Statutory Financial Data

Applicable insurance department regulations require the Company’s insurance subsidiaries to prepare statutory financial statements in accordance with Statutory Accounting Practices ("SAP") prescribed or permitted by the Department of Insurance of the state of domicile. Statutory net income (loss) for the years ended December 31, 2014, 2013 and 2012 and statutory capital and surplus as per the annual financial statements of the Company’s insurance subsidiaries as of December 31 were as follows:



Year Ended December 31, 2014	Statutory Capital and Surplus		Required Statutory Capital and Surplus		Statutory Net Income (Loss)
Integon Indemnity Corporation	$	32,879	$	2,228	$	18
National General Insurance Company	27,923		261		527
Integon Preferred Insurance Company	9,324		173		(66		)
Integon National Insurance Company	332,405		98,974		11,397
MIC General Insurance Corporation	19,800		222		50
National General Assurance Company	17,490		891		195
Integon Casualty Insurance Company	11,453		178		135
New South Insurance Company	6,890		101		321
Integon General Insurance Corporation	11,310		261		353
National General Insurance Company Online, Inc.	10,878		106		(53		)
National Health Insurance Company	11,536		161		1,169
Personal Express Insurance Company	15,520		65		789
Imperial Fire and Casualty Insurance Company	41,018		6,599		178
National Automotive Insurance Company	7,013		487		1,502
Agent Alliance Insurance Company	16,464		321		(147		)
National General Re Ltd.	442,400		112,810		54,688
National General Insurance Luxembourg, S.A.	14,638		2,500		402
National General Life Insurance Europe, S.A.	15,000		3,700		(354		)



Year Ended December 31, 2013	Statutory Capital and Surplus		Required Statutory Capital and Surplus		Statutory Net Income (Loss)
Integon Indemnity Corporation	$	32,767	$	2,787	$	2,967
National General Insurance Company	25,800		370		4,498
Integon Preferred Insurance Company	8,394		127		1,482
Integon National Insurance Company	159,752		61,897		(33,202		)
MIC General Insurance Corporation	20,234		369		1,086
National General Assurance Company	15,764		183		2,017
Integon Casualty Insurance Company	10,256		192		1,550
New South Insurance Company	15,621		288		4,091
Integon General Insurance Corporation	10,555		246		4,895
National General Insurance Company Online, Inc.	9,939		49		1,294
National Health Insurance Company	10,340		698		(1,246		)
National General Re Ltd.	133,088		40,389		4,232



Year Ended December 31, 2012	Statutory Capital and Surplus		Required Statutory Capital and Surplus		Statutory Net Income (Loss)
Integon Indemnity Corporation	$	34,686	$	3,275	$	26,313
National General Insurance Company	34,770		407		12,574
Integon Preferred Insurance Company	6,962		104		3,573
Integon National Insurance Company	139,706		51,216		(34,275		)
MIC General Insurance Corporation	20,807		881		6,250
National General Assurance Company	19,672		123		4,864
Integon Casualty Insurance Company	9,143		110		4,790
New South Insurance Company	13,196		146		11,317
Integon General Insurance Corporation	22,747		386		15,816
National General Insurance Company Online, Inc.	10,027		48		3,049
National Health Insurance Company	9,103		56		(751		)
National General Re Ltd.	30,758		6,312		(2,923		)

For the Company's U.S. insurance subsidiaries, the required statutory capital and surplus amount is equal to 1.5 times of authorized control level of risk based capital as defined by NAIC or the minimum amount required to avoid regulatory oversight. For National General Re Ltd., the amount is equal to the minimum capital required by Bermuda Monetary Authority.

Reciprocal Exchanges

The Reciprocal Exchanges prepare their statutory basis financial statements in accordance with SAP.

For the year ended December 31, 2014, the Reciprocal Exchanges had combined SAP net loss of $3,646. At December 31, 2014, the Reciprocal Exchanges had combined statutory capital and surplus of $74,952.

The Reciprocal Exchanges are required to maintain minimum capital and surplus in accordance with regulatory requirements. As of December 31, 2014, the capital and surplus levels of the Reciprocal Exchanges exceeded such required levels.

The Reciprocal Exchanges are not owned by the Company, but managed through management agreements. Accordingly, the Reciprocal Exchanges’ net assets are not available to the Company. In addition, no dividends can be paid from the Reciprocal Exchanges to the Company.