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, 2015, 2014 and 2013 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, 2015	Statutory Capital and Surplus		Required Statutory Capital and Surplus		Statutory Net Income (Loss)
Integon Indemnity Corporation	$	37,316	$	2,759	$	(2,195	)
National General Insurance Company	26,294		450		378
Integon Preferred Insurance Company	6,769		126		324
Integon National Insurance Company	448,339		123,839		(9,995		)
MIC General Insurance Corporation	19,042		451		(52		)
National General Assurance Company	16,819		255		130
Integon Casualty Insurance Company	6,269		54		120
New South Insurance Company	7,632		71		203
Integon General Insurance Corporation	6,305		160		493
National General Insurance Company Online, Inc.	11,340		67		218
National Health Insurance Company	13,796		746		893
Personal Express Insurance Company	16,155		167		667
Imperial Fire and Casualty Insurance Company	40,572		366		3,021
National Automotive Insurance Company	7,103		100		544
Agent Alliance Insurance Company	48,811		681		387
National General Re Ltd.	601,276		298,795		163,872
National General Insurance Luxembourg, S.A.	32,922		26,491		925
National General Life Insurance Europe, S.A.	28,770		21,571		7,346



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

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 required statutory capital and surplus (known as the "Target Capital Level") amount is equal to 1.2 times the enhanced Capital Requirement based on a level of risk based capital compared to 2014. The Company maintained the minimum capital required by the Bermuda Monetary Authority.

Reciprocal Exchanges

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

For the years ended December 31, 2015 and 2014, the Reciprocal Exchanges had combined SAP net income (loss) of $23,346 and $(3,646), respectively. At December 31, 2015 and 2014, the Reciprocal Exchanges had combined statutory capital and surplus of $119,330 and $74,952, respectively.

The Reciprocal Exchanges are required to maintain minimum capital and surplus in accordance with regulatory requirements. As of December 31, 2015 and 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.