERCHANTS GROUP, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 16-1280763 - ------------------------------- ------------------- (State or other (I.R.S. Employer jurisdiction ofincorporation or Identification No.) organization) 250 Main Street, Buffalo, New York 14202 - ---------------------------------------- --------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (716) 849-3333 -------------- Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on Title of each class which registered - -------------------- ---------------- Common Stock, $.01 American Stock Exchange, Inc. par value per share
Securities registered pursuant to Section 12(g) of the Act: NONE Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. X Yes No --- --- Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. X --- As of March 1, 1996, 3,213,894 shares of common stock were outstanding. The aggregate market value of the common shares held by non- affiliates of Merchants Group, Inc. on March 1, 1996 was $53,260,092. DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive Proxy Statement for the 1996 Annual Meeting of Stockholders are incorporated by reference into Part III. 2 MERCHANTS GROUP, INC. ANNUAL REPORT ON FORM 10-K DECEMBER 31, 1995
PART I PAGE ------- ---- ITEM 1. BUSINESS. 3 ITEM 2. PROPERTIES. 25 ITEM 3. LEGAL PROCEEDINGS. 25 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. 26 PART II ------- ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED 27 STOCKHOLDER MATTERS. ITEM 6. SELECTED FINANCIAL DATA. 28 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 30 CONDITION AND RESULTS OF OPERATIONS. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. 38 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON 38 ACCOUNTING AND FINANCIAL DISCLOSURE. PART III -------- ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT. 39 ITEM 11. EXECUTIVE COMPENSATION. 39 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS 39 AND MANAGEMENT. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. 39 PART IV ------- ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND 40 REPORTS ON FORM 8-K.
2 3 PART I Item 1. BUSINESS. GENERAL Merchants Group, Inc. (the "Company") was incorporated in August 1986 as a Delaware holding company which, through its wholly owned subsidiary Merchants Insurance Company of New Hampshire, Inc. ("MNH"), offers property and casualty insurance to preferred risk individuals and small to medium size businesses in the northeastern United States. ADMINISTRATION The Company and MNH operate and manage their business in conjunction with Merchants Mutual Insurance Company ("Mutual"), a New York domiciled mutual property-casualty insurance company, under a management agreement (the "Management Agreement"). The Company and MNH do not have any significant operating assets and have no employees. Under the Management Agreement, Mutual provides the Company and MNH with the facilities, management and personnel required to operate their day-to-day business, including investment management. All costs incurred by Mutual with respect to underwriting expenses are shared pro rata between Mutual and MNH based upon their annual direct premiums written, and unallocated loss adjustment expenses are allocated on the basis of the number of claims outstanding each month that are attributable to each company. All of Mutual's and MNH's investment expenses are shared pro rata based upon the average book value of the invested assets of each company. MNH also pays Mutual an annual management fee of $50,000. The Management Agreement requires that the Company and MNH pay Mutual 110% of Mutual's costs of providing them with non-insurance related services, and that the Company pay Mutual an annual fee of one half of one percent (.5%) of the average book value of the Company's invested assets exclusive of the Company's shares of MNH. Since the inception of the Management Agreement, Mutual has not provided the Company or MNH with any non-insurance related services. The Management Agreement is designed to prevent conflicts of interest or to deal with them on an equitable basis should they occur. Generally, business opportunities which are presented to the common officers or employees of the companies must be presented to each company's Board of Directors and approved and determined to be fair to each company in the transaction by a majority of the directors of each company who are not affiliated with any other company in the transaction. 3 4 Any amendment or modification of the Management Agreement must be approved by the New York Insurance Department. The Management Agreement may be terminated by any party to the agreement upon five years written notice to each of the other parties. Mutual and MNH have jointly developed and paid for all accounting, computer and insurance marketing systems used in their businesses. In the event of termination of the Management Agreement, each company has a right, at no cost, to obtain copies of all these systems, together with the right to use these systems in perpetuity. From 1975 through 1984, MNH and Mutual pooled their insurance businesses pursuant to a pooling agreement (the "Pooling Agreement"). Prior to January 1, 1983, premiums and losses were allocated 10% to MNH and 90% to Mutual; thereafter, pursuant to an amendment to the Pooling Agreement, the respective pooling percentages were 25% for MNH and 75% for Mutual. The Pooling Agreement was terminated effective December 31, 1984. The termination provided for the runoff of unearned premiums, losses and expenses associated with insurance contracts effective prior to January 1, 1985 according to the pooling percentages set forth in the Pooling Agreement. For insurance contracts effective subsequent to December 31, 1984, premiums written and related premiums earned, losses and loss adjustment expenses ("LAE"), commissions, premium taxes, and assessments are retained by the company which issues the insurance policies. MARKETING The Company markets its products through approximately 665 independent agencies, which also represent Mutual. Generally, the Company's agents are located in suburban and rural areas. The Company primarily directs its marketing efforts to its independent agents and believes the more closely it works with those agents, the more likely it becomes that the agents will place business with the Company. The Company believes the opportunity for growth exists through further penetration of existing agents' new and renewal business, as well as selective expansion of this group of agents in the future. Management believes that the loss of any particular agent or group of related agents would not have a material adverse impact on the operating results or financial position of the Company. The Company believes that as a regional insurance company, it has certain advantages, including a closer relationship with its agents and a better knowledge of its operating territories, that enable it to compete effectively against larger national carriers. The Company believes it distinguishes itself from its competitors by providing its agents and policyholders with superior service, products that target the preferred segment of the commercial and personal insurance markets, and an agents' compensation program which, in addition to standard commission rates, provides agents with a profit sharing plan and bonus commissions for certain 4 5 commercial lines of business. The Company services its agents from five Strategic Business Centers and from its home office in Buffalo, New York. The Strategic Business Centers are located in the Company's operating territories and focus primarily on policy sales and underwriting. The manager of a Strategic Business Center appoints new agents, agrees upon annual unit sales and premium objectives with the principal of the agency, and ensures that the principal of the agency communicates these objectives to the agency's sales staff. Strategic Business Center managers and Agency Business Managers, or "ABM's," develop customized "game plans" for each agent, which identify the opportunities to increase business and the actions required to achieve the objectives agreed to by the agent and the Company. In each of its Strategic Business Centers, the Company uses ABM's who are trained underwriters with at least five years of underwriting experience. ABM's meet with an agent's sales staff on a frequent basis to underwrite the Company's renewal policies, as well as to solicit and underwrite policies new to the agent and/or to the Company. ABM's carry laptop computers and can provide quotes for substantially all lines of business at the agents' offices. The Company believes personal contact between ABM's, who have underwriting authority, and an agent's sales staff provides the Company with a competitive advantage compared to many other property and casualty insurers, whose field representatives have no underwriting authority. By placing its underwriting decision maker in the agent's office, and thereby simplifying the underwriting process, the Company believes it can improve the retention rate on its renewal policies, as well as attract new policies. Each Strategic Business Center has an Agents' Advisory Council that meets at least twice a year. The Advisory Councils provide a forum for the Company and its agents to discuss issues of mutual interest, and to assure that the agents' business needs are being met. Additionally, the Chairmen of the Advisory Councils from each Strategic Business Center meet twice a year with senior officers of the Company. In addition to standard commissions paid as a percentage of premiums written, the Company's agents are eligible to participate in the Agents' Profit Sharing Plan, which rewards agents based on premiums written and a two year loss and allocated loss adjustment expense ("LAE") ratio on business placed by the agent with the Company. Payments under the Agents' Profit Sharing Plan for 1995 totalled $1,266,000 or 1.3% of direct premiums written, and increased participating agents' commissions received from the Company by approximately 22%. The Company believes the terms of its Agents' Profit Sharing Plan encourage its agents to increase the volume of profitable business they place with the Company. In June 1994, the Company instituted an Agent's Stock Option Program for MNH's agents which granted options to purchase 22,500 shares 5 6 of the Company's common stock to 54 agencies based on their volume and profitability. The Company believes the Agents' Stock Option Program aligns the interests of its agents more closely with the interests of the Company and its stockholders. Unlike many of its competitors, the Company pays the same commission rate on policies billed directly to the insured by the Company and on policies billed to the agent and, in turn, re-billed to the insured by the agent. By offering to bill the insured directly for both personal and commercial policies, the Company helps its agents minimize their administrative costs without a reduction in commission income. Approximately 75% of the voluntary premiums written by the Company in 1994 and 1995 were billed directly to policyholders. In order to assist its independent agents to compete more effectively with insurance companies that have direct sales forces, and to strengthen its relationship with those agents, the Company is providing advanced automation services, such as download capability, to many of its agents. Download capability, the electronic transmission of policy transactions from a company to an agency database, is a significant step in helping agents and the Company achieve the goal of single-entry, multiple company interface. The benefits to agents are simplified client management, more time available for sales activities, and fewer errors. Currently, the Company is downloading policy transactions to approximately 70 agents for private passenger automobile and homeowners' policies. The Company plans to offer download capability for commercial insurance policies when the property-casualty insurance industry adopts standards. The Company believes that developing automation capabilities to facilitate the sharing of information with its agents will improve its competitive position compared to other property and casualty insurers that do not have such capabilities. INSURANCE UNDERWRITING The Company is licensed to issue insurance policies in 13 states, primarily in the northeastern United States. In 1995, net premiums written totaled $97,577,000, with 58% of the net premiums written derived from commercial lines of insurance and 42% from personal lines of insurance. 6 7 The following table sets forth the distribution of the Company's direct premiums written by state for the years indicated:
Years Ended December 31, ------------------------ 1993 1994 1995 ----- ----- ----- New York 65% 65% 64% New Hampshire 12 12 11 New Jersey 12 11 14 Rhode Island 3 4 4 Pennsylvania 4 3 3 Massachusetts 2 3 3 Other 2 2 1 ----- ----- ----- Total 100% 100% 100% ===== ===== =====
The Company is licensed to underwrite most major lines of property and casualty insurance. It issues policies primarily to preferred individuals and small to medium size commercial risks. In general, the Company does not insure risks that involve a high potential of loss or have a long-tail reporting period. The types of risks insured in the Company's lines of business include: - Personal automobile - full coverage of family-owned standard performance automobiles, generally requiring drivers with no major violations or at-fault accidents in the last three years, and minimal youthful operator exposure. - Homeowners' - properties generally with no losses in the last three years that are less than 30 years old and valued between $75,000 and $300,000. - Commercial automobile - primarily light and medium use vehicles operating in a limited radius, with complete background information required of all drivers. - Commercial multi-peril - properties with medium to high construction quality and low to moderate fire exposure, and occupancies with low to moderate exposure to hazardous materials and processes. - General liability - low hazard service, mercantile and light processing businesses, generally with no losses in the last three years and with three years of business experience. - Workers' compensation - risks with low loss frequency and severity, low to moderate exposure to hazardous materials and processes, and favorable experience modification factors. Generally, workers' compensation insurance is written in conjunction with other commercial insurance. 7 8 The Company's underwriting strategy is to offer its insurance at rates which are designed to cover its costs, including the costs of any involuntary business associated with a particular line of insurance or a particular territory. This pricing strategy makes the Company's rates non-competitive with respect to certain lines of insurance or certain geographic regions. For example, the Company's published rates for personal automobile insurance in the New York City metropolitan area and other densely populated areas within its region of operations are significantly higher than those of some of its competitors. The Company believes that its pricing strategy allows the Company to write the types of insurance for which the price charged reflects the cost of providing coverage. Agents of the Company are also agents of Mutual, which generally sells the same lines of insurance as the Company to standard risk individuals and businesses. Applicants that meet the Company's preferred risk criteria are issued policies by the Company. Applicants that do not meet the Company's underwriting criteria, but which meet the less restrictive criteria of Mutual, are issued policies by Mutual, generally at higher premium rates. Under a quota share agreement with Mutual, the Company assumed 10% of the standard risks insured by Mutual, which would not generally meet the Company's more stringent underwriting guidelines. The terms of the agreement allow Mutual to reduce its cessions to MNH to 0% of Mutual's direct voluntary premiums written for any calendar year prior to the beginning of that calendar year. In December 1995, Mutual informed the Company that it would reduce its cessions to MNH to 0% of its direct voluntary premiums written for calendar year 1996. The Company establishes premium rates for most of its policies based on loss experience, in some cases after considering prospective loss costs suggested by the Insurance Services Office, Inc., an industry advisory group, for the preferred individual and commercial classes of business that it insures. The Company establishes rates independently for its personal automobile and homeowners insurance policies and its specialty products, such as contractors coverall and businessowners' policies. 8 9 The following table shows, for each of the years in the three year period ended December 31, 1995, (i) the amount of the Company's net premiums written attributable to various personal lines and commercial lines and (ii) underwriting results attributable to each such line as measured by the calendar year loss ratio for such line. The loss ratio is the ratio of incurred losses to net premiums earned for a given period.
Year ended December 31, ------------------------------------------------------------------------- 1993 1994 1995 ------------------------------------------------------------------------- Premiums Premiums Premiums Written Written Written ------------------------------------------------------------------------- Loss Loss Loss Amount % Ratio Amount % Ratio Amount % Ratio ------------------------------------------------------------------------- (dollars in thousands) Personal Auto Liability $23,285 25.5% 67.7% $21,278 23.6% 79.2% $22,556 23.1% 78.2% Auto Physical Damage 11,430 12.5 37.3 10,603 11.8 53.0 11,546 11.8 52.1 Homeowners' Multi-Peril 5,638 6.2 62.7 5,808 6.4 76.5 6,606 6.8 77.8 Total 40,353 44.2 58.0 37,689 41.8 71.5 40,708 41.7 70.7 Commercial Auto Liability 12,726 14.0 68.3 12,572 13.9 74.9 13,496 13.8 69.5 Auto Physical Damage 3,037 3.3 46.2 2,918 3.2 41.1 3,047 3.1 51.8 Commercial Multi-Peril 17,983 19.7 56.9 19,034 21.1 76.4 20,845 21.4 71.3 Workers' Compensation 9,045 9.9 98.3 10,229 11.3 54.0 12,223 12.5 94.7 Other Lines 8,048 8.9 62.4 7,745 8.7 58.8 7,258 7.5 56.0 Total 50,839 55.8 66.8 52,498 58.2 67.1 56,869 58.3 72.7 Total Personal and Commercial $91,192 100.0% 62.8% $90,187 100.0% 68.9% $97,577 100.0% 71.9% ======= ====== ======= ====== ======= ======
Calendar year loss ratios set forth in the table above include an estimate of losses for that accident year, as well as increases or decreases made in that year for prior accident year losses. Depending on the size of the increase in prior accident year losses, calendar year ratios may not be as indicative of the profitability of policies in force in a particular year as accident year ratios, which do not take into account increases in reserves for prior accident year losses. 9 10 Since 1987, the Company has pursued a strategy of controlled growth in commercial insurance in its existing territories. As a result, voluntary commercial direct premiums written comprise a greater portion of the Company's total voluntary direct premiums written than in previous years. The following table sets forth the composition of voluntary direct premiums written for 1991 through 1995:
Years Ended December 31, ------------------------ 1991 1992 1993 1994 1995 ---- ---- ---- ---- ---- Commercial 57% 57% 60% 62% 62% Personal 43 43 40 38 38 ---- ---- ---- ---- ---- Total 100% 100% 100% 100% 100% === === === === ===
COMMERCIAL LINES The Company's commercial business is primarily retail and mercantile in nature and generally consists of small to medium size, low hazard commercial risks which as a group have relatively stable loss ratios. The Company's underwriting criteria exclude lines of business and classes of risks that are considered by the Company to be high hazard or volatile, or which involve latent injury potential or other long-tail liability exposures. Although the commercial underwriting objectives of the Company and Mutual are similar, the Company has refined its selection criteria to include specific classes of businesses, occupancies, and operations with lower hazard ratings, which present a relatively lower exposure to loss and are charged a correspondingly lower premium. The Company offers specialized products within the commercial multi-peril line such as the Contractors Coverall Plus for artisan and trade contractors, the Super Businessowners' Program and BusinessElite for specified retail, service and office risks. Despite the lack of significant premium rate increases since 1988 in most of its commercial lines and the increased competition in the lines of business that the Company targets, the Company believes it can insure commercial business profitably by selecting those classes of risks that offer better profit potential. The Company competes for commercial business based upon the service it provides to agents and policyholders, the compensation it pays to its agents, and in certain instances, the price of its products. The Company establishes prices after considering its costs, the exposures inherent in a particular class of risk, potential investment income, projected future trends in loss frequency and severity, and the degree of competition within a specific territory. Accordingly, the relative prices of the Company's commercial products vary considerably in relation to competitors' prices. 10 11 PERSONAL LINES The Company offers personal automobile and homeowners' insurance to preferred risk individuals, generally requiring experienced drivers with no accidents or moving violations in the last three years for personal automobile insurance, and medium to high value homes with systems that are less than thirty years old in fire protected areas for homeowners' insurance. Personal automobile premium rates attempt to cover costs associated with required participation in involuntary personal automobile programs, in addition to the costs directly associated with the policies written voluntarily. The Company and Mutual have developed automated underwriting procedures for personal automobile and homeowners business, which perform an initial review of policy applications based upon established underwriting guidelines. Applications that do not meet the guidelines for automated acceptance are either referred to personal lines underwriters who review the applications and assess exposure, or rejected if the risk characteristics are such that neither the Company nor Mutual would accept the insured. As a condition to writing voluntary business in most states in which it operates, the Company must participate in state-mandated programs which provide insurance for individuals and businesses unable to obtain insurance voluntarily, primarily for personal automobile insurance. The legislation creating these programs usually allocates a pro rata portion of the risks attributable to such insureds to each company writing voluntary business in the state on the basis of its voluntary premiums written or the number of automobiles which it insures voluntarily. The Company's gross (direct and assumed) premiums written attributable to involuntary policies were $11,010,000, $9,274,000, and $11,317,000 in 1993, 1994 and 1995, respectively, mostly in New York. The Company is unable to predict the level of its annual involuntary business for 1996 or future years. CLAIMS Insurance claims on policies written by the Company are investigated and settled by claims adjustors employed by Mutual pursuant to the Management Agreement. The Company and Mutual maintain several claims offices within their operating territories. In areas where there is insufficient claim volume to justify the cost of internal claims staff, the Company and Mutual use independent appraisers and adjustors to investigate and settle claims. The Company's claims policy emphasizes timely investigation of claims, settlement of meritorious claims for equitable amounts, maintenance of adequate reserves for claims and control of external claims adjustment expenses. In order to support its claims policy, the Company has implemented a program designed to ensure that claims are assigned an accurate value, based on available information, as soon as practical. The program 11 12 includes the centralization of certain branch claims operations and an emphasis on the training of claims adjustors and supervisors by senior claims staff. This claims policy is designed to support the Company's marketing policy and provide agents and policyholders with prompt service and support. Claims settlement authority levels are established for each adjustor, supervisor and manager based on their expertise and experience. When the Company receives notice of a claim, it is assigned to an adjustor based upon its type, severity and line of business. The claims staff then reviews the claim, obtains appropriate documentation and establishes a loss reserve. Claims that exceed certain dollar amounts or that cannot be readily settled are assigned to senior claims staff. LOSS AND LAE RESERVES The Company, like other insurance companies, establishes reserves for losses and LAE. These reserves are estimates intended to cover the probable ultimate cost of settling all losses incurred and unpaid, including those losses not yet reported to the Company. An insurer's ultimate liability is likely to differ from such estimates because during the life of a claim, which may be many years, additional facts affecting an insurer's liability may become known. The reserves of an insurer are frequently adjusted based on monitoring by the insurer and periodic review by state insurance departments. Since 1989, the Company has retained an independent actuarial firm to satisfy state insurance departments' requirements with respect to the reporting of reserves for losses and LAE. Loss reserves are established for known claims based on the type and circumstance of the loss and the results of similar losses. For claims not yet reported to the Company, loss reserves are based on statistical information from previous experience periods, adjusted for inflation, trends in court decisions and economic conditions. LAE reserves are intended to cover the ultimate cost of investigating all losses that have occurred and defending lawsuits, if any, arising from such losses. LAE reserves are evaluated periodically using statistical techniques which compare current costs with historical data. Inflation is implicitly reflected in the reserving process through analysis of cost trends, and review of historical reserve results. With the exception of an immaterial amount relating to workers' compensation claims, loss reserves are not discounted for financial statement purposes. The Company's reserving process is based on the assumption that past experiences, adjusted for the effect of current developments and trends, are relevant in predicting future events. In the absence of specific developments, the process also assumes that the legal climate regarding the claims process and underlying liabilities remains constant. Other assumptions employed by the Company or its actuarial firm change from time to time as 12 13 circumstances change. In estimating loss and LAE reserves, the Company employs a number of actuarial methods, depending on their applicability to each line of business, in order to balance the advantages and disadvantages of each method. No single method is used to estimate loss and LAE reserves. Although different actuarial methods may give rise to different reserve estimates, which could be higher or lower than the reserves actually established by the Company, the Company believes that those differences are not material. The Company has recorded increases in reserves for prior accident year losses in subsequent years. These increases were necessary because of several factors, including inaccurate estimation of the extent of liability associated with a number of claims involving serious injuries relating to the 1985 through 1989 accident years, claims handling practices in the late 1980's that did not produce accurate and timely reserve levels for a broad range of claims, and a shift in the Company's mix of business from personal lines to commercial lines, which requires different technical claims expertise which the Company had to develop. During 1995, the Company experienced greater than anticipated severity (claim value) in liability claims related to its homeowners, businessowners, workers compensation and commercial package lines of insurance. 13 14 The following table sets forth the changes in the reserve for losses and LAE for 1993, 1994 and 1995.
Year-Ended December 31, ------------------------------ 1993 1994 1995 ----------------------------- (in thousands) Reserve for losses and LAE at beginning of year $86,159 $ 93,896 $104,015 Less reinsurance recoverables - 3,957 6,401 ------- ------- ------- Net balance at beginning of year 86,159 89,939 97,614 Provision for losses and LAE for claims occurring in: Current year 60,282 65,818 67,150 Prior years 2,125 4,982 11,045 ------- ------- ------ 62,407 70,800 78,195 ------- ------- ------ Losses and LAE payments for claims occurring in: Current year 22,903 28,574 25,175 Prior years 35,724 34,551 36,916 ------- ------- ------- 58,627 63,125 62,091 ------- ------- ------- Reserve for losses and LAE at end of year, net 89,939 97,614 113,718 Plus reinsurance recoverables 3,957 6,401 6,004 ------- ------- -------- Balance at end of year $93,896 $104,015 $119,722 ======= ======== ========
In recent years, the escalation of repair costs, medical expenses and jury awards have necessitated significant periodic upward adjustments in reserves by many property and casualty insurers, including the Company. In 1993, 1994 and 1995, the Company increased its reserves for prior years by $2,125,000, $4,982,000, and $11,045,000, respectively. The increases in reserves for prior years made in 1993 was primarily attributable to higher than anticipated severity of liability claims on commercial multi-peril and workers' compensation policies. The increase in reserves for prior years made in 1994 was primarily attributable to the $3,135,000 settlement of the AIP matter discussed in Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" as well as higher than anticipated severity of liability claims on auto, commercial multi-peril and workers' compensation policies. The increase in reserves for prior years made in 1995 was primarily attributable to higher than anticipated severity of liability claims on homeowners, businessowners, workers compensation and commercial package lines of insurance. 14 15 The first line of the following table presents, as of the end of the year at the top of each column, the estimated amount of unpaid losses and LAE for claims arising in that year and in all prior years, including claims that had occurred but were not yet reported to the Company. For each column, the rows of the table present, for the same group of claims, the amount of unpaid losses and LAE as re-estimated as of the end of each succeeding year. The estimate is modified as more information becomes known about the number and severity of claims for each year. The "cumulative deficiency" represents the change in the estimated amount of unpaid losses and LAE from the end of the year at the top of each column through the end of 1995. For each column in the table, the change from the liability for losses and LAE shown on the first line to the liability as re-estimated as of the end of the following year was included in operating results for the following year. That change includes the change in the previous year's column from the liability as re-estimated one year later to the liability as re-estimated two years later, which, in turn, includes the change in the second preceding column from the liability as re-estimated two years later to the liability as re-estimated three years later, and so forth. The rows of the lower portion of the table present, as of the end of each succeeding year, the amount of paid losses and LAE for claims unpaid at the end of the year at the top of each column. 15 16
Year Ended December 31, ----------------------- 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 ----- ------ ------- ------- ------- ------ ------- -------- ------ ------ (in thousands) Liability for losses and LAE $26,207 $32,137 $44,778 $55,412 $66,892 $71,222 $77,274 $86,159 $89,939 $97,614 Liability re-estimated as of: One year later 26,466 33,520 47,519 57,238 75,614 77,548 80,841 88,284 94,921 108,659 Two years later 27,806 33,873 47,112 61,534 76,310 75,987 81,743 91,224 100,607 Three years later 28,832 34,429 51,023 61,928 73,578 78,106 83,693 95,396 Four years later 29,564 39,086 52,104 61,014 75,672 79,563 87,105 Five years later 30,316 38,404 51,249 61,787 76,746 81,308 Six years later 30,740 38,049 51,764 62,201 77,026 Seven years later 30,573 38,411 52,141 62,332 Eight years later 30,712 38,368 52,035 Nine years later 30,444 38,283 Ten years later 30,217 Cumulative Deficiency - $ (4,010) (6,146) (7,257) (6,920) (10,134) (10,086) (9,831) (9,237) (10,668) (11,045) - % (15.3) (19.1) (16.2) (12.5) (15.1) (14.2) (12.7) (10.7) (11.9) (11.3) Paid (Cumulative) as of: One year later 12,913 15,225 20,649 21,393 32,538 32,666 30,082 35,724 34,551 36,916 Two years later 19,178 21,907 28,049 37,459 47,816 47,339 50,490 56,003 56,965 Three years later 22,957 26,159 38,936 47,816 58,489 61,585 63,925 69,863 Four years later 25,500 31,943 44,819 52,758 66,466 70,219 72,917 Five years later 27,337 34,076 46,931 56,732 71,322 75,018 Six years later 28,268 35,356 48,985 59,162 73,558 Seven years later 29,017 36,644 50,547 59,994 Eight years later 29,719 37,495 50,815 Nine years later 29,931 37,525 Ten years later 29,787
16 17 The loss and LAE reserves reported in the Company's consolidated financial statements prepared in accordance with generally accepted accounting principles ("GAAP") differ from those reported in the statements filed by MNH with the New Hampshire Insurance Department in accordance with statutory accounting principles ("STAT") as follows:
As of December 31, ---------------------- 1993 1994 1995 ------ ------ ----- (in thousands) Loss and LAE reserves on a STAT basis $88,386 $96,624 $113,059 Adjustments: Loss reserves ceded under a quota share agreement with an unrelated party 1,482 927 595 Ceded reinsurance balances recoverable 3,957 6,401 6,004 Write-down of reinsurance recoverable 71 63 64 -------- ------- -------- Loss and LAE reserves on a GAAP basis $93,896 $104,015 $119,722 ======= ======== ========
Reinsurance The Company follows the customary industry practice of reinsuring a portion of the exposure under its policies and as consideration pays to its reinsurers a portion of the premium received on its policies. Insurance is ceded principally to reduce an insurer's liability on individual risks and to protect against catastrophic losses. Although reinsurance does not legally discharge an insurer from its primary liability for the full amount of coverage provided by its policies, it does make the assuming reinsurer liable to the insurer to the extent of the reinsurance ceded. The Company is a party to reinsurance contracts under which certain types of policies are automatically reinsured without the need for approval by the reinsurer with respect to the individual risks that are covered ("treaty" reinsurance). The Company also is a party to reinsurance contracts which are handled on an individual policy or per risk basis and require the specific agreement of the reinsurer as to each risk insured ("facultative" reinsurance). Occasionally, the Company may secure facultative reinsurance to supplement its coverage under treaty reinsurance. 17 18 Since 1980, most of the Company's treaty and facultative reinsurance has been placed with General Reinsurance Corporation ("GenRe"), the largest reinsurer domiciled in the United States. The Company's excess of loss arrangements with GenRe for automobile liability, general liability and workers' compensation insurance provide for recovery of losses over $500,000 up to a maximum of $5,000,000 per occurrence. For claims occurring prior to 1993, the $500,000 threshold is indexed for inflation for casualty lines other than workers' compensation and New York State no-fault, and applies retroactively to all occurrences until they are settled. There is no index provision for casualty claims occurring after 1992. This coverage is supplemented by additional treaty reinsurance placed with GenRe covering losses up to $5,000,000 in excess of the first $5,000,000. Property reinsurance agreements with GenRe provide for recovery of property losses over $500,000 up to $2,000,000 per occurrence without any index provision. Property catastrophe coverage placed with many reinsurers worldwide provides for recovery of 95% of up to $37,000,000 above aggregate retained losses of $3,000,000 for each natural disaster. The property catastrophe coverage limits are shared by the Company and Mutual on a pro rata basis based upon the gross reported losses of the Company and Mutual for a covered event. The reinsurance premium rate paid to GenRe varies by each line of business. As of December 31, 1995, the Company had $6,007,000 of reinsurance recoverable on unpaid losses and paid losses, all of which it expects to recover. The excess of loss reinsurance agreement with GenRe has no definite term, but may be renegotiated yearly. The property catastrophe reinsurance agreement expires December 31, 1996. In 1987, the Company and GenRe agreed to limit the losses which could be recovered by the Company under its excess of loss treaties with GenRe for the 1980 through 1986 accident years in exchange for a cap on retrospective premiums due GenRe. At December 31, 1995, recoverable losses have exceeded the cap by $370,000, and the excess losses have been retained by the Company. Effective January 1, 1993, Mutual and MNH entered into a quota share reinsurance agreement under which MNH assumed 10% of Mutual's direct voluntary written premiums and related losses and allocated LAE in exchange for a reinsurance commission of 35%. The agreement also provides for MNH to pay a contingent commission to Mutual equal to any underwriting profit on the premiums assumed. Mutual pays the ceded premiums, net of commissions and paid losses, to MNH on a monthly basis and MNH invests these funds and earns investment income. To the extent commissions and paid losses exceed premiums, MNH is required to pay the net monthly balance to Mutual. The agreement has a term ending on January 1, 1996, and may be terminated by either party effective as of that date or on any January 1 thereafter with the prior approval 18 19 of the New York Superintendent of Insurance upon six months' notice to the other party. In addition, the agreement may be terminated by MNH at any time if any amount payable to MNH by Mutual becomes more than 90 days overdue or if there is a change in control of Mutual approved by the New York Superintendent of Insurance. Further, the agreement allows Mutual to reduce its cessions to MNH to 0% of Mutual's direct voluntary premiums written for any calendar year prior to the beginning of that calendar year. In December 1995, Mutual notified the Company that it was reducing its cessions to the Company for calendar year 1996 to 0% of its voluntary direct written premiums. INVESTMENTS The primary source of funds for investment by the Company is premiums received. Although premiums, net of commissions and other underwriting costs, are taken into income ratably over the terms of the policies, they provide funds for investment from the date they are received. Similarly, although establishment of and changes in reserves for losses and LAE are included in results of operations immediately, the amounts so set aside may be invested until the Company pays those claims. The investments of the Company are regulated by New Hampshire insurance law and are reviewed by the Board of Directors of the Company. Other than certain short-term investments held to maintain liquidity, the Company primarily invests in medium-term bonds, mortgage-backed and other asset-backed securities including collateralized mortgage obligations, and tax-exempt securities. The mortgage-backed securities he1d by the Company are typically purchased at expected yields which are greater than comparable maturity Treasury securities and are AAA or AA rated. The Company had $60,837,000 of tax-exempt bonds in its investment portfolio at December 31, 1995. The Company believes these tax-exempt bonds are of high quality (rated A or better) and offer an after-tax total return greater than comparable taxable securities. As of December 31, 1995, the Company owned $3,000,000 stated value of Signet Group PLC ("Signet") (formerly Ratners Group, PLC) auction rate preference shares. These securities have a variable dividend rate reset every 28 days through auction procedures. Beginning in 1991, the auction process failed, due to the lack of a sufficient number of buyers willing to purchase the shares. In 1992, Signet suspended dividend payments on all of its preference shares, including those owned by the Company. No dividends were received during the period from 1992 to 1995. This investment is carried at its fair value of $1,500,000 at December 31, 1995. The Company has not accrued or recorded any dividend income related to this investment since 1991. 19 20 At December 31, 1995, the Company had $4,470,000 of short-term investments with maturities less than 30 days, and $2,557,000 of non- investment grade securities, which includes the Signet preference shares. These non-investment grade securities represented 1.3% of its investment portfolio. The table below gives information regarding the Company's investments as of the dates indicated.
As of December 31, --------------------------------------------------------- 1993 1994 1995 ----- ------ ------ Amount % Amount % Amount % --------- - -------- - -------- - (dollars in thousands) Fixed Maturities (1): U.S. Government and Agencies $ 54,614 31.1% $ 49,113 28.8% $ 58,421 30.4% Corporate Bonds 36,521 20.8 50,742 29.7 63,997 33.3 Tax-Exempt Bonds 77,884 44.3 62,050 36.3 60,837 31.7 -------- ------ -------- ----- -------- ------ Total Bonds 169,019 96.2 161,905 94.8 183,255 95.4 Short-Term Invest- ments(2) 2,113 1.2 4,455 2.6 4,470 2.3 Other(3) 4,630 2.6 4,387 2.6 4,493 2.3 -------- ------ -------- ----- -------- ------ Total Invested Assets $175,762 100.0% $170,747 100.0% $192,218 100.0% ======== ====== ======== ====== ======== ====== - ------------------------------- (1) Fixed Maturities are shown at their carrying amounts in the respective balance sheet. Held to Maturity fixed maturities are included at amortized cost. Available for Sale fixed maturities are included at fair value. (2) Shown at cost, which approximates fair value. (3) Shown at unpaid principal balance or estimated fair value.
The table below sets forth the Company's net investment income and net realized gains, excluding the effect of income taxes, for the periods shown:
Year Ended December 31, -------------------------- 1993 1994 1995 -------------------------- (dollars in thousands) Average investments (1) $165,585 $176,791 $181,760 Net investment income 9,155 9,849 10,368 Net investment income as a percentage of average investments (2) 5.5% 5.6% 5.7% Net realized gains (losses) on investments $ 1,467 $ 20 $ (832) - ------------------------------------ (1) At amortized cost. (2) The tax equivalent yield for the years ended December 31, 1993, 1994 and 1995 were 6.2%, 6.4%, and 6.6%, respectively, assuming an effective tax rate of 34%.
20 21 The table below sets forth the carrying value of bonds and percentage distribution of various maturities at the dates indicated. Fixed Maturities are shown at their carrying amounts in the respective balance sheet. Held to Maturity fixed maturities are included at amortized cost. Available for Sale fixed maturities are included at fair value. The estimated repayment date was used instead of the ultimate repayment date for mortgage backed and other asset backed securities.
As of December 31, --------------------------------------------------- 1993 1994 1995 ---- ---- ---- Amount % Amount % Amount % ---------- - ----------- - ---------- - (dollars in thousands) 1 year or less $ 19,982 11.8% $ 10,560 6.5% $ 24,175 13.2% 1 year through 5 years 92,390 54.7 94,697 58.5 114,823 62.7 5 years through 10 years 56,647 33.5 49,825 30.8 36,967 20.1 More than 10 years - - 6,823 4.2 7,290 4.0 -------- ---- ---------- ------ ------- --- Total $169,019 100.0% $161,905 100.0% $183,255 100.0% ======== ====== ======== ====== ======== ======
COMPETITION The property and casualty insurance business is highly competitive. The Company is in direct competition with many national and regional multiple-line insurers, many of which are substantially larger than the Company and have considerably greater financial resources. Competition is further intensified by the independent agency system because each of the independent agents who sells the Company's policies also represents one or more other insurers. Also, the Company's agents compete with direct writing insurers and this indirectly affects the Company. Historically, the property and casualty industry has tended to be cyclical in nature. During the "up" cycle, or "hard market," the industry is characterized by price increases, strengthening of loss and LAE reserves, surplus growth and improved underwriting results. Near the end of the "up" cycle, an increase in capacity causes insurance companies to begin to compete for market share on the basis of price. This price competition causes the emergence of the "down" cycle, or "soft market," characterized by a reduction in the premium growth rate and a general decline in profitability. Generally, the down cycle is eventually accompanied by a decline in the adequacy of loss and LAE reserves and a decrease in premium writing capacity. The property casualty insurance industry has experienced a cyclical downturn for the past eight years due primarily to intense premium rate competition, which has resulted in lower profitability. Many of the circumstances which led to the current cyclical downturn in the property and casualty insurance industry continue to exist, and the Company cannot predict when or if market conditions for the industry will improve. 21 22 REGULATION GENERAL MNH is subject to regulation under applicable insurance statutes, including insurance holding company statutes, of the various states in which it writes insurance. Insurance regulation is intended to provide safeguards for policyholders rather than to protect stockholders of insurance companies or their holding companies. Insurance laws of the various states establish regulatory agencies with broad administrative powers including, but not limited to, the power to grant or revoke licenses to transact insurance business and to regulate trade practices, investments, premium rates, the deposit of securities, the form and content of financial statements and insurance policies, accounting practices and the maintenance of specified reserves and capital. The regulatory agencies of each state have statutory authority to enforce their laws and regulations through various administrative orders, civil and criminal enforcement proceedings, and the suspension or revocation of certificates of authority. In extreme cases, including insolvency, impending insolvency and other matters, a regulatory authority may take over the management and operation of an insurer's business and assets. Under insolvency or guaranty laws in the states in which MNH operates, insurers doing business in those states can be assessed up to prescribed limits for policyholder losses caused by other insurance companies that become insolvent. The extent of any requirement for MNH to make any further payment under these laws is not determinable. Most laws do provide, however, that an assessment may be excused or deferred if it would threaten a solvent insurer's financial strength. In addition, MNH is required to participate in various mandatory pools or underwriting associations in certain states in which it operates. The property and casualty insurance industry has been the subject of new regulations and legislative activity in various states attempting to address the affordability and availability of different lines of insurance. The regulations and legislation generally restrict the discretion an insurance company has in operating its business. Specific regulatory developments which could materially adversely affect the operations of the Company include, but are not limited to, the possible repeal of or amendment to the McCarran-Ferguson Act (which exempts insurance companies from a variety of federal regulatory requirements) and rate roll-back legislation. It is not possible to predict the effect, if any, that new regulations and legislation would have on the Company and MNH. 22 23 The Company depends on cash dividends from MNH to pay cash dividends to its stockholders and to meet its expenses. MNH is subject to New Hampshire state insurance laws which restrict its ability to pay dividends without the prior approval of state regulatory authorities. These restrictions limit dividends to those that, when added to all other dividends paid within the preceding twelve months, would not exceed 10% of the insurer's policyholders' surplus as of the preceding December 31st. The maximum amount of dividends that MNH could pay during any twelve month period ending in 1996 without the prior approval of the New Hampshire Insurance Commissioner is $4,661,000. In certain states in which it operates, MNH is required to maintain deposits with the appropriate regulatory authority to secure its obligations under certain insurance policies written in the jurisdiction. At December 31, 1995, investments of MNH having a par value of $1,800,000 were on deposit with regulatory authorities. MNH and Mutual are required to file detailed annual reports with the appropriate regulatory agency in each of the states in which they do business. Their business and accounts are subject to examination by such agencies at any time, and the laws of many states require periodic examination. During 1995 the New Hampshire Insurance Department issued its report on MNH for the 5 year period ended December 31, 1992. In its report the New Hampshire Insurance Department concluded that MNH's loss and loss adjustment expense reserves were deficient; however, no regulatory action was taken related to this report. Also, during 1995 the New York Insurance Department issued its report on the Mutual's financial condition as of December 31, 1994, and concluded that Mutual's loss and loss adjustment expense reserves were adequate. In 1993 the National Association of Insurance Commissioners ("NAIC") adopted a risk-based capital measurement formula to be applied to all property and casualty insurance companies. The formula calculates a minimum required statutory net worth, based on the underwriting, investment, credit, loss reserve and other business risks inherent in an individual company's operations. Any insurance company that does not meet threshold risk-based capital measurement standards could be forced to reduce the scope of its operations and ultimately could become subject to statutory receivership proceedings. MNH's capital substantially exceeds the statutory minimum as determined by the risk based capital measurement formula as of December 31, 1995. The NAIC has established eleven financial ratios (the Insurance Regulatory Information System, or "IRIS") to assist state insurance departments in their oversight of the financial condition of insurance companies operating in their respective states. The NAIC calculates these ratios based on information submitted by insurers on an annual basis and shares the information with the applicable state insurance departments. The ratios relate to leverage, profitability, liquidity and loss 23 24 reserve development. Each of the Company's ratios for 1991 through 1994 fell within the usual or acceptable range as published by the NAIC. Three of the Company's ratios as of December 31, 1995 relating to profitability and loss reserve development fell outside of the acceptable range of ratios. All three of the ratios were outside of the acceptable ranges due to the $11,045,000 increase in the provision for losses and LAE recorded in 1995, for claims occurring in years prior to 1995, as discussed in this Item under the heading "Loss and LAE Reserves". RATES Premium rate regulations vary greatly among states and lines of insurance, but generally require approval of the regulatory authority or limited review by the authority prior to changes in rates. However, in New York, insurers writing in designated commercial risk, professional liability and public entity insurance markets may periodically revise rates within the limits of applicable flexibility bands ("flex-bands") on a file and use basis, but must obtain the Department's prior approval in order to implement rate increases or decreases beyond these flex-bands. INSURANCE HOLDING COMPANIES The Company is subject to statutes governing insurance holding company systems. Typically, such statutes require the Company to file information periodically concerning its capital structure, ownership, financial condition and general business operations and material inter-company transactions not in the ordinary course of business. Under the terms of applicable New Hampshire statutes, any person or entity desiring to purchase shares which would result in such person beneficially owning 10% or more of the Company's outstanding voting securities would be required to obtain regulatory approval prior to the purchase. INVOLUNTARY INSURANCE As a condition to writing voluntary insurance in most of the states in which it operates, the Company must participate in programs that provide insurance for persons unable to obtain insurance voluntarily. Uncertainties as to the size of the involuntary market population make it difficult to predict the amount of involuntary business in a given year. Further complicating the ability to predict assignments in New York is the Territorial Credit Program ("TCP") instituted by the Department in 1990. The TCP provides companies credits against their NYAIP assignments based upon their voluntary automobile writings in designated territories two years prior to the assignment year. Designated territories are territories in which the ratio of NYAIP-insured car years to total-insured car years exceeds the statewide average of the same ratio. The designated territories are primarily in or near the New York City metropolitan area, an area in which the Company does not have, or intend to develop, a significant market presence. The Company's voluntary market share 24 25 in the designated territories is less than its statewide market share, which may result in an increase in the Company's NYAIP assignments in 1996 and subsequent years. EMPLOYEES The Company has no employees. At December 31, 1995, Mutual had 352 full-time employees. The Company believes that Mutual's relationship with its employees is satisfactory. Item 2. PROPERTIES. Although the Company has no facilities, it benefits from the facilities of Mutual pursuant to the Management Agreement, under which the Company is charged a proportionate share of the costs of such facilities. The Company's corporate headquarters are located in Buffalo, New York in a building owned by Mutual that contains approximately 113,000 square feet of office space. Mutual also has regional underwriting and/or claims office facilities in Buffalo, Albany and Central Islip, New York; Bedford, New Hampshire; and Moorestown, New Jersey. All of the offices except the Buffalo office are leased. Item 3. LEGAL PROCEEDINGS. On January 31, 1995, a New York State trial court dismissed a purported class action lawsuit which was filed in 1993 against the Company, Mutual, MNH and certain directors of the Company and of Mutual (the "defendants") on behalf of the then minority shareholders of the Company. The Court, in granting the defendants' motion, held that plaintiff's claims, to the extent they have any merit, are derivative in nature. The complaint, which sought equitable relief and unspecified money damages, alleged that the defendants breached their fiduciary obligations to the minority shareholders of the Company, and defrauded the minority shareholders, by causing MNH to purchase from the FDIC a surplus note issued by Mutual and simultaneously reducing the principal amount plus accrued return on such surplus note to $1,350,000, which is the amount MNH paid to the Federal Deposit Insurance Corporation ("FDIC") for the note, and by approving the public sale of the Company's common stock sold in July 1993 at what the plaintiff alleges was an inadequate price. On March 31, 1995, the plaintiff filed a motion with the trial court for permission to reargue the defendants motion to dismiss. On September 29, 1995, the trial court denied the plaintiff's motion to reargue. The plaintiff then filed an amended complaint dated November 6, 1995, which asserts the same claims as were asserted in his class action lawsuit but in the form of a derivative suit. The Company's Board of Directors appointed a special committee to investigate and determine the Company's position with respect to this derivative lawsuit, and, based on that committee's report and 25 26 recommendation, the Board of Directors determined in its business judgment that continuation of this lawsuit was not in the Company's best interest. Accordingly, the Company and the other defendants filed a motion to dismiss this lawsuit on February 23, 1995, and that motion is pending. MNH, like many other property and casualty insurance companies, is subject to environmental damage claims asserted by or against its insureds. Management of the Company is of the opinion that based on various court decisions throughout the country such claims should not be recoverable under the terms of MNH's insurance policies because of either specific or general coverage exclusions contained in the policies. However, there is no assurance that the courts will agree with MNH's position in every case, nor can there be assurance that material claims will not be asserted under policies which a court will find do not explicitly or implicitly exclude claims for environmental damages. Management, however, is not aware of any pending claim or group of claims which would result in a liability that would have a material adverse effect on the financial condition of the Company or MNH. In addition to the foregoing matters, MNH is a defendant in a number of other legal proceedings in the ordinary course of its business. Management of the Company is of the opinion that the ultimate aggregate liability, if any, resulting from such proceedings will not materially affect the financial condition of the Company or MNH. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. None. 26 27 PART II Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS. The Company's common stock is traded on the American Stock Exchange (AMEX symbol: MGP). The following table sets forth the high and low closing prices of the common stock for the periods indicated as reported on the American Stock Exchange.
1995: High Low - ----- ---- --- Fourth Quarter $19.38 $16.75 Third Quarter 19.63 16.38 Second Quarter 18.88 14.75 First Quarter 15.75 14.50 1994: - ----- Fourth Quarter $15.25 $14.12 Third Quarter 16.75 15.12 Second Quarter 16.50 14.50 First Quarter 17.12 14.50
The number of stockholders of record of the Company's Common Stock as of March 1, 1996 was 127. Securities held by nominees are counted as one stockholder of record. The Company began paying a quarterly cash dividend of $.05 per share to its common stockholders during the third quarter of 1993. Continued payment of this dividend and its amount will depend upon the Company's operating results, financial condition, capital requirements and other relevant factors, including legal restrictions applicable to the payment of dividends by its insurance subsidiary, MNH. As a holding company, the Company depends on dividends from its subsidiary, MNH, to pay cash dividends to its stockholders. MNH is subject to New Hampshire state insurance laws which restrict its ability to pay dividends without the prior approval of state regulatory authorities. These restrictions limit dividends to those that, when added to all other dividends paid within the preceding twelve months, would not exceed 10% of the insurer's policyholders' surplus as of the preceding December 31. The maximum amount of dividends that MNH could pay during any twelve month period ending in 1996 without prior approval of the New Hampshire Insurance Commissioner is $4,661,000. 27 28 Item 6. SELECTED FINANCIAL DATA. The selected financial data set forth in the following table for each of the five years in the period ended December 31, 1995 have been derived from the audited consolidated financial statements of the Company.
Year Ended December 31, ----------------------------------------------------- 1991 1992 1993 1994 1995 ---- ---- ---- ---- ---- (in thousands, except per share amounts) Income Data: - ------------ Net premiums written $ 90,988 $84,341 $91,192 $ 90,187 $ 97,577 ======== ======= ======= ========= ========= Net premiums earned $ 89,136 $87,912 $88,181 $ 90,845 $ 94,749 Net investment income 10,764 9,003 9,155 9,849 10,368 Net realized investment gains (losses) 1,687 1,066 1,467 20 (832) Other revenues 845 615 693 638 259 -------- ------- ------- --------- --------- Total revenues 102,432 98,596 99,496 101,352 104,544 -------- ------- ------- --------- --------- Losses and loss adjustment expenses 63,049 61,803 62,407 70,800 78,195 Amortization of deferred policy acquisition costs 23,621 23,297 23,739 24,424 25,458 Other underwriting expenses 7,012 7,143 6,020 5,892 7,709 -------- ------- ------- --------- --------- Total expenses 93,682 92,243 92,166 101,116 111,362 -------- ------- ------- --------- --------- Income (loss) before income taxes 8,750 6,353 7,330 236 (6,818) Provision (benefit) for income taxes 2,490 1,238 1,727 (895) (2,999) -------- ------- ------- --------- --------- Income (loss) before cumulative effect of change in accounting for income taxes 6,260 5,115 5,603 1,131 (3,819) Cumulative effect of change in accounting for income taxes -- -- 306 -- -- -------- ------- ------- --------- --------- Net income (loss) $ 6,260 $ 5,115 $ 5,909 $ 1,131 $ (3,819) ======== ======= ======= ========= =========
28 29 Merchants Group, Inc. Selected Financial Data - continued
Year Ended December 31, ------------------------------------------------------- 1991 1992 1993 1994 1995 ---- ---- ---- ---- ---- (in thousands, except per share amounts) Primary and fully diluted earnings (loss) per share: Before cumulative effect of change in accounting for income taxes $ 2.91 $ 2.31 $ 2.12 $ .36 $ (1.19) Cumulative effect of change in accounting for income taxes -- -- .12 -- -- -------- -------- -------- -------- --------- Primary and fully diluted earnings (loss) per share $ 2.91 $ 2.31 $ 2.24 $ .36 $ (1.19) ======== ======== ======== ======== ========= Weighted average number of shares outstanding: Primary 2,005 2,108 2,641 3,177 3,219 Fully diluted 2,407 2,109 2,641 3,177 3,220 Balance Sheet Data: - ------------------- (at year end) ------------- Total investments $144,977 $157,478 $175,762 $170,747 $ 192,218 Total assets 181,405 193,202 219,188 227,750 252,808 Reserve for losses and loss adjustment expenses 77,274 86,159 93,896 104,015 119,722 Unearned premiums 44,296 40,725 46,006 45,449 48,773 Stockholders' equity 51,792 53,265 75,083 67,279 69,970 Dividend Data: - -------------- Cash dividend per common share $ -- $ -- $ .10 $ .20 $ .20 ======== ======== ======== ======== =========
29 30 Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1995 Compared to 1994. - ---------------------- Total revenues increased 3% from $101,352,000 in 1994 to $104,544,000 in 1995. Of the $3,192,000 increase, $3,904,000 was attributable to a 4% increase in net premiums earned and $519,000 was attributable to an 5% increase in net investment income. These increases were partly offset by a $852,000 decrease in net realized investment gains and a $379,000 decrease in other revenues. Net premiums written increased 8% from $90,187,000 in 1994 to $97,577,000 in 1995, primarily due to 10% increase in direct premiums written. This increase in direct premiums written was partially offset by a 48% decrease in premiums written assumed from Mutual in accordance with the quota share reinsurance agreement between Mutual and MNH. In December 1995, Mutual informed MNH that it would exercise its option to reduce its cessions to MNH under the agreement to 0% of Mutual's direct voluntary premiums written effective for calendar year 1996, including premiums written in 1995 but which were unearned as of December 31, 1995. As a result, premiums written assumed by the Company from Mutual under this reinsurance agreement decreased from $4,086,000 in 1994 to $2,110,000 in 1995. Voluntary commercial lines direct premiums written increased 11% from $51,602,000 in 1994 to $57,304,000 in 1995. Commercial lines retention rates held constant and commercial lines policies in force increased 1% in 1995 compared to 1994. Average premium per policy increased 10% in 1995 compared to 1994. Direct premiums written in each commercial line of business, except contractors' coverall, increased in 1995 compared to 1994. Voluntary personal lines direct premiums written increased 7% from $32,101,000 in 1994 to $34,393,000 in 1995. Private passenger automobile direct premiums written, which comprised 79% of total voluntary personal lines direct premiums written in 1995, increased 5% in 1995 compared to 1994. Homeowners' direct premiums written increased 17% in 1995 compared to 1994 due to a 4% increase in policies in force and a 13% increase in average premium per policy. Net investment income increased 5% from $9,849,000 in 1994 to $10,368,000 in 1995, primarily due to a 3% increase in average invested assets. On a taxable equivalent basis, net investment income increased 3% in 1995 compared to 1994. 30 31 The Company's investment in Signet included in other long-term investments is carried at fair value. During 1995, the Company recorded an $840,000 loss on its investment in Signet which is included as a component of realized investment gains and losses in the consolidated statement of income. There were no material gains or losses realized from the sale of investments in 1994 or 1995. Losses and LAE increased 10% from $70,800,000 in 1994 to $78,195,000 in 1995. The loss and LAE ratio increased from 77.9% in 1994 to 82.5% in 1995. As a result of greater than expected reported loss experience during 1995, the Company increased its estimate for claims that occurred in 1989 through 1994 for the homeowners, businessowners, workers' compensation, and commercial lines of business. Partly offsetting these increases was a reduction in the Company's estimate of automobile insurance claims that occurred in 1993 and 1994. The net increase in the reserve for prior year losses and LAE approximated $11,000,000 and added 11.6 percentage points to the loss and LAE ratio in 1995. Losses in 1994 included $3,135,000 paid to Mutual as a one time settlement for losses relating to the 1985 through 1994 accident years on involuntary automobile insurance policies issued by Mutual under automobile insurance plans ("AIP"). In accordance with various states' AIP rules, Mutual historically has received the assignment of MNH's, as well as its own, AIP policies based on its and MNH's combined voluntary automobile market share, issued the policies and settled the claims associated with those polices. Mutual then allocated the results of the involuntary AIP business to MNH based on MNH's share of the combined voluntary automobile business of Mutual and MNH. In July 1994, Mutual informed the Company that it had failed to identify and bill MNH during the period January 1, 1985 through June 30, 1994 for a portion of MNH's share of AIP losses paid by Mutual in that period. The amount of unbilled AIP losses was approximately $7,500,000. After extensive negotiations, between the Company's and Mutual's independent Directors, MNH agreed to pay Mutual $3,135,000 in full and complete settlement of the unbilled AIP paid losses for the period noted above. This settlement increased the 1994 loss and LAE ratio by 3.5 percentage points. Also included in losses in 1994 was approximately $2,400,000 of losses related to severe winter weather that struck the northeastern United States. The losses from these storms increased the loss and LAE ratio in 1994 by 2.6 percentage points. 31 32 In 1995, the Company increased its reserve for losses and LAE related to prior years by $11,045,000, compared to an increase in reserve for losses and LAE related to prior years of $4,982,000 recorded in 1994. Involuntary automobile insurance business increased MNH's calendar year loss and LAE ratio by approximately 3.1 percentage points and decreased MNH's calendar year loss and LAE ratio by .6 percentage points for the years ended December 31, 1994 and 1995, respectively. The combined ratio on involuntary automobile business was greater than the combined ratio on voluntary automobile business. The ratio of policy acquisition costs and other underwriting expenses to net premiums earned increased from 33.4% in 1994 to 35.0% in 1995. In 1995, other underwriting expenses included approximately $1,100,000 related to the 1995 resignation of the Company's former Chief Executive Officer. These expenses added approximately 1.2 percentage points to the ratio of policy acquisition costs and other underwriting expenses to net premiums earned in 1995. Commissions, premium taxes and other state assessments that vary directly with the Company's premium volume represented 20.6% of net premiums earned in 1995 and 1994. Certain other underwriting expenses, such as salaries, employee benefits, and other operating expenses vary indirectly with volume and comprise the remainder of the Company's underwriting expenses. The Company recorded an income tax benefit in 1995 and 1994. The benefits recorded were larger than that calculated using the statutory federal income tax rate due to tax exempt bond income. 1994 Compared to 1993. - ---------------------- Total revenues increased 2% from $99,496,000 in 1993 to $101,352,000 in 1994. Of the $1,856,000 increase, $2,664,000 was attributable to a 3% increase in net premiums earned and $694,000 was attributable to an 8% increase in net investment income. These increases were partly offset by a $1,447,000 decrease in net realized investment gains and a $55,000 decrease in other revenues. Net premiums written decreased 1% from $91,192,000 in 1993 to $90,187,000 in 1994, primarily due to a decline in the premiums assumed from Mutual in accordance with the quota share reinsurance agreement. The Company assumed $6,114,000 and $4,086,000 of written premiums from Mutual in 1993 and 1994, respectively, under the terms of this agreement. This decrease in net premiums written was partially offset by a 2% increase in direct written premiums. 32 33 Voluntary commercial lines direct premiums written increased by 7% from $48,304,000 in 1993 to $51,602,000 in 1994. Commercial lines retention rates held constant in 1994 compared to 1993 as did the number of commercial policies in force. Average premium per policy increased 3% in 1994 compared to 1993. Direct premiums written in each commercial line of business, except contractors' coverall, increased in 1994 compared to 1993. Voluntary personal lines direct premiums written increased 2% from $31,575,000 in 1993 to $32,101,000 in 1994. Private passenger automobile direct premiums written, which comprised 82% of total voluntary personal lines direct premiums written in 1994, were unchanged in 1994 compared to 1993. Homeowners' direct premiums written increased 10% in 1994 compared to 1993. Net investment income increased 8% from $9,155,000 in 1993 to $9,849,000 in 1994, primarily due to a 7% increase in average invested assets. On a taxable equivalent basis, net investment income increased 9% in 1994 compared to 1993. Losses and LAE increased 13% from $62,407,000 in 1993 to $70,800,000 in 1994. The loss and LAE ratio increased from 70.8% in 1993 to 77.9% in 1994. Losses in 1994 included $3,135,000 paid to Mutual as a one time settlement for losses relating to the 1985 through 1994 accident years on involuntary automobile insurance policies issued by Mutual under AIP's. Also included in losses in 1993 and 1994, respectively, were approximately $630,000 and $2,400,000, of losses related to severe winter weather that struck the northeastern United States. The losses from these storms increased the loss and LAE ratio in 1993 and 1994 by .7 and 2.6 percentage points, respectively. In 1994, the Company increased its reserve for losses and LAE related to prior years by $4,982,000, compared to an increase in reserve for losses and LAE related to prior years of $2,125,000 recorded in 1993. Approximately $3,100,000 of the $4,982,000 related to the settlement of AIP losses with Mutual. Involuntary automobile insurance business increased MNH's calendar year loss and LAE ratio by approximately 2.1 and 3.1 percentage points for the years ended December 31, 1993 and 1994, respectively. The combined ratio on involuntary automobile business was substantially greater than the combined ratio on voluntary automobile business. The ratio of policy acquisition costs and other underwriting expenses to net premiums earned decreased from 33.7% in 1993 to 33.4% in 1994. In 1993, policy acquisition costs and other underwriting expenses included a $368,000 credit for New Hampshire Business and Profits Tax credits, relating to the years 1989 through 1992. Excluding the effect of this non-recurring credit, the ratio of amortized policy acquisition costs and other 33 34 underwriting expenses to net premiums earned in 1993 would have been 34.2% Commissions, premium taxes and other state assessments that vary directly with the Company's premium volume represented 20.6% of net premiums earned in 1994, compared to 21.6% of net premiums earned in 1993. In addition, certain other underwriting expenses, such as salaries, employee benefits, and other operating expenses vary indirectly with volume and comprise the remainder of the Company's underwriting expenses. The Company recorded an income tax benefit in 1994. The benefit recorded was larger than that calculated using the statutory federal income tax rate due to tax exempt bond income. The Company's effective federal income tax rate on operating income for 1993 was 23.6%. Tax exempt bond income reduced the Company's effective tax rate by 10 percentage points in 1993. Liquidity and Capital Resources - ------------------------------- In developing its investment strategy, the Company determines a level of cash and short-term investments which, when combined with expected cash flow, is estimated to be adequate to meet expected cash obligations. Historically, the excess of premiums collected over payments on claims, combined with cash income from investments, has provided the Company with short-term funds in excess of normal operating demands for cash. Net cash provided by operations increased by $4,190,000 from $8,315,000 in 1994 to $12,505,000 in 1995. This increase resulted primarily from a $1,547,000 increase in premiums collected, a $1,034,000 decrease in payments of losses and LAE and a $702,000 decrease in income taxes paid. Net cash used in investing activities increased $4,785,000 from $7,688,000 in 1994 to $12,473,000 in 1995. This increase resulted primarily from a $6,375,000 decrease in cash provided by the maturity or sale of fixed maturities. Net cash used in financing activities decreased $602,000 from $613,000 in 1994 to $11,000 in 1995 primarily due to a $624,000 increase in proceeds from the exercise of employee stock options. The Company has several objectives with respect to its investment portfolio, which include maximizing total return while protecting policyholders' surplus, maintaining flexibility and liquidity, and maintaining a reasonable duration match between assets and liabilities. Like other property casualty insurers, the Company relies on premiums as a major source of cash, and therefore liquidity. Cash flows from the Company's investment portfolio, either in the form of interest or principal payments, are an additional source of liquidity. Because the duration of the Company's investment portfolio and liabilities are relatively matched, substantial increases or decreases in market interest 34 35 rates are not expected to have a material effect on the Company's liquidity, or its results of operations. The Company generally designates newly acquired fixed maturity investments as available for sale and carries these investments at fair value. In December 1995, the Company re-assessed the classification of all its fixed maturity investments as permitted by the Financial Accounting Standards Board. As a result, the Company reclassified as available for sale certain fixed maturity securities that had previously been classifed as held to maturity. This transfer resulted in a $1,044,000 increase in stockholders' equity at December 31, 1995. The Company's investment in Signet cumulative auction rate preference shares included in other long-term investments is carried at its fair value of $1,500,000 at December 31, 1995. During 1995, the Company determined that the decline in fair value of its Signet investment was other than temporary and recorded an $840,000 loss in its Consolidated Statement of Income as a component of realized gains and losses. Subsequent adjustments to the fair value of Signet are considered temporary and are recorded directly to stockholders' equity. As a result of the decrease in market interest rates during 1995 and their favorable impact on bond prices, and the effect of the realized loss recognized on the Signet investment, the Company recorded a before tax reduction of $9,880,000 to its unrealized losses during 1995. At December 31, 1995 the Company's bond portfolio represented 95.3% of invested assets. Management believes that this level of bond holdings will not adversely affect the Company's liquidity because it expects that cash receipts from net premiums written and investment income will be sufficient to enable the Company to satisfy its cash obligations in 1996. Furthermore, a substantial portion of the Company's bond portfolio is invested in mortgage-backed and other asset-backed securities, which, in addition to interest income, provide monthly paydowns of bond principal. At December 31, 1995, $81,597,000, or 44.5% of the Company's bond portfolio was invested in mortgage-backed and other asset-backed securities, primarily planned amortization class ("PAC") and sequential pay collateralized mortgage obligations ("CMO"). A PAC-CMO has an amortization schedule that is protected against prepayment risk under a wide range of interest rate scenarios and is therefore less susceptible to prepayment risk than other mortgage backed securities. The Company has not invested in the more volatile types of CMO products such as interest only, principal only or inverse floating rate securities. All of the Company's CMO investments have an active secondary market and their effect on the Company's liquidity does not differ from that of other fixed maturity investments. The Company does not own any other derivative financial instruments such as futures or options. 35 36 At December 31, 1995, $2,557,000, or 1.3%, of the Company's investment portfolio was invested in non-investment grade securities. As a holding company, the Company is dependent upon cash dividends from MNH to meet its obligations and pay any cash dividends. MNH is subject to New Hampshire insurance laws which place certain restrictions on its ability to pay dividends without the prior approval of state regulatory authorities. These restrictions limit dividends to those that, when added to all other dividends paid within the preceding twelve months, would not exceed 10% of the insurer's policyholders' surplus as of the preceding December 31. The maximum amount of dividends that MNH could pay during any twelve month period ending in 1996 without the prior approval of the New Hampshire Insurance Commissioner is $4,661,000. The Company paid a $.05 per share quarterly cash dividend to its common stockholders totalling $635,000 in 1995. On November 1, 1994, Mutual filed an application with the New York Insurance Department ("Department") to convert from a mutual to a stock corporation under the New York law that permits a mutual insurance company to demutualize. In a demutualization, a mutual insurance company's policyholders and surplus note holders are entitled to receive their equitable share of that company's appraised fair market value in cash or securities or a combination thereof. Mutual's application is currently pending with the Department and must ultimately be approved by the Department and Mutual's policyholders after the Department has determined Mutual's fair market value based upon an independent appraisal. The Company has advised Mutual and the Department of its interest in sponsoring Mutual's demutualization, and Mutual has granted the Company a right of first refusal in that regard. The Company would consider acquiring Mutual if it determines that the appraised value is acceptable and it has sufficient capital to fund the acquisition. In the event the Company is not able to acquire Mutual at a price, on terms or in a time frame acceptable to the Company, the Company may elect to develop its own management structure and might, therefore, terminate the Management Agreement, subject to its required five year notice provision, or request that Mutual and the Department agree to amend the Management Agreement. Such an amendment might include, but not be limited to, a shortening of the termination period. MNH, like many other property and casualty insurance companies, is subject to environmental damage claims asserted by or against its insureds. Management of the Company is of the opinion that based on various court decisions throughout the country, such claims should not be recoverable under the terms of MNH's insurance policies because of either specific or general coverage exclusions contained in the policies. However, there is no assurance that the courts will agree with MNH's position in every case, nor can there be assurance that material claims will not be asserted under policies which a court will find do not explicitly or implicitly exclude claims for environmental damages. 36 37 Management, however, is not aware of any pending claim or group of claims which would result in a liability that would have a material adverse effect on the financial condition of the Company or MNH. Industry and regulatory guidelines suggest that the ratio of a property and casualty insurer's annual net premiums written to its statutory surplus should not exceed 3 to 1. The Company has consistently followed a business strategy that would allow it to meet this 3 to 1 regulatory guideline. MNH's ratio of net premiums written to statutory surplus during 1995 was 2.1 to 1. Inflation - --------- Inflation affects the Company, like other companies in the property and casualty insurance industry, by contributing to higher losses, LAE and operating costs, as well as greater investment income resulting from the higher interest rates which can prevail in an inflationary period. Premium rates, however, may not keep pace with inflation since competitive forces generally limit the Company's ability to increase premium rates. The Company considers inflationary trends in estimating its reserves for claims reported and for incurred but not reported claims. Management believes that its policy of timely recording and settling claims has helped it to lessen the potential effect that inflation can have on claims which remain open for several years. Federal Taxation - ---------------- The Company and MNH are subject to federal income taxation under the provisions of the Internal Revenue Code of 1986, as amended. 37 38 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. The consolidated financial statements required in response to this Item are submitted as part of Item 14 (a) of this report. Quarterly data for the two most recent fiscal years is set forth below:
Three months ended ------------------ 3/31 6/30 9/30 12/31 ---- ---- ---- ----- (in thousands, except per share amounts) 1995 - ---- Net premiums earned $ 22,710 $ 23,392 $ 24,432 $ 24,215 Net investment income 2,523 2,588 2,559 2,698 Net realized investment losses -- (832) -- -- Other revenues (expenses), net 273 (224) 50 160 -------- -------- -------- -------- Total revenues 25,506 24,924 27,041 27,073 ======== ======== ======== ======== Income (loss) before income taxes 1,525 (7,899) (2,198) 1,754 Net income (loss) 1,111 (3,916) (1,996) 982 Net income (loss) per common share .35 (1.23) (.62) .30 1994 - ---- Net premiums earned $ 22,562 $ 22,643 $ 23,314 $ 22,326 Net investment income 2,550 2,420 2,415 2,464 Net realized investment gains (losses) (3) 30 (3) (4) Other revenues 82 182 185 189 -------- -------- -------- -------- Total revenues 25,191 25,275 25,911 24,975 ======== ======== ======== ======== Income (loss) before income taxes (283) (1,382) 1,942 (41) Net income (loss) 25 (771) 1,449 428 Net income (loss) per common share .01 (.24) .46 .13
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. None. 38 39 PART III Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT. The Company's definitive proxy statement which will be filed with the Commission pursuant to Regulation 14A within 120 days after the end of the Company's fiscal year is incorporated herein by reference. Item 11. EXECUTIVE COMPENSATION. The Company's definitive proxy statement which will be filed with the Commission pursuant to Regulation 14A within 120 days after the end of the Company's fiscal year is incorporated herein by reference. Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT. The Company's definitive proxy statement which will be filed with the Commission pursuant to Regulation 14A within 120 days after the end of the Company's fiscal year is incorporated herein by reference. Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. The Company's definitive proxy statement which will be filed with the Commission pursuant to Regulation 14A within 120 days of the end of the Company's fiscal year is incorporated herein by reference. 39 40 PART IV Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K. (a) (1) The following financial statements of Merchants Group, Inc. are included on pages F-1 to F-24: Report of Independent Accountants Consolidated Balance Sheet - December 31, 1994 and 1995. Consolidated Statement of Income - Years ended December 31, 1993, 1994 and 1995. Consolidated Statement of Changes in Stockholders' Equity - Years ended December 31, 1993, 1994 and 1995 . Consolidated Statement of Cash Flows - Years ended December 31, 1993, 1994 and 1995. Notes to Consolidated Financial Statements. (2) The following financial statement schedules of Merchants Group, Inc. are filed herewith pursuant to Item 8: Schedule I - Summary of Investments - Other Than Investments in Related Parties. Schedule II - Amounts Receivable From Related Parties, and Underwriters, Promoters and Employees Other Than Related Parties. Schedule III - Condensed Financial Information of Registrant. Schedule V - Supplemental Insurance Information (see Schedule X). Schedule VI - Reinsurance Schedule X - Supplemental Insurance Information Concerning Property - Casualty Subsidiaries (b) Reports on Form 8-K. There were no reports on Form 8-K filed for the quarter ended December 31, 1995. (c) Exhibits required by Item 601 of Regulation S-K: (3) (a) Restated Certificate of Incorporation (incorporated by reference to Exhibit No. 3C to Amendment No. 1 to the Company's Registration Statement (No. 33-9188) on Form S-1 filed on November 7, 1986). 40 41 (b) Restated By-laws (incorporated by reference to Exhibit No. 3D to Amendment No. 1 to the Company's Registration Statement (No. 33-9188) on Form S-1 filed on November 7, 1986). (10) (a) Management Agreement dated as of September 29, 1986 by and among Merchants Mutual Insurance Company, Registrant and Merchants Insurance Company of New Hampshire, Inc. (incorporated by reference to Exhibit No. 10A to the Company's Registration Statement (No. 33-9188) on Form S-1 filed on September 30, 1986). (b) Agreement of Reinsurance No. 6922 between Merchants Mutual Insurance Company, Merchants Insurance Company of New Hampshire, Inc. and General Reinsurance Corporation (incorporated by reference to Exhibit No. 10E to the Company's Registration Statement (No. 33-9188) on Form S-1 filed on September 30, 1986). (c) Agreement of Reinsurance No. 7299 between Merchants Mutual Insurance Company, Merchants Insurance Company of New Hampshire, Inc. and General Reinsurance Corporation, (incorporated by reference to Exhibit No. 10o to the Company's 1987 Annual Report on Form 10-K (File No. 1-9640) filed on March 19, 1988). (d) Agreement of Reinsurance dated January 27, 1993, between Merchants Mutual Insurance Company and Merchants Insurance Company of New Hampshire, Inc. (incorporated by reference to Exhibit (3) in the Company's Current Report on Form 8-K (File No. 1-9640) filed on January 29, 1993). (e) Agreement of Reinsurance No. 8009 between Merchants Mutual Insurance Company, Merchants Insurance Company of New Hampshire, Inc. and General Reinsurance Corporation, (filed herewith). (f) Property Catastrophe Reinsurance Agreement (HCI Agreement No. 345) between Merchants Mutual Insurance Company, Merchants Insurance Company of New Hampshire, Inc. and General Reinsurance Corporation, et. al., dated January 1, 1995, (incorporated by reference to Exhibit No. 10e to the Company's 1994 Annual 41 42 Report on Form 10-K (File No. 1-9640) filed on March 31, 1995). * (g) Merchants Mutual Capital Accumulation Plan (incorporated by reference to Exhibit No. 10G to the Company's Registration Statement (No. 33-9188) on Form S-1 filed on September 30, 1986). * (h) Merchants Mutual Capital Accumulation Plan, second amendment, effective January 1, 1994 (incorporated by reference to Exhibit No. 10G to the Company's 1994 Annual Report on Form 10-K (File No. 1-9640) filed on March 31, 1995). * (i) Merchants Mutual Capital Accumulation Plan Trust Agreement dated September 30, 1992 (incorporated by reference to Exhibit No. 10Q to the Company's 1992 Annual Report on Form 10-K (File No. 1-9640) filed on March 31, 1993). * (j) Merchants Mutual Supplemental Executive Retirement Plan dated as of December 29, 1989 and Agreement of Trust dated as of December 29, 1989 (incorporated by reference to Exhibit No. 10K to the Company's 1989 Annual Report on Form 10-K (File No. 1-9640) filed on March 21, 1990). * (k) Amendment dated June 10, 1992 to Agreement of Trust under Merchants Mutual Supplemental Executive Retirement Plan dated as of December 29, 1989 (incorporated by reference to Exhibit No. 10R to the Company's 1992 Annual Report on Form 10-K (File No. 1-9640) filed on March 31, 1993). * (l) Merchants Group, Inc. 1986 Stock Option Plan As Amended Through February 16, 1993 (incorporated by reference to Exhibit No. 10E to the Company's 1992 Annual Report on Form 10-K (File No. 1-9640) filed on March 31, 1993). (m) Form of Amended Indemnification Agreement entered into by Registrant with each director and executive officer of Registrant (incorporated by reference to Exhibit No. 10N to Amendment No. 1 to the Company's Registration Statement on (No. 33-9188) Form S-1 filed on November 7, 1986). 42 43 * (n) Merchants Mutual Insurance Company Incentive Compensation Plan, as amended January 24, 1996 (filed herewith). * (o) Employment Agreement between Robert M. Zak and Merchants Mutual Insurance Company dated as of June 1, 1994 (incorporated by reference to Exhibit No. 10O to the Company's 1994 Annual Report on Form 10-K (File No. 1-9640) filed on March 31, 1995). (11) (a) Statement re computation of per share earnings (incorporated herein by reference to Note 1 to the Consolidated Financial Statements included in Item 8). (21) List of Subsidiaries of Registrant (incorporated by reference to Exhibit No. 22 to the Company's Registration Statement (No. 33-9188) on Form S-1 filed on September 30, 1986). (23) Consent of Independent Accountants. (27) Financial Data Schedule (filed herewith). (28) (a) Schedule P furnished to state insurance regulatory authorities by Merchants Insurance Company of New Hampshire, Inc. for the year ended December 31, 1995 (filed herewith). * Indicates a management contract or compensation plan or arrangement. 43 44 MERCHANTS GROUP, INC. SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES December 31, 1995 (in thousands)
Amount at which shown Amortized Market in the Type of Investment cost value balance sheet ------------------ ---- ----- ------------- Fixed maturities: United States Government and government agencies and authorities $ 29,100 $ 28,832 $ 28,853 Corporate bonds 12,037 11,968 11,968 Mortgage and asset backed securities 81,166 82,489 81,597 Tax exempt bonds 60,423 60,837 60,837 -------- -------- -------- Total fixed maturities 182,726 $184,126 183,255 -------- ======== -------- Short-term investments 4,470 4,470 Other 6,053 4,493 -------- -------- $193,249 $192,218 ======== ========
44 45 MERCHANTS GROUP, INC. SCHEDULE II - AMOUNTS RECEIVABLE FROM RELATED PARTIES, AND UNDERWRITERS, PROMOTERS AND EMPLOYEES OTHER THAN RELATED PARTIES Years ended December 31, 1993, 1994 and 1995 (in thousands)
1993 1994 1995 ---- ---- ---- Receivable from (payable to) Merchants Mutual Insurance Company(1): Balance at beginning of period $(2,827) $(760) $ (397) Increase (decrease) 2,067 363 1,488 ------- ----- ------- Balance at end of period $ (760) $(397) $ 1,091 ======= ===== =======
(1) Under a Management Agreement, Merchants Mutual Insurance Company ("Mutual") provides employees, services and facilities for Merchants Insurance Company of New Hampshire, Inc. ("MNH") to carry on its insurance business on a cost reimbursed basis. The balance in the intercompany receivable (payable) account indicates the amount due from (to) Mutual for the excess (deficiency) of premiums collected over (from) payments for losses, employees, services and facilities provided to MNH. 45 46 MERCHANTS GROUP, INC. SCHEDULE III - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in thousands except per share and share amounts) BALANCE SHEET - -------------
December 31, -------------------- 1994 1995 ---- ---- Assets ------ Investment in subsidiary $ 64,230 $ 66,362 Other assets 3,251 3,908 -------- -------- Total Assets $ 67,481 $ 70,270 ======== ======== Liabilities and Stockholders' Equity ------------------------------------ Other liabilities $ 202 $ 300 -------- -------- Total liabilities 202 300 -------- -------- Stockholders' equity: Preferred stock, $.01 par value, authorized and unissued 3,000,000 shares -- -- Preferred stock, no par value, $424.30 stated value, no shares issued or outstanding at December 31, 1994 or 1995 -- -- Common stock, $.01 par value, authorized 10,000,000 shares; issued and outstanding of 3,158,188 shares at December 31, 1994 and 3,213,894 shares at December 31, 1995 32 32 Additional paid in capital 34,678 35,302 Unrealized investment gains (losses), net of tax (6,878) (357) Accumulated earnings 39,447 34,993 -------- -------- Total stockholders' equity 67,279 69,970 -------- -------- Total liabilities and stockholders' equity $ 67,481 $ 70,270 ======== ========
46 47 MERCHANTS GROUP, INC. SCHEDULE III - CONDENSED FINANCIAL INFORMATION OF REGISTRANT Continued (in thousands except per share and share amounts) INCOME STATEMENT - ----------------
Year ended December 31, ------------------------------ 1993 1994 1995 ---- ---- ---- Revenues: Equity in net income (loss) of subsidiary $ 6,030 $ 1,307 $(2,856) Investment income 123 69 73 Net realized investment losses -- -- (840) ------- ------- ------- Total revenues 6,153 1,376 (3,623) Expenses: General and administrative expenses 295 336 246 ------- ------- ------- Operating income before income taxes 5,858 1,040 (3,869) Income tax benefit (51) (91) (50) ------- ------- ------- Net income $ 5,909 $ 1,131 $(3,819) ======= ======= =======
47 48 MERCHANTS GROUP, INC. SCHEDULE III - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in thousands) STATEMENT OF CASH FLOWS - ----------------------- Increase (Decrease) in Cash and Cash Equivalents:
Year ended December 31, -------------------------- 1993 1994 1995 ---- ---- ---- (in thousands) Cash flows from operating activities: $ (250) $(129) $(311) -------- ----- ----- Cash flows from investing activities: Receipt of subsidiary common stock dividend 2,162 600 800 Additional investment in subsidiary (10,567) -- -- Sale (purchase) of other investments, net (3,763) 143 (480) -------- ----- ----- Cash flows from investing activities (12,168) 743 320 Cash flows from financing activities: Cash dividend on common stock (316) (631) (635) Repayment of funds borrowed to repurchase preferred stock (1,925) -- -- Repurchase of preferred stock -- -- -- Proceeds from sale of common stock 15,921 -- -- Expenses related to sale of common stock (1,271) -- -- Exercise of common stock options 11 19 624 -------- ----- ----- Cash flows from financing activities 12,420 (612) (11) Net increase (decrease) in cash and cash equivalents 2 2 (2) Cash and cash equivalents, beginning of year 1 3 5 -------- ----- ----- Cash and cash equivalents, end of year $ 3 $ 5 $ 3 ======== ===== =====
48 49 MERCHANTS GROUP, INC. SCHEDULE III - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in thousands) STATEMENT OF CASH FLOWS - continued - -----------------------
Year ended December 31, ------------------------------ 1993 1994 1995 ---- ---- ---- (in thousands) Reconciliation of Net Income to Net Cash Provided By Operations: Net income (loss) $ 5,909 $ 1,131 $(3,819) Adjustments to reconcile net income to net cash provided by operations: Equity in (income) loss of subsidiary (6,030) (1,307) 2,856 Net realized investment losses -- -- 840 Increase (decrease) in liabilities (300) 136 98 Increase (decrease) in other (non-investment) assets -- (292) 94 Other, net 171 203 (380) ------- ------- ------- Net cash provided by (used in) operating activities $ (250) $ (129) $ (311) ======= ======= =======
NOTES TO CONDENSED FINANCIAL STATEMENTS - --------------------------------------- Cash dividends of $2,162,000, $600,000 and $800,000 were paid to the Registrant by its consolidated subsidiary in the years ended December 31, 1993, 1994 and 1995, respectively. 49 50 MERCHANTS GROUP, INC. SCHEDULE VI - REINSURANCE Years ended December 31, 1993, 1994 and 1995 (in thousands)
Percentage Ceded Assumed of amount Gross to other from other Net assumed amount companies companies amount to net ------ --------- --------- ------ ---------- Year ended December 31, 1993 Property and Casualty Premiums $88,198 $ 6,094 $ 9,088 $91,192 10.0% Year ended December 31, 1994 Property and Casualty Premiums $89,808 $ 6,876 $ 7,255 $90,187 8.0% Year ended December 31, 1995 Property and Casualty Premiums $98,553 $ 7,548 $ 6,572 $97,577 6.7%
50 51 MERCHANTS GROUP, INC. SCHEDULE X - SUPPLEMENTAL INSURANCE INFORMATION CONCERNING PROPERTY - CASUALTY SUBSIDIARIES Years ended December 31, 1993, 1994 and 1995 (in thousands)
Reserves Losses & loss Amoritiza- Paid for adjustment tion of losses Deferred losses Discount expenses incurred deferred and policy & loss if any, Net related to policy loss acquis- adjust- deducted Net invest- (1) (2) acquisi- adjust- Direct ition ment from Unearned earned ment Current Prior tion ment premiums costs expenses reserves premiums premiums income years years costs expenses written Year ended: December 31, 1993 $11,763 $ 93,896 $ 21 $46,006 $88,181 $ 9,155 $60,282 $ 2,125 $23,739 $58,627 $88,198 December 31, 1994 $11,587 $104,015 $242 $45,449 $90,845 $ 9,849 $65,818 $ 4,982 $24,424 $63,125 $89,808 December 31, 1995 $12,165 $119,722 $460 $48,773 $94,749 $10,368 $67,150 $11,045 $25,458 $62,091 $98,553
51 52 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Merchants Group, Inc. Date: March 26, 1996 BY: /s/ Robert M. Zak, Senior Vice President --------------------------------------- Robert M. Zak, Senior Vice President and Chief Operating Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. SIGNATURE TITLE DATE --------- ----- ---- /s/ Richard E. Garman Director, Chairman March 26, 1996 - -------------------------- of the Board Richard E. Garman /s/ Brent D. Baird Director, President March 26, 1996 - -------------------------- Brent D. Baird /s/ Robert M. Zak Director, Sr. VP & March 26, 1996 - -------------------------- COO (principal Robert M. Zak financial and accounting officer) /s/ Lawrence P. Castellani Director March 26, 1996 - -------------------------- Lawrence P. Castellani /s/ Frank J. Colantuono Director March 26, 1996 - -------------------------- Frank J. Colantuono /s/ Henry P. Semmelhack Director March 26, 1996 - -------------------------- Henry P. Semmelhack 52 53 Report of Independent Accountants --------------------------------- To the Board of Directors and Stockholders of Merchants Group, Inc. In our opinion, the consolidated financial statements listed in the index appearing under Item 14(a)(1) and (2) on page 40 present fairly, in all material respects, the financial position of Merchants Group, Inc. and its subsidiary at December 31, 1995 and 1994, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 1995, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. As discussed in Note 8 to the financial statements, the Company changed its method of accounting for income taxes in 1993. Buffalo, New York February 20, 1996 F-1 54 MERCHANTS GROUP, INC. --------------------- CONSOLIDATED BALANCE SHEET -------------------------- (in thousands)
December 31, ------------------- 1994 1995 ---- ---- Assets ------ Investments: Fixed maturities: Held to maturity at amortized cost (fair value $31,863 in 1994 and $20,348 in 1995) $ 33,933 $ 19,477 Available for sale at fair value (amortized cost $135,034 in 1994 and $163,249 in 1995) 127,972 163,778 Other long-term investments at fair value (amortized cost $5,557 in 1994 and $6,053 in 1995) 4,387 4,493 Short-term investments 4,455 4,470 -------- -------- Total investments 170,747 192,218 Cash 18 39 Interest due and accrued 1,965 1,886 Premiums receivable, net of allow- ance for doubtful accounts of $368 in 1994 and $416 in 1995 18,051 20,360 Deferred policy acquisition costs 11,587 12,165 Ceded reinsurance balances receivable 7,632 7,014 Prepaid reinsurance premiums 2,370 2,866 Receivable from affiliate -- 1,091 Federal income taxes receivable 1,197 3,143 Deferred federal income tax benefit 7,738 5,491 Other assets 6,445 6,535 -------- -------- Total assets $227,750 $252,808 ======== ========
The accompanying notes are an integral part of these consolidated financial statements. F-2 55 MERCHANTS GROUP, INC. --------------------- CONSOLIDATED BALANCE SHEET -------------------------- (in thousands except share amounts)
December 31, ---------------------- 1994 1995 ---- ---- Liabilities and Stockholders' Equity ------------------------------------ Liabilities: Reserve for losses and loss adjustment expenses $ 104,015 $ 119,722 Unearned premiums 45,449 48,773 Other liabilities 10,610 14,343 Payable to affiliate 397 -- --------- --------- Total liabilities 160,471 182,838 --------- --------- Stockholders' equity: Preferred stock -- -- Common stock, issued and outstanding 3,158,188 shares at December 31, 1994 and 3,213,894 shares at December 31, 1995 32 32 Additional paid in capital 34,678 35,302 Unrealized investment losses, net of tax (6,878) (357) Accumulated earnings 39,447 34,993 --------- --------- Total stockholders' equity 67,279 69,970 --------- --------- Commitments and contingent liabilities -- -- Total liabilities and stockholders' equity $ 227,750 $ 252,808 ========= =========
The accompanying notes are an integral part of these consolidated financial statements. F-3 56 MERCHANTS GROUP, INC. --------------------- CONSOLIDATED STATEMENT OF INCOME -------------------------------- (in thousands except per share and share amounts)
Year ended December 31, --------------------------------------- 1993 1994 1995 ---- ---- ---- Revenues: Net premiums earned $ 88,181 $ 90,845 $ 94,749 Net investment income 9,155 9,849 10,368 Net realized investment gains (losses) 1,467 20 (832) Other revenues 693 638 259 ---------- ----------- ----------- Total revenues 99,496 101,352 104,544 ---------- ----------- ----------- Expenses: Net losses and loss adjustment expenses 62,407 70,800 78,195 Amortization of deferred policy acquisition costs 23,739 24,424 25,458 Other underwriting expenses 6,020 5,892 7,709 ---------- ----------- ----------- Total expenses 92,166 101,116 111,362 ---------- ----------- ----------- Income (loss) before income taxes and cumulative effect of change in accounting principle 7,330 236 (6,818) Provision (benefit) for income taxes 1,727 (895) (2,999) ---------- ----------- ----------- Income (loss) before cumulative effect of change in accounting for income taxes 5,603 1,131 (3,819) Cumulative effect of change in accounting for income taxes 306 -- -- ---------- ----------- ----------- Net income (loss) $ 5,909 $ 1,131 $ (3,819) ========== =========== =========== Primary and fully diluted earnings (loss) per share: Income (loss) before cumulative effect of change in accounting principle $ 2.12 $ .36 $ (1.19) Cumulative effect of change in accounting for income taxes .12 -- -- ---------- ----------- ----------- Net income (loss) $ 2.24 $ .36 $ (1.19) ========== =========== =========== Weighted average number of shares outstanding: Primary 2,641,493 3,176,624 3,219,463 Fully diluted 2,641,493 3,176,624 3,220,292
The accompanying notes are an integral part of these consolidated financial statements. F-4 57 MERCHANTS GROUP, INC. --------------------- CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY --------------------------------------------------------- (in thousands except per share and share amounts)
Year ended December 31, -------------------------------- 1993 1994 1995 ---- ---- ---- Common stock: Beginning of year $ 21 $ 32 $ 32 Issuance of additional shares 11 -- -- -------- -------- -------- End of year 32 32 32 -------- -------- -------- Additional paid in capital: Beginning of year 20,009 34,659 34,678 Exercise of common stock options 11 19 624 Issuance of additional shares 14,639 -- -- -------- -------- -------- End of year 34,659 34,678 35,302 -------- -------- -------- Unrealized investment gains (losses), net of tax: Beginning of year (119) 1,445 (6,878) Appreciation (depreciation) 2,370 (12,611) 9,880 Benefit (provision) for income taxes (806) 4,288 (3,359) -------- -------- -------- End of year 1,445 (6,878) (357) -------- -------- -------- Accumulated earnings: Beginning of year 33,354 38,947 39,447 Net income (loss) 5,909 1,131 (3,819) Cash dividends (316) (631) (635) -------- -------- -------- End of year 38,947 39,447 34,993 -------- -------- -------- Total stockholders' equity $ 75,083 $ 67,279 $ 69,970 ======== ======== ========
The accompanying notes are an integral part of these consolidated financial statements. F-5 58 MERCHANTS GROUP, INC. --------------------- CONSOLIDATED STATEMENT OF CASH FLOWS ------------------------------------ INCREASE (DECREASE) IN CASH --------------------------- (in thousands)
Year ended December 31, --------------------------------- 1993 1994 1995 ---- ---- ---- Cash flows from operations: Collection of premiums $ 86,145 $ 92,397 $ 93,944 Payment of losses and loss adjustment expenses (58,627) (63,125) (62,091) Payment of other underwriting expenses (29,895) (30,444) (29,903) Investment income received 9,320 9,775 10,479 Investment expenses paid (179) (166) (125) Income taxes paid (1,932) (760) (58) Other cash receipts 693 638 259 --------- -------- -------- Net cash provided by operations 5,525 8,315 12,505 --------- -------- -------- Cash flows from investing activities: Proceeds from fixed maturities sold or matured 127,591 21,696 15,321 Purchase of fixed maturities (145,380) (25,851) (27,800) Net (increase) decrease in other long-term investments (977) (922) 164 Net (increase) decrease in short-term investments 3,902 (2,342) (15) Purchase of equipment, net (83) (269) (143) --------- -------- -------- Net cash used in investing activities (14,947) (7,688) (12,473) --------- -------- -------- Cash flows from financing activities: Funds repaid to repurchase preferred stock (1,925) -- -- Repayment of funds borrowed to acquire short-term investments (2,995) -- -- Proceeds from sale of common stock 15,921 -- -- Proceeds from exercise of common stock options -- -- 624 Expenses related to sale of common stock (1,271) -- -- Cash dividends and other (net) (305) (613) (635) --------- -------- -------- Net cash provided by (used in) financing activities 9,425 (613) (11) --------- -------- -------- Increase in cash 3 14 21 Cash beginning of year 1 4 18 --------- -------- -------- Cash end of year $ 4 $ 18 $ 39 ========= ======== ========
The accompanying notes are an integral part of these consolidated financial statements. F-6 59 MERCHANTS GROUP, INC. --------------------- CONSOLIDATED STATEMENT OF CASH FLOWS ------------------------------------ RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATIONS --------------------------------------------------------------- (in thousands)
Year ended December 31, -------------------------------- 1993 1994 1995 ---- ---- ---- Net income (loss) $ 5,909 $ 1,131 $ (3,819) Adjustments: Depreciation and amortization 530 22 100 Net realized investment (gains) losses (1,467) (20) 832 (Increase) decrease in assets: Interest due and accrued (369) (88) 79 Premiums receivable (92) (820) (2,309) Deferred policy acquisition costs (970) 176 (578) Ceded reinsurance balances receivable (6,878) 984 618 Prepaid reinsurance premiums (2,270) (100) (496) Receivable from affiliate -- -- (1,091) Federal income taxes receivable -- (1,197) (1,946) Deferred federal income tax benefit (323) (396) (1,111) Other assets (1) (5,375) (141) Increase (decrease) in liabilities: Reserve for losses and loss adjustment expenses 7,737 10,119 15,707 Unearned premiums 5,281 (557) 3,324 Other liabilities 693 4,862 3,733 Payable to affiliate (2,067) (363) (397) Federal income taxes payable (188) (63) -- ------- -------- -------- Net cash provided by operations $ 5,525 $ 8,315 $ 12,505 ======= ======== ========
The accompanying notes are an integral part of these consolidated financial statements. F-7 60 MERCHANTS GROUP, INC. --------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------ 1. Significant Accounting Policies ------------------------------- Principles of consolidation and basis of presentation ----------------------------------------------------- The consolidated financial statements of Merchants Group, Inc. (the Company) include the accounts of the Company, its wholly owned subsidiary, Merchants Insurance Company of New Hampshire, Inc. (MNH), and M.F.C. of New York, Inc., an inactive premium finance company which is a wholly owned subsidiary of MNH. MNH is a stock property and casualty insurance company domiciled in the state of New Hampshire. MNH offers property and casualty insurance to preferred risk individuals and small to medium sized businesses in the Northeast United States, primarily in the states of New York, New Hampshire and New Jersey where a majority of its policies are written. As a holding company, the Company has had no operations. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) which differ in some respects from those followed in reports to insurance regulatory authorities. In the 1995 Annual Statement filed with regulatory authorities, MNH reported statutory capital of $31,458,000 and total surplus of $46,609,000. MNH's net income (loss) as reported in its Annual Statement was ($4,490,000) in 1995, $900,000 in 1994 and $4,642,000 in 1993. All significant intercompany balances and transactions have been eliminated. Certain 1994 amounts have been reclassified to conform with the 1995 presentation. The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Investments ----------- Fixed maturities consist primarily of debt securities. The Company has classified its investments in fixed maturities as either available for sale or held to maturity. Fixed maturities classified as held to maturity are presented at amortized cost and consist of debt securities that management intends and has the ability to hold until maturity. F-8 61 Fixed maturities classified as available for sale are presented at fair value and consist of debt securities that management may not hold until maturity. The net aggregate unrealized gain or loss, net of applicable income taxes, related to fixed maturities available for sale is included as a component of stockholders' equity. In December 1995, the Company re-assessed the appropriateness of the accounting classification of its fixed maturity investments as permitted by the FASB. As a result of this re-assessment the Company reclassified certain fixed maturity securities with an amortized cost and fair value of $15,674,000 and $15,639,000 respectively, from held to maturity to available for sale which resulted in a $1,044,000 increase in stockholders' equity at December 31, 1995. Other long-term investments include collateralized mortgage obligation residuals, carried at unpaid principal balances which do not vary significantly from fair value, a $1,350,000 capital advance carried at cost, which approximates fair value (see Note 3) and auction rate preference shares carried at fair value (see Note 5). Short-term investments, consisting primarily of money market mutual funds, have original maturities of three months or less, and are carried at cost, which approximates fair value. Realized gains and losses on the sale of investments are based on the cost of the specific investment sold. Other financial instruments --------------------------- The fair values of the Company's other financial instruments, principally premiums receivable and certain non-insurance related liabilities, do not vary significantly from the amounts assigned in these financial statements. Premium revenue --------------- Premiums are recorded as revenue ratably over the terms of the policies written (principally one year). Unearned premiums are calculated using a monthly pro rata method. Deferred policy acquisition costs --------------------------------- Policy acquisition costs, such as commissions (net of reinsurance commissions), premium taxes and certain other underwriting expenses, are deferred and amortized over the terms of the related insurance policies. Deferred policy acquisition costs do not exceed estimated recoverable amounts after allowing for anticipated investment income. F-9 62 Reserve for losses and loss adjustment expenses ----------------------------------------------- Liabilities for unpaid losses and loss adjustment expenses are estimates of future payments to be made to settle all insurance claims for reported losses and estimates of incurred but not reported losses based upon past experience modified for current trends. With the exception of an immaterial amount for workers' compensation losses, loss reserves are not discounted. Estimated amounts of salvage and subrogation on unpaid losses are deducted from the liability for unpaid claims. The estimated liabilities may be more or less than the amount ultimately paid when the claims are settled. Management and its independent consulting actuaries regularly review the estimates of reserves needed and any changes are reflected in current operating results. Structured settlements have been negotiated for claims on certain insurance policies. Structured settlements are agreements to provide periodic payments to claimants, and are funded by annuities purchased from various life insurance companies. Because the Company remains primarily liable for payment of these claims, a reserve for loss and loss adjustment expense and the corresponding deposit which is included in other assets are recorded in the Company's consolidated balance sheet at December 31, 1994 and 1995. Reinsurance ----------- Reinsurance assumed from business written through state reinsurance facilities has been reflected in unearned premiums, loss reserves, premiums earned and losses incurred based on reports received from such pools. Ceded reinsurance premiums, losses and ceding commissions are netted against earned premiums, losses and commission expense, respectively. Income taxes ------------ The Company and its wholly owned subsidiary file a consolidated federal income tax return. The Company adopted Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes", effective January 1, 1993. SFAS No. 109 requires the use of the liability method when accounting for income taxes. This approach requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Adoption of SFAS 109 resulted in the recognition of an additional deferred tax benefit as of January 1, 1993 of $306,000, which was recorded as a cumulative effect of a change in accounting principle in the 1993 Consolidated Statement of Income. F-10 63 Earnings per share ------------------ Primary and fully diluted earnings per share were computed by dividing net income by the weighted average number of shares of common stock outstanding during each year. Primary and fully diluted earnings per share for 1993, 1994 and 1995, assume the exercise of 59,741, 65,166 and 22,083 shares of common stock options, respectively. 2. Stockholders' Equity -------------------- Preferred and common stock -------------------------- Stockholders' equity is comprised of the following: Preferred stock, no par value, $424.30 stated value, 10,000 shares authorized; no shares issued or outstanding at December 31, 1994 or December 31, 1995. The Company also has 3,000,000 shares of $.01 par value preferred stock which is authorized and unissued. Common stock, $.01 par value, authorized 10,000,000 shares; issued and outstanding 3,158,188 shares at December 31, 1994 and 3,213,894 shares at December 31, 1995. Sale of common stock -------------------- In July 1993, the Company sold 1,061,425 shares of its common stock in a secondary public offering at $15.00 per share. Net proceeds to the Company from the sale of its stock after underwriters' discount of $997,000 and offering expenses of $274,000 were $14,650,000. As part of the offering, Merchants Mutual Insurance Company (Mutual) sold 900,000 of its 1,155,000 shares of the Company's common stock. Mutual owned 7.9% of the Company's common stock at December 31, 1995 (see Note 3). Dividends --------- The Company depends on dividends from its subsidiary, MNH, to pay cash dividends to its stockholders and to meet its expenses. MNH is subject to New Hampshire state insurance laws which restrict its ability to pay dividends without the prior approval of state regulatory authorities. These restrictions limit dividends to those that, when added to all other dividends paid within the preceding twelve months, would not exceed 10% of the insurer's policyholders' surplus as of the preceding December 31. The maximum amount of dividends that MNH could pay during any twelve month period ending in 1996, without the prior approval of the New Hampshire Insurance Commissioner is $4,661,000. The Company has paid a quarterly cash dividend to its common stockholders since the third quarter of 1993. Dividends paid during 1995 totalled to $635,000. F-11 64 Stock option plan ----------------- The Board of Directors has reserved 200,000 shares of common stock for issuance to officers and key employees of the Company and its affiliates, including Mutual, under a qualified and non-qualified stock option plan. Options may be granted at the fair market value of the Company's stock on the date of grant with durations of up to 10 years. In March 1994, the Company's Board of Directors approved a stock option program providing for the issuance to certain of MNH's independent insurance agents, options to purchase a total of 25,000 shares of the Company's common stock. In connection with this program, the Board of Directors approved a plan to repurchase up to 25,000 shares of the Company's common stock in the open market. In June 1994, the Company issued options to purchase 22,500 shares of common stock to certain of MNH's agents under the option program. These options are exercisable after May 31, 1996 at $16.38 per share. No options were granted in 1995. During 1995 options for 55,706 shares were exercised. At December 31, 1995, options to purchase 49,333 shares were outstanding, of which 27,771 were exercisable. These options carry exercise prices ranging from $9.38 to $16.38 per share. In October 1995, the Financial Accounting Standards Board (FASB) issued SFAS No. 123 "Accounting for Stock Based Compensation". This statement requires the Company to either apply a fair value measurement to any stock options granted by the Company or to continue to apply the valuation provisions of existing accounting standards, but with pro forma net income and earnings per share disclosures using a fair value methodology to value the stock options. The Company is required to adopt the disclosure requirements of SFAS No. 123 by the end of 1996. Measurement of compensation cost under SFAS No. 123, if adopted is effective for all awards granted after the beginning of the fiscal year in which that method is first applied. Management is currently reviewing the provisions of SFAS No. 123. If the fair value based measurement provisions are adopted they are not expected to have a material impact on the results of operations or financial condition of the Company. F-12 65 3. Related Party Transactions -------------------------- The Company and MNH do not have any paid employees. Under a management agreement, Mutual provides the Company and MNH with the facilities, management and personnel required to manage their day-to-day business. All underwriting, administrative, claims and investment expenses incurred on behalf of Mutual and MNH are shared on an allocated cost basis, determined as follows: for underwriting and administrative expenses, the respective share of total direct premiums written for Mutual and MNH serves as the basis of allocation; for claims expenses, the average number of outstanding claims is used; investment expenses are shared based on each company's share of total invested assets. Mutual also receives an annual management fee of $50,000 from MNH. Management believes that the methods used to allocate expenses to MNH and Mutual are reasonable and fair to both companies. The management agreement may be terminated by either Mutual or the Company upon five years written notice. MNH's agents are also licensed to sell Mutual's products. The agents are informed of the underwriting criteria of each company as well as the classes of business that are acceptable to each company. Underwriters review each application submitted by an agent to determine which company's underwriting criteria the risk meets and then issue a policy in the appropriate company. Involuntary automobile policies are shared in accordance with the plan assignment ratios of the applicable governing jurisdictions. The payable to or receivable from Mutual is non-interest bearing and represents the net of premiums collected and loss and operating expense payments made by Mutual on behalf of MNH. This balance is settled in cash on a monthly basis. In January 1993, MNH purchased from the Federal Deposit Insurance Corporation (FDIC) for $1,350,000 a capital advance which had been made to Mutual by a savings institution which was seized by the FDIC in 1991. That savings institution had provided the advance to Mutual in 1982 and 1985 in accordance with the provisions of Section 1307 of the New York Insurance Law. In connection with MNH's purchase of the capital advance from the FDIC, the capital advance was rewritten in order to obtain the required consents of Mutual and the New York Insurance Department. The new capital advance is for $1,350,000 and carries a dividend of 4% per annum. Mutual cannot repay the capital advance or pay dividends without the prior approval of the Superintendent of the New York Insurance Department. The capital advance is included in other long-term investments. F-13 66 On November 1, 1994, Mutual filed an application with the New York Insurance Department to convert from a mutual company to a stock corporation. The Company has indicated to Mutual its willingness to consider sponsoring this conversion. The Company is subject to statutes governing insurance holding company systems. Under the terms of the applicable New Hampshire statute, any person or entity desiring to effect a purchase or other acquisition of the Company's securities that would result in such person or entity owning 10% or more of the Company's outstanding voting securities would be required to obtain the approval of the New Hampshire Insurance Department prior to the purchase or other acquisition. Effective January 1, 1993, Mutual and MNH entered into a quota share reinsurance agreement under which MNH assumes 10% of Mutual's direct voluntary written premium and related losses in exchange for a reinsurance commission of 35%. The agreement also provides for MNH to pay a contingent commission to Mutual equal to any underwriting profit on the premiums assumed. The agreement allows Mutual the option to reduce its cessions to MNH to 0% for any calendar year. Mutual informed MNH that it will reduce its cessions under the agreement to 0% of its direct voluntary written premiums for calendar year 1996. In accordance with various states' automobile insurance plan (AIP) rules, Mutual historically has received the assignment of AIP polices based upon its and MNH's combined voluntary automobile market share, issued the policies and settled the claims associated with those policies. Mutual then allocated the results of the involuntary AIP business to MNH through a series of accounting entries based on MNH's share of the combined voluntary business of Mutual and MNH. During 1994, Mutual informed the Company that it had failed to identify and bill to MNH during the period January 1, 1985 through June 30, 1994 a portion of MNH's share of AIP losses paid by Mutual in that period. The amount of unbilled AIP losses was approximately $7,500,000. After extensive negotiations, between the Company's and Mutual's independent Directors, MNH agreed to pay Mutual $3,135,000 in full and complete settlement of the unbilled AIP paid losses for the period noted above. This amount is included in loss and loss adjustment expenses for the year ended December 31, 1994. F-14 67 4. Reserve for Losses and Loss Adjustment Expenses ----------------------------------------------- Activity in the reserve for losses and loss adjustment expenses (LAE) is summarized as follows:
1994 1995 ---- ---- (in thousands) Reserve for losses and LAE at beginning of year $ 93,896 $104,015 Less reinsurance recoverables 3,957 6,401 -------- -------- Net balance at beginning of year 89,939 97,614 -------- -------- Provision for losses and LAE for claims occurring in: Current year 65,818 67,150 Prior years 4,982 11,045 -------- -------- 70,800 78,195 -------- -------- Losses and LAE payments for claims occurring in: Current year 28,574 25,175 Prior years 34,551 36,916 -------- -------- 63,125 62,091 -------- -------- Reserve for losses and LAE at end of year, net 97,614 113,718 Plus reinsurance recoverables 6,401 6,004 -------- -------- Balance at end of year $104,015 $119,722 ======== ========
In recent years, the escalation of repair costs, medical expenses and jury awards have necessitated significant periodic upward adjustments in reserves by many property and casualty insurers, including the Company. In 1994 and 1995, the Company increased its reserves for prior years by $4,982,000, and $11,045,000, respectively. The increase in reserves for prior years made in 1994 was primarily attributable to the $3,135,000 settlement of the AIP matter discussed in Note 3, as well as higher than anticipated severity of liability claims on auto, commercial multi-peril and workers' compensation policies. The increase in reserves for prior years made in 1995 was primarily attributable to higher than anticipated severity of liability claims on homeowners, businessowners, workers' compensation and commercial package lines of business. F-15 68 5. Investments ----------- Investments in fixed maturities ------------------------------- The amortized cost and estimated fair values of fixed maturities available for sale and held to maturity are as follows:
Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value -------- ------- ------ -------- (in thousands) December 31, 1994 ----------------- Held to maturity ---------------- U.S. Treasury securities and obligations of U.S. government corpora- tions and agencies $ 2,191 $ -- $ 63 $ 2,128 Mortgage and asset backed securities 31,742 -- 2,007 29,735 -------- ------- ------ -------- Total $ 33,933 $ -- $2,070 $ 31,863 ======== ======= ====== ======== December 31, 1994 ----------------- Available for sale ------------------ U.S. Treasury securities and obligations of U.S. government corpora- tions and agencies $ 17,999 $ -- $1,765 $ 16,234 Obligations of states and political subdivisions 62,641 2 2,673 59,970 Corporate securities 12,040 -- 65 11,975 Mortgage and asset backed securities 42,354 15 2,576 39,793 -------- ------- ------ -------- Total $135,034 $ 17 $7,079 $127,972 ======== ======= ====== ========
F-16 69
Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value ---------- ---------- ---------- --------- (in thousands) December 31, 1995 - ----------------- Held to maturity - ---------------- U.S. Treasury securities and obligations of U.S. government corpora- tions and agencies $ 2,157 $ 15 $ 37 $ 2,135 Mortgage and asset backed securities 17,320 902 9 18,213 -------- ------ ---- -------- Total $ 19,477 $ 917 $ 46 $ 20,348 ======== ====== ==== ======== December 31, 1995 - ----------------- Available for sale - ------------------ U.S. Treasury securities and obligations of U.S. government corpora- tions and agencies $ 26,943 $ 30 $277 $ 26,696 Obligations of states and political subdivisions 60,423 580 166 60,837 Corporate securities 12,037 4 73 11,968 Mortgage and asset backed securities 63,846 502 71 64,277 -------- ------ ---- -------- Total $163,249 $1,116 $587 $163,778 ======== ====== ==== ========
F-17 70 The amortized cost and fair values of fixed maturities by expected maturity at December 31, 1995 are shown below. Mortgage and asset backed securities are distributed in the table based upon management's estimate of repayment periods. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Estimated Amortized Fair Cost Value -------- -------- (in thousands) Held to maturity ---------------- Due in one year or less $ 5,376 $ 5,532 Due after one year through five years 8,805 9,247 Due after five years through ten years 4,381 4,607 Due after ten years 915 962 -------- -------- Total $ 19,477 $ 20,348 ======== ======== Available for sale ------------------ Due in one year or less $ 18,696 $ 18,799 Due after one year through five years 105,771 106,018 Due after five years through ten years 32,411 32,586 Due after ten years 6,371 6,375 -------- -------- Total $163,249 $163,778 ======== ========
Discount and premium pertaining to collateralized mortgage obligations are amortized over the securities' estimated redemption periods using the effective interest method. Yields used to calculate premium or discount are adjusted for prepayments annually. Fixed maturities with a par value of $1,800,000 were on deposit at December 31, 1995 with various state insurance departments in compliance with applicable insurance laws. Proceeds from sales of available for sale fixed maturity securities and gross realized gains and losses related to such sales are as follows:
Year ended December 31, --------------------------- 1993 1994 1995 ---- ---- ---- (in thousands) Proceeds from sales $104,284 $12,891 $1,797 Gross realized gains 1,551 29 8 Gross realized losses 84 9 --
F-18 71 Net investment income --------------------- Net investment income consists of:
Year ended December 31, -------------------------- 1993 1994 1995 ---- ---- ---- (in thousands) Short-term investments $ 169 $ 252 $ 238 Fixed maturities 8,814 9,872 10,078 Other 351 188 177 ------ ------- ------- Total investment income 9,334 10,312 10,493 Investment expenses 179 463 125 ------ ------- ------- Net investment income $9,155 $ 9,849 $10,368 ====== ======= =======
Investment in auction rate preference shares -------------------------------------------- As of December 31, 1995, the Company owns $3,000,000 par value of Signet Group PLC (Signet) cumulative auction rate preference shares. These securities were to pay a variable dividend, the amount of which was to be reset every 28 days through auction procedures. As a result of a failed auction in 1991, Signet suspended dividend payments on all its preference shares including those owned by the Company. No dividends have been received since 1991. This investment is carried at its fair value of $1,500,000 and is included in other long-term investments in the accompanying Consolidated Balance Sheet at December 31, 1995. During 1995, the Company determined that the decline in fair value of its Signet investment was other than temporary and recorded an $840,000 loss in its Consolidated Statement of Income as a component of realized investment gains and losses. Subsequent adjustments in the fair value of Signet since the recognition of this loss, net of tax, are deemed to be temporary and are recorded directly to stockholders' equity. 6. Reinsurance ----------- MNH follows the customary practice of reinsuring a portion of the exposure under its policies and as consideration pays to the reinsurer a portion of the premium received on such policies. Insurance is ceded principally to reduce net liability on individual risks and to protect against catastrophic losses. Although reinsurance does not legally discharge an insurer from its primary liability for the full amount of coverage provided by its policies, it does make the assuming reinsurer liable to the insurer to the extent of the reinsurance ceded. MNH cedes premiums and losses primarily to General Reinsurance Corporation (GenRe). F-19 72 MNH maintains a casualty excess of loss reinsurance agreement with GenRe which provides for recovery of losses over $500,000 up to $5,000,000 per occurrence. This coverage is supplemented by a contingent casualty layer of reinsurance of $5,000,000 in excess of the first $5,000,000. MNH also maintains a property excess of loss reinsurance agreement with GenRe which provides for recovery of property losses over $500,000 up to $2,000,000 per occurrence. Property catastrophe coverage provides for recovery of 95% of $37,000,000 above aggregate retained losses of $3,000,000 per each natural disaster. The limits of property catastrophe coverage are shared by MNH and Mutual on a pro rata basis based upon the gross reported losses of MNH and Mutual for a covered event. The effect of reinsurance on premiums written and earned for the years ended December 31, 1994 and 1995 is as follows:
1994 1995 ---- ---- Premiums Premiums Premiums Premiums Written Earned Written Earned -------- -------- -------- -------- (in thousands) Direct $ 89,808 $ 90,422 $ 98,553 $ 93,502 Assumed 7,255 7,198 6,572 8,299 Ceded (6,876) (6,775) (7,548) (7,052) -------- -------- -------- -------- Net premiums $ 90,187 $ 90,845 $ 97,577 $ 94,749 ======== ======== ======== ========
Reinsurance ceded transactions decreased losses and loss adjustment expenses by $2,426,000 and $1,527,000 for the years ended December 31, 1994 and 1995, respectively. As a result of the reinsurance agreements maintained by MNH, primarily with GenRe, MNH is exposed to certain credit risk if GenRe were to become financially unstable. As of December 31, 1995, MNH has recognized amounts to be recovered from GenRe related to ceded losses and ceded unearned premiums totalling $7,964,000. MNH generally does not require collateral for reinsurance recoverable. F-20 73 7. Benefit Programs ---------------- Mutual maintains a capital accumulation plan which is a profit sharing plan under Section 401(a) of the Internal Revenue Code that covers all full-time employees who have completed one year of service. Mutual matches at least 15% and up to 100% of employee contributions, based on the combined net operating profits of Mutual and MNH. Additional contributions may be made at the discretion of the Board of Directors of Mutual. Under the terms of the management agreement, the Company's portion of the total contribution was $316,000, $404,000 and $186,000 for the years ended December 31, 1993, 1994 and 1995, respectively. 8. Income Taxes ------------ The provision (benefit) for federal income taxes consists of:
Year ended December 31, ---------------------------- 1993 1994 1995 ---- ---- ---- (in thousands) Provision (benefit) for income taxes: Current $ 1,744 $(500) $(1,888) Deferred (17) (395) (1,111) ------- ----- ------- Total income tax provision (benefit) $ 1,727 $(895) $(2,999) ======= ===== =======
Deferred tax liabilities (assets) are comprised of the following:
December 31, 1994 1995 ---- ---- (in thousands) Deferred policy acquisition costs $ 3,940 $ 4,136 Other 377 462 -------- -------- Gross deferred tax liabilities 4,317 4,598 -------- -------- Discounting of reserve for losses and loss adjustment expenses (5,147) (6,004) Unearned premiums (2,929) (3,122) Unrealized investment losses (3,543) (674) Other (436) (289) -------- -------- Gross deferred tax assets (12,055) (10,089) Net deferred federal income tax benefit $ (7,738) $ (5,491) ======== ========
F-21 74 Although realization is not assured, based upon the available evidence, the Company believes that it is more likely than not that the net deferred federal income tax benefit will be realized. The amount of the deferred tax benefit considered realizable, however, could be reduced in the near term if estimates of future taxable income are not achieved. A reconciliation of the difference between the Company's total income tax provision and that calculated using the federal statutory income tax rate is as follows:
Year ended December 31, ---------------------------- 1993 1994 1995 ---- ---- ---- (in thousands) Computed provision at statutory rate $ 2,492 $ 80 $(2,318) Adjustments: Tax-exempt investment income (784) (980) (878) Other items 19 5 197 ------- ----- ------- Total income tax provision (benefit) $ 1,727 $(895) $(2,999) ======= ===== =======
9. Commitments and Contingencies ----------------------------- On January 31, 1995, a New York State trial court dismissed a purported class action lawsuit which was filed in 1993 against the Company, Mutual, MNH and certain directors of the Company and of Mutual ("the defendants") on behalf of the then minority shareholders of the Company. The Court, in granting the defendants' motion, held that plaintiff's claims, to the extent they have any merit, are derivative in nature. The complaint, which sought equitable relief and unspecified money damages, alleged that the defendants breached their fiduciary obligations to the minority shareholders of the Company, and defrauded the minority shareholders, by causing MNH to purchase from the FDIC the surplus note issued by Mutual and simultaneously reducing the principal amount plus accrued return on such surplus note to $1,350,000, which is the amount MNH paid to the FDIC for the note, and by approving the public sale of the Company's common stock sold in July 1993 at what the plaintiff alleges was an inadequate price. On March 31, 1995, the plaintiff filed a motion with the trial court for permission to reargue the defendants' motion to dismiss. On September 29, 1995, the trial court denied the plaintiff's motion to reargue. The Company and the other defendants intend to oppose any appeal or repleading by the plaintiff. F-22 75 MNH, like many other property-casualty insurance companies, is subject to environmental damage claims asserted by or against its insureds. Management is of the opinion that based on various court decisions throughout the country, such claims should not be recoverable under the terms of MNH's insurance policies because of either specific or general coverage exclusions contained in the policies. However, there is no assurance that the courts will agree with MNH's position in every case, nor can there be assurance that material claims will not be asserted under policies which a court will find do not explicitly or implicitly exclude claims for environmental damages. Management, however, is not aware of any pending claim or group of claims which would result in a liability that would have a material adverse effect on the financial condition of MNH. In addition to the foregoing matters, MNH is a defendant in a number of other legal proceedings in the ordinary course of its business. Management of the Company is of the opinion that the ultimate aggregate liability, if any, resulting from such proceedings will not materially affect the financial condition of MNH or the Company. F-23 EX-10.E 2 EXHIBIT 10(E) 1 EXHIBIT 10(e) 2 MERCHANTS MUTUAL INSURANCE COMPANY AGREEMENT NO. 8009 GENERAL REINSURANCE CORPORATION 3 AGREEMENT OF REINSURANCE NO. 8009 between GENERAL REINSURANCE CORPORATION a Delaware corporation having its principal offices at Financial Centre 695 East Main Street P.O. Box 10350 Stamford, Connecticut 06904-2350 (herein referred to as the "Reinsurer") and MERCHANTS MUTUAL INSURANCE COMPANY MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. 250 Main Street Buffalo, New York 14240 (herein collectively referred to as the "Company") - -------------------------------------------------------------------------------- In consideration of the promises set forth in this Agreement, the parties agree as follows: ARTICLE I - SCOPE OF AGREEMENT As a condition precedent to the Reinsurer's obligations under this Agreement, the Company shall cede to the Reinsurer the business described in this Agreement, and the Reinsurer shall accept such business as reinsurance from the Company. This Agreement is comprised of General Articles I through XI and the Exhibit(s) listed below and each Exhibit which may be made a part of this Agreement. The terms of the General Articles and of the Exhibit(s) shall determine the rights and obligations of the parties. The terms of the General Articles shall apply to each Exhibit unless specifically amended therein. In the event of termination of all the Exhibits made a part of this Agreement, the General Articles shall automatically terminate when the liability of the Reinsurer under said Exhibits ceases. GENERAL REINSURANCE CORPORATION 4 EXHIBIT A - FIRST EXCESS OF LOSS REINSURANCE of CASUALTY BUSINESS EXHIBIT B - EXCESS OF LOSS REINSURANCE of PROPERTY BUSINESS EXHIBIT C - SECOND EXCESS OF LOSS REINSURANCE of CASUALTY BUSINESS EXHIBIT D - QUOTA SHARE AND EXCESS OF LOSS REINSURANCE of COMMERCIAL UMBRELLA AND EXCESS LIABILITY BUSINESS EXHIBIT E - QUOTA SHARE AND EXCESS OF LOSS REINSURANCE of PERSONAL UMBRELLA BUSINESS ARTICLE II - PARTIES TO THE AGREEMENT This Agreement is solely between the Company and the Reinsurer. When more than one Company is named as a party to this Agreement, the first Company named shall be the agent of the other companies as to all matters pertaining to this Agreement. Performance of the obligations of each party under this Agreement shall be rendered solely to the other party. However, if the Company becomes insolvent, the liability of the Reinsurer shall be modified to the extent set forth in the article entitled INSOLVENCY OF THE COMPANY. In no instance shall any insured of the Company or any claimant against an insured of the Company have any rights under this Agreement. ARTICLE III - MANAGEMENT OF CLAIMS AND LOSSES The Company shall investigate and settle or defend all claims and losses. When requested by the Reinsurer, the Company shall permit the Reinsurer, at the expense of the Reinsurer, to be associated with the Company in the defense or control of any claim, loss, or - 2 - GENERAL REINSURANCE CORPORATION 5 legal proceeding which involves or is likely to involve the Reinsurer. All payments of claims or losses by the Company within the limits of its policies which are within the limits set forth in the applicable Exhibit shall be binding on the Reinsurer, subject to the terms of this Agreement. ARTICLE IV - RECOVERIES The Company shall pay to or credit the Reinsurer with the Reinsurer's portion of any recovery obtained from salvage, subrogation, or other insurance. Adjustment expenses for recoveries shall be deducted from the amount recovered by the Company before determining the Reinsurer's portion of any recovery. The Reinsurer shall be subrogated to the rights of the Company to the extent of its loss payments to the Company. The Company agrees to enforce its rights of salvage, subrogation, and its rights against insurers or to assign these rights to the Reinsurer. If the reinsurance under an Exhibit is on a share basis, the recoveries shall be apportioned between the parties in the same ratio as the amounts of their liabilities bear to the loss. If the reinsurance under an Exhibit is on an excess basis, recoveries shall be distributed to the parties in an order inverse to that in which their liabilities accrued. ARTICLE V - ERRORS AND OMISSIONS The Reinsurer shall not be relieved of liability because of an error or accidental omission of the Company in reporting any claim or loss or any business reinsured under this Agreement, provided that the error or omission is rectified promptly after discovery. The Reinsurer shall be obligated only for the return of the premium paid for business reported but not reinsured under this Agreement. - 3 - GENERAL REINSURANCE CORPORATION 6 ARTICLE VI - SPECIAL ACCEPTANCES Business not within the terms of this Agreement may be submitted to the Reinsurer for special acceptance and, if accepted by the Reinsurer, shall be subject to all of the terms of this Agreement except as modified by the special acceptance. ARTICLE VII - RESERVES AND TAXES The Reinsurer shall maintain the required reserves as to the Reinsurer's portion of unearned premium, claims, losses, and adjustment expense. The Company shall be liable for all premium taxes on premium ceded to the Reinsurer under this Agreement. If the Reinsurer is obligated to pay any premium taxes on this premium, the Company shall reimburse the Reinsurer; however, the Company shall not be required to reimburse the Reinsurer for any premium taxes the Reinsurer is obligated to pay if the Company is also required to pay premium taxes on that premium. ARTICLE VIII - OFFSET The Company or the Reinsurer may offset any balance, whether on account of premium, commission, claims or losses, adjustment expense, salvage, or otherwise, due from one party to the other under this Agreement or under any other agreement heretofore or hereafter entered into between the Company and the Reinsurer. In the event of the insolvency of either party to this Agreement, then offsets shall only be allowed to the extent permitted by the provisions of New York Insurance Law Section 7427. ARTICLE IX - INSPECTION OF RECORDS The Company shall allow the Reinsurer to inspect, at reasonable times, the records of the Company relevant to the business reinsured under this Agreement, including Company files concerning claims, losses, or legal proceedings which involve or are likely to involve the Reinsurer. - 4 - GENERAL REINSURANCE CORPORATION 7 ARTICLE X - ARBITRATION Any unresolved difference of opinion between the Reinsurer and the Company shall be submitted to arbitration by three arbitrators. One arbitrator shall be chosen by the Reinsurer, and one shall be chosen by the Company. The third arbitrator shall be chosen by the other two arbitrators within ten (10) days after they have been appointed. If the two arbitrators cannot agree upon a third arbitrator, each arbitrator shall nominate three persons of whom the other shall reject two. The third arbitrator shall then be chosen by drawing lots. If either party fails to choose an arbitrator within thirty (30) days after receiving the written request of the other party to do so, the latter shall choose both arbitrators, who shall choose the third arbitrator. The arbitrators shall be impartial and shall be present or former officials of property or casualty insurance or reinsurance companies. The party requesting arbitration (the "Petitioner") shall submit its brief to the arbitrators within thirty (30) days after notice of the selection of the third arbitrator. Upon receipt of the Petitioner's brief, the other party (the "Respondent") shall have thirty (30) days to file a reply brief. On receipt of the Respondent's brief, the Petitioner shall have twenty (20) days to file a rebuttal brief. Respondent shall have twenty (20) days from the receipt of Petitioner's rebuttal brief to file its rebuttal brief. The arbitrators may extend the time for filing of briefs at the request of either party. The arbitrators are relieved from judicial formalities and, in addition to considering the rules of law and the customs and practices of the insurance and reinsurance business, shall make their award with a view to effecting the intent of this Agreement. The decision of the majority shall be final and binding upon the parties. The costs of arbitration, including the fees of the arbitrators, shall be shared equally unless the arbitrators decide otherwise. The arbitration shall be held at the times and places agreed upon by the arbitrators. - 5 - GENERAL REINSURANCE CORPORATION 8 ARTICLE XI - INSOLVENCY OF THE COMPANY In the event of the insolvency of the Company, the reinsurance proceeds will be paid to the Company or the liquidator on the basis of the amount of the claim allowed in the insolvency proceeding without diminution by reason of the inability of the Company to pay all or part of the claim. The Reinsurer shall be given written notice of the pendency of each claim against the Company on the policy(ies) reinsured hereunder within a reasonable time after such claim is filed in the insolvency proceedings. The Reinsurer shall have the right to investigate each such claim and to interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defenses which it may deem available to the Company or its liquidator. The expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the insolvent Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate this 6TH day of FEBRUARY, 1996, GENERAL REINSURANCE CORPORATION /s/ ??? Vice President Attest: /s/ ??? and this day of , 199 . MERCHANTS MUTUAL INSURANCE COMPANY MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. Attest: ------------------------------ ------------------------------------- - 6 - Agreement No. 8009 GENERAL REINSURANCE CORPORATION 9 EXHIBIT A Attached to and made a part of AGREEMENT OF REINSURANCE NO. 8009 FIRST EXCESS OF LOSS REINSURANCE of CASUALTY BUSINESS SECTION 1 - LIABILITY OF THE REINSURER The Reinsurer shall pay to the Company, with respect to casualty business of the Company, the amount of net loss each occurrence in excess of the Company Retention but not exceeding the Limits of Liability of the Reinsurer as set forth in the Schedule of Reinsurance. SCHEDULE OF REINSURANCE
- ---------------------------------------------------------------------------- Company Class of Business Retention Limits of Liability of the Reinsurer - ---------------------------------------------------------------------------- EACH EACH EACH OCCURRENCE OCCURRENCE OCCURRENCE FIRST SECOND EXCESS COVER EXCESS COVER Casualty Business $500,000 $1,500,000 $3,000,000 - ---------------------------------------------------------------------------
SECTION 2 - COMBINATION COVER If an occurrence takes place which involves the classes of business reinsured under this Exhibit and one risk reinsured under Exhibit B to this Agreement in combination, the Reinsurer shall pay to the Company the amount of net loss in excess of a Company Retention of $500,000 with respect to such occurrence, but not exceeding a Limit of Liability of the Reinsurer of $500,000. The Limit of Liability of the Reinsurer specified in this Section shall be in GENERAL REINSURANCE CORPORATION 10 addition to the Limits of Liability of the Reinsurer set forth in the sections entitled LIABILITY OF THE REINSURER of this Exhibit and said Exhibit B. SECTION 3 - ALLOCATION OF ADJUSTMENT EXPENSE In addition to payments for its share of net loss, the Reinsurer shall pay to the Company a share of adjustment expenses proportionate to the Reinsurer's share of net loss. Should the amount of a judgment be reduced by any process or should a judgment be reversed outright, the adjustment expenses incurred in securing such reduction or reversal shall be apportioned between the Company and the Reinsurer in the ratio that each party benefits from such reduction or reversal. SECTION 4 - LOSS IN EXCESS OF POLICY LIMITS Notwithstanding the provisions of the article entitled MANAGEMENT OF CLAIMS AND LOSSES, if a third party claimant is awarded an amount in excess of the Company's policy limit and, as a result of the Company's failure to settle within the policy limit or of the Company's alleged or actual negligence or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action, an action is taken by the insured or assignee which could impose legal liability on the Company for an amount in excess of the Company's policy limit, the Reinsurer shall pay to the Company 90% of only that portion of the award made to the third party claimant which is in excess of the greater of the Company's policy limit or the Company Retention. The liability of the Reinsurer with respect to the entire amount of net loss, including the loss in excess of the Company's policy limit, shall not exceed the Limit of Liability of the Reinsurer as set forth in the section entitled LIABILITY OF THE REINSURER. However, this Section shall not apply where the loss has been incurred due to the fraud of a member of the Board of Directors, a corporate officer of the Company, or any A - 2 GENERAL REINSURANCE CORPORATION 11 other employee of the Company, acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense, or settlement of any claim covered hereunder. Recoveries from any form of insurance or reinsurance which protects the Company against claims which are the subject matter of this Section shall inure to the benefit of the Reinsurer and shall be deducted to arrive at the amount of the Company's net loss. SECTION 5 - EXTRA CONTRACTUAL OBLIGATIONS Notwithstanding the provisions of the article entitled MANAGEMENT OF CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, 90% of the extra contractual obligation shall be added to the Company's net loss from the occurrence and the total shall be allocated in accordance with the section entitled LIABILITY OF THE REINSURER. For purposes of this Section, the term "extra contractual obligation" shall mean a loss which the Company is legally liable to pay, which is not covered under any other provision of this Exhibit and which arises from the Company's handling of any claim on the policies reinsured hereunder which have limits of liability greater than the Company Retention. The date on which an extra contractual obligation is incurred by the Company shall be deemed, in all circumstances, to be the date of the original occurrence. This Section shall not apply where the extra contractual obligation has been incurred due to the fraud or criminal conduct of a member of the Board of Directors, a corporate officer of the Company, or any other employee of the Company, acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the investigation, defense or settlement of any claim covered hereunder. Any insurance or reinsurance, whether collectible or not, which indemnifies or protects the Company against claims which are the subject matter of this Section and any contribution, subrogation, or recovery shall inure to the benefit of the Reinsurer and shall be deducted to arrive at the amount of the Company's net loss. A - 3 GENERAL REINSURANCE CORPORATION 12 SECTION 6 - COMPANY POLICY AMOUNTS For the purpose of determining the Company Retention and the Limits of Liability of the Reinsurer, the limits of liability of the Company with respect to any one policy shall be deemed not to exceed: (a) Automobile Bodily Injury Liability $1,000,000 each person $1,000,000 each occurrence (b) Automobile Property Damage Liability $1,000,000 each occurrence (c) Automobile Liability Combined Single Limit $1,000,000 each occurrence (d) Uninsured Motorists Coverage $1,000,000 each person $1,000,000 each occurrence (e) Personal Injury Protection Coverage Statutory Limits (f) Other Bodily Injury Liability $1,000,000 each occurrence (g) Other Property Damage Liability $1,000,000 each occurrence (h) Other Liability Combined Single Limit $1,000,000 each occurrence (i) Section II Liability under Commercial Multiple Peril $1,000,000 each occurrence (j) Section II Liability under Businessowners $1,000,000 each occurrence (k) Section II Liability under Homeowners Multiple Peril $1,000,000 each occurrence (l) Section II Liability under Farmowners $1,000,000 each occurrence Multiple Peril (m) Employers' Liability (1) In All States with Statutory Limits Statutory Limits (2) In All Other States (i) Bodily Injury by Accident $1,000,000 each accident (ii) Bodily Injury by Disease $1,000,000 policy limit (iii) Bodily Injury by Disease $1,000,000 each employee
A - 4 GENERAL REINSURANCE CORPORATION 13 SECTION 7 - DEFINITIONS (a) CASUALTY BUSINESS This term shall mean insurance which is classified in the NAIC form of annual statement as Farmowners Multiple Peril (Section II), Homeowners Multiple Peril (Section II), Commercial Multiple Peril (Sections II and III, including Section II of Business Owners), Workers' Compensation, Other Liability, Automobile Liability, and Automobile Personal Injury Protection, and described in the manuals of the Insurance Services Office, or the standard workers' compensation form of policy, as respects losses occurring in the United States of America, its territories and possessions, and Canada. (b) COMPANY RETENTION This term shall mean the amount the Company shall retain for its own account; however, this requirement shall be satisfied if this amount is retained by the Company or its affiliated companies under common management or common ownership. (c) NET LOSS This term shall mean all payments by the Company in settlement of claims or losses, payment of benefits, or satisfaction of judgments or awards after deduction of salvage and after deduction of amounts due from all other reinsurance, whether collectible or not. This term shall not include adjustment expense. If the Company becomes insolvent, this definition shall be modified to the extent set forth in the article entitled INSOLVENCY OF THE COMPANY. (d) ADJUSTMENT EXPENSE This term shall mean expenditures by the Company, other than for office expenses and for the salaries and expenses of employees of the Company or of any subsidiary or related or wholly owned company of the Company, made in connection with the disposition of a claim, loss, or legal proceeding including investigation, negotiation, and legal expenses, court costs; statutory penalties; prejudgment interest or delayed damages; and interest on any judgment or award. A - 5 GENERAL REINSURANCE CORPORATION 14 (e) PREJUDGMENT INTEREST OR DELAYED DAMAGES This term shall mean interest or damages added to a settlement, verdict, award, or judgment based on the amount of time prior to the settlement, verdict, award, or judgment whether or not made part of the settlement, verdict, award, or judgment. (f) OCCURRENCE This term shall mean each accident or occurrence or series of accidents or occurrences arising out of one event regardless of the number of policies involved, and as respects workers' compensation and employers' liability policies, regardless of the number of employees or employers involved, except as modified below: (1) As respects exposures reinsured hereunder other than occupational and other disease or cumulative injury under workers' compensation policies, all bodily injury or property damage arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one occurrence. The date of occurrence shall be deemed to be the following: (i) As respects a loss involving one or more policies written on an occurrence basis, the date on which bodily injury or property damage occurs. (ii) As respects a loss involving one or more policies written on a claims-made basis, the date when notice of claim is received and recorded by the Company or the insured, whichever comes first, and any related claims reported subsequent to such date shall be included in such loss. However, if notice of claim is received and recorded by the Company or the insured during an Extended Reporting Period, the date of occurrence shall be deemed to be the last day of the policy period. (iii) As respects a loss involving one or more policies written on an occurrence basis and one or more policies written on a claims-made basis, the date on which bodily injury or property damage occurs, and any related claims reported subsequent to such date shall be included in such loss whether they are covered under occurrence or claims-made policies. A - 6 GENERAL REINSURANCE CORPORATION 15 (2) As respects an occupational or other disease or cumulative injury under workers' compensation or employers' liability policies for which the employer is liable: (i) Which arises from a specific sudden and accidental event limited in time and place, such occupational or other disease suffered by one or more employees of one or more employers shall be deemed to be an occurrence within the meaning of this Exhibit and the date of occurrence shall be deemed to be the date of the sudden and accidental event. (ii) Which does not arise from a specific sudden and accidental event limited in time and place, such occupational or other disease or cumulative injury shall be deemed to be an occurrence within the meaning of this Exhibit, and the date of occurrence shall be deemed to be the date of the beginning of the disability for which compensation is payable if the case is compensable under the Workers' Compensation law; or the date that disability due to said disease actually began if the case is not compensable under the Workers' Compensation law. Each case of an employee contracting such occupational or other disease or cumulative injury for which the employer insured by the Company is held liable shall be considered a separate occurrence regardless of the date of loss. SECTION 8 - EXCLUSIONS This Exhibit shall not apply to: (a) Business accepted by the Company as reinsurance from other insurers other than its affiliates; (b) Nuclear incident per the Nuclear Incident Exclusion Clause - Liability - Reinsurance attached hereto; (c) Policies covering liability of any insurer or reinsurer for its acts or omissions in the negotiation, settlement, or defense of claims or any act or omission in dealings with its policyholders; (d) Any loss or liability accruing to the Company directly or indirectly from any insurance written by or through any pool or association including pools or associations in which membership by the Company is required under any statutes or regulations and including automobile assigned risk A - 7 GENERAL REINSURANCE CORPORATION 16 pools and voluntary or involuntary market assistance programs; however, this exclusion shall not apply to individual automobile assigned risks assigned to the Company; (e) Any liability of the Company arising from its participation or membership in any insolvency fund; (f) Any loss or damage which is occasioned by war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public authority; however, this exclusion shall not apply to workers' compensation and employers liability nor to any policy which contains a standard war exclusion; (g) Business written on a co-indemnity basis not controlled by the Company; (h) Business written to apply in excess of a deductible or self insured amount of more than $5,000 or business written to apply specifically in excess over underlying insurance; (i) Automobile liability insurance relating to the ownership, maintenance, or use of: (1) Emergency vehicles including police and fire department vehicles; however, this exclusion shall not apply to renewal business; (2) Automobiles used in organized speed contests; (3) Automobile leasing or rental; (4) Commercial automobiles, as defined in the manuals of the Insurance Services Office, which customarily operate beyond a 300 mile radius; (5) Commercial automobiles over 80,000 lbs. gross vehicle weight or gross combination weight as defined in the manuals of the Insurance Services Office; however, this exclusion shall not apply to renewal business; (6) Motorcycles, motorized scooters, motorized bicycles, power cycles, and any similar motorized vehicles; (7) Public automobiles, other than school or church buses, as defined in the manuals of the Insurance Services Office; A - 8 GENERAL REINSURANCE CORPORATION 17 (8) Motor vehicles used for transporting explosives, munitions, corrosives, flammable and non-flammable gas, flammable liquid, poison, radioactive materials and hazardous waste; (j) Liability insurance written by the aviation underwriting unit of the Company, howsoever styled; (k) Liability insurance issued to any state or governmental agency or any political subdivision whatsoever; however, this exclusion shall not apply to school districts and school boards nor to renewal business. This exclusion shall also not apply to Owners and Contractors Protective policies issued to any such entities; (l) Liability insurance relating to premises or operations involving: (1) Aircraft or airports, as respects coverage for all liability arising out of the ownership, maintenance, or use of any aircraft or flight operations; (2) Amusement parks or devices, carnivals or circuses, sports or other entertainment events, arenas, grandstands, or stadiums; (3) Manufacturing, packing, handling, shipping, or storage of explosives, ammunitions, fuses, arms, magnesium, fireworks, nitroglycerine, celluloid, pyroxylin or explosive substances intended for use as an explosive; however, this exclusion shall not apply to incidental handling and storage in connection with the sale of such substances; (4) Gas or public utility companies, gas or public utility works, or gas lease operations; (5) Production, refining, handling, shipping, or storage of natural or artificial fuel gasses, synthetic or coal or shale based fuel, butane, propane, gasoline, or liquefied petroleum gas; however, this exclusion shall not apply to gasoline service stations, convenience stores and fuel oil dealers; (6) Oil or gas pipelines, wells, or drilling operations; (7) Railroad operations; (8) Ship building, boat manufacturing, ship repair yards, dry docks, stevedoring, or watercraft; however, this exclusion shall not A - 9 GENERAL REINSURANCE CORPORATION 18 apply to watercraft commonly insured under homeowners policies; (9) Underground work, including underground mining and quarrying, tunneling, and subway construction; (10) Off-shore and subaqueous work; (11) Wrecking or demolition of structures over 3 stories in height, or marine wrecking; (12) Chemical manufacturing; (m) Liability insurance relating to products or completed operations involving the manufacture or importation of: (1) Cosmetics, hair, and skin products; (2) Drugs, pharmaceuticals, and agricultural chemicals; (3) Aircraft, aircraft parts, or aircraft engines, all motorized vehicles, or mobile equipment; (4) Heavy machinery and equipment, home power tools, or oil drilling equipment; (n) Insurance covering damages claimed for the withdrawal, inspection, repair, replacement, or loss of use of the insured's products or of any property of which such products form a part, or if such products or property are withdrawn from the market or from use because of any known or suspected defect or deficiency therein; (o) Malpractice insurance, directors and officers liability insurance, or any other form of errors and omissions or professional liability insurance; however, this exclusion shall not apply to druggists operating outside the State of Florida, funeral directors, veterinarians', beauty and barber shops', hearing aid service specialists', cemetery operators' liability, opticians', or printers liability business, nor to employee benefits liability business; (p) Insurance written for governmental bodies to afford protection against liability arising out of riot, civil commotion, or mob action or out of any act or omission in connection with the prevention or suppression of any riot, civil commotion, or mob action; A - 10 GENERAL REINSURANCE CORPORATION 19 (q) Liability insurance relating to or involving satellites, spacecraft, and launch vehicles, including cargo and freight carried therein, in all phases of operation (including but not limited to manufacturing, transit, pre-launch, launch and in-orbit); (r) Pollution liability insurance or environmental impairment liability, howsoever styled; (s) Pollution under any commercial multiple peril policy, farmowners multiple peril policy, farm liability policy or any other commercial other liability policy written by the Company which does not contain the pollution exclusion set forth in ISO Commercial General Liability Form CG 00 01 (Ed. 11/88) or as subsequently amended or under any garage liability policy written by the Company which does not contain the pollution exclusion set forth in ISO Garage Coverage Form CA 00 05 (Ed. 1/87) or as subsequently amended; however, this exclusion does not apply to any risk located in a jurisdiction which has not approved the Insurance Services Office exclusion or where other regulatory constraints prohibit the Company from attaching such endorsement. If the Company elects to file an endorsement independent of ISO, such endorsement will be deemed a suitable substitute provided the Company has submitted the wording to the Reinsurer and received the Reinsurer's prior approval. (t) Workers' compensation and employers' liability insurance with respect to operations principally involving: (1) Aircraft flight and ground operations or operations in which the flying hazard is a major part; (2) Amusement parks or devices, exhibitions (including fireworks), carnivals or circuses, sports events and/or participants; (3) Manufacturing, packing, handling, shipping, or storage of explosives, substances intended for use as an explosive, ammunitions, fuses, arms, magnesium, propellant charges, detonating devices, fireworks, nitroglycerine, celluloid, or pyroxylin; however, this exclusion shall not apply to the incidental packing, handling or storage of same in connection with the sale of such substances; (4) Gas companies, dealers, or distributors, except those in the gasoline service station, convenience store or fuel oil dealer business; oil or gas operators, lease operators or contractors; oil or gas well works; oil or gas pipeline construction or opera- A - 11 GENERAL REINSURANCE CORPORATION 20 tions; oil rig and derrick work; onshore or offshore gas or oil drilling operations; (5) Manufacturing, packing, handling, shipping or storage of natural gas or artificial fuel gasses, butane, propane, gasoline, or liquefied petroleum gas; however, this exclusion shall not apply to the incidental packing, handling or storage of same in connection with the sale of such substances; (6) Railroad operation or construction; (7) Maritime or federal employments; steamship lines, agencies, or stevedoring, navigation or operation of vessels; operation of drydocks; and including all United States Longshoremen's and Harbor Workers' exposures except as endorsed on an if any basis; (8) Sewer, subway, or water main construction, shaft sinking, or tunnelling; (9) Wrecking or demolition of buildings, structures, or vessels; (10) Underground mining, strip mining, or quarrying; (11) Subaqueous work; (12) Caisson or coffer dam work; dam, dike, lock, or revetment construction; (13) Chemical manufacturing; (14) Nuclear Regulatory Commission projects or operations conducted under license from the Nuclear Regulatory Commission; (15) Asbestos removal; (16) Firefighters and police officers. If the Company provides insurance for an insured with respect to the ownership, maintenance, or use of items listed in exclusions (i)(l) through (i)(7) and if such ownership maintenance, or use constitutes only a minor and incidental part of the total ownership, maintenance, or use of such items of the insured, such exclusion(s) shall not apply. A - 12 GENERAL REINSURANCE CORPORATION 21 If the Company provides insurance for an insured with respect to any premises, operations, products, or completed operations listed in exclusions (l) and (m), except exclusions (l)(3), and (l)(4), and if such premises, operations, products, or completed operations constitute only a minor incidental part of the total premises, operations, products, or completed operations of the insured, such exclusion(s) shall not apply. If the Company is bound, without the knowledge of and contrary to the instructions of the Company's supervisory underwriting personnel, on any business falling within the scope of one or more of the exclusions set forth in this Section, these exclusions, except (a) through (g), (l)(3), (l)(4), (n) through (r), (t)(3) and (t)(4) shall be suspended with respect to such business until 30 days after an underwriting supervisor of the Company acquires knowledge of such business. SECTION 9 - REINSURANCE PREMIUM AND COMMISSION The Company shall pay to the Reinsurer: (a) With respect to business in force at the effective time and date of this Exhibit: (1) For the First Excess Cover, a reinsurance premium equal to the product of the applicable First Excess reinsurance rate set forth in Appendix A attached hereto and the Company's unearned premium for the classes of business reinsured hereunder, calculated on the monthly pro rata basis as of the effective time and date of this Exhibit; (2) For the Second Excess Cover, a reinsurance premium equal to the product of the applicable Second Excess reinsurance rate set forth in Appendix A attached hereto and the Company's unearned premium for the classes of business reinsured hereunder, calculated on the monthly pro rata basis as of the effective time and date of this Exhibit. (b) With respect to business becoming effective at and after the effective time and date of this Exhibit: A - 13 GENERAL REINSURANCE CORPORATION 22 (1) For the First Excess Cover, a reinsurance premium equal to the product of the applicable First Excess reinsurance rate set forth in Appendix A attached hereto and the Company's written premium for the classes of business reinsured hereunder; (2) For the Second Excess Cover, a reinsurance premium equal to the product of the applicable Second Excess reinsurance rate set forth in Appendix A attached hereto and the Company's written premium for the classes of business reinsured hereunder, subject to an annual minimum and deposit reinsurance premium of $400,000. The reinsurance premiums for the First and Second Excess Covers and the annual minimum and deposit reinsurance premium in (b)(2) above are subject to a fixed commission allowance of 50%. For the purpose of the calculation of the reinsurance premium for business owners policies reinsured hereunder, the reinsurances rates in (a) and (b) above shall be applied against 60% of the business owners policy premium unearned or written, as applicable. SECTION 10 - CONTINGENT COMMISSION The provisions of this Section apply to the Reinsurer's combined underwriting experience under the First Excess Cover and Combination Cover of this Exhibit and under Exhibit B to this Agreement. In addition to the fixed commission set forth in the sections entitled REINSURANCE PREMIUM AND COMMISSION of this Exhibit and Exhibit B to this Agreement, the Reinsurer shall pay to the Company a contingent commission of 50% of the amount by which the Reinsurer's Income exceeds the Reinsurer's Outgo for each contingent period. With respect to the contingent commission and the calculation thereof, the following interpretations and reporting provisions shall apply: (a) CONTINGENT PERIOD The initial contingent period shall be from January 1, 1993, through December 31, 1995, (the period from January 1, 1993, through December 31, 1994, under prior Agreement No. 7299 between the Company A - 14 GENERAL REINSURANCE CORPORATION 23 and the Reinsurer and the period from January 1, 1995, through December 31, 1995, under this Agreement) and thereafter each contingent period shall consist of 36 months to begin concurrently with the expiration of the previous contingent period; however, (1) Should the date of termination of this Exhibit coincide with the completion of a contingent period, such contingent period and the period from the date of termination until expiration or termination of the reinsurance, if any, then in effect shall be combined and shall constitute a single contingent period. (2) Should the Reinsurer terminate this Exhibit and the date of termination not coincide with the completion of a contingent period, the following periods shall be combined and shall constitute a single contingent period: (i) the last contingent period completed prior to the date of termination, and (ii) the period from the last completed contingent period until the date of termination, and (iii) the period from the date of termination until expiration or termination of the reinsurance, if any, then in effect. (3) Should the Company terminate this Exhibit and the date of termination not coincide with the completion of a contingent period, the provisions of sub-paragraph (f) of this Section shall apply. (b) REINSURER'S INCOME This term shall mean: (1) The reinsurance premium written, net of fixed commission. during the contingent period for the First Excess Cover of this Exhibit and for Exhibit B; (2) Plus the reinsurance premium unearned, net of fixed commission, at the end of the preceding contingent period for the First Excess Cover of this Exhibit and for Exhibit B, calculated on a monthly pro rata basis; (3) Less the reinsurance premium unearned, net of fixed commission, at the end of the contingent period for the First Excess A - 15 GENERAL REINSURANCE CORPORATION 24 Cover of this Exhibit and for Exhibit B, calculated on a monthly pro rata basis. (c) REINSURER'S OUTGO This term shall mean: (1) The sum of the Reinsurer's payments and reserves for claims, losses and adjustment expense (including reserves for claims and losses incurred but not reported, as set forth in sub-paragraph (d) below) less the Reinsurer's portion of salvage recovered, resulting from occurrences taking place during the contingent period (or, as respects the initial contingent period, resulting from occurrences taking place during the contingent period insured under new and renewal policies becoming effective on and after January 1, 1993) and allocated to the First Excess Cover or the Combination Cover of this Exhibit and to Exhibit B; (2) Plus 20% of the Reinsurer's Income as a risk charge. (d) RESERVES FOR CLAIMS AND LOSSES INCURRED BUT NOT REPORTED The reserves for claims and losses incurred but not reported (IBNR) shall be determined separately for each twelve month period within each experience period. IBNR will be determined by multiplying the Reinsurer's Income for each twelve month period by the appropriate factor based on the maturity of the period from its commencement date.
MATURITY CASUALTY PROPERTY (IN MONTHS) IBNR FACTOR IBNR FACTOR 12 .70 .00 24 .60 .00 36 .40 .00 48 .20 .00 60 .00 .00
(e) STATEMENTS OF CONTINGENT COMMISSION As soon as practicable after each anniversary of the commencement of a contingent period, the Reinsurer shall render to the Company an interim statement of contingent commission for the period from the commencement of the contingent period until such anniversary. The amount thereof, payable subject to the following Schedule, shall be balanced A - 16 GENERAL REINSURANCE CORPORATION 25 against the amount previously paid the Company for the contingent period and the difference due either party shall be remitted promptly.
THE CONTINGENT COMMISSION AT THE COMPLETION OF PAYABLE SHALL BE (1) The first year of the 33 1/3% of the amount due contingent period (2) the second year of the 66 2/3% of the amount due contingent period (3) the third year of the 100% of the amount due contingent period
As soon as practicable after the end of a contingent period, the Reinsurer shall render to the Company a statement of contingent commission for the entire contingent period. The amount thereof shall be balanced against the amount previously allowed the Company for the contingent period and the amount due either party shall be remitted promptly. Annually thereafter, revised statements shall be rendered to the Company reflecting changes in the original statement until all losses which occurred during the contingent period are fully discharged, and the amount due either party because of such changes shall be remitted promptly. (f) TERMINATION
IF THIS EXHIBIT IS THE CONTINGENT TERMINATED BY THE COMPANY COMMISSION PERCENTAGE AT ANY TIME DURING SHALL BE (1) the first year of any Nil contingent period (2) the second year of any 33 1/3% of 50% contingent period (3) the third year of any 66 2/3% of 50% contingent period
If this Exhibit is still in force at the end of a contingent period, the contingent commission percentage for the entire contingent period shall be 100% of 50%. If this Exhibit is terminated by the Reinsurer, the contingent commission percentage for each contingent period, or fractional part thereof, shall be 100% of 50%. A - 17 GENERAL REINSURANCE CORPORATION 26 SECTION 11 - REPORTS AND REMITTANCES (a) REINSURANCE PREMIUM (1) IN FORCE PREMIUM Within 25 days after the commencement of this Exhibit, the Company shall render to the Reinsurer a report of the reinsurance premium with respect to the business of the Company in force at the effective time and date of this Exhibit, summarizing the reinsurance premium by line of insurance, by term, and by month and year of expiration; and the amount due the Reinsurer shall be remitted within 60 days after the commencement of this Exhibit. (2) FIRST EXCESS COVER Within 25 days after the close of each month, the Company shall render to the Reinsurer a report of the reinsurance premium for the month with respect to business of the Company written during the month, summarizing the reinsurance premium by line of insurance; and the amount due either party shall be remitted within 60 days after the close of the month. Within 25 days after the close of each calendar quarter, the Company shall render to the Reinsurer a report of the reinsurance premium unearned by line of insurance and the contribution for the quarter to the reinsurance premium in force by line of insurance, by term and by month and year of expiration. (3) SECOND EXCESS COVER Within 25 days after the beginning of each calendar quarter, the Company shall pay to the Reinsurer one quarter of the annual minimum and deposit reinsurance premium stipulated in sub-paragraph (b)(2) the section entitled REINSURANCE PREMIUM AND COMMISSION. Within 60 days after the close of each calendar year, the Company shall render to the Reinsurer a report of the premium written by the Company on the classes of business reinsured hereunder during such calendar year. The Company shall calculate the reinsurance premium thereon and remit to the Reinsurer the amount of reinsurance premium, if any, in excess of the A - 18 GENERAL REINSURANCE CORPORATION 27 annual minimum and deposit reinsurance premium previously paid. (b) CLAIMS AND LOSSES The Company shall report promptly to the Reinsurer each claim or loss for which the Company's estimated amount of net loss is 50% or more of the amount of the Company Retention and shall also report all cases of serious injury which, regardless of considerations of liability or coverage, might involve this reinsurance, including but not limited to the following: (1) Cord injury - paraplegia, quadriplegia; (2) Amputations - requiring a prosthesis; (3) Brain damage affecting mentality or central nervous system - such as permanent disorientation, behavior disorder, personality change, seizures, motor deficit, inability to speak (aphasia), hemiplegia or unconsciousness (comatose); (4) Blindness; (5) Burns - involving over 10% of body with third degree or 30% of body with second degree; (6) Multiple fractures - involving more than one member or non-union; (7) Fracture of both heel bones (fractured bilateral os calcis); (8) Nerve damage causing paralysis and loss of sensation in arm and hand (brachial plexus nerve damage); (9) Massive internal injuries affecting body organs; (10) Injury to nerves at base of spinal canal (Cauda Equina) or any other back injury resulting in incontinence of bowel and/or bladder; (11) Fatalities; (12) Any other serious injury which, in the judgment of the Company, might involve the Reinsurer. A - 19 GENERAL REINSURANCE CORPORATION 28 The Company shall advise the Reinsurer of the estimated amount of net loss and adjustment expense in connection with each such claim or loss and of any subsequent changes in such estimates. Upon receipt of a definitive statement of net loss and adjustment expense from the Company, the Reinsurer shall pay promptly to the Company the Reinsurer's portion of net loss and Reinsurer's portion of adjustment expense, if any. Any subsequent changes shall be reported by the Company to the Reinsurer and the amount due either party shall be remitted promptly. (c) GENERAL In addition to the reports required in (a) and (b) above, the Company shall furnish such other information as may be required by the Reinsurer for the completion of the Reinsurer's quarterly and annual statements and internal records. All reports shall be rendered in forms acceptable to the Company and the Reinsurer. SECTION 12 - COMMENCEMENT AND TERMINATION As respects policies written on a claims-made basis, this Exhibit shall apply to claims received and recorded by the Company or the insured at and after 12:01 A.M., January 1, 1995, provided that each such policy includes a specific retroactive date and the occurrence which results in each such claim takes place on or after such retroactive date, and provided further that such retroactive date is on or after the inception date of the first of one or more consecutive claims-made policies issued by the Company or another insurer(s) to the named insured. However, this Exhibit shall not apply to claims received and recorded by the Company or the insured during any Extended Reporting Period in force at such time and date. As respects policies written on an occurrence basis, this Exhibit shall apply to claims and losses resulting from occurrences taking place at and after 12:01 A.M., January 1, 1995. This Exhibit may be terminated by either party sending to the other, by registered mail to its principal office, notice stating the time and date when, not less than 90 days after the date of mailing of such notice, termination shall be effective. A - 20 GENERAL REINSURANCE CORPORATION 29 Upon termination of this Exhibit, the Reinsurer shall continue to be liable, with respect to policies in force at the time and date of termination, for occurrences taking place until the expiration, cancellation, or next anniversary date, not to exceed one year, of each such policy of the Company, whichever occurs first, provided that with respect to policies written on a claims-made basis, the claim is received and recorded by the Company or the insured before such expiration, cancellation, or next anniversary date. However, if the Company provides an Extended Reporting Period within one year after the termination date of this Exhibit on any claims-made policy which is in force at such termination date or if an Extended Reporting Period is in force at the time and date of termination, the Reinsurer shall continue to be liable for claims received and recorded by the Company or the insured during such Extended Reporting Period, provided always that the occurrence which results in any such claim takes place prior to the expiration or cancellation date of the policy. The reinsurance premium for any unlimited Extended Reporting Period provided within one year after the termination date of this Exhibit on any claims-made policy which is in force at such termination date shall be calculated in accordance with the provisions of the section entitled REINSURANCE PREMIUM AND COMMISSION. When all reinsurance is expired or terminated, the Reinsurer shall return to the Company the reinsurance premium unearned, if any, calculated on the monthly pro rata basis, less the commission previously allowed thereon. A -21 Agreement No. 8009 GENERAL REINSURANCE CORPORATION 30 APPENDIX A Attached to and made a part of EXHIBIT A OF AGREEMENT NO. 8009 REINSURANCE RATES
CLASS OF BUSINESS GROSS REINSURANCE RATE FIRST EXCESS SECOND EXCESS Private Passenger Automobile Liability (including PIP) 0.36% 0.18% Commercial Automobile Liability (including PIP) 3.20% 0.18% Workers' Compensation and Employers' Liability 5.40% 2.60% Commercial Multiple Peril (Section II) and Business Owners (Section II) 8.24% 0.18% Homeowners Multiple Peril (Section II) and Farmowners Multiple Peril (Section II) -- 0.18% All Other Liability 4.64% 0.18%
GENERAL REINSURANCE CORPORATION 31 EXHIBIT B Attached to and made a part of AGREEMENT OF REINSURANCE NO. 8009 EXCESS OF LOSS REINSURANCE of PROPERTY BUSINESS - -------------------------------------------------------------------------------- SECTION 1 - LIABILITY OF THE REINSURER The Reinsurer shall pay to the Company, with respect to each risk of the Company, the amount of net loss sustained by the Company in excess of the Company Retention but not exceeding the Limit of Liability of the Reinsurer as set forth in the Schedule of Reinsurance. The Limit of Liability of the Reinsurer under this Exhibit shall not exceed a total payment of $3,000,000 on all risks involved in one occurrence. SCHEDULE OF REINSURANCE
- ----------------------------------------------------------------------------------------------- Company Limit of Liability Class of Business Retention of the Reinsurer - ----------------------------------------------------------------------------------------------- All Property Business $500,000 $1,500,000 - -----------------------------------------------------------------------------------------------
All insurance written under one or more policies of the Company against the same peril on the same risk shall be combined, and Company Retention and Liability of the Reinsurer shall be determined on the basis of the sum of all insurance against the same peril and on the same risk which is in force at the time of a claim or loss. SECTION 2 - COMBINATION COVER If an occurrence takes place which involves one risk reinsured under this Exhibit and the classes of business reinsured under Exhibit A to this Agreement in combination, the provisions of the section entitled COMBINATION COVER of said Exhibit A shall apply. GENERAL REINSURANCE CORPORATION 32 SECTION 3 - ALLOCATION OF ADJUSTMENT EXPENSE In addition to payments for its share of net loss, the Reinsurer shall pay to the Company a share of adjustment expense proportionate to the Reinsurer's share of net loss. SECTION 4 - EXTRA CONTRACTUAL OBLIGATIONS Notwithstanding the provisions of the article entitled MANAGEMENT OF CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, 90% of the extra contractual obligation shall be added to the Company's net loss from the occurrence and the total shall be allocated in accordance with the section entitled LIABILITY OF THE REINSURER. For purposes of this Section, the term "extra contractual obligation" shall mean a loss which the Company is legally liable to pay, which is not covered under any other provision of this Exhibit and which arises from the Company's handling of any claim on the policies reinsured hereunder which have amounts of insurance greater than the Company Retention. The date on which an extra contractual obligation is incurred by the Company shall be deemed, in all circumstances, to be the date of the original occurrence. This Section shall not apply where the extra contractual obligation has been incurred due to the fraud or criminal conduct of a member of the Board of Directors, a corporate officer of the Company, or any other employee of the Company, acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the investigation, defense or settlement of any claim covered hereunder. Any insurance or reinsurance, whether collectible or not, which indemnifies or protects the Company against claims which are the subject matter of this Section and any contribution, subrogation, or recovery shall inure to the benefit of the Reinsurer and shall be deducted to arrive at the amount of the Company's net loss. B - 2 GENERAL REINSURANCE CORPORATION 33 SECTION 5 - OTHER REINSURANCE The obligations of the Company to reinsure business falling within the scope of this Exhibit and of the Reinsurer to accept such reinsurance are mandatory and no other reinsurance (either facultative or treaty) is permitted, except as provided for below. When the amount of insurance written by the Company on an individual risk exceeds $2,000,000 permission is granted the Company to purchase facultative excess of loss or share reinsurance for the amount over $2,000,000 on such risk. If the Company purchases facultative excess of loss reinsurance, it shall advise the Reinsurer immediately, and a reinsurance rate which compensates for the enhanced partial loss shall be agreed upon. If the Company does not purchase either facultative excess of loss or share reinsurance for the amount over $2,000,000 on such risk, the net loss for the purpose of computing the Company Retention and the Limit of Liability of the Reinsurer shall be reduced as if facultative share reinsurance had been in force at the time of the loss for the amount over $2,000,000 on such risk. The Company may also purchase facultative excess of loss reinsurance or facultative share reinsurance on the liability of the Reinsurer, if, in the underwriting judgment of the Company, the Reinsurer will be benefited thereby. In no event, however, shall the amount required with respect to the Company Retention be reduced. Recoveries from catastrophe reinsurance shall be deemed not to reduce the amount required with respect to the Company Retention. SECTION 6 - DEFINITIONS (a) PROPERTY BUSINESS This term shall mean insurance which is classified in the NAIC form of annual statement as Fire, Allied Lines, Farmowners Multiple Peril (Section I), Homeowners Multiple Peril (Section I), Commercial Multiple Peril (Section I, including Section 1 of Business Owners), Inland Marine, and Automobile Physical Damage (including collision, water damage, fleet dealers' and garagekeepers' legal liability) except those lines specifically excluded in the section entitled EXCLUSIONS, on risks wherever B - 3 GENERAL REINSURANCE CORPORATION 34 located in the United States of America, its territories and possessions, and Canada. (b) COMPANY RETENTION This term shall mean the amount the Company shall retain for its own account; however, this requirement shall be satisfied if this amount is retained by the Company or its affiliated companies under common management or common ownership. (c) NET LOSS This term shall mean all payments by the Company in settlement of claims or losses after deduction of salvage and after deduction of amounts due from all other reinsurance, except catastrophe reinsurance, whether collectible or not. This term shall not include adjustment expense. If the Company becomes insolvent, this definition shall be modified to the extent set forth in the article entitled INSOLVENCY OF THE COMPANY. (d) ADJUSTMENT EXPENSE This term shall mean expenditures by the Company, other than for office expenses and for the salaries and expenses of employees of the Company or of any subsidiary or related or wholly owned company of the Company, made in connection with the disposition of a claim, loss, or legal proceeding including investigation, negotiation, and legal expenses, court costs; statutory penalties; prejudgment interest or delayed damages; and interest on any judgment or award. (e) PREJUDGMENT INTEREST OR DELAYED DAMAGES This term shall mean interest or damages added to a settlement, verdict, award, or judgment based on the amount of time prior to the settlement, verdict, award, or judgment whether or not made part of the settlement, verdict, award, or judgment. (f) PROPERTY RISK The Company shall establish what constitutes one risk, provided: (1) a building and its contents, including time element coverages, shall never be considered more than one risk; B - 4 GENERAL REINSURANCE CORPORATION 35 (2) when two or more buildings and their contents are situated at the same general location, the Company shall identify on its records at the time of acceptance by the Company those individual buildings and their contents that are considered to constitute each risk; if such identification is not made, each building and its contents shall be considered to be a separate risk. (g) BUILDING This term shall mean each structure that is considered by the local fire insurance rating organization to be a separate building for rate making purposes. With reference to structures not rated specifically by the local fire insurance rating organization, the term building shall mean each separately roofed structure enclosed within exterior walls. (h) AUTOMOBILE PHYSICAL DAMAGE RISK The Company shall establish what constitutes one automobile physical damage risk, provided: (1) a tractor and trailer(s) or a tractor and semi-trailer(s) shall never be considered more than one risk; (2) with respect to fleet dealers' business and garage keepers legal liability business, all vehicles housed in one building shall never be considered more than one risk; (3) with respect to fleet dealers' business and garage keepers legal liability business, any location where all vehicles are situated out-of-doors shall never be considered more than one risk. (i) OCCURRENCE This term shall mean each occurrence or series of occurrences arising out of one event. SECTION 7 - EXCLUSIONS This Exhibit shall not apply to: (a) Reinsurance accepted by the Company other than: (1) Facultative reinsurance on a share basis of risks accepted individually and not forming part of any agreement, or B - 5 GENERAL REINSURANCE CORPORATION 36 (2) Local agency reinsurance on a share basis accepted in the normal course of business, or (3) From its affiliates; (b) Nuclear incident per the Nuclear Incident Exclusion - Physical Damage - Reinsurance attached hereto; (c) Any loss or liability accruing to the Company directly or indirectly from any insurance written by or through any pool or association including pools or associations in which membership by the Company is required under any statutes or regulations; (d) Any liability of the Company arising from its participation or membership in any insolvency fund; (e) Any loss or damage which is occasioned by war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public authority; however, this exclusion shall not apply to any policy which contains a standard war exclusion; (f) Policies written to apply in excess of underlying insurance or policies written with a deductible or franchise of more than $5,000; however, this exclusion shall not apply to policies which provide a percentage deductible or franchise in connection with windstorm; (g) Insurance against earthquake, except when written in conjunction with fire and otherwise eligible perils; (h) Insurance on growing crops; (i) Insurance against flood, surface water, waves, tidal water or tidal wave, overflow of streams or other bodies of water or spray from any of the foregoing, all whether driven by wind or not, except when written in conjunction with fire and otherwise eligible perils; (j) Business classified as fidelity; (k) Liability under coverage afforded for loss or damage resulting from failure to account or pay for any goods or merchandise sold on credit, delivered under deferred payment agreements, consigned for sale, or delivered under any trust or floor plan agreements, except under standard accounts receivable policies; B - 6 GENERAL REINSURANCE CORPORATION 37 (l) Any loss or damage caused by or resulting from explosion, rupture, or bursting of steam boilers, steam pipes, steam turbines, steam engines, or rotating parts of machinery caused by centrifugal force; if owned by, leased by, or actually operated under the control of the insured. This exclusion shall not apply to ensuing loss by fire not otherwise excluded; (m) Mortgage impairment insurance and similar kinds of insurance, howsoever styled, providing coverage to an insured with respect to its mortgagee interest in property or its owner interest in foreclosed property; (n) Difference in conditions insurance and similar kinds of insurance, howsoever styled; (o) Risks which have a total insurable value of more than $250,000,000; however, this exclusion shall not apply if the Company writes 100% of the risk; (p) Any collection of fine arts with an insurable value of $5,000,000 or more; (q) Mobile homes; however, this exclusion shall not apply to dealers' physical damage renewal business; (r) Inland marine business with respect to the following: (1) All bridges and tunnels; (2) Cargo insurance when written as such with respect to ocean, lake, or inland waterways vessels; (3) Commercial negative film insurance and cast insurance; (4) Drilling rigs; (5) Furriers' customers policies; (6) Garment contractors policies; (7) Insurance on livestock under so-called "mortality policies"; (8) Jewelers' block policies and furriers' block policies; (9) Mining equipment while underground; B - 7 GENERAL REINSURANCE CORPORATION 38 (10) Motor truck cargo insurance written for common carriers operating beyond a radius of 300 miles; (11) Radio and television broadcasting towers; (12) Registered mail insurance when the limit of any one addressee on any one day is more than $50,000; (13) Watercraft other than watercraft insured under a standard homeowners policy; (s) Loss of, damage to, or failure of, or consequential loss resulting therewith (including but not limited to earnings and extra expense) of satellites, spacecraft, and launch vehicles, including cargo and freight carried therein, in all phases of operation (including but not limited to manufacturing, transit, pre-launch, launch, and in-orbit); (t) Coverage afforded by ISO Pollutant Clean Up and Removal Additional Aggregate Limit of Insurance Endorsement CP 04 07 (Ed. 4/86) or as subsequently amended or by any similar endorsement affording such coverage; (u) Pollutant clean up or removal under any commercial property policy or any inland marine policy written by the Company which does not contain ISO Changes-Pollutants Endorsement CP 01 86 (Ed. 4/86) or as subsequently amended; however, this exclusion does not apply to any risk located in a jurisdiction which has not approved the Insurance Services Office exclusion or where other regulatory constraints prohibit the Company from attaching such endorsement. If the Company elects to file an endorsement independent of ISO, such endorsement will be deemed a suitable substitute provided the Company has submitted the wording to the Reinsurer and received the Reinsurer's prior approval. SECTION 8 - REINSURANCE PREMIUM AND COMMISSION The Company shall pay to the Reinsurer: (a) With respect to business becoming in force at the effective time and date of this Exhibit: (1) 0.20% of the Company's unearned premium on homeowners multiple peril (Section I), after deducting that portion, if any, paid for share reinsurance, calculated on the monthly pro rata basis as of the effective time and date of this Exhibit; and B - 8 GENERAL REINSURANCE CORPORATION 39 (2) 6.78% of the Company's unearned premium on all other classes of business reinsured hereunder (except automobile physical damage), after deducting that portion, if any, paid for share reinsurance, calculated on the monthly pro rata basis as of the effective time and date of this Exhibit. (b) With respect to business becoming effective at and after the effective time and date of this Exhibit: (1) 0.20% of the Company's written premium on homeowners multiple peril (Section I), after deducting that portion, if any, paid for share reinsurance; and (2) 6.78% of the Company's written premium on all other classes of business reinsured hereunder (except automobile physical damage), after deducting that portion, if any, paid for share reinsurance. The reinsurance premiums set forth above are subject to a fixed commission allowance of 50%. For the purpose of the calculation of the reinsurance premium for business owners policies reinsured hereunder, the reinsurance rate above shall be applied against 40% of the business owners policy written premium. SECTION 9 - CONTINGENT COMMISSION The Reinsurer's underwriting experience under this Exhibit and under the First Excess Cover and the Combination Cover of Exhibit A to this Agreement shall be combined for the purposes of calculating the contingent commission in accordance with the provisions of the section entitled CONTINGENT COMMISSION of said Exhibit A. SECTION 10 - MORTGAGEE REINSURANCE ENDORSEMENTS AND BLANKET MORTGAGEE REINSURANCE CERTIFICATES To induce a mortgagee named in a policy or policies of the Company to accept such policy or policies, the Company and the Reinsurer may agree to name such mortgagee as a third party beneficiary in a Mortgagee Reinsurance Endorsement or Blanket Mortgagee Reinsurance Certificate made a part of this Agreement. For each such Mortgagee Reinsurance Endorsement or Blanket Mortgagee Rein- B - 9 GENERAL REINSURANCE CORPORATION 40 surance Certificate so issued, the Company shall indemnify the Reinsurer for any and all liability, loss, cost, or expense the Reinsurer may sustain or incur in excess of its obligations under this Agreement by reason of the issuance of such Mortgagee Reinsurance Endorsement or such Blanket Mortgagee Reinsurance Certificate. If the Reinsurer becomes liable to a mortgagee under any Mortgagee Reinsurance Endorsement or under any Blanket Mortgagee Reinsurance Certificate, the Reinsurer shall, to the extent of its liability: (a) Benefit pro-rata in reductions of the Company's loss by salvage, subrogation, compromise, or otherwise. (b) Be automatically subrogated to all of the mortgagee's rights against the Company under the policy. (c) Be completely discharged from its obligation to make any payment to the Company under this Agreement and be entitled to set off against any amount due from the Reinsurer to the Company under this or any other agreement for any amounts for which the Reinsurer would not be liable except for the existence of such Mortgagee Reinsurance Endorsement or such Blanket Mortgagee Reinsurance Certificate. The Reinsurer shall have the right to cancel any Mortgagee Reinsurance Endorsement or any Blanket Mortgagee Reinsurance Certificate by notice to the mortgagee. SECTION 11 - REPORTS AND REMITTANCES (a) REINSURANCE PREMIUM Within 25 days after the commencement of this Exhibit, the Company shall render to the Reinsurer a report of the reinsurance premium with respect to the business of the Company in force at the effective time and date of this Exhibit, summarizing the reinsurance premium by line of insurance, by term, and by month and year of expiration; and the amount due the Reinsurer shall be remitted within 60 days after the commencement of this Exhibit. B - 10 GENERAL REINSURANCE CORPORATION 41 Within 25 days after the close of each month, the Company shall render to the Reinsurer a report of the reinsurance premium for the month with respect to business of the Company written during the month, summarizing the reinsurance premium by line of insurance; and the amount due either party shall be remitted within 60 days after the close of the month. Within 25 days after the close of each calendar quarter, the Company shall render to the Reinsurer a report of the reinsurance premium unearned by line of insurance and the contribution for the quarter to the reinsurance premium in force by line of insurance, by term, and by month and year of expiration. (b) CLAIMS AND LOSSES The Company shall report promptly to the Reinsurer each claim or loss which, in the Company's opinion, may involve the reinsurance afforded by this Exhibit. The Company shall advise the Reinsurer of the estimated amount of net loss in connection with each such claim or loss and of any subsequent changes in such estimates. Upon receipt of a definitive statement of net loss from the Company, the Reinsurer shall promptly pay to the Company the Reinsurer's portion of net loss and the Reinsurer's portion of adjustment expense, if any. Any subsequent changes in the amount of net loss shall be reported by the Company to the Reinsurer and the amount due either party shall be remitted promptly. (c) P.C.S. CATASTROPHE BULLETINS The Company shall furnish to the Reinsurer, upon request, the following information with respect to each catastrophe set forth in the Catastrophe Bulletins published by the Property Claim Services: (1) The preliminary estimates of the amount recoverable from the Reinsurer; (2) The Reinsurer's portion of claims, losses and adjustment expenses paid less salvage recovered during each calendar quarter; (3) The Reinsurer's portion of reserves for claims, losses, and adjustment expenses at the end of each calendar quarter. B - 11 GENERAL REINSURANCE CORPORATION 42 (d) GENERAL In addition to the reports required in (a), (b), and (c) above, the Company shall furnish such other information as may be required by the Reinsurer for the completion of the Reinsurer's quarterly and annual statements and internal records. All reports shall be rendered in forms acceptable to the Company and the Reinsurer. SECTION 12 - COMMENCEMENT AND TERMINATION This Exhibit shall apply to new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 1995, and to policies of the Company in force at 12:01 A.M., January 1, 1995, with respect to claims or losses resulting from occurrences taking place at and after the aforesaid time and date. This Exhibit may be terminated by either party sending to the other, by registered mail to its principal office, notice stating the time and date when, not less than 90 days after the date of mailing of such notice, termination shall be effective. Upon termination of this Exhibit, the liability of the Reinsurer with respect to policies in force at the time and date of termination shall continue until the expiration, cancellation, or next anniversary date, not to exceed one year, of each such policy of the Company, whichever occurs first. When all reinsurance is expired or terminated, the Reinsurer shall return to the Company the reinsurance premium unearned, if any, calculated on the monthly pro rata basis, less the commission previously allowed thereon. B - 12 Agreement No. 8009 GENERAL REINSURANCE CORPORATION 43 EXHIBIT C Attached to and made a part of AGREEMENT OF REINSURANCE NO. 8009 SECOND EXCESS OF LOSS REINSURANCE of CASUALTY BUSINESS - -------------------------------------------------------------------------------- SECTION 1 - LIABILITY OF THE REINSURER The Reinsurer shall pay to the Company, with respect to casualty business of the Company, the amount of net loss each occurrence in excess of the sum of the Company Retention and Underlying Reinsurance but not exceeding the Limit of Liability of the Reinsurer as set forth in the Schedule of Reinsurance. However, as respects the workers' compensation business reinsured hereunder, for purposes of determining the amount of net loss sustained by the Company, it is deemed that the amount of net loss for any one claimant shall not exceed $2,500,000. SCHEDULE OF REINSURANCE
- ---------------------------------------------------------------------------------------------- Company Retention and Limit of Liability Class of Business Underlying Reinsurance of the Reinsurer - ---------------------------------------------------------------------------------------------- EACH OCCURRENCE EACH OCCURRENCE Casualty Business $5,000,000 $5,000,000 - ----------------------------------------------------------------------------------------------
SECTION 2 - ALLOCATION OF ADJUSTMENT EXPENSE In addition to payments for its share of net loss, the Reinsurer shall pay to the Company a share of adjustment expenses proportionate to the Reinsurer's share of net loss. Should the amount of a judgment be reduced by any process or should a judgment be reversed outright, the adjustment expenses incurred in securing such reduction or reversal GENERAL REINSURANCE CORPORATION 44 shall be apportioned between the Company and the Reinsurer in the ratio that each party benefits from such reduction or reversal. SECTION 3 - LOSS IN EXCESS OF POLICY LIMITS Notwithstanding the provisions of the article entitled MANAGEMENT OF CLAIMS AND LOSSES, if a third party claimant is awarded an amount in excess of the Company's policy limit and, as a result of the Company's failure to settle within the policy limit or of the Company's alleged or actual negligence or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action, an action is taken by the insured or assignee which could impose legal liability on the Company for an amount in excess of the Company's policy limit, the Reinsurer shall pay to the Company 90% of only that portion of the award made to the third party claimant which is in excess of the greater of the Company's policy limit or the Company Retention. The liability of the Reinsurer with respect to the entire amount of net loss, including the loss in excess of the Company's policy limit, shall not exceed the Limit of Liability of the Reinsurer as set forth in the section entitled LIABILITY OF THE REINSURER. However, this Section shall not apply where the loss has been incurred due to the fraud of a member of the Board of Directors, a corporate officer of the Company, or any other employee of the Company, acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense, or settlement of any claim covered hereunder. Recoveries from any form of insurance or reinsurance which protects the Company against claims which are the subject matter of this Section shall inure to the benefit of the Reinsurer and shall be deducted to arrive at the amount of the Company's net loss. C - 2 GENERAL REINSURANCE CORPORATION 45 SECTION 4 - EXTRA CONTRACTUAL OBLIGATIONS Notwithstanding the provisions of the article entitled MANAGEMENT OF CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, 90% of the extra contractual obligation shall be added to the Company's net loss from the occurrence and the total shall be allocated in accordance with the section entitled LIABILITY OF THE REINSURER. For purposes of this Section, the term "extra contractual obligation" shall mean a loss which the Company is legally liable to pay, which is not covered under any other provision of this Exhibit and which arises from the Company's handling of any claim on the policies reinsured hereunder which have limits of liability greater than the Company Retention. The date on which an extra contractual obligation is incurred by the Company shall be deemed, in all circumstances, to be the date of the original occurrence. This Section shall not apply where the extra contractual obligation has been incurred due to the fraud or criminal conduct of a member of the Board of Directors, a corporate officer of the Company, or any other employee of the Company, acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the investigation, defense or settlement of any claim covered hereunder. Any insurance or reinsurance, whether collectible or not, which indemnifies or protects the Company against claims which are the subject matter of this Section and any contribution, subrogation, or recovery shall inure to the benefit of the Reinsurer and shall be deducted to arrive at the amount of the Company's net loss. SECTION 5 - COMPANY POLICY AMOUNTS For the purpose of determining the Company Retention and the Limits of Liability of the Reinsurer, the limits of liability of the Company with respect to any one policy shall be deemed not to exceed: (a) Automobile Bodily Injury Liability $1,000,000 each person $1,000,000 each occurrence
C - 3 GENERAL REINSURANCE CORPORATION 46 (b) Automobile Property Damage Liability $1,000,000 each occurrence (c) Automobile Liability Combined Single Limit $1,000,000 each occurrence (d) Uninsured Motorists Coverage $1,000,000 each person $1,000,000 each occurrence (e) Personal Injury Protection Coverage Statutory Limits (f) Other Bodily Injury Liability $1,000,000 each occurrence (g) Other Property Damage Liability $1,000,000 each occurrence (h) Other Liability Combined Single Limit $1,000,000 each occurrence (i) Section II Liability under Commercial Multiple Peril $1,000,000 each occurrence (j) Section II Liability under Businessowners $1,000,000 each occurrence (k) Section II Liability under Homeowners Multiple Peril $1,000,000 each occurrence (l) Section II Liability under Farmowners $1,000,000 each occurrence Multiple Peril (m) Employers' Liability (1) In All States with Statutory Limits Statutory Limits (2) In All Other States (i) Bodily Injury by Accident $1,000,000 each accident (ii) Bodily Injury by Disease $1,000,000 policy limit (iii) Bodily Injury by Disease $1,000,000 each employee
SECTION 6 - DEFINITIONS (a) CASUALTY BUSINESS This term shall mean insurance which is classified in the NAIC form of annual statement as Farmowners Multiple Peril (Section II), Homeowners Multiple Peril (Section II), Commercial Multiple Peril (Sections II and III, including Section II of Business Owners), Workers' Compensation, Other Liability, Automobile Liability, and Automobile Personal C - 4 GENERAL REINSURANCE CORPORATION 47 Injury Protection, and described in the manuals of the Insurance Services Office, or the standard workers' compensation form of policy, as respects losses occurring in the United States of America, its territories and possessions, and Canada. (b) COMPANY RETENTION This term shall mean the amount the Company shall retain for its own account; however, this requirement shall be satisfied if this amount is retained by the Company or its affiliated companies under common management or common ownership. (c) NET LOSS This term shall mean all payments by the Company in settlement of claims or losses, payment of benefits, or satisfaction of judgments or awards after deduction of salvage and after deduction of amounts due from all other reinsurance, except underlying excess of loss reinsurance afforded by Exhibit A to this Agreement, whether collectible or not. This term shall not include adjustment expense. If the Company becomes insolvent, this definition shall be modified to the extent set forth in the article entitled INSOLVENCY OF THE COMPANY. (d) ADJUSTMENT EXPENSE This term shall mean expenditures by the Company, other than for office expenses and for the salaries and expenses of employees of the Company or of any subsidiary or related or wholly owned company of the Company, made in connection with the disposition of a claim, loss, or legal proceeding including investigation, negotiation, and legal expenses, court costs; statutory penalties; prejudgment interest or delayed damages; and interest on any judgment or award. (e) PREJUDGMENT INTEREST OR DELAYED DAMAGES This term shall mean interest or damages added to a settlement, verdict, award, or judgment based on the amount of time prior to the settlement, verdict, award, or judgment whether or not made part of the settlement, verdict, award, or judgment. (f) OCCURRENCE This term shall mean each accident or occurrence or series of accidents or occurrences arising out of one event regardless of the number of policies involved, and as respects workers; compensation and employers C - 5 GENERAL REINSURANCE CORPORATION 48 liability policies, regardless of the number of employees or employers involved, except as modified below: (1) As respects exposures reinsured hereunder other than occupational and other disease or cumulative injury under workers' compensation policies, all bodily injury or property damage arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one occurrence. The date of occurrence shall be deemed to be the following: (i) As respects a loss involving one or more policies written on an occurrence basis, the date on which bodily injury or property damage occurs. (ii) As respects a loss involving one or more policies written on a claims-made basis, the date when notice of claim is received and recorded by the Company or the insured, whichever comes first, and any related claims reported subsequent to such date shall be included in such loss. However, if notice of claim is received and recorded by the Company or the insured during an Extended Reporting Period, the date of occurrence shall be deemed to be the last day of the policy period. (iii) As respects a loss involving one or more policies written on an occurrence basis and one or more policies written on a claims-made basis, the date on which bodily injury or property damage occurs, and any related claims reported subsequent to such date shall be included in such loss whether they are covered under occurrence or claims-made policies. (2) As respects an occupational or other disease or cumulative injury under workers' compensation or employers' liability policies for which the employer is liable: (i) Which arises from a specific sudden and accidental event limited in time and place, such occupational or other disease suffered by one or more employees of one or more employers shall be deemed to be an occurrence within the meaning of this Exhibit and the date of occurrence shall be deemed to be the date of the sudden and accidental event. C - 6 GENERAL REINSURANCE CORPORATION 49 (ii) Which does not arise from a specific sudden and accidental event limited in time and place, such occupational or other disease or cumulative injury shall be deemed to be an occurrence within the meaning of this Exhibit, and the date of occurrence shall be deemed to be the date of the beginning of the disability for which compensation is payable if the case is compensable under the Workers' Compensation law; or the date that disability due to said disease actually began if the case is not compensable under the Workers' Compensation law. Each case of an employee contracting such occupational or other disease or cumulative injury for which the employer insured by the Company is held liable shall be considered a separate occurrence regardless of the date of loss. SECTION 7 - EXCLUSIONS This Exhibit shall not apply to: (a) Business accepted by the Company as reinsurance from other insurers other than its affiliates; (b) Nuclear incident per the Nuclear Incident Exclusion Clause - Liability - Reinsurance attached hereto; (c) Policies covering liability of any insurer or reinsurer for its acts or omissions in the negotiation, settlement, or defense of claims or any act or omission in dealings with its policyholders; (d) Any loss or liability accruing to the Company directly or indirectly from any insurance written by or through any pool or association including pools or associations in which membership by the Company is required under any statutes or regulations and including automobile assigned risk pools and voluntary or involuntary market assistance programs; however, this exclusion shall not apply to individual automobile assigned risks assigned to the Company; (e) Any liability of the Company arising from its participation or membership in any insolvency fund; (f) Any loss or damage which is occasioned by war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public authority; however, this exclusion shall not apply to workers' C - 7 GENERAL REINSURANCE CORPORATION 50 compensation and employers liability nor to any policy which contains a standard war exclusion; (g) Business written on a co-indemnity basis not controlled by the Company; (h) Business written to apply in excess of a deductible or self insured amount of more than $5,000 or business written to apply specifically in excess over underlying insurance; (i) Automobile liability insurance relating to the ownership, maintenance, or use of: (1) Emergency vehicles including police and fire department vehicles; however, this exclusion shall not apply to renewal business; (2) Automobiles used in organized speed contests; (3) Automobile leasing or rental; (4) Commercial automobiles, as defined in the manuals of the Insurance Services Office, which customarily operate beyond a 300 mile radius; (5) Commercial automobiles over 80,000 lbs. gross vehicle weight or gross combination weight as defined in the manuals of the Insurance Services Office; however, this exclusion shall not apply to renewal business; (6) Motorcycles, motorized scooters, motorized bicycles, power cycles, and any similar motorized vehicles; (7) Public automobiles, other than school or church buses, as defined in the manuals of the Insurance Services Office; (8) Trucks used for transporting explosives, munitions, corrosives, flammable and non-flammable gas, flammable liquid, poison, radioactive materials and hazardous waste; (j) Liability insurance written by the aviation underwriting unit of the Company, howsoever styled; (k) Liability insurance issued to any state or governmental agency or any political subdivision whatsoever; however, this exclusion shall not apply to school districts and school boards nor to renewal business. This C - 8 GENERAL REINSURANCE CORPORATION 51 exclusion shall also not apply to Owners and Contractors Protective policies issued to any such entities; (l) Liability insurance relating to premises or operations involving: (1) Aircraft or airports, as respects coverage for all liability arising out of the ownership, maintenance, or use of any aircraft or flight operations; (2) Amusement parks or devices, carnivals or circuses, sports or other entertainment events, arenas, grandstands, or stadiums; (3) Manufacturing, packing, handling, shipping, or storage of explosives, ammunitions, fuses, arms, magnesium, fireworks, nitroglycerine, celluloid, pyroxylin or explosive substances intended for use as an explosive; however, this exclusion shall not apply to incidental handling and storage in connection with the sale of such substances; (4) Gas or public utility companies, gas or public utility works, or gas lease operations; (5) Production, refining, handling, shipping, or storage of natural or artificial fuel gasses, synthetic or coal or shale based fuel, butane, propane, gasoline, or liquefied petroleum gas; however, this exclusion shall not apply to gasoline service stations, convenience stores and fuel oil dealers; (6) Oil or gas pipelines, wells, or drilling operations; (7) Railroad operations; (8) Ship building, boat manufacturing, ship repair yards, dry docks, stevedoring, or watercraft; however, this exclusion shall not apply to watercraft commonly insured under homeowners policies; (9) Underground work, including underground mining and quarrying, tunneling, and subway construction; (10) Off-shore and subaqueous work; (11) Wrecking or demolition of structures over 3 stories in height, or marine wrecking; C - 9 GENERAL REINSURANCE CORPORATION 52 (12) Chemical manufacturing; (m) Liability insurance relating to products or completed operations involving the manufacture or importation of: (1) Cosmetics, hair, and skin products; (2) Drugs, pharmaceuticals, and agricultural chemicals; (3) Aircraft, aircraft parts, or aircraft engines, all motorized vehicles, or mobile equipment; (4) Heavy machinery and equipment, home power tools, or oil drilling equipment; (n) Insurance covering damages claimed for the withdrawal, inspection, repair, replacement, or loss of use of the insured's products or of any property of which such products form a part, or if such products or property are withdrawn from the market or from use because of any known or suspected defect or deficiency therein; (o) Malpractice insurance, directors and officers liability insurance, or any other form of errors and omissions or professional liability insurance; however, this exclusion shall not apply to druggists operating outside the State of Florida, funeral directors, veterinarians', beauty and barber shops', hearing aid service specialists', cemetery operators' liability, opticians', or printers liability business, nor to employee benefits liability business; (p) Insurance written for governmental bodies to afford protection against liability arising out of riot, civil commotion, or mob action or out of any act or omission in connection with the prevention or suppression of any riot, civil commotion, or mob action; (q) Liability insurance relating to or involving satellites, spacecraft, and launch vehicles, including cargo and freight carried therein, in all phases of operation (including but not limited to manufacturing, transit, pre-launch, launch and in-orbit); (r) Pollution liability insurance or environmental impairment liability, howsoever styled; (s) Pollution under any commercial multiple peril policy, farmowners multiple peril policy, farm liability policy or any other commercial other liability policy written by the Company which does not contain the pollution C - 10 GENERAL REINSURANCE CORPORATION 53 exclusion set forth in ISO Commercial General Liability Form CG 00 01 (Ed. 11/88) or as subsequently amended or under any garage liability policy written by the Company which does not contain the pollution exclusion set forth in ISO Garage Coverage Form CA 00 05 (Ed. 1/87) or as subsequently amended; however, this exclusion does not apply to any risk located in a jurisdiction which has not approved the Insurance Services Office exclusion or where other regulatory constraints prohibit the Company from attaching such endorsement. If the Company elects to file an endorsement independent of ISO, such endorsement will be deemed a suitable substitute provided the Company has submitted the wording to the Reinsurer and received the Reinsurer's prior approval. (t) Workers' compensation and employers' liability insurance with respect to operations principally involving: (1) Aircraft flight and ground operations or operations in which the flying hazard is a major part; (2) Amusement parks or devices, exhibitions (including fireworks), carnivals or circuses, sports events and/or participants; (3) Manufacturing, packing, handling, shipping, or storage of explosives, substances intended for use as an explosive, ammunitions, fuses, arms, magnesium, propellant charges, detonating devices, fireworks, nitroglycerine, celluloid, or pyroxylin; however, this exclusion shall not a0ply to the incidental packing, handling or storage of same in connection with the sale of such substances; (4) Gas companies, dealers, or distributors, except those in the gasoline service station, convenience store or fuel oil dealer business; oil or gas operators, lease operators or contractors; oil or gas well works; oil or gas pipeline construction or operations; oil rig and derrick work; onshore or offshore gas or oil drilling operations; (5) Manufacturing, packing, handling, shipping or storage of natural gas or artificial fuel gasses, butane, propane, gasoline, or liquefied petroleum gas; however, this exclusion shall not apply to the incidental packing, handling or storage of same in connection with the sale of such substances; (6) Railroad operation or construction; C - 11 GENERAL REINSURANCE CORPORATION 54 (7) Maritime or federal employments; steamship lines, agencies, or stevedoring, navigation or operation of vessels; operation of drydocks; and including all United States Longshoremen's and Harbor Workers' exposures except as endorsed on an if any basis; (8) Sewer, subway, or water main construction, shaft sinking, or tunnelling; (9) Wrecking or demolition of buildings, structures, or vessels; (10) Underground mining, strip mining, or quarrying; (11) Subaqueous work; (12) Caisson or coffer dam work; dam, dike, lock, or revetment construction; (13) Chemical manufacturing; (14) Nuclear Regulatory Commission projects or operations conducted under license from the Nuclear Regulatory Commission; (15) Asbestos removal; (16) Firefighters and police officers. If the Company provides insurance for an insured with respect to the ownership, maintenance, or use of items listed in exclusions (i)(l) through (i)(7) and if such ownership maintenance, or use constitutes only a minor and incidental part of the total ownership, maintenance, or use of such items of the insured, such exclusion(s) shall not apply. If the Company provides insurance for an insured with respect to any premises, operations, products, or completed operations listed in exclusions (l) and (m), except exclusions (l)(3), and (l)(4), and if such premises, operations, products, or completed operations constitute only a minor incidental part of the total premises, operations, products, or completed operations of the insured, such exclusion(s) shall not apply. If the Company is bound, without the knowledge of and contrary to the instructions of the Company's supervisory underwriting personnel, on any business falling within the scope of C - 12 GENERAL REINSURANCE CORPORATION 55 one or more of the exclusions set forth in this Section, these exclusions, except (a) through (g), (l)(3), (l)(4), (n) through (r), (t)(3) and (t)(4) shall be suspended with respect to such business until 30 days after an underwriting supervisor of the Company acquires knowledge of such business. SECTION 8 - REINSURANCE PREMIUM The Company shall pay to the Reinsurer 0.22% of the subject premiums earned by the Company on the business reinsured hereunder, subject to an annual minimum reinsurance premium of $161,500 and an annual deposit reinsurance premium of $202,000. The term "subject premiums earned" shall mean the Company's gross earned premium, less earned premiums on ceded reinsurance which inures to the benefit of the Reinsurer. Such subject premiums earned shall include 15% of the total homeowners multiple peril policies and 60% of the special multiple peril policies and businessowners policies. SECTION 9 - REPORTS AND REMITTANCES (a) REINSURANCE PREMIUM The Company shall pay to the Reinsurer one quarter of the annual deposit reinsurance premium stipulated in the section entitled REINSURANCE PREMIUM on the first day of each calendar quarter. On or before March 31, 1996, and each subsequent March 31st, the Company shall render to the Reinsurer a report of the subject premiums earned by the Company on the business reinsured hereunder during the prior calendar year. The Company shall calculate the reinsurance premium thereon, shall balance such amount against the annual deposit reinsurance premium previously paid, and the amount due either party, subject to the annual minimum reinsurance premium, shall be remitted promptly. (b) CLAIMS AND LOSSES The Company shall report promptly to the Reinsurer each occurrence which in the Company's opinion may involve the reinsurance afforded by C - 13 GENERAL REINSURANCE CORPORATION 56 this Exhibit, and shall also report all cases of serious injury as set forth below which, regardless of considerations of liability or coverage, might involve this reinsurance, including but not limited to the following: (1) Cord injury - paraplegia, quadriplegia; (2) Amputations - requiring a prosthesis; (3) Brain damage affecting mentality or central nervous system - such as permanent disorientation, behavior disorder, personality change, seizures, motor deficit, inability to speak (aphasia), hemiplegia or unconsciousness (comatose); (4) Blindness; (5) Burns - involving over 10% of body with third degree or 30% of body with second degree; (6) Multiple fractures - involving more than one member or non-union; (7) Fracture of both heel bones (fractured bilateral os calcis); (8) Nerve damage causing paralysis and loss of sensation in arm and hand (brachial plexus nerve damage); (9) Massive internal injuries affecting body organs; (10) Injury to nerves at base of spinal canal (Cauda Equina) or any other back injury resulting in incontinence of bowel and/or bladder; (11) Fatalities; (12) Any other serious injury which, in the judgment of the Company, might involve the Reinsurer. The Company shall advise the Reinsurer of the estimated amount of net loss and adjustment expense in connection with each such claim or loss and of any subsequent changes in such estimates. Upon receipt of a definitive statement of net loss and adjustment expense from the Company, the Reinsurer shall pay promptly to the Company the Reinsurer's portion of net loss and the Reinsurer's portion of adjustment expense, if any. Any subsequent changes shall be reported by the C - 14 GENERAL REINSURANCE CORPORATION 57 Company to the Reinsurer and the amount due either party shall be remitted promptly. (c) GENERAL In addition to the reports required in (a) and (b) above, the Company shall furnish such other information as may be required by the Reinsurer for the completion of the Reinsurer's quarterly and annual statements and internal records. All reports shall be rendered in forms acceptable to the Company and the Reinsurer. SECTION 10 - COMMENCEMENT AND TERMINATION As respects policies written on a claims-made basis, this Exhibit shall apply to claims received and recorded by the Company or the insured at and after 12:01 A.M., January 1, 1995, provided that each such policy includes a specific retroactive date and the occurrence which results in each such claim takes place on or after such retroactive date, and provided further that such retroactive date is on or after the inception date of the first of one or more consecutive claims-made policies issued by the Company or another insurer(s) to the named insured. However, this Exhibit shall not apply to claims received and recorded by the Company or the insured during any Extended Reporting Period in force at such time and date. As respects policies written on an occurrence basis, this Exhibit shall apply to claims and losses resulting from occurrences taking place at and after 12:01 A.M., January 1, 1995. The Exhibit may be terminated by either party sending to the other, by registered mail to its principal office, notice stating the time and date when, not less than 90 days after the date of mailing of such notice, termination shall be effective. As respects policies written on a claims-made basis, the Reinsurer shall not be liable for claims received and recorded by the Company or the insured at and after the effective time and date of termination, unless such C - 15 GENERAL REINSURANCE CORPORATION 58 claim is received and recorded by the Company or the insured during an Extended Reporting Period in force at the time and date of termination. As respects policies written on an occurrence basis, the Reinsurer shall not be liable for claims and losses resulting from occurrences taking place at and after the effective time and date of termination. SECTION 11 - REINSTATEMENT The limit of liability of the Reinsurer under this Exhibit with respect to each occurrence shall be reduced by an amount equal to the amount of liability paid by the Reinsurer, but that part of the liability of the Reinsurer that is so reduced shall be automatically reinstated, subject to the maximum payment of $10,000,000 with respect to all occurrences taking place during each calendar year that this Exhibit is in effect. In consideration of this automatic reinstatement, the Company shall pay to the Reinsurer for each amount reinstated an additional reinsurance premium which shall be the product of the annual reinsurance premium set forth in the section entitled REINSURANCE PREMIUM and the amount so reinstated divided by $5,000,000. The reinsurance premium so developed for each amount reinstated shall be in addition to the reinsurance premium set forth in the section entitled REINSURANCE PREMIUM, and shall be paid by the Company immediately following loss payment by the Reinsurer. If at the time of loss payment, the adjusted annual reinsurance premium is unknown, calculation of such additional reinsurance premium shall be based upon the annual minimum and deposit reinsurance premium subject to adjustment when the adjusted annual reinsurance premium is established. C - 16 Agreement No. 8009 GENERAL REINSURANCE CORPORATION 59 EXHIBIT D Attached to and made a part of AGREEMENT OF REINSURANCE NO. 8009 QUOTA SHARE AND EXCESS OF LOSS REINSURANCE of COMMERCIAL UMBRELLA AND EXCESS LIABILITY BUSINESS - -------------------------------------------------------------------------------- SECTION 1 - LIABILITY OF THE REINSURER The Reinsurer shall pay to the Company, with respect to each commercial umbrella or excess liability policy of the Company, a percentage of each net loss sustained by the Company, but not exceeding the Limit of Liability of the Reinsurer as set forth in the Schedule of Reinsurance. SCHEDULE OF REINSURANCE
- ---------------------------------------------------------------------------------------------------- Limit of Liability Policy Limit Company Retention of the Reinsurer - ---------------------------------------------------------------------------------------------------- $1,000,000 each occurrence/ 5% of the Policy Limit 95% of the Policy Limit $1,000,000 aggregate (where applicable) Above $1,000,000 each 5% of the first $1,000,000 95% of the first $1,000,000 occurrence/$1,000,000 each occurrence/$1,000,000 each occurrence/$1,000,000 aggregate (where applicable) aggregate (where applicable) aggregate (where applicable); subject to the provisions and of the section entitled COMPANY POLICY 100% of the difference be- AMOUNTS tween the Policy Limit and $1,000,000 each occurrence/ $1,000,000 aggregate (where applicable) - ----------------------------------------------------------------------------------------------------
With respect to uninsured motorists or underinsured motorists net losses, the liability of the Reinsurer and the Company Retention shall apply to the same extent as the policy limit is made to apply. GENERAL REINSURANCE CORPORATION 60 SECTION 2 - ALLOCATION OF ADJUSTMENT EXPENSE In addition to payments for its share of net loss, the Reinsurer shall pay to the Company a share of adjustment expense proportionate to the Reinsurer's share of net loss. If there is no net loss payment, the Reinsurer shall pay to the Company 95% of adjustment expense. SECTION 3 - EXTRA CONTRACTUAL OBLIGATIONS Notwithstanding the provisions of the article entitled MANAGEMENT OF CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, the Reinsurer shall afford additional reinsurance to the Company for 90% of that portion of the extra contractual obligation which is in excess of the Company Retention, subject to the conditions of the following paragraphs. The liability of the Reinsurer with respect to each extra contractual obligation shall not exceed 90% of $1,000,000. For purposes of this Section, the term "extra contractual obligation" shall mean a loss which the Company is legally liable to pay, including a loss in excess of the Company's policy limit, which is not covered under any other provision of this Exhibit and which arises from the Company's handling of any claim on the policies reinsured hereunder, provided such claim is not covered by underlying insurance or the applicable aggregate limit of underlying insurance is exhausted. The date on which an extra contractual obligation is incurred by the Company shall be deemed, in all circumstances, to be the date of the original occurrence. This Section shall not apply where the extra contractual obligation has been incurred due to the fraud or criminal conduct of a member of the Board of Directors, a corporate officer of the Company, or any other employee of the Company, acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the investigation, defense or settlement of any claim covered hereunder. D - 2 GENERAL REINSURANCE CORPORATION 61 Any insurance or reinsurance, whether collectible or not, which indemnifies or protects the Company against claims which are the subject matter of this Section and any contribution, subrogation, or recovery shall inure to the benefit of the Reinsurer and shall be deducted to arrive at the amount of the Company's net loss. SECTION 4 - COMPANY POLICY AMOUNTS For the purpose of determining the Company Retention and Limit of Liability of the Reinsurer, the limit of liability of the Company with respect to any one policy shall be deemed not to exceed $5,000,000 each occurrence/$5,000,000 aggregate (where applicable). SECTION 5 - DEFINITIONS (a) COMMERCIAL UMBRELLA AND EXCESS LIABILITY BUSINESS This term shall mean insurance which is classified by the Company as commercial umbrella or excess liability business with respect to insureds domiciled in the United States of America, its territories and possessions, or in Canada. (b) COMPANY RETENTION This term shall mean the amount the Company shall retain for its own account; however, this requirement shall be satisfied if this amount is retained by the Company or its affiliated companies under common management or common ownership. (c) NET LOSS This term shall mean all payments by the Company in settlement of claims or losses, payment of benefits, or satisfaction of judgments or awards after deduction of subrogation and other recoveries and after deduction of amounts due from all other reinsurance, whether collectible or not. This term shall not include adjustment expense. If the Company becomes insolvent, this definition shall be modified to the extent set forth in the article entitled INSOLVENCY OF THE COMPANY. D - 3 GENERAL REINSURANCE CORPORATION 62 (d) ADJUSTMENT EXPENSE This term shall mean expenditures by the Company in the direct defense of claims and as allocated to an individual claim or loss, other than for office expenses and for the salaries and expenses of employees of the Company or of any subsidiary or related or wholly owned company of the Company, made in connection with the disposition of a claim, loss, or legal proceeding including investigation, negotiation, and legal expenses, court costs; statutory penalties; prejudgment interest or delayed damages; and interest on any judgment or award. (e) PREJUDGMENT INTEREST OR DELAYED DAMAGES This term shall mean interest or damages added to a settlement, verdict, award, or judgment based on the amount of time prior to the settlement, verdict, award, or judgment whether or not made part of the settlement, verdict, award, or judgment. SECTION 6 - EXCLUSIONS This Exhibit shall not apply to: (a) Business accepted by the Company as reinsurance from other insurers other than its affiliates; (b) Nuclear incident per the Nuclear Incident Exclusion Clause - Liability - Reinsurance attached hereto; (c) Any loss or liability accruing to the Company directly or indirectly from any insurance written by or through any pool or association including pools and associations in which membership by the Company is required under any statutes or regulations; (d) Any liability of the Company arising from its participation or membership in any insolvency fund; (e) Any loss or damage which is occasioned by war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public authority; however, this exclusion shall not apply to any policy which contains a standard war exclusion; (f) Business written on a co-indemnity basis not controlled by the Company; D - 4 GENERAL REINSURANCE CORPORATION 63 (g) Liability of the Company arising out of the following coverages and exposures: (1) Aviation; however, this exclusion shall not apply to liability assumed by the insured under any insured contract for the ownership, maintenance or use of aircraft; (2) Environmental impairment liability; (h) Malpractice insurance, directors and officers liability insurance, or any other form of errors and omissions or professional liability insurance; however, this exclusion shall not apply to druggists operating outside the State of Florida, funeral directors, veterinarians', beauty and barber shops', hearing aid service specialists', cemetery operators' liability, opticians', or printers liability business, nor to employee benefits liability business; (i) Automobile liability insurance relating to the ownership, maintenance, or use of emergency vehicles including police and fire department vehicles; however, this exclusion shall not apply to renewal business; (j) Liability insurance relating to premises or operations involving: (1) Camps, child care facilities and private schools; however, this exclusion shall not apply if liability for child molestation is excluded from the policy; (2) Fumigating and exterminating; (3) Pile driving, tunneling, shaft sinking, subway and dam construction; (4) Production, refining, handling, shipping, or storage of natural or artificial fuel gasses, synthetic or coal or shale based fuel, butane, propane, gasoline, or liquefied petroleum gas; however, this exclusion shall not apply to gasoline service stations; (5) Turnkey contractors; (6) Wrecking or demolition; (k) Liability insurance relating to products or completed operations involving the manufacture or importation of: (1) Computers, including peripheral equipment; D - 5 GENERAL REINSURANCE CORPORATION 64 (2) Seed; (l) Advertising or personal injury involving: (1) Advertising agencies, publishers and broadcasters; (2) Financial or investment institutions, including banks; (m) Liability insurance, including employers' liability, relating to premises or operations involving gunsmithing, and products or completed operations involving the manufacturing or importation of guns; (n) Pollution under any commercial umbrella or excess liability policy written by the Company which does not contain the provisions of the pollution exclusion set forth in ISO Commercial General Liability Form CG 00 01 (Ed. 11/88) or as subsequently amended; however, this exclusion does not apply to any risk located in a jurisdiction which has not approved the Insurance Services Office exclusion or where other regulatory constraints prohibit the Company from implementing such exclusion. If the Company elects to implement an exclusion different from that of ISO, such exclusion will be deemed a suitable substitute provided the Company has submitted the wording to the Reinsurer and received the Reinsurer's prior approval; (o) Bodily injury (including occupational disease) and/or property damage liability arising from the manufacture, removal, installation, storage, mining, handling or transportation of asbestos if the insured's operation, at the time of policy issuance, presents known and/or generally recognizable asbestos exposures; however, this exclusion shall not apply to the removal, installation, storage, handling or transportation of asbestos if such removal, installation, storage, handling or transportation is incidental to the insured's overall operations. The term "incidental", as used in this exclusion, is intended to recognize the fact that certain insureds (such as, but not limited to, plumbing and carpentry contractors, etc.) will infrequently, but regularly, encounter asbestos within the scope of their operations - even though their operations, as such, do not involve the manufacture, removal, installation, storage, mining, handling, or transportation of asbestos. This exclusion does not apply to such "incidental" operations; (p) Business excluded under the Company's Commercial Umbrella Underwriting Guidelines. D - 6 GENERAL REINSURANCE CORPORATION 65 If the Company provides commercial umbrella or excess liability insurance for an insured for any vehicles listed in (i) above and the ownership, maintenance, or use of any such vehicle is only minor and incidental, such exclusion shall not apply. If the Company provides commercial umbrella or excess liability insurance for an insured with respect to any premises, operations, or products listed in (j), (k), and (n) which is a minor and incidental part of the total premises, operations, or products of the insured, such exclusion(s) shall not apply. If an insured of the Company on or after the attachment date of his umbrella or excess liability policy acquires vehicles or premises, commences operations, or develops products which are excluded under sub-paragraphs (i), (j), (k), and (n) above, without the knowledge of the Company, the exclusion or exclusions affected shall be suspended with respect to each such policy until 30 days after the date when an umbrella underwriting supervisor of the Company is so notified of the insured's activities. Upon receipt of such notice, the Company shall promptly advise the Reinsurer of the scope of the insured's activities and the Reinsurer shall have the right to waive such exclusion or exclusions by a special acceptance as provided for in the article entitled SPECIAL ACCEPTANCES. If the Company is bound, without the knowledge of or contrary to the instructions of the Company's umbrella supervising underwriting personnel, on any liability business falling within the scope of exclusions (i) through (o), this Exhibit shall apply to such business for a period not to exceed 30 days following receipt of knowledge thereof by the Company's umbrella supervising underwriting personnel. SECTION 7 - REINSURANCE PREMIUM AND COMMISSION The Company shall pay to the Reinsurer: (a) 95% of the written premium charged by the Company for policy limits up to and including $1,000,000 each occurrence/$1,000,000 aggregate (where applicable); and D - 7 GENERAL REINSURANCE CORPORATION 66 (b) 100% of the written premium charged by the Company for policy limits in excess of $1,000,000 each occurrence/$1,000,000 aggregate (where applicable) up to and including $5,000,000 each occurrence/$5,000,000 aggregate (where applicable). The reinsurance premiums set forth above shall be subject to a fixed commission allowance of 32.5%. The reinsurance rates set forth above are based on the commercial umbrella and excess liability premiums charged by the Company, which shall be a judgment percentage of the unmodified manual general liability increased limits premium and applicable automobile liability unit rates, as set forth in Appendix A. SECTION 8 - UNDERLYING LIMITS AND SELF-INSURED RETENTIONS The minimum limits of liability of underlying policies, with respect to commercial umbrella and excess liability policies written by the Company, shall be as follows: (a) General Liability under $1,000,000 General Aggregate Limit Commercial General Liability $1,000,000 Products - Completed Policies, Section II of Operations Aggregate Limit Commercial Multiple Peril $ 500,000 Personal & Advertising Policies (ISO Ed. 1986) and Injury Limit Simplified General Liability $ 500,000 Each Occurrence Limit Policies (b) Businessowners (Business $1,000,000 General Aggregate Limit Elite/Business Select) $ 500,000 Products - Completed Business Liability $ 500,000 Each Occurrence Limit (c) General Liability under Bodily Injury: Comprehensive General $ 500,000 each occurrence Liability Policies, Section II $ 500,000 aggregate of Commercial Multiple Peril and Policies (ISO Ed. 1973), Property Damage: Businessowners Policies $ 250,000 each occurrence (Merchants Ed. 1982 and $ 250,000 aggregate 1983), and Non-Simplified or General Liability Policies Combined Single Limit: $ 500,000 each occurrence $ 500,000 aggregate
D - 8 GENERAL REINSURANCE CORPORATION 67 (d) Comprehensive Automobile Bodily Injury: Liability including Hired $ 500,000 each person and Non-Owned Auto Coverage $ 500,000 each occurrence and Uninsured/Underinsured and Motorists Coverages Property Damage: $ 500,000 each occurrence or Combined Single Limit: $ 500,000 each occurrence (e) Employers' Liability (Part Two of Workers' Compensation policies): (1) Bodily Injury by Accident $ 100,000 each accident (2) Bodily Injury by Disease $ 500,000 policy limit (3) Bodily Injury by Disease $ 100,000 each employee (f) Professional Liability: (1) Employee Benefits Liability $ 500,000 each claim $1,000,000 aggregate (2) All Other $ 500,000 each occurrence $1,000,000 aggregate (g) Liquor Liability $ 500,000 each common cause $1,000,000 aggregate (h) Watercraft Liability Same as (a), (b) or (c) above, as applicable
The self-insured retention shall be no less than $10,000 with respect to all exposures not contemplated in the underlying coverage. SECTION 9 - REPORTS AND REMITTANCES (a) BORDEREAU REPORTS AND REINSURANCE PREMIUM Within 30 days after the close of each month, the Company shall render to the Reinsurer a bordereau report giving details of each policy reinsured hereunder and issued during the month and the reinsurance premium for the month with respect to business of the Company written during the month summarizing the reinsurance premium; and the amount due the Reinsurer shall be remitted within 60 days after the close of the month. D - 9 GENERAL REINSURANCE CORPORATION 68 (b) CLAIMS AND LOSSES The Company shall report promptly to the Reinsurer each claim or loss which in the Company's estimate of value of injuries or damages sought, without regard to liability, might involve the reinsurance afforded by this Exhibit. If the Company is providing the umbrella or excess liability policy's underlying insurance, the Company shall also notify the Reinsurer promptly of any claim or loss for which the Company has created a loss reserve equal to or greater than one third of the Company's limit of liability on the underlying policy. The Company shall advise the Reinsurer of the estimated amount of net loss and adjustment expense in connection with each such claim or loss and of any subsequent changes in such estimates. Upon receipt of a definitive statement of net loss and adjustment expense from the Company, the Reinsurer shall pay promptly to the Company the Reinsurer's portion of net loss and the Reinsurer's portion of adjustment expense, if any. Any subsequent changes shall be reported by the Company to the Reinsurer and the amount due either party shall be remitted promptly. (c) COMPANY FORMS The Company has furnished the Reinsurer with the materials listed below and shall inform the Reinsurer in advance before making any material or substantial changes: (1) Specimen copies of the Company's umbrella, excess and underlying policies and all special endorsements used in conjunction with them; (2) A copy of the Company's underwriting rules and rates. (d) GENERAL In addition to the reports required in (a), (b), and (c) above, the Company shall furnish such other information as may be required by the Reinsurer for the completion of the Reinsurer's quarterly and annual statements and internal records. All reports shall be rendered on forms acceptable to the Company and the Reinsurer. D - 10 GENERAL REINSURANCE CORPORATION 69 SECTION 10 - REINSURANCE OVER THIS EXHIBIT The Company shall advise the Reinsurer of any reinsurance, other than facultative reinsurance on risks accepted individually, of the Company which would apply in excess of the limit of liability of the Reinsurer under this Exhibit. SECTION 11 - COMMENCEMENT AND TERMINATION This Exhibit shall apply to claims and losses resulting from occurrences insured under new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 1995. This Exhibit may be terminated by either party sending to the other, by registered mail to its principal office, notice stating the time and date when, not less than 90 days after the date of mailing of such notice, termination shall be effective. Upon termination of this Exhibit, the Reinsurer shall continue to be liable, with respect to policies in force at the time and date of termination, for claims and losses resulting from occurrences taking place until the expiration, cancellation, or next anniversary date, not to exceed one year, of each such policy of the Company, whichever occurs first. When all reinsurance is expired or terminated, the Reinsurer shall return to the Company the reinsurance premium unearned, if any, calculated on the monthly pro rata basis, less the commission previously allowed thereon. D - 11 Agreement No. 8009 GENERAL REINSURANCE CORPORATION 70 APPENDIX A Attached to and made a part of EXHIBIT D TO AGREEMENT NO. 8009 COMMERCIAL UMBRELLA RATING (A) For the first $1,000,000 of Insurance: (1) General Liability:
(a) Businessowners: EXCESS OF EXCESS OF $500,000 CSL $1,000,000 CSL (1) Basic GL Premium includes $350 $350 one location (2) Each additional location $ 75 $ 50 (3) Autos to be rated in accordance with the unit rates set forth in (A)(2) below. (b) General Liability (ISO Ed. 1986) (Factors to be applied to unmodified manual underlying premium)
UNDERLYING LIMITS PREMISES/OPERATIONS PRODUCTS/COMP. OPS. (OCC/AGG) 1 2 3 A B C 500/1000/1000 14% 24% 36% 12% 24% 32% 1000/2000/2000 8% 14% 23% 7% 15% 20%
(c) General Liability (ISO Ed. 1973) (Factors to be applied to unmodified manual underlying premium)
UNDERLYING LIMITS (EACH OCC) M&C OL&T PRODUCTS $ 500,000 BI 38% 19% 61% $1,000,000 BI 23% 11% 41% $ 250,000 PD 52% 51% 47% $ 500,000 PD 27% 27% 29% $1,000,000 PD 18% 14% 18%
(2) Automobile Liability Unit Rates: GENERAL REINSURANCE CORPORATION 71
EXCESS OF $500,000 EXCESS OF $1,000,000 TYPE A* B* C* A* B* C* Private Passenger $230 $ 64 $ 61 $170 $ 49 $ 49 Light Service $225 $ 63 $ 58 $165 $ 50 $ 50 Light Commercial $325 $ 64 $ 61 $215 $ 52 $ 48 Medium Service $255 $ 93 $ 88 $190 $ 82 $ 75 Medium Commercial $390 $ 92 $ 88 $260 $ 81 $ 76 Heavy Service $625 $189 $185 $485 $132 $128 Heavy Commercial $700 $200 $195 $550 $150 $145
*Territory A: The cities of New York, New York; Boston, Massachusetts; Philadelphia, Pennsylvania; Atlantic City, Newark, Jersey City, and Camden, New Jersey *Territory B: The counties of Nassau, Suffolk and Westchester, New York; The cities of Buffalo, Rochester, Albany, Syracuse, and Utica, New York; Trenton, New Jersey *Territory C: All other territories (3) Professional Liability
EXCESS OF EXCESS OF $500,000 $1,000,000 Druggists (per employee) $100 $ 75 Barbers/Beauticians (per employee) $ 50 $ 35 Cemetery Services (per employee) $ 50 $ 35 Opticians (per employee) $ 75 $ 50 Veterinarians (per employee) $ 75 $ 50 Hearing Aid Services (per employee) $ 75 $ 50 Funeral Directors (per employee) $ 75 $ 50 Printers (per location) $100 $ 75 Employee Benefits Liability (per policy) $150 $125
(4) Judgment Modification: (a) Chief Underwriting Officer Up to 75% (b) All other Up to 30% These are applied to the first $1,000,000 of insurance and are subject to the following minimum premiums. Page 2 of 3 GENERAL REINSURANCE CORPORATION 72 (5) Annual Minimum Premiums (a) Businessowners $350 (b) All other $500 (B) For Excess $1,000,000's of Insurance: (1) 50% of the premium for the preceding $1,000,000, subject to the following annual minimum premiums (2) Annual Minimum Premiums (a) Businessowners $350 per $1,000,000 of insurance (b) All other $500 per $1,000,000 of insurance Page 3 of 3 Appendix A to Exhibit D Agreement No. 8009 GENERAL REINSURANCE CORPORATION 73 EXHIBIT E Attached to and made a part of AGREEMENT OF REINSURANCE NO. 8009 QUOTA SHARE AND EXCESS OF LOSS REINSURANCE of PERSONAL UMBRELLA BUSINESS - -------------------------------------------------------------------------------- SECTION I - LIABILITY OF THE REINSURER The Reinsurer shall pay to the Company, with respect to each personal umbrella policy of the Company, a percentage of each net loss sustained by the Company, but not exceeding the Limit of Liability of the Reinsurer as set forth in the Schedule of Reinsurance. SCHEDULE OF REINSURANCE
- -------------------------------------------------------------------------------------------------------- Limit of Liability Policy Limit Company Retention of the Reinsurer - -------------------------------------------------------------------------------------------------------- $1,000,000 each occurrence 5% of the Policy Limit 95% of the Policy Limit Above $1,000,000 each 5% of the first $1,000,000 95% of the first $1,000,000 occurrence subject to the each occurrence each occurrence; and provisions of the section entitled COMPANY 100% of the difference POLICY AMOUNTS between the Policy Limit and $1,000,000 each occurrence - --------------------------------------------------------------------------------------------------------
With respect to uninsured motorists or underinsured motorists net losses, the liability of the Reinsurer and the Company Retention shall apply to the same extent, as the policy limit is made to apply. SECTION 2 - ALLOCATION OF ADJUSTMENT EXPENSE In addition to payments for its share of net loss, the Reinsurer shall pay to the Company a share of adjustment expense proportionate to the Reinsurer's share of net loss. GENERAL REINSURANCE CORPORATION 74 If there is no net loss payment, the Reinsurer shall pay to the Company 95% of adjustment expense. SECTION 3 - EXTRA CONTRACTUAL OBLIGATIONS Notwithstanding the provisions of the article entitled MANAGEMENT OF CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, the Reinsurer shall afford additional reinsurance to the Company for 90% of that portion of the extra contractual obligation which is in excess of the Company Retention, subject to the conditions of the following paragraphs. The liability of the Reinsurer with respect to each extra contractual obligation shall not exceed 90% of $1,000,000. For purposes of this Section, the term "extra contractual obligation" shall mean a loss which the Company is legally liable to pay, including a loss in excess of the Company's policy limit, which is not covered under any other provision of this Exhibit and which arises from the Company's handling of any claim on the policies reinsured hereunder, provided such claim is not covered by underlying insurance. The date on which an extra contractual obligation is incurred by the Company shall be deemed, in all circumstances, to be the date of the original occurrence. This Section shall not apply where the extra contractual obligation has been incurred due to the fraud or criminal conduct of a member of the Board of Directors, a corporate officer of the Company, or any other employee of the Company, acting individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the investigation, defense or settlement of any claim covered hereunder. Any insurance or reinsurance, whether collectible or not, which indemnifies or protects the Company against claims which are the subject matter of this Section and any contribution, subrogation, or recovery shall inure to the benefit of the Reinsurer and shall be deducted to arrive at the amount of the Company's net loss. E - 2 GENERAL REINSURANCE CORPORATION 75 SECTION 4 - COMPANY POLICY AMOUNTS For the purpose of determining the Company Retention and Limit of Liability of the Reinsurer, the limits of liability of the Company with respect to any one insured shall be deemed not to exceed $2,000,000 each occurrence unless higher limits up to and including $5,000,000 each occurrence have been submitted to the Reinsurer for special acceptance and accepted by the Reinsurer, as specified in the article entitled SPECIAL ACCEPTANCES. SECTION 5 - DEFINITIONS (a) PERSONAL UMBRELLA BUSINESS This term shall mean insurance which is classified by the Company as personal umbrella with respect to insureds domiciled in the United States of America, its territories and possessions, or in Canada. (b) COMPANY RETENTION This term shall mean the amount the Company shall retain for its own account; however, this requirement shall be satisfied if this amount is retained by the Company or its affiliated companies under common management or common ownership. (c) NET LOSS This term shall mean all payments by the Company in settlement of claims or losses, payment of benefits, or satisfaction of judgments or awards after deduction of subrogation and other recoveries and after deduction of amounts due from all other reinsurance, whether collectible or not. This term shall not include adjustment expense. If the Company becomes insolvent, this definition shall be modified to the extent set forth in the article entitled INSOLVENCY OF THE COMPANY. (d) ADJUSTMENT EXPENSE This term shall mean expenditures by the Company in the direct defense of claims and as allocated to an individual claim or loss, other than for office expenses and for the salaries and expenses of employees of the Company or of any subsidiary or related or wholly owned company of the Company, made in connection with the disposition of a claim, loss, or legal proceeding including investigation, negotiation, and legal expenses; E - 3 GENERAL REINSURANCE CORPORATION 76 court costs; statutory penalties; prejudgment interest or delayed damages; and interest on any judgment or award. (e) PREJUDGMENT INTEREST OR DELAYED DAMAGES This term shall mean interest or damages added to a settlement, verdict, award, or judgment based on the amount of time prior to the settlement, verdict, award, or judgment whether or not made part of the settlement, verdict, award, or judgment. SECTION 6 - EXCLUSIONS This Exhibit shall not apply to: (a) Business accepted by the Company as reinsurance from other insurers other than its affiliates; (b) Nuclear incident per the Nuclear Incident Exclusion Clause - Liability - Reinsurance attached hereto; (c) Any loss or liability accruing to the Company directly or indirectly from any insurance written by or through any pool or association including pools and associations in which membership by the Company is required under any statutes or regulations; (d) Any liability of the Company arising from its participation or membership in any insolvency fund; (e) Any loss or damage which is occasioned by war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public authority; however, this exclusion shall not apply to any policy which contains a standard war exclusion; (f) Business written on a co-indemnity basis not controlled by the Company; (g) Directors and officers liability insurance; (h) Malpractice insurance or any other form of errors and omissions or professional liability insurance; (i) Liability insurance afforded for watercraft with respect to waterskiing or where there is any sublimit written on the underlying policy, unless a E - 4 GENERAL REINSURANCE CORPORATION 77 "Watercraft Liability - Following Form" endorsement is attached to the personal umbrella policy; (j) Liability of the Company arising out of all Jones Act exposures with respect to liability policies covering watercraft; (k) Insurance afforded to insureds with more than four residential units occupied by others; (l) Pollution under any farm personal umbrella or under any personal umbrella covering farm exposures written by the Company which does not contain the pollution exclusion set forth in ISO Farm Liability Coverage Form FL 00 20 (Ed. 6/90) or as subsequently amended; however, this exclusion does not apply to any risk located in a jurisdiction which has not approved the Insurance Services Office exclusion or where other regulatory constraints prohibit the Company from implementing such exclusion. If the Company elects to implement an exclusion different from that of ISO, such exclusion will be deemed a suitable substitute provided the Company has submitted the wording to the Reinsurer and received the Reinsurer's prior approval; (m) Business excluded under the Company's Personal Umbrella Underwriting Guidelines. SECTION 7 - REINSURANCE PREMIUM AND COMMISSION The Company shall pay to the Reinsurer: (a) 95% of the written premium charged by the Company for policy limits up to and including $1,000,000 each occurrence; and (b) 100% of the written premium charged by the Company for policy limits in excess of $1,000,000 each occurrence up to and including $5,000,000 each occurrence, provided limits in excess of $2,000,000 each occurrence have been accepted by the Reinsurer, as specified in the article entitled SPECIAL ACCEPTANCES. The reinsurance premiums set forth above shall be subject to a fixed commission allowance of 32.5%. The reinsurance rates set forth above are based on umbrella premiums charged by the Company as set forth in Appendix A attached. E - 5 GENERAL REINSURANCE CORPORATION 78 SECTION 8 - UNDERLYING LIMITS AND SELF-INSURED RETENTIONS The minimum limits of liability of underlying policies, with respect to personal umbrella policies written by the Company, shall be as follows: (a) Automobile Liability, Licensed Recreational Vehicles, Uninsured/ Underinsured Motorists Coverages (1) Treiber Agency produced Bodily Injury: business $500,000 each person $500,000 each occurrence and Property Damage: $500,000 each occurrence or Combined Single Limit: $500,000 each occurrence (1) All other business Bodily Injury: $250,000 each person $500,000 each occurrence and Property Damage: $100,000 each occurrence or Combined Single Limit: $300,000 each occurrence (b) Personal Liability (including business pursuits and unlicensed recreational vehicles) (1) Treiber Agency produced Combined Single Limit: business $500,000 each occurrence (2) All other business Combined Single Limit: business $100,000 each occurrence (c) Employers Liability (1) Bodily Injury by Accident $100,000 each accident (2) Bodily Injury by Disease $500,000 policy limit (3) Bodily Injury by Disease $100,000 each employee
E - 6 GENERAL REINSURANCE CORPORATION 79 (d) Watercraft Liability (1) Sailboats and Powerboats - Combined Single Limit: less than 26 feet $100,000 each occurrence and 50 horsepower (2) All Other Combined Single Limit: $300,000 each occurrence
The self-insured retention shall be no less than $250 with respect to all exposures not contemplated in the underlying coverage. SECTION 9 - REPORTS AND REMITTANCES (a) BORDEREAU REPORTS AND REINSURANCE PREMIUM Within 30 days after the close of each month, the Company shall render to the Reinsurer a bordereau report giving details of each policy reinsured hereunder and issued during the month and the reinsurance premium for the month with respect to business of the Company written during the month summarizing the reinsurance premium; and the amount due either party shall be remitted within 60 days after the close of the month. (b) CLAIMS AND LOSSES The Company shall report promptly to the Reinsurer each claim or loss which in the Company's estimate of value of injuries or damages sought, without regard to liability, might involve the reinsurance afforded by this Exhibit. If the Company is carrying the umbrella's underlying insurance, the Company shall also notify the Reinsurer promptly of any claim or loss for which the Company has created a loss reserve equal to or greater than 50% of the Company's primary retention as stated in the schedule of underlying limits on the Company's umbrella policy. The Company shall advise the Reinsurer of the estimated amount of net loss and adjustment expense in connection with each such claim or loss and of any subsequent changes in such estimates. Upon receipt of a definitive statement of net loss and adjustment expense from the Company, the Reinsurer shall pay promptly to the Company the Reinsurer's portion of net loss and the Reinsurer's portion of adjustment expense, if any. Any subsequent changes shall be reported by the E - 7 GENERAL REINSURANCE CORPORATION 80 Company to the Reinsurer and the amount due either party shall be remitted promptly. (c) COMPANY FORMS The Company has furnished the Reinsurer with the materials listed below and shall inform the Reinsurer in advance before making any material or substantial changes therein: (1) Specimen copies of the Company's policies and the special endorsements used in conjunction therewith; (2) A copy of the Company's underwriting rules and rates. (d) GENERAL In addition to the reports required in (a), (b), and (c) above, the Company shall furnish such other information as may be required by the Reinsurer for the completion of the Reinsurer's quarterly and annual statements and internal records. All reports shall be rendered on forms acceptable to the Company and the Reinsurer. SECTION 10 - REINSURANCE OVER THIS EXHIBIT The Company shall advise the Reinsurer of any reinsurance, other than facultative reinsurance on risks accepted individually, of the Company that would apply in excess of the limit of liability of the Reinsurer under this Exhibit. SECTION 11 - COMMENCEMENT AND TERMINATION This Exhibit shall apply to claims and losses resulting from occurrences insured under new and renewal policies of the Company becoming effective at and after 12:01 A.M., January 1, 1995. This Exhibit may be terminated by either party sending to the other by registered mail to its principal office, notice stating the time and date when, not less than 90 days after the date of mailing of such notice, termination shall be effective. Upon termination of this Exhibit, E - 8 GENERAL REINSURANCE CORPORATION 81 the Reinsurer shall continue to be liable, with respect to policies in effect at the time and date of termination, for claims and losses resulting from occurrences taking place until the expiration, cancellation, or next anniversary date, not to exceed one year, of each such policy of the Company, whichever occurs first. When all reinsurance is expired or terminated, the Reinsurer shall return to the Company the reinsurance premium unearned, if any, calculated on the monthly pro rata basis, less the commission previously allowed thereon. E - 9 Agreement No. 8009 GENERAL REINSURANCE CORPORATION 82 APPENDIX A Attached to and made a part of EXHIBIT E OF AGREEMENT NO. 8009
I. PERSONAL UMBRELLA RATING TERRITORY TERRITORY TERRITORY 1 2 3 (a) For the First $1,000,000 of Insurance: (1) Basic Premium Includes: $ 50 $ 50 $ 50 (a) All owner occupied residences (b) All sailboats under 26' (c) Up to 4 rental dwellings (d) One office premises (e) SIR coverages (2) Automobiles, Motorcycles, and Licensed $ 45 $ 45 $ 65 Recreational Vehicles (each vehicle) (3) Underage Drivers (each) $ 40 $ 45 $ 55 (4) Uninsured/Underinsured Motorists (each $ 25 $ 35 $ 35 vehicle) (5) Unlicensed Recreational Vehicles (not $ 20 $ 20 $ 20 motor vehicles) (each vehicle) (6) Watercraft: (a) 51 - 100 horsepower $ 50 $ 50 $ 50 (b) 101 - 150 horsepower $ 75 $ 75 $ 75 (c) 151 - 200 horsepower $ 100 $ 100 $ 100 (d) 201 - 250 horsepower $ 125 $ 125 $ 125 (d) Excess of 26' and 250 hp Refer to Reinsurer (7) Minimum Premium $ 125 $ 150 $ 150 (8) Self-Insured Retention Credits (a) New Jersey $ 250 -- -- -- $ 500 -- -- $ 4 $ 1,000 -- -- $ 6 $ 5,000 -- -- $ 10 $ 10,000 -- -- $ 12
83 (b) All Other States $ 250 -- -- -- $ 500 $2 $2 $2 $ 1,000 $3 $3 $3 $ 5,000 $5 $5 $5 $ 10,000 $6 $6 $6 (b) For the Second $1,000,000 of Insurance: (1) 60% of the premium for the first $1,000,000 of insurance. (2) Minimum Premium $115 $125 $125 (c) For the Excess $1,000,000's of Insurance (granted only by Special Acceptance): Minimum Premium per $1,000,000 $150 $150 $150 (d) If UM/UIM is not provided, attach an exclusion endorsement.
Page 2 of 3 GENERAL REINSURANCE CORPORATION 84 II. PERSONAL UMBRELLA TERRITORIES
STATE TERRITORY Delaware Entire State 1 Maine Entire State 1 Maryland Entire State 3 Massachusetts Counties of Essex, Middlesex, Norfolk, 3 and Suffolk Remainder of State 1 New Hampshire Entire State 1 New Jersey Entire State 3 New York Counties of Bronx, Kings, New York, 3 Queens, and Richmond Counties of Nassau, Suffolk, 2 and Westchester Remainder of State 1 Ohio Counties of Cuyohoga, Lake and Loraine 3 Remainder of State 1 Pennsylvania Counties of Allegheny, Bucks, Chester 3 Delaware, Montgomery, and Philadelphia Remainder of State 1 Rhode Island Entire State 1 Vermont Entire State 1 Virginia Counties of Arlington, and Fairfax 3 Remainder of State 1
Page 3 of 3 Appendix A to Exhibit E Agreement No. 8009 GENERAL REINSURANCE CORPORATION EX-10.N 3 EXHIBIT 10(N) 1 EXHIBIT 10(n) 2 MERCHANTS MUTUAL INSURANCE COMPANY INCENTIVE COMPENSATION PLAN AS AMENDED JANUARY 24, 1996 3 MERCHANTS MUTUAL INSURANCE COMPANY INCENTIVE COMPENSATION PLAN TABLE OF CONTENTS -----------------
Section No. Title Page No. - ----------- ----- -------- 1 History 1 2 Purpose 1 3 Participants 2 4 Funds for Incentive Awards 2 5 Incentive Awards -- In General 3 6 Company and MGI Performance Goals 3 7 Setting Target Amounts for Awards 3 8 Individual Goals 4 9 Determination of Actual Amounts of Awards 4 10 Over-riding Discretion of Board of Directors 5 11 Relationship of Target Awards to Company and MGI Performance 6 12 Termination of Employment; Less than a Full Year of Participation 7 13 Payment; Forfeiture 7 14 Administration 8 15 No Assignment 8 16 Amendment and Termination 8 17 Definitions 9
4 MERCHANTS MUTUAL INSURANCE COMPANY INCENTIVE COMPENSATION PLAN AS AMENDED JANUARY 24, 1996 Section 1. History - -------------------- Merchants Mutual Insurance Company (the "Company") established the Merchants Mutual Executive Bonus Plan, first effective for its fiscal year ended December 31, 1984. The Company amended the Executive Bonus Plan and renamed it the Merchants Mutual Insurance Company Incentive Compensation Plan (the "Plan"), effective January 1, 1989. The Plan was amended on March 30, 1994 and, as further amended on January 24, 1996, is restated in this document. Section 2. Purpose - -------------------- The Company operates and manages its business in conjunction with Merchants Group, Inc. ("MGI") and MGI's wholly-owned subsidiary, Merchants Insurance Company of New Hampshire, Inc. ("MNH"), under a management agreement which was entered into as of September 29, 1986 (the "Management Agreement"). MGI and MNH do not have any significant operating assets and have no employees. Under the Management Agreement, the Company provides MGI and MNH with the facilities, management and personnel required to operate their day-to-day business. The purpose of the Plan is to provide eligible officers of the Company, MGI, or MNH, with cash incentive payments related to their accomplishment of specific goals and to reward those 5 officers on the basis of their performance and contribution to the Company's, MGI's and MNH's profitability. Section 3. Participants - ------------------------- The participants in the Plan for any fiscal year of the Company will be those officers of the Company, MGI or MNH who are recommended by the President to the Compensation Committee of the Board of Directors of the Company (the "Compensation Committee") and approved by the Board of Directors of the Company (the "Board of Directors"). Section 4. Funds for Incentive Awards - --------------------------------------- The amount of funds available for incentive awards with respect to each fiscal year will be determined by the Compensation Committee, subject to approval by the Board of Directors, with the intent being that the total amount of funds available will be allocated between the Company (the "Company's Pool") and MGI ("MGI's Pool") in proportion to the Company's and MNH's direct written premiums for the fiscal year for which awards are to be granted. However, if the Company's Rate of Return on Surplus is less than 8%, then no funds will be available for awards for the year under the Company's Pool, and if MGI's Rate of Return on Equity is less than 8%, then no funds will be available for awards for the year under MGI's Pool. - 2 - 6 Any funds paid under the Plan by either the Company, or MGI or MNH, shall not be deemed a shared expense under the Management Agreement. Any funds available for awards that are not expended will revert to the Company or MGI or MNH, as the case may be. Section 5. Incentive Awards -- In General - ------------------------------------------- Whether an award will be made to a participant for a year will depend upon the extent to which the Company and MGI meet their performance goals for the year, the extent to which the participant meets his or her individual goals for the year, and the discretion of the President and the Compensation Committee, subject to approval by the Board of Directors. Section 6. Company and MGI Performance Goals - ---------------------------------------------- At the beginning of each fiscal year, the President, with the approval of the Compensation Committee and the Board of Directors, shall establish the Company's and MGI's performance goals for the purposes of the Plan for the year. One factor to be taken into account in the determination of whether awards shall be made under this Plan for a given year is the extent to which the Company and MGI have met their respective performance goals for the year. Section 7. Setting Target Amounts for Awards - ---------------------------------------------- At the beginning of each fiscal year, the President, with the approval of the Compensation Committee, shall set a - 3 - 7 target amount for an incentive award for each participant for the year. Target awards expressed as a percentage of compensation will generally vary in accordance with participants' levels of responsibility. There may be a range of target awards set for each participant. Section 8. Individual Goals - ----------------------------- At the beginning of each fiscal year, the President, in consultation with each individual participant and with the approval of the Compensation Committee, shall establish individual goals for the participant related to the participant's position as an officer of the Company, MGI or MNH. Each goal shall be assigned a relative value. At the end of the year, the President shall evaluate the participant's performance and achievement for the year and determine, in his discretion, the extent to which the participant has met each of his or her individual goals. The Compensation Committee shall make this evaluation and determination with respect to the President. Section 9. Determination of Actual Amounts of Awards - ------------------------------------------------------ The Compensation Committee shall determine the actual amount, if any, of a participant's award for the year, subject to approval by the Board of Directors. As a preliminary step in the determination of the amount of awards, the President or, in the case of the President's award, the Compensation Committee shall determine what amount would be awarded if the target amount of a participant's incentive award for the year were to be awarded in - 4 - 8 proportion to the participant's achievement of his or her individual goals for the year, taking into account the relative values assigned to such goals in accordance with Section 8. The President will recommend to the Compensation Committee what amount, if any, of the target award shall be awarded, and the Compensation Committee, subject to approval by the Board of Directors, shall determine the amount of the award, taking into account the President's recommendation and evaluation of each participant. If the total amount of awards that would otherwise be made with respect to a year is limited by the size of the award fund for the year (see Section 4), the award fund for that year may be increased with the approval of the Board of Directors or awards shall be reduced accordingly by the Compensation Committee in consultation with the President. Section 10. Over-riding Discretion of Board of Directors - --------------------------------------------------------- Notwithstanding any other provision of this Plan, the Board of Directors in its sole discretion may determine what transactions should be included in the definitions of Rate of Return on Equity and Rate of Return on Surplus, vary the amount of an award that would otherwise be made under this Plan for a year and determine that any or all of the awards that would otherwise be made under this Plan should be reduced or eliminated. However, once the amount of an award is determined and communicated to participants under this Plan, it may not be reduced or eliminated. - 5 - 9 Section 11. Relationship of Target Awards to Company and MGI - ------------------------------------------------------------- Performance ----------- Each participant will have a range of target awards related to the Company's Rate of Return on Surplus and MGI's Rate of Return on Equity. In accordance with Section 4, there will be no incentive awards under the Company's Pool if the Company's Rate of Return on Surplus is less than 8% for the year nor will there be incentive awards under MGI's Pool if MGI's Rate of Return on Equity is less than 8% for the year. The following table sets forth participants' target awards (expressed as percentages of participants' base annual compensation at December 31st of the year for which the awards are made):
Maximum Awards as Percentage of Base Annual Compensation(a) ------------------------------ The Company's Rate At least ....... 8% 10% 15% 20% of Return on its Surplus or MGI's Rate of Return on Equity but less than ... 10% 15% 20% --- - ------------------ ------------- --- --- --- --- President and Chief Executive Officer 15% 25% 40% 50% Senior Officers and Vice Presidents 12% 20% 33% 40% Other Officers 9% 15% 25% 30%
========================================== [FN] (a) A participant's total base annual compensation for the year ended December 31 of the year for which the awards are made shall be allocated between the Company and MNH based on each company's percentage of the combined total direct premiums for that year written by the companies, as computed pursuant to the Management Agreement. For example, if a participant such as the President had total base annual compensation of $100,000, and if the Company wrote 35% and MNH wrote 65%, respectively, of the combined total direct premiums written by the Company and MNH, and if the Company's Rate of Return on its Surplus was 8% and MGI's Rate of Return on Equity was 10% the participant would be eligible for a maximum target award of $5,250 from the Company (base annual salary attributable to the Company of $35,000 x 15% maximum award % = $5,250) and a maximum target award of $16,250 from MGI (base annual salary attributable to MGI of $65,000 x 25% maximum award % = $16,250). - 6 - 10 Section 12. Termination of Employment; Less than a Full Year of - ---------------------------------------------------------------- Participation ------------- Participants who resign or are discharged during the fiscal year or after the end of the year and before awards are made by the Company are not eligible for awards with respect to such year, except for participants who resign for reasons beyond their control, such as ill health, as determined by the Compensation Committee. However, participants who retire (within the meaning of the Merchants Mutual Capital Accumulation Plan) or die during the fiscal year or after the end of the year and before awards are made may be eligible for an award, as recommended by the President and determined by the Compensation Committee, subject to the approval of the Board of Directors. Individuals who become participants during a fiscal year may be eligible for an award, as recommended by the President and determined by the Compensation Committee, subject to approval by the Board of Directors. Section 13. Payment; Forfeiture - -------------------------------- Subject to the further provisions of this Section 13 and to approval by the Board of Directors, payment of awards will be made in cash or its equivalent as soon as practicable after the determination of the amount of all awards for the previous year. Participants may elect to defer payment of awards in accordance with the terms of the Merchants Mutual Executive Deferral Plan. - 7 - 11 Awards payable after a participant's death will be paid to the participant's estate unless they are subject to a deferral election, in which event the deferral agreement will govern the payment of amounts payable after the participant's death. Amounts will be withheld from award payments in accordance with federal and state withholding requirements. Section 14. Administration - --------------------------- The Compensation Committee will administer the Plan, subject to approval by the Board of Directors. Any determination of the Compensation Committee or the Board of Directors with respect to participation, the amount of awards, the payment of awards, or any matter involving the interpretation of the Plan shall be conclusive and binding on all participants. Section 15. No Assignment - -------------------------- A participant may not assign any right to an award or payment under this Plan, and awards and payments shall not be subject to alienation whether by garnishment, lien, or otherwise, except as required by law. Section 16. Amendment and Termination - -------------------------------------- The Board of Directors of the Company may amend or terminate this Plan at any time by resolution, provided, however, that no amendment or termination of the Plan shall adversely effect any award previously granted to a participant. - 8 - 12 Section 17. Definitions - ------------------------ For the purposes of this Plan: 1. "Rate of Return on Equity" means, with respect to any fiscal year of MGI, the percentage equivalent of the result obtained upon the application of the following formula, where "x" equals MGI's total shareholders' equity as of the last day of the given year, "y" equals MGI's total shareholders' equity as of the last day of the year preceding the given year and "z" equals dividends declared to MGI's stockholders during the given year, each as reported in MGI's consolidated financial statements prepared in accordance with generally accepted accounting principles: x - y + z --------- Rate of Return on Equity = y 2. "Rate of Return on Surplus" means, with respect to any fiscal year of the Company, the percentage equivalent of the result obtained upon the application of the following formula, where "x" equals the Company's total policyholders' surplus as of the last day of the given year, and "y" equals the Company's total policyholders' surplus as of the last day of the year preceding the given year, each as reported in the Company's financial statements prepared in accordance with generally accepted accounting principles: x - y ----- Rate of Return on Surplus = y - 9 - 13 3. A masculine pronoun wherever used in this Plan shall include the feminine, and the singular shall include the plural, and vice versa, wherever the context requires. This document has been executed on the 24th day of January, 1996, pursuant to the authorization of the Board of Directors of the Company. MERCHANTS MUTUAL INSURANCE COMPANY By _________________________________ Robert M. Zak, President - 10 - EX-23 4 EXHIBIT 23 1 EXHIBIT 23 2 Consent of Independent Accountants ---------------------------------- We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-47014) of Merchants Group, Inc. of our report dated February 20, 1996 appearing on page F-1 of this Form 10-K. Price Waterhouse LLP Buffalo, New York March 28, 1996 EX-27 5 EXHIBIT 27
7 1 U.S. DOLLARS YEAR DEC-31-1995 JAN-01-1995 DEC-31-1995 1 163,778,000 19,477,000 20,348,000 0 0 0 192,218,000 39,000 7,014,000 12,165,000 252,808,000 119,722,000 48,773,000 0 0 0 32,000 0 0 69,938,000 252,808,000 94,749,000 10,368,000 (832,000) 259,000 78,195,000 25,458,000 7,709,000 (6,818,000) (2,999,000) (3,819,000) 0 0 0 (3,819,000) (1.19) (1.19) 104,015,000 67,150,000 11,045,000 25,175,000 36,916,000 119,722,000 0
EX-28.A 6 EXHIBIT 28(A) 1 EXHIBIT 28 (a) 2 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES Notes to Schedule P 1. The Parts of Schedule P: Part 1 - detailed information on losses and loss expenses. Part 2 - history of incurred losses and allocated expenses. Part 3 - history of loss and allocated expense payments. Part 4 - history of bulk and incurred but not reported reserves. Part 5 - history of claims. Part 6 - history of premiums earned. Part 7 - history of loss sensitive contracts Schedule P Interrogatories. 2. Lines of business A through M, R and S are groupings of the lines of business used on the state page. 3. Reinsurance A, B, C, and D (Lines N to Q) are: Reinsurance A = nonproportional property (1988 and subsequent) Reinsurance B = nonproportional liability (1988 and subsequent) Reinsurance C = financial lines (1988 and subsequent) Reinsurance D = old Schedule O Line 30 (1987 and prior) SCHEDULE P - PART 1 - SUMMARY ($000 Omitted)
================================================================================================= (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------- Which | (2) | (3) | (4) | LOSS PAYMENTS | Premiums | | | |---------------------------------- Were Earned| Direct and | Ceded | Net | (5) | (6) | and Losses | Assumed | | (Cols. 2 - 3) | Direct and | | Were Incur.| | | | Assumed | Ceded | - ------------------------------------------------------------------------------------------------- 1. Prior | X X X | X X X | X X X |........... 220 |........... 363 | 2. 1986 |........ 56,230 |........ 26,819 |........ 29,411 |........ 35,191 |......... 6,223 | 3. 1987 |........ 75,517 |........ 21,807 |........ 53,710 |........ 44,112 |......... 5,212 | 4. 1988 |........ 84,311 |........ 21,263 |........ 63,048 |........ 46,936 |......... 3,059 | 5. 1989 |........ 86,408 |........ 10,625 |........ 75,783 |........ 52,981 |......... 2,430 | 6. 1990 |........ 92,956 |......... 9,812 |........ 83,144 |........ 52,906 |......... 2,366 | 7. 1991 |........ 93,588 |......... 4,453 |........ 89,135 |........ 49,011 |........... 836 | 8. 1992 |........ 92,520 |......... 4,498 |........ 88,022 |........ 45,133 |......... 1,000 | 9. 1993 |........ 93,897 |......... 5,716 |........ 88,181 |........ 40,416 |............ 69 | 10. 1994 |........ 97,620 |......... 6,776 |........ 90,844 |........ 38,555 |........... 641 | 11. 1995 |....... 101,801 |......... 7,053 |........ 94,748 |........ 21,902 |........... 443 | - ------------------------------------------------------------------------------------------------- 12. TOTALS| X X X | X X X | X X X |....... 427,363 |........ 22,642 | - ------------------------------------------------------------------------------------------------- ================================================================================================================= (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |------------------------------------------------------------------------------------| | Which | ALLOCATED LOSS EXPENSE PAYMENTS | (9) | (10) | (11) | Number of | Premiums |---------------------------------| | | Total | Claims | Were Earned| (7) | (8) | Salvage and | Unallocated | Net Paid | Reported - | and Losses | Direct and | | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Assumed | Ceded | Received | Payments | + 7 - 8 + 10) | Assumed | - ----------------------------------------------------------------------------------------------------------------| 1. Prior |............ 72 |............. 1 |............ 30 |............ (3)|........... (75)| X X X | 2. 1986 |......... 2,110 |............. 2 |........... 210 |......... 2,123 |........ 33,199 | X X X | 3. 1987 |......... 2,447 |............. 0 |........... 562 |......... 3,030 |........ 44,377 | X X X | 4. 1988 |......... 2,777 |............. 0 |......... 4,370 |......... 3,787 |........ 50,441 | X X X | 5. 1989 |......... 3,317 |............. 2 |......... 2,619 |......... 3,653 |........ 57,519 | X X X | 6. 1990 |......... 4,069 |........... 592 |......... 2,207 |......... 3,327 |........ 57,344 | X X X | 7. 1991 |......... 3,107 |............. 6 |......... 1,991 |......... 3,289 |........ 54,565 | X X X | 8. 1992 |......... 2,560 |............ 16 |......... 1,827 |......... 3,187 |........ 49,864 | X X X | 9. 1993 |......... 2,301 |............ (5)|......... 1,486 |......... 3,010 |........ 45,663 | X X X | 10. 1994 |......... 1,794 |............. 0 |......... 1,506 |......... 3,291 |........ 42,999 | X X X | 11. 1995 |........... 847 |............. 1 |........... 551 |......... 2,760 |........ 25,065 | X X X | - ----------------------------------------------------------------------------------------------------------------| 12. TOTALS|........ 25,401 |........... 615 |........ 17,359 |........ 31,454 |....... 460,961 | X X X | - -----------------------------------------------------------------------------------------------------------------
============================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |-------------------------------------------------------------------------------------------------- | CASE BASIS | BULK + IBNR | CASE BASIS | |-------------------------------------------------------------------------------------------------- | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - -------------------------------------------------------------------------------------------------------------- 1. Prior |........ 1,307 |........... 798 |............ 67 |............ 0 |............ 0 |............ 0 | 2. 1986 |.......... 257 |............ 91 |............ 44 |............ 0 |............ 0 |............ 0 | 3. 1987 |.......... 321 |........... 103 |............ 79 |........... 26 |............ 0 |............ 0 | 4. 1988 |.......... 800 |........... 107 |........... 237 |........... 48 |............ 0 |............ 0 | 5. 1989 |.......... 842 |............ 72 |........... 297 |........... 69 |............ 0 |............ 0 | 6. 1990 |........ 2,240 |........... 121 |........... 422 |.......... 120 |............ 0 |............ 0 | 7. 1991 |........ 6,542 |........... 505 |......... 1,210 |.......... 261 |............ 0 |............ 0 | 8. 1992 |........ 8,651 |........... 412 |......... 1,985 |.......... 339 |............ 0 |............ 0 | 9. 1993 |....... 13,324 |........... 112 |......... 3,241 |.......... 480 |............ 0 |............ 0 | 10. 1994 |....... 16,612 |............ 89 |......... 9,539 |........ 1,032 |............ 0 |............ 0 | 11. 1995 |....... 19,138 |........... 653 |........ 19,694 |........ 1,161 |............ 0 |............ 0 | - -------------------------------------------------------------------------------------------------------------- 12. TOTALS|....... 70,034 |......... 3,063 |........ 36,815 |........ 3,536 |............ 0 |............ 0 | - -------------------------------------------------------------------------------------------------------------- ==================================================================================================== |ALLOCATED LOSS EXPENSES UNPAID| (21) | (22) | (23) | (24) | |------------------------------| | | | | | BULK + IBNR | Salvage & | Unallocated | Total Net | Number of | |------------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding| | Direct and | Ceded | | Unpaid | Unpaid |- Direct &| | Assumed | | | | | Assumed | - ---------------------------------------------------------------------------------------------------| 1. Prior |............ 4 |........... 0 |........... 0 |........... 0 |......... 580 | X X X | 2. 1986 |........... 21 |........... 0 |........... 0 |........... 0 |......... 231 | X X X | 3. 1987 |........... 89 |........... 0 |........... 5 |........... 0 |......... 360 | X X X | 4. 1988 |.......... 129 |........... 0 |.......... 62 |........... 0 |....... 1,011 | X X X | 5. 1989 |.......... 122 |........... 0 |.......... 22 |........... 0 |....... 1,120 | X X X | 6. 1990 |.......... 311 |........... 0 |.......... 30 |........... 0 |....... 2,732 | X X X | 7. 1991 |.......... 761 |........... 0 |.......... 47 |......... 199 |....... 7,946 | X X X | 8. 1992 |........ 1,155 |........... 0 |.......... 92 |......... 318 |...... 11,358 | X X X | 9. 1993 |........ 1,737 |........... 0 |......... 187 |......... 455 |...... 18,165 | X X X | 10. 1994 |........ 2,526 |........... 0 |......... 440 |......... 544 |...... 28,100 | X X X | 11. 1995 |........ 3,950 |........... 0 |....... 1,167 |......... 944 |...... 41,912 | X X X | - ---------------------------------------------------------------------------------------------------| 12. TOTALS|....... 10,805 |........... 0 |....... 2,052 |....... 2,460 |..... 113,515 | X X X | - ----------------------------------------------------------------------------------------------------
================================================================================================================== | TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE | | | (Incurred/Premiums Earned) | |------------------------------------------------------------------------------------------------------ | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - ------------------------------------------------------------------------------------------------------------------ 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |........ 39,746 |......... 6,316 |......... 33,430 |.......... 70.7 |.......... 23.6 |........ 113.7 | 3. 1987 |........ 50,078 |......... 5,342 |......... 44,736 |.......... 66.3 |.......... 24.5 |......... 83.3 | 4. 1988 |........ 54,666 |......... 3,214 |......... 51,452 |.......... 64.8 |.......... 15.1 |......... 81.6 | 5. 1989 |........ 61,213 |......... 2,573 |......... 58,640 |.......... 70.8 |.......... 24.2 |......... 77.4 | 6. 1990 |........ 63,276 |......... 3,199 |......... 60,077 |.......... 68.1 |.......... 32.6 |......... 72.3 | 7. 1991 |........ 64,120 |......... 1,609 |......... 62,511 |.......... 68.5 |.......... 36.1 |......... 70.1 | 8. 1992 |........ 62,990 |......... 1,767 |......... 61,223 |.......... 68.1 |.......... 39.3 |......... 69.6 | 9. 1993 |........ 64,483 |........... 655 |......... 63,828 |.......... 68.7 |.......... 11.5 |......... 72.4 | 10. 1994 |........ 72,862 |......... 1,763 |......... 71,099 |.......... 74.6 |.......... 26.0 |......... 78.3 | 11. 1995 |........ 69,234 |......... 2,259 |......... 66,975 |.......... 68.0 |.......... 32.0 |......... 70.7 | - ------------------------------------------------------------------------------------------------------------------ 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------ ================================================================================================ | DISCOUNT FOR TIME | (33) | NET BALANCE SHEET | | VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |---------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - -----------------------------------------------------------------------------------------------| 1. Prior |........... 213 |............. 0 | X X X |........... 363 |............. 4 | 2. 1986 |............. 0 |............. 0 |.......... 0.0 |........... 210 |............ 21 | 3. 1987 |............. 0 |............. 0 |.......... 0.0 |........... 271 |............ 89 | 4. 1988 |............. 0 |............. 0 |.......... 0.0 |........... 882 |........... 129 | 5. 1989 |............ 64 |............. 0 |.......... 0.0 |........... 934 |........... 122 | 6. 1990 |............. 0 |............. 0 |.......... 0.0 |......... 2,421 |........... 311 | 7. 1991 |........... 112 |............. 0 |.......... 0.0 |......... 6,874 |........... 960 | 8. 1992 |............ 15 |............. 0 |.......... 0.0 |......... 9,870 |......... 1,473 | 9. 1993 |............ 56 |............. 0 |.......... 0.0 |........ 15,917 |......... 2,192 | 10. 1994 |............. 0 |............. 0 |.......... 0.0 |........ 25,030 |......... 3,070 | 11. 1995 |............. 0 |............. 0 |.......... 0.0 |........ 37,018 |......... 4,894 | - -----------------------------------------------------------------------------------------------| 12. TOTALS|........... 460 |............. 0 | X X X |........ 99,790 |........ 13,265 | - ------------------------------------------------------------------------------------------------
74 3 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 2 - SUMMARY
================================================================================================================================= (1) | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) |----------------------------------------------------------------------------------------------------------------- Years in Which| (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | Losses Were | | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | | | | | | | | | | - --------------------------------------------------------------------------------------------------------------------------------- 1. Prior ....|...... 10,111 |..... 11,081 |..... 11,549 |..... 11,937 |..... 12,841 |..... 13,086 |..... 12,997 |..... 13,173 | | | | | | | | | | 2. 1986 .....|...... 32,160 |..... 30,778 |..... 29,294 |..... 28,641 |..... 32,113 |..... 30,911 |..... 30,804 |..... 31,010 | | | | | | | | | | 3. 1987 .....| X X X |..... 42,581 |..... 42,809 |..... 41,421 |..... 41,234 |..... 41,628 |..... 41,178 |..... 41,341 | | | | | | | | | | 4. 1988 .....| X X X | X X X |..... 48,102 |..... 48,395 |..... 48,295 |..... 47,285 |..... 47,149 |..... 47,451 | | | | | | | | | | 5. 1989 .....| X X X | X X X | X X X |..... 51,692 |..... 54,858 |..... 54,768 |..... 53,042 |..... 54,268 | | | | | | | | | | 6. 1990 .....| X X X | X X X | X X X | X X X |..... 49,281 |..... 54,127 |..... 55,014 |..... 55,140 | | | | | | | | | | 7. 1991 .....| X X X | X X X | X X X | X X X | X X X |..... 52,154 |..... 57,009 |..... 56,820 | | | | | | | | | | 8. 1992 .....| X X X | X X X | X X X | X X X | X X X | X X X |..... 53,904 |..... 55,862 | | | | | | | | | | 9. 1993 .....| X X X | X X X | X X X | X X X | X X X | X X X | X X X |..... 56,685 | | | | | | | | | | 10. 1994 .....| X X X | X X X | X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | | | 11. 1995 .....| X X X | X X X | X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- ========================================================================= (1) | | DEVELOPMENT | |--------------------------------------------------------| Years in Which| (10) | (11) | (12) | (13) | Losses Were | | | | | Incurred | 1994 | 1995 | One Year | Two Year | | | | | | - ------------------------------------------------------------------------| 1. Prior ....|..... 13,124 |..... 13,062 |........ (62)|........ (111)| | | | | | 2. 1986 .....|..... 31,213 |..... 31,307 |......... 94 |......... 297 | | | | | | 3. 1987 .....|..... 41,735 |..... 41,706 |........ (29)|......... 365 | | | | | | 4. 1988 .....|..... 47,481 |..... 47,665 |........ 184 |......... 214 | | | | | | 5. 1989 .....|..... 54,877 |..... 54,987 |........ 110 |......... 719 | | | | | | 6. 1990 .....|..... 55,406 |..... 56,750 |...... 1,344 |....... 1,610 | | | | | | 7. 1991 .....|..... 57,331 |..... 59,023 |...... 1,692 |....... 2,203 | | | | | | 8. 1992 .....|..... 56,889 |..... 57,718 |........ 829 |....... 1,856 | | | | | | 9. 1993 .....|..... 58,726 |..... 60,363 |...... 1,637 |....... 3,678 | | | | | | 10. 1994 .....|..... 62,016 |..... 67,264 |...... 5,248 | X X X | | | | | | 11. 1995 .....| X X X |..... 63,271 | X X X | X X X | - ------------------------------------------------------------------------| 12. TOTALS |..... 11,047 |...... 10,831 | - -------------------------------------------------------------------------
SCHEDULE P - PART 3 - SUMMARY
================================================================================================================================= (1) | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) |----------------------------------------------------------------------------------------------------------------- Years in Which| (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | Losses Were | | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | | | | | | | | | | - --------------------------------------------------------------------------------------------------------------------------------- 1. Prior ....| 0 0 0 |...... 4,470 |...... 7,166 |...... 8,965 |..... 10,465 |..... 11,173 |..... 11,745 |..... 12,329 | | | | | | | | | | 2. 1986 .....|...... 16,202 |..... 23,095 |..... 24,762 |..... 25,717 |..... 28,863 |..... 29,590 |..... 29,970 |..... 30,442 | | | | | | | | | | 3. 1987 .....| X X X |..... 18,306 |..... 29,907 |..... 31,968 |..... 36,409 |..... 39,393 |..... 39,984 |..... 40,541 | | | | | | | | | | 4. 1988 .....| X X X | X X X |..... 20,462 |..... 32,850 |..... 37,611 |..... 41,430 |..... 43,855 |..... 45,463 | | | | | | | | | | 5. 1989 .....| X X X | X X X | X X X |..... 21,903 |..... 37,318 |..... 43,181 |..... 46,852 |..... 50,403 | | | | | | | | | | 6. 1990 .....| X X X | X X X | X X X | X X X |..... 22,276 |..... 37,020 |..... 42,276 |..... 48,037 | | | | | | | | | | 7. 1991 .....| X X X | X X X | X X X | X X X | X X X |..... 22,100 |..... 36,773 |..... 42,679 | | | | | | | | | | 8. 1992 .....| X X X | X X X | X X X | X X X | X X X | X X X |..... 20,625 |..... 35,311 | | | | | | | | | | 9. 1993 .....| X X X | X X X | X X X | X X X | X X X | X X X | X X X |..... 20,690 | | | | | | | | | | 10. 1994 .....| X X X | X X X | X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | | | 11. 1995 .....| X X X | X X X | X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------------- ========================================================================= (1) | | (12) | (13) | |---------------------------| | | Years in Which| (10) | (11) | Number of | Number of | Losses Were | | | Claims | Claims Closed| Incurred | 1994 | 1995 | Closed With | Without | | | | Loss Payment| Loss Payment | - ------------------------------------------------------------------------| 1. Prior ....|..... 12,554 |..... 12,482 | X X X | X X X | | | | | | 2. 1986 .....|..... 30,951 |..... 31,076 | X X X | X X X | | | | | | 3. 1987 .....|..... 41,180 |..... 41,347 | X X X | X X X | | | | | | 4. 1988 .....|..... 46,199 |..... 46,654 | X X X | X X X | | | | | | 5. 1989 .....|..... 52,562 |..... 53,866 | X X X | X X X | | | | | | 6. 1990 .....|..... 51,616 |..... 54,017 | X X X | X X X | | | | | | 7. 1991 .....|..... 47,322 |..... 51,276 | X X X | X X X | | | | | | 8. 1992 .....|..... 41,970 |..... 46,678 | X X X | X X X | | | | | | 9. 1993 .....|..... 34,392 |..... 42,652 | X X X | X X X | | | | | | 10. 1994 .....|..... 25,946 |..... 39,707 | X X X | X X X | | | | | | 11. 1995 .....| X X X |..... 22,304 | X X X | X X X | - -------------------------------------------------------------------------
SCHEDULE P - PART 4 - SUMMARY
========================================================================================================================== (1) | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) |------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Losses Were | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- 1. Prior .............|......... 1,585 |.......... 912 |.......... 569 |.......... 528 |.......... 479 |.......... 282 | | | | | | | | 2. 1986 ..............|......... 8,387 |........ 3,763 |........ 1,816 |.......... 674 |.......... 636 |.......... 375 | | | | | | | | 3. 1987 ..............| X X X |....... 14,065 |........ 6,491 |........ 5,249 |........ 1,587 |.......... 731 | | | | | | | | 4. 1988 ..............| X X X | X X X |....... 17,330 |........ 8,560 |........ 4,557 |........ 1,372 | | | | | | | | 5. 1989 ..............| X X X | X X X | X X X |....... 17,346 |........ 7,294 |........ 4,371 | | | | | | | | 6. 1990 ..............| X X X | X X X | X X X | X X X |....... 14,601 |........ 6,808 | | | | | | | | 7. 1991 ..............| X X X | X X X | X X X | X X X | X X X |....... 15,406 | | | | | | | | 8. 1992 ..............| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | 9. 1993 ..............| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | 10. 1994 ..............| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | 11. 1995 ..............| X X X | X X X | X X X | X X X | X X X | X X X | - -------------------------------------------------------------------------------------------------------------------------- ========================================================================================= (1) | | |---------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Losses Were | | | | | Incurred | 1992 | 1993 | 1994 | 1995 | | | | | | - ----------------------------------------------------------------------------------------| 1. Prior .............|.......... 161 |........... 96 |........... 57 |........... 72 | | | | | | 2. 1986 ..............|.......... 180 |........... 83 |........... 72 |........... 66 | | | | | | 3. 1987 ..............|.......... 342 |.......... 200 |.......... 190 |.......... 142 | | | | | | 4. 1988 ..............|.......... 532 |.......... 418 |.......... 321 |.......... 318 | | | | | | 5. 1989 ..............|........ 1,248 |.......... 731 |.......... 408 |.......... 351 | | | | | | 6. 1990 ..............|........ 5,080 |........ 1,605 |.......... 796 |.......... 614 | | | | | | 7. 1991 ..............|........ 7,729 |........ 5,063 |........ 1,744 |........ 1,710 | | | | | | 8. 1992 ..............|....... 15,726 |........ 7,761 |........ 5,296 |........ 2,801 | | | | | | 9. 1993 ..............| X X X |....... 18,239 |........ 6,916 |........ 4,499 | | | | | | 10. 1994 ..............| X X X | X X X |....... 16,335 |....... 11,033 | | | | | | 11. 1995 ..............| X X X | X X X | X X X |....... 22,482 | - -----------------------------------------------------------------------------------------
75 4 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | Ceded | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1986 |........ 4,197 |........ 2,075 |........ 2,122 |........ 2,450 |.......... 557 |........... 138 |............. 0 | 3. 1987 |........ 5,072 |........ 1,584 |........ 3,488 |........ 2,674 |.......... 461 |........... 188 |............. 0 | 4. 1988 |........ 5,941 |........ 1,613 |........ 4,328 |........ 3,320 |.......... 368 |........... 317 |............. 0 | 5. 1989 |........ 6,074 |.......... 653 |........ 5,421 |........ 3,678 |.......... 262 |........... 253 |............. 0 | 6. 1990 |........ 5,961 |.......... 531 |........ 5,430 |........ 2,827 |........... 74 |........... 195 |............. 0 | 7. 1991 |........ 6,001 |.......... 161 |........ 5,840 |........ 3,122 |........... 14 |........... 233 |............. 0 | 8. 1992 |........ 5,675 |.......... 184 |........ 5,491 |........ 2,497 |............ 0 |........... 131 |............. 0 | 9. 1993 |........ 5,755 |.......... 373 |........ 5,382 |........ 3,075 |............ 0 |........... 159 |............ (1)| 10. 1994 |........ 5,994 |.......... 449 |........ 5,545 |........ 4,249 |............ 0 |........... 198 |............ (1)| 11. 1995 |........ 6,795 |.......... 457 |........ 6,338 |........ 2,187 |............ 0 |............ 77 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |....... 30,079 |........ 1,736 |......... 1,889 |............ (2)| | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 0 |............ 0 | X X X | 2. 1986 |............. 0 |........... 140 |........ 2,171 |........ 1,654 | 3. 1987 |............. 3 |........... 184 |........ 2,585 |........ 1,936 | 4. 1988 |........... 395 |........... 312 |........ 3,581 |........ 2,030 | 5. 1989 |............ 25 |........... 260 |........ 3,929 |........ 2,178 | 6. 1990 |............ 46 |........... 180 |........ 3,128 |........ 1,972 | 7. 1991 |............ 32 |........... 213 |........ 3,554 |........ 2,559 | 8. 1992 |............ 49 |........... 183 |........ 2,811 |........ 2,039 | 9. 1993 |............. 4 |........... 207 |........ 3,442 |........ 1,552 | 10. 1994 |............. 4 |........... 261 |........ 4,709 |........ 2,088 | 11. 1995 |............. 3 |........... 220 |........ 2,484 |........ 1,245 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|........... 561 |......... 2,160 |....... 32,394 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 1 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |.......... 34 |........... 7 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |.......... 24 |........... 2 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 9 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |......... 286 |........... 3 |........... 9 |........... 1 |........... 0 |........... 0 | 8. 1992 |......... 106 |........... 0 |.......... 65 |........... 1 |........... 0 |........... 0 | 9. 1993 |......... 665 |........... 0 |......... 122 |........... 2 |........... 0 |........... 0 | 10. 1994 |......... 424 |........... 0 |......... 268 |........... 5 |........... 0 |........... 0 | 11. 1995 |....... 1,107 |........... 0 |......... 820 |........... 5 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|....... 2,656 |.......... 12 |....... 1,284 |.......... 14 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 1 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 27 |........... 1 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 22 |........... 1 | 6. 1990 |.......... 11 |........... 0 |........... 1 |........... 0 |.......... 20 |........... 6 | 7. 1991 |.......... 12 |........... 0 |........... 1 |........... 6 |......... 309 |.......... 11 | 8. 1992 |.......... 35 |........... 0 |........... 1 |.......... 20 |......... 225 |........... 9 | 9. 1993 |.......... 73 |........... 0 |........... 3 |.......... 18 |......... 876 |.......... 19 | 10. 1994 |.......... 71 |........... 0 |........... 6 |.......... 15 |......... 773 |.......... 39 | 11. 1995 |......... 230 |........... 0 |.......... 11 |.......... 74 |....... 2,226 |......... 225 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|......... 432 |........... 0 |.......... 23 |......... 133 |....... 4,479 |......... 311 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |......... 2,728 |.......... 557 |........ 2,171 |......... 65.0 |......... 26.8 |......... 102.3 | 3. 1987 |......... 3,047 |.......... 461 |........ 2,586 |......... 60.1 |......... 29.1 |.......... 74.1 | 4. 1988 |......... 3,984 |.......... 376 |........ 3,608 |......... 67.1 |......... 23.3 |.......... 83.4 | 5. 1989 |......... 4,215 |.......... 264 |........ 3,951 |......... 69.4 |......... 40.4 |.......... 72.9 | 6. 1990 |......... 3,222 |........... 74 |........ 3,148 |......... 54.1 |......... 13.9 |.......... 58.0 | 7. 1991 |......... 3,881 |........... 18 |........ 3,863 |......... 64.7 |......... 11.2 |.......... 66.1 | 8. 1992 |......... 3,038 |............ 1 |........ 3,037 |......... 53.5 |.......... 0.5 |.......... 55.3 | 9. 1993 |......... 4,319 |............ 1 |........ 4,318 |......... 75.0 |.......... 0.3 |.......... 80.2 | 10. 1994 |......... 5,485 |............ 4 |........ 5,481 |......... 91.5 |.......... 0.9 |.......... 98.8 | 11. 1995 |......... 4,714 |............ 5 |........ 4,709 |......... 69.4 |.......... 1.1 |.......... 74.3 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 1 |............. 0 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |............ 27 |............. 0 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |............ 22 |............. 0 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 9 |............ 11 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |........... 291 |............ 18 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |........... 170 |............ 55 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |........... 785 |............ 91 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |........... 687 |............ 86 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 1,922 |........... 304 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |......... 3,914 |........... 565 | | | | | | | - ----------------------------------------------------------------------------------------------
76 5 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1B PRIVATE PASSENGER AUTO LIABILITY/MEDICAL ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |.......... (15)|........... 11 |............. 3 |............. 0 | 2. 1986 |....... 22,125 |....... 10,125 |....... 12,000 |....... 17,145 |........ 3,898 |........... 741 |............. 0 | 3. 1987 |....... 24,981 |........ 7,161 |....... 17,820 |....... 19,943 |........ 2,914 |........... 749 |............. 0 | 4. 1988 |....... 26,383 |........ 6,236 |....... 20,147 |....... 20,032 |........ 1,481 |........... 938 |............. 0 | 5. 1989 |....... 26,056 |........ 2,461 |....... 23,595 |....... 22,740 |........ 1,004 |......... 1,055 |............. 0 | 6. 1990 |....... 27,123 |........ 1,876 |....... 25,247 |....... 19,060 |.......... 370 |........... 581 |............. 0 | 7. 1991 |....... 24,519 |.......... 190 |....... 24,329 |....... 15,211 |........... 44 |........... 680 |............. 0 | 8. 1992 |....... 24,248 |.......... 306 |....... 23,942 |....... 16,035 |.......... 304 |........... 607 |............. 0 | 9. 1993 |....... 23,269 |.......... 421 |....... 22,848 |....... 13,414 |........... 30 |........... 568 |............ (1)| 10. 1994 |....... 22,727 |.......... 375 |....... 22,352 |....... 10,081 |........... 35 |........... 397 |............. 0 | 11. 1995 |....... 22,202 |.......... 385 |....... 21,817 |........ 4,566 |............ 8 |........... 192 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |...... 158,212 |....... 10,099 |......... 6,511 |............ (1)| | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| 1. Prior |............. 5 |............ (1)|.......... (24)| X X X | 2. 1986 |............ 17 |......... 1,158 |....... 15,146 |........ 9,145 | 3. 1987 |............ 24 |......... 1,547 |....... 19,325 |........ 9,765 | 4. 1988 |............ 34 |......... 1,472 |....... 20,961 |........ 9,410 | 5. 1989 |............ 49 |......... 1,443 |....... 24,234 |........ 8,941 | 6. 1990 |............ 75 |......... 1,308 |....... 20,579 |........ 6,933 | 7. 1991 |............ 85 |......... 1,151 |....... 16,998 |........ 5,935 | 8. 1992 |............ 87 |......... 1,144 |....... 17,482 |........ 5,703 | 9. 1993 |............ 66 |........... 948 |....... 14,901 |........ 5,192 | 10. 1994 |............ 67 |......... 1,017 |....... 11,460 |........ 4,682 | 11. 1995 |............ 17 |........... 670 |........ 5,420 |........ 3,654 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|........... 526 |........ 11,857 |...... 166,482 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |.......... 25 |.......... 41 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |......... 101 |.......... 38 |........... 6 |........... 0 |........... 0 |........... 0 | 3. 1987 |.......... 28 |.......... 38 |.......... 17 |........... 2 |........... 0 |........... 0 | 4. 1988 |......... 194 |.......... 36 |.......... 54 |........... 4 |........... 0 |........... 0 | 5. 1989 |......... 126 |.......... 13 |.......... 21 |........... 3 |........... 0 |........... 0 | 6. 1990 |......... 255 |.......... 11 |.......... 18 |........... 7 |........... 0 |........... 0 | 7. 1991 |....... 1,525 |........... 5 |......... 126 |.......... 38 |........... 0 |........... 0 | 8. 1992 |....... 2,027 |........... 0 |......... 165 |.......... 20 |........... 0 |........... 0 | 9. 1993 |....... 3,920 |.......... 22 |......... 113 |.......... 19 |........... 0 |........... 0 | 10. 1994 |....... 4,479 |.......... 12 |....... 1,191 |.......... 54 |........... 0 |........... 0 | 11. 1995 |....... 6,505 |......... 165 |....... 4,366 |.......... 37 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|...... 19,185 |......... 381 |....... 6,077 |......... 184 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | (21) | (22) | (23) | (24) | ------------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | ------------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |......... (16)|........... 1 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 69 |........... 2 | 3. 1987 |.......... 15 |........... 0 |........... 2 |........... 0 |.......... 20 |........... 8 | 4. 1988 |.......... 16 |........... 0 |.......... 29 |........... 0 |......... 224 |.......... 18 | 5. 1989 |.......... 20 |........... 0 |........... 4 |........... 0 |......... 151 |.......... 26 | 6. 1990 |......... 165 |........... 0 |........... 3 |........... 0 |......... 420 |.......... 35 | 7. 1991 |......... 237 |........... 0 |........... 4 |.......... 48 |....... 1,893 |.......... 85 | 8. 1992 |......... 277 |........... 0 |........... 9 |.......... 56 |....... 2,505 |......... 136 | 9. 1993 |......... 447 |........... 0 |.......... 18 |......... 127 |....... 4,566 |......... 209 | 10. 1994 |......... 609 |........... 0 |.......... 37 |......... 126 |....... 6,339 |......... 393 | 11. 1995 |......... 930 |........... 0 |.......... 69 |......... 333 |...... 11,932 |....... 1,058 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|....... 2,716 |........... 0 |......... 175 |......... 690 |...... 28,103 |....... 1,971 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |........ 19,151 |........ 3,936 |....... 15,215 |......... 86.6 |......... 38.9 |......... 126.8 | 3. 1987 |........ 22,299 |........ 2,955 |....... 19,344 |......... 89.3 |......... 41.3 |......... 108.6 | 4. 1988 |........ 22,707 |........ 1,521 |....... 21,186 |......... 86.1 |......... 24.4 |......... 105.2 | 5. 1989 |........ 25,405 |........ 1,020 |....... 24,385 |......... 97.5 |......... 41.4 |......... 103.3 | 6. 1990 |........ 21,388 |.......... 388 |....... 21,000 |......... 78.9 |......... 20.7 |.......... 83.2 | 7. 1991 |........ 18,977 |........... 88 |....... 18,889 |......... 77.4 |......... 46.3 |.......... 77.6 | 8. 1992 |........ 20,309 |.......... 324 |....... 19,985 |......... 83.8 |........ 105.9 |.......... 83.5 | 9. 1993 |........ 19,536 |........... 70 |....... 19,466 |......... 84.0 |......... 16.6 |.......... 85.2 | 10. 1994 |........ 17,901 |.......... 100 |....... 17,801 |......... 78.8 |......... 26.7 |.......... 79.6 | 11. 1995 |........ 17,563 |.......... 211 |....... 17,352 |......... 79.1 |......... 54.8 |.......... 79.5 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |........... (16)|............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 69 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 5 |............ 15 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 208 |............ 16 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |........... 131 |............ 20 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 255 |........... 165 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |......... 1,608 |........... 285 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |......... 2,172 |........... 333 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |......... 3,992 |........... 574 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 5,604 |........... 735 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |........ 10,669 |......... 1,263 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |........ 24,697 |......... 3,406 | | | | | | | - ----------------------------------------------------------------------------------------------
77 6 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1C COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |........... 23 |............ 3 |............ 21 |............. 0 | 2. 1986 |........ 2,085 |........ 1,123 |.......... 962 |........ 2,228 |.......... 137 |........... 163 |............. 0 | 3. 1987 |........ 5,446 |........ 1,322 |........ 4,124 |........ 3,464 |.......... 308 |........... 271 |............. 0 | 4. 1988 |........ 6,491 |........ 1,545 |........ 4,946 |........ 3,771 |.......... 361 |........... 210 |............. 0 | 5. 1989 |........ 7,275 |.......... 857 |........ 6,418 |........ 3,851 |.......... 277 |........... 227 |............. 0 | 6. 1990 |........ 9,082 |.......... 876 |........ 8,206 |........ 4,998 |.......... 145 |........... 312 |............. 0 | 7. 1991 |....... 10,710 |.......... 433 |....... 10,277 |........ 5,960 |........... 47 |........... 443 |............. 0 | 8. 1992 |....... 11,806 |.......... 640 |....... 11,166 |........ 5,833 |............ 0 |........... 341 |............. 0 | 9. 1993 |....... 12,330 |.......... 498 |....... 11,832 |........ 5,362 |............ 0 |........... 380 |............. 0 | 10. 1994 |....... 13,087 |.......... 429 |....... 12,658 |........ 3,045 |............ 0 |........... 274 |............. 0 | 11. 1995 |....... 13,439 |.......... 418 |....... 13,021 |........ 1,463 |............ 0 |........... 130 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |....... 39,998 |........ 1,278 |......... 2,772 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 1 |........... 42 | X X X | 2. 1986 |............. 0 |........... 161 |........ 2,415 |.......... 655 | 3. 1987 |............. 2 |........... 226 |........ 3,653 |........ 1,099 | 4. 1988 |............. 0 |........... 219 |........ 3,839 |........ 1,130 | 5. 1989 |............. 1 |........... 216 |........ 4,017 |........ 1,132 | 6. 1990 |............. 6 |........... 296 |........ 5,461 |........ 1,305 | 7. 1991 |............ 45 |........... 348 |........ 6,704 |........ 1,380 | 8. 1992 |............. 8 |........... 378 |........ 6,552 |........ 1,304 | 9. 1993 |............. 9 |........... 410 |........ 6,152 |........ 1,305 | 10. 1994 |............ 10 |........... 400 |........ 3,719 |........ 1,389 | 11. 1995 |............. 1 |........... 288 |........ 1,881 |........ 1,112 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|............ 82 |......... 2,943 |....... 44,435 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |........... 4 |........... 7 |........... 3 |........... 0 |........... 0 |........... 0 | 2. 1986 |.......... 10 |........... 0 |.......... 10 |........... 0 |........... 0 |........... 0 | 3. 1987 |.......... 13 |........... 0 |.......... 13 |........... 3 |........... 0 |........... 0 | 4. 1988 |......... 113 |........... 0 |.......... 18 |........... 5 |........... 0 |........... 0 | 5. 1989 |.......... 28 |........... 0 |.......... 38 |........... 7 |........... 0 |........... 0 | 6. 1990 |......... 211 |.......... 19 |.......... 42 |.......... 13 |........... 0 |........... 0 | 7. 1991 |......... 526 |........... 1 |......... 117 |.......... 61 |........... 0 |........... 0 | 8. 1992 |....... 1,188 |........... 0 |......... 343 |.......... 84 |........... 0 |........... 0 | 9. 1993 |....... 2,208 |........... 0 |......... 672 |.......... 56 |........... 0 |........... 0 | 10. 1994 |....... 2,463 |.......... 70 |....... 3,132 |......... 123 |........... 0 |........... 0 | 11. 1995 |....... 2,944 |........... 0 |....... 4,255 |......... 135 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|....... 9,708 |.......... 97 |....... 8,643 |......... 487 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |.......... 19 |........... 0 |........... 0 |........... 0 |.......... 39 |........... 0 | 3. 1987 |.......... 21 |........... 0 |........... 0 |........... 0 |.......... 44 |........... 0 | 4. 1988 |.......... 29 |........... 0 |........... 0 |........... 0 |......... 155 |........... 2 | 5. 1989 |.......... 48 |........... 0 |........... 2 |........... 0 |......... 107 |........... 0 | 6. 1990 |.......... 68 |........... 0 |........... 0 |........... 0 |......... 289 |........... 5 | 7. 1991 |.......... 85 |........... 0 |........... 0 |.......... 52 |......... 718 |.......... 20 | 8. 1992 |......... 182 |........... 0 |........... 1 |.......... 68 |....... 1,697 |.......... 52 | 9. 1993 |......... 246 |........... 0 |........... 1 |.......... 61 |....... 3,131 |.......... 59 | 10. 1994 |......... 437 |........... 0 |........... 2 |......... 100 |....... 5,939 |......... 123 | 11. 1995 |......... 730 |........... 0 |........... 4 |......... 192 |....... 7,986 |......... 281 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|....... 1,865 |........... 0 |.......... 10 |......... 473 |...... 20,105 |......... 542 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |......... 2,593 |.......... 137 |........ 2,456 |........ 124.4 |......... 12.2 |......... 255.3 | 3. 1987 |......... 4,008 |.......... 311 |........ 3,697 |......... 73.6 |......... 23.5 |.......... 89.6 | 4. 1988 |......... 4,361 |.......... 366 |........ 3,995 |......... 67.2 |......... 23.7 |.......... 80.8 | 5. 1989 |......... 4,409 |.......... 284 |........ 4,125 |......... 60.6 |......... 33.1 |.......... 64.3 | 6. 1990 |......... 5,927 |.......... 178 |........ 5,749 |......... 65.3 |......... 20.3 |.......... 70.1 | 7. 1991 |......... 7,531 |.......... 110 |........ 7,421 |......... 70.3 |......... 25.4 |.......... 72.2 | 8. 1992 |......... 8,332 |........... 84 |........ 8,248 |......... 70.6 |......... 13.1 |.......... 73.9 | 9. 1993 |......... 9,339 |........... 56 |........ 9,283 |......... 75.7 |......... 11.2 |.......... 78.5 | 10. 1994 |......... 9,851 |.......... 193 |........ 9,658 |......... 75.3 |......... 45.0 |.......... 76.3 | 11. 1995 |........ 10,002 |.......... 135 |........ 9,867 |......... 74.4 |......... 32.3 |.......... 75.8 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 20 |............ 19 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............ 23 |............ 21 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 126 |............ 29 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |............ 59 |............ 48 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 221 |............ 68 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |........... 581 |........... 137 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |......... 1,447 |........... 250 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |......... 2,824 |........... 307 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 5,402 |........... 537 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 7,064 |........... 922 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |........ 17,767 |......... 2,338 | | | | | | | - ----------------------------------------------------------------------------------------------
78 7 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1D - WORKERS' COMPENSATION ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |........... 77 |........... 48 |............. 2 |............. 0 | 2. 1986 |.......... 973 |........... 79 |.......... 894 |.......... 633 |........... 39 |............ 21 |............. 2 | 3. 1987 |........ 1,952 |........... 50 |........ 1,902 |.......... 937 |............ 0 |............ 62 |............. 0 | 4. 1988 |........ 3,755 |........... 81 |........ 3,674 |........ 1,764 |............ 0 |........... 145 |............. 0 | 5. 1989 |........ 4,196 |........... 85 |........ 4,111 |........ 3,406 |.......... 222 |........... 291 |............. 2 | 6. 1990 |........ 4,997 |........... 98 |........ 4,899 |........ 3,764 |............ 1 |........... 221 |............. 0 | 7. 1991 |........ 5,472 |.......... 179 |........ 5,293 |........ 3,032 |............ 0 |........... 184 |............. 0 | 8. 1992 |........ 6,238 |.......... 304 |........ 5,934 |........ 4,116 |.......... 601 |........... 191 |............ 16 | 9. 1993 |........ 8,386 |.......... 452 |........ 7,934 |........ 3,881 |............ 0 |........... 182 |............ (1)| 10. 1994 |....... 10,750 |.......... 789 |........ 9,961 |........ 2,623 |............ 0 |........... 137 |............. 0 | 11. 1995 |....... 12,597 |.......... 859 |....... 11,738 |........ 1,519 |............ 0 |........... 154 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |....... 25,752 |.......... 911 |......... 1,590 |............ 19 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............ 24 |............. 2 |........... 33 | X X X | 2. 1986 |............. 0 |............ 86 |.......... 699 |.......... 175 | 3. 1987 |............. 0 |........... 110 |........ 1,109 |.......... 390 | 4. 1988 |............ 20 |........... 114 |........ 2,023 |.......... 521 | 5. 1989 |............. 0 |........... 168 |........ 3,641 |.......... 516 | 6. 1990 |............. 0 |........... 178 |........ 4,162 |.......... 533 | 7. 1991 |............. 2 |........... 171 |........ 3,387 |.......... 439 | 8. 1992 |............ 57 |........... 227 |........ 3,917 |.......... 469 | 9. 1993 |............ 14 |........... 259 |........ 4,323 |.......... 579 | 10. 1994 |............ 31 |........... 289 |........ 3,049 |.......... 631 | 11. 1995 |............. 1 |........... 316 |........ 1,989 |.......... 565 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|........... 149 |......... 1,920 |....... 28,332 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |......... 860 |......... 454 |.......... 33 |........... 0 |........... 0 |........... 0 | 2. 1986 |.......... 11 |........... 0 |.......... 17 |........... 0 |........... 0 |........... 0 | 3. 1987 |.......... 86 |........... 0 |.......... 17 |........... 1 |........... 0 |........... 0 | 4. 1988 |......... 103 |........... 0 |.......... 40 |........... 2 |........... 0 |........... 0 | 5. 1989 |......... 163 |........... 0 |.......... 59 |........... 4 |........... 0 |........... 0 | 6. 1990 |......... 703 |........... 0 |.......... 89 |........... 7 |........... 0 |........... 0 | 7. 1991 |....... 1,724 |......... 339 |......... 157 |.......... 58 |........... 0 |........... 0 | 8. 1992 |....... 1,756 |......... 249 |......... 228 |.......... 68 |........... 0 |........... 0 | 9. 1993 |....... 1,802 |........... 0 |......... 334 |......... 114 |........... 0 |........... 0 | 10. 1994 |....... 3,251 |........... 0 |....... 1,808 |......... 271 |........... 0 |........... 0 | 11. 1995 |....... 3,221 |........... 0 |....... 4,386 |......... 284 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|...... 13,680 |....... 1,042 |....... 7,168 |......... 809 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |......... 439 |........... 1 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 28 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |......... 102 |........... 4 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |......... 141 |........... 7 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |......... 218 |.......... 12 | 6. 1990 |.......... 16 |........... 0 |........... 0 |........... 0 |......... 801 |.......... 26 | 7. 1991 |.......... 63 |........... 0 |........... 5 |........... 0 |....... 1,547 |.......... 30 | 8. 1992 |.......... 89 |........... 0 |.......... 10 |.......... 17 |....... 1,773 |.......... 54 | 9. 1993 |......... 228 |........... 0 |.......... 19 |.......... 52 |....... 2,302 |.......... 93 | 10. 1994 |......... 389 |........... 0 |.......... 40 |.......... 74 |....... 5,251 |......... 156 | 11. 1995 |......... 476 |........... 0 |.......... 74 |......... 101 |....... 7,900 |......... 248 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|....... 1,261 |........... 0 |......... 148 |......... 244 |...... 20,502 |......... 631 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |........... 769 |........... 41 |.......... 728 |......... 79.0 |......... 51.9 |.......... 81.4 | 3. 1987 |......... 1,212 |............ 1 |........ 1,211 |......... 62.1 |.......... 2.0 |.......... 63.7 | 4. 1988 |......... 2,166 |............ 2 |........ 2,164 |......... 57.7 |.......... 2.5 |.......... 58.9 | 5. 1989 |......... 4,088 |.......... 228 |........ 3,860 |......... 97.4 |........ 268.2 |.......... 93.9 | 6. 1990 |......... 4,971 |............ 8 |........ 4,963 |......... 99.5 |.......... 8.2 |......... 101.3 | 7. 1991 |......... 5,331 |.......... 397 |........ 4,934 |......... 97.4 |........ 221.8 |.......... 93.2 | 8. 1992 |......... 6,625 |.......... 934 |........ 5,691 |........ 106.2 |........ 307.2 |.......... 95.9 | 9. 1993 |......... 6,740 |.......... 114 |........ 6,626 |......... 80.4 |......... 25.2 |.......... 83.5 | 10. 1994 |......... 8,572 |.......... 271 |........ 8,301 |......... 79.7 |......... 34.3 |.......... 83.3 | 11. 1995 |........ 10,172 |.......... 284 |........ 9,888 |......... 80.7 |......... 33.1 |.......... 84.2 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |.......... 213 |............ 0 | X X X |........... 226 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 28 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |........... 102 |............. 0 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 141 |............. 0 | 5. 1989 |........... 64 |............ 0 |.......... 0.0 |........... 154 |............. 0 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 785 |............ 16 | 7. 1991 |.......... 112 |............ 0 |.......... 0.0 |......... 1,372 |............ 63 | 8. 1992 |........... 15 |............ 0 |.......... 0.0 |......... 1,652 |........... 106 | 9. 1993 |........... 56 |............ 0 |.......... 0.0 |......... 1,966 |........... 280 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 4,788 |........... 463 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 7,323 |........... 577 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|.......... 460 |............ 0 | X X X |........ 18,537 |......... 1,505 | | | | | | | - ----------------------------------------------------------------------------------------------
79 8 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1E - COMMERCIAL MULTIPLE PERIL ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |........... 89 |.......... 286 |............ 35 |............. 0 | 2. 1986 |........ 5,758 |........ 3,113 |........ 2,645 |........ 2,085 |.......... 556 |........... 434 |............. 0 | 3. 1987 |....... 10,867 |........ 3,568 |........ 7,299 |........ 3,788 |.......... 840 |........... 488 |............. 0 | 4. 1988 |....... 12,286 |........ 3,903 |........ 8,383 |........ 3,331 |.......... 411 |........... 352 |............. 0 | 5. 1989 |....... 13,211 |........ 2,277 |....... 10,934 |........ 5,254 |.......... 454 |........... 631 |............. 0 | 6. 1990 |....... 15,525 |........ 2,430 |....... 13,095 |........ 8,546 |........ 1,087 |........... 933 |............ 38 | 7. 1991 |....... 17,516 |........ 1,288 |....... 16,228 |........ 9,837 |.......... 712 |........... 923 |............. 6 | 8. 1992 |....... 17,563 |........ 1,201 |....... 16,362 |........ 7,574 |........... 42 |........... 731 |............. 0 | 9. 1993 |....... 18,952 |........ 1,767 |....... 17,185 |........ 6,660 |........... 24 |........... 664 |............ (2)| 10. 1994 |....... 20,791 |........ 2,220 |....... 18,571 |....... 11,194 |.......... 562 |........... 555 |............. 2 | 11. 1995 |....... 22,405 |........ 2,365 |....... 20,040 |........ 5,197 |.......... 379 |........... 163 |............. 1 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |....... 63,555 |........ 5,353 |......... 5,909 |............ 45 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............ (7)|......... (169)| X X X | 2. 1986 |............ 64 |........... 110 |........ 2,073 |.......... 832 | 3. 1987 |........... 102 |........... 229 |........ 3,665 |........ 1,132 | 4. 1988 |......... 1,545 |........... 314 |........ 3,586 |........ 1,232 | 5. 1989 |............ 79 |........... 338 |........ 5,769 |........ 1,404 | 6. 1990 |........... 136 |........... 416 |........ 8,770 |........ 1,796 | 7. 1991 |........... 148 |........... 563 |....... 10,605 |........ 2,247 | 8. 1992 |........... 144 |........... 521 |........ 8,784 |........ 2,241 | 9. 1993 |........... 206 |........... 533 |........ 7,835 |........ 2,330 | 10. 1994 |........... 199 |........... 721 |....... 11,906 |........ 2,592 | 11. 1995 |............ 77 |........... 625 |........ 5,605 |........ 1,696 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|......... 2,700 |......... 4,363 |....... 68,429 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |......... 229 |.......... 50 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |.......... 45 |.......... 13 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |......... 168 |.......... 58 |.......... 24 |.......... 13 |........... 0 |........... 0 | 4. 1988 |.......... 82 |.......... 14 |.......... 69 |.......... 21 |........... 0 |........... 0 | 5. 1989 |......... 120 |........... 5 |......... 103 |.......... 49 |........... 0 |........... 0 | 6. 1990 |......... 629 |.......... 65 |......... 109 |.......... 84 |........... 0 |........... 0 | 7. 1991 |....... 1,535 |.......... 45 |......... 262 |.......... 83 |........... 0 |........... 0 | 8. 1992 |....... 1,321 |........... 0 |......... 487 |......... 120 |........... 0 |........... 0 | 9. 1993 |....... 2,621 |........... 0 |......... 486 |......... 232 |........... 0 |........... 0 | 10. 1994 |....... 4,499 |........... 0 |......... 657 |......... 446 |........... 0 |........... 0 | 11. 1995 |....... 3,882 |......... 471 |....... 2,747 |......... 566 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|...... 15,131 |......... 721 |....... 4,944 |....... 1,614 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |......... 179 |........... 1 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 32 |.......... 12 | 3. 1987 |........... 7 |........... 0 |........... 2 |........... 0 |......... 128 |........... 7 | 4. 1988 |.......... 46 |........... 0 |.......... 29 |........... 0 |......... 162 |........... 6 | 5. 1989 |........... 2 |........... 0 |........... 7 |........... 0 |......... 171 |.......... 13 | 6. 1990 |........... 5 |........... 0 |.......... 17 |........... 0 |......... 594 |.......... 33 | 7. 1991 |.......... 29 |........... 0 |.......... 24 |........... 0 |....... 1,698 |.......... 53 | 8. 1992 |......... 188 |........... 0 |.......... 51 |.......... 25 |....... 1,901 |.......... 79 | 9. 1993 |......... 316 |........... 0 |.......... 97 |.......... 55 |....... 3,246 |......... 147 | 10. 1994 |......... 467 |........... 0 |......... 202 |.......... 29 |....... 5,206 |......... 239 | 11. 1995 |......... 965 |........... 0 |......... 379 |.......... 95 |....... 6,652 |......... 423 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|....... 2,025 |........... 0 |......... 808 |......... 204 |...... 19,969 |....... 1,013 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |......... 2,674 |.......... 570 |........ 2,104 |......... 46.4 |......... 18.3 |.......... 79.5 | 3. 1987 |......... 4,703 |.......... 912 |........ 3,791 |......... 43.3 |......... 25.6 |.......... 51.9 | 4. 1988 |......... 4,194 |.......... 446 |........ 3,748 |......... 34.1 |......... 11.4 |.......... 44.7 | 5. 1989 |......... 6,448 |.......... 509 |........ 5,939 |......... 48.8 |......... 22.4 |.......... 54.3 | 6. 1990 |........ 10,638 |........ 1,274 |........ 9,364 |......... 68.5 |......... 52.4 |.......... 71.5 | 7. 1991 |........ 13,150 |.......... 846 |....... 12,304 |......... 75.1 |......... 65.7 |.......... 75.8 | 8. 1992 |........ 10,848 |.......... 162 |....... 10,686 |......... 61.8 |......... 13.5 |.......... 65.3 | 9. 1993 |........ 11,337 |.......... 254 |....... 11,083 |......... 59.8 |......... 14.4 |.......... 64.5 | 10. 1994 |........ 18,122 |........ 1,010 |....... 17,112 |......... 87.2 |......... 45.5 |.......... 92.1 | 11. 1995 |........ 13,675 |........ 1,418 |....... 12,257 |......... 61.0 |......... 60.0 |.......... 61.2 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |........... 179 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 32 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |........... 121 |............. 7 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 116 |............ 46 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |........... 169 |............. 2 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 589 |............. 5 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |......... 1,669 |............ 29 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |......... 1,688 |........... 213 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |......... 2,875 |........... 371 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 4,710 |........... 496 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 5,592 |......... 1,060 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |........ 17,740 |......... 2,229 | | | | | | | - ----------------------------------------------------------------------------------------------
80 9 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1F - SECTION 1 MEDICAL MALPRACTICE - OCCURRENCE ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 0 |............ 0 | X X X | 2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 | 3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 | 4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 | 5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 | 6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 | 7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 | 8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 | 9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 | 10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 | 11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|............. 0 |............. 0 |............ 0 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 | | | | | | | - ----------------------------------------------------------------------------------------------
81 10 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1F - SECTION 2 MEDICAL MALPRACTICE - CLAIMS-MADE ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 0 |............ 0 | X X X | 2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 | 3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 | 4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 | 5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 | 6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 | 7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 | 8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 | 9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 | 10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 | 11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|............. 0 |............. 0 |............ 0 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 | | | | | | | - ----------------------------------------------------------------------------------------------
82 11 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1G - SPECIAL LIABILITY (OCEAN, MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 0 |............ 0 | X X X | 2. 1986 |............. 0 |............. 0 |............ 0 | X X X | 3. 1987 |............. 0 |............. 0 |............ 0 | X X X | 4. 1988 |............. 0 |............. 0 |............ 0 | X X X | 5. 1989 |............. 0 |............. 0 |............ 0 | X X X | 6. 1990 |............. 0 |............. 0 |............ 0 | X X X | 7. 1991 |............. 0 |............. 0 |............ 0 | X X X | 8. 1992 |............. 0 |............. 0 |............ 0 | X X X | 9. 1993 |............. 0 |............. 0 |............ 0 | X X X | 10. 1994 |............. 0 |............. 0 |............ 0 | X X X | 11. 1995 |............. 0 |............. 0 |............ 0 | X X X | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|............. 0 |............. 0 |............ 0 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 | | | | | | | - ----------------------------------------------------------------------------------------------
83 12 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1H - SECTION 1 OTHER LIABILITY - OCCURRENCE ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |........... 46 |........... 16 |............ 10 |............. 0 | 2. 1986 |........ 4,509 |........ 2,797 |........ 1,712 |........ 1,384 |.......... 429 |........... 372 |............. 0 | 3. 1987 |........ 7,091 |........ 2,294 |........ 4,797 |........ 1,800 |.......... 348 |........... 280 |............. 0 | 4. 1988 |........ 8,132 |........ 2,946 |........ 5,186 |........ 2,004 |.......... 287 |........... 431 |............. 0 | 5. 1989 |........ 9,072 |........ 2,348 |........ 6,724 |........ 2,254 |.......... 174 |........... 451 |............. 0 | 6. 1990 |....... 10,341 |........ 2,556 |........ 7,785 |........ 3,554 |.......... 668 |......... 1,553 |........... 554 | 7. 1991 |....... 10,546 |........ 1,998 |........ 8,548 |........ 2,853 |........... 19 |........... 398 |............. 0 | 8. 1992 |........ 9,740 |........ 1,583 |........ 8,157 |........ 1,421 |............ 0 |........... 362 |............. 0 | 9. 1993 |........ 9,051 |........ 1,635 |........ 7,416 |........ 1,075 |............ 0 |........... 175 |............. 0 | 10. 1994 |........ 9,148 |........ 1,882 |........ 7,266 |.......... 873 |............ 0 |............ 72 |............. 0 | 11. 1995 |........ 8,729 |........ 1,981 |........ 6,748 |.......... 411 |............ 0 |............ 27 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |....... 17,675 |........ 1,941 |......... 4,131 |........... 554 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 2 |........... 42 | X X X | 2. 1986 |............. 0 |............ 78 |........ 1,405 |.......... 489 | 3. 1987 |............. 0 |........... 107 |........ 1,839 |.......... 584 | 4. 1988 |............. 0 |........... 109 |........ 2,257 |.......... 624 | 5. 1989 |............ 31 |........... 121 |........ 2,652 |.......... 927 | 6. 1990 |............. 0 |........... 125 |........ 4,010 |.......... 721 | 7. 1991 |............. 4 |........... 181 |........ 3,413 |.......... 770 | 8. 1992 |............. 4 |........... 129 |........ 1,912 |.......... 695 | 9. 1993 |............. 1 |........... 135 |........ 1,385 |.......... 569 | 10. 1994 |............. 0 |........... 115 |........ 1,060 |.......... 592 | 11. 1995 |............. 1 |............ 99 |.......... 537 |.......... 386 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|............ 41 |......... 1,201 |....... 20,512 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |......... 157 |......... 246 |.......... 28 |........... 0 |........... 0 |........... 0 | 2. 1986 |.......... 90 |.......... 40 |.......... 11 |........... 0 |........... 0 |........... 0 | 3. 1987 |.......... 25 |........... 7 |........... 8 |........... 7 |........... 0 |........... 0 | 4. 1988 |......... 273 |.......... 49 |.......... 45 |.......... 15 |........... 0 |........... 0 | 5. 1989 |......... 381 |.......... 52 |.......... 70 |........... 5 |........... 0 |........... 0 | 6. 1990 |......... 427 |.......... 26 |......... 150 |........... 7 |........... 0 |........... 0 | 7. 1991 |......... 934 |......... 112 |......... 500 |.......... 17 |........... 0 |........... 0 | 8. 1992 |....... 2,241 |......... 162 |......... 589 |.......... 44 |........... 0 |........... 0 | 9. 1993 |....... 2,074 |.......... 90 |....... 1,229 |.......... 48 |........... 0 |........... 0 | 10. 1994 |....... 1,403 |........... 0 |....... 1,839 |......... 111 |........... 0 |........... 0 | 11. 1995 |......... 730 |........... 0 |....... 2,492 |......... 105 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|....... 8,735 |......... 784 |....... 6,961 |......... 359 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 2 |........... 0 |........... 0 |........... 0 |......... (59)|........... 2 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 61 |........... 2 | 3. 1987 |.......... 42 |........... 0 |........... 0 |........... 0 |.......... 61 |........... 2 | 4. 1988 |.......... 33 |........... 0 |........... 0 |........... 0 |......... 287 |.......... 13 | 5. 1989 |.......... 49 |........... 0 |........... 0 |........... 0 |......... 443 |........... 9 | 6. 1990 |.......... 42 |........... 0 |........... 0 |........... 0 |......... 586 |.......... 22 | 7. 1991 |......... 267 |........... 0 |........... 0 |.......... 49 |....... 1,621 |.......... 30 | 8. 1992 |......... 317 |........... 0 |........... 3 |.......... 60 |....... 3,001 |.......... 38 | 9. 1993 |......... 363 |........... 0 |........... 5 |.......... 41 |....... 3,569 |.......... 40 | 10. 1994 |......... 452 |........... 0 |.......... 11 |.......... 68 |....... 3,651 |.......... 47 | 11. 1995 |......... 458 |........... 0 |.......... 20 |.......... 84 |....... 3,659 |.......... 64 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|....... 2,025 |........... 0 |.......... 39 |......... 302 |...... 16,880 |......... 269 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |......... 1,936 |.......... 469 |........ 1,467 |......... 42.9 |......... 16.8 |.......... 85.7 | 3. 1987 |......... 2,262 |.......... 361 |........ 1,901 |......... 31.9 |......... 15.7 |.......... 39.6 | 4. 1988 |......... 2,896 |.......... 351 |........ 2,545 |......... 35.6 |......... 11.9 |.......... 49.1 | 5. 1989 |......... 3,326 |.......... 231 |........ 3,095 |......... 36.7 |.......... 9.8 |.......... 46.0 | 6. 1990 |......... 5,850 |........ 1,255 |........ 4,595 |......... 56.6 |......... 49.1 |.......... 59.0 | 7. 1991 |......... 5,182 |.......... 148 |........ 5,034 |......... 49.1 |.......... 7.4 |.......... 58.9 | 8. 1992 |......... 5,118 |.......... 206 |........ 4,912 |......... 52.5 |......... 13.0 |.......... 60.2 | 9. 1993 |......... 5,092 |.......... 138 |........ 4,954 |......... 56.3 |.......... 8.4 |.......... 66.8 | 10. 1994 |......... 4,822 |.......... 111 |........ 4,711 |......... 52.7 |.......... 5.9 |.......... 64.8 | 11. 1995 |......... 4,300 |.......... 105 |........ 4,195 |......... 49.3 |.......... 5.3 |.......... 62.2 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |........... (61)|............. 2 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 61 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............ 19 |............ 42 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 254 |............ 33 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |........... 394 |............ 49 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 544 |............ 42 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |......... 1,305 |........... 316 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |......... 2,624 |........... 377 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |......... 3,165 |........... 404 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 3,131 |........... 520 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 3,117 |........... 542 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |........ 14,553 |......... 2,327 | | | | | | | - ----------------------------------------------------------------------------------------------
84 13 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1H - SECTION 2 OTHER LIABILITY - CLAIMS-MADE ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 0 |............ 0 | X X X | 2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 | 3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 | 4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 | 5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 | 6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 | 7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 | 8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 | 9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 | 10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 | 11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|............. 0 |............. 0 |............ 0 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 | | | | | | | - ----------------------------------------------------------------------------------------------
85 14 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, GLASS, BURGLARY & THEFT) ($000 Omitted)
============================================================================================================================= (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS | Years in |-----------------------------------------------------------------------------------------------------------------| Which | (2) | (3) | (4) | LOSS PAYMENTS |ALLOCATED LOSS EXPENSE PAYMENTS| Premiums | | | |---------------------------------------------------------------| Were Earned| Direct and | Ceded | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - -----------------------------------------------------------------------------------------------------------------------------| 1. Prior X X X | X X X | X X X |........... 23 |............ 0 |............ 5 |........... 0 | 2. 1994 ........... 770 |.......... 136 |........... 634 |.......... 199 |............ 0 |........... 11 |........... 0 | 3. 1995 ........... 898 |........... 98 |........... 800 |.......... 172 |............ 0 |............ 5 |........... 0 | - -----------------------------------------------------------------------------------------------------------------------------| 4. TOTALS X X X | X X X | X X X |.......... 394 |............ 0 |.......... 21 |........... 0 | - ------------------------------------------------------------------------------------------------------------------------------- ====================================================================================| (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-----------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned | Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur. | Received | Payments | + 7 - 8 + 10) | Assumed | - ------------|-----------------------------------------------------|-----------------| 1. Prior | ............. 2 |............ 1 |........... 29 | X X X | 2. 1994 | ............ (3)|........... 13 |.......... 223 | X X X | 3. 1995 | ............. 0 |........... 16 |.......... 193 | X X X | - ------------|-----------------------------------------------------------------------| 4. TOTALS | ............ (1)|........... 30 |.......... 445 | X X X | - -------------------------------------------------------------------------------------
======================================================================== | LOSSES UNPAID | |------------------------------------------------------------ | CASE BASIS | BULK + IBNR | |------------------------------------------------------------ | (13) | (14) | (15) | (16) | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------ 1. Prior |.......... 21 |........... 0 |......... 191 |.......... 18 | 2. 1994 |.......... 32 |........... 0 |......... 155 |.......... 22 | 3. 1995 |.......... 66 |........... 0 |......... 215 |.......... 29 | - ------------------------------------------------------------------------ 4. TOTALS|......... 119 |........... 0 |........ 561 |.......... 69 | - ------------------------------------------------------------------------ =========== ======================================================================================================================== | ALLOCATED LOSS EXPENSES UNPAID | (21) | (22) | (23) | (24) | -----------------------------------------------------------| | | | | | CASE BASIS | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | -----------------------------------------------------------| Subrogation | Loss | Losses and | Claims | | (17) | (18) | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | Assumed | Ceded | | | | Assumed | - ----------- |----------------------------------------------------------------------------------------------------------------------| 1. Prior |.......... 0 |........... 0 |.......... 40 |........... 0 |........... 0 |........... 5 |......... 239 |........... 0 | 2. 1994 |.......... 0 |........... 0 |.......... 14 |........... 0 |........... 0 |........... 6 |......... 185 |........... 2 | 3. 1995 |.......... 0 |........... 0 |.......... 31 |........... 0 |........... 0 |........... 4 |......... 287 |.......... 12 | - ----------- |----------------------------------------------------------------------------------------------------------------------| 4. TOTALS |.......... 0 |........... 0 |.......... 85 |........... 0 |........... 0 |.......... 15 |......... 711 |.......... 14 | - ----------- ------------------------------------------------------------------------------------------------------------------------
============================================================================================================ | TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE | | | (Incurred/Premiums Earned) | |------------------------------------------------------------------------------------------------ | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - ------------------------------------------------------------------------------------------------------------ 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 |.......... 431 |........... 22 |.......... 409 |......... 56.0 |......... 16.2 |......... 64.5 | 3. 1995 |.......... 510 |........... 29 |.......... 481 |......... 56.8 |......... 29.6 |......... 60.1 | - ------------------------------------------------------------------------------------------------------------ 4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------ ================================================================================================= | DISCOUNT FOR TIME | (33) | NET BALANCE SHEET | | VALUE OF MONEY | | RESERVES AFTER DISCOUNT | | ---------------------------------| Inter-Company |-------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ------------------------------------------------------------------------------------------------| 1. Prior | ............. 0 |............. 0 | X X X |.......... 194 |........... 45 | 2. 1994 | ............. 0 |............. 0 |..............0.0|.......... 165 |........... 20 | 3. 1995 | ............. 0 |............. 0 |..............0.0|.......... 252 |........... 35 | - ------------------------------------------------------------------------------------------------| 4. TOTALS| ............. 0 |............. 0 | X X X |.......... 611 |.......... 100 | - -------------------------------------------------------------------------------------------------
86 15 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE ($000 Omitted)
=============================================================================================== (1) | PREMIUMS EARNED | | Years in |-------------------------------------------------|---------------------------------| Which | (2) | (3) | (4) | LOSS PAYMENTS | Premiums | | | | -------------------------------- Were Earned| Direct and | Ceded | Net | (5) | (6) | and Losses | Assumed | | (Cols. 2 - 3) | Direct and | | Were Incur.| | | | Assumed | Ceded | - -------------------------------------------------------------- --------------------------------| 1. Prior | X X X | X X X | X X X | ......... (108)|........... 0 | 2. 1994 |........ 14,287 |.......... 496 |........ 13,791 | ......... 6,269 |........... 44 | 3. 1995 |........ 14,682 |.......... 489 |........ 14,193 | ......... 6,368 |........... 56 | - ------------------------------------------------------------------------------------------------ 4. TOTALS| X X X | X X X | X X X | ........ 12,529 |.......... 100 | - ------------------------------------------------------------------------------------------------ ============================================================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |------------------------------------------------------------------------------------------------- Which |ALLOCATED LOSS EXPENSE PAYMENTS| (9) | (10) | (11) | Number of | Premiums |-------------------------------| | | Total | Claims | Were Earned| (7) | (8) | Salvage and | Unallocated | Net Paid | Reported - | and Losses | Direct and | | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Assumed | Ceded | Received | Payments | + 7 - 8 + 10) | Assumed | - -------------------------------------------------------------------------------------------------------------| 1. Prior |........... 20 |.............0 |.......... 140 |............ 1 |.......... (87)| X X X | 2. 1994 |.......... 150 |............ 1 |........ 1,198 |.......... 474 |........ 6,848 | .............0 | 3. 1995 |........... 98 |.............0 |.......... 451 |.......... 524 |........ 6,934 | .............0 | - -------------------------------------------------------------------------------------------------------------| 4. TOTALS|.......... 268 |............ 1 |........ 1,789 |.......... 999 |....... 13,695 | X X X | - --------------------------------------------------------------------------------------------------------------
======================================================================== | LOSSES UNPAID | |------------------------------------------------------------ | CASE BASIS | BULK + IBNR | |------------------------------------------------------------ | (13) | (14) | (15) | (16) | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------ 1. Prior |.......... 43 |............0 |......... 249 |............0 | 2. 1994 |.......... 60 |........... 8 |......... 481 |........... 1 | 3. 1995 |......... 682 |.......... 16 |......... 399 |........... 0 | - ------------------------------------------------------------------------ 4. TOTALS|......... 785 |.......... 24 |....... 1,129 |........... 1 | - ------------------------------------------------------------------------ ================================================================================================================================== | ALLOCATED LOSS EXPENSES UNPAID | (21) | (22) | (23) | (24) | |-----------------------------------------------------------| | | | | | CASE BASIS | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------------------------------------| Subrogation | Loss | Losses and | Claims | | (17) | (18) | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding-| | Direct and | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | Assumed | Ceded | | | | Assumed | - ---------------------------------------------------------------------------------------------------------------------------------| 1. Prior |............0 |............0 |......... 176 |............0 |.......... 98 |......... 212 |......... 680 |......... 146 | 2. 1994 |............0 |............0 |.......... 87 |............0 |......... 143 |......... 124 |......... 743 |......... 123 | 3. 1995 |............0 |............0 |......... 129 |............0 |......... 610 |.......... 59 |....... 1,253 |......... 495 | - ---------------------------------------------------------------------------------------------------------------------------------| 4. TOTALS|............0 |............0 |......... 392 |............0 |......... 851 |......... 395 |....... 2,676 |......... 764 | - ----------------------------------------------------------------------------------------------------------------------------------
============================================================================================================ | TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE | | | (Incurred/Premiums Earned) | |------------------------------------------------------------------------------------------------ | (25) | (26) | (27) | (28) | (29) | (30) | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - ------------------------------------------------------------------------------------------------------------ 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 |........ 7,645 |........... 52 |........ 7,593 |......... 53.5 |......... 10.5 |......... 55.1 | 3. 1995 |........ 8,260 |........... 72 |........ 8,188 |......... 56.3 |......... 14.7 |......... 57.7 | - ------------------------------------------------------------------------------------------------------------ 4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------ ================================================================================================ | DISCOUNT FOR TIME | (33) | NET BALANCE SHEET | | VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |---------------------------------| Inter-Company |-------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - -----------------------------------------------------------------------------------------------| 1. Prior |..............0 |..............0 | X X X |.......... 292 |.......... 388 | 2. 1994 |..............0 |..............0 |.............0.0 |.......... 532 |.......... 211 | 3. 1995 |..............0.|..............0 |.............0.0 |........ 1,065 |.......... 188 | - -----------------------------------------------------------------------------------------------| 4. TOTALS|..............0 |..............0 | X X X |........ 1,889 |.......... 787 | - ------------------------------------------------------------------------------------------------
87 16 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1K - FIDELITY / SURETY ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS | Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS |ALLOCATED LOSS EXPENSE PAYMENTS| Premiums | | | |---------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | Ceded | Were Incur.| | | | Assumed | Ceded | Assumed | | - -----------------------------------------------------------------------------------------------------------------------------| 1. Prior | X X X | X X X | X X X |............. 0|............. 0|............. 0|............. 0| 2. 1994 |.............. 3|............. 0|.............. 3|............. 0|............. 0|............. 0|............. 0| 3. 1995 |.............. 0|............. 0|.............. 0|............. 0|............. 0|............. 0|............. 0| - ------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS| X X X | X X X | X X X |............. 0|............. 0|............. 0|............. 0| - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | | (12) | Years in |-----------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| 1. Prior |............. 0|............. 0|............. 0| X X X | 2. 1994 |............. 0|............. 0|............. 0| X X X | 3. 1995 |............. 0|............. 0|............. 0| X X X | - -----------------------------------------------------------------------------| 4. TOTALS|............. 0|............. 0|............. 0| X X X | - ------------------------------------------------------------------------------
================================================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID | |---------------------------------------------------------------------------------------------------------------------| | CASE BASIS | BULK + IBNR | CASE BASIS | BULK + IBNR | |---------------------------------------------------------------------------------------------------------------------| | (13) | (14) | (15) | (16) | (17) | (18) | (19) | (20) | | Direct and | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ---------------------------------------------------------------------------------------------------------------------------------- 1. Prior |............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|.......... 0| 2. 1994 |............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|.......... 0| 3. 1995 |............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|.......... 0| - ---------------------------------------------------------------------------------------------------------------------------------- 4. TOTALS|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|.......... 0| - ---------------------------------------------------------------------------------------------------------------------------------- ======================================================================= | (21) | (22) | (23) | (24) | | | | | | |Salvage and | Unallocated | Total Net | Number of | |Subrogation | Loss | Losses and | Claims | |Anticipated | Expenses | Expenses |Outstanding - | | | Unpaid | Unpaid | Direct and | | | | | Assumed | - ----------------------------------------------------------------------| 1. Prior |........... 0|............ 0|............ 0|............ 0| 2. 1994 |........... 0|............ 0|............ 0|............ 0| 3. 1995 |........... 0|............ 0|............ 0|............ 0| - ----------------------------------------------------------------------| 4. TOTALS|........... 0|............ 0|............ 0|............ 0| - -----------------------------------------------------------------------
============================================================================================================ | TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE | | | (Incurred/Premiums Earned) | | (25) | (26) | (27) | (28) | (29) | (30) | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -----------------------------------------------------------------------------------------------------------| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 |............. 0|............. 0|............. 0|............. 0|............. 0|............. 0| 3. 1995 |............. 0|............. 0|............. 0|............. 0|............. 0|............. 0| - -----------------------------------------------------------------------------------------------------------| 4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------ =============================================================================================== | DISCOUNT FOR TIME | (33) | NET BALANCE SHEET | | VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |---------------------------------| Inter-Company |-------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - -----------------------------------------------------------------------------------------------| 1. Prior |.............. 0|.............. 0| X X X |............. 0|............. 0| 2. 1994 |.............. 0|.............. 0|............... 0|............. 0|............. 0| 3. 1995 |.............. 0|.............. 0|............... 0|............. 0|............. 0| - -----------------------------------------------------------------------------------------------| 4. TOTALS|.............. 0|.............. 0| X X X |............. 0|............. 0| - ------------------------------------------------------------------------------------------------
88 17 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS | Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS |ALLOCATED LOSS EXPENSE PAYMENTS| Premiums | | | |---------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | Ceded | Were Incur.| | | | Assumed | Ceded | Assumed | | - -----------------------------------------------------------------------------------------------------------------------------| 1. Prior | X X X | X X X | X X X |.............0 |.............0 |.............0 |.............0 | 2. 1994 |............ 52 |.............0 |............ 52 |........... 23 |.............0 |.............0 |.............0 | 3. 1995 |............ 30 |.............0 |............ 30 |........... 18 |.............0 |.............0 |.............0 | - -----------------------------------------------------------------------------------------------------------------------------| 4. TOTALS| X X X | X X X | X X X |........... 41 |.............0 |.............0 |.............0 | - -----------------------------------------------------------------------------------------------------------------------------| =============================================================================== (1) | | (12) | Years in |------------------------------------------------| | Which || (9) | (10) | (11) | Number of | Premiums || | | Total | Claims | Were Earned|| Salvage and | Unallocated | Net Paid | Reported - | and Losses || Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.|| Received | Payments | + 7 - 8 + 10) | Assumed | - ------------------------------------------------------------------------------| 1. Prior | .............0 |.............0 |.............0 | X X X | 2. 1994 | .............0 |............ 1 |........... 24 | X X X | 3. 1995 | .............0 |............ 2 |........... 20 | X X X | - ------------------------------------------------------------------------------| 4. TOTALS|..............0 |............ 3 |........... 44 | X X X | - -------------------------------------------------------------------------------
==================================================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID | |-----------------------------------------------------------------------------------------------------------------------| | CASE BASIS | BULK + IBNR | CASE BASIS | BULK + IBNR | |-----------------------------------------------------------------------------------------------------------------------| | (13) | (14) | (15) | (16) | (17) | (18) | (19) | (20) | | Direct and | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | 1. Prior |............0 |............0 |............0 |............0 |............0 |............0 |............0 |............0 | 2. 1994 |............0 |............0 |............0 |............0 |............0 |............0 |............0 |............0 | 3. 1995 |........... 1 |............0 |............0 |............0 |............0 |............0 |............0 |............0 | - -----------------------------------------------------------------------------------------------------------------------------------| 4. TOTALS|........... 1 |............0 |............0 |............0 |............0 |............0 |............0 |............0 | - ----------------------------------------------------------------------------------------------------------------------------------- ========================================================================= | (21) | (22) | (23) | (24) | | | | | | | Salvage and | Unallocated | Total Net | Number of | | Subrogation | Loss | Losses and | Claims | | Anticipated | Expenses | Expenses |Outstanding - | | | Unpaid | Unpaid | Direct and | | | | | Assumed | - ------------------------------------------------------------------------| 1. Prior | ............0 |............0 |............0 |........... 1 | 2. 1994 | ............0 |............0 |............0 |............0 | 3. 1995 | ............0 |............0 |........... 1 |............0 | - ------------------------------------------------------------------------| 4. TOTALS| ............0 |............0 |........... 1 |........... 1 | - -------------------------------------------------------------------------
============================================================================================================ | TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE | | | (Incurred/Premiums Earned) | |-----------------------------------------------------------------------------------------------| | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -----------------------------------------------------------------------------------------------------------| 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 |........... 24 |.............0 |........... 24 |......... 46.2 |.............0 |......... 46.2 | 3. 1995 |........... 21 |.............0 |........... 21 |......... 70.0 |.............0 |......... 70.0 | - -----------------------------------------------------------------------------------------------------------| 4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------ ================================================================================================== | DISCOUNT FOR TIME | (33) | NET BALANCE SHEET | | VALUE OF MONEY | | RESERVES AFTER DISCOUNT | | ---------------------------------| Inter-Company |-------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - --------------------------------------------------------------------------------------------------| 1. Prior |.................0 |..............0 | X X X |.............0 |.............0 | 2. 1994 |.................0 |..............0 |...............0 |.............0 |.............0 | 3. 1995 |.................0 |..............0 |...............0 |............ 1 |.............0 | - --------------------------------------------------------------------------------------------------| 4. TOTALS|.................0 |..............0 | X X X |............ 1 |.............0 | - ---------------------------------------------------------------------------------------------------
89 18 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1M - INTERNATIONAL ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS | Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |..............0 |............. 0 | 11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------
============================================================================== (1) |AYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 0 |............ 0 | X X X | 2. 1986 |............. 0 |............. 0 |............ 0 | X X X | 3. 1987 |............. 0 |............. 0 |............ 0 | X X X | 4. 1988 |............. 0 |............. 0 |............ 0 | X X X | 5. 1989 |............. 0 |............. 0 |............ 0 | X X X | 6. 1990 |............. 0 |............. 0 |............ 0 | X X X | 7. 1991 |............. 0 |............. 0 |............ 0 | X X X | 8. 1992 |............. 0 |............. 0 |............ 0 | X X X | 9. 1993 |............. 0 |............. 0 |............ 0 | X X X | 10. 1994 |............. 0 |............. 0 |............ 0 | X X X | 11. 1995 |............. 0 |............. 0 |............ 0 | X X X | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|............. 0 |............. 0 |............ 0 | X X X | | | | | | - ------------------------------------------------------------------------------
==================================================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID | |-----------------------------------------------------------------------------------------------------------------------| | CASE BASIS | BULK + IBNR | CASE BASIS | BULK + IBNR | |-----------------------------------------------------------------------------------------------------------------------| | (13) | (14) | (15) | (16) | (17) | (18) | (19) | (20) | | Direct and | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------------
======================================================================== | (21) | (22) | (23) | (24) | | | | | | | Salvage and | Unallocated | Total Net | Number of | | Subrogation | Loss | Losses and | Claims | | Anticipated | Expenses | Expenses |Outstanding - | | | Unpaid | Unpaid | Direct and | | | | | Assumed | - -----------------------------------------------------------------------| | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | - -----------------------------------------------------------------------| | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 | | | | | | - ------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - --------------------------------------------------------------------------------------------------------------
=============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | | -------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ----------------------------------------------------------------------------------------------| | | | | | | 1. Prior | ............ 0 |............ 0 | X X X |............. 0 |............. 0 | 2. 1986 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 3. 1987 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 4. 1988 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 5. 1989 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 6. 1990 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 7. 1991 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 8. 1992 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 9. 1993 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 10. 1994 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 11. 1995 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | | | | | | | - ------------ ---------------------------------------------------------------------------------| | | | | | | 12. TOTALS| ............ 0 |............ 0 | X X X |............. 0 |............. 0 | | | | | | | - -----------------------------------------------------------------------------------------------
90 19 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1N - REINSURANCE A ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS | Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 4. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 5. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 6. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 7. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |..............0 |............. 0 | 8. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 9. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------
============================================================================== (1) |AYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. 1988 |............. 0 |............. 0 |............ 0 | X X X | 2. 1989 |............. 0 |............. 0 |............ 0 | X X X | 3. 1990 |............. 0 |............. 0 |............ 0 | X X X | 4. 1991 |............. 0 |............. 0 |............ 0 | X X X | 5. 1992 |............. 0 |............. 0 |............ 0 | X X X | 6. 1993 |............. 0 |............. 0 |............ 0 | X X X | 7. 1994 |............. 0 |............. 0 |............ 0 | X X X | 8. 1995 |............. 0 |............. 0 |............ 0 | X X X | | | | | | - -----------------------------------------------------------------------------| | | | | | 9. TOTALS|............. 0 |............. 0 |............ 0 | X X X | | | | | | - ------------------------------------------------------------------------------
==================================================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID | |-----------------------------------------------------------------------------------------------------------------------| | CASE BASIS | BULK + IBNR | CASE BASIS | BULK + IBNR | |-----------------------------------------------------------------------------------------------------------------------| | (13) | (14) | (15) | (16) | (17) | (18) | (19) | (20) | | Direct and | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | | 1. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | | 9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------------
======================================================================== | (21) | (22) | (23) | (24) | | | | | | | Salvage and | Unallocated | Total Net | Number of | | Subrogation | Loss | Losses and | Claims | | Anticipated | Expenses | Expenses |Outstanding - | | | Unpaid | Unpaid | Direct and | | | | | Assumed | - -----------------------------------------------------------------------| | | | | | 1. 1988 |........... 0 |........... 0 |........... 0 | X X X | 2. 1989 |........... 0 |........... 0 |........... 0 | X X X | 3. 1990 |........... 0 |........... 0 |........... 0 | X X X | 4. 1991 |........... 0 |........... 0 |........... 0 | X X X | 5. 1992 |........... 0 |........... 0 |........... 0 | X X X | 6. 1993 |........... 0 |........... 0 |........... 0 | X X X | 7. 1994 |........... 0 |........... 0 |........... 0 | X X X | 8. 1995 |........... 0 |........... 0 |........... 0 | X X X | | | | | | - -----------------------------------------------------------------------| | | | | | 9. TOTALS|........... 0 |........... 0 |........... 0 | X X X | | | | | | - ------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 2. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 3. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 4. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 5. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 6. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 7. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 8. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 9. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - --------------------------------------------------------------------------------------------------------------
=============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | | -------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ----------------------------------------------------------------------------------------------| | | | | | | 1. 1988 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 2. 1989 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 3. 1990 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 4. 1991 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 5. 1992 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 6. 1993 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 7. 1994 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 8. 1995 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | | | | | | | - ------------ ---------------------------------------------------------------------------------| | | | | | | 9. TOTALS| ............ 0 |............ 0 | X X X |............. 0 |............. 0 | | | | | | | - -----------------------------------------------------------------------------------------------
91 20 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1O - REINSURANCE B ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ 1. 1988 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 | 2. 1989 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 | 3. 1990 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 | 4. 1991 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 | 5. 1992 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 | 6. 1993 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 | 7. 1994 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 | 8. 1995 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 | - ------------------------------------------------------------------------------------------------------------------------------ 9. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............ 0 |............ 0 | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| 1. 1988 |............ 0 |............ 0 |............ 0 | X X X | 2. 1989 |............ 0 |............ 0 |............ 0 | X X X | 3. 1990 |............ 0 |............ 0 |............ 0 | X X X | 4. 1991 |............ 0 |............ 0 |............ 0 | X X X | 5. 1992 |............ 0 |............ 0 |............ 0 | X X X | 6. 1993 |............ 0 |............ 0 |............ 0 | X X X | 7. 1994 |............ 0 |............ 0 |............ 0 | X X X | 8. 1995 |............ 0 |............ 0 |............ 0 | X X X | - -----------------------------------------------------------------------------| 9. TOTALS|............ 0 |............ 0 |............ 0 | X X X | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ 1. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | - ------------------------------------------------------------------------------------------------------ 9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| 1. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | - -----------------------------------------------------------------------------------------------------| 9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | - ------------------------------------------------------------------------------------------------------
============================================================================================================= | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - ------------------------------------------------------------------------------------------------------------- 1. 1988 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 2. 1989 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 3. 1990 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 4. 1991 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 5. 1992 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 6. 1993 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 7. 1994 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 8. 1995 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | - ------------------------------------------------------------------------------------------------------------ 9. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------ ================================================================================================ | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |---------------------------------| Inter-Company |-------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - -----------------------------------------------------------------------------------------------| 1. 1988 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 2. 1989 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 3. 1990 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 4. 1991 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 5. 1992 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 6. 1993 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 7. 1994 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 8. 1995 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | - -----------------------------------------------------------------------------------------------| 9. TOTALS|............. 0 |............. 0 | X X X |............ 0 |............ 0 | - ------------------------------------------------------------------------------------------------
92 21 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1P - REINSURANCE C ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ 1. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 4. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 5. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 6. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 7. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 8. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | - ------------------------------------------------------------------------------------------------------------------------------ 9. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| 1. 1988 |............. 0 |............. 0 |............ 0 | X X X | 2. 1989 |............. 0 |............. 0 |............ 0 | X X X | 3. 1990 |............. 0 |............. 0 |............ 0 | X X X | 4. 1991 |............. 0 |............. 0 |............ 0 | X X X | 5. 1992 |............. 0 |............. 0 |............ 0 | X X X | 6. 1993 |............. 0 |............. 0 |............ 0 | X X X | 7. 1994 |............. 0 |............. 0 |............ 0 | X X X | 8. 1995 |............. 0 |............. 0 |............ 0 | X X X | - -----------------------------------------------------------------------------| 9. TOTALS|............. 0 |............. 0 |............ 0 | X X X | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ 1. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | - ------------------------------------------------------------------------------------------------------ 9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| 1. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | - -----------------------------------------------------------------------------------------------------| 9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | - ------------------------------------------------------------------------------------------------------
============================================================================================================ | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |------------------------------------------------------------------------------------------------ | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - ------------------------------------------------------------------------------------------------------------ 1. 1988 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 2. 1989 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 3. 1990 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 4. 1991 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 5. 1992 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 6. 1993 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 7. 1994 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 8. 1995 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | - ------------------------------------------------------------------------------------------------------------ 9. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------ ================================================================================================ | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |---------------------------------| Inter-Company |--------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - -----------------------------------------------------------------------------------------------| 1. 1988 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 2. 1989 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 3. 1990 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 4. 1991 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 5. 1992 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 6. 1993 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 7. 1994 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 8. 1995 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | - -----------------------------------------------------------------------------------------------| 9. TOTALS|............. 0 |............. 0 | X X X |............ 0 |............ 0 | - ------------------------------------------------------------------------------------------------
93 22 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1Q - REINSURANCE D ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ 1. Prior | X X X | X X X | X X X |............ 4 |............ 0 |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | - ------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS| X X X | X X X | X X X |............ 4 |............ 0 |............. 0 |............. 0 | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================= (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - ----------------------------------------------------------------------------| 1. Prior |............ 0 |............. 0 |............ 4 | X X X | 2. 1986 |............ 0 |............. 0 |............ 0 | X X X | 3. 1987 |............ 0 |............. 0 |............ 0 | X X X | - ----------------------------------------------------------------------------| 4. TOTALS|............ 0 |............. 0 |............ 4 | X X X | - -----------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ 1. Prior |.......... 30 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | - ------------------------------------------------------------------------------------------------------ 4. TOTALS|.......... 30 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | EXPENSES UNPAID | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |.......... 33 | X X X | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X | - -----------------------------------------------------------------------------------------------------| 4. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |.......... 33 | X X X | - ------------------------------------------------------------------------------------------------------
============================================================================================================ | TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE | | | (Incurred/Premiums Earned) | |------------------------------------------------------------------------------------------------ | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - ------------------------------------------------------------------------------------------------------------ 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 3. 1987 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | - ------------------------------------------------------------------------------------------------------------ 4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------ ================================================================================================ | DISCOUNT FOR TIME | (33) | NET BALANCE SHEET | | VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |---------------------------------| Inter-Company |-------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - -----------------------------------------------------------------------------------------------| 1. Prior |............. 0 |............. 0 | X X X |........... 33 |............ 0 | 2. 1986 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 3. 1987 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | - -----------------------------------------------------------------------------------------------| 4. TOTALS|............. 0 |............. 0 | X X X |........... 33 |............ 0 | - ------------------------------------------------------------------------------------------------
94 23 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1R - SECTION 1 PRODUCTS LIABILITY - OCCURRENCE ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1986 |........... 47 |........... 29 |........... 18 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1987 |........... 69 |........... 22 |........... 47 |............ 0 |............ 0 |............. 0 |............. 0 | 4. 1988 |........... 52 |........... 19 |........... 33 |............ 0 |............ 0 |............. 0 |............. 0 | 5. 1989 |........... 13 |............ 3 |........... 10 |............ 0 |............ 0 |............. 0 |............. 0 | 6. 1990 |............ 8 |............ 2 |............ 6 |............ 0 |............ 0 |............. 0 |............. 0 | 7. 1991 |........... 15 |............ 0 |........... 15 |............ 0 |............ 0 |............. 0 |............. 0 | 8. 1992 |............ 8 |............ 0 |............ 8 |............ 0 |............ 0 |............. 0 |............. 0 | 9. 1993 |............ 9 |............ 0 |............ 9 |............ 0 |............ 0 |............. 0 |............. 0 | 10. 1994 |........... 11 |............ 0 |........... 11 |............ 0 |............ 0 |............. 0 |............. 0 | 11. 1995 |........... 22 |............ 0 |........... 22 |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 0 |............ 0 | X X X | 2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 | 3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 | 4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 | 5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 | 6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 | 7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 | 8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 | 9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 | 10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 | 11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|............. 0 |............. 0 |............ 0 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 1 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 4 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 6 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 5 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 6 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |.......... 13 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|........... 0 |........... 0 |.......... 44 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 1 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 4 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 3 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 3 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 3 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 6 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 2 |........... 7 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 2 |........... 8 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 4 |.......... 17 |........... 0 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 8 |.......... 52 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 3. 1987 |............. 1 |............ 0 |............ 1 |.......... 1.4 |.......... 0.0 |........... 2.1 | 4. 1988 |............. 4 |............ 0 |............ 4 |.......... 7.7 |.......... 0.0 |.......... 12.1 | 5. 1989 |............. 3 |............ 0 |............ 3 |......... 23.1 |.......... 0.0 |.......... 30.0 | 6. 1990 |............. 3 |............ 0 |............ 3 |......... 37.5 |.......... 0.0 |.......... 50.0 | 7. 1991 |............. 3 |............ 0 |............ 3 |......... 20.0 |.......... 0.0 |.......... 20.0 | 8. 1992 |............. 7 |............ 0 |............ 7 |......... 87.5 |.......... 0.0 |.......... 87.5 | 9. 1993 |............. 7 |............ 0 |............ 7 |......... 77.8 |.......... 0.0 |.......... 77.8 | 10. 1994 |............. 9 |............ 0 |............ 9 |......... 81.8 |.......... 0.0 |.......... 81.8 | 11. 1995 |............ 18 |............ 0 |........... 18 |......... 81.8 |.......... 0.0 |.......... 81.8 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 1 |............. 0 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 4 |............. 0 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 3 |............. 0 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 3 |............. 0 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 3 |............. 0 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 6 |............. 0 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 5 |............. 2 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 6 |............. 2 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |............ 13 |............. 4 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |............ 44 |............. 8 | | | | | | | - ----------------------------------------------------------------------------------------------
95 24 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1R - SECTION 2 PRODUCTS LIABILITY - CLAIMS-MADE ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 1. Prior | X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | 12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| | | | | | 1. Prior |............. 0 |............. 0 |............ 0 | X X X | 2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 | 3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 | 4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 | 5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 | 6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 | 7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 | 8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 | 9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 | 10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 | 11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 | | | | | | - -----------------------------------------------------------------------------| | | | | | 12. TOTALS|............. 0 |............. 0 |............ 0 | X X X | | | | | | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| | | | | | | | 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - -----------------------------------------------------------------------------------------------------| | | | | | | | 12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | | | | | | | | - ------------------------------------------------------------------------------------------------------
============================================================================================================== | TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE | | EXPENSES INCURRED | (Incurred/Premiums Earned) | |-------------------------------------------------------------------------------------------------- | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | 11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 | | | | | | | | - -------------------------------------------------------------------------------------------------------------- | | | | | | | 12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | - -------------------------------------------------------------------------------------------------------------- ============================================================================================== | DISCOUNT FOR | (33) | NET BALANCE SHEET | | TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |-------------------------------| Inter-Company |---------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - ---------------------------------------------------------------------------------------------| | | | | | | 1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 | 2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | 11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 | | | | | | | - ---------------------------------------------------------------------------------------------| | | | | | | 12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 | | | | | | | - ----------------------------------------------------------------------------------------------
96 25 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 1S - FINANCIAL GUARANTY / MORTGAGE GUARANTY ($000 Omitted)
============================================================================================================================== (1) | PREMIUMS EARNED | LOSS AND LOSS EXPENSE PAYMENTS Years in |------------------------------------------------------------------------------------------------------------------ Which | (2) | (3) | (4) | LOSS PAYMENTS | ALLOCATED LOSS EXPENSE PAYMENTS | Premiums | | | |-----------------------------------------------------------------| Were Earned| Direct and | | Net | (5) | (6) | (7) | (8) | and Losses | Assumed | Ceded | (Cols. 2 - 3) | Direct and | | Direct and | | Were Incur.| | | | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------------------------------ 1. Prior | X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | 2. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | 3. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 | - ------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 | - ------------------------------------------------------------------------------------------------------------------------------ ============================================================================== (1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) | Years in |-------------------------------------------------| | Which | (9) | (10) | (11) | Number of | Premiums | | | Total | Claims | Were Earned| Salvage and | Unallocated | Net Paid | Reported - | and Losses | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and | Were Incur.| Received | Payments | + 7 - 8 + 10) | Assumed | - -----------------------------------------------------------------------------| 1. Prior |............. 0 |............. 0 |............ 0 | X X X | 2. 1994 |............. 0 |............. 0 |............ 0 | X X X | 3. 1995 |............. 0 |............. 0 |............ 0 | X X X | - -----------------------------------------------------------------------------| 4. TOTALS|............. 0 |............. 0 |............ 0 | X X X | - ------------------------------------------------------------------------------
====================================================================================================== | LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID |------------------------------------------------------------------------------------------ | CASE BASIS | BULK + IBNR | CASE BASIS | |------------------------------------------------------------------------------------------ | (13) | (14) | (15) | (16) | (17) | (18) | | Direct and | | Direct and | | Direct and | | | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | - ------------------------------------------------------------------------------------------------------ 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | - ------------------------------------------------------------------------------------------------------ 4. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | - ------------------------------------------------------------------------------------------------------ ====================================================================================================== | | (21) | (22) | (23) | (24) | |-----------------------------| | | | | | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of | |-----------------------------| Subrogation | Loss | Losses and | Claims | | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - | | Direct and | | | Unpaid | Unpaid | Direct and | | Assumed | Ceded | | | | Assumed | - -----------------------------------------------------------------------------------------------------| 1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 2. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | 3. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | - -----------------------------------------------------------------------------------------------------| 4. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | - ------------------------------------------------------------------------------------------------------
============================================================================================================ | TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE | | | (Incurred/Premiums Earned) | |------------------------------------------------------------------------------------------------ | (25) | (26) | (27) | (28) | (29) | (30) | | | | | | | | | Direct and | Ceded | Net | Direct and | Ceded | Net | | Assumed | | | Assumed | | | - ------------------------------------------------------------------------------------------------------------ 1. Prior | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | 3. 1995 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 | - ------------------------------------------------------------------------------------------------------------ 4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------ ================================================================================================ | DISCOUNT FOR TIME | (33) | NET BALANCE SHEET | | VALUE OF MONEY | | RESERVES AFTER DISCOUNT | |---------------------------------| Inter-Company |-------------------------------| | (31) | (32) | Pooling | (34) | (35) | | | | Participation | | | | Loss | Loss | Percentage | Losses | Loss Expenses | | | Expense | | Unpaid | Unpaid | - -----------------------------------------------------------------------------------------------| 1. Prior |............. 0 |............. 0 | X X X |............ 0 |............ 0 | 2. 1994 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | 3. 1995 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 | - -----------------------------------------------------------------------------------------------| 4. TOTALS|............. 0 |............. 0 | X X X |............ 0 |............ 0 | - ------------------------------------------------------------------------------------------------
97 26 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
========================================================================================================================= (1) | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED ) |---------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ------------------------------------------------------------------------------------------------------------------------- 1. Prior .........|.......... 389 |........ 467 |........ 297 |........ 858 |........ 861 |........ 849 |........ 854 | 2. 1986 ..........|........ 2,140 |...... 2,300 |...... 2,021 |...... 2,064 |...... 2,050 |...... 2,024 |...... 2,030 | 3. 1987 ..........| X X X |...... 3,206 |...... 2,370 |...... 2,414 |...... 2,470 |...... 2,362 |...... 2,366 | 4. 1988 ..........| X X X | X X X |...... 3,432 |...... 3,491 |...... 3,306 |...... 3,420 |...... 3,111 | 5. 1989 ..........| X X X | X X X | X X X |...... 3,735 |...... 3,596 |...... 3,630 |...... 3,623 | 6. 1990 ..........| X X X | X X X | X X X | X X X |...... 3,056 |...... 3,034 |...... 3,148 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 3,519 |...... 3,694 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 3,086 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== (1) | | DEVELOPMENT | |---------------------------------------------------------------------| Years in Which | (9) | (10) | (11) | (12) | (13) | Losses Were | | | | | | Incurred | 1993 | 1994 | 1995 | One Year | Two Year | - ------------------------------------------------------------------------------------------| 1. Prior .........|........ 853 |........ 853 |........ 853 |.......... 0 |.......... 0 | 2. 1986 ..........|...... 2,030 |...... 2,031 |...... 2,031 |.......... 0 |.......... 1 | 3. 1987 ..........|...... 2,372 |...... 2,400 |...... 2,402 |.......... 2 |......... 30 | 4. 1988 ..........|...... 3,148 |...... 3,146 |...... 3,296 |........ 150 |........ 148 | 5. 1989 ..........|...... 3,663 |...... 3,680 |...... 3,691 |......... 11 |......... 28 | 6. 1990 ..........|...... 3,061 |...... 2,997 |...... 2,968 |........ (29)|........ (93)| 7. 1991 ..........|...... 3,461 |...... 3,589 |...... 3,644 |......... 55 |........ 183 | 8. 1992 ..........|...... 3,134 |...... 2,838 |...... 2,834 |......... (4)|....... (300)| 9. 1993 ..........|...... 3,885 |...... 4,005 |...... 4,093 |......... 88 |........ 208 | 10. 1994 ..........| X X X |...... 4,582 |...... 5,205 |........ 623 | X X X | 11. 1995 ..........| X X X | X X X |...... 4,415 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |........ 896 |........ 205 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2B PRIVATE PASSENGER AUTO LIABILITY/MEDICAL ========================================================================================================================= 1. Prior .........|........ 4,583 |...... 4,600 |...... 4,771 |...... 5,207 |...... 5,931 |...... 6,091 |...... 6,026 | 2. 1986 ..........|....... 12,861 |..... 13,097 |..... 12,517 |..... 12,417 |..... 13,718 |..... 13,706 |..... 13,686 | 3. 1987 ..........| X X X |..... 14,891 |..... 17,384 |..... 16,150 |..... 17,321 |..... 17,916 |..... 17,647 | 4. 1988 ..........| X X X | X X X |..... 17,526 |..... 17,832 |..... 19,057 |..... 19,535 |..... 19,311 | 5. 1989 ..........| X X X | X X X | X X X |..... 18,027 |..... 21,844 |..... 22,657 |..... 22,317 | 6. 1990 ..........| X X X | X X X | X X X | X X X |..... 17,233 |..... 19,391 |..... 19,766 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |..... 17,254 |..... 18,684 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |..... 17,075 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== 1. Prior .........|...... 6,024 |...... 6,030 |...... 6,062 |......... 32 |......... 38 | 2. 1986 ..........|..... 13,851 |..... 13,991 |..... 14,057 |......... 66 |........ 206 | 3. 1987 ..........|..... 17,577 |..... 17,795 |..... 17,797 |.......... 2 |........ 220 | 4. 1988 ..........|..... 19,336 |..... 19,715 |..... 19,714 |......... (1)|........ 378 | 5. 1989 ..........|..... 22,304 |..... 22,914 |..... 22,942 |......... 28 |........ 638 | 6. 1990 ..........|..... 19,205 |..... 19,723 |..... 19,692 |........ (31)|........ 487 | 7. 1991 ..........|..... 17,464 |..... 17,677 |..... 17,690 |......... 13 |........ 226 | 8. 1992 ..........|..... 18,144 |..... 18,608 |..... 18,785 |........ 177 |........ 641 | 9. 1993 ..........|..... 17,435 |..... 17,513 |..... 18,391 |........ 878 |........ 956 | 10. 1994 ..........| X X X |..... 15,960 |..... 16,658 |........ 698 | X X X | 11. 1995 ..........| X X X | X X X |..... 16,349 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |...... 1,862 |...... 3,790 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2C COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL ========================================================================================================================= 1. Prior .........|........ 1,365 |...... 1,366 |...... 1,684 |...... 1,769 |...... 1,730 |...... 1,714 |...... 1,633 | 2. 1986 ..........|........ 2,406 |...... 2,703 |...... 2,361 |...... 1,805 |...... 2,320 |...... 2,379 |...... 2,291 | 3. 1987 ..........| X X X |...... 3,198 |...... 3,987 |...... 3,817 |...... 3,231 |...... 3,336 |...... 3,296 | 4. 1988 ..........| X X X | X X X |...... 4,635 |...... 4,373 |...... 3,781 |...... 3,438 |...... 3,644 | 5. 1989 ..........| X X X | X X X | X X X |...... 4,994 |...... 4,539 |...... 4,061 |...... 3,614 | 6. 1990 ..........| X X X | X X X | X X X | X X X |...... 4,674 |...... 5,207 |...... 5,096 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 5,970 |...... 6,764 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 7,666 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== 1. Prior .........|...... 1,649 |...... 1,715 |...... 1,676 |........ (39)|......... 27 | 2. 1986 ..........|...... 2,302 |...... 2,301 |...... 2,295 |......... (6)|......... (7)| 3. 1987 ..........|...... 3,462 |...... 3,479 |...... 3,471 |......... (8)|.......... 9 | 4. 1988 ..........|...... 3,796 |...... 3,799 |...... 3,776 |........ (23)|........ (20)| 5. 1989 ..........|...... 3,949 |...... 3,970 |...... 3,909 |........ (61)|........ (40)| 6. 1990 ..........|...... 5,068 |...... 5,330 |...... 5,453 |........ 123 |........ 385 | 7. 1991 ..........|...... 7,267 |...... 6,902 |...... 7,021 |........ 119 |....... (246)| 8. 1992 ..........|...... 7,193 |...... 7,659 |...... 7,802 |........ 143 |........ 609 | 9. 1993 ..........|...... 8,091 |...... 8,733 |...... 8,812 |......... 79 |........ 721 | 10. 1994 ..........| X X X |...... 8,943 |...... 9,158 |........ 215 | X X X | 11. 1995 ..........| X X X | X X X |...... 9,387 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |........ 542 |...... 1,438 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2D - WORKERS' COMPENSATION ========================================================================================================================= 1. Prior .........|........ 1,597 |...... 2,035 |...... 1,832 |...... 1,750 |...... 1,968 |...... 2,124 |...... 2,108 | 2. 1986 ..........|.......... 595 |........ 509 |........ 748 |........ 747 |........ 772 |........ 673 |........ 644 | 3. 1987 ..........| X X X |...... 1,070 |...... 1,113 |...... 1,220 |...... 1,102 |...... 1,063 |...... 1,037 | 4. 1988 ..........| X X X | X X X |...... 2,149 |...... 2,415 |...... 2,278 |...... 1,767 |...... 1,993 | 5. 1989 ..........| X X X | X X X | X X X |...... 2,760 |...... 3,541 |...... 3,562 |...... 3,785 | 6. 1990 ..........| X X X | X X X | X X X | X X X |...... 3,034 |...... 3,028 |...... 3,525 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 3,168 |...... 3,558 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 4,026 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== 1. Prior .........|...... 2,136 |...... 2,095 |...... 2,184 |......... 89 |......... 48 | 2. 1986 ..........|........ 637 |........ 622 |........ 642 |......... 20 |.......... 5 | 3. 1987 ..........|...... 1,070 |...... 1,095 |...... 1,101 |.......... 6 |......... 31 | 4. 1988 ..........|...... 2,024 |...... 2,028 |...... 2,050 |......... 22 |......... 26 | 5. 1989 ..........|...... 3,705 |...... 3,696 |...... 3,692 |......... (4)|........ (13)| 6. 1990 ..........|...... 4,373 |...... 3,842 |...... 4,785 |........ 943 |........ 412 | 7. 1991 ..........|...... 4,038 |...... 4,198 |...... 4,763 |........ 565 |........ 725 | 8. 1992 ..........|...... 4,663 |...... 4,445 |...... 5,447 |...... 1,002 |........ 784 | 9. 1993 ..........|...... 6,095 |...... 5,707 |...... 6,315 |........ 608 |........ 220 | 10. 1994 ..........| X X X |...... 7,065 |...... 7,938 |........ 873 | X X X | 11. 1995 ..........| X X X | X X X |...... 9,471 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |...... 4,124 |...... 2,238 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2E - COMMERCIAL MULTIPLE PERIL ========================================================================================================================= 1. Prior .........|........ 1,411 |...... 1,828 |...... 2,062 |...... 2,864 |...... 2,697 |...... 2,784 |...... 2,793 | 2. 1986 ..........|........ 2,490 |...... 2,066 |...... 1,605 |...... 1,755 |...... 1,894 |...... 1,878 |...... 1,943 | 3. 1987 ..........| X X X |...... 4,821 |...... 3,287 |...... 3,315 |...... 3,617 |...... 3,554 |...... 3,504 | 4. 1988 ..........| X X X | X X X |...... 4,253 |...... 3,859 |...... 3,848 |...... 3,637 |...... 3,780 | 5. 1989 ..........| X X X | X X X | X X X |...... 5,201 |...... 4,866 |...... 4,759 |...... 4,708 | 6. 1990 ..........| X X X | X X X | X X X | X X X |...... 5,648 |...... 8,157 |...... 8,323 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 8,126 |...... 9,762 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 8,963 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== 1. Prior .........|...... 2,927 |...... 2,919 |...... 2,736 |....... (183)|....... (191)| 2. 1986 ..........|...... 1,979 |...... 2,005 |...... 1,994 |........ (11)|......... 15 | 3. 1987 ..........|...... 3,529 |...... 3,560 |...... 3,562 |.......... 2 |......... 33 | 4. 1988 ..........|...... 4,010 |...... 3,410 |...... 3,434 |......... 24 |....... (576)| 5. 1989 ..........|...... 5,550 |...... 5,514 |...... 5,601 |......... 87 |......... 51 | 6. 1990 ..........|...... 9,048 |...... 8,647 |...... 8,948 |........ 301 |....... (100)| 7. 1991 ..........|..... 10,165 |..... 11,090 |..... 11,741 |........ 651 |...... 1,576 | 8. 1992 ..........|...... 9,102 |...... 9,577 |..... 10,140 |........ 563 |...... 1,038 | 9. 1993 ..........|...... 8,702 |..... 10,066 |..... 10,495 |........ 429 |...... 1,793 | 10. 1994 ..........| X X X |..... 13,590 |..... 16,362 |...... 2,772 | X X X | 11. 1995 ..........| X X X | X X X |..... 11,537 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |...... 4,635 |...... 3,639 | - -------------------------------------------------------------------------------------------
98 27 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 2F - SECTION 1 MEDICAL MALPRACTICE - OCCURRENCE
========================================================================================================================= (1) | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED ) |---------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ------------------------------------------------------------------------------------------------------------------------- 1. Prior .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== (1) | | DEVELOPMENT | |---------------------------------------------------------------------| Years in Which | (9) | (10) | (11) | (12) | (13) | Losses Were | | | | | | Incurred | 1993 | 1994 | 1995 | One Year | Two Year | - ------------------------------------------------------------------------------------------| 1. Prior .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |.......... 0 |.......... 0 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2F - SECTION 2 MEDICAL MALPRACTICE - CLAIMS-MADE ========================================================================================================================= 1. Prior .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== 1. Prior .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |.......... 0 |.......... 0 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) ========================================================================================================================= 1. Prior .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 1 |.......... 0 |.......... 0 | 2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== 1. Prior .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |.......... 0 |.......... 0 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2H - SECTION 1 OTHER LIABILITY - OCCURRENCE ========================================================================================================================= 1. Prior .........|.......... 650 |........ 787 |........ 956 |........ 971 |........ 858 |........ 763 |........ 820 | 2. 1986 ..........|........ 1,685 |...... 1,203 |...... 1,419 |...... 1,338 |...... 1,439 |...... 1,372 |...... 1,331 | 3. 1987 ..........| X X X |...... 3,330 |........ 373 |...... 3,540 |...... 1,938 |...... 1,856 |...... 1,810 | 4. 1988 ..........| X X X | X X X |...... 3,709 |...... 3,923 |...... 3,065 |...... 2,541 |...... 2,399 | 5. 1989 ..........| X X X | X X X | X X X |...... 4,662 |...... 3,978 |...... 3,908 |...... 2,861 | 6. 1990 ..........| X X X | X X X | X X X | X X X |...... 4,587 |...... 4,428 |...... 4,576 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 4,562 |...... 4,824 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 4,660 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== 1. Prior .........|........ 846 |........ 763 |........ 785 |......... 22 |........ (61)| 2. 1986 ..........|...... 1,341 |...... 1,360 |...... 1,389 |......... 29 |......... 48 | 3. 1987 ..........|...... 1,824 |...... 1,822 |...... 1,793 |........ (29)|........ (31)| 4. 1988 ..........|...... 2,273 |...... 2,415 |...... 2,436 |......... 21 |........ 163 | 5. 1989 ..........|...... 3,018 |...... 2,922 |...... 2,973 |......... 51 |........ (45)| 6. 1990 ..........|...... 4,073 |...... 4,426 |...... 4,470 |......... 44 |........ 397 | 7. 1991 ..........|...... 5,087 |...... 4,480 |...... 4,805 |........ 325 |....... (282)| 8. 1992 ..........|...... 5,587 |...... 5,712 |...... 4,723 |....... (989)|....... (864)| 9. 1993 ..........|...... 4,771 |...... 5,140 |...... 4,778 |....... (362)|.......... 7 | 10. 1994 ..........| X X X |...... 4,752 |...... 4,528 |....... (224)| X X X | 11. 1995 ..........| X X X | X X X |...... 4,013 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |..... (1,112)|....... (668)| - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2H - SECTION 2 OTHER LIABILITY - CLAIMS-MADE ========================================================================================================================= 1. Prior .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- =========================================================================================== 1. Prior .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X | - ------------------------------------------------------------------------------------------| 12. TOTALS |.......... 0 |.......... 0 | - -------------------------------------------------------------------------------------------
99 28 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, GLASS, BURGLARY, AND THEFT)
========================================================================================================================= (1) | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) |---------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ------------------------------------------------------------------------------------------------------------------------- | | | | | | | | 1. Prior .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- ============================================================================================= (1) | | DEVELOPMENT | |-----------------------------------------------------------------------| Years in Which | (9) | (10) | (11) | (12) | (13) | Losses Were | | | | | | Incurred | 1993 | 1994 | 1995 | One Year | Two Year | - --------------------------------------------------------------------------------------------| | | | | | | 1. Prior .........|.......... 285 |........ 365 |........ 374 |.......... 9 |......... 89 | 2. 1994 ..........| X X X |........ 248 |........ 390 |........ 142 | X X X | 3. 1995 ..........| X X X | X X X |........ 461 | X X X | X X X | | | | | | | - --------------------------------------------------------------------------------------------| 4. TOTALS |........ 151 |......... 89 | - ---------------------------------------------------------------------------------------------
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE ========================================================================================================================= | | | | | | | | 1. Prior .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- ============================================================================================= | | | | | | 1. Prior .........|........ 1,342 |...... 1,630 |...... 1,424 |....... (206)|......... 82 | 2. 1994 ..........| X X X |...... 6,849 |...... 6,996 |........ 147 | X X X | 3. 1995 ..........| X X X | X X X |...... 7,605 | X X X | X X X | | | | | | | - --------------------------------------------------------------------------------------------| 4. TOTALS |........ (59)|......... 82 | - ---------------------------------------------------------------------------------------------
SCHEDULE P - PART 2K - FIDELITY, SURETY ========================================================================================================================= | | | | | | | | 1. Prior .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- ============================================================================================= | | | | | | 1. Prior .........|............ 0 |.......... 5 |.......... 5 |.......... 0 |.......... 5 | 2. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 3. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X | | | | | | | - --------------------------------------------------------------------------------------------| 4. TOTALS |.......... 0 |.......... 5 | - ---------------------------------------------------------------------------------------------
SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) ========================================================================================================================= | | | | | | | | 1. Prior .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- ============================================================================================= | | | | | | 1. Prior .........|............ 2 |.......... 5 |.......... 5 |.......... 0 |.......... 3 | 2. 1994 ..........| X X X |......... 21 |......... 23 |.......... 2 | X X X | 3. 1995 ..........| X X X | X X X |......... 19 | X X X | X X X | | | | | | | - --------------------------------------------------------------------------------------------| 4. TOTALS |.......... 2 |.......... 3 | - ---------------------------------------------------------------------------------------------
SCHEDULE P - PART 2M - INTERNATIONAL ========================================================================================================================= | | | | | | | | 1. Prior .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | | | | | | | | | - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- ============================================================================================= | | | | | | 1. Prior .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 8. 1992 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 9. 1993 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X | | | | | | | - --------------------------------------------------------------------------------------------| 12. TOTALS |.......... 0 |.......... 0 | - ---------------------------------------------------------------------------------------------
100 29 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 2N - REINSURANCE A
======================================================================================================================= (1) | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED ) |---------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ----------------------------------------------------------------------------------------------------------------------- 1. 1988 ........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 4. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 5. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 6. 1993 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- ========================================================================================== (1) |0 OMITTED ) | DEVELOPMENT | |----------------------------------------------------------------------| Years in Which | (9) | (10) | (11) | (12) | (13) | Losses Were | | | | | | Incurred | 1993 | 1994 | 1995 | One Year | Two Year | - -----------------------------------------------------------------------------------------| 1. 1988 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1989 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1990 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1991 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1992 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1993 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1994 ........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 8. 1995 ........| X X X | X X X |.......... 0 | X X X | X X X | - -----------------------------------------------------------------------------------------| 9. TOTALS |.......... 0 |.......... 0 | - ------------------------------------------------------------------------------------------
SCHEDULE P - PART 2O - REINSURANCE B ======================================================================================================================= 1. 1988 ........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 4. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 5. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 6. 1993 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- ========================================================================================== 1. 1988 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1989 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1990 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1991 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1992 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1993 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1994 ........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 8. 1995 ........| X X X | X X X |.......... 0 | X X X | X X X | - -----------------------------------------------------------------------------------------| 9. TOTALS |.......... 0 |.......... 0 | - ------------------------------------------------------------------------------------------
SCHEDULE P - PART 2P - REINSURANCE C ======================================================================================================================= 1. 1988 ........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 4. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 5. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 6. 1993 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- ========================================================================================== 1. 1988 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1989 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1990 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1991 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1992 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1993 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1994 ........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 8. 1995 ........| X X X | X X X |.......... 0 | X X X | X X X | - ----------------- 9. TOTALS |.......... 0 |.......... 0 | - ------------------------------------------------------------------------------------------
SCHEDULE P - PART 2Q - REINSURANCE D ======================================================================================================================= 1. Prior .......|............ 0 |......... 24 |......... 25 |......... 29 |......... 46 |......... 47 |......... 51 | 2. 1986 ........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- ========================================================================================== 1. Prior .......|.......... 55 |......... 58 |......... 69 |......... 11 |......... 14 | 2. 1986 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | - -----------------------------------------------------------------------------------------| 4. TOTALS |......... 11 |......... 14 | - ------------------------------------------------------------------------------------------
101 30 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 2R - SECTION 1 PRODUCTS LIABILITY - OCCURRENCE
======================================================================================================================= (1) | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED ) |---------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ----------------------------------------------------------------------------------------------------------------------- 1. Prior .......|............ 3 |.......... 4 |.......... 4 |.......... 4 |......... 87 |......... 79 |......... 80 | 2. 1986 ........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 1 |.......... 1 | 3. 1987 ........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ........| X X X | X X X |......... 12 |.......... 0 |.......... 0 |.......... 1 |.......... 2 | 5. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 2 |.......... 3 | 6. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 1 |.......... 2 | 7. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 4 |.......... 1 | 8. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 3 | 9. 1993 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- ========================================================================================== (1) | | DEVELOPMENT | |----------------------------------------------------------------------| Years in Which | (9) | (10) | (11) | (12) | (13) | Losses Were | | | | | | Incurred | 1993 | 1994 | 1995 | One Year | Two Year | - -----------------------------------------------------------------------------------------| 1. Prior .......|.......... 54 |......... 57 |......... 54 |......... (3)|.......... 0 | 2. 1986 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ........|........... 1 |.......... 1 |.......... 1 |.......... 0 |.......... 0 | 4. 1988 ........|........... 4 |.......... 4 |.......... 4 |.......... 0 |.......... 0 | 5. 1989 ........|........... 3 |.......... 3 |.......... 3 |.......... 0 |.......... 0 | 6. 1990 ........|........... 3 |.......... 3 |.......... 3 |.......... 0 |.......... 0 | 7. 1991 ........|........... 3 |.......... 3 |.......... 3 |.......... 0 |.......... 0 | 8. 1992 ........|........... 7 |.......... 7 |.......... 7 |.......... 0 |.......... 0 | 9. 1993 ........|........... 5 |.......... 5 |.......... 5 |.......... 0 |.......... 0 | 10. 1994 ........| X X X |.......... 7 |.......... 7 |.......... 0 | X X X | 11. 1995 ........| X X X | X X X |......... 14 | X X X | X X X | - -----------------------------------------------------------------------------------------| 12 TOTALS |......... (3)|.......... 0 | - ------------------------------------------------------------------------------------------
SCHEDULE P - PART 2R - SECTION 2 PRODUCTS LIABILITY - CLAIMS-MADE ======================================================================================================================= 1. Prior .......|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- ========================================================================================== 1. Prior .......|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 8. 1992 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 9. 1993 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 10. 1994 ........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X | 11. 1995 ........| X X X | X X X |.......... 0 | X X X | X X X | - -----------------------------------------------------------------------------------------| 12. TOTALS |.......... 0 |.......... 0 | - ------------------------------------------------------------------------------------------
SCHEDULE P - PART 2S FINANCIAL GUARANTY / MORTGAGE GUARANTY ====================================================================================================================== 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 2. 1994 .........| X X X |.......... 0 |.......... 0 |........... 0 | X X X | 3. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X | - -------------------------------------------------------------------------------------------| 4. TOTALS|........... 0 |........... 0 | - --------------------------------------------------------------------------------------------
102 31 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
======================================================================================================================== (1) | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ( $000 OMITTED ) |--------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ------------------------------------------------------------------------------------------------------------------------ 1. Prior .........| 0 0 0 |........ 100 |........ 139 |........ 801 |........ 815 |........ 820 |........ 828 | 2. 1986 ..........|....... 1,282 |...... 1,861 |...... 1,864 |...... 1,995 |...... 2,006 |...... 2,010 |...... 2,031 | 3. 1987 ..........| X X X |...... 1,290 |...... 1,971 |...... 2,057 |...... 2,196 |...... 2,347 |...... 2,332 | 4. 1988 ..........| X X X | X X X |...... 1,896 |...... 2,790 |...... 2,959 |...... 3,080 |...... 3,048 | 5. 1989 ..........| X X X | X X X | X X X |...... 2,008 |...... 2,904 |...... 3,319 |...... 3,527 | 6. 1990 ..........| X X X | X X X | X X X | X X X |...... 1,833 |...... 2,644 |...... 2,707 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 2,133 |...... 2,928 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 1,580 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------ =========================================================================================== (1) | | (12) | (13) | |-----------------------------------------| Number of | Number of | Years in Which | (9) | (10) | (11) |Claims Closed|Claims Closed| Losses Were | | | | With Loss | Without Loss| Incurred | 1993 | 1994 | 1995 | Payment | Payment | - ------------------------------------------------------------------------------------------| 1. Prior .........|........ 853 |........ 853 |........ 853 |.......... 0 |.......... 0 | 2. 1986 ..........|...... 2,030 |...... 2,030 |...... 2,031 |...... 1,287 |........ 367 | 3. 1987 ..........|...... 2,345 |...... 2,398 |...... 2,401 |...... 1,365 |........ 571 | 4. 1988 ..........|...... 3,071 |...... 3,095 |...... 3,269 |...... 1,491 |........ 538 | 5. 1989 ..........|...... 3,543 |...... 3,654 |...... 3,669 |...... 1,507 |........ 670 | 6. 1990 ..........|...... 2,856 |...... 2,902 |...... 2,948 |...... 1,411 |........ 555 | 7. 1991 ..........|...... 3,042 |...... 3,312 |...... 3,341 |...... 1,852 |........ 696 | 8. 1992 ..........|...... 2,464 |...... 2,577 |...... 2,628 |...... 1,554 |........ 476 | 9. 1993 ..........|...... 2,408 |...... 3,051 |...... 3,234 |...... 1,152 |........ 381 | 10. 1994 ..........| X X X |...... 3,131 |...... 4,447 |...... 1,548 |........ 501 | 11. 1995 ..........| X X X | X X X |...... 2,264 |........ 754 |........ 266 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 3B PRIVATE PASSENGER AUTO LIABILITY/MEDICAL ======================================================================================================================== 1. Prior .........| 0 0 0 |...... 2,281 |...... 3,513 |...... 4,300 |...... 5,425 |...... 5,703 |...... 5,888 | 2. 1986 ..........|....... 5,291 |...... 9,519 |..... 10,570 |..... 10,973 |..... 12,863 |..... 13,198 |..... 13,258 | 3. 1987 ..........| X X X |...... 5,411 |..... 11,924 |..... 13,257 |..... 15,445 |..... 16,786 |..... 17,148 | 4. 1988 ..........| X X X | X X X |...... 5,372 |..... 12,423 |..... 14,981 |..... 17,363 |..... 18,383 | 5. 1989 ..........| X X X | X X X | X X X |...... 5,963 |..... 14,604 |..... 18,650 |..... 20,459 | 6. 1990 ..........| X X X | X X X | X X X | X X X |...... 6,325 |..... 13,062 |..... 16,247 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 5,318 |..... 11,765 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 5,847 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------ =========================================================================================== 1. Prior .........|...... 6,067 |...... 6,100 |...... 6,077 |.......... 0 |.......... 0 | 2. 1986 ..........|..... 13,546 |..... 13,984 |..... 13,987 |...... 6,522 |...... 2,621 | 3. 1987 ..........|..... 17,287 |..... 17,653 |..... 17,778 |...... 7,011 |...... 2,748 | 4. 1988 ..........|..... 18,920 |..... 19,473 |..... 19,488 |...... 6,798 |...... 2,596 | 5. 1989 ..........|..... 21,248 |..... 22,371 |..... 22,791 |...... 6,391 |...... 2,524 | 6. 1990 ..........|..... 17,627 |..... 18,875 |..... 19,271 |...... 5,307 |...... 1,591 | 7. 1991 ..........|..... 13,609 |..... 15,319 |..... 15,846 |...... 4,612 |...... 1,238 | 8. 1992 ..........|..... 12,162 |..... 15,275 |..... 16,337 |...... 4,341 |...... 1,226 | 9. 1993 ..........|...... 5,081 |..... 10,957 |..... 13,952 |...... 3,719 |...... 1,264 | 10. 1994 ..........| X X X |...... 5,850 |..... 10,443 |...... 3,298 |........ 991 | 11. 1995 ..........| X X X | X X X |...... 4,751 |...... 1,908 |........ 688 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 3C COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL ======================================================================================================================== 1. Prior .........| 0 0 0 |........ 770 |...... 1,044 |...... 1,516 |...... 1,499 |...... 1,581 |...... 1,602 | 2. 1986 ..........|......... 426 |...... 1,134 |...... 1,426 |...... 1,535 |...... 2,021 |...... 2,088 |...... 2,167 | 3. 1987 ..........| X X X |........ 637 |...... 1,536 |...... 1,683 |...... 2,496 |...... 2,941 |...... 3,074 | 4. 1988 ..........| X X X | X X X |........ 675 |...... 1,209 |...... 1,972 |...... 2,681 |...... 3,181 | 5. 1989 ..........| X X X | X X X | X X X |........ 837 |...... 2,032 |...... 2,430 |...... 2,810 | 6. 1990 ..........| X X X | X X X | X X X | X X X |...... 1,074 |...... 2,623 |...... 3,394 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 1,503 |...... 3,633 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 1,418 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------ =========================================================================================== 1. Prior .........|...... 1,629 |...... 1,636 |...... 1,677 |.......... 0 |.......... 0 | 2. 1986 ..........|...... 2,246 |...... 2,254 |...... 2,254 |........ 462 |........ 193 | 3. 1987 ..........|...... 3,365 |...... 3,419 |...... 3,427 |........ 788 |........ 311 | 4. 1988 ..........|...... 3,566 |...... 3,611 |...... 3,620 |........ 814 |........ 314 | 5. 1989 ..........|...... 3,681 |...... 3,776 |...... 3,802 |........ 855 |........ 277 | 6. 1990 ..........|...... 4,057 |...... 4,619 |...... 5,164 |...... 1,047 |........ 253 | 7. 1991 ..........|...... 5,106 |...... 5,854 |...... 6,356 |...... 1,104 |........ 256 | 8. 1992 ..........|...... 3,694 |...... 5,115 |...... 6,174 |...... 1,038 |........ 214 | 9. 1993 ..........|...... 1,653 |...... 3,940 |...... 5,743 |...... 1,010 |........ 236 | 10. 1994 ..........| X X X |...... 1,762 |...... 3,319 |........ 993 |........ 273 | 11. 1995 ..........| X X X | X X X |...... 1,594 |........ 597 |........ 234 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 3D - WORKERS' COMPENSATION ======================================================================================================================== 1. Prior .........| 0 0 0 |........ 559 |........ 886 |...... 1,034 |...... 1,229 |...... 1,377 |...... 1,529 | 2. 1986 ..........|......... 123 |........ 260 |........ 445 |........ 495 |........ 524 |........ 566 |........ 579 | 3. 1987 ..........| X X X |........ 235 |........ 568 |........ 733 |........ 807 |........ 853 |........ 913 | 4. 1988 ..........| X X X | X X X |........ 342 |........ 855 |...... 1,172 |...... 1,428 |...... 1,679 | 5. 1989 ..........| X X X | X X X | X X X |........ 594 |...... 1,355 |...... 1,837 |...... 2,190 | 6. 1990 ..........| X X X | X X X | X X X | X X X |........ 499 |...... 1,275 |...... 1,927 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |........ 562 |...... 1,526 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |........ 746 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------ =========================================================================================== 1. Prior .........|...... 1,613 |...... 1,713 |...... 1,744 |.......... 0 |.......... 0 | 2. 1986 ..........|........ 588 |........ 590 |........ 614 |........ 157 |......... 18 | 3. 1987 ..........|........ 953 |........ 977 |........ 999 |........ 338 |......... 48 | 4. 1988 ..........|...... 1,795 |...... 1,874 |...... 1,909 |........ 467 |......... 47 | 5. 1989 ..........|...... 2,775 |...... 2,917 |...... 3,473 |........ 455 |......... 49 | 6. 1990 ..........|...... 2,526 |...... 3,109 |...... 3,985 |........ 441 |......... 66 | 7. 1991 ..........|...... 2,269 |...... 2,670 |...... 3,216 |........ 364 |......... 45 | 8. 1992 ..........|...... 1,840 |...... 2,566 |...... 3,691 |........ 346 |......... 69 | 9. 1993 ..........|...... 1,226 |...... 2,779 |...... 4,064 |........ 414 |......... 72 | 10. 1994 ..........| X X X |...... 1,162 |...... 2,760 |........ 405 |......... 70 | 11. 1995 ..........| X X X | X X X |...... 1,673 |........ 261 |......... 56 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL ======================================================================================================================== 1. Prior .........| 0 0 0 |........ 581 |...... 1,238 |...... 2,319 |...... 2,301 |...... 2,438 |...... 2,521 | 2. 1986 ..........|......... 764 |...... 1,181 |...... 1,330 |...... 1,506 |...... 1,641 |...... 1,765 |...... 1,892 | 3. 1987 ..........| X X X |...... 1,016 |...... 2,186 |...... 2,558 |...... 3,008 |...... 3,377 |...... 3,354 | 4. 1988 ..........| X X X | X X X |...... 1,530 |...... 2,607 |...... 2,864 |...... 3,054 |...... 3,274 | 5. 1989 ..........| X X X | X X X | X X X |...... 1,755 |...... 3,211 |...... 3,575 |...... 4,085 | 6. 1990 ..........| X X X | X X X | X X X | X X X |...... 2,382 |...... 5,658 |...... 5,990 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 3,671 |...... 6,456 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 3,759 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------ =========================================================================================== 1. Prior .........|...... 2,694 |...... 2,718 |...... 2,557 |.......... 0 |.......... 0 | 2. 1986 ..........|...... 1,947 |...... 1,949 |...... 1,962 |........ 621 |........ 199 | 3. 1987 ..........|...... 3,418 |...... 3,428 |...... 3,435 |........ 814 |........ 311 | 4. 1988 ..........|...... 3,568 |...... 3,135 |...... 3,272 |........ 923 |........ 303 | 5. 1989 ..........|...... 4,995 |...... 5,387 |...... 5,431 |...... 1,006 |........ 385 | 6. 1990 ..........|...... 7,551 |...... 7,966 |...... 8,355 |...... 1,302 |........ 461 | 7. 1991 ..........|...... 7,666 |...... 8,405 |..... 10,043 |...... 1,608 |........ 586 | 8. 1992 ..........|...... 6,553 |...... 7,234 |...... 8,263 |...... 1,566 |........ 596 | 9. 1993 ..........|...... 3,303 |...... 5,684 |...... 7,302 |...... 1,500 |........ 683 | 10. 1994 ..........| X X X |...... 7,244 |..... 11,185 |...... 1,605 |........ 748 | 11. 1995 ..........| X X X | X X X |...... 4,980 |........ 870 |........ 403 | - -------------------------------------------------------------------------------------------
103 32 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 3F - SECTION 1 MEDICAL MALPRACTICE - OCCURRENCE
====================================================================================================================== (1) | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ( $000 OMITTED ) |-------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ---------------------------------------------------------------------------------------------------------------------- 1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ (1) | | (12) | (13) | |-----------------------------------------| Number of | Number of | Years in Which | (9) | (10) | (11) | Claims Closed| Claims Closed| Losses Were | | | | With Loss | Without Loss | Incurred | 1993 | 1994 | 1995 | Payment | Payment | - -------------------------------------------------------------------------------------------| 1. Prior ........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 3. 1987 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 4. 1988 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 5. 1989 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 6. 1990 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 7. 1991 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 8. 1992 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 9. 1993 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 10. 1994 .........| X X X |.......... 0 |.......... 0 |........... 0 |........... 0 | 11. 1995 .........| X X X | X X X |.......... 0 |........... 0 |........... 0 | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3F - SECTION 2 MEDICAL MALPRACTICE - CLAIMS-MADE ====================================================================================================================== 1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 3. 1987 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 4. 1988 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 5. 1989 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 6. 1990 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 7. 1991 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 8. 1992 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 9. 1993 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 10. 1994 .........| X X X |.......... 0 |.......... 0 |........... 0 |........... 0 | 11. 1995 .........| X X X | X X X |.......... 0 |........... 0 |........... 0 | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) ====================================================================================================================== 1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 3. 1987 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 4. 1988 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 5. 1989 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 6. 1990 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 7. 1991 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 8. 1992 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 9. 1993 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 10. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X | 11. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3H - SECTION 1 OTHER LIABILITY - OCCURRENCE ====================================================================================================================== 1. Prior ........| 0 0 0 |........ 249 |........ 441 |........ 514 |........ 558 |........ 608 |........ 728 | 2. 1986 .........|........ 197 |........ 395 |........ 518 |........ 726 |........ 927 |...... 1,091 |...... 1,174 | 3. 1987 .........| X X X |........ 304 |........ 576 |........ 750 |........ 967 |...... 1,563 |...... 1,648 | 4. 1988 .........| X X X | X X X |........ 318 |........ 543 |........ 768 |........ 954 |...... 1,431 | 5. 1989 .........| X X X | X X X | X X X |........ 467 |........ 828 |...... 1,274 |...... 1,723 | 6. 1990 .........| X X X | X X X | X X X | X X X |........ 384 |...... 1,296 |...... 1,715 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........ 454 |...... 1,192 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |........ 352 | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........|........ 769 |........ 804 |........ 843 |........... 0 |........... 0 | 2. 1986 .........|...... 1,220 |...... 1,244 |...... 1,328 |......... 372 |......... 115 | 3. 1987 .........|...... 1,667 |...... 1,727 |...... 1,732 |......... 415 |......... 167 | 4. 1988 .........|...... 1,688 |...... 2,058 |...... 2,149 |......... 447 |......... 164 | 5. 1989 .........|...... 2,093 |...... 2,286 |...... 2,530 |......... 681 |......... 237 | 6. 1990 .........|...... 3,136 |...... 3,731 |...... 3,884 |......... 518 |......... 181 | 7. 1991 .........|...... 1,808 |...... 2,509 |...... 3,233 |......... 536 |......... 204 | 8. 1992 .........|........ 871 |...... 1,389 |...... 1,783 |......... 470 |......... 187 | 9. 1993 .........|........ 440 |........ 856 |...... 1,250 |......... 353 |......... 176 | 10. 1994 .........| X X X |........ 549 |........ 945 |......... 354 |......... 191 | 11. 1995 .........| X X X | X X X |........ 438 |......... 222 |......... 100 | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3H - SECTION 2 OTHER LIABILITY - CLAIMS-MADE ====================================================================================================================== 1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 3. 1987 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 4. 1988 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 5. 1989 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 6. 1990 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 7. 1991 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 8. 1992 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 9. 1993 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 | 10. 1994 .........| X X X |.......... 0 |.......... 0 |........... 0 |........... 0 | 11. 1995 .........| X X X | X X X |.......... 0 |........... 0 |........... 0 | - --------------------------------------------------------------------------------------------
104 33 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 3I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, GLASS, BURGLARY, AND THEFT)
====================================================================================================================== (1) | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ( $000 OMITTED ) |-------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ---------------------------------------------------------------------------------------------------------------------- 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ (1) | | (12) | (13) | |-----------------------------------------| Number of | Number of | Years in Which | (9) | (10) | (11) | Claims Closed| Claims Closed| Losses Were | | | | With Loss | Without Loss | Incurred | 1993 | 1994 | 1995 | Payment | Payment | - -------------------------------------------------------------------------------------------| 1. Prior ........| 0 0 0 |........ 111 |........ 140 | X X X | X X X | 2. 1994 .........| X X X |........ 119 |........ 211 | X X X | X X X | 3. 1995 .........| X X X | X X X |........ 177 | X X X | X X X | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE ====================================================================================================================== 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........| 0 0 0 |...... 1,044 |........ 957 |........... 0 |........... 0 | 2. 1994 .........| X X X |...... 6,117 |...... 6,376 |....... 4,876 |......... 897 | 3. 1995 .........| X X X | X X X |...... 6,410 |....... 3,667 |......... 567 | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3K - FIDELITY / SURETY ====================================================================================================================== 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........| 0 0 0 |.......... 5 |.......... 5 | X X X | X X X | 2. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X | 3. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) ====================================================================================================================== 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........| 0 0 0 |.......... 5 |.......... 5 | X X X | X X X | 2. 1994 .........| X X X |......... 14 |......... 23 | X X X | X X X | 3. 1995 .........| X X X | X X X |......... 18 | X X X | X X X | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3M - INTERNATIONAL ====================================================================================================================== 1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 3. 1987 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 4. 1988 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 5. 1989 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 6. 1990 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 7. 1991 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 8. 1992 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 9. 1993 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 10. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X | 11. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X | - --------------------------------------------------------------------------------------------
105 34 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 3N - REINSURANCE A
====================================================================================================================== (1) | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ( $000 OMITTED ) |-------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ---------------------------------------------------------------------------------------------------------------------- 1. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ (1) | | (12) | (13) | |-----------------------------------------| Number of | Number of | Years in Which | (9) | (10) | (11) | Claims Closed| Claims Closed| Losses Were | | | | With Loss | Without Loss | Incurred | 1993 | 1994 | 1995 | Payment | Payment | - -------------------------------------------------------------------------------------------| 1. 1988 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 2. 1989 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 3. 1990 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 4. 1991 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 5. 1992 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 6. 1993 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 7. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X | 8. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3O - REINSURANCE B ====================================================================================================================== 1. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. 1988 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 2. 1989 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 3. 1990 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 4. 1991 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 5. 1992 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 6. 1993 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 7. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X | 8. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3P - REINSURANCE C ====================================================================================================================== 1. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. 1988 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X | 2. 1989 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X | 3. 1990 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X | 4. 1991 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X | 5. 1992 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X | 6. 1993 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X | 7. 1994 .........| X X X |......... 0 |.......... 0 | X X X | X X X | 8. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X | - --------------------------------------------------------------------------------------------
SCHEDULE P - PART 3Q - REINSURANCE D ====================================================================================================================== 1. Prior ........| 0 0 0 |.......... 0 |.......... 3 |.......... 9 |......... 12 |......... 14 |......... 19 | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | - ---------------------------------------------------------------------------------------------------------------------- ============================================================================================ 1. Prior ........|......... 26 |......... 32 |......... 32 | X X X | X X X | 2. 1986 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | 3. 1987 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X | - --------------------------------------------------------------------------------------------
106 35 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 3R - SECTION 1 PRODUCTS LIABILITY - OCCURRENCE
======================================================================================================================== (1) | CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ( $000 OMITTED ) |--------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) | Losses Were | | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | - ------------------------------------------------------------------------------------------------------------------------ 1. Prior .........| 0 0 0 |.......... 1 |.......... 1 |.......... 1 |.......... 1 |.......... 2 |.......... 2 | 2. 1986 ..........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------ =========================================================================================== (1) | OMITTED ) | (12) | (13) | |-----------------------------------------| Number of | Number of | Years in Which | (9) | (10) | (11) |Claims Closed|Claims Closed| Losses Were | | | | With Loss | Without Loss| Incurred | 1993 | 1994 | 1995 | Payment | Payment | - ------------------------------------------------------------------------------------------| 1. Prior .........|......... 54 |......... 54 |......... 54 |.......... 0 |.......... 0 | 2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 11. 1995 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 3R - SECTION 2 PRODUCTS LIABILITY - CLAIMS-MADE ======================================================================================================================== 1. Prior .........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 | 8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 | 9. 1993 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 ..........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | - ------------------------------------------------------------------------------------------------------------------------ =========================================================================================== 1. Prior .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 | 11. 1995 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 | - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 3S - FINANCIAL GUARANTY / MORTGAGE GUARANTY ====================================================================================================================== 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | X X X | ============================================================================================ 1. Prior ........| 0 0 0 |.......... 0 |.......... 0 | X X X | X X X | 2. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X | 3. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X | - --------------------------------------------------------------------------------------------
107 36 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
============================================================================================================================ (1) | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) |-------------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Losses Were | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | - -------------------------------------------------------------------------------------------------------------------------- 1. Prior ........|............ (2)|............ 85 |............ 47 |............ 20 |............ 27 |............ 10 | 2. 1986 .........|........... 369 |........... 370 |............ 84 |............ 44 |............ 32 |............. 3 | 3. 1987 .........| X X X |........... 876 |........... 217 |........... 230 |............ 49 |............. 8 | 4. 1988 .........| X X X | X X X |........... 508 |........... 399 |............ 90 |............ 16 | 5. 1989 .........| X X X | X X X | X X X |........... 709 |........... 130 |............ 53 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 362 |............ 87 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 467 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
========================================================================================= (1) | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED| | EXPENSES AT YEAR END ( $000 OMITTED ) | |--------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Losses Were | | | | | Incurred | 1992 | 1993 | 1994 | 1995 | - ----------------------------------------------------------------------------------------| 1. Prior ........|.............. 8 |............ 0 |............. 0 |............. 0 | 2. 1986 .........|.............. 0 |............ 0 |............. 0 |............. 0 | 3. 1987 .........| ............. 6 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| ............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| ............ 40 |............. 0 |............. 0 |............. 0 | 6. 1990 .........| ........... 239 |........... 101 |............ 27 |............ 11 | 7. 1991 .........| ........... 315 |........... 110 |............ 41 |............ 19 | 8. 1992 .........| ........... 467 |........... 504 |........... 123 |........... 100 | 9. 1993 .........| X X X |........... 757 |........... 169 |........... 194 | 10. 1994 .........| X X X | X X X |........... 212 |........... 334 | 11. 1995 .........| X X X | X X X | X X X |......... 1,045 | - -----------------------------------------------------------------------------------------
SCHEDULE P - PART 4B PRIVATE PASSENGER AUTO LIABILITY/MEDICAL ========================================================================================================================== 1. Prior ........|........... 310 |............ 48 |............ 55 |............ 53 |............ 85 |........... 106 | 2. 1986 .........|......... 2,666 |........... 625 |........... 196 |........... 177 |............ 99 |............ 82 | 3. 1987 .........| X X X |......... 3,575 |........... 952 |........... 365 |........... 316 |........... 368 | 4. 1988 .........| X X X | X X X |......... 6,376 |......... 1,030 |........... 812 |........... 522 | 5. 1989 .........| X X X | X X X | X X X |......... 5,161 |......... 1,407 |......... 1,124 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 4,925 |......... 1,717 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 5,696 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= 1. Prior ........|........... 46 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|........... 55 |............. 4 |............. 5 |............. 6 | 3. 1987 .........|.......... 114 |............ 31 |............ 32 |............ 30 | 4. 1988 .........|.......... 120 |............ 66 |............ 38 |............ 67 | 5. 1989 .........|.......... 190 |............ 89 |............ 56 |............ 38 | 6. 1990 .........|........ 1,254 |........... 341 |........... 298 |........... 177 | 7. 1991 .........|........ 2,162 |........... 697 |........... 439 |........... 324 | 8. 1992 .........|........ 3,509 |......... 1,210 |........... 785 |........... 422 | 9. 1993 .........| X X X |......... 4,436 |........... 865 |........... 541 | 10. 1994 .........| X X X | X X X |......... 3,327 |......... 1,747 | 11. 1995 .........| X X X | X X X | X X X |......... 5,258 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 4C COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL ========================================================================================================================== 1. Prior ........|........... 559 |............ 65 |............ 35 |............ 63 |............ 24 |............ 10 | 2. 1986 .........|......... 1,413 |......... 1,245 |........... 696 |............ 65 |........... 111 |........... 127 | 3. 1987 .........| X X X |......... 1,879 |......... 1,956 |......... 1,620 |........... 317 |........... 162 | 4. 1988 .........| X X X | X X X |......... 3,292 |......... 2,108 |........... 832 |........... 112 | 5. 1989 .........| X X X | X X X | X X X |......... 2,681 |......... 1,436 |........... 757 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 2,370 |......... 1,220 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 2,755 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= 1. Prior ........|............ 2 |............. 2 |............. 3 |............. 3 | 2. 1986 .........|........... 38 |............ 37 |............ 38 |............ 30 | 3. 1987 .........|........... 75 |............ 37 |............ 43 |............ 32 | 4. 1988 .........|........... 91 |............ 74 |............ 56 |............ 42 | 5. 1989 .........|.......... 239 |........... 106 |............ 97 |............ 80 | 6. 1990 .........|.......... 833 |........... 255 |........... 137 |............ 97 | 7. 1991 .........|........ 1,084 |........... 697 |........... 148 |........... 141 | 8. 1992 .........|........ 3,866 |......... 1,375 |........... 808 |........... 441 | 9. 1993 .........| X X X |......... 3,562 |........... 984 |........... 861 | 10. 1994 .........| X X X | X X X |......... 4,989 |......... 3,447 | 11. 1995 .........| X X X | X X X | X X X |......... 4,850 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 4D - WORKERS' COMPENSATION ========================================================================================================================== 1. Prior ........|........... 410 |........... 585 |........... 209 |............ 97 |............ 89 |............ 88 | 2. 1986 .........|........... 359 |........... 145 |........... 129 |............ 75 |............ 98 |............ 83 | 3. 1987 .........| X X X |........... 569 |........... 286 |........... 329 |........... 162 |........... 114 | 4. 1988 .........| X X X | X X X |......... 1,360 |......... 1,303 |........... 830 |........... 128 | 5. 1989 .........| X X X | X X X | X X X |......... 1,494 |......... 1,000 |........... 217 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,775 |........... 423 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,316 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= 1. Prior ........|........... 64 |............ 70 |............ 35 |............ 33 | 2. 1986 .........|........... 47 |............ 31 |............ 15 |............ 17 | 3. 1987 .........|........... 61 |............ 42 |............ 18 |............ 16 | 4. 1988 .........|........... 90 |............ 59 |............ 33 |............ 38 | 5. 1989 .........|.......... 133 |........... 122 |............ 74 |............ 56 | 6. 1990 .........|.......... 305 |........... 512 |........... 118 |............ 98 | 7. 1991 .........|........ 1,047 |........... 892 |........... 183 |........... 162 | 8. 1992 .........|........ 1,515 |......... 1,142 |........... 410 |........... 249 | 9. 1993 .........| X X X |......... 2,666 |........... 828 |........... 448 | 10. 1994 .........| X X X | X X X |......... 3,173 |......... 1,927 | 11. 1995 .........| X X X | X X X | X X X |......... 4,578 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL ========================================================================================================================== 1. Prior ........|............ 94 |............ 93 |............ 92 |............ 47 |............ 34 |............. 0 | 2. 1986 .........|......... 1,187 |........... 661 |........... 106 |............ 61 |............ 34 |............. 0 | 3. 1987 .........| X X X |......... 2,661 |........... 504 |........... 258 |........... 111 |........... (27)| 4. 1988 .........| X X X | X X X |......... 1,592 |........... 761 |........... 428 |........... 127 | 5. 1989 .........| X X X | X X X | X X X |......... 2,132 |........... 731 |........... 313 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,040 |........... 649 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,512 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 2 |............ 19 |............ 23 |............ 18 | 4. 1988 .........|........... 45 |........... 103 |........... 108 |............ 94 | 5. 1989 .........|.......... 110 |........... 167 |............ 22 |............ 55 | 6. 1990 .........|.......... 166 |........... 187 |............ 49 |............ 29 | 7. 1991 .........|.......... 466 |........... 319 |........... 134 |........... 208 | 8. 1992 .........|........ 2,159 |........... 508 |........... 389 |........... 556 | 9. 1993 .........| X X X |......... 2,485 |........... 752 |........... 570 | 10. 1994 .........| X X X | X X X |........... 705 |........... 677 | 11. 1995 .........| X X X | X X X | X X X |......... 3,146 | - ---------------------------------------------------------------------------------------
108 37 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 4F - SECTION 1 MEDICAL MALPRACTICE - OCCURRENCE
============================================================================================================================= (1) | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)| |-------------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Losses Were | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) |BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED| |EXPENSES AT YEAR END ($000 OMITTED) | |-------------------------------------------------------------------- Years in Which | (8) | (9) | (10) | (11) | Losses Were | | | | | Incurred | 1992 | 1993 | 1994 | 1995 | - ---------------------------------------------------------------------------------------| 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ----------------------------------------------------------------------------------------
SCHEDULE P - PART 4F - SECTION 2 MEDICAL MALPRACTICE - CLAIMS-MADE
=========================================================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------------
======================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ----------------------------------------------------------------------------------------
SCHEDULE P - PART 4G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY)
=========================================================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------------
======================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ----------------------------------------------------------------------------------------
SCHEDULE P - PART 4H - SECTION 1 OTHER LIABILITY - OCCURRENCE ========================================================================================================================== 1. Prior ........|........... 214 |............ 36 |........... 125 |........... 263 |........... 122 |............ 33 | 2. 1986 .........|......... 1,233 |........... 599 |........... 592 |........... 242 |........... 223 |............ 73 | 3. 1987 .........| X X X |......... 2,671 |......... 2,471 |......... 2,416 |........... 578 |............ 98 | 4. 1988 .........| X X X | X X X |......... 3,026 |......... 2,913 |......... 1,507 |........... 406 | 5. 1989 .........| X X X | X X X | X X X |......... 3,914 |......... 2,533 |......... 1,829 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 3,620 |......... 2,343 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 330 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= 1. Prior ........|........... 12 |............ 12 |............ 11 |............ 31 | 2. 1986 .........|........... 31 |............. 8 |............ 10 |............ 11 | 3. 1987 .........|........... 77 |............ 66 |............ 70 |............ 43 | 4. 1988 .........|.......... 137 |........... 107 |............ 72 |............ 64 | 5. 1989 .........|.......... 474 |........... 238 |........... 149 |........... 114 | 6. 1990 .........|........ 2,014 |........... 195 |........... 149 |........... 184 | 7. 1991 .........|........ 2,253 |......... 2,202 |........... 660 |........... 751 | 8. 1992 .........|........ 3,354 |......... 2,760 |......... 2,564 |........... 862 | 9. 1993 .........| X X X |......... 3,665 |......... 2,935 |......... 1,544 | 10. 1994 .........| X X X | X X X |......... 3,481 |......... 2,179 | 11. 1995 .........| X X X | X X X | X X X |......... 2,845 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 4H - SECTION 2 OTHER LIABILITY - CLAIMS-MADE
=========================================================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------------
======================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ----------------------------------------------------------------------------------------
109 38 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 4I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, GLASS, BURGLARY AND THEFT)
=========================================================================================================================== (1) |BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)| |-------------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Losses Were | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | - ---------------------------------------------------------------------------------------------------------------------------| 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) |BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED| |EXPENSES AT YEAR END ($000 OMITTED) | |----------------------------------------------------------------- | Years in Which | (8) | (9) | (10) | (11) | Losses Were | | | | | Incurred | 1992 | 1993 | 1994 | 1995 | - ------------------------------------------------------------------------------------- | 1. Prior ........| X X X |........... 194 |........... 221 |........... 213 | 2. 1994 .........| X X X | X X X |............ 95 |........... 147 | 3. 1995 .........| X X X | X X X | X X X |........... 218 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
========================================================================================================================== 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= 1. Prior ........| X X X |........... 898 |........... 546 |........... 424 | 2. 1994 .........| X X X | X X X |........... 347 |........... 568 | 3. 1995 .........| X X X | X X X | X X X |........... 528 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 4K - FIDELITY / SURETY
========================================================================================================================== 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= 1. Prior ........| X X X |............ 0 |............. 0 |............. 0 | 2. 1994 .........| X X X | X X X |............. 0 |............. 0 | 3. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
========================================================================================================================== 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= 1. Prior ........| X X X |............. 0 |............. 0 |............. 0 | 2. 1994 .........| X X X | X X X |............. 0 |............. 0 | 3. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 4M - INTERNATIONAL
=========================================================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------------
======================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ----------------------------------------------------------------------------------------
110 39 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 4N - REINSURANCE A
============================================================================================================================= (1) | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)| |--------------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Losses Were | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | - ------------------------------------------------------------------------------------------------------------------------------ 1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |................ 0 | 2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |................ 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |................ 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |................ 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) |BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED| |EXPENSES AT YEAR END ( $000 OMITTED ) | |-------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Losses Were | | | | | Incurred | 1992 | 1993 | 1994 | 1995 | - ---------------------------------------------------------------------------------------| 1. 1988 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 2. 1989 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 3. 1990 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 4. 1991 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 5. 1992 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 6. 1993 .........| X X X |............. 0 |............. 0 |................ 0 | 7. 1994 .........| X X X | X X X |............. 0 |................ 0 | 8. 1995 .........| X X X | X X X | X X X |................ 0 | - -------------------------------------------------------------------------------------
SCHEDULE P - PART 4O - REINSURANCE B
============================================================================================================================= 1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |................ 0 | 2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |................ 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |................ 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |................ 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------------
======================================================================================== 1. 1988 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 2. 1989 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 3. 1990 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 4. 1991 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 5. 1992 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 6. 1993 .........| X X X |............. 0 |............. 0 |................ 0 | 7. 1994 .........| X X X | X X X |............. 0 |................ 0 | 8. 1995 .........| X X X | X X X | X X X |................ 0 | - -------------------------------------------------------------------------------------
SCHEDULE P - PART 4P - REINSURANCE C
============================================================================================================================= 1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |................ 0 | 2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |................ 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |................ 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |................ 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------------
======================================================================================== 1. 1988 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 2. 1989 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 3. 1990 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 4. 1991 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 5. 1992 .........|.......... 0 |............. 0 |............. 0 |................ 0 | 6. 1993 .........| X X X |............. 0 |............. 0 |................ 0 | 7. 1994 .........| X X X | X X X |............. 0 |................ 0 | 8. 1995 .........| X X X | X X X | X X X |................ 0 | - -------------------------------------------------------------------------------------
SCHEDULE P - PART 4Q - REINSURANCE D
========================================================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............ 14 |............ 13 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================== 1. Prior ........|............ 13 |............. 8 |............. 3 |............. 3 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............. 0 |............. 0 |............. 0 |............. 0 | - ----------------------------------------------------------------------------------------
111 40 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 4R - SECTION 1 PRODUCTS LIABILITY - OCCURRENCE
============================================================================================================================= (1) | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)| |--------------------------------------------------------------------------------------------------------- Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Losses Were | | | | | | | Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............ 10 |............. 2 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 1 | 3. 1987 .........| X X X |............. 0 |............. 2 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 1 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 2 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 1 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 4 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ----------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) |BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED| |EXPENSES AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------ | Years in Which | (8) | (9) | (10) | (11) | Losses Were | | | | | Incurred | 1992 | 1993 | 1994 | 1995 | - -------------------------------------------------------------------------------------- | 1. Prior ........|............ 3 |............. 0 |............. 3 |............. 0 | 2. 1986 .........|............ 1 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 1 |............. 1 |............. 1 | 4. 1988 .........|............ 2 |............. 4 |............. 4 |............. 4 | 5. 1989 .........|............ 3 |............. 3 |............. 3 |............. 3 | 6. 1990 .........|............ 2 |............. 3 |............. 3 |............. 3 | 7. 1991 .........|............ 1 |............. 3 |............. 3 |............. 3 | 8. 1992 .........|............ 3 |............. 7 |............. 6 |............. 7 | 9. 1993 .........| X X X |............. 5 |............. 5 |............. 5 | 10. 1994 .........| X X X | X X X |............. 7 |............. 7 | 11. 1995 .........| X X X | X X X | X X X |............ 14 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 4R - SECTION 2 PRODUCTS LIABILITY - CLAIMS-MADE
=========================================================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - ---------------------------------------------------------------------------------------------------------------------------
======================================================================================== 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ----------------------------------------------------------------------------------------
SCHEDULE P - PART 4S - FINANCIAL GUARANTY / MORTGAGE GUARANTY
========================================================================================================================== 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= 1. Prior ........| X X X |............. 0 |............. 0 |............. 0 | 2. 1994 .........| X X X | X X X |............. 0 |............. 0 | 3. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
112 41 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5A - HOMEOWNERS / FARMOWNERS SECTION 1
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 2 |............. 3 |............. 2 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |......... 1,286 |......... 1,286 |......... 1,286 | 3. 1987 .........| X X X |............. 0 |............. 0 |......... 1,350 |......... 1,356 |......... 1,363 | 4. 1988 .........| X X X | X X X |............. 0 |......... 1,443 |......... 1,467 |......... 1,476 | 5. 1989 .........| X X X | X X X | X X X |......... 1,081 |......... 1,460 |......... 1,483 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,071 |......... 1,372 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,514 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND | | ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 1 |............. 1 |............. 0 |............. 0 | 2. 1986 .........|........ 1,287 |......... 1,287 |......... 1,287 |......... 1,287 | 3. 1987 .........|........ 1,364 |......... 1,364 |......... 1,365 |......... 1,365 | 4. 1988 .........|........ 1,485 |......... 1,485 |......... 1,490 |......... 1,491 | 5. 1989 .........|........ 1,500 |......... 1,503 |......... 1,506 |......... 1,507 | 6. 1990 .........|........ 1,392 |......... 1,402 |......... 1,408 |......... 1,411 | 7. 1991 .........|........ 1,831 |......... 1,842 |......... 1,849 |......... 1,852 | 8. 1992 .........|.......... 968 |......... 1,533 |......... 1,551 |......... 1,554 | 9. 1993 .........| X X X |........... 934 |......... 1,141 |......... 1,152 | 10. 1994 .........| X X X | X X X |......... 1,270 |......... 1,548 | 11. 1995 .........| X X X | X X X | X X X |........... 754 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 6 |............. 4 |............. 1 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 5 |............. 2 |............. 2 | 3. 1987 .........| X X X |............. 0 |............. 0 |............ 19 |............ 13 |............. 4 | 4. 1988 .........| X X X | X X X |............. 0 |............ 30 |............ 22 |............ 15 | 5. 1989 .........| X X X | X X X | X X X |........... 345 |............ 47 |............ 23 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 293 |............ 46 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 338 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 1 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 3 |............. 2 |............. 0 |............. 0 | 4. 1988 .........|............ 7 |............. 7 |............. 2 |............. 1 | 5. 1989 .........|............ 7 |............. 6 |............. 2 |............. 1 | 6. 1990 .........|........... 23 |............ 14 |............. 9 |............. 6 | 7. 1991 .........|........... 35 |............ 18 |............ 13 |............ 11 | 8. 1992 .........|.......... 466 |............ 34 |............ 14 |............. 9 | 9. 1993 .........| X X X |........... 207 |............ 29 |............ 19 | 10. 1994 .........| X X X | X X X |........... 232 |............ 39 | 11. 1995 .........| X X X | X X X | X X X |........... 225 | - ---------------------------------------------------------------------------------------
SECTION 3
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |......... 1,654 |......... 1,654 |......... 1,654 | 3. 1987 .........| X X X |............. 0 |............. 0 |......... 1,934 |......... 1,936 |......... 1,936 | 4. 1988 .........| X X X | X X X |............. 0 |......... 2,012 |......... 2,024 |......... 2,027 | 5. 1989 .........| X X X | X X X | X X X |......... 1,950 |......... 2,168 |......... 2,172 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,833 |......... 1,963 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 2,420 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END| |-------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - -------------------------------------------------------------------------------------- | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|........ 1,654 |......... 1,654 |......... 1,654 |......... 1,654 | 3. 1987 .........|........ 1,936 |......... 1,936 |......... 1,936 |......... 1,936 | 4. 1988 .........|........ 2,028 |......... 2,029 |......... 2,030 |......... 2,030 | 5. 1989 .........|........ 2,174 |......... 2,177 |......... 2,178 |......... 2,178 | 6. 1990 .........|........ 1,967 |......... 1,971 |......... 1,972 |......... 1,972 | 7. 1991 .........|........ 2,550 |......... 2,555 |......... 2,559 |......... 2,559 | 8. 1992 .........|........ 1,792 |......... 2,037 |......... 2,039 |......... 2,039 | 9. 1993 .........| X X X |......... 1,458 |......... 1,547 |......... 1,552 | 10. 1994 .........| X X X | X X X |......... 1,946 |......... 2,088 | 11. 1995..........| X X X | X X X | X X X |......... 1,245 | - ---------------------------------------------------------------------------------------
113 42 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5B PRIVATE PASSENGER AUTO LIABILITY / MEDICAL SECTION 1
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |-----------------------------------------------------------------------------------------------------| Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............ 60 |............ 32 |............ 17 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |......... 6,376 |......... 6,455 |......... 6,389 | 3. 1987 .........| X X X |............. 0 |............. 0 |......... 6,683 |......... 6,857 |......... 6,938 | 4. 1988 .........| X X X | X X X |............. 0 |......... 6,048 |......... 6,446 |......... 6,628 | 5. 1989 .........| X X X | X X X | X X X |......... 3,382 |......... 5,558 |......... 6,054 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 2,645 |......... 4,732 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 2,576 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND | | ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|........... 12 |............ 10 |............. 2 |............. 2 | 2. 1986 .........|........ 6,507 |......... 6,514 |......... 6,521 |......... 6,522 | 3. 1987 .........|........ 6,973 |......... 6,999 |......... 7,002 |......... 7,011 | 4. 1988 .........|........ 6,718 |......... 6,751 |......... 6,792 |......... 6,798 | 5. 1989 .........|........ 6,235 |......... 6,312 |......... 6,375 |......... 6,391 | 6. 1990 .........|........ 5,073 |......... 5,196 |......... 5,283 |......... 5,307 | 7. 1991 .........|........ 4,160 |......... 4,447 |......... 4,576 |......... 4,612 | 8. 1992 .........|........ 2,370 |......... 3,897 |......... 4,230 |......... 4,341 | 9. 1993 .........| X X X |......... 2,179 |......... 3,496 |......... 3,719 | 10. 1994 .........| X X X | X X X |......... 2,237 |......... 3,298 | 11. 1995 .........| X X X | X X X | X X X |......... 1,908 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............ 87 |............ 50 |............ 35 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 150 |............ 65 |............ 44 | 3. 1987 .........| X X X |............. 0 |............. 0 |........... 298 |........... 178 |............ 84 | 4. 1988 .........| X X X | X X X |............. 0 |........... 583 |........... 296 |........... 150 | 5. 1989 .........| X X X | X X X | X X X |......... 2,358 |........... 669 |........... 315 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,543 |........... 477 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,532 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|........... 18 |............. 9 |............. 4 |............. 3 | 2. 1986 .........|........... 15 |............ 10 |............. 2 |............. 2 | 3. 1987 .........|........... 47 |............ 22 |............ 15 |............. 8 | 4. 1988 .........|........... 76 |............ 38 |............ 23 |............ 18 | 5. 1989 .........|.......... 176 |............ 89 |............ 47 |............ 26 | 6. 1990 .........|.......... 215 |........... 116 |............ 60 |............ 35 | 7. 1991 .........|.......... 474 |........... 225 |........... 116 |............ 85 | 8. 1992 .........|........ 1,517 |........... 502 |........... 214 |........... 136 | 9. 1993 .........| X X X |......... 1,458 |........... 381 |........... 209 | 10. 1994 .........| X X X | X X X |......... 1,169 |........... 393 | 11. 1995 .........| X X X | X X X | X X X |......... 1,058 | - ---------------------------------------------------------------------------------------
SECTION 3
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |......... 9,126 |......... 9,137 |......... 9,142 | 3. 1987 .........| X X X |............. 0 |............. 0 |......... 9,670 |......... 9,759 |......... 9,758 | 4. 1988 .........| X X X | X X X |............. 0 |......... 9,089 |......... 9,269 |......... 9,338 | 5. 1989 .........| X X X | X X X | X X X |......... 7,490 |......... 8,632 |......... 8,824 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 5,181 |......... 6,740 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 4,871 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995....... 0 | X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END| |-------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - ---------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|......... 9,144 |......... 9,145 |......... 9,145 |......... 9,145 | 3. 1987 .........| ........ 9,762 |......... 9,768 |......... 9,763 |......... 9,765 | 4. 1988 .........| ........ 9,371 |......... 9,375 |......... 9,408 |......... 9,410 | 5. 1989 .........| ........ 8,890 |......... 8,896 |......... 8,941 |......... 8,941 | 6. 1990 .........| ........ 6,837 |......... 6,881 |......... 6,928 |......... 6,933 | 7. 1991 .........| ........ 5,778 |......... 5,868 |......... 5,920 |......... 5,935 | 8. 1992 .........| ........ 4,721 |......... 5,554 |......... 5,666 |......... 5,703 | 9. 1993 .........| X X X |......... 4,497 |......... 5,104 |......... 5,192 | 10. 1994 .........| X X X | X X X |......... 4,119 |......... 4,682 | 11. 1995....... 0 | X X X | X X X | X X X |......... 3,654 | - ----------------------------------------------------------------------------------------
114 43 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL SECTION 1
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............ 23 |............. 4 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 447 |........... 455 |........... 459 | 3. 1987 .........| X X X |............. 0 |............. 0 |........... 730 |........... 761 |........... 774 | 4. 1988 .........| X X X | X X X |............. 0 |........... 692 |........... 754 |........... 787 | 5. 1989 .........| X X X | X X X | X X X |........... 522 |........... 768 |........... 814 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 610 |........... 944 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 634 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT | | DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 2 |............. 2 |............. 1 |............. 2 | 2. 1986 .........|.......... 461 |........... 462 |........... 462 |........... 462 | 3. 1987 .........|.......... 780 |........... 701 |........... 788 |........... 788 | 4. 1988 .........|.......... 799 |........... 807 |........... 813 |........... 814 | 5. 1989 .........|.......... 831 |........... 847 |........... 853 |........... 855 | 6. 1990 .........|.......... 998 |......... 1,019 |......... 1,038 |......... 1,047 | 7. 1991 .........|.......... 986 |......... 1,053 |......... 1,088 |......... 1,104 | 8. 1992 .........|.......... 647 |........... 924 |......... 1,005 |......... 1,038 | 9. 1993 .........| X X X |........... 618 |........... 940 |......... 1,010 | 10. 1994 .........| X X X | X X X |........... 739 |........... 993 | 11. 1995 .........| X X X | X X X | X X X |........... 597 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............ 19 |............ 14 |............ 10 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............ 14 |............. 9 |............. 5 | 3. 1987 .........| X X X |............. 0 |............. 0 |............ 43 |............ 26 |............ 16 | 4. 1988 .........| X X X | X X X |............. 0 |............ 85 |............ 44 |............ 24 | 5. 1989 .........| X X X | X X X | X X X |........... 251 |............ 73 |............ 37 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 286 |............ 86 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 320 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 7 |............. 5 |............. 2 |............. 1 | 2. 1986 .........|............ 2 |............. 1 |............. 0 |............. 0 | 3. 1987 .........|............ 9 |............. 4 |............. 5 |............. 0 | 4. 1988 .........|........... 12 |............. 7 |............. 3 |............. 2 | 5. 1989 .........|........... 21 |............. 7 |............. 2 |............. 0 | 6. 1990 .........|........... 43 |............ 27 |............ 15 |............. 5 | 7. 1991 .........|.......... 107 |............ 63 |............ 39 |............ 20 | 8. 1992 .........|.......... 268 |........... 120 |............ 78 |............ 52 | 9. 1993 .........| X X X |........... 290 |........... 107 |............ 59 | 10. 1994 .........| X X X | X X X |........... 260 |........... 123 | 11. 1995 .........| X X X | X X X | X X X |........... 281 | - ---------------------------------------------------------------------------------------
SECTION 3
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 652 |........... 655 |........... 655 | 3. 1987 .........| X X X |............. 0 |............. 0 |......... 1,071 |......... 1,089 |......... 1,099 | 4. 1988 .........| X X X | X X X |............. 0 |......... 1,076 |......... 1,104 |......... 1,118 | 5. 1989 .........| X X X | X X X | X X X |........... 942 |......... 1,098 |......... 1,118 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,072 |......... 1,276 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,122 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END| |-------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - ---------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|........... 655 |........... 655 |........... 655 |........... 655 | 3. 1987 .........| ........ 1,098 |........... 974 |......... 1,102 |......... 1,099 | 4. 1988 .........| ........ 1,121 |......... 1,041 |......... 1,130 |......... 1,130 | 5. 1989 .........| ........ 1,128 |......... 1,128 |......... 1,131 |......... 1,132 | 6. 1990 .........| ........ 1,288 |......... 1,298 |......... 1,305 |......... 1,305 | 7. 1991 .........| ........ 1,332 |......... 1,369 |......... 1,379 |......... 1,380 | 8. 1992 .........| ........ 1,073 |......... 1,259 |......... 1,295 |......... 1,304 | 9. 1993 .........| X X X |......... 1,071 |......... 1,278 |......... 1,305 | 10. 1994 .........| X X X | X X X |......... 1,213 |......... 1,389 | 11. 1995..........| X X X | X X X | X X X |......... 1,112 | - ----------------------------------------------------------------------------------------
115 44 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5D - WORKERS' COMPENSATION SECTION 1
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 8 |............. 3 |............. 2 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 152 |........... 154 |........... 155 | 3. 1987 .........| X X X |............. 0 |............. 0 |........... 312 |........... 330 |........... 332 | 4. 1988 .........| X X X | X X X |............. 0 |........... 411 |........... 438 |........... 444 | 5. 1989 .........| X X X | X X X | X X X |........... 225 |........... 392 |........... 415 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 193 |........... 354 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 146 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
========================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 2 |............. 2 |............. 1 |............. 0 | 2. 1986 .........|.......... 156 |........... 155 |........... 155 |........... 157 | 3. 1987 .........|.......... 337 |........... 339 |........... 338 |........... 338 | 4. 1988 .........|.......... 458 |........... 463 |........... 465 |........... 467 | 5. 1989 .........|.......... 427 |........... 451 |........... 453 |........... 455 | 6. 1990 .........|.......... 412 |........... 431 |........... 439 |........... 441 | 7. 1991 .........|.......... 296 |........... 341 |........... 360 |........... 364 | 8. 1992 .........|.......... 126 |........... 284 |........... 331 |........... 346 | 9. 1993 .........| X X X |........... 156 |........... 369 |........... 414 | 10. 1994 .........| X X X | X X X |........... 272 |........... 405 | 11. 1995 .........| X X X | X X X | X X X |........... 261 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............ 21 |............ 17 |............ 15 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 6 |............. 3 |............. 2 | 3. 1987 .........| X X X |............. 0 |............. 0 |............ 31 |............ 13 |............ 11 | 4. 1988 .........| X X X | X X X |............. 0 |............ 48 |............ 29 |............ 26 | 5. 1989 .........| X X X | X X X | X X X |........... 186 |............ 68 |............ 50 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 206 |........... 109 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 197 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|........... 13 |............ 11 |............. 6 |............ 10 | 2. 1986 .........|............ 1 |............. 2 |............. 1 |............. 0 | 3. 1987 .........|............ 5 |............. 3 |............. 4 |............. 4 | 4. 1988 .........|........... 15 |............ 10 |............. 8 |............. 7 | 5. 1989 .........|........... 40 |............ 16 |............ 12 |............ 12 | 6. 1990 .........|........... 47 |............ 30 |............ 27 |............ 26 | 7. 1991 .........|........... 94 |............ 53 |............ 35 |............ 30 | 8. 1992 .........|.......... 177 |........... 108 |............ 63 |............ 54 | 9. 1993 .........| X X X |........... 273 |........... 131 |............ 93 | 10. 1994 .........| X X X | X X X |........... 210 |........... 156 | 11. 1995 .........| X X X | X X X | X X X |........... 248 | - ---------------------------------------------------------------------------------------
SECTION 3
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 175 |........... 175 |........... 175 | 3. 1987 .........| X X X |............. 0 |............. 0 |........... 386 |........... 389 |........... 389 | 4. 1988 .........| X X X | X X X |............. 0 |........... 500 |........... 511 |........... 516 | 5. 1989 .........| X X X | X X X | X X X |........... 434 |........... 506 |........... 512 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 425 |........... 514 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 361 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END| |-------------------------------------------------------------------- Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - ---------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|........... 175 |........... 175 |........... 173 |........... 175 | 3. 1987 .........| .......... 390 |........... 390 |........... 390 |........... 390 | 4. 1988 .........| .......... 520 |........... 520 |........... 520 |........... 521 | 5. 1989 .........| .......... 514 |........... 515 |........... 514 |........... 516 | 6. 1990 .........| .......... 523 |........... 527 |........... 530 |........... 533 | 7. 1991 .........| .......... 429 |........... 437 |........... 439 |........... 439 | 8. 1992 .........| .......... 338 |........... 454 |........... 461 |........... 469 | 9. 1993 .........| X X X |........... 476 |........... 570 |........... 579 | 10. 1994 .........| X X X | X X X |........... 542 |........... 631 | 11. 1995..........| X X X | X X X | X X X |........... 565 | - ----------------------------------------------------------------------------------------
116 45 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5E - COMMERCIAL MULTIPLE PERIL SECTION 1
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............ 14 |............. 8 |............. 7 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 531 |........... 538 |........... 543 | 3. 1987 .........| X X X |............. 0 |............. 0 |........... 741 |........... 770 |........... 800 | 4. 1988 .........| X X X | X X X |............. 0 |........... 824 |........... 870 |........... 888 | 5. 1989 .........| X X X | X X X | X X X |........... 542 |........... 889 |........... 943 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 809 |......... 1,201 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,082 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND | | ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 4 |............. 3 |............. 1 |............. 1 | 2. 1986 .........|.......... 549 |........... 567 |........... 603 |........... 621 | 3. 1987 .........|.......... 810 |........... 814 |........... 814 |........... 814 | 4. 1988 .........|.......... 909 |........... 923 |........... 923 |........... 923 | 5. 1989 .........|.......... 975 |........... 995 |......... 1,004 |......... 1,006 | 6. 1990 .........|........ 1,250 |......... 1,273 |......... 1,290 |......... 1,302 | 7. 1991 .........|........ 1,488 |......... 1,542 |......... 1,586 |......... 1,608 | 8. 1992 .........|.......... 960 |......... 1,480 |......... 1,529 |......... 1,566 | 9. 1993 .........| X X X |......... 1,037 |......... 1,429 |......... 1,500 | 10. 1994 .........| X X X | X X X |......... 1,240 |......... 1,605 | 11. 1995 .........| X X X | X X X | X X X |........... 870 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............ 36 |............ 25 |............ 19 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............ 43 |............ 33 |............ 25 | 3. 1987 .........| X X X |............. 0 |............. 0 |............ 81 |............ 59 |............ 27 | 4. 1988 .........| X X X | X X X |............. 0 |............ 94 |............ 63 |............ 49 | 5. 1989 .........| X X X | X X X | X X X |........... 290 |........... 110 |............ 67 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 332 |........... 109 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 436 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|........... 14 |............ 12 |............. 7 |............. 7 | 2. 1986 .........|........... 19 |............ 13 |............. 9 |............ 12 | 3. 1987 .........|........... 11 |............. 7 |............. 7 |............. 7 | 4. 1988 .........|........... 31 |............ 18 |............. 7 |............. 6 | 5. 1989 .........|........... 42 |............ 22 |............ 13 |............ 13 | 6. 1990 .........|........... 78 |............ 64 |............ 44 |............ 33 | 7. 1991 .........|.......... 155 |........... 115 |............ 81 |............ 53 | 8. 1992 .........|.......... 447 |........... 159 |........... 111 |............ 79 | 9. 1993 .........| X X X |........... 446 |........... 195 |........... 147 | 10. 1994 .........| X X X | X X X |........... 414 |........... 239 | 11. 1995 .........| X X X | X X X | X X X |........... 423 | - ---------------------------------------------------------------------------------------
SECTION 3
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 766 |........... 778 |........... 779 | 3. 1987 .........| X X X |............. 0 |............. 0 |......... 1,111 |......... 1,125 |......... 1,130 | 4. 1988 .........| X X X | X X X |............. 0 |......... 1,180 |......... 1,207 |......... 1,220 | 5. 1989 .........| X X X | X X X | X X X |......... 1,054 |......... 1,351 |......... 1,377 | 6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,424 |......... 1,726 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,874 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END| |----------------------------------------------------------------- | Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|.......... 781 |........... 793 |........... 811 |........... 832 | 3. 1987 .........|........ 1,130 |......... 1,132 |......... 1,132 |......... 1,132 | 4. 1988 .........|........ 1,230 |......... 1,232 |......... 1,232 |......... 1,232 | 5. 1989 .........|........ 1,392 |......... 1,396 |......... 1,400 |......... 1,404 | 6. 1990 .........|........ 1,761 |......... 1,786 |......... 1,792 |......... 1,796 | 7. 1991 .........|........ 2,163 |......... 2,204 |......... 2,240 |......... 2,247 | 8. 1992 .........|........ 1,797 |......... 2,191 |......... 2,228 |......... 2,241 | 9. 1993 .........| X X X |......... 1,929 |......... 2,272 |......... 2,330 | 10. 1994 .........| X X X | X X X |......... 2,230 |......... 2,592 | 11. 1995 .........| X X X | X X X | X X X |......... 1,696 | - ---------------------------------------------------------------------------------------
117 46 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE SECTION 1A
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND | | ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 2A
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) |NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 3A
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================== (1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END| |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
118 47 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS-MADE SECTION 1B
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT | | AND ASSUMED AT YEAR END | |-------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - ---------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............. 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............. 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............. 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............. 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ----------------------------------------------------------------------------------------
SECTION 2B
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |-------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - ---------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ----------------------------------------------------------------------------------------
SECTION 3B
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995....... 0 | X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED | | AT YEAR END | |-----------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - -------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|........... 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|........... 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|........... 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|........... 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|........... 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|........... 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|........... 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995....... 0 | X X X | X X X | X X X |............. 0 | - --------------------------------------------------------------------------------------
119 48 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE SECTION 1A
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 7 |............. 2 |............. 3 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 342 |........... 355 |........... 365 | 3. 1987 .........| X X X |............. 0 |............. 0 |........... 374 |........... 389 |........... 403 | 4. 1988 .........| X X X | X X X |............. 0 |........... 365 |........... 398 |........... 413 | 5. 1989 .........| X X X | X X X | X X X |........... 475 |........... 596 |........... 630 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 299 |........... 461 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 349 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND | | ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 2 |............. 1 |............. 0 |............. 0 | 2. 1986 .........|.......... 369 |........... 371 |........... 371 |........... 372 | 3. 1987 .........|.......... 410 |........... 411 |........... 415 |........... 415 | 4. 1988 .........|.......... 429 |........... 436 |........... 445 |........... 447 | 5. 1989 .........|.......... 651 |........... 664 |........... 670 |........... 681 | 6. 1990 .........|.......... 483 |........... 498 |........... 512 |........... 518 | 7. 1991 .........|.......... 471 |........... 504 |........... 521 |........... 536 | 8. 1992 .........|.......... 302 |........... 421 |........... 451 |........... 470 | 9. 1993 .........| X X X |........... 235 |........... 327 |........... 353 | 10. 1994 .........| X X X | X X X |........... 265 |........... 354 | 11. 1995 .........| X X X | X X X | X X X |........... 222 | - ---------------------------------------------------------------------------------------
SECTION 2A
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............ 12 |............ 10 |............. 7 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............ 37 |............ 16 |............. 8 | 3. 1987 .........| X X X |............. 0 |............. 0 |............ 38 |............ 25 |............ 17 | 4. 1988 .........| X X X | X X X |............. 0 |............ 57 |............ 44 |............ 44 | 5. 1989 .........| X X X | X X X | X X X |............ 96 |............ 49 |............ 41 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 130 |............ 46 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 129 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------- Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 6 |............. 4 |............. 5 |............. 4 | 2. 1986 .........|............ 6 |............. 3 |............. 3 |............. 2 | 3. 1987 .........|............ 8 |............. 8 |............. 3 |............. 2 | 4. 1988 .........|........... 27 |............ 24 |............ 15 |............ 13 | 5. 1989 .........|........... 33 |............ 28 |............ 18 |............. 9 | 6. 1990 .........|........... 41 |............ 40 |............ 27 |............ 22 | 7. 1991 .........|........... 57 |............ 55 |............ 49 |............ 30 | 8. 1992 .........|.......... 116 |............ 72 |............ 49 |............ 38 | 9. 1993 .........| X X X |............ 87 |............ 42 |............ 40 | 10. 1994 .........| X X X | X X X |............ 76 |............ 47 | 11. 1995 .........| X X X | X X X | X X X |............ 64 | - ---------------------------------------------------------------------------------------
SECTION 3A
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 479 |........... 484 |........... 485 | 3. 1987 .........| X X X |............. 0 |............. 0 |........... 567 |........... 575 |........... 582 | 4. 1988 .........| X X X | X X X |............. 0 |........... 556 |........... 586 |........... 611 | 5. 1989 .........| X X X | X X X | X X X |........... 703 |........... 856 |........... 896 | 6. 1990 .........| X X X | X X X | X X X | X X X |........... 505 |........... 651 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 574 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND | | ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|.......... 489 |........... 489 |........... 489 |........... 489 | 3. 1987 .........|.......... 583 |........... 584 |........... 584 |........... 584 | 4. 1988 .........|.......... 617 |........... 621 |........... 624 |........... 624 | 5. 1989 .........|.......... 911 |........... 921 |........... 925 |........... 927 | 6. 1990 .........|.......... 686 |........... 706 |........... 716 |........... 721 | 7. 1991 .........|.......... 698 |........... 736 |........... 759 |........... 770 | 8. 1992 .........|.......... 524 |........... 651 |........... 677 |........... 695 | 9. 1993 .........| X X X |........... 424 |........... 532 |........... 569 | 10. 1994 .........| X X X | X X X |........... 465 |........... 592 | 11. 1995 .........| X X X | X X X | X X X |........... 386 | - ---------------------------------------------------------------------------------------
120 49 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS-MADE SECTION 1B
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT | | AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 2B
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |-------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - ---------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ----------------------------------------------------------------------------------------
SECTION 3B
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND | | ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995..........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
121 50 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE SECTION 1A
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 3 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT | | AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 2A
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 1 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 3A
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED | | AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995..........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
122 51 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS-MADE SECTION 1B
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT | | AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 2B
========================================================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 3B
========================================================================================================================== (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED | | AT YEAR END | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........| X X X | X X X | X X X | X X X | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995..........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
123 52 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL SECTION 1
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ($000 OMITTED) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |......... 2,085 |......... 2,085 |......... 2,085 | 3. 1987 .........|............ 0 |......... 5,446 |......... 5,446 |......... 5,446 | 4. 1988 .........|............ 0 |......... 5,491 |......... 6,491 |......... 6,491 | 5. 1989 .........|............ 0 |......... 7,275 |......... 7,275 |......... 7,275 | 6. 1990 .........|............ 0 |......... 9,082 |......... 9,082 |......... 9,082 | 7. 1991 .........|............ 0 |........ 10,710 |........ 10,710 |........ 10,710 | 8. 1992 .........|............ 0 |........ 11,806 |........ 11,806 |........ 11,806 | 9. 1993 .........| X X X |........ 12,330 |........ 12,330 |........ 12,330 | 10. 1994 .........| X X X | X X X |........ 13,087 |........ 13,087 | 11. 1995 .........| X X X | X X X | X X X |........ 13,439 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |......... 1,123 |......... 1,123 |......... 1,123 | 3. 1987 .........|............ 0 |......... 1,322 |......... 1,322 |......... 1,322 | 4. 1988 .........|............ 0 |......... 1,545 |......... 1,545 |......... 1,545 | 5. 1989 .........|............ 0 |........... 857 |........... 857 |........... 857 | 6. 1990 .........|............ 0 |........... 876 |........... 876 |........... 876 | 7. 1991 .........|............ 0 |........... 433 |........... 433 |........... 433 | 8. 1992 .........|............ 0 |........... 640 |........... 640 |........... 640 | 9. 1993 .........| X X X |........... 498 |........... 498 |........... 498 | 10. 1994 .........| X X X | X X X |........... 429 |........... 429 | 11. 1995 .........| X X X | X X X | X X X |........... 418 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 6D - WORKERS' COMPENSATION SECTION 1
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ($000 OMITTED) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |........... 973 |........... 973 |........... 973 | 3. 1987 .........|............ 0 |......... 1,952 |......... 1,952 |......... 1,952 | 4. 1988 .........|............ 0 |......... 3,755 |......... 3,755 |......... 3,755 | 5. 1989 .........|............ 0 |......... 4,196 |......... 4,196 |......... 4,196 | 6. 1990 .........|............ 0 |......... 4,997 |......... 4,997 |......... 4,997 | 7. 1991 .........|............ 0 |......... 5,472 |......... 5,472 |......... 5,472 | 8. 1992 .........|............ 0 |......... 6,238 |......... 6,238 |......... 6,238 | 9. 1993 .........| X X X |......... 8,386 |......... 8,386 |......... 8,386 | 10. 1994 .........| X X X | X X X |........ 10,750 |........ 10,750 | 11. 1995..........| X X X | X X X | X X X |........ 12,597 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............ 79 |............ 79 |............ 79 | 3. 1987 .........|............ 0 |............ 50 |............ 50 |............ 50 | 4. 1988 .........|............ 0 |............ 81 |............ 81 |............ 81 | 5. 1989 .........|............ 0 |............ 85 |............ 85 |............ 85 | 6. 1990 .........|............ 0 |............ 98 |............ 98 |............ 98 | 7. 1991 .........|............ 0 |........... 179 |........... 179 |........... 179 | 8. 1992 .........|............ 0 |........... 304 |........... 304 |........... 304 | 9. 1993 .........| X X X |........... 452 |........... 452 |........... 452 | 10. 1994 .........| X X X | X X X |........... 789 |........... 789 | 11. 1995..........| X X X | X X X | X X X |........... 859 | - ---------------------------------------------------------------------------------------
124 53 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 6E - COMMERCIAL MULTIPLE PERIL SECTION 1
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |......... 5,758 |......... 5,758 |......... 5,758 | 3. 1987 .........|............ 0 |........ 10,867 |........ 10,867 |........ 10,867 | 4. 1988 .........|............ 0 |........ 12,286 |........ 12,286 |........ 12,286 | 5. 1989 .........|............ 0 |........ 13,211 |........ 13,211 |........ 13,211 | 6. 1990 .........|............ 0 |........ 15,525 |........ 15,525 |........ 15,525 | 7. 1991 .........|............ 0 |........ 17,516 |........ 17,516 |........ 17,516 | 8. 1992 .........|............ 0 |........ 17,563 |........ 17,563 |........ 17,563 | 9. 1993 .........| X X X |........ 18,952 |........ 18,952 |........ 18,952 | 10. 1994 .........| X X X | X X X |........ 20,791 |........ 20,791 | 11. 1995 .........| X X X | X X X | X X X |........ 22,405 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END | | ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |......... 3,113 |......... 3,113 |......... 3,113 | 3. 1987 .........|............ 0 |......... 3,568 |......... 3,568 |......... 3,568 | 4. 1988 .........|............ 0 |......... 3,903 |......... 3,903 |......... 3,903 | 5. 1989 .........|............ 0 |......... 2,277 |......... 2,277 |......... 2,277 | 6. 1990 .........|............ 0 |......... 2,430 |......... 2,430 |......... 2,430 | 7. 1991 .........|............ 0 |......... 1,288 |......... 1,288 |......... 1,288 | 8. 1992 .........|............ 0 |......... 1,201 |......... 1,201 |......... 1,201 | 9. 1993 .........| X X X |......... 1,767 |......... 1,767 |......... 1,767 | 10. 1994 .........| X X X | X X X |......... 2,220 |......... 2,220 | 11. 1995 .........| X X X | X X X | X X X |......... 2,365 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE SECTION 1A
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |......... 4,509 |......... 4,509 |......... 4,509 | 3. 1987 .........|............ 0 |......... 7,091 |......... 7,091 |......... 7,091 | 4. 1988 .........|............ 0 |......... 8,132 |......... 8,132 |......... 8,132 | 5. 1989 .........|............ 0 |......... 9,072 |......... 9,072 |......... 9,072 | 6. 1990 .........|............ 0 |........ 10,341 |........ 10,341 |........ 10,341 | 7. 1991 .........|............ 0 |........ 10,546 |........ 10,546 |........ 10,546 | 8. 1992 .........|............ 0 |......... 9,740 |......... 9,740 |......... 9,740 | 9. 1993 .........| X X X |......... 9,051 |......... 9,051 |......... 9,051 | 10. 1994 .........| X X X | X X X |......... 9,148 |......... 9,148 | 11. 1995..........| X X X | X X X | X X X |......... 8,729 | - ---------------------------------------------------------------------------------------
SECTION 2A
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |......... 2,797 |......... 2,797 |......... 2,797 | 3. 1987 .........|............ 0 |......... 2,294 |......... 2,294 |......... 2,294 | 4. 1988 .........|............ 0 |......... 2,946 |......... 2,946 |......... 2,946 | 5. 1989 .........|............ 0 |......... 2,348 |......... 2,348 |......... 2,348 | 6. 1990 .........|............ 0 |......... 2,556 |......... 2,556 |......... 2,556 | 7. 1991 .........|............ 0 |......... 1,998 |......... 1,998 |......... 1,998 | 8. 1992 .........|............ 0 |......... 1,583 |......... 1,583 |......... 1,583 | 9. 1993 .........| X X X |......... 1,635 |......... 1,635 |......... 1,635 | 10. 1994 .........| X X X | X X X |......... 1,882 |......... 1,882 | 11. 1995..........| X X X | X X X | X X X |......... 1,981 | - ---------------------------------------------------------------------------------------
125 54 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS-MADE SECTION 1B
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 2B
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 6M - INTERNATIONAL SECTION 1
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995..........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995..........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
126 55 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 6N - REINSURANCE A SECTION 1
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 7. 1994 .........| X X X | X X X |............. 0 |............. 0 | 8. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 7. 1994 .........| X X X | X X X |............. 0 |............. 0 | 8. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 6O - REINSURANCE B SECTION 1
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 7. 1994 .........| X X X | X X X |............. 0 |............. 0 | 8. 1995..........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 2
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 4. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 6. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 7. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 8. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 7. 1994 .........| X X X | X X X |............. 0 |............. 0 | 8. 1995..........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
127 56 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE SECTION 1A
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............ 47 |............ 47 |............ 47 | 3. 1987 .........|............ 0 |............ 69 |............ 69 |............ 69 | 4. 1988 .........|............ 0 |............ 52 |............ 52 |............ 52 | 5. 1989 .........|............ 0 |............ 13 |............ 13 |............ 13 | 6. 1990 .........|............ 0 |............. 8 |............. 8 |............. 8 | 7. 1991 .........|............ 0 |............ 15 |............ 15 |............ 15 | 8. 1992 .........|............ 0 |............. 8 |............. 8 |............. 8 | 9. 1993 .........| X X X |............. 9 |............. 9 |............. 9 | 10. 1994 .........| X X X | X X X |............ 11 |............ 11 | 11. 1995 .........| X X X | X X X | X X X |............ 22 | - ---------------------------------------------------------------------------------------
SECTION 2A
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............ 29 |............ 29 |............ 29 | 3. 1987 .........|............ 0 |............ 22 |............ 22 |............ 22 | 4. 1988 .........|............ 0 |............ 19 |............ 19 |............ 19 | 5. 1989 .........|............ 0 |............. 3 |............. 3 |............. 3 | 6. 1990 .........|............ 0 |............. 2 |............. 2 |............. 2 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995 .........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS-MADE SECTION 1B
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
======================================================================================= (1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END | | ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995..........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
SECTION 2B
========================================================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------------------------------------------ Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | Premiums Were | | | | | | | Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | Losses Were | | | | | | | Incurred | | | | | | | - -------------------------------------------------------------------------------------------------------------------------- | | | | | | | 1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 | 6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 | 7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 | 8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X | 9. 1993 .........| X X X | X X X | X X X | X X X | X X X | X X X | 10. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X | 11. 1995..........| X X X | X X X | X X X | X X X | X X X | X X X | - --------------------------------------------------------------------------------------------------------------------------
====================================================================================== (1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) | |------------------------------------------------------------------| Years in Which | (8) | (9) | (10) | (11) | Premiums Were | | | | | Earned and | 1992 | 1993 | 1994 | 1995 | Losses Were | | | | | Incurred | | | | | - --------------------------------------------------------------------------------------| | | | | | 1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 | 2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 | 3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 | 4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 | 5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 | 6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 | 7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 | 8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 | 9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 | 10. 1994 .........| X X X | X X X |............. 0 |............. 0 | 11. 1995..........| X X X | X X X | X X X |............. 0 | - ---------------------------------------------------------------------------------------
128 57 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. PAGE 129 Schedule P - Part 7A - Section 1 NONE Schedule P - Part 7A - Section 2 NONE Schedule P - Part 7A - Section 3 NONE PAGE 130 Schedule P - Part 7A - Section 4 NONE Schedule P - Part 7A - Section 5 NONE PAGE 131 Schedule P - Part 7B - Section 1 NONE Schedule P - Part 7B - Section 2 NONE Schedule P - Part 7B - Section 3 NONE PAGE 132 Schedule P - Part 7B - Section 4 NONE Schedule P - Part 7B - Section 5 NONE Schedule P - Part 7B - Section 6 NONE Schedule P - Part 7B - Section 7 NONE 58 Form 2 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC. SCHEDULE P INTERROGATORIES 1. Computation of excess statutory reserves over statement reserves. a. Auto Liability (private passenger and commercial) 1995 $ 0 ( 0.0 %) 1994 $ 0 ( 0.0 %) 1993 $ 0 ( 0.0 %) Total $ 0 b. Other Liability and Products Liability 1995 $ 0 ( 0.0% ) 1994 $ 0 ( 0.0 %) 1993 $ 0 ( 0.0 %) Total $ 0 c. Medical Malpractice 1995 $ 0 ( 0.0 %) 1994 $ 0 ( 0.0 %) 1993 $ 0 ( 0.0 %) Total $ 0 d. Workers' Compensation 1995 $ 0 ( 0.0 %) 1994 $ 0 ( 0.0 %) 1993 $ 0 ( 0.0 %) Total $ 0 e. Credit Total $ 0 f. All Lines Total (Report here and Page 3) Total $ 0
2. What is the extended loss and expense reserve - direct and assumed - for the following classes? An example of an extended loss and expense reserve is the actuarial reserve for the free-tail coverage arising upon death, disability or retirement in most medical malpractice policies. Such a liability is to be reported here even if it was not reported elsewhere in Schedule P, but otherwise reported as a liability item on Page 3. Show the full reserve amount, not just the change during the current year.
----------------------------------------------------------------------------------------------------------------- | Years in which premiums were | (1) | (2) | | earned and losses were incurred | Medical Malpractice | Other Liability | |---------------------------------------------------------------------------------------------------------------- | | | | | a. 1987 ..........................|............................... 0 |............................... 0 | | b. 1988 ..........................|............................... 0 |............................... 0 | | c. 1989 ..........................|............................... 0 |............................... 0 | | d. 1990 ..........................|............................... 0 |............................... 0 | | e. 1991 ..........................|............................... 0 |............................... 0 | | f. 1992 ..........................|............................... 0 |............................... 0 | | g. 1993 ..........................|............................... 0 |............................... 0 | | h. 1994 ..........................|............................... 0 |............................... 0 | | i. 1995 ..........................|............................... 0 |............................... 0 | | | | | | j. TOTALS |............................... 0 |............................... 0 | -----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------- | Years in which premiums were | (3) | | earned and losses were incurred | Products Liability | |-----------------------------------------------------------------------------| | | | | a. 1987 ..........................|................................. 0 | | b. 1988 ..........................|................................. 0 | | c. 1989 ..........................|................................. 0 | | d. 1990 ..........................|................................. 0 | | e. 1991 ..........................|................................. 0 | | f. 1992 ..........................|................................. 0 | | g. 1993 ..........................|................................. 0 | | h. 1994 ..........................|................................. 0 | | i. 1995 ..........................|................................. 0 | | | | | j. TOTALS |................................. 0 | -------------------------------------------------------------------------------
3. The term "Loss expense" includes all payments for legal expenses, including attorney's and witness fees and court costs, salaries and expenses of investigators, adjustors and field men, rents, stationery, telegraph and telephone charges, postage, salaries and expenses of office employees, home office expenses and all other payments under or on account of such injuries, whether the payments are allocated to specific claims or are unallocated. Are they so reported in this statement? Answer: Yes (X) No ( ) 4. The unallocated loss expense payments paid during the most recent calendar year should be distributed to the various years in which losses were incurred as follows: (1) 45% to the most recent year, (2) 5% to the next most recent year, and (3) the balance to all years, including the most recent, in proportion to the amount of loss payments paid for each year during the most recent calendar year. If the distribution in (1) or (2) produces an accumulated distribution to such year in excess of 10% of the premiums earned for such year, disregarding all distributions made under (3), such accumulated distribution should be limited to 10% of premiums earned and the balance distributed in accordance with (3). Are they so reported in this statement ? Answer: Yes (X) No ( ) 5. Do any lines in Schedule P include reserves which are reported gross of any discount to present value of future payments, but are reported net of such discounts on Page 11? Yes (X) No ( ) If yes, proper reporting must be made in the Notes to Financial Statements, as specified in the Instructions. Also, the discounts must be reported in Schedule P - Part 1, Columns 31 and 32. Schedule P must be completed gross of non-tabular discounting. Work papers relating to discount calculations must be available for examination upon request. Discounting is allowed only if expressly permitted by the state insurance department to which this Annual Statement is being filed. 6. What were the net premiums in force at the end of the year for: (in thousands of dollars) a. Fidelity $ 0 b. Surety $ 0 7. Claim count information is reported (check one): a. per claim ( ) b. per claimant ( ) If not the same in all years, explain in Question 8.
8. The information provided in Schedule P will be used by many persons to estimate the adequacy of the current loss and expense reserves, among other things. Are there any especially significant events, coverage, retention or accounting changes which have occurred which must be considered when making such analyses? (An extended statement may be attached.) 133 -----END PRIVACY-ENHANCED MESSAGE-----