-----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, Fpq79SuRroYfrWwanYivJY+RY9zOuD/lbVVBWVpLWKcO8kuoabDDiIW4t/K9XvSI hze5lvX9TZi7uGJp1IgotQ== 0000898430-96-001007.txt : 19960329 0000898430-96-001007.hdr.sgml : 19960329 ACCESSION NUMBER: 0000898430-96-001007 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960328 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: US FACILITIES CORP CENTRAL INDEX KEY: 0000798085 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 330097221 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15196 FILM NUMBER: 96539497 BUSINESS ADDRESS: STREET 1: 650 TOWN CENTER DR STE 1600 CITY: COSTA MESA STATE: CA ZIP: 92626 BUSINESS PHONE: 7145491600 MAIL ADDRESS: STREET 1: 650 TOWN CENTER DRIVE STREET 2: STE 1600 CITY: COSTA MESA STATE: CA ZIP: 92626-1925 10-K 1 FORM 10-K - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (MARK ONE) [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: 0-15196 US FACILITIES CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 33-0097221 (STATE OR OTHER (IRS EMPLOYER JURISDICTION OF IDENTIFICATION NO.) INCORPORATION OR ORGANIZATION) 650 TOWN CENTER DRIVE, SUITE 1600, COSTA MESA, CA 92626 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (714) 549-1600 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NONE SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: COMMON STOCK, PAR VALUE $.01 PER SHARE COMMON STOCK PURCHASE RIGHTS 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. YES X 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 the 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. [ ] Aggregate Market Value of Voting Stock held by non-affiliates of the Registrant as of March 21, 1996: $95,358,126 (5,261,138 shares at the closing price of $18.125 per share). For this purpose, all shares held by officers and directors of the Registrant are considered to be held by affiliates, but neither the Registrant nor such persons concede that they are affiliates of the Registrant. Number of Shares of Common Stock of the Registrant outstanding as of March 21, 1996: 5,833,848 DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant's 1995 Annual Report to Stockholders are incorporated by reference into Part II of this Form 10-K. Portions of the Registrant's definitive Proxy Statement to be filed within 120 days after December 31, 1995, are incorporated by reference into Part III of this Form 10-K. - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- PART I ITEM 1. BUSINESS GENERAL INFORMATION The Registrant, US Facilities Corporation (the "Company"), is a Delaware holding company formed in 1982 which, through its subsidiaries, operates as a specialty insurance group. The Company's two principal operating units are USBenefits Insurance Services, Inc. ("USBenefits") and USF RE INSURANCE COMPANY ("USF RE"). USBenefits underwrites, manages and markets medical stop- loss coverage nationwide for The Continental Insurance Company ("Continental"), one of the CNA Insurance Companies ("CNA"), an unaffiliated insurance company, in exchange for management fees. Medical stop-loss insurance protects self-insured employers against the risk of exposure to excessive losses by limiting their liability to a predetermined amount. Self- insured plans permit employers to design employee benefit coverages structured to meet their specific needs, allow employers to exercise more control over their health insurance costs, and provide health coverages that might not otherwise be available. USBenefits also markets other employee benefit related products on behalf of several national life insurance companies. USF RE is a property/casualty reinsurance company whose primary business is the reinsurance of 50% of the medical stop-loss coverage underwritten by USBenefits for Continental and the reinsurance of property/casualty accounts produced by independent sources. Its subsidiary, USF Insurance Company ("USFIC"), writes excess and surplus lines insurance on a direct basis. FINANCIAL INFORMATION RELATING TO BUSINESS SEGMENTS The Company's operations are classified into two business segments: (1) medical stop-loss and employee benefit products (which include the revenues from commissions and fees of the Company, and from reinsurance of 50% of its medical stop-loss business); and (2) property/casualty reinsurance and insurance underwriting. The medical stop-loss and employee benefits segment produced 73%, 80% and 81%, and the property/casualty segment produced 26%, 20% and 18% of the Company's consolidated revenues for 1995, 1994 and 1993, respectively. See "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" and also "Note 9 of Notes to CONSOLIDATED FINANCIAL STATEMENTS," incorporated herein by reference from the Company's 1995 Annual Report to Stockholders under Items 7 and 8 hereof, respectively. MEDICAL STOP-LOSS AND EMPLOYEE BENEFIT PRODUCTS GENERAL Since 1980, USBenefits has had a mutually exclusive agreement to underwrite and manage medical stop-loss coverage for Continental. Such agreement provides that USBenefits is responsible for designing medical stop-loss products, marketing the products, underwriting risks, collecting premiums, administering coverage agreements, investigating and settling claims and making claim payments within specified limits. While USBenefits participates in the setting of rates and underwriting standards, which are the ultimate responsibility of Continental, it does not insure any risks in its role as underwriting manager; all insurance risks are borne by Continental and its reinsurers, including USF RE. See "BUSINESS--MEDICAL STOP-LOSS AND EMPLOYEE BENEFIT PRODUCTS--MEDICAL STOP-LOSS REINSURANCE" herein. Under its current management agreement with Continental, USBenefits is paid management fees for its services which are a percentage of premiums collected. The management agreement may be terminated by either party at any December 31 upon 90 days prior notice, and can also be terminated upon the occurrence of certain events. The management agreement provides that during its term and for a period ranging from 12 to 18 months following termination, Continental will not solicit or take away USBenefits' accounts or production sources, and 1 that upon termination USBenefits has the right to the expirations and renewals of the medical stop-loss business. The Company believes that these provisions permit USBenefits to move the medical stop-loss business to another insurance company if its relationship with Continental were to terminate. Alternatively, USBenefits could write medical stop-loss coverage on a direct basis through its affiliate, USF RE, which is currently licensed to issue such coverage in 44 states and the District of Columbia. USBenefits also markets various employee benefit insurance products on behalf of several large national life insurance companies. Other than Continental, no one insurance company, third party administrator ("TPA") or insurance producer accounts for 10% or more of USBenefits' revenues. In mid-1992 the Company began development of a medical bill review business. During 1995 the Company determined that the medical bill review business was no longer viable and terminated its operations in May. Consolidated pre-tax results for 1995, 1994 and 1993 include losses from this bill review operation of $1,156,000, $1,136,000 and $1,492,000, respectively. MARKETING USBenefits markets and distributes its medical stop-loss products through a network of TPAs, insurance agents, brokers and consultants (collectively "Producers"). Producers have non-exclusive arrangements with USBenefits that enable them to submit requests for stop-loss coverage quotations on behalf of their self-insured clients. Continental may pay a fee or commission to Producers for placing the coverage, the amount of which is based on a percentage of the premium written and is negotiated on a case-by-case basis. Additionally, USBenefits may pay an annual production bonus to Producers based on the amount of new business and rate of retention of accounts during the calendar year. USBenefits markets its products to a variety of employers, which includes both large and small employee groups. PRODUCTS Medical Stop-Loss. USBenefits offers two types of medical stop-loss products: specific excess and aggregate excess. Employers can elect to purchase specific excess coverage only, or a combination of specific and aggregate coverage. USBenefits does not offer aggregate coverage separately. Generally, self-insured employers purchase a combination of specific and aggregate medical stop-loss coverage in order to minimize their exposure. Medical stop-loss coverage is written on a basic form which can be customized to meet the employer's individual needs and ability to retain risk. Medical stop-loss coverage indemnifies only the employer for its obligations under its self-insured plan of medical benefits; no plan participant or beneficiary is covered by the Continental medical stop-loss policy. Provider Capitation. In 1994 USBenefits commenced the marketing, underwriting and managing of a provider capitation product on behalf of Continental. This product limits the exposure which providers of medical services incur when they enter into capitated fee arrangements; it protects these providers from excessive losses that can arise when expenses exceed a predetermined level. Continental pays USBenefits management fees for its services, which are a percentage of premiums collected. UNDERWRITING MANAGEMENT Under its agreement with Continental, USBenefits, with the assistance of USF RE, provides the services necessary to underwrite and service the medical stop-loss business, including, but not limited to: (i) selecting TPAs and Producers; (ii) accepting medical stop-loss risks and issuing coverage agreements on behalf of Continental within mutually agreed upon underwriting and pricing guidelines; and (iii) processing employers' claims for reimbursement under medical stop-loss agreements on behalf of Continental. 2 MEDICAL STOP-LOSS REINSURANCE USF RE reinsures a portion of the medical stop-loss business and the provider capitation business underwritten by USBenefits. Under the reinsurance agreement with Continental, USF RE is responsible for 50% of Continental's liability under such contracts issued through USBenefits. Continental's liability under medical stop-loss contracts varies per account, but in no event can exceed $2,000,000 lifetime per individual self-insured plan participant or $2,000,000 in the aggregate per agreement year for each self- insured employer account. Continental's liability under provider capitation contracts generally is limited to a maximum of $1,000,000 per individual participant and up to a maximum of $5,000,000 for all participants. In addition, USF RE is responsible for a proportionate share of loss adjustment expenses and any liability incurred by Continental for extra-contractual or punitive damages. The amount of premium ceded by Continental to USF RE under the reinsurance agreement is equal to a proportionate share of the original gross premiums written by Continental, less a ceding commission paid by USF RE to Continental which covers Continental's costs of acquiring and servicing such business. PROPERTY/CASUALTY UNDERWRITING GENERAL USF RE underwrites property/casualty reinsurance which it secures from numerous reinsurance intermediaries and directly from unaffiliated insurance companies. USF RE is licensed to write various lines of insurance in 46 states and the District of Columbia. USF RE and USFIC share a pooled A- (Excellent) rating from A.M. Best Company ("A.M. Best"), which reflects A.M. Best's evaluation that these companies have exhibited "excellent overall performance" and have "a strong ability to meet obligations to their policyholders over a long period of time." During the third quarter of 1995, USF RE ceased writing plate glass insurance, which accounted for 3%, 5% and 5%, of USF RE's premium earned in 1995, 1994 and 1993, respectively. PROPERTY/CASUALTY REINSURANCE Gross reinsurance premiums written by the Company's property/casualty segment were $50,915,000 in 1995, an increase of 42% as compared to 1994 premiums written of $35,760,000, which was an increase of 38% over $25,952,000 in premiums written during 1993. The ceding companies of one client organization accounted for a total for 27%, 17% and 13% of gross premiums written in the property/casualty segment in 1995, 1994 and 1993, respectively. General. USF RE offers a variety of reinsurance coverages in selected property/casualty lines. In general, reinsurance coverage is provided on the basis of the underwriter's evaluation of the acceptability of the risk to be assumed, the adequacy of the premium, the potential exposure of the line of business to be underwritten, the quality of the primary insurers' operations and the ceding commission. USF RE's property/casualty premiums are generated from writing facultative and treaty reinsurance. Facultative is the reinsurance of one account at a time, while reinsurance treaties cover a portion of all policies written by another insurer in a particular risk category. Product Lines. USF RE concentrates its casualty writings on three principal lines: general liability, commercial automobile liability and products liability. USF RE provides casualty reinsurance for primary as well as excess policies, with the majority of its writings in low excess layers. USF RE provides a broad range of reinsurance coverages for most types of property exposures, subject to adequate underwriting information and proper rates and forms. All Risk and Difference in Conditions coverages represent the majority of property premiums written; other coverages include fire and extended coverage, as well as allied lines and inland marine. Retrocessions. USF RE has entered into retrocession (reinsurance) agreements which mitigate USF RE's exposure to losses and therefore allow it to increase the limits it can offer on each property/casualty account. Under its current catastrophe retrocession arrangements, USF RE purchases approximately 95% of $24,500,000 3 of catastrophic protection in excess of a retention of $3,500,000 covering property facultative and surplus lines losses. Within this cover, USF RE has $6,500,000 of catastrophic protection in excess of the same retention of $3,500,000 covering property treaty losses. Management believes this coverage is adequate to protect the Company from excessive catastrophic losses. USF RE evaluates the financial condition of potential retrocessionaires to determine whether to cede retrocessional coverage to such companies. USF RE's retrocession agreements are placed with unaffiliated companies which management believes to be financially secure and experienced in this type of business. Reinsurance recoverables are monitored continually, and any retrocessionaire not qualified in USF RE's state of domicile, Massachusetts, is requested to post security in the amount of its estimated liability to USF RE. Surplus Lines. USFIC, a Pennsylvania domiciled insurance company, is eligible to offer surplus lines coverages in 29 states and the District of Columbia and is also licensed as an admitted insurer in New York and Florida. Since acquiring USFIC, USF RE has increased USFIC's policyholders' surplus to over $15,000,000 at December 31, 1995. USFIC's business consists primarily of writing commercial property/casualty coverages on a surplus lines basis. USFIC's operations contributed 13%, 8% and 4% of the property/casualty underwriting segment's premiums earned in 1995, 1994 and 1993, respectively. STATUTORY FINANCIAL INFORMATION COMBINED RATIO The combined ratio is the traditional indicator of the potential underwriting profitability of an insurance company's business. It reflects the percentage of losses and loss adjustment expenses incurred to earned premiums (the "loss ratio") plus the percentage of production and servicing expenses to net written premiums (the "underwriting expense ratio"). The table below sets forth USF RE's consolidated loss ratio, underwriting expense ratio and combined ratio determined in accordance with statutory accounting practices ("SAP") for the years indicated. Management believes that USF RE's combined ratio is generally better than the combined ratio for the reinsurance industry as a whole and is well within the requirements of regulatory agencies.
YEAR ENDED DECEMBER 31, ------------------------- 1995 1994 1993 ------- -------- -------- Loss ratio............................................ 67.6 69.1 69.5 Underwriting expense ratio............................ 32.1 34.7 36.0 ------- -------- -------- Combined ratio........................................ 99.7 103.8 105.5 ======= ======== ========
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES Insurance and reinsurance companies are required to maintain reserves for losses and loss adjustment expenses ("LAE") which are intended to cover the ultimate cost of settling all losses incurred and unpaid, including an estimate of those not yet reported to the insurer, in order to properly match the expected losses incurred to the related earned premium. Reserves for medical stop-loss reinsurance are established on the basis of the most widely used techniques for determining loss reserves for this line of business, such as trended cost per covered person and loss payment pattern analysis. Property/casualty loss reserves are determined by customary industry methods of evaluating reported claims on the basis of the type of loss involved, knowledge of the circumstances surrounding the claim, policy provisions relating to the type of loss, and by estimating the cost of unreported claims on the basis of statistical information for occurrences which have not yet been reported to the carrier. Reserves are adjusted from time to time based on monitoring by the insurer. USF RE conducts, on a quarterly basis, an in-depth analysis of its incurred but not reported losses and bulk reserves relative to recent experience and trends, and adjusts such reserves upward or downward as necessary to maintain the reserves at a 4 level which USF RE deems to be sufficient to provide for all claims incurred through the reporting date. Such reserves are regularly reviewed by USF RE's independent actuary and auditors. Loss reserve estimates are not precise because they are based on predictions of future events, as well as other variable factors, including changes in the legal system which can affect the results of litigated claims. Reserves for losses and LAE are estimates only. It is possible that an insurer's ultimate liability may be greater or less than such estimates. At USF RE, no explicit provisions are made for inflation, but inflationary trends are considered when setting reserves. USF RE does not discount its reserves to their present value. USF RE has no known pre-1986 environmental or asbestos exposures. The loss settlement period for certain types of insurance claims, such as casualty reinsurance, may be many years, and during such time it often becomes necessary to adjust the estimate of liability on a claim either upward or downward. In the last few years various factors (including escalation of repair costs, the size and unpredictability of jury awards and inflation) have necessitated periodic upward adjustments in reserves by most property/casualty insurers, including USF RE. In addition, USF RE's relatively recent entry into the assumed casualty reinsurance business in 1987 contributes to the level of uncertainty associated with USF RE's estimates for loss and LAE reserves. Due to USF RE's size, should any future adjustments of its reserves become necessary, such adjustments could have a proportionately greater impact upon its reported earnings and surplus than they would have upon the earnings and surplus of a much larger insurance company. LAE reserves are intended to cover the ultimate cost of investigating and settling all losses. LAE reserves are estimated throughout each year based on historical data and factors similar to those used in estimating loss reserves, and are adjusted from time to time as management deems appropriate. In 1987, USF RE established a liability for uncollectible reinsurance related to adverse development in its discontinued general liability and special multiple peril ("GL/SMP") liability lines of business to recognize that certain amounts would not be recoverable from a former reinsurer. Under generally accepted accounting principles ("GAAP"), that provision was recorded as additional loss and LAE reserves, and has been adjusted periodically as claims develop. USF RE has not experienced any other material unrecoverable reinsurance. In 1992 the Company adopted the Statement of Financial Accounting Standards ("SFAS") No. 113, "Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts," which changes certain GAAP accounting presentation by insurance enterprises for reinsurance transactions. Under SFAS No. 113, insurance receivables, such as ceded loss and LAE reserves, are required to be reported as assets rather than reductions of gross liabilities. The following table reconciles USF RE's consolidated reserve for losses and LAE from SAP to amounts based on GAAP:
DECEMBER 31, ----------------------- 1995 1994 1993 ------- ------- ------- (DOLLARS IN THOUSANDS) Statutory loss and LAE reserves........................ $62,420 $56,304 $51,358 Reserves ceded to reinsurers........................... 16,426 13,292 7,184 Provision for uncollectible reinsurance................ 48 51 228 ------- ------- ------- GAAP loss and LAE reserves............................. $78,894 $69,647 $58,770 ======= ======= =======
Except for the foregoing, there is no difference in USF RE's reserves for losses and LAE whether determined in accordance with GAAP or SAP. 5 The table set forth below provides a reconciliation of beginning and ending consolidated statutory liability balances as of December 31, 1995, 1994 and 1993. Management will continue to evaluate and monitor reserves on all of its businesses, and management believes that USF RE's consolidated reserves at December 31, 1995 are adequate to cover the ultimate cost of settlement of all losses incurred through that date.
DECEMBER 31, ------------------------- 1995 1994 1993 ------- ------- ------- (DOLLARS IN THOUSANDS) Reserves for losses and LAE at beginning of period................... $56,304 $51,358 $45,483 Incurred losses and LAE: Provision for losses and LAE for claims occurring in the current year..... 74,935 61,941 56,081 Increase in estimated losses and LAE for claims occurring in prior years.......... 2,808 2,425 1,636 Payments: Losses and LAE payments for claims occurring during: The current year........ (39,511) (33,345) (29,652) Prior years............. (32,116) (26,075) (22,190) ------- ------- ------- Reserve for losses and LAE at end of period......... $62,420 $56,304 $51,358 ======= ======= =======
The table on the following page presents the development of USF RE's consolidated statutory balance sheet liability for losses and LAE for 1983 through 1995. The top line of the table shows the estimated liability for unpaid losses and LAE recorded at December 31 for each of the indicated years. This liability represents the estimated amount of losses and LAE for claims arising in all years that are unpaid at the balance sheet date, including losses that had been incurred but not yet reported. The upper portion of the table shows the re-estimated amount of the previously recorded liability based on experience as of the end of each succeeding year. The estimate is increased or decreased as more information becomes known about the frequency and severity of claims for individual years. The material increase in loss reserves beginning in 1986 is primarily attributable to USF RE's commencement of and, thereafter, significant growth in its reinsurance business. The cumulative redundancy or deficiency represents the total change in reserves from the original balance sheet date to December 31, 1995, and is a measure of the accuracy of the original estimate. The significant deficiencies shown for years 1983 through 1987 are related to the aforementioned discontinued GL/SMP lines of business. Such increases related to losses incurred in 1983 through 1984, and therefore affect reserve amounts in all years from 1983 through 1995. The lower portion of the table on the following page shows the cumulative amount paid with respect to the previously recorded liability as of the end of each succeeding year, and a reconciliation of the gross and net amounts for the latest two years. 6
1983 1984 1985 1986 1987 1988 1989 1990 1991 ------ ------ ------ ------ ------ ------- ------- ------- ------- (DOLLARS IN THOUSANDS) Net Liability for Losses/LAE--End of Year........ $3,010 $3,032 $2,684 $6,462 $8,623 $17,660 $28,697 $35,975 $36,481 Net Liability re-estimated as of: 1 year later......... 3,501 3,748 3,747 8,736 11,143 17,003 29,715 33,871 37,528 2 years later......... 4,170 4,721 5,504 10,233 11,622 17,752 29,619 32,720 36,381 3 years later......... 5,043 6,467 7,085 10,788 12,370 18,290 29,694 31,654 36,037 4 years later......... 6,366 8,031 7,643 11,299 12,717 18,294 28,581 30,222 34,529 5 years later......... 7,174 8,532 8,112 11,702 12,154 18,063 27,392 29,610 6 years later......... 7,537 8,990 8,472 11,091 12,288 17,994 26,815 7 years later......... 7,873 9,291 7,861 11,205 12,326 17,707 8 years later......... 8,284 8,687 7,975 11,244 12,304 9 years later......... 7,772 8,803 8,014 11,222 10 years later......... 7,861 8,842 7,992 11 years later......... 7,900 8,820 12 years later......... 7,878 Net Cumulative redundancy/(deficiency).. (4,868) (5,788) (5,308) (4,760) (3,681) (47) 1,882 6,365 1,952 Cumulative %.... (162)% (191)% (198)% (74)% (43)% (0)% 7% 18% 5% Paid (cumulative) as of: 1 year later......... 946 1,244 1,354 5,616 6,988 9,373 14,255 13,918 14,516 2 years later......... 1,989 2,389 2,573 6,734 8,424 11,676 18,265 17,497 17,832 3 years later......... 3,088 3,578 3,586 7,881 9,638 14,959 21,095 19,946 20,164 4 years later......... 4,145 4,562 4,736 8,766 11,472 15,693 21,833 21,276 24,004 5 years later......... 5,013 5,660 5,578 10,509 11,741 15,927 22,653 22,868 6 years later......... 5,968 6,474 7,279 10,732 11,920 16,606 23,480 7 years later......... 6,658 8,105 7,502 10,899 12,028 16,122 8 years later......... 7,232 8,328 7,669 10,998 12,042 9 years later......... 7,417 8,495 7,768 11,012 10 years later......... 7,561 8,594 7,782 11 years later......... 7,660 8,608 12 years later......... 7,674 1992 1993 1994 1995 ------ ------- ------- ------- Net Liability for Losses/LAE--End of Year........ $45,483 $51,358 $56,304 $62,420 Net Liability re-estimated as of: 1 year later......... 47,119 53,783 59,112 2 years later......... 47,482 52,625 3 years later......... 46,786 4 years later......... 5 years later......... 6 years later......... 7 years later......... 8 years later......... 9 years later......... 10 years later......... 11 years later......... 12 years later......... Net Cumulative redundancy/(deficiency).. (303) (1,268) (2,808) Cumulative %.... (1)% (2)% (5)% Paid (cumulative) as of: 1 year later......... 22,190 26,075 32,116 2 years later......... 26,374 33,952 3 years later......... 31,747 4 years later......... 5 years later......... 6 years later......... 7 years later......... 8 years later......... 9 years later......... 10 years later......... 11 years later......... 12 years later.........
Gross Liability--End of Year..................... 51,803 58,542 69,597 78,846 Reinsurance Recoverable.......................... 6,320 7,184 13,293 16,426 Net Liability--End of Year....................... 45,483 51,358 56,304 62,420 Gross Re-Estimated Liability--Latest............. 52,987 61,095 74,107 Re-Estimated Recoverable--Latest................. 5,868 7,312 14,995 Net Re-Estimated Liability--Latest............... 47,119 53,783 59,112 Gross Cumulative Deficiency...................... (1,184) (2,553) (4,510)
7 INVESTMENTS Investment income is an important source of revenue for the Company. The return on its investment portfolio has a significant bearing on the Company's results of operations. Funds of the Company's insurance company subsidiaries available for investment arise from their capital and surplus, as well as from the difference in timing between the receipt of premiums and the payment of claims. Investment income is also generated from investments in short-term securities of the premiums received and held in trust by USBenefits pending payment to Continental and other insurance carriers and from investment of commissions and fees received by USBenefits. In the fourth quarters of 1994 and 1995, the Company contributed $20,000,000 and $10,500,000, respectively, to USF RE, bringing its policyholders' surplus to over $100,000,000 at December 31, 1995. The Company adopted SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities," effective as of January 1, 1994. This pronouncement deals with the manner in which fixed maturity securities are valued in financial statements. For further information, see "Note 1 of Notes to CONSOLIDATED FINANCIAL STATEMENTS," incorporated by reference from the Company's Annual Report to Stockholders under Item 8 herein. The Company's investment policy is determined in accordance with guidelines established by the Investment Committee of the Company's Board of Directors, subject to state regulatory restrictions on the nature and extent of investments of insurance companies. Generally speaking, the Company's policy is to acquire investment grade bonds with maturities timed to meet the liquidity needs of the business, a limited amount of high-grade equity securities, certificates of deposit and short-term securities. This policy is substantially more restrictive than applicable insurance laws or regulations, because such laws and regulations permit some investment in high-yield bonds, stocks, real estate, and other vehicles which may have substantially more volatility and risk than USF RE's investments. At year-end 1995, approximately 99% of the fixed income portfolio was invested in securities rated A or better, with maturity dates ranging from 1-30 years. Short-term investments are comprised of bank certificates of deposit, tax-exempt auction rate preferred stocks which are redeemable at par value every 7-270 days, and tax- exempt money market funds. For further information, see "Note 2 of Notes to CONSOLIDATED FINANCIAL STATEMENTS," incorporated by reference from the Company's Annual Report to Stockholders under Item 8 herein. COMPETITION The insurance and reinsurance industries are highly competitive and consist of a large number of companies, many of which have financial resources, employees, facilities and experience substantially in excess of those of the Company. MEDICAL STOP-LOSS The medical stop-loss business is highly competitive and involves a diversified field of participants from small, start-up operations to large, well-established organizations such as USBenefits. In recent years there has been significant growth in the number of medical stop-loss providers. Currently the Company believes that there are over 200 providers of medical stop-loss coverage, as compared to approximately 120 providers in 1990. Based on its over-15 years of experience in the medical stop-loss business, the Company believes that it is the largest single issuer of medical stop-loss coverage in the United States. However, other large and established companies offer medical stop-loss products and services similar to those offered by USBenefits, and have large, well-established sales forces and ample resources at their disposal. USBenefits currently relies primarily on its long-standing relationships with independent TPAs as a source of business, as well as newer relationships with insurance agents, brokers and consultants. USBenefits must compete for its business by offering competitively priced products, providing high quality, timely services and paying commissions which are competitive. USBenefits believes that the financial strength of Continental and its A- (Excellent) rating from A.M. Best are positive factors in USBenefits' competitive position. 8 PROPERTY/CASUALTY REINSURANCE Competition in the reinsurance business is based on many factors, including a reinsurer's perceived overall financial strength, premiums charged, A.M. Best rating, services offered, claims handling, experience in the lines of business written and the number of jurisdictions in which a reinsurer is authorized to do business. The reinsurance market has two basic segments: reinsurers that primarily obtain their business directly from ceding insurance companies, and those that primarily obtain business through reinsurance intermediaries. USF RE obtains the majority of its property/casualty business through reinsurance intermediaries. USF RE's competition in this field includes numerous major international and domestic insurance and reinsurance companies and underwriting syndicates. Management believes that while USF RE's competitive position may have historically been negatively affected by its relatively small surplus and the lack of an A.M. Best rating, as a result of the increase of its surplus to over $100,000,000 and the A- (Excellent) rating from A.M. Best, USF RE's competitive position has been improved. The reinsurance marketplace has been and continues to be highly competitive. Due to losses caused by various natural disasters during the latter half of 1992 and continuing through 1995, both demand and rates for some segments of property reinsurance increased. This has caused a certain amount of relaxation in the competitive environment in this line of business. However, the overall reinsurance marketplace for property/casualty coverage continues to be highly competitive. SURPLUS LINES The surplus lines insurance business has many participants, including small companies such as USFIC and large, well-established organizations which create a highly competitive environment. Competition in the surplus lines area involves the same factors and considerations as with any insurance operation: the financial strength of the carrier, the premiums charged, the A.M. Best rating, the services offered, the timeliness of claims handling, experience in the lines of business written, relationships with brokers and the number of jurisdictions in which the carrier is authorized to do business. Based both upon an evaluation of such factors and because of USFIC's focus on specialized areas of the business, such as smaller commercial property and casualty accounts and other multiple-account programs in certain states, management believes that USFIC will be able to continue to grow in this field. REGULATION GENERAL Insurance and reinsurance companies are subject to primary regulation and supervision by the insurance departments of their states of domicile, as well as by agencies of other states where they are licensed or authorized to transact business. Such regulation and supervision is designed primarily to protect policyholders, not stockholders. Although the extent of such regulation varies from state to state, in general the insurance laws of states provide such supervisory agencies with broad administrative powers. These powers include the granting and revocation of licenses to transact business, the licensing of agents, the approval of policy forms and rates, the determination of reserve requirements, the monitoring of financial stability, the form and content of required financial statements, and the type and character of investments. Further, the National Association of Insurance Commissioners ("NAIC") has proposed a variety of model laws and regulations affecting insurance companies generally, including laws and regulations relating to solvency standards for all insurance companies. Certain of these model laws and regulations have been adopted by various states and others are being considered for adoption. USF RE and USFIC are required to file detailed annual financial and other reports with the appropriate insurance regulatory agency in each state in which they are admitted or authorized to do business. Their business and accounts are subject to examination by such agencies at any time, and the laws of Massachusetts and Pennsylvania and other states require periodic examination of USF RE and USFIC. USF RE was examined by 9 the Division of Insurance of the Commonwealth of Massachusetts during 1993 for the four-year period ended December 31, 1992. USFIC was examined by the Insurance Department of the Commonwealth of Pennsylvania during 1993 for the three-year period ended December 31, 1992. The final reports of these examinations did not indicate any concerns of a material nature or which were significant to USF RE's or USFIC's surplus as regards policyholders. PROPERTY/CASUALTY Historically the property/casualty reinsurance business has not been subject to extensive regulation. However, reinsurance is now under closer scrutiny by state agencies, as evidenced by the recent promulgation by the NAIC of several model laws and regulations. Additionally, legislative initiatives are being considered at the federal level to regulate the solvency of insurance and reinsurance companies. Management expects this trend toward greater regulation of the insurance and reinsurance industries to continue. At this time management cannot anticipate what impact, if any, such regulation would have on the Company's operations. USFIC is required by state laws governing surplus lines to be eligible to write business as a surplus lines insurer in each state in which its products are sold. Eligibility is based on a number of considerations, including size, financial condition, experience in the insurer's state of domicile, expertise of management and plan of operations. The writing of surplus lines is constrained by laws that require that the business can be written in a state only if coverage for the risk is not available from an insurer admitted in such state. Furthermore, the business can only be written through a licensed excess and surplus lines broker. MEDICAL STOP-LOSS Historically medical stop-loss coverage had not been subject to the high degree of regulation characteristic of the fully-insured group health business. State regulation of self-insured plans is preempted by the Employee Retirement Income Security Act of 1974 ("ERISA"). However, as medical stop- loss has grown in importance, states have attempted to circumvent ERISA's preemption by seeking to assert their regulatory authority over insurance companies writing medical stop-loss coverages and related service providers, such as USBenefits. States have now taken legislative or regulatory action to regulate policy and rate filings for this line of business. The Company and Continental have filed policies and rates as required by the applicable state laws. The NAIC has adopted a model Managing General Agents Law, the substance of which has been enacted in 49 states and the District of Columbia. This model law requires the licensing of managing general agents that perform certain functions on behalf of insurance companies, such as underwriting, together with claims settlement and payment. It also imposes certain requirements with respect to the content of agreements between insurance companies and managing general agents. USBenefits is licensed or registered as a managing general agent or third party administrator in various states where such licensing or registration is required. It is also licensed directly, or through one or more of its employees, in 42 states as a property/casualty insurance agent and in 47 states as an accident and health insurance agent. STATE INSURANCE HOLDING COMPANY LAWS The Company, its stockholders, and its insurance company subsidiaries are subject to the Insurance Holding Company Acts of the Commonwealth of Massachusetts where USF RE is domiciled, the State of California where USF RE is deemed to be "commercially domiciled" and the Commonwealth of Pennsylvania where USFIC is domiciled. Generally, these Insurance Holding Company Acts prohibit any person from acquiring "control" of a domestic insurer, or of a company controlling a domestic insurer, without prior approval of the insurance commissioner of such insurer's state of domicile. Control is presumed to exist through ownership or the right to acquire 10% or more of the stock of the insurer; but this presumption may be rebutted. These Insurance Holding Company Acts require holding companies and their insurance subsidiaries to register and file on a regular basis reports which include information concerning their capital structure, ownership and financial condition. Certain transactions between members of the holding company group are subject to fairness and 10 reasonableness standards, and notice of such transactions must be given to the Commissioners of Insurance of Massachusetts and Pennsylvania 30 days prior to entering into such transactions, during which time the Commissioners of these states may indicate their disapproval. Further, the California Holding Company Act requires approval of material transactions of an extraordinary type. The amount of dividends which USF RE is permitted to pay the Company is limited by the insurance laws of Massachusetts and California. USF RE must give notice to the Massachusetts and California Insurance Commissioners of all dividends and other distributions to stockholders within five business days after they are declared, and may not pay such dividends until ten business days after receipt by both Commissioners of the required notices. Following such dividends or distributions, USF RE's surplus to policyholders must be reasonable in relation to its outstanding liabilities and adequate to its financial needs. In addition, USF RE may not pay any "extraordinary" dividend or distribution until 30 days after the Massachusetts and California Insurance Commissioners have received notice of such dividend or distribution, and until both Commissioners have either (i) not disapproved such payment within such 30-day period, or (ii) approved such payment within such 30-day period. For 1996, the amount which may be paid in dividends by USF RE without prior regulatory approval is $10,057,000. The amount of dividends which USFIC may pay to USF RE is subject to similar restrictions under the laws of Pennsylvania. Since being acquired by the Company, neither USF RE nor USFIC has paid any dividends. LEGISLATIVE AND REGULATORY DEVELOPMENTS Federal healthcare legislation, which was extensively considered but not adopted by Congress during 1994, was again taken up by the Congress during 1995. As with prior efforts, such legislation concerns government regulation and control of the financing and delivery of healthcare. Among the items being considered are proposals concerning the scope of the present preemptive provisions of ERISA. Some of these proposals would reinforce the ERISA preemption of state regulation of self-insured plans, while others would permit states the authority to regulate specific aspects of self-insured plans. Over the past several years various states have been initiating their own healthcare reforms. With respect to the self-insured market, many of these actions have focused primarily on the small group health insurance market, generally plans with 50 employees or less. Other state efforts include attempts to regulate self-insured plans indirectly by regulating companies providing stop-loss coverage. Such efforts include prescribing policy terms and establishing minimum attachment points; i.e., the amount of risk an employer retains for itself. The Company believes these state initiatives have not had, and are not expected to have, a significant effect on its medical stop-loss business. In addition, the NAIC proposed in September 1995 a model act that would regulate medical stop-loss policies. The principal feature of the model act is a recommendation that stop-loss policies contain a minimum specific attachment point of $20,000. In order to be effective in any state, the NAIC model act would have to be adopted by legislative action in such state. To management's knowledge, no state has adopted the model act as of year end 1995. Management does not believes that all states will adopt the model act, and that of those states that may, some will adopt specific attachment point requirements lower than the $20,000 level recommended by the model act. Furthermore, based upon recent court decisions, the Company believes that if adopted by a state, the model act will continue to be challenged on the basis that it is preempted by ERISA. Accordingly, at this time the Company believes that the proposed model act will not have a significant effect on its medical stop-loss business. The Company cannot predict at this time the extent to which the federal or state legislative or regulatory initiatives discussed above will be adopted, or the extent of the impact they would have on the Company's business. Management believes, however, that changes to the healthcare system which ultimately may be adopted will continue to recognize employers' self-insurance of healthcare benefits as a viable and cost effective method of financing healthcare. Accordingly, management believes that there will be a continuing need for medical stop-loss products and that such products will remain a source of revenues to the Company. 11 Some of the statements included within this Item 1. and in Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as in the Consolidated Financial Statements and related Notes may be considered to be forward looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995), and which are subject to certain risks and uncertainties. Among those factors which could cause the actual results to differ materially from those suggested by such statements are the following: catastrophe losses in the Company's insurance lines or a material aggregation of losses; changes in federal or state law affecting an employer's ability to self-insure; the availability of adequate retrocessional insurance coverage at appropriate prices; stock and bond market volatility; the effects of competitive market pressures within the stop-loss or property/casualty marketplaces; the effect of changes required by generally accepted accounting practices or statutory accounting practices; and other risks which are described from time to time in the Company's filings with the Securities and Exchange Commission. EMPLOYEES As of March 21, 1996, the Company had 148 full-time employees. No employees are represented by labor unions, and management considers its employee relations to be excellent. EXECUTIVE OFFICERS OF THE COMPANY The executive officers of the Company are:
NAME AGE POSITION ---- --- -------- David L. Cargile........ 50 Chairman, President and Chief Executive Officer Howard S. Singer........ 50 Executive Vice President--Corporate Finance and Investor Relations John T. Grush........... 47 Senior Vice President Mark Burke.............. 51 Senior Vice President, Chief Financial Officer and Treasurer Jose A. Velasco......... 41 Senior Vice President, Secretary and General Counsel Craig J. Kelbel......... 42 Senior Vice President
All executive officers except Messrs. Cargile and Singer have been employed by the Company for more than five years. There are no family relationships among any of the executive officers of the Company. There have been no events under bankruptcy or insolvency laws, no criminal proceedings and no judgments or injunctions material to the evaluation of the ability and integrity of any executive officer during the past five years. The following information is provided for Messrs. Cargile and Singer: Mr. Cargile joined the Company in December 1991 as a Senior Vice President, was appointed President and Chief Operating Officer in August 1994, Chief Executive Officer in March 1995 and Chairman of the Board in April 1995. Prior to joining the Company he was employed by Reinsurance Facilities Corporation for seventeen years and had served since 1984 as its President and Chief Executive Officer. Mr. Cargile was employed by International Facultative Company prior to commencing his employment with Reinsurance Facilities Corporation and has served on the Board of Directors of a number of companies engaged in the reinsurance business. Mr. Singer has served as a director of the Company since its founding and also serves as a director of a number of the Company's subsidiaries. Commencing in the early 1970s Mr. Singer had been a securities broker-dealer in Chicago, Illinois, including acting as the President of his own company. From 1983 to November 30, 1991 he served in the capacity of financial consultant to the Company. On December 1, 1991, Mr. Singer was employed by the Company in the position of Executive Vice President. 12 ITEM 2. PROPERTIES The principal executive offices of the Company and its subsidiaries are located in 40,281 square feet of leased office space at 650 Town Center Drive, Costa Mesa, California. The lease on this facility was extended as of October 1, 1995 through March 31, 2007, with a five-year option to extend. Additional offices are maintained in leased premises in Chicago, Illinois; Philadelphia, Pennsylvania; Atlanta, Georgia; Tulsa, Oklahoma; and Phoenix, Arizona. ITEM 3. LEGAL PROCEEDINGS From time to time the Company is a party to legal proceedings incidental to its business, none of which individually or in the aggregate is considered by the Company to be material to its financial condition or results of operations. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matter was submitted to a vote of the stockholders during the fourth quarter of 1995. 13 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS During fiscal year 1995 the Company paid four quarterly cash dividends of $.05 per share. No cash dividends were paid during fiscal year 1994. In addition, material appearing under the captions "STOCKHOLDER INFORMATION" and "STOCK PRICE INFORMATION" in the 1995 Annual Report to Stockholders of US Facilities Corporation (the "Annual Report") is hereby incorporated by this reference. ITEM 6. SELECTED FINANCIAL DATA Material appearing under the caption "SELECTED FINANCIAL DATA" in the Company's Annual Report is hereby incorporated by this reference. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Material appearing under the caption "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" in the Company's Annual Report is hereby incorporated by this reference. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Material appearing under the captions "REPORT ON CONSOLIDATED FINANCIAL STATEMENTS," and "INDEPENDENT AUDITORS' REPORT" and contained in the Company's CONSOLIDATED FINANCIAL STATEMENTS and Notes thereto in the Company's Annual Report are hereby incorporated by this reference. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH AUDITORS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. PART III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT The information regarding directors and executive officers of the Registrant as required by Items 401 and 405 of Regulation S-K is set forth in Part I of this report under the caption "EXECUTIVE OFFICERS OF THE COMPANY" and under the caption "ELECTION OF DIRECTORS" in the Company's definitive Proxy Statement for the Company's 1996 Annual Meeting of Stockholders scheduled to be held on May 22, 1996, and which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 1995 (the "Proxy Statement"), and is hereby incorporated by this reference. ITEM 11. EXECUTIVE COMPENSATION The information required by Item 402 of Regulation S-K is set forth under the caption "COMPENSATION OF EXECUTIVE OFFICERS" in the Company's Proxy Statement, and is hereby incorporated by this reference. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The information required by Item 403 of Regulation S-K is set forth under the captions "SECURITY OWNERSHIP OF MANAGEMENT" and "SECURITY OWNERSHIP OF CERTAIN OTHER STOCKHOLDERS" in the Company's Proxy Statement, and is hereby incorporated by this reference. 14 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS The information regarding certain relationships and related transactions as required by Item 404 of Regulation S-K is set forth in the Company's Proxy Statement under the captions "COMPENSATION OF EXECUTIVE OFFICERS" and "RELATED TRANSACTIONS," and is hereby incorporated by this reference. PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (a) The following documents are filed as part of this Form 10-K: (i) The following is a list of financial statements, together with reports thereon, filed as part of this Form 10-K, all of which have been incorporated herein by reference to the material in the Company's Annual Report as described under Item 8 of this Form 10-K: Report on Consolidated Financial Statements Consolidated Income Statements--Years ended December 31, 1995, 1994 and 1993 Consolidated Balance Sheets--December 31, 1995 and 1994 Consolidated Statements of Stockholders' Equity--Years ended December 31, 1995, 1994, and 1993 Consolidated Statements of Cash Flows--Years ended December 31, 1995, 1994 and 1993 Notes to Consolidated Financial Statements Independent Auditors' Report (ii) The following is a list of financial statement schedules filed with this Form 10-K: Index to Schedules Independent Auditors' Report Schedule I--Summary of Investments Schedule II--Condensed Financial Information of Registrant Schedule III--Supplementary Insurance Information Schedule IV--Reinsurance All other schedules to the Consolidated Financial Statements required by Article 7 of Regulation S-X are not required under the related instructions or are inapplicable and therefore have been omitted. (iii) The following is a list of exhibits required to be filed as part of this Form 10-K by Item 601 of Regulation S-K: 2. None. 3.1, 4.1 Restated Certificate of Incorporation, as amended, as presently in effect. Filed as Exhibits 3.1 and 3.1.1 to the Company's Form S-1 Registration Statement declared effective by the Securities and Exchange Commission ("Commission") on October 31, 1986 (the "S-1 Registration Statement"), and incorporated herein by this reference; and as Exhibit 3 to the Company's Current Report on Form 8-K dated May 24, 1990, and incorporated herein by this reference. 3.2, 4.2 Bylaws of the Company, as amended, as presently in effect. Filed as Exhibit 4.2 to the Company's June 30, 1994 Quarterly Report on Form 10-Q, and incorporated herein by this reference. 4.3 Common Stock Certificate of the Company. Filed as Exhibit 4.1 to the Company's S-1 Registration Statement, and incorporated herein by this reference. 15 4.4 Rights Agreement. Filed as Exhibit 2 to the Company's Current Report on Form 8-K dated May 24, 1990, and incorporated herein by this reference. 4.5 First Amendment to Rights Agreement. Filed as Exhibit 1 to the Company's Current Report on Form 8-K dated January 16, 1992, and incorporated herein by this reference. 4.6 Second Amendment to Rights Agreement. Filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 29, 1994, and incorporated herein by this reference. 4.7 Third Amendment to Rights Agreement. Filed on October 3, 1995, as Exhibit 4 to the Company's Current Report on Form 8-K dated September 28, 1995, and incorporated herein by this reference. 9 None. 10 Material Contracts. 10.2(iii) Settlement Agreement and General Release between George Kadonada and the Company dated March 10, 1995. Filed as Exhibit 10.2 to the Company's March 31, 1995 Quarterly Report on Form 10-Q, and incorporated herein by this reference. 10.3 Employment Agreement dated December 1, 1991 between the Company and Howard S. Singer. Filed as Exhibit 10.3 to Company's Annual Report on Form 10-K for the year ended December 31, 1991 ("1991 Form 10-K"), and incorporated herein by this reference. 10.3(i) Amendment No. 1 to Employment Agreement between the Company and Howard S. Singer effective as of August 4, 1994. Filed as Exhibit 10.4 to the Company's June 30, 1994 Quarterly Report on Form 10-Q, and incorporated herein by this reference. 10.4 Agreement of Employment between the Company and David L. Cargile dated August 4, 1994. Filed as Exhibit 10.2 to the Company's June 30, 1994 Quarterly Report on Form 10-Q, and incorporated herein by this reference. 10.4(i)* Amendment to Agreement of Employment between the Company and David L. Cargile dated July 21, 1995, with exhibits thereto. 10.9 Stock Option Agreement dated May 23, 1991 between the Company and H.S. Singer Company, Inc. Filed as Exhibit 10.7(ii) to the Company's Form S-2 Registration Statement declared effective by the Commission on December 4, 1991 (the "S-2 Registration Statement"), and incorporated herein by this reference. 10.10 Stock Option Agreement dated September 16, 1991 between the Company and H.S. Singer Company, Inc. Filed as Exhibit 10.7(iii) to the Company's S-2 Registration Statement, and incorporated herein by this reference. 10.11 Stock Option Agreement dated December 18, 1991 between the Company and H.S. Singer Company, Inc. Filed as Exhibit 10.10 to Company's 1991 Form 10-K, and incorporated herein by this reference. 10.12 Consulting Agreement dated June 24, 1991 between US Benefits, Inc. and L. Steven Medgyesy. Filed as Exhibit 10.9 to the Company's S-2 Registration Statement, and incorporated herein by this reference. 10.14 Severance Agreement dated May 24, 1994 between the Company and David L. Cargile. Filed as Exhibit 10.3 to the Company's June 30, 1994 Quarterly Report on Form 10-Q, and incorporated herein by this reference. 10.14(i) Severance Agreement dated May 24, 1994 between the Company and Howard S. Singer. Filed as Exhibit 10.2 to the Company's June 30, 1994 Quarterly Report on Form 10-Q, and incorporated herein by this reference. 10.14(ii) Severance Agreement dated May 24, 1994 between the Company and John T. Grush. Filed as Exhibit 10.4 to the Company's June 30, 1994 Quarterly Report on Form 10-Q, and incorporated herein by this reference. - -------- * Describes a document being filed with this Annual Report on Form 10-K for year ended December 31, 1995. 16 10.14(iii) Severance Agreement dated May 24, 1994 between the Company and Mark Burke. Filed as Exhibit 10.5 to the Company's June 30, 1994 Quarterly Report on Form 10-Q, and incorporated herein by this reference. 10.14(iv) Severance Agreement dated May 24, 1994 between the Company and Jose A. Velasco. Filed as Exhibit 10.6 to the Company's June 30, 1994 Quarterly Report on Form 10-Q, and incorporated herein by this reference. 10.14(v)* Severance Agreement dated May 24, 1994 between the Company and Craig J. Kelbel. 10.15 Lease Agreement dated May 28, 1985 between Center Tower Associates and US Benefits, Inc. Filed As Exhibit 10.13 to the Company's S-1 Registration Statement, and incorporated herein by this reference. 10.16 First Amendment dated November 24, 1986 to Lease Agreement between Center Tower Associates and the Company as assignee of US Benefits, Inc. Filed as Exhibit 10.26 to the Company's S-2 Registration Statement, and incorporated herein by this reference. 10.17 Second Amendment dated July 8, 1992 to Lease Agreement between Center Tower Associates and the Company. Filed as Exhibit 10.17 to the Company's Annual Report on Form 10-K for the year ended December 31, 1992 ("1992 Form 10-K"), and incorporated herein by this reference. 10.18 Third Amendment dated May 4, 1993 to Lease Agreement between Center Tower Associates and the Company. Filed as Exhibit 10.18 to the Company's Annual Report on Form 10-K for the year ended December 31, 1993 ("1993 Form 10-K"), and incorporated herein by this reference. 10.18(i)* Fourth and Fifth Amendments dated August 29, 1994 and October 1, 1995, respectively, to Lease Agreement between Center Tower Associates and the Company. 10.19 Management Agreement No. 1 dated October 3, 1994 (with Addendums) between The Continental Insurance Company and USBenefits Insurance Services, Inc. Filed as Exhibit 10.1 to the Company's September 30, 1994 Quarterly Report on Form 10-Q, and incorporated herein by this reference. 10.19(i)* Additional Addendums to Management Agreement No. 1 between The Continental Insurance Company and USBenefits Insurance Services, Inc. 10.20 Quota Share Retrocession Agreement, as amended, dated July 11, 1986 between The Continental Insurance Company, as successor to Harbor Insurance Company by assumption, and USF RE INSURANCE COMPANY. Filed as Exhibit 10.47 to the Company's S-2 Registration Statement, and incorporated herein by this reference. 10.21 Amendment dated January 16, 1991 to Quota Share Retrocession Agreement between The Continental Insurance Company and USF RE INSURANCE COMPANY. Filed as Exhibit 10.21 to the Company's 1993 Form 10-K, and incorporated herein by this reference. 10.21(i) Amendment dated October 3, 1994 to Quota Share Retrocession Agreement between The Continental Insurance Company and USF RE INSURANCE COMPANY. Filed as Exhibit 10.21(i) to the Company's Annual Report on Form 10-K for the year ended December 31, 1994 ("1994 Form 10-K"), and incorporated herein by this reference. 10.22 US Facilities Corporation 1988 Employee Stock Plan. Filed as Exhibit A to the Company's Proxy Statement for the May 25, 1988 Annual Meeting of Stockholders, and incorporated herein by this reference. 10.23 US Facilities Corporation 1991 Employee Stock Option Plan. Filed as Exhibit A to the Company's Proxy Statement for the May 23, 1991 Annual Meeting of Stockholders, and incorporated herein by this reference. - -------- * Describes a document being filed with this Annual Report on Form 10-K for year ended December 31, 1995. 17 10.23(i) US Facilities Corporation Amended 1991 Employee Stock Option Plan. Filed as Exhibit A to the Company's Proxy Statement for the May 24, 1995 Annual Meeting of Stockholders, and incorporated herein by this reference. 10.24 US Facilities Corporation 1988 Directors Stock Option Plan. Filed as Exhibit B to the Company's Proxy Statement for the May 25, 1988 Annual Meeting of Stockholders, and incorporated herein by this reference. 10.24(i) US Facilities Corporation 1991 Directors Stock Option Plan Amended and Restated as of December 18, 1991. Filed as Exhibit 10.27 to Company's 1991 Form 10-K, and incorporated herein by this reference. 10.26* Amended US Facilities Corporation Incentive Compensation Program, as in effect for 1995. 11* The US Facilities Corporation and Subsidiaries Computation of Earnings Per Share. 12 None. 13* US Facilities Corporation 1995 Annual Report to Stockholders (filed with the Commission only to the extent it is specifically incorporated by reference in this 1995 Form 10-K). 16 None. 18 None. 21* Subsidiaries of US Facilities Corporation. 22 None. 23* Independent Auditors' Consent dated March 26, 1996. 24 None. 27* Financial Data Schedules. 28* Schedule P of 1995 Combined Annual Statement of USF RE INSURANCE COMPANY and USF Insurance Company filed with the Divisions of Insurance of the Commonwealths of Massachusetts and Pennsylvania. 99 None. (b) Reports on Form 8-K: No reports on Form 8-K were filed during the fourth quarter of the year ended December 31, 1995. - -------- * Describes a document being filed with this Annual Report on Form 10-K for year ended December 31, 1995. 18 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: March 26, 1996 US FACILITIES CORPORATION By /s/ David L. Cargile ----------------------------------- David L. Cargile Chairman of the Board Chief Executive Officer and President 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 Company and in the capacities and on the dates indicated.
SIGNATURE TITLE DATE --------- ----- ---- /s/ John A. Allison Director March 26, 1996 ____________________________________ John A. Allison /s/ Mark Burke Senior Vice President, Chief March 26, 1996 ____________________________________ Financial Officer and Mark Burke Treasurer (Principal Financial and Accounting Officer) /s/ David L. Cargile Chairman of the Board, Chief March 26, 1996 ____________________________________ Executive Officer and David L. Cargile President (Principal Executive Officer) Director March , 1996 ____________________________________ Jonathan D. DuBois /s/ John F. Kooken Director March 26, 1996 ____________________________________ John F. Kooken /s/ L. Steven Medgyesy Director March 26, 1996 ____________________________________ L. Steven Medgyesy /s/ Bernard H. Ross Director March 26, 1996 ____________________________________ Bernard H. Ross /s/ Charles L. Schultz Director March 26, 1996 ____________________________________ Charles L. Schultz /s/ Howard S. Singer Director and Executive March 26, 1996 ____________________________________ Vice President--Corporate Howard S. Singer Finance and Investor Relations /s/ Kenneth C. Tyler Director March 26, 1996 ____________________________________ Kenneth C. Tyler
19 INDEX TO SCHEDULES Independent Auditors' Report Summary of Investments........................................... Schedule I Condensed Financial Information of Registrant.................... Schedule II Supplementary Insurance Information.............................. Schedule III Reinsurance...................................................... Schedule IV
20 INDEPENDENT AUDITORS' REPORT Under date of February 6, 1996, we reported on the consolidated balance sheets of US Facilities Corporation and Subsidiaries as of December 31, 1995 and 1994, and the related consolidated income statements, statements of stockholders' equity and cash flows for each of the years in the three-year period ended December 31, 1995 as contained in the 1995 Annual Report to Stockholders. These consolidated financial statements and our report thereon are incorporated by reference in the annual report on Form 10-K for the year 1995. In connection with our audits of the aforementioned consolidated financial statements, we also audited the related consolidated financial statement schedules as listed in the accompanying index. These consolidated financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statement schedules based on our audits. In our opinion, such schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein. As discussed in Note 1 to the consolidated financial statements, the Company changed its method of accounting for investments in 1994 to adopt the provisions of the Financial Accounting Standards Board's Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities." KPMG PEAT MARWICK LLP Los Angeles, California February 6, 1996 21 US FACILITIES CORPORATION AND SUBSIDIARIES SCHEDULE I--SUMMARY OF INVESTMENTS DECEMBER 31, 1995
AMOUNT AT WHICH SHOWN ON BALANCE COST(1) VALUE(1) SHEET(1) -------- -------- ----------- (DOLLARS IN THOUSANDS) Fixed maturities: Bonds: United States Government agencies and authorities................................. $ 11,071 $ 11,793 $ 11,793 States, municipalities and political subdivisions................................ 69,967 74,437 74,437 Foreign governments.......................... 557 622 622 All other corporate bonds.................... 45,982 49,894 49,894 -------- -------- -------- Total fixed maturities..................... 127,577 136,746 136,746 Equity securities: Preferred stocks: Industrial and miscellaneous................. 250 251 251 Common stocks: Industrial and miscellaneous................. 14,685 16,440 16,440 -------- -------- -------- Total.......................................... 14,935 16,691 16,691 Other invested assets............................ 1,013 1,013 1,013 Short-term investments........................... 15,808 15,808 15,808 -------- -------- -------- Total investments.......................... $159,333 $170,258 $170,258 ======== ======== ========
- -------- (1) Cost represents the amortized cost of investments to the Company. Value represents current market value. Amount at which investments are shown on the balance sheet represents current market value as required by SFAS No. 115. 22 US FACILITIES CORPORATION AND SUBSIDIARIES SCHEDULE II--CONDENSED INCOME STATEMENTS US FACILITIES CORPORATION (PARENT COMPANY ONLY)
YEAR ENDED DECEMBER 31, ----------------------- 1995 1994 1993 ------- ------ ------ (DOLLARS IN THOUSANDS) Revenues: Dividends from subsidiaries......................... $ 6,000 $2,500 $4,000 Other............................................... 49 13 -- ------- ------ ------ Total revenues.................................... 6,049 2,513 4,000 Operating expenses: Other general and administrative.................... 1,723 648 826 Restructuring....................................... -- 654 -- Interest............................................ 2,259 48 48 ------- ------ ------ Total operating expenses.......................... 3,982 1,350 874 Other expenses: Unusual charges related to unsolicited takeover proposal........................................... -- 2,029 -- ------- ------ ------ Income (loss) before income taxes................... 2,067 (866) 3,126 Income tax benefits................................... (2,324) (1,008) (502) ------- ------ ------ Income before equity in earnings of subsidiaries.... 4,391 142 3,628 Equity in earnings of subsidiaries.................... 9,463 6,096 3,139 ------- ------ ------ Net income.......................................... $13,854 $6,238 $6,767 ======= ====== ======
23 US FACILITIES CORPORATION AND SUBSIDIARIES SCHEDULE II--CONDENSED BALANCE SHEETS US FACILITIES CORPORATION (PARENT COMPANY ONLY) ASSETS
DECEMBER 31, ----------------- 1995 1994 -------- ------- (DOLLARS IN THOUSANDS) Cash......................................................... $ 815 $ 2,540 Investment in and due from affiliates........................ 122,049 86,391 Other assets................................................. 2,425 1,735 -------- ------- Total assets............................................... $125,289 $90,666 ======== ======= LIABILITIES AND STOCKHOLDERS' EQUITY Note payable................................................. $ 35,000 $25,000 Accounts payable and accrued expenses........................ 2,228 2,587 -------- ------- Total liabilities.......................................... 37,228 27,587 -------- ------- Stockholders' equity: Common stock............................................... 61 59 Paid-in capital............................................ 44,489 44,261 Net unrealized investment gain (loss)...................... 7,211 (2,637) Retained earnings.......................................... 39,273 26,544 -------- ------- 91,034 68,227 Less treasury stock, at cost............................... (2,973) (5,148) -------- ------- Total stockholders' equity................................. 88,061 63,079 -------- ------- Total liabilities and stockholders' equity................. $125,289 $90,666 ======== =======
24 US FACILITIES CORPORATION AND SUBSIDIARIES US FACILITIES CORPORATION (PARENT COMPANY ONLY) SCHEDULE II--CONDENSED STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, --------------------------- 1995 1994 1993 -------- -------- ------- (DOLLARS IN THOUSANDS) CASH FLOWS FROM OPERATING ACTIVITIES: Net income........................................ $ 13,854 $ 6,238 $ 6,767 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Increase (decrease) in accounts payable and accrued expenses............................... (359) 666 886 Increase in other assets........................ (690) (406) (124) Equity in income of and change in due from affiliates..................................... (15,310) (5,602) (6,179) -------- -------- ------- Net cash provided by (used in) operating activities.................................... (2,505) 896 1,350 -------- -------- ------- CASH FLOWS FROM FINANCING ACTIVITIES: Payments on note payable.......................... -- -- (1,600) Proceeds from note payable........................ 10,000 25,000 -- Proceeds from issuance of common stock............ 2,405 1,588 263 Dividends Paid.................................... (1,125) -- -- Purchase of 498,000 shares of treasury stock...... -- (5,000) -- -------- -------- ------- Net cash provided by (used in) financing activities.................................... 11,280 21,588 (1,337) -------- -------- ------- CASH FLOWS FROM INVESTING ACTIVITIES: Increase in investment in affiliates.............. (10,500) (20,000) -- -------- -------- ------- Net (decrease) increase in cash.................. (1,725) 2,484 13 Cash at beginning of year........................ 2,540 56 43 -------- -------- ------- Cash at end of year.............................. $ 815 $ 2,540 $ 56 ======== ======== ======= Supplemental Disclosures of Cash Flow Information: Cash paid during the year for: Interest......................................... $ 2,187 $ 19 $ 48 Income taxes..................................... $ 5,217 $ 1,350 $ 1,232
25 US FACILITIES CORPORATION AND SUBSIDIARIES SCHEDULE III--SUPPLEMENTARY INSURANCE INFORMATION
BENEFITS, AMORTIZATION DEFERRED FUTURE POLICY CLAIMS, OF DEFERRED POLICY BENEFITS, LOSSES, NET LOSSES AND POLICY OTHER NET ACQUISITION CLAIMS AND UNEARNED PREMIUM INVESTMENT SETTLEMENT ACQUISITION OPERATING PREMIUMS SEGMENT COSTS LOSS EXPENSES PREMIUMS REVENUE INCOME EXPENSES COSTS EXPENSES WRITTEN ------- ----------- ----------------- -------- ------- ---------- ---------- ------------ --------- -------- . (DOLLARS IN THOUSANDS) 1995 Medical stop-loss and employee benefit products.. $ -- 17,947 -- 81,546 3,269 54,563 27,069 12,025 81,546 Property/casualty.. 2,830 60,947 17,705 33,425 5,872 23,180 8,895 3,304 35,350 ------ ------ ------ ------- ----- ------ ------ ------ ------- Total............. $2,830 78,894 17,705 114,971 9,141 77,743 35,964 15,329 116,896 ====== ====== ====== ======= ===== ====== ====== ====== ======= 1994 Medical stop-loss and employee benefit products.. $ -- 18,113 -- 72,517 2,273 48,356 23,647 13,772 72,517 Property/casualty.. 3,047 51,534 14,613 20,752 3,677 16,010 7,694 2,499 23,865 ------ ------ ------ ------- ----- ------ ------ ------ ------- Total............. $3,047 69,647 14,613 93,269 5,950 64,366 31,341 16,271 96,382 ====== ====== ====== ======= ===== ====== ====== ====== ======= 1993 Medical stop-loss and employee benefit products.. $ -- 18,791 -- 66,931 2,225 47,667 22,265 13,695 66,931 Property/casualty.. 2,467 39,979 10,293 16,275 3,632 10,050 6,611 2,485 18,644 ------ ------ ------ ------- ----- ------ ------ ------ ------- Total............. $2,467 58,770 10,293 83,206 5,857 57,717 28,876 16,180 85,575 ====== ====== ====== ======= ===== ====== ====== ====== =======
26 US FACILITIES CORPORATION AND SUBSIDIARIES SCHEDULE IV--REINSURANCE USF RE INSURANCE COMPANY AND SUBSIDIARY (WHOLLY-OWNED SUBSIDIARIES OF US FACILITIES CORPORATION)
INSURANCE PREMIUMS EARNED 1995 1994 1993 ------------------------- -------- ------ ------- (DOLLARS IN THOUSANDS) Gross amount (direct)............................... $ 12,218 $9,386 $ 6,289 Ceded to other companies............................ 14,398 10,690 5,781 Assumed from other companies........................ 117,151 94,573 82,698 Net amount.......................................... 114,971 93,269 83,206 Percentage of amount assumed to net................. 101.9% 101.4% 99.4%
27 EX-10.4(I) 2 AMENDED AGREEMENT OF EMPLOYMENT EXHIBIT 10.4(i) AMENDMENT TO AGREEMENT OF EMPLOYMENT This Amendment to Agreement of Employment ("Amendment") is entered into as of July 21, 1995, by and between US FACILITIES CORPORATION, a Delaware corporation (the "Company"), and DAVID L. CARGILE ("Executive"). WHEREAS, Company and Executive are parties to an Employment Agreement, entered into as of August 4, 1994 (the "Agreement"), which provides for the employment of Executive as President and Chief Operating Officer on the terms provided for therein; and WHEREAS, on March 22, 1995, Executive was promoted to Chief Executive Officer of the Company, with a need that Executive relocate his family in order to permit him to undertake substantially all of his duties and responsibility at the Company's corporate headquarters in Orange County, California; and WHEREAS, the Company and Executive desire to amend the Agreement to reflect Executive's change in duties and relocation to Orange County, California; NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth herein, the parties hereto agree as follows: 1. Position and Duties. Section 3 of the Agreement shall be amended ------------------- to read in full as follows: "The Executive shall serve the Company as its Chief Executive Officer and President, with full responsibility for the day to day management of the Company's business operations, and with such additional duties, powers, responsibilities and authority as may be delegated or assigned to Executive from time to time by the Company's Board of Directors." 2. Place of Performance. Section 5 of the Agreement shall be -------------------- amended to read in full as follows: "Executive's duties and responsibilities shall be conducted principally at the Company's corporate headquarters in Orange County, California, except for such travel as may be required to be undertaken on behalf of the Company's business. The Company may not relocate Executive for purposes of his employment under this Agreement without the express agreement of Executive to such relocation." 3. A new Section 7.07 shall be added to the Agreement, to read in full as follows: "7.07 Relocation Arrangements: ----------------------- (a) Pursuant to Section 5 of the Agreement as in effect prior to this Amendment, the Company agreed to pay for reasonable relocation costs incurred by Executive should the Company and the Executive mutually agree that Executive should relocate his residence and family to the Southern California area. Since Executive is making such a move at the request of the Company, the Company agrees to pay for, or reimburse Executive for costs incurred in connection with, all out-of-pocket costs in connection with such move, including without limitation, moving costs for household effects, automobiles and other personal property (including a horse owned by Executive), as well as costs for the family's actual move to California (whether by car or air), costs of house hunting trips for Executive and members of his immediate family and reasonable temporary housing in advance of the closing and occupancy of a home in Orange County. (b) The Company agrees to purchase Executive's Atlanta residence (or cause such residence to be purchased) at an agreed upon price based upon the appraised value of Executive's Atlanta residence. The Company shall absorb all transaction costs of such purchase, including realtor, inspection, appraisal and escrow fees. (c) The Company shall pay all transaction costs associated with the purchase by Executive of a principal residence in Orange County, California, including without limitation escrow fees, title insurance fees and other costs (excluding the purchase price thereof) commonly paid for by purchasers of residences in Orange County. In connection with the acquisition of such Orange County principal residence, and in light of the substantial services to be provided to the Company by Executive, the Company shall provide financing to Executive (the "Loan") for the purchase of such residence in an amount not to exceed the purchase price of the Orange County residence, less the net proceeds (the "Atlanta Equity") of Atlanta residence sale by Executive after satisfying the unpaid principal balance of Executive's Atlanta mortgage loan. The Loan shall be secured by a trust deed on Executive's Orange County residence. (d) The Loan shall be a non-transferable loan with a fixed monthly payment thereon for the first five years which shall equal the monthly principal and interest payments of Executive on his current Atlanta mortgage loan. All Loan payments shall be applied to interest during the first five years. Following the expiration of such five year period, or at such time as the unpaid principal balance shall be reduced below the current balance of Executive's Atlanta mortgage loan, the Loan shall be converted to a fully amortizing 15 year loan at a fixed interest rate equal to the current fixed rate on Executive's Atlanta mortgage loan. In addition, the Loan shall become due upon the earlier sale of the Orange County residence by Executive or one year after the termination of Executive's employment with the Company for any reason. Executive hereby certifies to the Company that Executive reasonably expects to be entitled to and will itemize deductions for federal income tax purposes for each year that the Loan is outstanding. (e) At the end of each calendar month or portion thereof during which Executive is employed by the Company (to a maximum of sixty (60) months) following the closing date of the acquisition of his Orange County residence, Executive shall receive a credit of $6,920.00 on the unpaid principal balance of the Loan. In addition, should Executive die or become disabled (as defined in the Agreement) while employed by the Company or should Executive be terminated by the 2 Company, he or his heirs shall be entitled at such time to the maximum sixty (60) month credit on the unpaid principal balance of the Loan notwithstanding that his actual employment period was less. (f) While the Loan is outstanding and Executive is employed by the Company, the Company agrees to provide monthly to Executive as additional compensation an amount equal to the additional state income taxes, net of any federal tax benefit, that are incurred by Executive as a result of the taxation of his income during the year (or a pro rata portion of such income if Executive is not employed by the Company for the whole year) as a California resident as contrasted with the taxation of such income as a Georgia resident. Furthermore, the Company agrees to provide to Executive as additional compensation an amount equal to the additional federal and state income taxes incurred by Executive due to the applicable credits as described above against the unpaid Loan balance. Such additional amount as set forth in this Section 7(f) shall be "grossed-up" to reflect the additional federal and state tax impact of such additional compensation and of any imputed income resulting from the interest rate on the Loan and the Company's payment of Executive's moving expenses." 5. Effect on Agreement. Except as modified by this Amendment to ------------------- Agreement of Employment, the terms and provisions of the Agreement shall remain in full force and effect throughout the term of the Agreement. 6. Counterparts. This Amendment may be executed in one or more ------------ counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment to Agreement of Employment as of the date first above written. US FACILITIES CORPORATION EXECUTIVE By: /s/ Jose A. Velasco /s/ David L. Cargile ------------------------- -------------------- Senior Vice President, David L. Cargile Secretary and General Counsel 3 PROMISSORY NOTE SECURED BY DEED OF TRUST LAGUNA HILLS, CALIFORNIA $649,000 July 24 1995 FOR VALUE RECEIVED, the undersigned, DAVID L. CARGILE and ANN M. CARGILE, husband and wife ("Borrower"), hereby promises to pay to US FACILITIES CORPORATION, a Delaware corporation (which, together with any subsequent holder of this Note, is referred to in this Note as "Lender"), or order, at 650 Town Center Drive, Suite 1600, Costa Mesa, California, or such other place as Lender may from time to time designate, the principal sum of Six Hundred Forty-nine Thousand Dollars, ($649,000), together with interest from the date hereof, principal and interest payable in accordance with Paragraph 1 below, beginning on the first (1st) day of September, 1995 and continuing on the first (1st) day of each and every month thereafter (each a "Payment Date") until July 31, 2015 or earlier (as described below) (the "Maturity Date"), on which date the entire principal balance of this Note, all accrued but unpaid interest and all other sums due under this Note shall be paid in full. 1. PAYMENTS -------- All principal, interest and other sums due hereunder shall be paid in lawful money of the United States. Interest payable with respect to any period that is less than a full calendar month shall be calculated on the daily outstanding principal balance according to the actual number of days in such period as a fraction of a 360-day year/30-day month. This Note may be prepaid in whole or in part at any time without penalty of premium. Principal and interest hereunder are payable in arrears with such principal and interest due to this Note in the amounts and at the times determined in accordance with the provisions of Section 7.07(d) of July 21, 1995 Amendment to the August 4, 1994 Agreement of Employment between Lender and David L. Cargile ("Employment Agreement"), as set forth in Subparagraphs A and B below. Borrower shall have the right to offset against any amounts due by Borrower under this Note, any amounts due to David L. Cargile under Section 7(f) of the Employment Agreement. A. Months 1 through 60. Commencing on the first Payment Date, ------------------- and continuing thereafter on each Payment Date through and including the 60th Payment Date, Borrower shall make payments of interest only in the amount of Two Thousand Two Hundred Dollars ($2,200) per month (the "Initial Payment"). Notwithstanding the foregoing, in the event that during Months 1 through 60 of the term hereof the unpaid principal balance of this Note shall be reduced below the amount of Two Hundred Thirty-four Thousand Two Hundred Thirty-five Dollars ($234,235) (the "Early Change Date"), Borrower's right and obligation to pay the Initial Payment shall terminate as of the next Payment Date and payments under this Note as of such next Payment Date shall thereafter be governed by Subparagraph B below. B. Months 61 through 240. Commencing on the earlier of the Early Change --------------------- Date or the 61st Payment Date (the "Payment Change Date"), and continuing on each Payment Date following and including the Payment Change Date through the Maturity Date, the monthly payment amount due hereunder shall be adjusted to be the amount that will amortize fully the entire principal balance of the Note then outstanding along with all accrued but unpaid interest then outstanding in approximate equal monthly installments of principal and interest over the period commencing on the Payment Change Date and ending on the date which is one hundred eighty (180) months after the Payment Change Date with interest from the Payment Change Date on unpaid principal and interest balance at the rate of Nine and Three-quarters Percent (9.75%) per annum. On or before thirty (30) days prior to the Payment Change Date, Lender shall notify Borrower of the amount thereafter due per month provided that Lender's failure to so notify Borrower shall not relieve Borrower of its obligations to continue to make payments hereunder. Borrower shall pay such amount on the Payment Change Date and on each Payment Date thereafter until the earlier of the date this Note is paid in full or the Maturity Date. 2. CREDITS ------- Commencing on the date hereof, for so long as David L. Cargile is employed by Lender, at the end of each calendar month of such employment (to a maximum of sixty (60) months thereafter), Lender shall credit Borrower the amount of Six Thousand Nine hundred Twenty Dollars ($6920) per month (the "Credit"), which Credit shall be applied against and used to reduce the principal balance of this Note. In addition, and notwithstanding the foregoing, if Borrower should die or become disabled (as defined under the Employment Agreement) while employed by Lender or should Borrower be terminated by Lender for any reason whatsoever on or before the 60th Payment Date, he or his heirs (as the case may be) shall be entitled to the maximum sixty (60) month Credit against the unpaid principal balance of the Note despite the fact that David L. Cargile's employment was terminated or interrupted prior to the end of such sixty (60) month period. 3. SECURITY: ACCELERATION UPON CERTAIN TRANSFERS --------------------------------------------- This Note is secured by a Deed Of Trust With Assignment Of Rents And Leases (the "Deed of Trust") of even date herewith given by Borrower to Lender, which Deed of Trust constitutes a lien on certain real property (the "Property") located in the County of Orange, State of California, as more particularly described in the Deed of Trust. The Deed of Trust contains the following provisions concerning acceleration of the indebtedness of this Note upon certain events: Transfers of Property or Termination of Borrower. Upon any sale, ----------------------------------------------- encumbrance, hypothecation or other transfer of the Property or any part of or interest in the Property, Beneficiary may, at its option, declare all of the sums secured by this Instrument to be immediately due and payable. In 2 addition, upon termination of David L. Cargile's employment with Beneficiary for any reason whatsoever (a "Termination"), Beneficiary may, at its option declare all sums due hereunder to be due and payable upon the one (1) year anniversary of such Termination. In either event, if Trustor fails to pay all principal and accrued but unpaid interest due under the Note in accordance with the terms thereof, Trustor shall be in default under this Instrument. Beneficiary may invoke all of the remedies available under this Instrument or otherwise available at law or in equity. 4. DEFAULT ------- The failure by Borrower in the due and punctual payment of interest or principal due under this Note in accordance with the terms hereof (which is not cured within 15 days after its occurrence) or an act of "Default" as defined in the Deed of Trust shall constitute a "default" under this Note. In the event of any default, Lender may elect, upon thirty (30) days written notice or demand to Borrower, to declare all principal and accrued but unpaid interest under this Note immediately due and payable. Any failure of Lender to make such election following a default or defaults shall not constitute a waiver of Lender's right to make the election in the event of any subsequent default. 5. COSTS OF COLLECTION ------------------- Borrower and all endorsers jointly and severally promise to pay all costs and expenses of collection, including without limitation, attorneys' fees, incurred by the Lender in enforcing this Note or the Deed of Trust. 6. BALLOON PAYMENTS ---------------- As more particularly described in Paragraph 3 above, upon the termination of David L. Cargile's employment with Lender/Beneficiary, this Note, at the option of Lender, is due and payable upon the one (1) year anniversary of the Termination. As a result, this Note is subject to Section 2966 of the Civil Code, which provides that the holder of this Note shall give written notice to the Trustor, or his successor in interest, of prescribed information at least 90 and not more than 150 days before any balloon payment is due. 7. MISCELLANEOUS PROVISIONS ------------------------ (i) This Note, the Deed of Trust and the Employment Agreement contain the entire agreement of the parties with respect to the matters covered hereby, and no other agreement, statement or promise made by any party hereto which is not contained herein shall be binding or valid. (ii) Borrower and all endorsers jointly and severally waive presentment for payment, demand and protest and notice of nonpayment, and waive any right to be released by reason of any extension of time or change in the terms of payment. 3 (iii) No failure or delay on the part of Lender in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of power, right or privilege preclude any other of further exercise of any such power, right or privilege. All powers, rights and privileges hereunder are cumulative to, and not exclusive of, any powers, rights or privileges otherwise available. (iv) This Note may not be transferred or assigned by Borrower without the express written consent of Lender, which consent shall not be unreasonably withheld. (v) The term "Borrower" as used herein in every instance shall include the maker's successors and assigns and shall denote the singular and/or plural, the masculine and/or feminine and natural and/or artificial persons whenever and wherever the context so requires or admits. BORROWER: --------- /s/ David L. Cargile -------------------- David L. Cargile /s/ Ann M. Cargile ------------------ Ann M. Cargile 4 Order No. Escrow No. Loan No. RECORDING REQUESTED BY: FIRST AMERICAN TITLE DOC # 95-0323368 WHEN RECORDED MAIL TO: 28-JUL-1995 02:44 PM Recorded in Official Records US Facilities Corporation Of Orange County, California 650 Town Center Drive Gary L. Granville, Clerk-Recorder Suite 1600 Page 1 of 5 Fees: $ 26.00 Costa Mesa, CA 92626 Tax: $ 0.00 ________________________________________________________________________________ SPACE ABOVE THIS LINE FOR RECORDER'S USE OR-9500644-MT DEED OF TRUST WITH ASSIGNMENT OF RENTS (SHORT FORM) This DEED OF TRUST, made ,between David L. Cargile and Ann M. Cargile, husband and wife herein called TRUSTOR, whose address is 26231 Mount Diablo Road, Laguna Hills, (Number and Street) (City) California , (State) FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called TRUSTEE, and US FACILITIES CORPORATION, a Delaware corporation , herein called BENEFICIARY, WITNESSETH: That Trustor grants to Trustee in trust, with power of sale, that property in the City of Laguna Hills County of Orange , State of California, described as: Lot 166 of Tract 9296 as per map recorded in Book 466, Pages 5-18 of the Official Records of Orange County, California. Such property is commonly known as 26231 Mount Diablo Road, Laguna Hills, California (the "Property"). together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits for the purpose of securing (1) payment of the sum of $649,000.00 with interest thereon according to the terms of a promissory note or notes of even date herewith made by Trustor, payable to order of Beneficiary, and extensions or renewals thereof, (2) the performance of each agreement of Trustor incorporated by reference or contained herein and (3) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or his successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18, 1964, in the book (continued on reverse side) 1158 (1/94) Page 1 of 4 and at the page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely:
COUNTY BOOK PAGE COUNTY BOOK PAGE Alameda 1288 556 Kings 858 713 Alpine 3 130-31 Lake 437 110 Amador 133 438 Lassen 192 367 Butte 1330 513 Los Angeles T-3878 874 Calaveras 185 338 Madera 911 136 Colusa 323 391 Marin 1849 122 Contra Costa 4684 1 Mariposa 90 453 Del Norte 101 549 Mendocino 667 99 El Dorado 704 635 Merced 1660 753 Fresno 5052 623 Modoc 191 93 Glenn 469 76 Mono 69 302 Humboldt 801 83 Monterey 357 239 Imperial 1189 701 Napa 704 742 Inyo 165 672 Nevada 363 94 Kern 3756 690 Orange 7182 18 COUNTY BOOK PAGE COUNTY BOOK PAGE Placer 1028 379 Sierra 38 187 Plumas 166 1307 Siskiyou 506 762 Riverside 3778 347 Solano 1287 621 Sacramento 5039 124 Sonama 2067 427 San Benito 300 405 Stanisiaus 1970 56 San Bernardino 6213 768 Sutter 655 585 San Francisco A-804 596 Tehama 457 183 San Joaquin 2855 283 Trinity 108 595 San Luis Obispo 1311 137 Tulare 2530 108 San Mateo 4778 175 Tuolumme 177 160 Santa Barbara 2065 881 Ventura 2607 237 Santa Clara 6626 664 Yolo 769 16 Santa Cruz 1638 607 Yuba 398 693 Shasta 800 663 San Diego SERIES 5 Book 1964, Page 149774
shall inure to and bind the parties hereto, with respect to the property above described. Said agreements, terms and provisions contained in said subdivisions A and B, (identical in all counties, and printed on pages 3 and 4 hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maximum allowed by law. The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him at his address hereinbefore set forth. See Rider A attached hereto and incorporated herein by this reference. STATE OF GEORGIA } COUNTY OF DEKALB }ss. Signature of Trustor ----------- On JULY 24, 1995 before me, /s/ David L. Cargile -------------------------- ------------------------------------- LINDA K. RICHARDS , David L. Cargile - ------------------------------------- ------------------------------------- personally appeared DAVID L. CARGILE /s/ Ann M. Cargile ------------------ ------------------------------------- AND ANN M. CARGILE , Ann M. Cargile - ------------------------------------- ------------------------------------- personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature /s/ Linda K. Richards ---------------------------- Notary Public, Gwinnett County, Georgia (This ares for official notarial seal) My Commission Expires April 14, 1996 (continued on next page) 1158 (1/94) Page 2 of 4 DO NOT RECORD The following is a copy of Subdivisions A and B of the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set forth at length therein. A. To protect the security of this Deed of Trust, Trustor agrees: (1) To keep said property in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. (4) To pay; at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor form any obligation hereof, may: make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof. Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgement of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: (1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such monies received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. (2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. (3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof. (4) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto." (5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right , prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (6) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public (continued on reverse side) 1158 (1/94) Page 3 of 4 announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, expressed or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. (7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. (8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. (9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. DO NOT RECORD REQUEST FOR FULL RECONVEYANCE - ------------- TO FIRST AMERICAN TITLE INSURANCE COMPANY, TRUSTEE: The undersigned is the legal owner and holder of the note or notes, and of all other indebtedness secured by the foregoing Deed of Trust. Said note or notes, together with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estates now held by you under the same. Dated ______________________________ ________________________________________ ________________________________________ Please mail Deed of Trust, Note and Reconveyance to ______________________________________________________ Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both - ------------------------------------------------------------------------------- must be delivered to the Trustee for cancellation before reconveyance will be - ------------------------------------------------------------------------------- made. - ----- DEED OF TRUST WITH POWER OF SALE [LOGO OF FIRST AMERICAN TITLE INSURANCE COMPANY APPEARS HERE] FIRST AMERICAN TITLE INSURANCE COMPANY TRUSTEE 1158 (1/94) Page 4 of 4 Rider A TO DEED OF TRUST WITH ASSIGNMENT OF RENTS AND LEASES Dated as of July 21, 1995 ("Deed Of Trust") From: David L. Cargile and Ann M. Cargile, husband and wife, Trustor To: First American Title Insurance Company, Trustee Beneficiary: US Facilities Corporation, Beneficiary The following additional provisions are made a part of the Deed of Trust: A. After the second full paragraph (commencing with the words "Together with the rents...," the following is added: and along with all of Trustor's right, title and interest in (all of which together are referred to herein as the "Property") all buildings, improvements and tenements now or hereafter erected on the Property, and all easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights and profits, water rights and stock, and all permanent fixtures, now or hereafter located in, or on, or used or intended to be used in connection with the Property, and all replacements and additions thereto, substitutions for any of the foregoing and proceeds and products thereof. B. Required Insurance. Paragraph (4) of this Deed of Trust is ------------------ modified to require that Trustor provide, maintain and keep in force the following policies of insurance: Trustor shall keep the improvement now existing or hereafter erected on the Property insured by carriers at all times satisfactory to Beneficiary against loss by fire, hazards included within the term "extended coverage," and such other hazards, casualties, liabilities and contingences as Beneficiary reasonably shall require and in such amounts and for such periods as Beneficiary shall require. Trustor shall be relieved of its obligation to keep a coverage in effect if such coverage is not generally available or if the price, terms or conditions of such coverage would generally negate the benefit of having such coverage in place. All insurance policies and renewals thereof shall be in a form acceptable to Beneficiary and shall include a standard mortgagee clause in favor of and in form acceptable to Beneficiary. In the event of loss, Trustor shall give immediate written notice to the insurance carrier and to Beneficiary. C. Delivery of Policies, Payment of Premiums. Paragraph A(2) of ----------------------------------------- this Deed of Trust shall be further modified as follows: All policies of insurance for liability shall name Beneficiary as an additional insured party. All such policies shall contain a provision that such policies will not be canceled or materially amended, which term shall include any reduction in the scope or limits of coverage, without at least thirty (30) days prior written notice to Beneficiary. In the event Trustor fails to provide, maintain, keep in force or deliver and furnish to Beneficiary the policies of insurance required by this paragraph, Beneficiary, may procure such insurance or single-interest insurance for such risk covering Beneficiary's interest, and Trustor will pay all premiums thereon promptly upon demand by Beneficiary. D. Events of Default. Paragraph B(6) of this Deed of Trust is ----------------- modified to provide that the following events shall be deemed a "Default" under this Deed of Trust entitling Beneficiary to remedies set forth in this Deed of Trust: (i) The occurrence of a breach of or default under that certain Promissory Note Secured by Deed of Trust of even date herewith between the parties. (ii) The Failure by the Trustor to keep the Property insured as required by this Deed of Trust, unless such failure is remedied within sixty (60) days. (iii) The failure by the Trustor to pay all taxes, assessments or fees due with respect to the Property, unless such failure is remedied within sixty (60) days. E. Transfers of Property or Termination of Borrower. Upon any sale, ------------------------------------------------ encumbrance, hypothecation or other transfer of the Property or any part of or interest in the Property, Beneficiary may, at its option, declare all of the sums secured by this Instrument to be immediately due and payable. In addition, upon termination of David L. Cargile's employment with Beneficiary for any reason whatsoever (a "Termination"), Beneficiary may, at its option, declare all sums due hereunder to be due and payable upon the one (1) year anniversary of such Termination. In either event, if Trustor fails to pay all principal and accrued but unpaid interest due under the Note in accordance with the terms thereof, Trustor shall be in default under this Instrument. Beneficiary may invoke all of the remedies available under this Instrument or otherwise available at law or in equity. Any party may at any time change its address for such notices by delivering or mailing to the other parties hereto, as aforesaid, a notice of such change. TRUSTOR: /s/ David L. Cargile -------------------- David L. Cargile /s/ Ann M. Cargile ------------------ Ann M. Cargile 2 STATE OF GEORGIA ) ) SS: COUNTY OF Dekalb ) ------ On July 24, 1995, before me, Linda K. Richards, a Notary Public in and for -- ----------------- said State, personally appeared Ann M. Cargile, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within Deed of Trust and acknowledged to me that she executed the same in her authorized capacity, and that here signature on the Deed of Trust the person, or the entity upon behalf of which the person acted, executed the Deed of Trust. WITNESS my hand and official seal. NOTARY PUBLIC, GWINNETT COUNTY, GEORGIA /s/ Linda K. Richards MY COMMISSION EXPIRES APRIL 14, 1996 - --------------------- (SEAL) STATE OF GEORGIA ) ) SS: COUNTY OF Dekalb ) ------ On July 24, 1995, before me, Linda K. Richards, a Notary Public in and for -- ----------------- said State, personally appeared David L. Cargile, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within Deed of Trust and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the Deed of Trust the person, or the entity upon behalf of which the person acted, executed the Deed of Trust. WITNESS my hand and official seal. NOTARY PUBLIC, GWINNETT COUNTY, GEORGIA /s/ Linda K. Richards MY COMMISSION EXPIRES APRIL 14, 1996 - --------------------- (SEAL) 3 EX-10.14(V) 3 SEVERANCE AGREEMENT EXHIBIT 10.14(v) Severance Agreement _______________ __ _______________ This Agreement is made and entered into as of this 24th day of May, 1994, by and between US Facilities Corporation, a Delaware corporation (the "Company"), and Craig J. Kelbel ("Executive"). RECITALS Whereas, the Executive is currently employed by the Company and is considered a key employee of the Company; and Whereas, the Company desires to retain the services of the Executive; and Whereas, the Company and the Executive desire to set forth the amounts payable and benefits to be provided by the Company to the Executive in the event of a termination of the Executive's employment with the Company under the circumstances set forth herein after the happening of a Change in Control (as defined herein); Now, Therefore, in consideration of the foregoing and the mutual agreements contained herein, and intending to be legally bound hereby, the parties agree as follows: AGREEMENT 1. Continued Employment. In reliance upon the promises of the -------------------- Company hereinafter contained, the Executive agrees that, for a period of not less than six (6) months commencing on the date set forth above, and subject to reasonable absences for illness, holiday and vacation or personal leave of absence in accordance with the Company's policies and practices in effect on the date hereof, the Executive will continue his employment with the Company and shall devote his best efforts to such duties as may be assigned to him by the Company from time to time; provided, however, that such duties shall not be inconsistent with Executive's present duties unless he consents thereto in writing. 2. Other Severance Arrangements. Except to the extent specifically ---------------------------- set forth herein, in the event of the termination of the Executive's employment with the Company, the Executive shall be entitled to receive any Company benefits payable under any employee benefit plan, program, policy or arrangement as such may then be in effect, including all such termination arrangements with Executive that may be described in any employment agreement. 3. Effective Date. This Agreement shall be effective as of the date -------------- first above written ("Effective Date") and shall continue and remain in full force and effect until the termination of Executive's employment with the Company, unless this Agreement is earlier terminated by the parties in writing. The completion of six (6) months of employment with the Company by the Executive as set forth in Section 1 shall not be a condition precedent to the effectiveness of this Agreement or to the payments of amounts or provision of benefits hereunder in the event the Executive's employment with the Company is terminated under the circumstances described in Section 4(b). 4. Termination of Employment. ------------------------- (a) Events Requiring No Payments Under Section 5: In the event the Executive's employment with the Company is terminated under any of the -2- following circumstances, no payments shall be or become due and owing, and the Company shall have no other obligations under Section 5 of this Agreement: (i) By either party for any reason prior to the happening of a Change in Control; (ii) By either party for any reason at any time more than two (2) years after a Change in Control; (iii) By the Company at any time, whether prior to, contemporaneous with or subsequent to a Change in Control, for reason of "Cause" (as hereinafter defined) or due to the request or demand of any regulatory authority; or (iv) By the Executive at any time, whether prior to, contemporaneous with or subject to a Change in Control, upon his retirement or resignation for reasons other than "Good Reason" (as hereinafter defined). Notwithstanding the foregoing, nothing contained in this Section 4(a) shall prevent the Executive or his spouse, heirs, estate or personal representative from receiving any amounts payable under any other plan, program, policy or arrangement that is not a severance plan, program, policy or arrangement. (b) Events Requiring Payments Under Section 5: In the event the Executive's employment with the Company is terminated under any of the following circumstances set forth in (i) and (ii) below, the Company shall make the payments and provide the benefits as set forth in Section 5: -3- (i) By the Company, contemporaneously with or within two (2) years after the happening of a Change in Control, for any reason other than (1) for Cause or (2) due to the request or demand of any regulatory authority; or (ii) By the Executive, contemporaneously with or within two (2) years after a Change in Control, for Good Reason. (c) For purposes of this Agreement, the term "Cause" shall mean (i) the commission by Executive of any material act of fraud or dishonesty; (ii) a final conviction of Executive of a felony in either a state or federal court proceeding; (iii) intentional and willful failure by Executive to faithfully carry out his duties and responsibilities as an employee of the Company, after reasonable notice in writing to and discussion thereafter with Executive; and (iv) Executive engaging in activities which place Executive in a direct or indirect conflict with the Company or its interests. The decision as to the existence of "Cause," as described in (i), (iii) and (iv) above, shall be determined by a majority of the Company's nonemployee Directors; provided, however, if there is a change in the composition of the Board such that those persons who served as nonemployee Directors on the Effective Date of this Agreement represent less than fifty percent (50%) of the total number of nonemployee Directors, then "Cause" shall be determined by use of the Settlement of Disputes provisions set forth in Section 8 of this Agreement. (d) For purposes of this Agreement, the term "Good Reason" shall mean the following five (5) events; provided, however, that Executive may waive in writing his objection to the occurrence of any such event, in which case such event will no longer constitute "Good Reason": -4- (i) Any material breach by the Company of its obligations contained in this Agreement; (ii) The assignment to the Executive of any duties inconsistent with the status of his position with the Company as such duties and position existed on the day immediately preceding the happening of a Change in Control, or an alteration in the nature or status of the Executive's duties and responsibilities that renders the Executive's position to be of less dignity, responsibility or scope from that which existed on the day immediately preceding the happening of a Change in Control; provided, however, it shall not be an event of Good Reason if the Executive is assigned additional duties for the Company or any affiliate or subsidiary of the Company which are not inconsistent with the duties described in Section 1 hereof so long as the aggregate of all duties assigned to the Executive in connection with his service with the Company, its affiliates or subsidiaries do not require the Executive to devote, on a consistent and sustained basis, substantially more time than other senior level executives of the Company are required to devote to their duties; (iii) A reduction by the Company in the Executive's annual base salary as was in effect on the day immediately preceding the happening of a Change in Control or as the same may be increased from time to time; (iv) The failure of the Company to continue in effect of the benefits enjoyed by the Executive under the Company's 1988 Employee Stock Plan or its 1991 Employee Stock Option Plan or under the -5- Company's Incentive Compensation Program, or any other compensation plan, program or arrangement, or any of the Company's pension, retirement, profit sharing, savings, life insurance, medical, health- and-accident, disability or other employee benefit plans, programs or arrangements as they existed on the day immediately preceding the happening of a Change in Control, or the failure of the Company to continue the Executive's participation therein; or the failure by the Company to provide the Executive with the number of paid vacation days to which he is entitled on the basis of years of service and position with the Company in accordance with the Company's normal vacation policy, or the failure of the Company to continue or if the Company adversely changes or reduces other specific contractual benefits or perquisites provided to Executive as they existed on the day immediately preceding the happening of a Change in Control, including, but not limited to, providing an automobile or an automobile allowance, club memberships, and dues for professional associates for Executive; (v) The assignment of the Executive to an office which is located more than 50 miles from the office at which the Executive was primarily performing his duties on the day immediately preceding the happening of a Change in Control. (e) For purposes of this Agreement, a "Change in Control" shall mean the occurrence, after the Effective Date, of any of the following events: (i) Any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the "Exchange Act") and -6- the regulations of the Securities and Exchange Commission (the "SEC") thereunder, each as in effect on the Effective Date of this Agreement and (including any such persons that may be deemed to be acting in concert with respect to the Company or the acquisition, ownership or voting of Company securities) becomes, directly or indirectly, the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act and the regulations of the SEC thereunder, each as in effect on the Effective Date of this Agreement) of outstanding securities of the Company representing 10% or more of the combined voting power of the Company's then outstanding securities; (ii) At any time during the term of this Agreement the composition of the Board of Directors of the Company is changed such that persons who were directors of the Company as of the Effective Date, or persons nominated or elected by a majority of such persons, do not continue to comprise a majority of the members of such Board of Directors of the Company; (iii) At any time during the term of this Agreement the stockholders of the Company approve a merger or consolidation of the Company with, or a reorganization transaction involving the Company and, any other entity, other than a merger, consolidation or reorganization which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 50% of the combined voting power of the voting securities -7- of the Company or such surviving entity outstanding immediately after such merger or consolidation; (iv) At any time during the term of this Agreement the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of more than 50% of its consolidated assets; or (v) At any time during the term of this Agreement any other event, transaction or series of events or transactions occurs as a result of which any person may be presumed to have "acquired control" of the Company (as such term is defined in Section 1215 of the Insurance Code of the State of California as in effect on the Effective Date). 5. Obligations of the Company Upon Termination of Employment. Upon --------------------------------------------------------- termination of Executive's employment with the Company under the circumstances set forth in Section 4(b), the Executive shall be entitled to receive, notwithstanding such termination, the following payments and to be provided the following benefits: (a) Salary and Bonus: Subject to the limitations set forth in Section 7 hereof, the Company shall pay to the Executive that amount which is equal to his regular base salary, at the rate then in effect, for a period of one (1) year, plus a bonus in an amount which shall be equal to the largest cash bonus actually received by Executive during his term of employment with the Company. -8- (b) Method of Payment: The payments due to Executive under Section 5(a) of this Agreement shall be made as follows: (i) The Company shall pay to the Executive his regular base salary in installments consistent with the Company's payroll practices then in effect, or in a single lump sum payment, whichever method is selected by Executive, in his sole discretion; (ii) The Company shall pay to Executive the bonus payments in a single lump sum; and (iii) Any lump sum payments due to Executive shall be paid to Executive on the Effective Date of his termination of employment. (c) Other Benefits: The Company shall continue in force for Executive for a period of two (2) years after Executive's termination the life insurance, medical, health-and-accident and disability benefit plans or programs then in effect on the date of Executive's termination from the Company; provided, however, that such Other Benefits as are set forth in this Section 5(c) shall not be required to be available to Executive if subsequent employment by Executive with another employer offers to Executive similar plans or programs in which the benefits equal or exceed the benefits which Executive could receive under the Company's plans or programs as provided herein. 6. No Duty to Mitigate. The Executive shall not be required to ------------------- mitigate the amount of any payment required hereunder by seeking other employment or otherwise, nor shall the amount paid hereunder be reduced or offset by any compensa- -9- tion earned or received by the Executive as a result of employment with another employer, self-employment or any amount received from any other plan, program, policy or arrangement of the Company. 7. Nonapplicability of Excise Tax. The parties intend that this ------------------------------ Agreement shall govern the rights an obligations of the parties with respect to severance payments payable upon a termination of Executive's employment with the Company, and that the excise tax as provided in Section 280G of the Internal Revenue Code shall not be applicable to payments under this Agreement. Accordingly, the parties agree that the aggregate amount which shall be paid to Executive under this Agreement shall be $1.00 less than that amount which would make such payment to Executive an "excess parachute payment" under the provisions of Sections 280G of the Internal Revenue Code, and to which an excise tax would be applicable. 8. Settlement of Disputes. ---------------------- (a) It is specifically agreed that any controversy or dispute between the parties to this Agreement involving the construction, interpretation, application, performance or breach of the terms, covenants or conditions of this Agreement or in any way arising under this Agreement shall, on demand of one of the parties by written notice hereto served on the other in the manner prescribed in Section 9(a) hereof, be determined pursuant to the general reference procedures prescribed by California Code of Civil Procedure Sections 638(1), et seq., as they may be amended from time to time, by a retired or former judge of the Superior Court for the County of Orange, State of California. The parties intend this general reference agreement to be specifically enforceable in accordance with said Section 638(1). -10- (b) The reference may be commenced by any party hereto by the filing in the Superior Court of the State of California for the County of Orange of a petition or a motion for a general reference proceeding. (c) The petition or motion may designate as a sole referee a retired judge working with JAMS who is acceptable to that party. If the parties to the reference proceeding are unable to mutually agree upon a referee, the Presiding Judge or any judge of the Orange County Superior Court to whom the matter is assigned shall appoint a retired or former Orange County Superior Court Judge from those listed with JAMS as available to act as a referee. (d) The petition and any opposition or response thereto shall recite in a clear and meaningful manner the factual basis of the controversy between the parties and identify the issues to be submitted to the referee for decision. (e) The parties acknowledge that this agreement is specifically enforceable and that the decision by the referee is tantamount to a judgment by a trial court (CCP (S) 644) and is subject to review in accordance with CCP (S) 645, and that any judgment rendered in the trial court is appealable in the same manner as any other trial court judgment. (f) The parties may agree on limited discovery. However, in the absence of an agreement, each party may: (i) take up to three depositions not totaling more than six hours cumulatively; (ii) propound one set of interrogatories, not to exceed 20 single questions; (iii) serve not more than 10 requests for admissions; and (iv) propound not to exceed 15 requests to produce documents, all as may be "reasonable," as measured by the circumstances and amount in dispute between the -11- parties. Any disagreements between the parties regarding discovery matters shall be resolved by the referee. (g) The hearing shall be held within 60 days after the referee is selected. The referee shall issue a written memorandum of decision setting forth his findings of fact and conclusions of law. 9. Miscellaneous. ------------- (a) Notices: All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally or sent by certified mail, return receipt requested, first-class postage prepaid, to the parties to this Agreement at the following addresses: If to the Company: US Facilities Corporation 650 Town Center Drive, Suite 1600 Costa Mesa, California 92626 Attention: Chief Executive Officer If to Executive: Craig J. Kelbel 56 Prairie Falcon Aliso Viejo, California 92656 or to such other address as either party to this Agreement shall have last designated by notice to the other party. All such notices and communications shall be deemed to have been received on the earlier of the date of receipt or the third business day after the date of mailing thereof. -12- (b) Binding Effect; Benefits: This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns. Nothing in this Agreement, express or implied, is intended or shall be construed to give any person, other than the parties to this Agreement or their respective successors or assigns, any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein. (c) Waiver: Either party hereto may by written notice to the other (i) extend the time for the performance of any of the obligations or other actions of the other under this Agreement; (ii) waive compliance with any of the conditions or covenants of the other contained in this Agreement; and (iii) waive or modify performance of any of the obligations of the other under this Agreement. Except as provided in the preceding sentence, no action taken pursuant to this Agreement, including, without limitation, any investigation by or on behalf of any party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants or agreements contained herein. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by either party to exercise any right or privilege hereunder shall be deemed a waiver of such party's rights or privileges hereunder or shall be deemed a waiver of such party's rights to exercise the same any subsequent time or times hereunder. (d) Amendment: This Agreement may be terminated, amended, modified or supplemented only by a written instrument executed by the Executive and the Company. -13- (e) Nonassignability: Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by either the Company or the Executive without the prior written consent of the other party. (f) Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of California, regardless of the law that might be applied under principles of conflict of laws. (g) Section and Other Headings: The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. (h) Withholding of Taxes: The Company may withhold from amounts required to be paid to the Executive hereunder any applicable federal, state, local and other taxes with respect thereto; provided, however, that the Company shall promptly pay over the amounts so withheld to the appropriate taxing bodies and provide to the Executive appropriate statements on forms proscribed for such purposes on the amounts so withheld. (i) Severability: If, for any reason, any provision of this Agreement is held invalid, such invalidity shall not affect any other provision of this Agreement not held so invalid, and each such other provision shall, to the full extent consistent with law, continue in full force and effect. If any provision of this Agreement shall be held invalid in part, such invalidity shall in no way affect the rest of such provision not held so invalid, and the rest of such provision, together with all other provisions of this Agreement, shall to the full extent consistent with law continue -14- in full force and effect. If this Agreement is held invalid or cannot be enforced, then to the full extent permitted by law, any prior agreement between the Company (or any predecessor thereof) and the Executive shall be deemed reinstated as if this Agreement had not been executed. (j) Counterparts: This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. In Witness Whereof, the Company has caused this Agreement to be executed and its seal affixed hereunto by its officers thereunto duly authorized, and the Executive has signed this Agreement, all as of the date first above written. Company: US Facilities Corporation ------- By /s/ George Kadonada ------------------------------- George Kadonada, Chairman of the Board, President and Chief Executive Officer Executive: --------- /s/ Craig J. Kelbel ---------------------------------- Craig J. Kelbel -15- EX-10.18(I) 4 FOURTH AMENDMENT TO OFFICE LEASE EXHIBIT 10.18(i) FOURTH AMENDMENT TO OFFICE LEASE ------------------- This FOURTH AMENDMENT to OFFICE LEASE (the "Amendment") is made and entered into as of the 29th day of August, 1994 by and between CENTER TOWER ASSOCIATES, a California general partnership ("Landlord"), and US FACILITIES CORPORATION, a Delaware corporation ("Tenant"), with respect to the following: RECITALS -------- A. Landlord is the landlord and Tenant is the last assignee of the tenant's interest pursuant to that certain office lease dated May 28, 1985 between Landlord and U.S. Benefits, Inc. (the "Original Lease"), as modified by two (2) certain letter agreements each dated May 28, 1985 (the "Letters"), a certain First Amendment to Office Lease dated November 24, 1986 (the "First Amendment"), a certain Second Amendment to Office Lease dated July 8, 1992 (the "Second Amendment") and a certain Third Amendment to Office Lease dated May 4, 1993 (the "Third Amendment"). The Original Lease, the Letters, the First Amendment, the Second Amendment and the Third Amendment are herein sometimes, collectively, referred to as the "Lease." B. Pursuant to the Second Amendment and Third Amendment, Tenant holds, among other spaces, a certain space consisting of approximately 3,309 square feet of Rentable Area and commonly known as Suite 1510 (the "Additional Space"). The term of the Lease with respect to the Additional Space expired on July 26,1994 (the "Second Expiration Date"). Tenant desires to further extend the term of the Lease with respect to the Additional Space, and Landlord is willing to consent to such extension. Landlord and Tenant enter into this Amendment to set forth the terms and conditions upon which Tenant shall continue to hold the Additional Space. AGREEMENT --------- IN CONSIDERATION of the foregoing recitals and the mutual promises and covenants contained herein, Landlord and Tenant agree as follows: 1. Term. The term of the Lease with respect to the Additional Space ---- shall be extended for the period from July 27, 1994 through April 21, 1997 (the "Second Extension Period"). 2. Terms of Leasing. During the Second Extension Period, Tenant ---------------- shall continue to hold and occupy the Additional Space upon all of the terms and conditions of the Second and Third Amendments, except that: (a) The Commencement Date of the Second Extension Period shall be the day following the Second Expiration Date. (b) Basic Annual Rent for the Additional Space for the Second Extension Period shall be $16.00 per square foot of Rentable Area. During the Second Extension Period, Tenant shall also pay all Additional Rent provided for in Paragraph 3 of the Original Lease with respect to the Additional Space. Basic Annual Rent and Additional Rent shall be paid at the times and in the manner provided in Paragraphs 2 and 3 of the Original Lease. (c) Landlord and Tenant each represents and warrants to the other that it has not retained or dealt with any broker, finder or agent in connection with the negotiation of this Amendment and the Second Extension Period, and that there is no broker, finder or agent entitled to claim a fee or commission through or under such warranting party. Each of Landlord and Tenant agrees to indemnify, defend and hold the other harmless from and against all claims for a fee or commission by any broker, finder or agent claiming through or under such warranting party. Payment shall not be a condition precedent to recovery upon the foregoing indemnification provision. (d) The provisions of Basic Lease Provisions 4, 5, 6, 7, 8, 10 and 12 and Paragraphs 1, 6(a), 35, 44.1, 44.2, 44.5 and 44.6 of the Original Lease, the Letters, the First Amendment, paragraphs 3(a), 3(b), 3(c) and 3(d) of the Second Amendment and paragraphs 1 and 2(a) of the Third Amendment shall have no application with respect to the Second Extension Period. (e) Any provisions of the Lease which are superseded by or inconsistent with the provisions of this Amendment shall have no application to the Second Extension Period. In the event of any inconsistency between the provisions of the Lease and the provisions of this Amendment, the provisions of this Amendment shall control with respect to the Second Extension Period. 3. Other Matters. Landlord and Tenant also acknowledge and agree ------------- that: (a) Nothing contained in this Amendment shall affect in any way the terms of the Lease with respect to the balance of the Premises. (b) The parties hereto agree that the terms of this Amendment are confidential and constitute proprietary information of the parties hereto. Disclosure of the terms hereof could adversely affect the ability of Landlord to negotiate with other tenants. Each of the parties hereto agrees that it and its respective partners, officers, directors, employees and attorney shall not disclose the terms and conditions of this Amendment to any other person without the prior written consent of the other party hereto except pursuant to an order of a court of competent jurisdiction; provided, however, that Landlord may disclose the terms hereof to any lender now or hereafter having a lien on Landlord's interest in the Building or any portion thereof, and either party may disclose the terms hereto to its independent accountants who review its financial statements or prepare its tax returns, to its counsel, bankers, investment bankers, brokers and agents, governmental agencies or other persons to whom disclosure is required as a matter of law or a requirement of diligent inquiry imposed by law and in any action which is brought to prevent the breach or continued breach of this Lease or to seek damages for any breach or alleged breach. The foregoing non-disclosure covenant shall also not extend to disclosure of the terms and conditions of this Amendment to any person or entity with whom Tenant is negotiating the acquisition (however effected) of Tenant or substantially all of Tenant's assets or to the lenders, legal counsel or other professional advisors to such potential acquiror. (c) Tenant currently holds the entire Additional Space and accepts the same "AS IS." Landlord shall have no responsibility, either as to performance or payment, to remodel or renovate the Additional Space for Tenant's use. Any work of remodeling or renovation of the Additional Space required for Tenant's use thereof shall (i) be the sole responsibility of Tenant, both as to performance and payment of the costs thereof, (ii) comply with all applicable requirements of the Lease and all governmental authorities having jurisdiction of the Additional Space and (iii) be subject to the prior written approval of Landlord. No remodeling or renovation by Tenant shall result in any abatement of the rent payable by Tenant with respect to the Additional Space. 2 4. Effective Date. This Amendment shall not be effective until -------------- executed and delivered by both Tenant and Landlord. Upon such last execution and delivery, this Amendment shall be effective as of July 27, 1994. 5. Counterparts. This Amendment may be executed in two or more ------------ counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 6. Defined Terms. All terms used herein with initial capital letters ------------- and not defined herein shall have the meanings given to such terms in the Lease. 7. Lease in Effect. Landlord and Tenant acknowledge that the Lease, --------------- as hereby amended and supplemented, remains in full force and effect in accordance with its terms. IN WITNESS WHEREOF, Landlord and Tenant have executed this Fourth Amendment to Lease to be effective as of the date specified in paragraph 4 hereof. US FACILITIES CORPORATION, CENTER TOWER ASSOCIATES, a California a Delaware Corporation general partnership By /s/ Mark Burke By Tower Associates, a Partnership, -------------------------- Managing Partner Title Sr. Vice President ------------------------ By /s/ Chase McLaughlin ---------------------------- Partner By /s/ John T. Grush --------------------------- Title Sr. Vice President By /s/ Henry T. Segerstrom ------------------------ ---------------------------- "Tenant" Managing Partner By /s/ Jeanette E. Segerstrom ---------------------------- Managing Partner "Landlord" 3 FIFTH AMENDMENT TO OFFICE LEASE ------------------------------- This FIFTH AMENDMENT to OFFICE LEASE (the "Amendment") is made and entered into as of the 1st day of October, 1995 by and between CENTER TOWER ASSOCIATES, a California general partnership ("Landlord"), and US FACILITIES CORPORATION, a Delaware corporation ("Tenant"), with respect to the following: RECITALS -------- A. Landlord is the landlord and Tenant is the last assignee of the tenant's interest pursuant to that certain office lease dated May 28, 1985 between Landlord and US Benefits, Inc. (the "Original Lease"), as modified by two (2) certain letter agreements each dated May 28, 1985 (the "Letters"), a certain First Amendment to Office Lease dated November 24, 1986 (the "First Amendment"), a certain Second Amendment to Office Lease dated July 8, 1992 the ("Second Amendment"), a certain Third Amendment to Office Lease dated May 4, 1993 (the "Third Amendment"), and a certain Fourth Amendment to Office Lease dated August 29, 1994 (the "Fourth Amendment"). The Original Lease, the Letters, the First Amendment, the Second Amendment, the Third Amendment, and the Fourth Amendment are herein sometimes, collectively, referred to as the "Lease." B. Landlord and Tenant desire to enter into this Amendment in order, among other things, to extend the term of the Lease, to expand the size of the Premises, to provide a renewal option and to provide a right of first offer. The Premises currently consists of approximately thirty-six thousand four hundred twelve (36,412) square feet of Rentable Area and the term is currently scheduled to expire on April 21, 1997. AGREEMENT --------- IN CONSIDERATION of the foregoing recitals and the mutual promises and covenants contained herein, Landlord and Tenant agree as follows: 1. Term. The term of the Lease with respect to the Premises, as ---- hereinafter expanded and as may be further expanded in the future pursuant to the terms of this Amendment, shall be extended for the period from April 22, 1997 through March 31, 2007 (the "Extended Term"). 2. Lease of Expansion Space. Landlord hereby leases to Tenant, and Tenant ------------------------ hereby hires from Landlord, upon the terms and conditions set forth in this Amendment, that certain space in the Building located on the fifteenth (15th) floor and commonly known as suite 1550 which contains approximately three thousand eight hundred sixty-nine (3,869) square feet of Rentable Area (the "Expansion Space") as depicted on Exhibit "A" attached hereto and made a part hereof. The term of the Lease with respect to the Expansion Space shall commence as of the date of this Amendment (the "Expansion Space Commencement Date") and shall terminate as set forth in Paragraph 1 above. All terms and conditions of the Lease shall apply to the Expansion Space as modified by this Amendment. The Premises and Expansion Space are sometimes hereinafter referred to as the Premises. 3. Payment of Rent. Basic Annual Rent shall be as follows: --------------- (a) To and until September 30, 1995, Tenant shall continue to pay Basic Annual Rent at the rate of $33.72 per square foot of Rentable Area ($2.81 per square foot per month). From the Expansion Space Commencement Date to and until the Expansion Space Rent Commencement Date, as defined in Paragraph 6 below, Basic Annual Rent at the rate specified in Paragraph 3(b) below, shall be based on the Rentable Area of the Premises as currently configured (36,412 square feet of Rentable Area); after the expansion Space Rent Commencement Date, Basic Annual Rent at the rates specified in Paragraphs 3(b) and (c) below, shall be based upon the Rentable Area of the Premises including the Expansion Space. (b) For the period from October 1, 1995 through March 31, 2007, and subject to the increase provided for in Paragraph 3(c) below, Basic Annual Rent shall be at the rate of $18.60 per square foot of Rentable Area ($1.55 per square foot per month) of the Premises. -1- (c) The Basic Annual Rent shall be adjusted upward only on a one-time basis as of October 1, 2000 to reflect any upward change in the cost of living. The adjustment, if any, shall be calculated upon the basis of the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index of Urban Wage Earners and Clerical Workers (Revised Series), subgroup "all items," entitled "Consumer Price Index of Urban Wage Earners and Clerical Workers (Revised Series), Los Angeles-Anaheim-Riverside Average, 1982-1984 = 100)." The Index for said subgroup published for the month of September, 1995 shall be considered the initial "base." The then current Basic Annual Rent shall be adjusted at the adjustment date by the percentage increase, if any, in the Index published for the month of September, 2000 over the "base"; provided, however, that in no event shall the Basic Annual Rent after any such adjustment be less than the Basic Annual Rent in effect immediately prior to such adjustment, notwithstanding the fact that the Index may, as of the adjustment date, be less than the "base." Further, no such increase shall exceed seventeen and one-half percent (17 1/2%). When the new Basic Annual Rent is determined, Landlord shall give Tenant written notice to that effect indicating how the new Basic Annual Rent figure was computed. If, at the adjustment date, there shall not exist the Consumer Price Index of Urban Wage Earners and Clerical Workers (Revised Series) in the same format as recited in this Paragraph 3(c), Landlord shall substitute any official Index published by the Bureau of Labor Statistics, or successor or similar governmental agency, as may then be in existence and shall be most nearly equivalent thereto. In effecting such substitution, Landlord shall utilize any conversion table provided by the governmental agency which issues such substitute index and shall make such adjustments as may be required so as to achieve a functional equivalency between the substitute index and the Consumer Price Index as of September 1995 both in terms of components and the relative percentages each component contributes to the overall Consumer Price Index. If any adjustment provided for herein shall not have been made at the commencement of the period for which applicable, Tenant shall continue to pay Basic Annual Rent at the last rate applicable until the Tenant receives Landlord's written notice as to such adjustment. Within ten (10) days after Tenant's receipt of Landlord's notice, Tenant shall pay to Landlord an amount equal to the new Basic Annual Rent divided by twelve (12) and multiplied by the number of months from October 1, 2000 to the date of receipt of Landlord's notice, less the aggregate amount paid by Tenant on account of Basic Annual Rent for the same period. Thereafter, Tenant shall pay Basic Annual Rent at the new rate set forth in Landlord's notice. (d) In addition, prior to and following commencement of the Extended Term, Tenant shall continue to pay all Additional Rent provided for in the Lease. To and until the Expansion Space Rent Commencement Date, such Additional Rent shall be based upon the Rentable Area of the Premises without regard for the Expansion Space, or approximately 36,412 square feet; thereafter, such Additional Rent shall be based upon the Rentable Area of the Premises including the Expansion Space or approximately 40,281 square feet, subject to the provisions of Exhibit "A-3" to the Lease. (e) Tenant's security deposit as denominated in Item 9 of the Basic Lease Provisions shall not be increased. 4. Expansion Space. As promptly as practicable following the execution --------------- and delivery of this Amendment, Landlord shall deliver the Expansion Space to Tenant and Landlord and Tenant shall diligently undertake and complete the planning and construction of the Expansion Space. 5. Improvements to the Expansion Space. Immediately subsequent to ----------------------------------- delivery of the Expansion Space to the Tenant, Tenant shall perform certain work of remodeling or renovation in the Expansion Space (the "Tenant's Work") and Landlord shall provide funding for such work but in no event to exceed $25.00 per square foot of Occupied Area or Seventy-Nine Thousand Eight Hundred Seventy-Five Dollars ($79,875.00) (the "Allowance") including any fees for space planning, design, engineering and permits, etc. (a) Tenant's work shall consist of all work depicted on the space plan (the "Plan") to be prepared by Tenant's planner (the "Planner"), which shall be subject to approval by both Landlord and Tenant. (b) Promptly following the execution and delivery of this Amendment, Tenant shall cause the Planner to prepare and submit for approval by Landlord and Tenant the Plan for Tenant's Work. Upon approval of the Plan by Landlord and Tenant, Tenant shall cause the Planner to prepare the working drawings for Tenant's Work and to apply for and obtain all governmental permits and approvals required in connection with the performance of Tenant's Work. The working drawings shall be subject to approval by both the Landlord and Tenant. -2- (c) Promptly upon approval by Landlord and Tenant of the working drawings for the Tenant's Work, Tenant shall cause three (3) tenant improvements contractors mutually approved by both Tenant and Landlord to prepare and submit to Tenant bids for the cost of construction of Tenant's Work. Tenant shall provide a copy of each such bid to Landlord. Tenant shall select the contractor to perform the Tenant's Work which selection shall be made by Tenant within ten (10) business days of Tenant's receipt of the bids. Landlord shall be responsible for the payment of the cost of construction up to twenty-five dollars ($25.00) per square foot of Occupied Area and Tenant shall be responsible for all additional costs, if any. In the event of any cost over twenty-five dollars ($25.00) per square foot of Occupied Area or the addition of any cost resulting from any change in or addition to Tenant's Work initiated by Tenant, Tenant shall pay such amounts. (d) Promptly following issuance of the governmental permits and approvals necessary for the conduct of Tenant's Work, Tenant shall cause Tenant's contractor to commence Tenant's Work and to diligently prosecute the same to completion. Tenant shall cause Tenant's Work to be completed as promptly as practicable; however, nothing herein shall require Tenant to utilize any overtime or special rate labor. Landlord shall fund one-half (1/2) of the Allowance to Tenant within three (3) business days of the date upon which all of the following have been accomplished: (i) The Plan and the working drawings have been fully approved by both Landlord and Tenant; (ii) Tenant has approved a bid, selected a contractor from the three (3) bidders and executed a construction contract for the Tenant's work with the selected contractor; and (iii) Tenant has received validly issued permits from all applicable governmental agencies having jurisdiction which are required for the Tenant Work in accordance with the Plan and the approved working drawings. Landlord shall fund the remaining one-half (1/2) of the Allowance (or so much thereof as may be necessary for Tenant to satisfy outstanding invoices for the completion of the Tenant Work in accordance with the Plan and the approved working drawings) to Tenant within three (3) business days of the date which is the last to occur of: (1) The Expansion Space Rent Commencement Date; (ii) the completion by Tenant of all of Tenant's Work, including all punch-list items in conformance with the Plans and the approved working drawings; and (iii) delivery to Landlord of a list of those persons or entities retained by Tenant or Tenant's contractor to perform any of Tenant's Work together with conditional lien releases or other documentary evidence reasonably satisfactory to Landlord, demonstrating that upon payment to such persons or entities, all rights of lien or actual liens shall be released. Tenant shall be solely responsible to pay for all costs of design and construction of Tenant's Work, subject to the Allowance specified in this Paragraph 5. In no event shall Landlord be required to fund any portion of the Allowance during the pendency of any default by Tenant. (e) Tenant's Work shall comply with all applicable requirements of all governmental authorities having jurisdiction of the Premises. All Tenant's Work shall comply with all rules and regulations adopted by Landlord for the safety of persons and property in and about the Building, for the care and cleanliness of the Building and for the preservation of the normal operations of the Building and its occupants, including but not limited to rules and regulations regulating the usage of the Building elevators and loading docks, the usage of staging areas outside of the Premises and the hours during which operations involving noise, dust and odors may be performed. With respect to all such matters, Tenant and its contractor shall comply with all directions of Landlord's construction manager. (f) Tenant may undertake such additional improvements as Tenant may desire subject to the terms and limitations of the Lease. (g) Tenant's Work shall be undertaken pursuant to the terms and conditions of the Work Letter Agreement attached hereto as Exhibit "B" and made a part hereof. (h) Tenant agrees and understands that the review of the Plan and the working drawings pursuant to this Amendment by Landlord is solely to protect the interests of Landlord in the Building and the Premises, and Landlord shall not be responsible for the correctness or accuracy of the Plan and/or working drawings or compliance of the Plan and/or working drawings with applicable laws. 6. Completion of Expansion Space. Promptly following the completion of ----------------------------- Tenant's Work in the Expansion Space, Tenant shall occupy same. The Expansion Space Rent Commencement Date shall be April 1, 1996. Subject to securing a valid certificate of occupancy for the Expansion Space, Tenant may occupy and use the Expansion Space for the conduct of its normal business operations pursuant to all of the terms and conditions of this Lease prior to the Expansion Space Rent Commencement Date and Tenant shall not be responsible for the payment of Basic Annual Rent or Additional Rent until the Expansion Space Rent Commencement Date. Tenant's occupancy of the Expansion Space shall be the sole responsibility of Tenant, both as to performance -3- and payment of all costs thereof. Such occupancy shall be conducted at such times and in such manner as shall be approved in advance by Landlord. Such occupancy shall also be conducted in accordance with all reasonable instructions or directions of Landlord's Building Manager for the purposes of protecting the Building and its occupants and preventing interference with the operations of the Building and its occupants. Such instructions or directions may include, but shall not be limited to, hours of usage of Building elevators, padding of elevators and methods of movement of large or heavy objects. 7. Modifications to Original Lease. From and after the Expansion Space ------------------------------ Commencement Date, Tenant shall hold and occupy the Premises including the Expansion Space upon all of the terms and conditions of the Lease as amended by the Letters, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment and as hereby amended, except that: (a) The following Basic Lease Provisions of the Lease shall be amended to read, in their entireties, as follows: "1. Building Name: The Center Tower Floors: 16 and a portion of 15 Address: 650 Town Center Drive Costa Mesa, CA 92626 Suites: 1600 and 1500 (portions of Suite 1500 were formerly referred to as Suites 1510 and 1550) 2. Rentable Area: 16th Floor - 21,634 square feet 15th Floor - 18,647 square feet 3. Expense Percentage: 9.5498% All portions of the Basic Lease Provisions of the Lease not specifically restated in this Paragraph shall remain in their original forms set forth in the Lease, and shall apply, except where superseded by the provisions of this Amendment, to both the Premises and the Expansion Space." (b) Basic Lease Provisions 4, 5, 7, 8, 10 and 12 and Paragraphs 1,6(a), 35, 44.1, 44.2, 44.5, 44.6 of the Original Lease, the Letters, Paragraphs 3(a), 3(b), 3(c), 3(d) and 4 of the First Amendment, Paragraphs 3(a), 3(b), 3(c) and 3(d) of the Second Amendment, Paragraphs 1 and 2(a) of the Third Amendment and Paragraphs 1, 2(a) and 2(b) of the Fourth Amendment shall have no application to the Premises including the Expansion Space for the existing term and the Extended Term. (c) The Basic Annual Rent and Additional Rent with respect to the Premises including the Expansion Space shall be as provided in Paragraph 3 above. (d) Those provisions of the Lease which are superseded by the provisions of this Amendment shall have no application to the Premises including the Expansion Premises for the existing term and the Extended Term. In the event of any inconsistency between the Lease and this Amendment, the provisions of this Amendment shall control as to the Premises including the Expansion Space for the Extended Term. (e) Upon execution of this Amendment and provided Tenant is current with payment of all of its rental obligations, Tenant's obligations for the payment of Basic Annual Rent and Additional Rent as calculated under the Lease in effect prior to this Amendment shall cease to further accrue as of the Expansion Space Commencement Date and Tenant's obligations for the payment of Basic Annual Rent and Additional Rent as calculated under this Amendment shall begin to accrue as of the Expansion Space Commencement Date. 8. Take-Down Space. --------------- (a) As of April 24, 1996 (the "Take-Down Space Commencement Date"), Tenant shall lease Suites 1520 and 1530, consisting of 1,600 square feet of Rentable Area and 1,861 square feet of Rentable Area respectively, (the "Take-Down Space") as depicted on Exhibit "C" attached hereto and made a part hereof, for a term commencing on the Take-Down Space Commencement Date and terminating upon the expiration or earlier termination of this Lease. In the event that Landlord is reasonably able to deliver the Take-Down Space to Tenant earlier than the Take-Down -4- Space Commencement Date, then Landlord shall attempt to do so and the Take-Down Space Commencement Date shall become the date of such delivery. Landlord shall have no affirmative obligation to deliver the Take-Down Space early but shall make reasonable attempts to do so without the necessity of spending any money or making any agreements which are economically disadvantageous to Landlord. (b) Effective on the Take-Down Space Commencement Date, this Lease, without further act of either party hereto, shall be deemed amended in the following respects: (i) The Take-Down Space shall be added to the Premises, in its then "as-is" condition and the term "Premises" as used in the Lease shall be deemed to include the Take-Down Space; (ii) The amount of Basic Annual Rent and Additional Rent which Tenant is required to pay under this Lease shall be appropriately increased at the same rate per square foot of Rentable Area as is provided in the Lease for the Premises, to reflect the amount of additional square feet of Rentable Area of the Take-Down Space; (iii) Tenant's Expense Percentage shall be increased by .8205% to reflect the addition of the Take-Down Space to the Premises demised hereunder which shall result in a total Expense Percentage of 10.3703%; and (iv) The expiration of the term of the Lease for the Take-Down Space shall be the same as for the Premises. Except as expressly otherwise provided herein, all of the terms, covenants, conditions, provisions and agreements of the Lease shall apply to the Take-Down Space. (c) Tenant shall accept the Take-Down Space in its then "as-is" condition. Tenant may construct improvements in the Take-Down Space in accordance with the terms of the Lease. Tenant shall pay for any and all improvements. (d) The Take-Down Space Rent Commencement Date shall be the later of (i) the date which is sixty (60) days after the Take-Down Space Commencement Date, or (ii) June 24, 1996. Subject to securing a valid certificate of occupancy for the Expansion Space, Tenant may occupy and use the Take-Down Space for the conduct of its normal business operations pursuant to all of the terms and conditions of this Lease prior to the Take-Down Space Rent Commencement Date and Tenant shall not be responsible for the payment of Basic Annual Rent or Additional Rent until the Take-Down Space Rent Commencement Date. (e) Notwithstanding the provisions of Paragraph 8(d) above and in lieu of any improvement allowance for the Take-Down Space, Basic Annual Rent shall be abated for the Take-Down Space as described in the following sentence and beginning on the first day of the first full calendar month following the Take-Down Space Rent Commencement Date. Basic Annual Rent for the Take-Down Space shall be abated in an amount equal to the cost of Tenant's Work (of the same nature and scope as for the Expansion Space) for the Take-Down Space but in no event to exceed an amount equal to $10.00 per square foot of Occupied Area within the Take-Down Space or Twenty-Eight Thousand Five Hundred Eighty Dollars ($28,580.00). (f) At the Take-Down Space Commencement Date, Landlord does not guarantee that delivery of the Take-Down Space will not be delayed if the then existing occupants of the Take-Down Space shall hold over, or for any other reason beyond Landlord's reasonable control. In such event, Basic Annual Rent and Additional Rent with respect to the Take-Down Space shall be abated until landlord legally delivers the same to Tenant, as Tenant's sole resource. If Landlord has not delivered the Take-Down Space to Tenant within five (5) months of the Take-Down Space Commencement Date, Tenant shall have the option to terminate its obligation to take the Take-Down Space by giving a five (5) business day written notice to Landlord specifying that Tenant elects to terminate its obligation concerning the Take-Down Space. If Landlord does not deliver the Take-Down Space to Tenant prior to the expiration of five (5) business days from the date of Landlord's receipt of Tenant's notice, Tenant's obligation to take the Take-Down Space shall lapse and be of no further force or effect with the Lease to otherwise remain fully operative. -5- 9. Right of First Offer. -------------------- (a) Tenant shall be entitled to a continuous right, during the existing term and the Extended Term, to lease additional space, on the fourteenth (14th) and seventeenth (17th) floors of the Building (the "ROFO Space") on a "right of first offer" basis as provided for in this Paragraph 9. Upon written request from Tenant given at any time during the Lease term or Additional Term, Landlord shall provide Tenant written notice (the "Availability Notice") of ROFO space which is then available for lease, if any together with the Basic Annual Rent and Additional Rent and other primary terms and conditions upon which Landlord is willing to lease the ROFO Space to Tenant. Tenant shall have ten (10) business days after its receipt of the Availability Notice (which notice shall identify the location of the ROFO Space in question, if any) in which Tenant may give Landlord written notice of Tenant's acceptance of the ROFO Space on the terms and conditions set forth in the Availability Notice and in this Paragraph 9 (the "Acceptance Notice"). After the expiration of such ten (10) business day period, if Tenant has not given Landlord a timely Acceptance Notice, then Landlord shall be free to lease the ROFO Space to any other person or entity on any terms and conditions. (b) Subject to Tenant submitting a written request to Landlord regarding the availability of the ROFO Space as provided for in subparagraph (a) above, commencing from the time such ROFO Space becomes available up until ten (10) business days after Landlord provides Tenant an Availability Notice with respect to such ROFO Space, Landlord shall not enter into any lease of the ROFO Space in question with any other person. If during such ten (10) business day period Tenant gives Landlord an Acceptance Notice, Landlord and Tenant shall then promptly enter into a lease of the ROFO Space on the terms and conditions specified in the Availability Notice and in subparagraph (c) below, which space shall be delivered in its then "as is" condition. The term of the lease for the ROFO Space shall commence on the "ROFO Space Commencement Date" (as defined in subparagraph (e) below), and shall terminate upon the expiration or earlier termination of this Lease. (c) If Tenant duly elects to lease ROFO Space, then effective on the ROFO Space Commencement Date, this Lease, without further act of either party hereto, shall be deemed amended in the following respects: (i) The ROFO Space shall be added to the Premises, in its then "as is" condition and the term "Premises" as used in this Amendment shall be deemed to include the ROFO Space; (ii) The amount of Basic Annual Rent and Additional Rent which Tenant is required to pay for the ROFO Space under this Lease shall be as specified in the Availability Notice as determined by Landlord with reference to the Fair Market Rental Rate as defined in Paragraph 9(d) below; and (iii) Tenant's Expense Percentage shall be appropriately increased to reflect the addition of the ROFO Space to the Premises demised hereunder. Except as expressly otherwise provided herein, all of the terms, covenants, conditions, provisions and agreements of the Lease, as amended, shall apply to the ROFO Space. (d) Basic Annual Rent and Additional Rent for the ROFO Space shall be the "Fair Market Rental Rate" and shall be as determined pursuant to this clause (d). The Availability Notice shall include Landlord's determination, in Landlord's good faith judgment, of the Fair Market Rental Rate as established by transactions of comparable space to the ROFO Space located in Center Tower ("Comparable Transactions"), including any periodic increase therein. In no event, however, shall the Fair Market Rental Rate be less than the amount of Basic Annual Rent Rate and Additional Rent then in effect under this Lease. If Tenant gives Landlord an Acceptance Notice, Tenant shall be deemed to have accepted Landlord's determination of the Fair Market Rental Rate, including any periodic increases therein. If Tenant shall fail to deliver an Acceptance Notice in the manner and within the time herein specified, then such failure shall constitute a rescission of Tenant's exercise of its option for the ROFO Space and, thereafter, Tenant's option shall have fully and forever lapsed and shall be of no further force or effect. In the event that Tenant shall deliver an Acceptance Notice in the manner and within the time herein specified, then the Basic Annual Rental and Additional Rent for the ROFO Space shall be the Fair Market Rental Rate so determined by Landlord, and all periodic increases, if any,as finally determined shall be applicable in full. (e) The ROFO Space Commencement Date shall be the earlier of (i) the date which is five (5) business days after Landlord gives Tenant written notice that the ROFO Space is -6- ready for occupancy; or (ii) upon such earlier date as Tenant takes possession of or commences use of the ROFO Space for any purpose, including construction. (f) The option to lease ROFO Space (the "ROFO Option") is personal to Tenant and may not be exercised or assigned, voluntarily or involuntarily, by, or to, any person or entity other than Tenant. In the event that at the time such ROFO Option is exercisable by Tenant, this Lease has been assigned, or a sublease exists as to any portion of the Premises, the ROFO Option shall be deemed null and void and Tenant, and any assignee or sublessee, shall not have the right to exercise the ROFO Option. (g) Tenant shall have no right to exercise the ROFO Option in the event that at the time permitted for the exercise of such ROFO Option, or at any time prior to the ROFO Space Commencement Date, Tenant is in default under any material provisions of this Lease, as amended. (h) If Tenant properly exercises the ROFO Option, Landlord and Tenant shall execute and deliver appropriate documentation to evidence the addition of the ROFO Space to the Premises hereunder and to reflect corresponding changes to the Basic Lease Provisions and other Lease terms. (i) Tenant shall have no rights with respect to any other leasable space within the Building except as specifically provided in the Lease. (j) Tenant's ROFO Option under this Paragraph 9 shall be subject and subordinate to the rights of renewal, extension, first refusal, first right of negotiation and expansion contained in existing leases within the Building. (k) If Tenant shall exercise the right of first offer granted herein, Landlord does not guarantee that the ROFO Space Commencement Date will not be delayed if the then existing occupants of the ROFO Space shall hold over, or for any other reason beyond Landlord's reasonable control. In the event, rent with respect to the ROFO Space shall be abated until Landlord's reasonable control. In such event, rent with respect to the ROFO Space shall be abated until Landlord legally delivers the same to Tenant, as Tenant's sole recourse. 10. Option to Extend. In the event that Tenant is not in default ---------------- hereunder beyond any applicable grace or cure period, either at the date of exercise or at the date upon which the Additional Term (as hereafter defined) would otherwise commence, Tenant shall have the option to extend the term of this Lease for one (1) additional term of five (5) years (the "Additional Term"). Such option shall be exercised, if at all, by written notice from Tenant to Landlord of Tenant's intention to exercise the option which shall be given not more than fifteen (15) months and not less than twelve (12) months prior to expiration of the term specified in this Amendment. Within sixty (60) days of receipt of such notice, Landlord shall notify Tenant in writing of the terms upon which Landlord is willing to extend the term of the Lease. Tenant shall notify Landlord within sixty (60) days of its receipt of Landlord's notice if Tenant accepts Landlord's terms and conditions for the extension of the Lease. Failure of Tenant to deliver its notice to Landlord within the sixty (60) day period shall be deemed a rejection of the Landlord's terms and conditions and the term shall not be extended and Tenant shall have no further right to extend the term. In the event that Tenant is not entitled to exercise the option, or is entitled to exercise the option but fails to do so in the manner and within the time herein specified, such option shall lapse and thereafter not be exercisable by Tenant. In the event that Tenant shall be entitled to exercise and shall timely and properly exercise the option pursuant to this Paragraph 10, the Additional Term shall be upon all of the terms and provisions of this Lease, as amended, except that: (a) The Additional Term shall commence immediately upon the expiration of the Extended Term. (b) The provisions of this Paragraph 10 shall not apply with respect to Additional Term. (c) The option to extend the term (the "Extension Option") is personal to Tenant and may not be exercised or assigned, voluntarily or involuntarily, by, or to, any person or entity other than Tenant. In the event that at the time such Extension Option is exercisable by Tenant, this Lease has been assigned, or a sublease exists as to more than ten percent (10%) of the Premises any portion of the Premises, the Extension Option shall be deemed null and void and Tenant and any assignee or sublessee, shall not have the right to exercise the Extension Option. -7- 11. Original Premises Allowance. Within thirty (30) days of mutual --------------------------- execution and delivery of this Amendment, Landlord shall provide Tenant with an allowance of One Hundred Fifty Thousand Dollars ($150,000) to be used to reconfigure, modify and/or improve the Premises. In addition, commencing on May 1, 1997, Basic Annual Rent shall be abated until such time as the aggregate abatement of Base Annual Rent equals an additional One Hundred Fifty Thousand Dollars ($150,000). At such time as Tenant has received the full economic benefit of the foregoing through such abatement of Basic Annual Rent, Tenant's payment of Basic Annual Rent shall commence again. Tenant shall have the right to select its own contractor, subject to Landlord's reasonable approval, to perform such reconfiguration, modification or improvements to the existing Premises as is permitted by the Lease. Landlord shall not be entitled to any management or supervision fee in connection with any work to be performed by Tenant with respect to the Original Premises, the Expansion Space or the Take- Down Space. Landlord shall cooperate with Tenant in connection with Tenant's improvement of the Premises (including the Expansion Space and Take-Down Space) and shall review and approve in a timely manner all plans and other documents for which Landlord's approval is required hereunder. Landlord's approval where required under this Amendment shall not be unreasonably withheld. 12. Confidentiality. The parties hereto agree that the terms of this --------------- Amendment are confidential and constitute proprietary information of the parties hereto. Disclosure of the terms hereof could adversely affect the ability of Landlord to negotiate with other tenants. Each of the parties hereto agrees that it and its respective partners, officers, directors, employees and attorneys shall not disclose the terms and conditions of this Amendment to any other person without the prior written consent of the other party hereto except pursuant to an order of a court of competent jurisdiction; provided, however, that Landlord may disclose the terms hereof to any lender now or hereafter having a lien on Landlord's interest in the Premises or any portion thereof, and either party may disclose the terms hereof including providing copies of or filing this Amendment with its independent accountants who review its financial statements or prepare its tax returns, to its counsel, bankers, investment bankers, brokers, governmental agencies or other persons to whom disclosure is required as a matter of law or a requirement of diligent inquiry imposed by law and in any action which is brought to prevent the breach or continued breach of the lease or to seek damages or any other available remedy for any breach or alleged breach. 13. Brokers. Other than the Saywitz Company and PM Realty Group, each of ------- Landlord and Tenant represents and warrants to the other that it has employed no broker, finder or real estate agent in connection with this Amendment and the transactions provided for herein, and that there is no broker, finder or real estate agent who is entitled to a fee or commission from or through such indemnifying party in connection with this Amendment or the transaction provided for herein. Landlord shall be responsible for payment of commissions due to the above named brokers in connection with this transaction. Each of Landlord and Tenant agrees to indemnify, defend and hold the other harmless from and against all claims for a fee or commission by any broker, finder or agent other than those specified above, claiming through such indemnifying party with respect to this Amendment or the transactions provided for herein. Payment shall not be a condition precedent to recovery upon the foregoing indemnification provision. The foregoing indemnification provision shall be deemed to include a covenant by each indemnifying party to defend the indemnified party against claims covered by such indemnification with legal counsel reasonably satisfactory to the indemnified party. 14. Counterparts. This Agreement may be executed in two or more ------------ counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 15. Defined Terms. All terms used in this Amendment with initial capital ------------- letters and not defined herein shall have the meanings given to such terms in the Lease. 16. Lease In Effect. Landlord and Tenant acknowledge and agree that the --------------- Lease, as hereby modified and supplemented, remains in full force and effect in accordance with its terms. 17. Access. Tenant shall have controlled access to the Premises and the ------ parking provided to Tenant twenty-four (24) hours per day, every day of the year. The foregoing shall not extend to temporary interruptions of such access as required for maintenance or repair or as a result of reconstruction or restoration following a casualty or condemnation or resulting from force majeure causes. -8- IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this Amendment to Lease as of the day and year first above written. US FACILITIES CORPORATION, a CENTER TOWER ASSOCIATES, a California Delaware corporation general partnership By /s/ Henry T. Segerstrom ----------------------------------- Managing Partner By /s/ Jose A. Velasco By /s/ Jeanette E. Segerstrom -------------------------------- ----------------------------------- Jose A. Velasco Managing Partner Title Senior Vice President, Secretary ----------------------------- and General Counsel By: Tower Associates, a partnership, Managing Partner By /s/ Mark Burke -------------------------------- Mark Burke Title Senior Vice President, Treasurer By /s/ Henry T. Segerstrom ----------------------------- ------------------------------- and Chief Financial Officer Managing Partner "Tenant" By /s/ Chase McLaughlin ------------------------------- Managing Partner "Landlord" Approved as to Form Pillsbury Madison & Sutro By: /s/ T. Becket ----------------------- -9- EXHIBIT "A" FLOOR PLAN OF 15TH FLOOR OF CENTER TOWER BUILDING APPEARS HERE SHOWING LOCATION OF SUITE 1550 AND OF RESTROOMS, ELEVATORS AND STAIRWELLS. [LOGO OF CENTER TOWER APPEARS HERE] Floor 15 650 Town Center Drive Suite 1550 Costa Mesa, California 3,869 Rentable S.F. [KEY MAP APPEARS HERE] Exhibit "A" EXHIBIT "B" ----------- WORK LETTER AGREEMENT [BUILD TO SUIT] In connection with the lease to which this Work Letter is attached (the "Lease"), Landlord and Tenant hereby agree to the terms and conditions set forth in this Work Letter relating or the construction of the tenant improvements in the Expansion Space, herein referred to as Premises (the "Tenant Improvements"). This Work Letter is essentially organized chronologically and addresses the issues of the construction of the Premises, in sequence, as such issues will arise during the actual construction of the Premises. All capitalized terms used but not defined herein shall have the meanings given such terms in the Lease. SECTION I. ---------- CONSTRUCTION DRAWINGS FOR THE PREMISES -------------------------------------- Landlord and Tenant shall approve the Plan including the working drawings as provided in the Lease. The working drawings shall be referred to as the "Approved Working Drawings." Tenant shall construct, at Tenant's cost (subject to the Allowance), the Tenants Improvements pursuant to the Approved Working Drawings. Tenant shall make no changes or modifications to the Plan or to the Approved Working Drawings without the prior written consent of Landlord, which consent shall not be unreasonably withheld. The construction shall be undertaken in substantial compliance with the Plan and the Approved Working Drawings. SECTION II. ----------- SUBSTANTIAL COMPLETION ---------------------- The term "Substantial Completion" means that Tenant has completed the Tenant Improvements and other work that it is obligated to perform pursuant to this Work Letter, and that this work shall be deemed complete, notwithstanding the fact that minor details of construction, mechanical adjustments or decorations which do not materially interfere with Tenant's use of the Premises remain to be performed (items normally referred to as "Punch-List Items"). The Premises shall be deemed to have achieved Substantial Completion even though Tenant's furniture, telephones, telexes, telecopies, photocopy machines, computers and other business machines or equipment have not been installed, the purchase and installation of which shall be Tenant's sole responsibility. Landlord and Tenant shall conduct a walk-through of the Premises within three (3) days of Substantial Completion for the purpose of preparing a record of any Punch-List Items which need to be completed or corrected, and Tenant shall cause such Punch-List Items to be completed or corrected within a reasonable time thereafter. SECTION III. ------------ CONTRACTOR'S WARRANTIES AND GUARANTIES -------------------------------------- Tenant shall retain, for the mutual benefit of Landlord and Tenant, all warranties and guaranties by the contractor who constructs the Tenant Improvements (the "Contractor") relating to the Tenant Improvements, and Tenant hereby waives all claims against Landlord relating to, or arising out of the construction of, the Tenant Improvements. Such warranties and guaranties of Contractor shall guarantee that the Tenant Improvements shall be free from defects in workmanship and materials for a period of not less than one (1) year from date of completion thereof, and Contractor shall be responsible for the replacement and repair, without additional charge, of the Tenant Improvements that shall become defective within one (1) year after Substantial Completion of the Premises. Exhibit "B" Page 1 of 2 SECTION IV. ----------- MISCELLANEOUS ------------- 4.1 FREIGHT ELEVATORS. Landlord shall, consistent with its obligations to ----------------- other tenants of the Building, and subject to the needs of Landlord with respect to any construction or alteration of the Base, Shell and Core of the Building, make the freight elevator reasonably available to Tenant in connection with initial decorating, furnishing and moving into the Premises. 4.2 TENANT'S REPRESENTATIVE. Tenant has designated Nancy Darragh and Jose ----------------------- A. Velasco as its sole representatives with respect to the matters set forth in this Work Letter, either of whom, until further notice to Landlord, shall have full authority and responsibility to act on behalf of the Tenant as required in this Work Letter. 4.3 LANDLORD'S REPRESENTATIVE. Landlord has designated John Sterling as ------------------------- its sole representative with respect to the matters set forth in this Work Letter, who, until further notice to Tenant, shall have full authority and responsibility to act on behalf of the Landlord as required in this Work Letter. 4.4 INSURANCE REQUIREMENTS. All of Tenant's contractors and agents shall ---------------------- carry excess liability and Products and Completed Operation Coverage insurance, each in amounts not less than $500,000 per incident, $1,000,000 in aggregate, and in form and with companies as are required to be carried by Tenant as set forth in Paragraph 19 of the Lease, and the policies therefor shall insure Landlord and Tenant, as their interests may appear, as well as the Contractor, and shall name as additional insureds Center Tower Associates and all mortgagees of the Project. Tenant's agents shall maintain the foregoing insurance coverage in force until the Tenant Improvements are fully completed, except for Products and Completed Operation Coverage insurance, which is to be maintained for ten (10) years following completion of Contractor's work and acceptance by Landlord and Tenant. All insurance maintained by Tenant's agents shall preclude subrogation claims by the insurer against any one insured thereunder. Such insurance shall provide that it is primary insurance as respects the Landlord and that any other insurance maintained by Landlord is excess and not contributing with the insurance required hereunder. 4.5 TIME OF THE ESSENCE IN THIS WORK LETTER. Unless otherwise indicated, --------------------------------------- all references herein to a "number of days" shall mean and refer to calendar days. Time is of the essence with respect of each provision hereof. 4.6 TENANT'S LEASE DEFAULT. Notwithstanding any provision to the contrary ---------------------- contained in this Lease, if an event of default as described in Paragraph 25 of the Lease, or a material default by Tenant under this Work Letter, has occurred at any time on or before the Substantial Completion of the Premises, then (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to cause Contractor to cease the construction of the Premises (in which case, Tenant shall be responsible for any delay in the Substantial Completion of the Premises covered by such work stoppage), any and all other obligations of Landlord under the terms of this Work Letter shall be forgiven until such time as default is cured pursuant to the terms of the Lease. Exhibit "B" Page 2 of 2 EXHIBIT "C" FLOOR PLAN OF 15TH FLOOR OF CENTER TOWER BUILDING APPEARS HERE SHOWING LOCATION OF SUITES 1520 AND 1530, AND OF RESTROOMS, ELEVATORS AND STAIRWELLS.
[LOGO OF CENTER TOWER APPEARS HERE] Floor 15 650 Town Center Drive Suites 1520 and 1530 Costa Mesa, California 1,600 and 1,861 Rentable S.F., [KEY MAP APPEARS HERE] respectively
Exhibit "C" EX-10.19 5 ADDENDUM SIX TO MANAGEMENT AGREEMENT NO. 1 EXHIBIT 10.19 (i) ADDENDUM SIX to MANAGEMENT AGREEMENT NO. 1 between USBENEFITS INSURANCE SERVICES, INC. and THE CONTINENTAL INSURANCE COMPANY AMENDED PROVISIONS ------------------ THIS AGREEMENT is hereby amended for any and all business covered by this Agreement in the State of Indiana as set forth below. The parties ratify and confirm all of the other provisions of this Agreement executed by the parties effective as of January 1, 1994. A. Section 3 - DUTIES AND RESPONSIBILITIES OF THE UNDERWRITING MANAGER Add as 3.10: The Underwriting Manager shall not do any of the following: (a) bind reinsurance or retrocessions on behalf of the Company; (b) commit the Company to participate in insurance or reinsurance syndicates; (c) appoint any producer without assuring the Company that the producer is lawfully licensed to transact the type of insurance which is the subject of this Agreement; (d) without the prior approval of the Company, commit the Company to pay a claim over a specified amount, net of reinsurance, that shall exceed one percent (1%) of the Company's policyholder surplus as of December 31 of the last completed calendar year before said payment or commitment; (e) collect any payment from a reinsurer or commit the Company to any claim settlement with a reinsurer without the prior approval of the Company; (f) permit its subproducer to serve on the Company's board of directors; (g) jointly employ an individual who is employed with the Company; or (h) appoint a sub-underwriting manager or sub- managing general agent. In the event the Underwriting Manager is given prior approval to commit the Company to any claim settlement with a reinsurer, the Underwriting Manager shall promptly forward to the Company a report of such claim settlement. B. Section 4 - PREMIUMS is modified as follows: 4.3 Add to this subsection: The Underwriting Manager will render accounts to the Company detailing all transactions and will remit all funds due under this Agreement to the Company on not less than a monthly basis. C. Section 7 - RECORDS AND REPORTS 7.1 Add to this subsection: The Company shall have access to and the right to copy all accounts and records of the Underwriting Manager related to the business of the Company which is the subject of this Agreement in a form usable by the Company, and the Commissioner of the Indiana Department of Insurance shall have access to all books, bank accounts, and records of the Underwriting Manager in a form usable to the Commissioner of the Indiana Department of Insurance. D. Section 6 - MANAGEMENT OF CLAIMS AND LOSSES is amended as follows: 6.3 Add to this subsection: Any settlement authority granted to the Underwriting Manager by the Company under this Agreement may be terminated for cause upon the Company's written notice to the Underwriting Manager or upon the termination of this Agreement. The Company may suspend the settlement authority of the Underwriting Manager during the pendency of any dispute regarding the cause for termination of said authority. E. ADDENDUM ONE 1. Type of Business Covered is amended by adding the following: The maximum policy period is one (1) year. 8. Policy Cancellation Provisions is amended by adding the following: The Company shall have the right to cancel or nonrenew any policy of insurance issued pursuant to this Agreement subject only to policy provisions and applicable state laws and regulations concerning those actions. -2- IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have caused this Addendum Six to be executed in triplicate this 20th day of April, 1995. The Continental Insurance Company By: /s/ Renate Renfro ----------------------------------- Witnessed: /s/ David Wachtel ---------------------------- USBenefits Insurance Services, Inc. By: /s/ John T. Grush ----------------------------------- John T. Grush, President and Chief Executive Officer Witnessed: /s/ Jose A. Velasco ---------------------------- Jose A. Velasco, Senior Vice President, Secretary and General Counsel -3- ADDENDUM SIX to MANAGEMENT AGREEMENT NO.1 between USBENEFITS INSURANCE SERVICES, INC. and THE CONTINENTAL INSURANCE COMPANY AMENDED PROVISIONS THIS AGREEMENT is hereby amended for any and all business covered by this Agreement in the State of Montana as set forth below. The parties ratify and confirm all of the other provisions of this Agreement executed by the parties effective as of January 1, 1994. A. Section 3 - DUTIES AND RESPONSIBILITIES OF THE UNDERWRITING MANAGER Add as 3.10: The Underwriting Manager shall not (a) appoint any producer without ensuring the Company that the producer it appoints is lawfully licensed to transact the type of insurance which is the subject of this Agreement; (b) permit any of its subproducers to serve on the Company's board of directors; or (c) jointly employ an individual who is also employed with the Company. B. ADDENDUM ONE 8. Policy Cancellation Provisions is amended by the addition of the following: The Company may cancel or decline to renew any policy of insurance, as provided by law. C. ADDENDUM FOUR is amended as follows: 2. Crime Policy The Underwriting Manager shall maintain a crime policy covering any losses which may occur as a result of the Underwriting Manager's misuse or improper investment of funds held by the Underwriting Manager on behalf of the Company in an amount equal to the greater of $100,000 or five percent (5%) of the gross direct written premium underwritten by the Underwriting Manager on behalf of the Company. IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have caused this Addendum Six to be executed in duplicate this 14th day of June, 1995. The Continental Insurance Company By: /s/ Glenn A. Mateja ---------------------------------- Witnessed: /s/ M. A. McCarney ------------------------------ USBenefits Insurance Services, Inc. By: /s/ John T. Grush ---------------------------------- Witnessed: /s/ Jose A. Velasco ------------------------------ ADDENDUM SIX ------------ to -- MANAGEMENT AGREEMENT NO. 1 -------------------------- between ------- USBENEFITS INSURANCE SERVICES, INC. ----------------------------------- and --- THE CONTINENTAL INSURANCE COMPANY --------------------------------- AMENDED PROVISIONS ------------------ STATE of MISSOURI ----------------- THIS AGREEMENT is hereby amended for any and all business covered by this Agreement in the State of Missouri as set forth below. The parties hereto ratify and confirm all of the other provisions of this Agreement executed by the parties effective as of January 1, 1994. Attached hereto is a Managing General Agent's Contract ("Contract") between The Continental Insurance Company ("Insurer") and USBenefits Insurance Services, Inc. ("MGA") dated June 21, 1995 for the State of Missouri in the form prescribed by the State of Missouri Department of Insurance which complies with the requirements of the Missouri Managing General Agents Act (Sections 375.147 to 375.153, RSMo). The parties hereto agree that the terms and conditions of the Contract shall apply only with respect to business written in the State of Missouri and that this Agreement shall continue to govern the terms and conditions of the relationship between The Continental Insurance Company and USBenefits Insurance Services, Inc. If there is a conflict between the terms and conditions of the Contract and this Agreement, the latter shall control unless a contrary result is clearly required by applicable Missouri law, in which event such result shall be applicable only with respect to Missouri business. IN WITNESS WHEREOF, the parties hereto by their respective duly authorized officers have caused this Addendum Six to be executed in duplicate this 21st day of June 1995. The Continental Insurance Company USBenefits Insurance Services, Inc. By: /s/ Glenn A. Mateja By: /s/ John T. Grush --------------------------------- --------------------------------- Witness: /s/ M. A. McCarney Witness: /s/ Jeffrey T. Gunckick ---------------------------- ---------------------------- 2 [SEAL STATE OF MISSOURI APPEARS DEPARTMENT OF INSURANCE P.O. BOX 690 HERE] MANAGING GENERAL AGENTS (MGA) CONTRACT JEFFERSON CITY, MO 65102-0690 - -------------------------------------------------------------------------------- MANAGING GENERAL AGENT'S CONTRACT Article - Preamble - -------------------------------------------------------------------------------- (1) The parties to this agreement are: - -------------------------------------------------------------------------------- (a) THE INSURER The Continental Insurance Company ("Insurer") - -------------------------------------------------------------------------------- and - -------------------------------------------------------------------------------- (b) MANAGING GENERAL AGENT OR MGA USBenefits Insurance Services, Inc. ("MGA") - -------------------------------------------------------------------------------- (2) The promises and agreements made by the insurer in this managing general agent's contract are made in consideration of the promises and agreements made by the managing general agent. The promises and agreements made by the managing general agent in this managing general's contract are made in consideration of the promises and agreements made by the insurer. (3) This written managing general agent's contract contains the entire agreement of the insurer and the managing general agent. (4) This managing general agent's contract will not become effective until signed by the insurer and the managing general agent, and is filed with and approved by the director of insurance of the state of Missouri. Article II - Mandatory Provisions Not withstanding any provision in this managing general agent's contract or any other written, oral or parol agreement to the contrary, the following provisions are binding upon the insurer and the managing general agent: (1) The insurer may terminate the contract for cause upon written notice to the managing general agent. The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination. Nothing in this section is intended to relieve the managing general agent or insurer of any other contractual obligation; (2) The managing general agent will render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis; (3) All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity in a segregated account in a bank which is a member of the Federal Reserve System. This account shall be used for all payments on behalf of the insurer and for no other purpose. The managing general agent may retain no more than three months' estimated claim payments and allocated loss adjustment expenses; (4) Separate records of business written by the managing general agent shall be maintained. The insurer shall have access and right to copy all accounts and records related to its business in a form usable by the insurer and the director or insurance of the state of Missouri shall have access to all books, bank accounts and records of the managing general agent in a form usable to the director. Such records shall be retained for a minimum of three years following the transactions to which the records relate; (5) This contract may not be assigned in whole or in part by the managing general agent. (6) Appropriate underwriting guidelines are established in Article III of this managing general agent's agreement; - -------------------------------------------------------------------------------- MO 375-0038(8/91) - -------------------------------------------------------------------------------- (7) The insurer shall retain the right to cancel or not renew any policy of insurance subject to the applicable laws and regulations concerning the cancellation and nonrenewal of insurance policies; (8) This managing general agent's contract [X] does [ ] does not permit the managing general agent to settle claims on behalf of the insurer. If this managing general agent's contract permits the managing general agent to settle claims on behalf of the insurer. (a) All claims must be reported to the insurer in a timely manner. (b) A copy of the claim will be sent to the insurer at its request or as soon as it becomes known that the claim: a. Has the potential to exceed $24,000 or exceeds the limit set by the insurer, ($ 50,000), whichever is less; b. Involves a coverage dispute; c. May exceed the managing general agent's claims settlement authority; d. Is open for more than six months; or e. Is closed by payment of $24,000 or the amount set by the insurer, whichever is less. (c) All claim files will be the joint property of the insurer and managing general agent. However, upon an order of liquidation of the insurer such files shall become the sole property of the insurer or its estate, but the managing general agent shall have reasonable access to and the right to copy the files on a timely basis; (d) Any settlement authority granted to the managing general agent may be terminated for cause upon the insurer's written notice to the managing general agent or upon the termination of the contract. The insurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination. Nothing in this paragraph is intended to relieve the managing general agent or insurer or any other contractual obligation. (e) Article III contains other provisions relating to the settlement of claims by the managing general agent on behalf of the insurer. (9) Electronic claims files [ ] are [X] are not in existence. If such files are in existence, Article III of this managing general agent's contract will contain provisions which govern the timely transmission of the data by the managing general agent to the insurer. (10) This contract [ ] does [X] does not provide for a sharing of interim profits by the managing general agent. If this contract does provide for such sharing, then: (a) provisions for such sharing are described in Article III of this managing general agent's contract. (b) If the managing general agent has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits will not be paid to the managing general agent until one year after they are earned for property insurance business and five years after they are earned on casualty business and not until the profits have been verified pursuant to the Missouri Managing General Agents Act. (11) The managing general agent shall not: (a) bind reinsurance or retrocessions on behalf of the insurer. The managing general agent (however, [ ] may [X] may not) bind facultative reinsurance contracts pursuant to obligatory facultative agreements. If the managing general agent is permitted to bind facultative reinsurance contracts, this managing general agent's contract will contain in Article III reinsurance underwriting guidelines, including, for both reinsurance assumed and ceded, a list of reinsurers with which such automatic agreements are in effect, the coverages and amounts or percentages that may be reinsured and commission schedules; - -------------------------------------------------------------------------------- MO 375-0038 (8/91) - -------------------------------------------------------------------------------- (b) Commit the insurer to participate in insurance or reinsurance syndicates; (c) Appoint any producer without assuring that the producer is lawfully licensed to transact the type of insurance for which he is appointed; (d) Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent of the insurer's policyholder's surplus as of December 31 of the immediately preceding calendar year. (e) Collect any premium from a reinsurer or commit the insurer to any claim settlement with a reinsurer; without prior approval of the insurer. If prior approval is given, a report must be promptly forwarded to the insurer; (f) Permit its subproducer to serve on its board of directors; (g) Jointly employ an individual who is employed with the insurer; or (h) Appoint a subordinate managing general agent. Article III - Optional Provisions (1) The following are underwriting guidelines for the managing general agent (see Article II(6)): - -------------------------------------------------------------------------------- (A) THE MAXIMUM ANNUAL PREMIUM VOLUME $200,000,000 of gross written premiums per calendar year. - -------------------------------------------------------------------------------- (B) THE BASIS OF THE RATES TO BE CHARGED Rating Guidelines are set forth in the MGA's Rating Manual on file with the Insurer. The MGA shall promptly advise & provide the Insurer with any amendment or modification to such Rating Manual. - -------------------------------------------------------------------------------- (C) THE TYPES OF RISKS WHICH MAY BE WRITTEN Medical stop-loss business, also known as excess or stop-loss insurance. - -------------------------------------------------------------------------------- (D) MAXIMUM LIMITS OF LIABILITY See Attached. - -------------------------------------------------------------------------------- (E) APPLICABLE EXCLUSIONS Excluded self-insured health benefit plans: (1) Multiple Employer Welfare Association (MEWAs); (2) Multiple Employers Trusts (METs); and (3) Associations - -------------------------------------------------------------------------------- (F) TERRITORIAL LIMITATIONS The United States of America, including the District of Columbia, but excluding U.S. territories and possessions. - -------------------------------------------------------------------------------- (G) POLICY CANCELLATION PROVISIONS All policies issued by the MGA on behalf of the Insurer shall adhere to the cancellation provisions contained in the policies, except for any amendatory cancellation endorsements which may be required by the insurance laws of the states where the policies are issued. - -------------------------------------------------------------------------------- (H) THE MAXIMUM POLICY PERIOD 12-month period. - -------------------------------------------------------------------------------- (I) OTHER UNDERWRITING GUIDELINES None. --------------------------------------------------------------------------- --------------------------------------------------------------------------- - -------------------------------------------------------------------------------- MO 375 0038 (8/91) - -------------------------------------------------------------------------------- (2) The following provisions govern the settlement of claims by the managing general agent on behalf of the insurer (see Article II (8)(c): All claim files will be the joint property of the Insurer and the MGA. --------------------------------------------------------------------------- However, upon an order of liquidation of the Insurer such files shall become the sole property of the Insurer or its estate, but the MGA shall have reasonable access to and the right to copy the files on a timely basis. --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- (3) The following provisions govern the timely transmission of data in electronic claims files by the managing general agent to the insurer (see Article II (9)): Where electronic claims files are in existence, any electronic transmission --------------------------------------------------------------------------- of claims data shall be submitted by the MGA to the Insurer on a timely basis no later than fifteen (15) days after the end of each calendar month. --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- (4) The following provisions govern the sharing of interim profits by the managing general agent (see Article II (10)): If this Agreement is ever amended to provide for a sharing of interim profits --------------------------------------------------------------------------- by the MGA, and the MGA has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, --------------------------------------------------------------------------- or in any other manner, interim profits will not be paid to the MGA until one (1) year after they are earned for property insurance business and five (5) years after they are earned on casualty business, and not until the profits --------------------------------------------------------------------------- have been verified. --------------------------------------------------------------------------- --------------------------------------------------------------------------- - -------------------------------------------------------------------------------- MO 375-0038 (8/91) (5) The following provisions govern reinsurance underwriting guidelines, for both reinsurance assumed and ceded, for the binding by the managing general agent of facultative reinsurance contracts (see Article II (11)(b)): The MGA shall not commit the Insurer to participate in insurance or ---------------------------------------------------------------------------- reinsurance syndicates. ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (a) list of reinsurers with which obligatory facultative reinsurance agreements are in effect: None. ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (b) the coverages and amounts or percentages that may be reinsured: Not Applicable. ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- MO 375-0038 (8/91) - -------------------------------------------------------------------------------- (c) commission schedules: Not Applicable. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (d) other provisions relating to underwriting guidelines for facultative reinsurance: Not Applicable. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Article IV - Other Provisions (1) The provisions of this Article IV are in addition to and not in lieu of the provisions of Articles I, II, and III. The provisions of Articles I, II and III shall be construed wherever possible as not in conflict and not in place of this Article IV, but as minimum requirements in addition to this Article IV only in the event of irreconcilable conflict, the provisions of Articles I, II and III will prevail over the provisions of this Article IV. None. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ================================================================================ SIGNATURE DATE Glenn A. Mateja June 21, 1995 - -------------------------------------------------------------------------------- NAME TITLE /s/ Glenn A. Mateja Group Vice President - -------------------------------------------------------------------------------- INSURER The Continental Insurance Company ("Insurer") ================================================================================ SIGNATURE DATE /s/ John T. Grush June 21, 1995 - -------------------------------------------------------------------------------- NAME TITLE John T. Grush President & Chief Executive Officer - -------------------------------------------------------------------------------- MANAGING GENERAL AGENT USBenefits Insurance Services, Inc. ("MGA") - -------------------------------------------------------------------------------- MO 375-0038 (8/91) ATTACHMENT ---------- ITEM (D) - Maximum Limits of Liability - -------- (1) Specific excess insurance: Reimbursement is limited to 100% of payments ------------------------- made by the insured in excess of the specific attachment point specified in the policy, subject to a specific lifetime maximum of $2,000,000; and (2) Aggregate excess insurance: Reimbursement is limited to 100% of payments -------------------------- made by the insurer in excess of the annual aggregate attachment point specified in the policy, subject to a maximum of $2,000,000 per agreement year. ADDENDUM SEVEN -------------- to -- MANAGEMENT AGREEMENT NO. 1 between USBENEFITS INSURANCE SERVICES, INC., a California corporation having its principal offices at 650 Town Center Drive, suite 1600 Costa Mesa, CA 92626 (herein referred to as the "Underwriting Manager") and THE CONTINENTAL INSURANCE COMPANY, (one of the CNA Insurance Companies) a New Hampshire corporation having its principal offices at 180 Maiden Lane, New York, New York 10038 (herein referred to as the "Company") THIS AGREEMENT is hereby amended as set forth below, such amendments to be effective as of May 10, 1995. The parties hereto ratify and confirm all of the other provisions of this Agreement executed by the parties effective as of January 1, 1994. 1. Section 1 amended to read in full as follows: Section 1 - SCOPE OF AGREEMENT The Company appoints the Underwriting Manager as the exclusive Underwriting Manager of the Company with the authority to solicit, receive, negotiate, underwrite, accept and manage medical stop-loss insurance business (which business is defined in the Underwriting and Rating Guidelines, Methods and Procedures ["Underwriting Guidelines"] attached as Addendum One hereto, and is referred to herein as "Medical Stop-Loss Business"), subject to its compliance with all of the terms of this Agreement. The Underwriting Manager acknowledges and agrees that as of the date hereof other members of The CNA Insurance Companies group are involved in the writing of medical stop-loss business on a direct basis, and that activities such as those in existence on the date hereof shall not be deemed to be a violation by the Company of the terms and conditions of this Agreement. This Agreement is composed of Sections 1 through 20 and Addenda One through Seven. The terms of the Sections and Addenda shall determine the rights and obligations of the parties. The Underwriting Manager shall solicit, receive, negotiate, underwrite, accept and manage Medical Stop-Loss Business, subject to all the terms of this Agreement. The Underwriting Manager will not act as a producer or provide marketing or insurance management services for any other insurance company with respect to Medical Stop-Loss Business, unless it has first obtained the prior written approval of the Company. The Company agrees not to appoint any other party to solicit, receive, underwrite, accept or manage Medical Stop-Loss Business on its behalf without the prior written approval of the Underwriting Manager. A willful violation of this provision by one party is grounds for immediate termination of the Agreement by the other party. 2. Section 2 is amended to read in full as follows: Section - PARTIES TO THE AGREEMENT This Agreement is solely between the Company and the Underwriting Manager. No third party shall have any rights or benefits under this Agreement, unless otherwise provide herein. Except as permitted by this Agreement and with respect to the activities of the CNA Insurance Companies as noted in Section 1 above, the Company and the Underwriting Manager agree that neither party shall, without prior notice to the other party, take any action to assist or facilitate in the solicitation, negotiation, underwriting, acceptance or management of Medical Stop-Loss Business during the term hereof by an affiliate, parent or controlling person (as such terms are defined in the Securities Exchange Act of 1934) of such party. A willful violation of this provision by one party is grounds for immediate termination of the Agreement by the other party. The Underwriting Manager shall not delegate any authority granted by this Agreement to any other duly licensed party without the prior written approval of the Company subject to a contract in a form acceptable to the Company. The Underwriting Manager shall be responsible for all acts or omissions of any delegee and shall remain responsible for performance of its duties under this Agreement. It shall supervise all activities performed by any delegee on behalf of the Underwriting Manager. 3. Section 3.4 is deleted in its entirety. 4. Paragraph (i) of Section 3.9 is amended to read in its entirety as follows: i. Insert any advertisements representing the Company in any publications, or issue any circular or paper referring to the Company, its logo, or any program written thereunder unless such advertisement, circular or paper is first reviewed and approved in writing by the Company. If the Company shall be subject to any loss or expense arising out of such unauthorized action or statement, the Underwriting Manager shall indemnify the Company for all costs and damages arising therefrom. 5. Section 10.7 is amended in its entirety as follows: 10.7 (a) The Company agrees that during the term of this Agreement, and for a period of time following the termination of this Agreement, it will not, directly or indirectly, for itself or for others, call upon, solicit, take away, quote or offer coverage to any customer of the Underwriting Manager. The period of time during which this paragraph applies shall be: (i) Termination as of December 31, 1995 - Twenty Four (24) months; (ii) Termination as of December 31, 1996 - Eighteen (18) months; or (iii) Termination as of December 31, 1997, or later - Twelve (12) months. (b) Furthermore, the Company agrees that, during the term of this Agreement and for the period of time specified in paragraph 10.7 (a) above, it will not use any confidential information, trade secrets, or property of the Underwriting Manager acquired by the Company through its relationship with the Underwriting Manager to compete with the Underwriting Manager. If following termination of this Agreement the Underwriting Manager determines to discontinue its operations in the Medical Stop-Loss Business, it will promptly notify the Company of such decision and thereafter, the provisions of this Section 10.7 and of Section 10.4 hereof shall be null and void and of no further effect. IN WITNESS WHEREOF, the parties hereto by their repective duly authorized officers have caused this Addendum Seven to be executed in duplicate this 9th day of August, 1995. The Continental Insurance Company By: /s/ Glenn A. Mateja -------------------------- Glenn A. Mateja, Group Vice President Witnessed: /s/ Michael A. McCarney ------------------------------- Michael A. McCarney, Assistant Secretary USBenefits Insurance Services, Inc. By: /s/ John T. Grush -------------------------- John T. Grush, President and Chief Executive Officer Witnessed: /s/ Jose A. Velasco ------------------------------- Jose A. Velasco, Senior Vice President, Secretary and General Counsel EX-10.26 6 INCENTIVE COMPENSATION PROGRAM EXHIBIT 10.26 [LOGO APPEARS HERE] US FACILITIES CORPORATION INCENTIVE COMPENSATION PROGRAM US FACILITIES CORPORATION ("the Company") has established an Incentive Compensation Program ("Program") for its employees. Only cash bonuses will be paid under the program, and only with respect to calendar year periods, each calendar year to be known herein as an "Incentive Period". This Program is completely discretionary, no bonus is vested or earned. Set forth below are the terms and conditions which it is anticipated will apply if the Company decides to pay a bonus while this Program is in effect. 1. EARNINGS TARGET. The payment of bonuses under this Program is predicated on the Company meeting a net earnings target for the Incentive Period. The net earnings target shall be adopted by the Compensation Committee of the Company's Board of Directors ("Compensation Committee"). If the net earnings target is not achieved the Compensation Committee, in its sole discretion, may nevertheless declare a bonus payable under this Program, and shall identify the persons who should receive such bonus and the amount of bonus to be paid to such persons. "Net earnings" means net earnings before extraordinary items and bonuses, as reported in the Company's audited year- end consolidated financial statements. 2. PARTICIPATION. Participation in this Program is open to certain employees of the Company. The Program consists of separate components ("Components") identified in Exhibit "A" attached hereto and incorporated herein. Employees are eligible to participate in the Component which describes their position with the Company, provided they meet all eligibility criteria of the Program and the Component applicable to them. A bonus will be paid to eligible participants for an Incentive Period on or before March 15 of the subsequent year. Eligible participants must be regular employees of the Company on the date the bonus is paid, not under written disciplinary action, and must have been employed in a designated eligible position with at least six months of continuous service during the Incentive Period. 3. EFFECTIVE DATE. This Program supersedes any and all previous incentive or bonus programs. It is effective January 1, 1995 and, subject to the Company's rights as described below to amend or modify it, it is anticipated that the Program will remain in effect until the Company decides to discontinue the Program. 4. ADMINISTRATION. This Program is administered by the Compensation Committee which has the sole authority and discretion to interpret the Program and to make or nullify any rules and procedures necessary for the Program's administration. Any determination of the Compensation Committee concerning the Program will be final and binding on all participants. The Compensation Committee may delegate certain of its administrative functions to the Company's Chief Executive Officer ("CEO"). 5. CHANGES OR DISCONTINUANCE. The Company reserves the right, in its sole discretion and without advance notice, to add, amend, modify or discontinue any of the terms or conditions of the Program at any time, or to terminate the Program in its entirety. 6. PAYROLL TAXES. Program bonus payments will be reported as compensation in the year paid and will be subject to withholding for required income and other applicable taxes. The actual tax liability or any such payments received will be the sole responsibility of the participants. 7. NEW HIRES, PROMOTIONS AND TRANSFERS. Participants who are not employed by the Company at the beginning of an Incentive Period will receive a pro-rated award based on length of employment, except that any person employed by the Company after July 1 will not be eligible for an incentive bonus for that Incentive Period. An eligible participant who is promoted or transferred during an Incentive Period from a position covered by one Component to a position covered by another Component will participate in each Component on a pro-rata basis. 8. LEAVE OF ABSENCE. If an eligible participant is on leave of absence for a period of ninety (90) days or more during an Incentive Period, his or her bonus for the Incentive Period will be pro-rated so that no bonus shall be awarded for the time the participant is on leave. 9. NO AGREEMENT OF EMPLOYMENT. This Program does not, and shall not be construed to give any participant the right to be retained in the employ of the Company, nor does this Program interfere with, nor shall it be construed to interfere with, the Company's right to discharge any employee at any time, with or without advance notice or cause. This Program does not alter, and shall not be construed to alter, the participant's at-will employment relationship with the Company. 2 Exhibit A-1 HOLDING COMPANY EXECUTIVE INCENTIVE COMPENSATION COMPONENT Participation in this Component is limited to persons who hold any of the following positions in US Facilities Corporation: President and Chief Executive Officer Executive Vice President Senior Vice President Vice President Assistant Vice President Controller The amount of bonus payable to a participant will depend on the extent to which the Company meets its net earnings target. If the net earnings target is met the participant's bonus would be calculated at the target level for the participant as indicated on Exhibit A-1.1 hereto, but the award can be adjusted upward or downward to reflect personal performance, achievement of individual job-related objectives and/or qualitative contributions to the Company. The Company's CEO shall evaluate each participant's achievement of such job-related objectives and/or qualitative contributions. 3 Exhibit A-1.1 AWARD STRUCTURE
POSITION ANNUAL TARGET - ------------------------------------------------------------------- Chair, President & CEO 40% - ------------------------------------------------------------------- SVP (USRE) 35% - ------------------------------------------------------------------- SVP (USBenefits) 35% - ------------------------------------------------------------------- EVP, Corp. Finance 35% - ------------------------------------------------------------------- SVP, Treasurer & CFO 30% - ------------------------------------------------------------------- SVP, Secretary & General Counsel 30% - ------------------------------------------------------------------- VP, Human Resources 25% - ------------------------------------------------------------------- VP, IS 25% - ------------------------------------------------------------------- VP, Government Affairs 25% - ------------------------------------------------------------------- AVP, Controller 20% - ------------------------------------------------------------------- Controller 20% - ------------------------------------------------------------------- AVP, Associate General Counsel 20% - -------------------------------------------------------------------
Incentive awards may be below or above the target depending on management and the Board Compensation Committee's evaluations of Company and individual performance against pre-established criteria. 4 Exhibit A-2 OFFICER/MANAGER/PROFESSIONAL INCENTIVE COMPENSATION COMPONENT The CEO, with input from the participant's supervisor will determine the amount of bonus payable to each eligible participant. The CEO may award to each participant a bonus of up to 20% of such participant's base earnings for the Incentive Period. In awarding the bonus the CEO will take into account each participant's performance. Performance will be tied to achievement of specific job-related objectives as evaluated by the participant's supervisor who will report his or her findings to the CEO. 5 Exhibit A-3 TECHNICAL/CLERICAL INCENTIVE COMPENSATION COMPONENT The Technical/Clerical Incentive Compensation Component is purely discretionary on the part of the CEO. In the event a bonus is declared, participants will be eligible to receive a bonus equal to 4% of their base earnings for the Incentive Period. 6 Exhibit A-4 US BENEFITS UNDERWRITING DEPARTMENT INCENTIVE COMPENSATION COMPONENT Bonus awards under the US Benefits Underwriting Department Incentive Compensation Component are tied to underwriting results for the medical stop- loss business measured by attainment of incurred risk loss ratio ("Loss Ratio") and premium growth goals by each of the US Benefits Underwriting Department's underwriting regions ("Region"). The Loss Ratio will be measured on an "accident year" basis and determination of bonus payments will not be made until two years after the close of each accident year. Thus, for example, calculations for bonuses payable in 1994 will be based on the Loss Ratio for the 1992 accident year. Participation in this Component is limited to the following positions in the US Benefits Underwriting Department: Senior Vice President Assistant Vice President Senior Underwriter Underwriter Incentive awards under this Component will be calculated with respect to each Region, and the maximum amount which participants in any Region can receive will be based on the Loss Ratio for the Region in accordance with the following schedule:
Accident Year Loss Ratio Maximum Incentive Amount ------------------------ ------------------------ 98% but less than 100% $10,000 96% but less than 98% $15,000 94% but less than 96% $20,000 92% but less than 94% $30,000 Less than 92% $40,000
The Maximum Incentive Amount available for distribution to participants of a Region that reduces its Loss Ratio by ten (10) percentage points or more from the previous accident year will be increased by an additional $10,000, provided that the Loss Ratio for the Region is below 100%. However, if the Region fails to increase its production of stop-loss premium by at least 1.2 times the preceding calendar year's total premium production, the Region's Maximum Incentive Amount will be reduced by .5% for each $100,000 in premium by which the Region fails to achieve such premium growth goal. 7 Participants will be eligible for a bonus as follows: Position Bonus -------- ----- Vice President 50% of the Incentive Amount earned by each Region, up to a maximum of $100,000. Assistant Vice President The Incentive Amount earned by the Region in which he or she works. Senior Underwriter and Underwriter Up to 20% of the Incentive Amount earned by the Region in which he or she works. Examples of award calculations are set forth on Exhibit A-4.1 hereto. 8 Exhibit A-4.1 US BENEFITS UNDERWRITING DEPARTMENT INCENTIVE COMPENSATION COMPONENT Example of Award Calculations INDIVIDUAL REGIONS
Loss Ratio* Maximum Incentive Amount ----------- ----------------------- 98% but less than 100% $10,000 96% but less than 98% $15,000 94% but less than 96% $20,000 92% but less than 94% $30,000 Less than 92% $40,000
*Covers all reported claims, reserve changes, claim completion factor including IBNR. Position Incentive Award -------- --------------- Vice President 50% of Incentive Amount earned by each region Assistant Vice President According to payout scale for respective region Senior Underwriter Up to 20% of Incentive Amount earned in respective region Underwriter Up to 20% of Incentive Amount earned in respective region Growth Incentive Performance in Region Adjustment Award --------------------- ---------------- 99% Loss Ratio $10,000 10% reduction from previous accident year +$10,000 ------- $20,000 Total Premium Growth less than 120% of previous calendar year $20,000 x .05 - 1,000 TOTAL INCENTIVE EARNED IN REGION $19,000 9 Exhibit A-5 USBENEFITS CLAIMS DEPARTMENT INCENTIVE COMPENSATION COMPONENT The USBenefits Claims Department Incentive Compensation Component is based on the performance of the USBenefits Claims Department Auditors. Individual performance is measured on achievement of specific job-related objectives. Bonus payment is purely discretionary on the part of the CEO with input from the supervisor. Participation in this Component is limited to the following positions in the USBenefits Claims Department: Vice President Assistant Manager Supervisors Claims Auditors Additional Eligibility Requirements for Claims Auditors - ------------------------------------------------------- In order to become eligible to participate in the USBenefits Claims Department Incentive Compensation Component, a Claims Auditor must meet the following minimum criteria during an entire calendar quarter: . A quarterly average accuracy ratio of 98% on audited files. . A quarterly average of 25 claims each week. . No unpaid absences. Incentive points will be calculated quarterly and averaged for each calendar year. 10 Participants will be eligible for a bonus as follows: Position Bonus -------- ----- Vice President Up to 180% of the average incentive award earned by all Claims Auditors. Assistant Manager Up to 120% of the average incentive award earned by all Claims Auditors Supervisors Up to 110% of the average incentive award earned by their respective Claims Auditors Claims Auditors Up to 15% of year-end base earnings for the Incentive Period Examples of points, earnings schedules and award calculations are set forth on Exhibit A-5.1 hereto. 11 Exhibit A-5.1 USBENEFITS CLAIMS DEPARTMENT INCENTIVE COMPENSATION COMPONENT Example of Award Calculations EARNINGS SCHEDULE INCENTIVE AREAS Quality = 7.5 Points (50%) Quantity = 3.75 Points (25%) Dependability = 3.75 Points (25%) Maximum Available Incentive - 15 Points *Each point is equal to 1% of year-end base earnings for the Incentive Period. QUANTITY
Performance Groups* Points Earned Top 20% 3.75 Second 20% 3.00 Third 20% 2.25 Fourth 20% 1.50 Bottom 20% .75
QUALITY Claims Auditors can earn 3.75 points for every 1% above the minimum 98% quality rating. A penalty of .5 points will be subtracted for each full increment of $1,000 in check errors. More than three check errors will disqualify all quality points for that quarter. DEPENDABILITY A Claims Auditor who has no unpaid absences during the year will be awarded 3.75 points. 12 EXAMPLE OF AWARD CALCULATION CLAIMS AUDITOR
Performance Factor Actual Results Points Earned - ------ -------------- ------------- Quality: Quality Rating 99.4% 7.5 Points Less Minimum Percent 98.0% ----- 1.4% Claim Payment Penalty 0 (i.e., no check errors) Quality Points Earned: 1.4 x 3.75 = 5.25 Quantity: 3.75 Points Performance During Quarter: Second 20% = 3.00 Dependability: 3.75 Points No Unpaid Absences 3.75 Total Earned 12.00
Assume: Claims Auditor averages 12.00 points each quarter during calendar year. Annual incentive award of $3,600 (12% x $30,000) 13 Exhibit A-6 USF RE INSURANCE COMPANY UNDERWRITING DEPARTMENT INCENTIVE COMPENSATION COMPONENT The USF RE INSURANCE COMPANY Underwriting Department Incentive Compensation Component is based on individual performance of participants. Individual performance is measured by achievement of specific job-related objectives based on an evaluation by the participant's supervisor who will make the appropriate recommendation to the Company's CEO for bonus consideration. Four specific areas will be considered in evaluating each person's performance: 1. Individual Performance Goals: Underwriting, production, administration and professional development goals. 2. USF RE Audit Results: Both internal annual underwriting audits and audits performed by USF RE's property and casualty retrocessionaires. Audits focus on adherence to USF RE underwriting guidelines, quality of risk selection, and terms and conditions quoted. Internal audits are completed annually and are approved by: Property-Senior Vice President, Executive Vice President and President and Company CEO. 3. USF RE Growth: Property and Casualty performance to plan, adjusted for market environment, as assessed by USF RE's President and Executive Vice President. 4. USF RE Underwriting Profits: Defined as Property and Casualty combined ratio, excluding medical stop loss results. The CEO will determine the amount of bonus payable to each eligible participant. The CEO may award to each participant a bonus of up to 40% of each participant's base earnings for the subject fiscal year. Participation in this Component is limited to the following positions: Executive Vice President Senior Vice President Vice President, Underwriting Assistant Vice President, Underwriting Senior Underwriter Underwriter The Payment Schedule and an example of an award calculation are set forth in Exhibit A-6.1 hereto. 14 Exhibit A-6.1 USF RE INSURANCE COMPANY UNDERWRITING DEPARTMENT INCENTIVE COMPENSATION COMPONENT Example of Award Calculations Combined Ratio* Percentage of Incentives 95% or lower 120% 97.5% or lower 110% 100% or lower 100% 102.5% or lower 90% 105% or lower 80% 107.5% or lower 70% 107.6% or lower At Corporate CEO's discretion *Combined ratio is defined as the incurred loss ratio for all lines written except medical stop-loss, plus the expense and commission ratios for those lines. ASSUMPTIONS Current Annual Base Salary: $100,000 Target Incentive: 30% of base Salary
Actual Performance: Individual Performance Goals: Achieved -- 80% USF RE Audit Results: Compliance at -- 90% USF RE Growth: Achieved -- 70% USF RE UW Profit: 1992 Combined Ratio of 104% -- 80% -- Average 1992 Performance 80% USF RE UW Profit: 1996 Combined Ratio of 107% 70%
AWARD CALCULATION
80% x 30% = 24% of Annual Base Salary or $24,000
15 Exhibit A-7 USBENEFITS MARKETING DEPARTMENT INCENTIVE COMPENSATION COMPONENT Bonus awards under the USBenefits Marketing Department Incentive Compensation Component are tied to new business production from all sources modified by retention and loss ratio rates for the Incentive Period. Participation in this Component is limited to the following positions in the USBenefits Marketing Department: Senior Vice President Vice President Assistant Vice President Incentive awards under this Component will be calculated with respect to each region, based upon goals set for each region for each Incentive Period. The goals set for the 1995 Incentive Period are as follows:
REGION REGIONAL NEW BUSINESS - ------ --------------------- ANNUALIZED PREMIUM GOALS ------------------------ Products: Medical Stop-Loss, Life Product Administered by USBenefits, and Provider Excess A $10,000,000 B $10,000,000 D $10,000,000
The Incentive award payable is based upon the new business production from all sources modified by the retention and loss ratio rates as follows: NEW BUSINESS PRODUCTION ALL SOURCES - ----------------------------------- Percent of Goal Percent of 1995 Paid Base Salary - --------------- -------------------------------- 90% - 94.9% 5% 95% - 99.9% 10% 100% - 104.9% 15% 105% - 109.9% 20% 110% - 119.9% 25% 16 Above 120% - 1% of salary per each, full 1% of additional production. Overall maximum Bonus with modifiers is 30% of salary. MODIFIERS OF BONUS EARNED - ------------------------- 1) Retention of Policyholders Modifier to Bonus -------------------------- ----------------- less than 75% 90% 75 - 79.9% 100% 80 - 81.9% 110% 82% - up 115% 2) Loss Ratio Modifier to Bonus ---------- ----------------- Greater than 72% 90% 71.9 - 70% 95% 69.9 - 68% 100% less than 68% 110% The bonus award for the Senior Vice President of Marketing will be determined by the same method described above, based on a combination of results for all Regions. 17 Exhibit A-8 INCENTIVE COMPENSATION PLAN --------------------------- USF INSURANCE COMPANY The USF Insurance Company Incentive Compensation Component is based on individual performance of participants and the attainment of Company and Corporate goals. Individual performance is measured by achievement of specific job related objectives based on an evaluation by the participant's supervisor who will make the appropriate recommendation to the Company's CEO for consideration. The four areas to be considered and the relative weight placed on each in evaluating each person's performance are: Weight 1. Combined Ratio to Plan. 30% 2. Gross Written Premium Growth to Plan. 30% 3. Individual Performance Goals to Plan. 20% 4. Producer Expansion to Plan. 20% The CEO will determine the amount of bonus payable to each eligible participant. The CEO may award to each participant a bonus up to 40% of each participant's base salary at the time of the award. Participation in this Component is limited to the following positions: Position Target Bonus Percent President 35% Vice President, Assistant Vice President 30% Underwriter 25% Controller 20% 18 Exhibit A-8.1 EXAMPLE USFIC achieves Plan Combined Ratio. 100% X 30% weight = 30% Written premium growth was 80% of Plan. 80% X 30% weight = 24% Underwriter achieved 90% of individual performance goals. 90% X 20% weight = 18% Producer expansion equals 70% of Plan. 70% X 20% weight = 14% ------------- 86% Underwriter Target Bonus Percent of 25% multiplied by 86% equals the Underwriter's bonus payout of 21.5% of base salary. 19 EX-11 7 COMPUTATION OF EARNINGS PER SHARE EXHIBIT 11 US FACILITIES CORPORATION AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE The computation of per share income is based upon the weighted average number of common and common equivalent shares outstanding during each year ended December 31, as follows:
(000 OMITTED, EXCEPT FOR PER SHARE DATA) --------------------- 1995 1994 1993 ------- ------ ------ Net income.............................................. $13,854 $6,238 $6,767 ======= ====== ====== Weighted average shares outstanding during the period... 5,602 5,810 5,712 Common stock equivalent shares.......................... 126 196 228 ------- ------ ------ Common and common stock equivalent shares outstanding for purposes of calculating income per share........... 5,728 6,006 5,940 Incremental shares to reflect full dilution............. 87 -- 38 ------- ------ ------ Total shares for purpose of calculating fully diluted income per share....................................... 5,815 6,006 5,978 ======= ====== ====== Primary net income per share............................ $ 2.42 $ 1.04 $ 1.14 ======= ====== ====== Fully diluted net income per share...................... $ 2.38 $ 1.04 $ 1.13 ======= ====== ======
EX-13 8 SELECTED FINANCIAL DATA EXHIBIT 13 SELECTED FINANCIAL DATA
Year ended December 31, -------------------------------------------------------- (dollars in thousands, except per share data) 1995 1994 1993 1992 1991 - --------------------------------------------------------------------------------------------------------- Income Statement Data: Revenues: Premiums earned $114,971 $ 93,269 $ 83,206 $ 59,732 $ 42,588 Commissions and fees 25,994 23,583 21,736 18,403 15,492 Investment income 10,212 5,959 7,037 6,187 5,729 -------------------------------------------------------- Total revenues $151,177 $122,811 $111,979 $ 84,322 $ 63,809 ======================================================== Income before income taxes $ 18,159 $ 7,382 $ 8,407 $ 6,222 $ 8,942 ======================================================== Net income $ 13,854 $ 6,238 $ 6,767 $ 4,641 $ 7,020 ======================================================== Per Share: Net income $ 2.42 $ 1.04 $ 1.14 $ .78 $ 1.64 ======================================================== Cash dividends $ .20 -- -- -- -- ======================================================== Balance Sheet Data: Total assets $249,872 $199,737 $154,723 $133,567 $121,114 -------------------------------------------------------- Notes payable $ 35,000 $ 25,000 -- $ 1,600 $ 5,000 -------------------------------------------------------- Stockholders' equity $ 88,061 $ 63,079 $ 63,333 $ 55,915 $ 50,619 --------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS BUSINESS OPERATIONS US Facilities Corporation's (the "Company") operations are classified into two business segments: (1) medical stop-loss and employee benefit products (which includes the commissions and fees revenues of the Company, as well as reinsurance of 50% of its medical stop-loss business); and (2) property/casualty reinsurance and insurance underwriting. Commissions and fees revenues are produced by the Company's wholly-owned subsidiary, USBenefits Insurance Services, Inc. ("USBenefits"), which acts primarily as the managing general underwriter and marketing organization for medical stop-loss coverages issued by The Continental Insurance Company ("Continental"), an unaffiliated party. In May 1995 Continental became one of the CNA Insurance Companies. The Company's wholly-owned subsidiary, USF RE Insurance Company ("USF RE"), reinsures 50% of the medical stop-loss business produced by USBenefits for Continental. USBenefits also markets other employee benefit related products on behalf of several national life insurance companies. Substantially all commissions and fees and approximately 71%, 79% and 81% of premiums earned for 1995, 1994 and 1993, respectively, resulted from the management agreement between USBenefits and Continental and the reinsurance agreement between USF RE and Continental related to the medical stop-loss business. Medical stop-loss and employee benefit products are marketed through a network of unaffiliated third party administrators, and insurance agents, brokers and consultants ("Producers"). Producers have non-exclusive arrangements with USBenefits that enable them to submit requests for stop-loss coverage quotations on behalf of their self-insured clients. Property/casualty insurance and reinsurance underwriting is conducted by USF RE and its subsidiary USF Insurance Company ("USFIC"). Business lines included in this segment are property/casualty reinsurance 12 -- assumed by USF RE from unaffiliated insurance companies, primarily through reinsurance intermediaries, and surplus lines insurance written by USFIC through excess and surplus lines brokers. These subsidiaries share a pooled A- (Excellent) rating from A.M. Best Company, which reflects A.M. Best Company's evaluation that the companies have exhibited "excellent overall performance" and "have a strong ability to meet their obligations to policyholders over a long period of time." During the second quarter of 1995, USF RE ceased writing plate glass insurance, which accounted for 3%, 5% and 5% of premiums earned in 1995, 1994 and 1993, respectively. The ceding companies of one client organization accounted for a total of 27%, 17% and 13% of gross premiums written in the property/casualty segment in 1995, 1994 and 1993, respectively. RESULTS OF OPERATIONS Consolidated Results The table below presents certain consolidated financial information regarding the Company's operations.
Year Ended December 31, ---------------------------------------------------------- (dollars in thousands) 1995 Change 1994 Change 1993 - ---------------------------------------------------------------------------------------------- Revenues: Operating revenues $140,965 21% $116,852 11% $104,942 Net Investment income 9,190 54% 5,950 2% 5,857 Realized investment gain 1,022 -- 9 -- 1,180 ---------------------------------------------------------- Total revenues 151,177 23% 122,811 10% 111,979 ---------------------------------------------------------- Expenses: Other expenses 116,661 22% 95,765 10% 86,648 General and administrative 16,357 (4%) 16,981 -- 16,924 Unusual charges -- -- 2,683 -- -- ---------------------------------------------------------- Total operating expenses 133,018 15% 115,249 11% 103,572 ---------------------------------------------------------- Income before income taxes 18,159 146% 7,382 (12%) 8,407 Income tax expense 4,305 276% 1,144 (30%) 1,640 ---------------------------------------------------------- Net income $ 13,854 122% $ 6,238 (8%) $ 6,767 ==========================================================
Increases in revenues for all periods presented are a result of expansion in each business segment, reflecting continuing growth of medical stop-loss premiums and the Company's success in increasing its property/casualty business. The increase in 1995 net income as compared to 1994 reflects improvements in profitability in each of the Company's business segments. The improvements result from increased marketing efforts and the effect of the Company's cost control programs which began during 1994. However, after tax net income was reduced by $457,000 in connection with the March 1995 resignation of the Company's former Chief Executive Officer. Net income for 1994, as compared to 1993, declined due to several unusual events. In April 1994, the Company became the target of an unsolicited takeover proposal and was involved in a proxy contest. The expenses of responding to the issues raised by these events reduced the Company's 1994 net income by $1,217,000. The Company also posted a restructuring charge during the second quarter of 1994 arising from the closings of branch marketing offices and reductions in personnel, which decreased net income for the year by $392,000. No similar events transpired during 1995 or 1993. Net income for 1994 was also reduced by $1,400,000 due to claims incurred as a result of the Northridge, California earthquake in January 1994. Although the Company incurred losses related to catastrophic events during the regular course of business in 1995 and 1993, it did not incur a single loss of comparable magnitude in such periods. 13 -- Consolidated net investment income in 1995 increased as compared to 1994, reflecting continuing growth in USF RE's asset base and generally higher rates of income earned on securities acquired between September 1994 and June 1995. Additionally, during 1995 the Company invested new funds in taxable bonds rather than tax-exempt bonds, which increased pre-tax investment income. Tax-exempt bonds, however, continue to account for the major portion of the Company's investment portfolio. Consolidated general and administrative expenses decreased in 1995 as compared to 1994 and were only nominally higher in 1994 as compared to 1993, as a result of the Company's restructuring and cost control programs implemented in 1994. General and administrative expenses decreased to 10.8% of revenues in 1995, compared to 13.8% of revenues in 1994 and 15.1% of revenues in 1993. Management continues to focus on cost control efforts as an element of its strategy to maintain profitability. Income taxes as a percentage of pre-tax income fluctuate depending on the proportion of tax exempt investment income to total pre-tax income and the proportion of total income subject to state income taxes. BUSINESS SEGMENTS The following tables present pre-tax operating information by business segment and holding company operations (including realized gains) for the years ended December 31, 1995, 1994 and 1993. MEDICAL STOP-LOSS AND EMPLOYEE BENEFIT PRODUCTS
Year Ended December 31, ---------------------------------------------------------- (dollars in thousands) 1995 Change 1994 Change 1993 - --------------------------------------------------------------------------------------------- Gross premiums written $ 81,546 12% $72,517 8% $66,931 Net premiums written 81,546 12% 72,517 8% 66,931 ---------------------------------------------------------- Revenues: Premiums earned 81,546 12% 72,517 8% 66,931 Commissions and fees 25,994 10% 23,583 8% 21,736 Net investment income 3,269 44% 2,273 2% 2,225 ---------------------------------------------------------- Total revenues 110,809 13% 98,373 8% 90,892 ---------------------------------------------------------- Expenses: Losses and loss adjustment 54,563 13% 48,356 1% 47,667 Policy acquisition 27,069 14% 23,647 6% 22,265 General and administrative 12,025 (13%) 13,772 1% 13,695 ---------------------------------------------------------- Total expenses 93,657 9% 85,775 3% 83,627 ---------------------------------------------------------- Income before income taxes $ 17,152 38% $12,598 73% $ 7,265 ==========================================================
The medical stop-loss and employee benefit products segment continued to be the primary source of the Company's revenues and profits during 1995. Medical stop-loss production increased by 12% in 1995 over 1994 and by 8% in 1994 over 1993, which generated the increases in premiums earned and substantially all of the commissions and fees revenues. The growth in medical stop-loss production during such periods was primarily due to a substantial increase in new business in 1995, strong retention of in-force accounts and modest rate increases during the periods presented. Increases in profitability in this segment in 1995 as compared to 1994 are due to increased commissions and fees resulting from the additional production, increased investment income and a reduction in general and administrative expenses. Increases in profitability in this segment in 1994 as compared to 1993 are primarily due to improved underwriting and lower medical stop-loss claim costs, resulting principally from 14 -- widespread implementation of various cost control measures by self-insured employers and the medical provider community. Increases in policy acquisition expenses are primarily related to the additional revenues in the periods presented. The segment information presented in the table above includes losses before income tax of $1,156,000, $1,137,000 and $1,492,000 for the years ended December 31, 1995, 1994 and 1993, respectively, from the Company's medical bill review operations that were closed effective May 31, 1995. PROPERTY/CASUALTY UNDERWRITING
Year Ended December 31, ---------------------------------------------------- (dollars in thousands) 1995 Change 1994 Change 1993 - ---------------------------------------------------------------------------------------- Gross premiums written $50,915 42% $35,760 38% $25,932 Net premiums written 35,350 48% 23,865 28% 18,644 ---------------------------------------------------- Revenues Premiums earned 33,425 61% 20,752 28% 16,275 Net investment income 5,872 60% 3,677 1% 3,632 ---------------------------------------------------- Total revenues 39,297 61% 24,429 23% 19,907 ---------------------------------------------------- Expenses Losses and loss adjustment 23,180 45% 16,010 59% 10,050 Policy acquisition 8,895 15% 7,694 16% 6,611 General and administrative 3,304 32% 2,499 37% 2,485 ---------------------------------------------------- Total expenses 35,379 35% 26,203 37% 19,146 ---------------------------------------------------- Income (loss) before income taxes $ 3,918 321% $(1,774) -- $ 761 ====================================================
The increases each year in premiums earned primarily result from USF RE expanding its customer base and through additional marketing efforts. These efforts were supported by surplus contributions by the Company in 1995 and 1994 totaling $30,500,000 which, in combination with internally generated earnings, brought USF RE's policyholders' surplus to over $100,000,000 by December 31, 1995. Management believes that opportunities in certain segments of the reinsurance market have improved due to the increase in USF RE's policyholders' surplus. Changes in the relationship between gross and net premiums written were due to changes in the Company's ceded reinsurance programs, as well as in the costs of such retrocessional coverages. Retrocession (reinsurance) agreements mitigate an insurance company's exposure to losses and, therefore, allow increases in the limits which can be offered on each property/casualty account. Other retrocession agreements protect against catastrophic losses. Under current catastrophe retrocession arrangements, approximately 95% of $24,500,000 of catastrophic protection in excess of a retention of $3,500,000 covering property facultative and surplus lines losses is maintained. Within this cover, the Company has $6,500,000 of catastrophic protection in excess of the same retention of $3,500,000 covering property treaty losses. Management believes this coverage is adequate to protect the Company from excessive catastrophic losses. The Company evaluates the financial condition of potential retrocessionaires to determine whether to cede retrocessional coverage to such companies. Retrocession agreements are placed with unaffiliated companies which management believes to be financially secure and experienced in this type of business. Reinsurance recoverables are monitored continually, and any retrocessionaire not qualified in USF RE's state of domicile, Massachusetts, is requested to post security in the amount of its estimated liability. 15 -- Increases in losses and loss adjustment expenses and policy acquisition expenses result primarily from increases in premiums earned and changes in the mix of business. Trends in such expense categories are reflective of the Company's 1995 withdrawal from the plate glass business which had high acquisition costs and low losses during the periods presented, offset by strong growth in casualty lines which are generally reserved at a higher loss ratio and carry lower acquisition costs. Also, this segment incurred higher losses in 1994 principally due to catastrophe claims. HOLDING COMPANY
Year Ended December 31, ------------------------------------------------------ (dollars in thousands) 1995 Change 1994 Change 1993 - --------------------------------------------------------------------------------------------- Revenues: Investment income $ 49 -- $ -- -- $ -- Realized gains 1,022 112% 9 (99%) 1,180 ------------------------------------------------------ Total revenues 1,071 118% 9 (99%) 1,180 ------------------------------------------------------ Expenses: General and administrative 1,028 45% 710 (5%) 744 Expenses related to unsolicited takeover proposal -- -- 2,029 -- -- Restructuring -- -- 654 -- -- Other 695 -- -- -- -- Interest 2,259 -- 58 5% 55 ------------------------------------------------------ Total expenses 3,982 15% 3,451 -- 799 ------------------------------------------------------ Income (loss) before income taxes $(2,911) (16%) $(3,442) -- $ 381 ======================================================
Realized gains increased in 1995 as compared to 1994 and 1993 as the Company repositioned its portfolio to enhance yields consistent with the Company's investment guidelines. The 1995 expenses included $695,000, pre-tax, pertaining to the resignation of the Company's former Chief Executive Officer in March 1995. Interest expenses increased in 1995 as a result of a $25,000,000 bank loan funded in December 1994. As noted earlier, total expenses for 1994 increased significantly from 1993 primarily due to the costs of responding to an unsolicited takeover proposal and subsequent proxy contest. In 1994 the Company also posted a restructuring charge related to closings of branch marketing offices and reductions in personnel. ACCOUNTING POLICIES See Footnote 1 to the Company's Consolidated Financial Statements appearing elsewhere in this Annual Report for information regarding significant accounting policies. INFLATION The healthcare marketplace has long been subject to the effects of increasing costs for provider services. Such inflation in the costs of healthcare tends to generate higher claims payments, resulting in increases in premiums for medical stop-loss coverage, and in greater revenues. Management believes various cost control initiatives and the trend to self-insured plans have stabilized the price spiral and have caused a decline in the rate of increase in the cost of healthcare. Inflation can negatively impact insurance and reinsurance operations by causing higher claims settlements than may have originally been estimated, while not necessarily allowing an immediate increase in premiums to a level necessary to maintain profit margins. Historically, the Company has made no explicit provisions for 16 -- inflation, but trends are considered when setting underwriting terms and claim reserves. Such reserves are subjected to a continuing internal and external review process to assess their adequacy and are adjusted as deemed appropriate. Overall economic trends also affect interest rates, which in turn affect investment income and the market value of the Company's investment portfolio. LIQUIDITY AND CAPITAL RESOURCES The Company utilizes cash from operations and maturing investments to meet its insurance obligations to policyholders and claimants, as well as to meet operating costs. Primary sources of cash from operations include premium collections, investment income and commissions and fees. The principal uses of cash from operations are for premium payments to insurance companies, payments of claims under USF RE's and USFIC's reinsurance and insurance contracts, and operating expenses such as salaries, commissions, taxes and general overhead. The Company obtained a $25,000,000 bank loan in December 1994 which was increased to $35,000,000 in November 1995. The Company has contributed $30,500,000 to the surplus of its insurance group to support additional growth in the medical stop-loss and property/casualty business lines. The Credit Agreement with the Company's lender contains certain covenants, restrictions and dividend payment limitations with which the Company was in compliance at December 31, 1995. See Footnote 5 to the Company's Consolidated Financial Statements appearing elsewhere in this Annual Report. The Company anticipates that it will continue to generate sufficient cash flow from operations to cover its short-term (1-18 months) and long-term (18 months to 3 years) liquidity needs. While the Company currently has no immediate plans for significant capital outlays, from time to time it contemplates acquisition opportunities that complement its business operations. The Company currently invests primarily in the highest grades of bonds, equities, certificates of deposit and short-term instruments. At year-end 1995, 99% of the fixed income portfolio was in securities rated A or better. All such securities are carried at quoted market values at the latest balance sheet date. The Company does not invest in real estate, derivatives or high yield bonds. USF RE is restricted in the annual amount of dividends which it may pay to the Company without receiving prior approval from the Massachusetts and California Commissioners of Insurance. For 1996 the amount which may be paid without such prior approval is $10,057,000. Since its acquisition by the Company in 1983, USF RE has not paid any dividends. The Company principally receives funds for its operations from its USBenefits subsidiary. In December 1993 the National Association of Insurance Commissioners formally approved risk-based capital ("RBC") requirements for property and casualty insurance entities which are applicable to statutory filings beginning with the year ending December 31, 1994. Application of the RBC formula to USF RE's and USFIC's statutory financial information indicates that presently they substantially exceed the capital level required under the RBC requirements. LEGISLATIVE AND REGULATORY DEVELOPMENTS Federal healthcare legislation, which was extensively considered but not adopted by Congress during 1994, was again taken up by Congress during 1995. As with prior efforts, such legislation concerns government regulation and control of the financing and delivery of healthcare. Among the items being considered are proposals concerning the scope of the present preemptive provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). Some of these proposals would reinforce the ERISA preemption of state regulation of self- insured plans, while others would permit states the authority to regulate specific aspects of self-insured plans. 17 -- For the past several years, various states have been initiating their own healthcare reforms. With respect to the self-insured market, many of these actions have focused primarily on the small group health insurance market, generally plans with 50 employees or less. Other state efforts include attempts to regulate self-insured plans indirectly by regulating companies providing stop-loss coverage. Such efforts include prescribing policy terms and establishing minimum attachment points; i.e., the amount of risk an employer retains for itself. The Company believes these state initiatives have not had, and are not expected to have, a significant effect on its medical stop-loss business. In addition, the National Association of Insurance Commissioners ("NAIC") proposed in September 1995 a model act that would regulate medical stop-loss policies. The principal feature of the model act is a recommendation that stop- loss policies contain a minimum specific attachment point of $20,000. In order to be effective in any state, the NAIC model act would have to be adopted by legislative action in such state. To management's knowledge, no state has adopted the model act as of year end 1995. Management does not believe that all states will adopt the model act, and that of those states that may, some will adopt specific attachment point requirements lower than the $20,000 level recommended by the model act. Furthermore, based upon recent court decisions, the Company believes that if adopted by a state, the model act will continue to be challenged on the basis that it is preempted by ERISA. Accordingly, at this time the Company believes that the proposed model act will not have a significant effect on its medical stop-loss business. The Company cannot predict at this time the extent to which the federal or state legislative or regulatory initiatives discussed above will be adopted, or the extent of the impact they would have on the Company's business. Management believes, however, that changes to the healthcare system which ultimately may be adopted will continue to recognize employers' self-insurance of healthcare benefits as a viable and cost effective method of financing healthcare. Accordingly, management believes that there will be a continuing need for medical stop-loss products and that such products will remain a source of revenues to the Company. Some of the statements included within Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and related Notes may be considered to be forward looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995), and which are subject to certain risks and uncertainties. Among those factors which could cause the actual results to differ materially from those suggested by such statements are the following: catastrophe losses in the Company's insurance lines or a material aggregation of losses; changes in federal or state law affecting an employer's ability to self-insure; availability of adequate retrocessional insurance coverage at appropriate prices; stock and bond market volatility; the effects of competitive market pressures within the stop-loss or property/casualty marketplaces; the effect of changes required by generally accepted accounting practices or statutory accounting practices; and other risks which are described from time to time in the Company's filings with the Securities and Exchange Commission. 18 -- REPORT ON CONSOLIDATED FINANCIAL STATEMENTS The accompanying consolidated financial statements were prepared by the Company, which is responsible for their integrity and objectivity. The statements have been prepared in conformity with generally accepted accounting principles, appropriate in the circumstances, and necessarily include some amounts that are based upon the Company's best estimates and judgment. Financial information presented elsewhere in this Annual Report is consistent with these accompanying consolidated financial statements. The accounting systems and controls of the Company are designed to provide assurance that transactions are executed in accordance with management's authorization, that the financial records are reliable for preparing financial statements and maintaining accountability for assets, and that assets are safeguarded against losses from unauthorized use or disposition. The Company's consolidated financial statements have been audited by KPMG Peat Marwick LLP, independent certified public accountants, whose audits thereon were made in accordance with generally accepted auditing standards and included a review of internal accounting controls to the extent necessary to design audit procedures aimed at gathering sufficient evidence to assess their opinion on the fairness or presentation of the consolidated financial statements. The auditors have full access to each member of management in conducting their audits, and their report is contained elsewhere in this Annual Report. The Audit Committee of the Board of Directors, comprised solely of non- employee, independent directors meets regularly with management and the independent accountants to review the work and procedures of each. The independent accountants have free access to the Audit Committee, without management being present, to discuss the results of their work and their opinions on the adequacy of the Company's accounting controls and the quality of the Company's financial reporting. The Board of Directors, upon the recommendation of the Audit Committee, appoints the independent public accountants, subject to annual stockholder approval. /s/ David L. Cargile /s/ Mark Burke David L. Cargile Mark Burke Chairman of the Board, President Senior Vice President, Treasurer and Chief Executive Officer and Chief Financial Officer 19 -- CONSOLIDATED INCOME STATEMENTS
Year Ended December 31, -------------------------------- (dollars in thousands, except per share data) 1995 1994 1993 - ------------------------------------------------------------------------------------------- Revenues: Premiums earned $114,971 $ 93,269 $ 83,206 Commissions and fees 25,994 23,583 21,736 Net investment income 9,190 5,950 5,857 Realized investment gains 1,022 9 1,180 -------------------------------- Total revenues 151,177 122,811 111,979 -------------------------------- Operating expenses: Losses and loss adjustment expenses incurred 77,743 64,366 57,717 Policy acquisition expenses 35,964 31,341 28,876 General and administrative expenses 16,357 16,981 16,924 Other expense 695 -- -- Interest expense 2,259 58 55 -------------------------------- 133,018 112,746 103,572 Unusual Charges: Expenses related to unsolicited takeover proposal -- 2,029 -- Restructuring expenses -- 654 -- -------------------------------- Total operating expenses 133,018 115,429 103,572 Income before income taxes 18,159 7,382 8,407 Income tax expense 4,305 1,144 1,640 -------------------------------- Net income $ 13,854 $ 6,238 $ 6,767 ================================ Net income per common and common equivalent share $ 2.42 $ 1.04 $ 1.14 ================================
See accompanying notes to consolidated financial statements 20 -- CONSOLIDATED BALANCE SHEETS
December 31, ----------------------- (dollars in thousands) 1995 1994 - ------------------------------------------------------------------------------------------------------- ASSETS: Investments: Bonds, available for sale, at market (amortized cost $127,577 in 1995 and $100,844 in 1994) $136,746 $ 97,684 Equity securities at market (cost $14,935 in 1995 and $11,521 in 1994) 16,691 10,684 Short-term and other investments, at cost which approximates market 16,821 24,707 ----------------------- Total investments 170,258 133,075 Cash and invested cash 8,165 4,502 Restricted cash and short-term investments 24,036 21,340 Accrued investment income 2,414 1,844 Receivables: Reinsurance losses and reserves 18,597 14,301 Premiums 14,065 9,434 Prepaid reinsurance premiums 5,117 3,950 Deferred policy acquisition costs 2,830 3,047 Other assets 4,390 8,194 ----------------------- Total assets $249,872 $199,737 ======================= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Insurance liabilities: Amounts due insurance companies $ 25,712 $ 20,418 Losses and loss adjustment expenses 78,894 69,647 Unearned premiums 17,705 14,613 Note payable 35,000 25,000 Accounts payable and accrued expenses 4,500 6,980 ----------------------- Total liabilities 161,811 135,658 ----------------------- Stockholders' equity: Common stock, $.01 par value; 20,000,000 shares authorized; 6,074,000 and 5,946,000 issued shares in 1995 and 1994, respectively, including 296,000 and 538,000 shares held in treasury in 1995 and 1994, respectively. 61 59 Paid in capital 44,489 44,261 Net unrealized gain (loss) on securities 7,211 (2,637) Retained earnings 39,273 26,544 ----------------------- 91,034 68,227 Less treasury stock, at cost (2,973) (5,148) ----------------------- Total stockholders' equity 88,061 63,079 ----------------------- Commitments and contingencies Total liabilities and stockholders' equity $249,872 $199,737 =======================
See accompanying notes to consolidated financial statements. 21 -- CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Net Unrealized Gain Total Common Paid in (Loss) Retained Treasury Stockholders' (dollars in thousands) Stock Capital on Securities Earnings Stock Equity - ------------------------------------------------------------------------------------------------------------- Balance at January 1, 1993 $59 $43,006 $ 55 $13,539 $ (774) $55,915 Net Income -- -- -- 6,767 -- 6,767 Exercise of stock options (27,000 shares) -- 36 -- -- 113 149 Unrealized investment gain, net -- -- 388 -- -- 388 Issuance of 17,000 restricted shares of common stock -- 114 -- -- -- 114 ------------------------------------------------------------------------ Balance at December 31, 1993 59 43,156 443 20,306 (631) 63,333 Effect of adoption of SFAS No. 115 on January 1, 1994 -- -- 3,838 -- -- 3,838 Net Income -- -- -- 6,238 -- 6,238 Exercise of stock options (171,000 shares) -- 1,105 -- -- 483 1,588 Unrealized investment loss, net -- -- (6,918) -- -- (6,918) Purchase of 498,000 shares of common stock -- -- -- -- (5,000) (5,000) ------------------------------------------------------------------------ Balance at December 31, 1994 59 44,261 (2,637) 26,544 (5,148) 63,079 Net Income -- -- -- 13,854 -- 13,854 Exercise of stock options (280,700 shares) 2 228 -- -- 2,175 2,405 Dividends paid -- -- -- (1,125) -- (1,125) Unrealized investment gain, net -- -- 9,848 -- -- 9,848 ------------------------------------------------------------------------ Balance at December 31, 1995 $61 $44,489 $7,211 $39,273 $(2,973) $88,061 ========================================================================
See accompanying notes to consolidated financial statements. 22 -- CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31, ------------------------------------- (dollars in thousands) 1995 1994 1993 - -------------------------------------------------------------------------------------------------------- Cash Flows From Operating Activities: Net income $ 13,854 $ 6,238 $ 6,767 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred policy acquisition costs 34,281 30,032 27,275 Deferred policy acquisition costs (34,064) (30,612) (27,939) Depreciation and amortization 214 518 396 Realized investment gains (1,022) (9) (1,180) Increase in premiums receivable (4,631) (1,351) (895) Increase in reinsurance receivables (4,296) (6,283) (1,316) Decrease (increase) in other assets 2,055 (2,176) (749) Increase in losses and loss adjustment expenses 9,247 10,877 6,723 Increase in unearned premiums 3,092 4,322 3,876 Increase (decrease) in other liabilities (2,814) 5,071 4,739 Net transfers to restricted cash and short-term investments (2,696) (158) (5,099) ------------------------------------ Net cash provided by operating activities 13,220 16,469 12,598 ------------------------------------ Cash Flows From Investing Activities: Purchases of bonds (102,339) (30,129) (42,395) Purchases of equity securities (12,790) (7,061) (2,686) Proceeds from sales and maturities of investment securities 86,587 22,673 35,107 Net sales (purchases) of short-term investments 7,886 (21,586) 809 Purchases of property and equipment (181) (303) (628) ------------------------------------ Net cash used in investing activities (20,837) (36,406) (9,793) ------------------------------------ Cash Flows From Financing Activities: Proceeds from note payable 10,000 25,000 -- Payments on note payable -- -- (1,600) Purchase of treasury stock -- (5,000) -- Dividends paid (1,125) -- -- Proceeds from issuance of common stock 2,405 1,588 263 ------------------------------------ Net cash provided by (used in) financing activities 11,280 21,588 (1,337) ------------------------------------ Net Increase in Cash and Invested Cash: 3,663 1,651 1,468 Cash and invested cash at beginning of year 4,502 2,851 1,383 ------------------------------------ Cash and invested cash at end of year $ 8,165 $ 4,502 $ 2,851 ==================================== Supplemental Disclosures of Cash Flow Information: Cash paid during the year for: Interest $ 2,187 $ 19 $ 48 Income taxes $ 5,217 $ 1,350 $ 1,232 ====================================
See accompanying notes to consolidated financial statements. 23 -- NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (A) ORGANIZATION AND PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of US Facilities Corporation, a Delaware corporation (the "Company"), and its wholly owned subsidiaries. The Company's USBenefits Insurance Services, Inc. subsidiary acts primarily as the managing general underwriter and marketing organization for medical stop-loss coverages issued by The Continental Insurance Company, one of the CNA Insurance Companies. Its USF RE INSURANCE COMPANY and USF Insurace Company subsidiaries write property/casualty reinsurance and insurance. All significant intercompany balances and transactions have been eliminated in consolidation. (B) RECOGNITION OF REVENUE Management fees and brokerage commissions are primarily recognized as of the effective date of the underlying insurance coverage. Insurance and reinsurance premiums are generally recognized as revenues over the terms of the related policies on a pro-rata basis, and are reported net of ceded earned premiums. Substantially all commissions and fees and approximately 71%, 79% and 81% of premiums earned for 1995, 1994 and 1993 respectively, result from contracts between subsidiaries of the Company and The Continental Insurance Company. Such contracts may be terminated as of any year-end. (C) INVESTMENTS Securities are purchased to support the investment strategies of the Company, which are based on many factors including, but not limited to, rate of return, maturity, credit risk, tax considerations, regulatory requirements and market economics. The Company has the ability to hold all bonds to maturity. However, securities in the portfolio may be sold from time to time based upon the Company's investment strategies and market opportunities. Statement of Financial Accounting Standards (SFAS) No. 115, "Accounting for Certain Investments in Debt and Equity Securities," was adopted by the Company effective January 1, 1994. Bonds are considered held as available for sale and carried at market value as of the balance sheet date. Declines in the market value of any security below cost that is deemed other than temporary will be charged to earnings. Unrealized gains and losses net of income taxes are reported as a separate component of stockholders' equity. The cumulative effect of adoption of SFAS No. 115 increased the carrying value of bonds by $5,838,000 and increased stockholders' equity by $3,838,000 at January 1, 1994. Market values of bonds are primarily a function of current interest rates, and vary from period to period. Realized gains or losses on sales of investments are computed on a specific identification basis. (D) SHORT-TERM AND OTHER INVESTMENTS AND INVESTED CASH Short-term and other investments are principally money market mutual funds and variable rate municipal bonds which adjust weekly. Cash and invested cash consists of bank deposits, certificates of deposit with original maturities of less than 90 days and money market mutual funds. Premiums collected but not yet remitted to insurance companies are restricted by law as to use. Such amounts are reported as restricted cash and short-term investments, which at December 31, 1995 and 1994 consisted primarily of money market mutual funds, bank certificates of deposit, tax-free auction rate preferred stocks which are redeemable at par value every 7 - 270 days, and municipal bonds maturing in less than one year. (E) POLICY ACQUISITION COSTS The insurers' costs of acquiring new business are deferred to the extent estimated to be recoverable from future income, including investment income, and amortized to operations ratably over the terms of the related 24 -- policies. Acquisition costs include commissions, premium taxes and certain underwriting expenses related to production of insurance and reinsurance business. (F) LOSSES AND LOSS ADJUSTMENT EXPENSES The liability for losses is determined on the basis of claim adjusters' and ceding reinsurers' reports and other estimates, including those for incurred but not reported losses. The liability for loss adjustment expenses is established by estimating future expenses to be incurred in the settlement of claims provided for in the liability for losses. Both estimates are dependent upon future events, the outcomes of which can be affected by economic, legal, political and social factors. The Company does not discount estimated future expenses to their present values. Management believes that the estimated liability for losses and loss adjustment expenses at December 31, 1995 is adequate to cover the ultimate liability; however, such estimates may be more or less than the amount ultimately paid when the claims are settled. (G) REINSURANCE Reinsurance receivables (including amounts related to claims incurred, both reported and not reported) and prepaid reinsurance premiums are reported as assets. In the normal course of business, the Company seeks to reduce the loss that may arise from events which may cause unfavorable underwriting results by reinsuring certain levels of risk with other insurance enterprises. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy. However, such estimates may be more or less than the amount ultimately collected when claims are settled. (H) VALUATION OF ASSETS, DEPRECIATION AND AMORTIZATION In 1995, the Company adopted the provisions of SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of." Adoption of this pronouncement did not have a material effect on the financial statements of the Company. Depreciation and amortization are provided on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lesser of the lease terms or useful lives of the improvements. Intangibles are amortized over their estimated useful lives of predominantly forty years. (I) INCOME TAXES Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial reporting basis and the tax basis of the Company's assets and liabilities, as well as expected benefits of utilizing net operating loss carryforwards. The impact on deferred taxes of changes in tax rates and laws, if any, are applied to the years during which temporary differences are expected to be settled, and reflected in the financial statements in the period of enactment. (J) FAIR VALUE OF FINANCIAL INSTRUMENTS The Company has disclosed the fair value of financial instruments and the methods and assumptions used to establish fair value, as required by SFAS No. 107, "Disclosures About the Fair Value of Financial Instruments" which was adopted for the year ending December 31, 1995. (K) INCOME PER COMMON SHARE The computation of per share data is based upon 5,728,000, 6,006,000 and 5,940,000 weighted average shares outstanding during the years ended December 31, 1995, 1994 and 1993, respectively. Common stock equivalents, consisting of outstanding stock options, have been included in the computation of primary income per share, which approximated fully diluted income per share. 25 -- (L) STOCK-BASED COMPENSATION SFAS No. 123, "Accounting for Stock-Based Compensation," issued in October, 1995, will be adopted by the Company for the year ending December 31, 1996. Presently, management expects to continue use of the accounting methods prescribed by Accounting Principles Board Opinion No. 25 and expand its disclosure of stock-based compensation as permitted by SFAS No. 123. Accordingly, adoption of this pronouncement is not expected to have a material effect on the financial statements of the Company. NOTE 2 - INVESTMENTS Bonds valued at approximately $4,260,000 were on deposit with various governmental authorities at December 31, 1995. The amortized cost and estimated market values of bonds, in thousands of dollars, at December 31, 1995 and 1994 are as follows:
December 31, 1995 ------------------------------------------------- Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value - ----------------------------------------------------------------------------------------------------- U.S. Treasury securities and obligations of U.S. Government corporations and agencies $ 11,071 $ 722 $ -- $ 11,793 Foreign bonds 557 65 -- 622 Obligations of states and political subdivisions 69,967 4,587 117 74,437 Corporate bonds 45,982 3,963 51 49,894 ------------------------------------------------- Total $ 127,577 $9,337 $ 168 $136,746 =================================================
December 31, 1994 ------------------------------------------------- Gross Gross Amortized Unrealized Unrealized Market Cost Gains Losses Value - ----------------------------------------------------------------------------------------------------- U.S. Treasury securities and obligations of U.S. Government corporations and agencies $ 8,826 $ 20 $ 282 $ 8,564 Foreign bonds 1,560 15 47 1,564 Obligations of states and political subdivisions 75,724 495 2,657 73,562 Corporate bonds 14,734 18 758 13,994 ------------------------------------------------- Total $100,844 $ 584 $3,744 $ 97,684 =================================================
The amortized cost and estimated market value of bonds at December 31, 1995, by contractual maturity, are shown below in thousands of dollars. Expected maturities will differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
Maturity Dates Amortized Cost Market Value --------------------------------------------------- 1996 $ 2,158 $ 2,224 1997-2000 14,576 15,173 2001-2005 63,934 68,367 2006-2024 46,909 50,982 --------------------------------------------------- Total $127,577 $136,746 ===================================================
26 -- Information regarding bond sales (in thousands of dollars) follows:
Year ended Proceeds Gross Gross December 31, From sales Gains Losses - ------------------------------------------------------------------------------------------ 1995 $77,373 $ 1,677 $ 522 1994 17,136 385 355 1993 33,259 1,074 249 ==========================================================================================
Information regarding equity dispositions (in thousands of dollars) follows:
Year ended Proceeds Gross Gross December 31, From sales Gains Losses - ------------------------------------------------------------------------------------------ 1995 $ 9,214 $ 211 $ 344 1994 2,853 68 54 1993 1,347 72 -- ==========================================================================================
Information regarding gross unrealized gains and losses on equity securities (in thousands of dollars) follows:
Gross Gross Year ended Unrealized Unrealized December 31, Gains Losses - ------------------------------------------------------------------------------------------ 1995 $ 2,243 $ 487 1994 375 1,212 1993 671 -- ==========================================================================================
Net investment income in thousands of dollars consists of the following:
Year Ended December 31, ----------------------------------------- 1995 1994 1993 - ------------------------------------------------------------------------------------------ Interest on bonds $ 8,134 $ 5,347 $5,517 Short-term investment interest 1,569 803 585 Dividends on equity securities 496 604 440 ----------------------------------------- 10,199 6,754 6,542 Less: Investment expenses 1,009 804 685 ----------------------------------------- Net investment income $ 9,190 $ 5,950 $5,857 =========================================
NOTE 3 - REINSURANCE Reinsurance contracts do not relieve the Company from its obligations to policyholders. A contingent liability exists for the amount of all reinsurance deductions necessary in the event that any of the reinsuring companies are unable to pay their portion of any losses; consequently, allowances are established for amounts deemed uncollectible. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. At December 31, 1995, reinsurance recoverables and prepaid premiums of $13,603,000 were unsecured. The Company holds letters of credit totaling approximately $6,470,000 under certain reinsurance agreements that can be drawn on for amounts that remain unpaid for more than 120 days. 27 -- The property and casualty insurance companies cede a portion of their business to other insurance companies, under multiple reinsurance agreements. The effect of reinsurance on premiums written and earned and the effect of ceding arrangements, in thousands of dollars follows:
Year Ended December 31, -------------------------------------------------------------------------- 1995 1994 1993 -------------------------------------------------------------------------- Premiums Premiums Premiums Premiums Premiums Premiums Written Earned Written Earned Written Earned - ------------------------------------------------------------------------------------------------------------------------ Direct $ 11,260 $ 12,218 $12,004 $ 9,386 $ 7,338 $ 6,289 Reinsurance assumed 121,201 117,151 96,275 94,573 85,524 82,698 Reinsurance ceded (15,565) (14,398) (11,897) (10,690) (7,287) (5,781) -------------------------------------------------------------------------- Net $116,896 $114,971 $96,382 $ 93,269 $85,575 $83,206 ========================================================================== Losses and loss adjustment expenses ceded $ 8,327 $ 10,141 $ 1,750 ========================================================================== Liabilities for losses and loss adjustment expenses ceded $ 16,426 $ 13,343 $ 7,412 ========================================================================== Commissions ceded $ 2,441 $ 1,723 $ 884 ==========================================================================
NOTE 4 - RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES The table below summarizes the activity for losses and loss adjustment expenses (LAE), net of reinsurance recoverable, for the years ended December 31, 1995, 1994 and 1993, respectively. Reserves are established for losses that have occurred but have not been reported as of each balance sheet date.
Year Ended December 31, -------------------------------------------------- 1995 1994 1993 - -------------------------------------------------------------------------------------------------------- Balance at beginning of period $ 69,647 $58,770 $52,047 Less reinsurance recoverables 13,343 7,412 6,564 -------------------------------------------------- Reserve for losses and LAE at beginning of period, net 56,304 51,358 45,483 Incurred losses and LAE: Provision for losses and LAE for claims occurring in the current year 74,935 61,941 56,081 Increase in estimated losses and LAE for claims occurring in prior years 2,808 2,425 1,636 Loss and LAE payments for claims occurring during: The current year (39,511) (33,345) (29,652) Prior years (32,116) (26,075) (22,190) -------------------------------------------------- Reserve for losses and LAE at end of period, net 62,420 56,304 51,358 Plus reinsurance recoverables 16,474 13,343 7,412 -------------------------------------------------- Balance at end of period $ 78,894 $69,647 $58,770 ==================================================
28 -- NOTE 5 - NOTE PAYABLE On December 20, 1994 the Company entered into a $35,000,000 reducing, revolving, variable interest rate bank Credit Agreement. Amounts borrowed bear interest at LIBOR plus a margin, currently 2%. At December 31, 1995, $35,000,000 was outstanding. Under its terms, the outstanding balance is to be reduced quarterly beginning March 31, 1996, with aggregate annual reductions in thousands of dollars as follows:
Year Reductions -------------------------------------- 1996 $ 2,500 1997 5,300 1998 6,800 1999 6,800 2000 6,800 2001 6,800 -------- Total $ 35,000 ========
Interest on amounts outstanding at December 31, 1995 is paid at an effective rate of 7.6% through March 27, 1996. The Credit Agreement also contains restrictive covenants which include restrictions on other debt, mergers, acquisitions and investment portfolio quality. Additionally, the Credit Agreement requires the Company to maintain certain levels of financial ratios, statutory surplus and pretax statutory net income, minimum consolidated tangible net worth, risk based capital ratio and A.M. Best Company rating. The Credit Agreement is secured by a pledge of all the capital stock of USF RE INSURANCE COMPANY. At December 31, 1995 the Company was in compliance with all covenants. NOTE 6 - INCOME TAXES Income tax expense (benefit), in thousands of dollars consists of:
Year Ended December 31, 1995: --------------------------------------- Federal State Total - ------------------------------------------------------------------------------ Current $3,818 $312 $4,130 Deferred 121 54 175 --------------------------------------- Total $3,939 $366 $4,305 =======================================
Year Ended December 31, 1994: --------------------------------------- Federal State Total - ------------------------------------------------------------------------------ Current $ 884 -- $ 884 Deferred 289 (29) 260 ---------------------------------------- Total $ 1,173 $ (29) $ 1,144 ========================================
Year Ended December 31, 1993: --------------------------------------- Federal State Total - ------------------------------------------------------------------------------ Current $ 1,248 $ 566 $ 1,814 Deferred (193) 19 (174) ---------------------------------------- Total $ 1,173 $ 585 $ 1,640 =======================================
29 -- Actual tax expense differs from "expected" tax expense which is computed by applying the federal statutory rate to income before taxes, in thousands of dollars as follows:
Year Ended December 31, --------------------------------------- 1995 1994 1993 - ---------------------------------------------------------------------------------- "Expected" federal tax expense at 34% $ 6,174 $ 2,510 $ 2,858 Tax exempt interest - net (1,621) (1,615) (1,413) Other (248) 249 195 --------------------------------------- Actual income tax expense $ 4,305 $ 1,144 $ 1,640 =======================================
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 1995 and 1994 are presented below in thousands of dollars:
December 31, -------------------------- 1995 1994 - ------------------------------------------------------------------------------------- Deferred tax assets: Loss and loss adjustment expense reserves $ 3,111 $ 2,502 Unearned premiums 861 725 Net operating loss carryforwards 462 535 Alternative minimum tax -- 728 Net unrealized losses -- 1,451 Other 207 316 -------------------------- Total deferred tax assets 4,641 6,257 Less valuation allowance (1,020) (1,135) -------------------------- Net deferred tax assets 3,621 5,122 Deferred tax liabilities: Intangibles (560) (578) Depreciation (145) (122) Policy acquisition costs (968) (993) Net unrealized gain (3,672) -- Other -- (152) -------------------------- Total deferred tax liabilities (5,345) (1,845) -------------------------- Deferred income taxes $(1,724) $ 3,277 ==========================
Based on the Company's current and historical earnings, management believes it is more likely than not that the existing net deductible temporary differences will reverse during periods in which the Company generates net taxable income. However, there can be no assurance that the Company will generate any earnings or any specific level of continuing earnings in future years. Certain tax planning strategies could be implemented to supplement income from operations to fully realize recorded tax benefits. Net operating loss carryforwards of approximately $1,610,000 are available to offset future federal taxable income of a subsidiary through 2005. NOTE 7 - STOCKHOLDERS' EQUITY The Company is authorized to issue 20,000,000 shares of common stock and 5,000,000 shares of preferred stock. The Company has a Stockholder Rights Plan which provides that in the event any person becomes the beneficial owner of 10% or more of the outstanding common stock of the Company, each right (other than rights held 30 -- by the 10% stockholder) will be exercisable at a predetermined price after the close of business on the tenth business day following such event. Each right entitles the holder thereof to purchase shares of common stock of the Company which have a market value equal to two times the then established exercise price ($65.00 per share at December 31, 1995). The Plan further provides that if, on or after the occurrence of the previously mentioned event, the Company is merged with or into any other corporation, or 50% or more of the Company's assets or earning power are sold, each right (other than rights held by the 10% stockholder) will be exercisable to purchase shares of common stock of the surviving corporation or purchaser which have a market value equal to two times the exercise price. The rights expire on May 24, 2000, and can be redeemed by the Board of Directors at $.001 per right at any time before the first date on which they first become exercisable. At December 31, 1995 and 1994, USF RE's statutory surplus was $100,568,000 and $77,367,000, respectively. Statutory net income for USF RE was $9,359,000, $6,418,000 and $1,277,000 for the years ended December 31, 1995, 1994 and 1993, respectively. USF RE is limited in the amount of dividends it can pay to the Company without prior approval of the Insurance Commissioners of Massachusetts and California. Such limitation is the greater of net income or 10% of policyholders' surplus of the preceding year. During 1996 USF RE may pay dividends of $10,057,000 to the Company without such prior approval. NOTE 8 - STOCK OPTIONS AND EMPLOYEE BENEFITS The Company has four plans under which options to purchase shares of the Company's common stock have been or may be granted. Options to purchase up to 300,000 and 600,000 shares have been authorized under the 1988 and 1991 Employee Stock Option Plans. Options to purchase up to 35,000 and 50,000 shares have been authorized under the 1988 and 1991 Director Stock Option Plans. Such plans allow the Company to grant incentive stock options (ISO's), nonqualified stock options (NQSO's), stock appreciation rights (SAR's) and restricted shares to key employees and directors at prices not lower than the market value at date of grant. Options are exercisable through periods ending December 17, 1996 to August 31, 2003. No SAR's or restricted share grants were outstanding at December 31, 1995 or 1994. The status of all optioned shares is as follows:
December 31, ---------------------- 1995 1994 - ---------------------------------------------------------------------------------- Outstanding-beginning of year 648,900 828,400 Granted, at prices ranging from $13.38 to $20.00 (1995) and $9.00 to $11.25 (1994) 234,400 36,000 Exercised, at prices ranging from $3.25 to $12.38 (280,700) (171,000) Canceled, at prices ranging from $9 to $14 (21,000) (44,500) ---------------------- Outstanding-end of year 581,600 648,900 ====================== Options exercisable at prices ranging from $9.00 ($3.25 in 1994) to $14.00 307,500 547,566 ======================
At December 31, 1995, the Company also has 30,000 options outstanding, exercisable at prices ranging from $5.04 to $13.00. Such options were sold in 1991 at $1 per share to a corporation controlled by a current officer and director of the Company, and expire at various dates in 1996. 31 -- The US Facilities Corporation Employees Savings Plan is a voluntary contributory 401(k) savings plan covering substantially all employees. Eligible employees may contribute up to 15% of their compensation on a pre-tax basis. The Company makes matching contributions to the plan on a pro-rata basis for all participants up to a maximum of 6% of each individual's compensation. For 1995, 1994 and 1993 such matching contributions were $395,000, $321,000 and $316,000, respectively. NOTE 9 - SEGMENT INFORMATION Certain information about the Company's operations by industry segment is summarized as follows, in thousands of dollars:
Year ending December 31, -------------------------------------- 1995 1994 1993 - -------------------------------------------------------------------------------------------- Revenues: Medical stop-loss and employee benefits $110,809 $ 98,373 $ 90,892 Property/casualty underwriting 39,297 24,429 19,907 Holding Company (including realized gains) 1,071 9 1,180 -------------------------------------- Total $151,177 $122,811 $111,979 ====================================== Income before income taxes: Medical stop-loss and employee benefits $ 17,152 $ 12,598 $ 7,265 Property/casualty underwriting 3,918 (1,774) 761 Holding Company (2,911) (3,442) 381 -------------------------------------- Total $ 18,159 $ 7,382 $ 8,407 ====================================== Identifiable assets: Medical stop-loss and employee benefits $ 75,529 $ 69,160 $ 59,400 Property/casualty underwriting 170,645 126,297 93,938 Holding Company 3,698 4,280 1,385 -------------------------------------- Total $249,872 $199,737 $154,723 ======================================
NOTE 10 - COMMITMENTS AND CONTINGENCIES The Company leases certain facilities and equipment under long-term operating leases which expire at various dates through 2007. Taxes, insurance and maintenance are generally obligations of the Company. Total rent expense, including month-to-month rentals, was $1,951,000 in 1995, $1,566,000 in 1994 and $1,764,000 in 1993. Future minimum noncancelable lease commitments in thousands of dollars are as follows:
Year ending December 31, -------------------------------------- 1996 $1,043 1997 1,053 1998 922 1999 927 2000 892 Thereafter 5,087 ------ $9,924 ======
32 -- INDEPENDENT AUDITORS' REPORT The Board of Directors and Stockholders US Facilities Corporation We have audited the accompanying consolidated balance sheets of US Facilities Corporation and subsidiaries as of December 31, 1995 and 1994 and the related consolidated income statements, statements of stockholders' equity and cash flows for each of the years in the three-year period ended December 31, 1995. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards 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. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of US Facilities Corporation and subsidiaries at December 31, 1995 and 1994, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 1995, in conformity with generally accepted accounting principles. As discussed in Note 1 to the consolidated financial statements, the Company changed its method of accounting for investments in 1994 to adopt the provisions of the Financial Accounting Standards Board's Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities." February 6, 1996 Los Angeles, California 33 -- QUARTERLY RESULTS OF OPERATIONS Following is quarterly summary financial information for 1995, 1994 and 1993 in thousands of dollars, except per share data.
lst 2nd 3rd 4th Quarter Quarter Quarter Quarter ---------------------------------------------- 1995 Revenues $35,459 $39,932 $36,330 $39,456 Income before income taxes 3,732 5,023 4,606 4,798 Net Income 2,922 3,849 3,477 3,606 ---------------------------------------------- Net income per share: $ .52 $ .67 $ .60 $ .61 ============================================== 1994 Revenues $30,469 $32,185 $29,505 $30,652 Income before income taxes 424 697 2,832 3,429 Net income 600 761 2,107 2,770 ---------------------------------------------- Net income per share: $ .10 $ .13 $ .35 $ .46 ============================================== 1993 Revenues $26,014 $27,155 $29,014 $29,796 Income before income taxes 2,394 2,357 1,958 1,698 Net income 1,850 1,844 1,531 1,542 ---------------------------------------------- Net income per share: $ .31 $ .31 $ .26 $ .26 ==============================================
STOCK PRICE INFORMATION Following are the quarterly high and low prices from January 1, 1994 through March 8, 1996. The Company believes that as of March 8, 1996 there were approximately 1,600 holders of its common stock.
1st 2nd 3rd 4th Quarter Quarter Quarter Quarter High Low High Low High Low High Low - -------------------------------------------------------------------------------------- 1996 through March 8 21 3/8 16 1/2 1995 14 1/2 9 3/4 16 1/4 13 1/8 20 3/8 16 23 3/8 17 1/2 1994 12 1/4 8 1/2 14 5/8 8 1/4 13 7/8 11 1/2 11 5/8 9 1/8
34 -- US FACILITIES CORPORATION
BOARD OF DIRECTORS CORPORATE OFFICERS John A. Allison (2,4) David L. Cargile Retired; Former Vice Chairman and Chairman of the Board, President and Chief Marketing Officer, Chief Executive Officer Occidental Life Insurance Company of California, and Vice Chairman, Howard S. Singer Transamerica Insurance Group Executive Vice President - Corporate Finance and Investor Relations Jonathan D. DuBois (2,5) Partner, Member of Policy Committee, Mark Burke Coudert Brothers Senior Vice President, Treasurer and Chief Financial Officer David L. Cargile (1,3,5) Chairman, President and Chief John T. Grush Executive Officer, Senior Vice President US Facilities Corporation Craig J. Kelbel John F. Kooken (1,3) Senior Vice President Retired; Director, Glendale Federal Savings Bank; Former Vice Chairman and Chief Financial Officer, Jose A. Velasco Security Pacific Corporation Senior Vice President, Secretary and General Counsel L. Steven Medgyesy, M.D. (3,4) Retired; Former Director of Laboratories, Patricia S. Boisseranc Lincoln West Medical Center Vice President Bernard H. Ross (2,4) Barbara Fox Stoner Chairman & Chief Executive Officer, Vice President Fitness Horizons, Inc.; Former Partner and National Director of Healthcare Services, Edward D. Jones, III Touche Ross & Company. Vice President Charles L. Schultz (2,3,4) Frank P. Van Buskirk Retired; Director, Amwest Insurance Group; Vice President Former Senior Vice President, Finance and Chief Financial Officer, Farmers Group, Inc. Howard S. Singer (1,3,5) Executive Vice President - Corporate Finance and Investor Relations, US Facilities Corporation Kenneth C. Tyler (2,4) Retired; Attorney at Law; Former Vice Chairman and General Counsel, Farmers Group, Inc.
1995 Committee Assignments (1) Member of Executive Committee (2) Member of Audit Committee (3) Member of Investment Committee (4) Member of Compensation Committee (5) Member of Nominating Committee 35 -- STOCKHOLDER INFORMATION ANNUAL MEETING The 1996 Annual Meeting of Stockholders of US Facilities Corporation will be held on May 22, 1996 at 9:00 a.m. Local Time, at the Westin South Coast Plaza Hotel, 686 Anton Boulevard, Costa Mesa, California 92626. ADDITIONAL INFORMATION Stockholder inquiries and requests for additional copies of this Report and the Company's 1995 Report on Form 10-K filed with the Securities and Exchange Commission should be directed to: Howard S. Singer, Executive Vice President, US Facilities Corporation, 6200 N. Hiawatha, Suite 400, Chicago, Illinois 60646, (312) 545-3285. BOOK VALUE $15.24 per share at December 31, 1995. REGISTRAR AND TRANSFER AGENT American Stock Transfer & Trust Company, 40 Wall Street, New York, New York 10005. INDEPENDENT AUDITORS KPMG Peat Marwick LLP, 725 So. Figueroa Street, Los Angeles, California 90017. STOCK TRADING INFORMATION The Company's common stock trades on The Nasdaq Stock Market under the symbol USRE. 36 -- EX-21 9 US FACILITIES CORP. AND SUBSIDIARIES 12/31/95 EXHIBIT 21 US FACILITIES CORPORATION AND SUBSIDIARIES As of December 31, 1995 US FACILITIES CORPORATION A Delaware Corporation 100% 100% US MEDCARE REVIEW, INC. USBENEFITS INSURANCE SERVICES, An Illinois Corporation INC. (INACTIVE) A California Corporation 100% USF RE INSURANCE COMPANY A Massachusetts Corporation 100% US HOLDINGS, INC. A Delaware Corporation 100% USF INSURANCE COMPANY A Pennsylvania Corporation EX-23 10 CONSENT OF INDEPENDENT AUDITORS EXHIBIT 23 The Board of Directors US Facilities Corporation We consent to incorporation by reference in Registration Statements (No. 33- 41086 and No. 33-46841), both on Form S-8, of US Facilities Corporation of our report dated February 6, 1996, relating to the consolidated balance sheets of US Facilities Corporation and subsidiaries as of December 31, 1995 and 1994, and the related consolidated income statements, statements of stockholders' equity and cash flows for each of the years in the three-year period ended December 31, 1995, and all related schedules, which report appears in the December 31, 1995 annual report on Form 10-K of US Facilities Corporation and subsidiaries. Our report refers to the adoption of the Financial Accounting Standards Board's Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities." KPMG PEAT MARWICK LLP Los Angeles, California March 26, 1996 EX-27 11 FINANCIAL DATA SCHEDULE
7 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS YEAR DEC-31-1995 DEC-31-1995 OCT-01-1995 JAN-01-1995 DEC-31-1995 DEC-31-1995 0 0 0 0 0 0 0 0 0 0 0 0 0 170,258 0 32,201 0 18,597 0 2,830 0 249,872 0 78,894 0 17,705 0 0 0 0 0 35,000 0 0 0 0 0 61 0 88,000 0 249,872 30,128 114,971 2,286 9,190 429 1,022 6,613 25,994 20,981 77,743 9,157 35,964 3,885 16,357 4,798 18,159 1,192 4,305 0 0 0 0 0 0 0 0 3,606 13,854 0.61 2.42 0.61 2.42 0 56,304 0 74,935 0 2,808 0 39,511 0 32,116 0 62,420 0 2,808
EX-28 12 SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES EXHIBIT 28 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 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 ............ 11 .......... 6 .......... 23 ......... 16 2. 1986 ........ 19,531 ........... ......... 19,531 ......... 9,779 ............. ........... 2 ............ 3. 1987 ........ 20,532 ....... 164 ......... 20,368 ........ 12,592 ......... 235 ......... 138 .......... 4 4. 1988 ........ 35,093 ..... 1,799 ......... 33,294 ........ 20,317 ......... 149 ......... 204 .......... 4 5. 1989 ........ 53,387 ..... 3,957 ......... 49,430 ........ 27,136 ......... 353 ......... 204 ......... (1) 6. 1990 ........ 52,298 .... 3,418 ......... 48,880 ........ 27,244 ......... 454 ......... 274 ........ (13) 7. 1991 ........ 46,643 ..... 3,989 ......... 42,654 ........ 25,879 ......... 941 ....... 2,523 ...... 1,065 8. 1992 ........ 63,156 ..... 3,426 ......... 59,730 ........ 40,922 ....... 1,215 ......... 701 ......... 84 9. 1993 ....... 102,044 .... 18,838 ......... 83,206 ........ 61,615 ....... 9,203 ....... 1,004 ........ 261 10. 1994 ....... 119,632 .... 26,362 ......... 93,270 ........ 69,013 ...... 13,380 ....... 1,690 ........ 716 11. 1995 ....... 150,926 .... 35,955 ........ 114,971 ........ 46,648 ....... 8,059 ......... 867 ........ 390 - ------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X ....... 341,156 ...... 33,995 ....... 7,630 ...... 2,526 - ------------------------------------------------------------------------------------------------------------------------ =================================================================================== (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 .............. ............ 2 ........... 14 X X X 2. 1986 .............. .......... 278 ....... 10,059 X X X 3. 1987 .............. .......... 326 ....... 12,817 X X X 4. 1988 .............. .......... 675 ....... 21,043 X X X 5. 1989 .............. .......... 618 ....... 27,606 X X X 6. 1990 .............. .......... 641 ....... 27,718 X X X 7. 1991 .............. .......... 870 ....... 27,266 X X X 8. 1992 .............. ........ 1,021 ....... 41,345 X X X 9. 1993 .............. .......... 977 ....... 54,132 X X X 10. 1994 .............. ........ 1,042 ....... 57,649 X X X 11. 1995 .............. .......... 444 ....... 39,510 X X X - --------------------------------------------------------------------------------- 12. TOTALS .............. ...... 6,894 ...... 319,159 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 Ceded Assumed Ceded Assumed Ceded Assumed Ceded Assumed - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ........ 302 .......... 160 ........... 17 .......... 13 ........... 30 ........ 16 ......... 21 ......... 12 2. 1986 ............ .............. .............. ............. .............. ........... ............ ............ 3. 1987 ............ .............. ........... 65 .......... 14 .............. ........... ............ ............ 4. 1988 ........ 132 ........... 23 .......... 360 .......... 60 .............. ........... .......... 3 ............ 5. 1989 ...... 1,053 .......... 152 ........ 2,205 ......... 505 .............. ........... .......... 8 .......... 1 6. 1990 ...... 1,059 .......... 418 ........ 3,224 ......... 505 .............. ........... ......... 15 .......... 2 7. 1991 ...... 1,834 ........ 1,194 ........ 3,844 ......... 749 .............. ........... ......... 22 .......... 3 8. 1992 ...... 1,667 .......... 477 ........ 2,992 ......... 796 ............ 8 ......... 5 ......... 63 .......... 8 9. 1993 ...... 2,255 .......... 569 ........ 3,531 ......... 784 ........... 47 ........ 14 ........ 106 ......... 14 10. 1994 ...... 8,923 ........ 6,101 ........ 6,688 ....... 1,608 .......... 207 ........ 69 ........ 401 ........ 106 11. 1995 ..... 14,846 ........ 3,458 ....... 32,694 ....... 9,468 .......... 327 ....... 191 ........ 727 ........ 326 - ---------------------------------------------------------------------------------------------------------------------------- 12. TOTALS ..... 32,071 ....... 12,552 ....... 55,620 ...... 14,502 .......... 619 ....... 295 ...... 1,366 ........ 472 - ---------------------------------------------------------------------------------------------------------------------------- ========================================================================= (21) (22) (23) (24) Salvage and Unallocated Total Net Number of Subrogation Loss Losses and Claims Anticipated Expenses Expenses Outstanding Unpaid Unpaid - Direct & Assumed - ------------------------------------------------------------------------- 1. Prior .............. .......... 60 ........ 229 X X X 2. 1986 .............. ............. ............ X X X 3. 1987 .............. ............. ......... 51 X X X 4. 1988 .............. ........... 3 ........ 415 X X X 5. 1989 .............. .......... 20 ...... 2,628 X X X 6. 1990 .............. .......... 26 ...... 3,399 X X X 7. 1991 .............. .......... 32 ...... 3,786 X X X 8. 1992 .............. .......... 32 ...... 3,476 X X X 9. 1993 .............. .......... 51 ...... 4,609 X X X 10. 1994 .............. .......... 81 ...... 8,416 X X X 11. 1995 .............. ......... 260 ..... 35,411 X X X - ------------------------------------------------------------------------- 12. TOTALS .............. ......... 565 ..... 62,420 X X X - -------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS EXPENSES INCURRED LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME (Incurred/Premiums Earned) VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X ............... ............... 2. 1986 ....... 10,059 ............. ........ 10,059 ........ 51.5 ............... ........ 51.5 ............... ............... 3. 1987 ....... 13,121 ......... 253 ........ 12,868 ........ 63.9 ......... 154.3 ........ 63.2 ............... ............... 4. 1988 ....... 21,694 ......... 236 ........ 21,458 ........ 61.8 .......... 13.1 ........ 64.5 ............... ............... 5. 1989 ....... 31,244 ....... 1,010 ........ 30,234 ........ 58.5 .......... 25.5 ........ 61.2 ............... ............... 6. 1990 ....... 32,483 ....... 1,366 ........ 31,117 ........ 62.1 .......... 40.0 ........ 63.7 ............... ............... 7. 1991 ....... 35,004 ....... 3,952 ........ 31,052 ........ 75.0 .......... 99.1 ........ 72.8 ............... ............... 8. 1992 ....... 47,406 ....... 2,585 ........ 44,821 ........ 75.1 .......... 75.5 ........ 75.0 ............... ............... 9. 1993 ....... 69,586 ...... 10,845 ........ 58,741 ........ 68.2 .......... 57.6 ........ 70.6 ............... ............... 10. 1994 ....... 88,043 ...... 21,980 ........ 66,063 ........ 73.6 .......... 83.4 ........ 70.8 ............... ............... 11. 1995 ....... 96,815 ...... 21,892 ........ 74,923 ........ 64.1 .......... 60.9 ........ 65.2 ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ ========================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ----------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ---------------------------------------------------------- 1. Prior X X X ........ 146 ............ 83 2. 1986 ............... ............ ............... 3. 1987 ............... ......... 51 ............... 4. 1988 ............... ........ 409 ............. 6 5. 1989 ............... ...... 2,601 ............ 27 6. 1990 ............... ...... 3,360 ............ 39 7. 1991 ............... ...... 3,735 ............ 51 8. 1992 ............... ...... 3,386 ............ 90 9. 1993 ......... 100.0 ...... 4,433 ........... 176 10. 1994 ......... 100.0 ...... 7,902 ........... 514 11. 1995 ......... 100.0 ..... 34,614 ........... 797 - ---------------------------------------------------------- 12. TOTALS X X X ..... 60,637 ......... 1,783 - ----------------------------------------------------------
74 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ..... ..... 11,126 ..... 11,899 ..... 12,751 ..... 13,603 ..... 14,885 ..... 14,393 ..... 13,533 ..... 13,711 .... 13,681 2. 1986 ...... ...... 9,364 ...... 9,834 ...... 9,743 ...... 9,739 ...... 9,739 ...... 9,782 ...... 9,781 ...... 9,781 ..... 9,781 3. 1987 ...... X X X ..... 11,687 ..... 12,301 ..... 12,479 ..... 12,634 ..... 12,526 ..... 12,545 ..... 12,545 .... 12,543 4. 1988 ...... X X X X X X ..... 22,467 ..... 21,172 ..... 21,036 ..... 21,191 ..... 21,618 ..... 21,192 .... 21,082 5. 1989 ...... X X X X X X X X X ..... 32,695 ..... 32,811 ..... 32,088 ..... 32,030 ..... 31,066 .... 29,906 6. 1990 ...... X X X X X X X X X X X X ..... 34,501 ..... 32,306 ..... 30,908 ..... 30,866 .... 30,523 7. 1991 ...... X X X X X X X X X X X X X X X ..... 28,632 ..... 30,438 ..... 30,263 .... 31,188 8. 1992 ...... X X X X X X X X X X X X X X X X X X ..... 41,012 ..... 43,511 .... 43,992 9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ..... 55,496 .... 57,240 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 .... 61,474 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 X X X - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ =========================================================== (1) DEVELOPMENT - ----------------------------------------------------------- Years in Which (11) (12) (13) Losses Were Incurred 1995 One Year Two Year - ----------------------------------------------------------- 1. Prior ..... ..... 13,677 ......... (4) ......... (34) 2. 1986 ...... ...... 9,781 ............. .............. 3. 1987 ...... ..... 12,543 ............. .......... (2) 4. 1988 ...... ..... 20,780 ....... (302) ........ (412) 5. 1989 ...... ..... 29,598 ....... (308) ...... (1,468) 6. 1990 ...... ..... 30,450 ........ (73) ........ (416) 7. 1991 ...... ..... 30,150 ..... (1,038) ........ (113) 8. 1992 ...... ..... 43,768 ....... (224) ......... 257 9. 1993 ...... ..... 57,711 ........ 471 ....... 2,215 10. 1994 ...... ..... 64,937 ...... 3,463 X X X 11. 1995 ...... ..... 74,219 X X X X X X - ----------------------------------------------------------- 12. TOTALS ...... 1,985 ........... 27 - -----------------------------------------------------------
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) (10) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ..... 0 0 0 ..... 10,530 ..... 10,945 ..... 11,154 ..... 12,151 ..... 13,286 ..... 13,385 ..... 13,470 .... 13,498 2. 1986 ...... ...... 9,503 ...... 9,646 ...... 9,742 ...... 9,738 ...... 9,738 ...... 9,782 ...... 9,782 ...... 9,782 ..... 9,782 3. 1987 ...... X X X ..... 11,491 ..... 11,945 ..... 12,201 ..... 12,437 ..... 12,476 ..... 12,491 ..... 12,490 .... 12,490 4. 1988 ...... X X X X X X ..... 14,946 ..... 16,785 ..... 17,700 ..... 19,114 ..... 19,465 ..... 19,463 .... 19,898 5. 1989 ...... X X X X X X X X X ..... 20,643 ..... 23,434 ..... 24,088 ..... 26,075 ..... 26,512 .... 26,699 6. 1990 ...... X X X X X X X X X X X X ..... 13,988 ..... 23,714 ..... 24,311 ..... 25,953 .... 26,366 7. 1991 ...... X X X X X X X X X X X X X X X ..... 12,036 ..... 22,686 ..... 23,444 .... 24,309 8. 1992 ...... X X X X X X X X X X X X X X X X X X ..... 18,672 ..... 37,242 .... 38,911 9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ..... 29,285 .... 50,828 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 .... 32,891 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 X X X - ------------------------------------------------------------------------------------------------------------------------------------ ================================================================= (1) (12) (13) -------------- Years in Which (11) Number of Number of Losses Were Claims Claims Closed Incurred 1995 Closed With Without Loss Payment Loss Payment - ----------------------------------------------------------------- 1. Prior ..... ..... 13,510 X X X X X X 2. 1986 ...... ...... 9,782 X X X X X X 3. 1987 ...... ..... 12,490 X X X X X X 4. 1988 ...... ..... 20,368 X X X X X X 5. 1989 ...... ..... 26,988 X X X X X X 6. 1990 ...... ..... 27,078 X X X X X X 7. 1991 ...... ..... 26,396 X X X X X X 8. 1992 ...... ..... 40,324 X X X X X X 9. 1993 ...... ..... 53,156 X X X X X X 10. 1994 ...... ..... 56,605 X X X X X X 11. 1995 ...... ..... 39,067 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) (8) (9) (10) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ..... ........ 671 ...... 1,554 ...... 1,090 ........ 898 ........ 788 ........ 741 ......... 31 ......... 23 ........ 23 2. 1986 ...... ...... 1,881 ........ 189 ............ ............ ............ ............ ............ ............ ........... 3. 1987 ...... X X X ...... 5,453 ........ 654 ........ 292 ........ 165 ......... 50 ......... 53 ......... 51 ........ 51 4. 1988 ...... X X X X X X ..... 13,034 ...... 3,152 ...... 2,740 ...... 1,209 ........ 697 ........ 845 ....... 590 5. 1989 ...... X X X X X X X X X ..... 12,994 ...... 7,879 ...... 6,541 ...... 4,747 ...... 3,910 ..... 2,259 6. 1990 ...... X X X X X X X X X X X X ..... 13,382 ...... 6,966 ...... 5,283 ...... 3,996 ..... 3,335 7. 1991 ...... X X X X X X X X X X X X X X X ...... 6,125 ...... 4,939 ...... 4,342 ..... 4,182 8. 1992 ...... X X X X X X X X X X X X X X X X X X ..... 12,642 ...... 4,079 ..... 3,005 9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ..... 15,812 ..... 4,043 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 .... 15,821 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 X X X - ------------------------------------------------------------------------------------------------------------------------------------ ================================= (1) ---------------- Years in Which (11) Losses Were Incurred 1995 - --------------------------------- 1. Prior ..... ............ 15 2. 1986 ...... ............... 3. 1987 ...... ............ 51 4. 1988 ...... ........... 303 5. 1989 ...... ......... 1,707 6. 1990 ...... ......... 2,732 7. 1991 ...... ......... 3,114 8. 1992 ...... ......... 2,251 9. 1993 ...... ......... 2,839 10. 1994 ...... ......... 5,375 11. 1995 ...... ........ 23,627 - ---------------------------------
75 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ............. ............. ............. 2. 1986 ............... ........... ................ ............... ............. ............. ............. 3. 1987 ............... ........... ................ ............... ............. ............. ............. 4. 1988 ............... ........... ................ ............... ............. ............. ............. 5. 1989 ............... ........... ................ ............... ............. ............. ............. 6. 1990 ............... ........... ................ ............... ............. ............. ............. 7. 1991 ............... ........... ................ ............... ............. ............. ............. 8. 1992 ............... ........... ................ ............... ............. ............. ............. 9. 1993 ............... ........... ................ ............... ............. ............. ............. 10. 1994 ............ 63 ........ 45 ............. 18 ........... 152 ......... 110 .......... 11 ........... 8 11. 1995 ........... 571 ....... 335 ............ 236 ........... 452 ......... 309 .......... 49 .......... 34 - ------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ........... 604 ......... 419 .......... 60 .......... 42 - ------------------------------------------------------------------------------------------------------------------------- ====================================================================================== (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 .............. .............. .............. X X X 2. 1986 .............. .............. .............. .............. 3. 1987 .............. .............. .............. .............. 4. 1988 .............. .............. .............. .............. 5. 1989 .............. .............. .............. .............. 6. 1990 .............. .............. .............. .............. 7. 1991 .............. .............. .............. .............. 8. 1992 .............. .............. .............. .............. 9. 1993 .............. .............. .............. .............. 10. 1994 .............. ............ 6 ........... 51 ........... 14 11. 1995 .............. ........... 16 .......... 174 .......... 134 - -------------------------------------------------------------------------------------- 12. TOTALS .............. ........... 22 .......... 225 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 ............ .............. .............. ............. .............. ........... ............ ............ 2. 1986 ............ .............. .............. ............. .............. ........... ............ ............ 3. 1987 ............ .............. .............. ............. .............. ........... ............ ............ 4. 1988 ............ .............. .............. ............. .............. ........... ............ ............ 5. 1989 ............ .............. .............. ............. .............. ........... ............ ............ 6. 1990 ............ .............. .............. ............. .............. ........... ............ ............ 7. 1991 ............ .............. .............. ............. .............. ........... ............ ............ 8. 1992 ............ .............. .............. ............. .............. ........... ............ ............ 9. 1993 ............ .............. .............. ............. .............. ........... ............ ............ 10. 1994 ............ .............. ........... 15 .......... 10 .............. ........... .......... 1 .......... 1 11. 1995 ........ 146 ........... 95 .......... 100 .......... 59 ........... 15 ........ 10 .......... 9 .......... 7 - ---------------------------------------------------------------------------------------------------------------------------- 12. TOTALS ........ 146 ........... 95 .......... 115 .......... 69 ........... 15 ........ 10 ......... 10 .......... 8 - ---------------------------------------------------------------------------------------------------------------------------- ========================================================================== (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 .............. ............. ............ .............. 2. 1986 .............. ............. ............ .............. 3. 1987 .............. ............. ............ .............. 4. 1988 .............. ............. ............ .............. 5. 1989 .............. ............. ............ .............. 6. 1990 .............. ............. ............ .............. 7. 1991 .............. ............. ............ .............. 8. 1992 .............. ............. ............ .............. 9. 1993 .............. ............. ............ .............. 10. 1994 .............. ............. .......... 5 .............. 11. 1995 .............. ............. ......... 99 ........... 10 - -------------------------------------------------------------------------- 12. TOTALS .............. ............. ........ 104 ........... 10 - --------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME EXPENSES INCURRED (Incurred/Premiums Earned) VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X 2. 1986 .............. ............. ............... ............. ............... ............. ............... ............... 3. 1987 .............. ............. ............... ............. ............... ............. ............... ............... 4. 1988 .............. ............. ............... ............. ............... ............. ............... ............... 5. 1989 .............. ............. ............... ............. ............... ............. ............... ............... 6. 1990 .............. ............. ............... ............. ............... ............. ............... ............... 7. 1991 .............. ............. ............... ............. ............... ............. ............... ............... 8. 1992 .............. ............. ............... ............. ............... ............. ............... ............... 9. 1993 .............. ............. ............... ............. ............... ............. ............... ............... 10. 1994 .......... 185 ......... 129 ............ 56 ....... 293.7 ......... 286.7 ....... 311.1 ............... ............... 11. 1995 .......... 790 ......... 517 ........... 273 ....... 138.4 ......... 154.3 ....... 115.7 ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ ========================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ----------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ---------------------------------------------------------- 1. Prior X X X ............ ............... 2. 1986 ............... ............ ............... 3. 1987 ............... ............ ............... 4. 1988 ............... ............ ............... 5. 1989 ............... ............ ............... 6. 1990 ............... ............ ............... 7. 1991 ............... ............ ............... 8. 1992 ............... ............ ............... 9. 1993 ............... ............ ............... 10. 1994 ......... 100.0 .......... 5 ............... 11. 1995 ......... 100.0 ......... 92 ............. 7 - ---------------------------------------------------------- 12. TOTALS X X X ......... 97 ............. 7 - ----------------------------------------------------------
76 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 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 ............... ............. ............. ............. 2. 1986 ............... ........... ................ ............... ............. ............. ............. 3. 1987 ............... ........... ................ ............... ............. ............. ............. 4. 1988 ............... ........... ................ ............... ............. ............. ............. 5. 1989 ............... ........... ................ ............... ............. ............. ............. 6. 1990 ............... ........... ................ ............... ............. ............. ............. 7. 1991 ............... ........... ................ ............... ............. ............. ............. 8. 1992 ............... ........... ................ ............... ............. ............. ............. 9. 1993 ............... ........... ................ ............... ............. ............. ............. 10. 1994 ............... ........... ................ ............... ............. ............. ............. 11. 1995 ............... ........... ................ ............... ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............... ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- ===================================================================================== (1) (12) Years in ---------------------------------------------------- Which (9) (10) (11) Number of Premiums Total Claims Were Earned Salvage and Unallocated Net Paid Reported - and Losses Subrogation Less Expense (Cols. 5 - 6 Direct and Were Incur. Received Payments + 7 - 8 + 10) Assumed - ------------------------------------------------------------------------------------- 1. Prior .............. .............. .............. X X X 2. 1986 .............. .............. .............. .............. 3. 1987 .............. .............. .............. .............. 4. 1988 .............. .............. .............. .............. 5. 1989 .............. .............. .............. .............. 6. 1990 .............. .............. .............. .............. 7. 1991 .............. .............. .............. .............. 8. 1992 .............. .............. .............. .............. 9. 1993 .............. .............. .............. .............. 10. 1994 .............. .............. .............. .............. 11. 1995 .............. .............. .............. .............. - ------------------------------------------------------------------------------------- 12. TOTALS .............. .............. .............. 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 ............ .............. .............. ............. .............. ........... ............ ............ 2. 1986 ............ .............. .............. ............. .............. ........... ............ ............ 3. 1987 ............ .............. .............. . 4. 1988 ............ .............. .............. . 5. 1989 ............ .............. .............. . 6. 1990 ............ .............. .............. . N O N E 7. 1991 ............ .............. .............. . 8. 1992 ............ .............. .............. . 9. 1993 ............ .............. .............. . 10. 1994 ............ .............. .............. . 11. 1995 ............ .............. .............. . - ---------------------------------------------------------------------------------------------------------------------------- 12. TOTALS ............ .............. .............. ............. .............. ........... ............ ............ - ---------------------------------------------------------------------------------------------------------------------------- ===================================================================================== (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 .............. ............. ............ .............. 2. 1986 .............. ............. ............ .............. 3. 1987 .............. ............. ............ .............. 4. 1988 .............. ............. ............ .............. 5. 1989 .............. ............. ............ .............. 6. 1990 .............. ............. ............ .............. 7. 1991 .............. ............. ............ .............. 8. 1992 .............. ............. ............ .............. 9. 1993 .............. ............. ............ .............. 10. 1994 .............. ............. ............ .............. 11. 1995 .............. ............. ............ .............. - ------------------------------------------------------------------------------------- 12. TOTALS .............. ............. ............ .............. - -------------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME EXPENSES INCURRED (Incurred/Premiums Earned) VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X ............... ............... 2. 1986 .............. ............. ............... ............. ............... ............. ............... ............... 3. 1987 .............. ............. ............... ............. ............... ............. ............... ............... 4. 1988 .............. ............. ............... ............. ............... ............. ............... ............... 5. 1989 .............. ............. ............... ............. ............... ............. ............... ............... 6. 1990 .............. ............. ............... ............. ............... ............. ............... ............... 7. 1991 .............. ............. ............... ............. ............... ............. ............... ............... 8. 1992 .............. ............. ............... ............. ............... ............. ............... ............... 9. 1993 .............. ............. ............... ............. ............... ............. ............... ............... 10. 1994 .............. ............. ............... ............. ............... ............. ............... ............... 11. 1995 .............. ............. ............... ............. ............... ............. ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ =========================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ----------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ----------------------------------------------------------- 1. Prior X X X ............ ............... 2. 1986 ............... ............ ............... 3. 1987 ............... ............ ............... 4. 1988 ............... ............ ............... 5. 1989 ............... ............ ............... 6. 1990 ............... ............ ............... 7. 1991 ............... ............ ............... 8. 1992 ............... ............ ............... 9. 1993 ............... ............ ............... 10. 1994 ............... ............ ............... 11. 1995 ............... ............ ............... - ---------------------------------------------------------- 12. TOTALS X X X ............ ............... - ----------------------------------------------------------
77 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ............. ............. ............. 2. 1986 ............... ........... ................ ............... ............. ............. ............. 3. 1987 ............... ........... ................ ............... ............. ............. ............. 4. 1988 ............... ........... ................ ............... ............. ............. ............. 5. 1989 ............... ........... ................ ............... ............. ............. ............. 6. 1990 ............... ........... ................ ............... ............. ............. ............. 7. 1991 ............... ........... ................ ............... ............. ............. ............. 8. 1992 ............... ........... ................ ............... ............. ............. ............. 9. 1993 ............... ........... ................ ............... ............. ............. ............. 10. 1994 ............... ........... ................ ............... ............. ............. ............. 11. 1995 ........... 189 ........ 25 ............ 164 ............ 34 ........... 4 ............. ............. - -------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............ 34 ........... 4 ............. ............ - -------------------------------------------------------------------------------------------------------------------------- ============================================================================= (1) Years in ------------------------------------------- (12) 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 .............. .............. .............. X X X 2. 1986 .............. .............. .............. .............. 3. 1987 .............. .............. .............. .............. 4. 1988 .............. .............. .............. .............. 5. 1989 .............. .............. .............. .............. 6. 1990 .............. .............. .............. .............. 7. 1991 .............. .............. .............. .............. 8. 1992 .............. .............. .............. .............. 9. 1993 .............. .............. .............. .............. 10. 1994 .............. .............. .............. .............. 11. 1995 .............. ........... 12 ........... 42 ........... 53 - ----------------------------------------------------------------------------- 12. TOTALS .............. ........... 12 ........... 42 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 ............ .............. .............. ............. .............. ........... ............ ............ 2. 1986 ............ .............. .............. ............. .............. ........... ............ ............ 3. 1987 ............ .............. .............. ............. .............. ........... ............ ............ 4. 1988 ............ .............. .............. ............. .............. ........... ............ ............ 5. 1989 ............ .............. .............. ............. .............. ........... ............ ............ 6. 1990 ............ .............. .............. ............. .............. ........... ............ ............ 7. 1991 ............ .............. .............. ............. .............. ........... ............ ............ 8. 1992 ............ .............. .............. ............. .............. ........... ............ ............ 9. 1993 ............ .............. .............. ............. .............. ........... ............ ............ 10. 1994 ............ .............. .............. ............. .............. ........... ............ ............ 11. 1995 ......... 90 ........... 12 ........... 31 ........... 4 .............. ........... ............ ............ - ---------------------------------------------------------------------------------------------------------------------------- 12. TOTALS ......... 90 ........... 12 ........... 31 ........... 4 .............. ........... ............ ............ - ---------------------------------------------------------------------------------------------------------------------------- ========================================================================== (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 .............. ............. ............ .............. 2. 1986 .............. ............. ............ .............. 3. 1987 .............. ............. ............ .............. 4. 1988 .............. ............. ............ .............. 5. 1989 .............. ............. ............ .............. 6. 1990 .............. ............. ............ .............. 7. 1991 .............. ............. ............ .............. 8. 1992 .............. ............. ............ .............. 9. 1993 .............. ............. ............ .............. 10. 1994 .............. ............. ............ .............. 11. 1995 .............. ............. ........ 105 ........... 34 - -------------------------------------------------------------------------- 12. TOTALS .............. ............. ........ 105 ........... 34 - --------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X ............... ............... 2. 1986 .............. ............. ............... ............. ............... ............. ............... ............... 3. 1987 .............. ............. ............... ............. ............... ............. ............... ............... 4. 1988 .............. ............. ............... ............. ............... ............. ............... ............... 5. 1989 .............. ............. ............... ............. ............... ............. ............... ............... 6. 1990 .............. ............. ............... ............. ............... ............. ............... ............... 7. 1991 .............. ............. ............... ............. ............... ............. ............... ............... 8. 1992 .............. ............. ............... ............. ............... ............. ............... ............... 9. 1993 .............. ............. ............... ............. ............... ............. ............... ............... 10. 1994 .............. ............. ............... ............. ............... ............. ............... ............... 11. 1995 .......... 167 .......... 20 ........... 147 ........ 88.4 .......... 80.0 ........ 89.6 ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ ========================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ----------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ---------------------------------------------------------- 1. Prior X X X ............ ............... 2. 1986 ............... ............ ............... 3. 1987 ............... ............ ............... 4. 1988 ............... ............ ............... 5. 1989 ............... ............ ............... 6. 1990 ............... ............ ............... 7. 1991 ............... ............ ............... 8. 1992 ............... ............ ............... 9. 1993 ............... ............ ............... 10. 1994 ............... ............ ............... 11. 1995 ......... 100.0 ........ 105 ............... - ---------------------------------------------------------- 12. TOTALS X X X ........ 105 ............... - ----------------------------------------------------------
78 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ............. ............. ............. 2. 1986 ............... ........... ................ ............... ............. ............. ............. 3. 1987 ............... ........... ................ ............... ............. ............. ............. 4. 1988 ............... ........... ................ ............... ............. ............. ............. 5. 1989 ............... ........... ................ ............... ............. ............. ............. 6. 1990 ............... ........... ................ ............... ............. ............. ............. 7. 1991 ............... ........... ................ ............... ............. ............. ............. 8. 1992 ............... ........... ................ ............... ............. ............. ............. 9. 1993 ............... ........... ................ ............... ............. ............. ............. 10. 1994 ............... ........... ................ ............... ............. ............. ............. 11. 1995 ............. 6 ......... 1 .............. 5 ............. 1 ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............. 1 ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- ====================================================================================== (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 .............. .............. .............. X X X 2. 1986 .............. .............. .............. .............. 3. 1987 .............. .............. .............. .............. 4. 1988 .............. .............. .............. .............. 5. 1989 .............. .............. .............. .............. 6. 1990 .............. .............. .............. .............. 7. 1991 .............. .............. .............. .............. 8. 1992 .............. .............. .............. .............. 9. 1993 .............. .............. .............. .............. 10. 1994 .............. .............. .............. .............. 11. 1995 .............. .............. ............ 1 ............ 4 - ------------------------------------------------------------------------------------ 12. TOTALS .............. .............. ............ 1 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 ............ .............. .............. ............. .............. ........... ............ ............ 2. 1986 ............ .............. .............. ............. .............. ........... ............ ............ 3. 1987 ............ .............. .............. ............. .............. ........... ............ ............ 4. 1988 ............ .............. .............. ............. .............. ........... ............ ............ 5. 1989 ............ .............. .............. ............. .............. ........... ............ ............ 6. 1990 ............ .............. .............. ............. .............. ........... ............ ............ 7. 1991 ............ .............. .............. ............. .............. ........... ............ ............ 8. 1992 ............ .............. .............. ............. .............. ........... ............ ............ 9. 1993 ............ .............. .............. ............. .............. ........... ............ ............ 10. 1994 ............ .............. .............. ............. .............. ........... ............ ............ 11. 1995 .......... 1 .............. ............ 1 ............. .............. ........... ............ ............ - ---------------------------------------------------------------------------------------------------------------------------- 12. TOTALS .......... 1 .............. ............ 1 ............. .............. ........... ............ ............ - ---------------------------------------------------------------------------------------------------------------------------- ========================================================================== (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 .............. ............. ............ .............. 2. 1986 .............. ............. ............ .............. 3. 1987 .............. ............. ............ .............. 4. 1988 .............. ............. ............ .............. 5. 1989 .............. ............. ............ .............. 6. 1990 .............. ............. ............ .............. 7. 1991 .............. ............. ............ .............. 8. 1992 .............. ............. ............ .............. 9. 1993 .............. ............. ............ .............. 10. 1994 .............. ............. ............ .............. 11. 1995 .............. ............. .......... 2 ............ 3 - -------------------------------------------------------------------------- 12. TOTALS .............. ............. .......... 2 ............ 3 - --------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X ............... ............... 2. 1986 .............. ............. ............... ............. ............... ............. ............... ............... 3. 1987 .............. ............. ............... ............. ............... ............. ............... ............... 4. 1988 .............. ............. ............... ............. ............... ............. ............... ............... 5. 1989 .............. ............. ............... ............. ............... ............. ............... ............... 6. 1990 .............. ............. ............... ............. ............... ............. ............... ............... 7. 1991 .............. ............. ............... ............. ............... ............. ............... ............... 8. 1992 .............. ............. ............... ............. ............... ............. ............... ............... 9. 1993 .............. ............. ............... ............. ............... ............. ............... ............... 10. 1994 .............. ............. ............... ............. ............... ............. ............... ............... 11. 1995 ............ 3 ............. ............. 3 ........ 50.0 ............... ........ 60.0 ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ ========================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ----------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ---------------------------------------------------------- 1. Prior X X X ............ ............... 2. 1986 ............... ............ ............... 3. 1987 ............... ............ ............... 4. 1988 ............... ............ ............... 5. 1989 ............... ............ ............... 6. 1990 ............... ............ ............... 7. 1991 ............... ............ ............... 8. 1992 ............... ............ ............... 9. 1993 ............... ............ ............... 10. 1994 ............... ............ ............... 11. 1995 ......... 100.0 .......... 2 ............... - ---------------------------------------------------------- 12. TOTALS X X X .......... 2 ............... - ----------------------------------------------------------
79 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ............. ............. ............. 2. 1986 ............... ........... ................ ............... ............. ............. ............. 3. 1987 ............... ........... ................ ............... ............. ............. ............. 4. 1988 ............... ........... ................ ............... ............. ............. ............. 5. 1989 ............... ........... ................ ............... ............. ............. ............. 6. 1990 ............... ........... ................ ............... ............. ............. ............. 7. 1991 ............... ........... ................ ............... ............. ............. ............. 8. 1992 ........... 131 ........ 87 ............. 44 ............ 35 .......... 20 ........... 9 ........... 8 9. 1993 ......... 1,639 ..... 1,209 ............ 430 ........... 496 ......... 361 ......... 179 ......... 124 10. 1994 ......... 3,792 ..... 2,898 ............ 894 ......... 1,801 ....... 1,367 ......... 415 ......... 319 11. 1995 ......... 6,766 ..... 4,790 .......... 1,976 ........... 939 ......... 555 ......... 143 .......... 96 - ------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ......... 3,271 ....... 2,303 ......... 746 ......... 547 - ------------------------------------------------------------------------------------------------------------------------- ============================================================================ (1) Years in ------------------------------------------------ (12) 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 .............. ............ 1 ............ 1 X X X 2. 1986 .............. .............. .............. .............. 3. 1987 .............. .............. .............. .............. 4. 1988 .............. .............. .............. .............. 5. 1989 .............. .............. .............. .............. 6. 1990 .............. .............. .............. .............. 7. 1991 .............. .............. .............. .............. 8. 1992 .............. ........... 19 ........... 35 ............ 5 9. 1993 .............. ........... 53 .......... 243 ........... 60 10. 1994 .............. ........... 64 .......... 594 .......... 134 11. 1995 .............. ........... 21 .......... 452 .......... 153 - ---------------------------------------------------------------------------- 12. TOTALS .............. .......... 158 ........ 1,325 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 .......... 6 ............ 3 ............ 7 ........... 4 .............. ........... .......... 9 .......... 6 2. 1986 ............ .............. .............. ............. .............. ........... ............ ............ 3. 1987 ............ .............. .............. ............. .............. ........... ............ ............ 4. 1988 ............ .............. .............. ............. .............. ........... ............ ............ 5. 1989 ............ .............. .............. ............. .............. ........... ............ ............ 6. 1990 ............ .............. .............. ............. .............. ........... ............ ............ 7. 1991 ............ .............. .............. ............. .............. ........... ............ ............ 8. 1992 ......... 32 ........... 22 .............. ............. ............ 7 ......... 5 ............ ............ 9. 1993 ......... 81 ........... 55 .............. ............. ........... 15 ........ 10 ............ ............ 10. 1994 ........ 317 .......... 249 .......... 729 ......... 589 ........... 50 ........ 40 ......... 75 ......... 59 11. 1995 ...... 1,001 .......... 704 ........ 1,972 ....... 1,548 .......... 138 ........ 97 ........ 205 ........ 158 - -------------------------------------------------------------------------------------------------------------------------- 12. TOTALS ...... 1,437 ........ 1,033 ........ 2,708 ....... 2,141 .......... 210 ....... 152 ........ 289 ........ 223 - -------------------------------------------------------------------------------------------------------------------------- ========================================================================== (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 .............. .......... 20 ......... 29 ............ 1 2. 1986 .............. ............. ............ .............. 3. 1987 .............. ............. ............ .............. 4. 1988 .............. ............. ............ .............. 5. 1989 .............. ............. ............ .............. 6. 1990 .............. ............. ............ .............. 7. 1991 .............. ............. ............ .............. 8. 1992 .............. ............. ......... 12 ............ 1 9. 1993 .............. ............. ......... 31 ............ 3 10. 1994 .............. ............. ........ 234 ........... 22 11. 1995 .............. ............. ........ 809 ........... 64 - -------------------------------------------------------------------------- 12. TOTALS .............. .......... 20 ...... 1,115 ........... 91 - --------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X ............... ............... 2. 1986 .............. ............. ............... ............. ............... ............. ............... ............... 3. 1987 .............. ............. ............... ............. ............... ............. ............... ............... 4. 1988 .............. ............. ............... ............. ............... ............. ............... ............... 5. 1989 .............. ............. ............... ............. ............... ............. ............... ............... 6. 1990 .............. ............. ............... ............. ............... ............. ............... ............... 7. 1991 .............. ............. ............... ............. ............... ............. ............... ............... 8. 1992 .......... 102 .......... 55 ............ 47 ........ 77.9 .......... 63.2 ....... 106.8 ............... ............... 9. 1993 .......... 824 ......... 550 ........... 274 ........ 50.3 .......... 45.5 ........ 63.7 ............... ............... 10. 1994 ........ 3,450 ....... 2,623 ........... 827 ........ 91.0 .......... 90.5 ........ 92.5 ............... ............... 11. 1995 ........ 4,420 ....... 3,158 ......... 1,262 ........ 65.3 .......... 65.9 ........ 63.9 ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ ========================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ------------------------------ Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ---------------------------------------------------------- 1. Prior X X X .......... 6 ............ 23 2. 1986 ............... ............ ............... 3. 1987 ............... ............ ............... 4. 1988 ............... ............ ............... 5. 1989 ............... ............ ............... 6. 1990 ............... ............ ............... 7. 1991 ............... ............ ............... 8. 1992 ............... ......... 10 ............. 2 9. 1993 ......... 100.0 ......... 26 ............. 5 10. 1994 ......... 100.0 ........ 208 ............ 26 11. 1995 ......... 100.0 ........ 721 ............ 88 - ---------------------------------------------------------- 12. TOTALS X X X ........ 971 ........... 144 - ----------------------------------------------------------
80 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ............. ............. ............. 2. 1986 ............... ........... ................ ............... ............. ............. ............. 3. 1987 ............... ........... ................ ............... ............. ............. ............. 4. 1988 ............... ........... ................ ............... ............. ............. ............. 5. 1989 ............... ........... ................ ............... ............. ............. ............. 6. 1990 ............... ........... ................ ............... ............. ............. ............. 7. 1991 ............... ........... ................ ............... ............. ............. ............. 8. 1992 ............... ........... ................ ............... ............. ............. ............. 9. 1993 ............... ........... ................ ............... ............. ............. ............. 10. 1994 ............... ........... ................ ............... ............. ............. ............. 11. 1995 ............... ........... ................ ............... ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............... ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- ====================================================================================== (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 .............. .............. .............. X X X 2. 1986 .............. .............. .............. .............. 3. 1987 .............. .............. .............. .............. 4. 1988 .............. .............. .............. .............. 5. 1989 .............. .............. .............. .............. 6. 1990 .............. .............. .............. .............. 7. 1991 .............. .............. .............. .............. 8. 1992 .............. .............. .............. .............. 9. 1993 .............. .............. .............. .............. 10. 1994 .............. .............. .............. .............. 11. 1995 .............. .............. .............. .............. - ------------------------------------------------------------------------------------ 12. TOTALS .............. .............. .............. 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 ............ .............. .............. ............. .............. ........... ............ ............ 2. 1986 ............ .............. .............. ............. .............. ........... ............ ............ 3. 1987 ............ .............. .............. . 4. 1988 ............ .............. .............. . 5. 1989 ............ .............. .............. . 6. 1990 ............ .............. .............. . N O N E 7. 1991 ............ .............. .............. . 8. 1992 ............ .............. .............. . 9. 1993 ............ .............. .............. . 10. 1994 ............ .............. .............. . 11. 1995 ............ .............. .............. . - ---------------------------------------------------------------------------------------------------------------------------- 12. TOTALS ............ .............. .............. ............. .............. ........... ............ ............ - ---------------------------------------------------------------------------------------------------------------------------- ========================================================================== (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 .............. ............. ............ .............. 2. 1986 .............. ............. ............ .............. 3. 1987 .............. ............. ............ .............. 4. 1988 .............. ............. ............ .............. 5. 1989 .............. ............. ............ .............. 6. 1990 .............. ............. ............ .............. 7. 1991 .............. ............. ............ .............. 8. 1992 .............. ............. ............ .............. 9. 1993 .............. ............. ............ .............. 10. 1994 .............. ............. ............ .............. 11. 1995 .............. ............. ............ .............. - -------------------------------------------------------------------------- 12. TOTALS .............. ............. ............ .............. - --------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X ............... ............... 2. 1986 .............. ............. ............... ............. ............... ............. ............... ............... 3. 1987 .............. ............. ............... ............. ............... ............. ............... ............... 4. 1988 .............. ............. ............... ............. ............... ............. ............... ............... 5. 1989 .............. ............. ............... ............. ............... ............. ............... ............... 6. 1990 .............. ............. ............... ............. ............... ............. ............... ............... 7. 1991 .............. ............. ............... ............. ............... ............. ............... ............... 8. 1992 .............. ............. ............... ............. ............... ............. ............... ............... 9. 1993 .............. ............. ............... ............. ............... ............. ............... ............... 10. 1994 .............. ............. ............... ............. ............... ............. ............... ............... 11. 1995 .............. ............. ............... ............. ............... ............. ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ ========================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ----------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ---------------------------------------------------------- 1. Prior X X X ............ ............... 2. 1986 ............... ............ ............... 3. 1987 ............... ............ ............... 4. 1988 ............... ............ ............... 5. 1989 ............... ............ ............... 6. 1990 ............... ............ ............... 7. 1991 ............... ............ ............... 8. 1992 ............... ............ ............... 9. 1993 ............... ............ ............... 10. 1994 ............... ............ ............... 11. 1995 ............... ............ ............... - ---------------------------------------------------------- 12. TOTALS X X X ............ ............... - ----------------------------------------------------------
81 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ............. ............. ............. 2. 1986 ............... ........... ................ ............... ............. ............. ............. 3. 1987 ............... ........... ................ ............... ............. ............. ............. 4. 1988 ............... ........... ................ ............... ............. ............. ............. 5. 1989 ............... ........... ................ ............... ............. ............. ............. 6. 1990 ............... ........... ................ ............... ............. ............. ............. 7. 1991 ............... ........... ................ ............... ............. ............. ............. 8. 1992 ............... ........... ................ ............... ............. ............. ............. 9. 1993 ............... ........... ................ ............... ............. ............. ............. 10. 1994 ............... ........... ................ ............... ............. ............. ............. 11. 1995 ............... ........... ................ ............... ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............... ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- ====================================================================================== (1) (12) Years in -------------------------------------------------------------- Which (9) (10) (11) Number of Premiums Total Claims Were Earned Salvage Unallocated Net Paid Reported - and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and Were Incur. Received Payments + 7 - 8 + 10) Assumed - ------------------------------------------------------------------------------------ 1. Prior .............. .............. .............. X X X 2. 1986 .............. .............. .............. .............. 3. 1987 .............. .............. .............. .............. 4. 1988 .............. .............. .............. .............. 5. 1989 .............. .............. .............. .............. 6. 1990 .............. .............. .............. .............. 7. 1991 .............. .............. .............. .............. 8. 1992 .............. .............. .............. .............. 9. 1993 .............. .............. .............. .............. 10. 1994 .............. .............. .............. .............. 11. 1995 .............. .............. .............. .............. - ------------------------------------------------------------------------------------ 12. TOTALS .............. .............. .............. 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 ............ .............. .............. ............. .............. ........... ............ ............ 2. 1986 ............ .............. .............. ............. .............. ........... ............ ............ 3. 1987 ............ .............. .............. . 4. 1988 ............ .............. .............. . 5. 1989 ............ .............. .............. . 6. 1990 ............ .............. .............. . N O N E 7. 1991 ............ .............. .............. . 8. 1992 ............ .............. .............. . 9. 1993 ............ .............. .............. . 10. 1994 ............ .............. .............. . 11. 1995 ............ .............. .............. . - ---------------------------------------------------------------------------------------------------------------------------- 12. TOTALS ............ .............. .............. ............. .............. ........... ............ ............ - ---------------------------------------------------------------------------------------------------------------------------- ========================================================================== (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 .............. ............. ............ .............. 2. 1986 .............. ............. ............ .............. 3. 1987 .............. ............. ............ .............. 4. 1988 .............. ............. ............ .............. 5. 1989 .............. ............. ............ .............. 6. 1990 .............. ............. ............ .............. 7. 1991 .............. ............. ........... .............. 8. 1992 .............. ............. ............ .............. 9. 1993 .............. ............. ............ .............. 10. 1994 .............. ............. ............ .............. 11. 1995 .............. ............. ............ .............. - -------------------------------------------------------------------------- 12. TOTALS .............. ............. ............ .............. - --------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME EXPENSES INCURRED (Incurred/Premiums Earned) VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X ............... ............... 2. 1986 .............. ............. ............... ............. ............... ............. ............... ............... 3. 1987 .............. ............. ............... ............. ............... ............. ............... ............... 4. 1988 .............. ............. ............... ............. ............... ............. ............... ............... 5. 1989 .............. ............. ............... ............. ............... ............. ............... ............... 6. 1990 .............. ............. ............... ............. ............... ............. ............... ............... 7. 1991 .............. ............. ............... ............. ............... ............. ............... ............... 8. 1992 .............. ............. ............... ............. ............... ............. ............... ............... 9. 1993 .............. ............. ............... ............. ............... ............. ............... ............... 10. 1994 .............. ............. ............... ............. ............... ............. ............... ............... 11. 1995 .............. ............. ............... ............. ............... ............. ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ ========================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ----------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ---------------------------------------------------------- 1. Prior X X X ............ ............... 2. 1986 ............... ............ ............... 3. 1987 ............... ............ ............... 4. 1988 ............... ............ ............... 5. 1989 ............... ............ ............... 6. 1990 ............... ............ ............... 7. 1991 ............... ............ ............... 8. 1992 ............... ............ ............... 9. 1993 ............... ............ ............... 10. 1994 ............... ............ ............... 11. 1995 ............... ............ ............... - ---------------------------------------------------------- 12. TOTALS X X X ............ ............... - ----------------------------------------------------------
82 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ............. ............. ............. 2. 1986 ............... ........... ................ ............... ............. ............. ............. 3. 1987 ............... ........... ................ ............... ............. ............. ............. 4. 1988 ............... ........... ................ ............... ............. ............. ............. 5. 1989 ............... ........... ................ ............... ............. ............. ............. 6. 1990 ............... ........... ................ ............... ............. ............. ............. 7. 1991 ............... ........... ................ ............... ............. ............. ............. 8. 1992 ............... ........... ................ ............... ............. ............. ............. 9. 1993 ............... ........... ................ ............... ............. ............. ............. 10. 1994 ............... ........... ................ ............... ............. ............. ............. 11. 1995 ............... ........... ................ ............... ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............... ............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------- ====================================================================================== (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 .............. .............. .............. X X X 2. 1986 .............. .............. .............. X X X 3. 1987 .............. .............. .............. X X X 4. 1988 .............. .............. .............. X X X 5. 1989 .............. .............. .............. X X X 6. 1990 .............. .............. .............. X X X 7. 1991 .............. .............. .............. X X X 8. 1992 .............. .............. .............. X X X 9. 1993 .............. .............. .............. X X X 10. 1994 .............. .............. .............. X X X 11. 1995 .............. .............. .............. X X X - ------------------------------------------------------------------------------------ 12. TOTALS .............. .............. .............. 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 ............ .............. .............. ............. .............. ........... ............ ............ 2. 1986 ............ .............. .............. ............. .............. ........... ............ ............ 3. 1987 ............ .............. .............. . 4. 1988 ............ .............. .............. . 5. 1989 ............ .............. .............. . 6. 1990 ............ .............. .............. . 7. 1991 ............ .............. .............. . N O N E 8. 1992 ............ .............. .............. . 9. 1993 ............ .............. .............. . 10. 1994 ............ .............. .............. . 11. 1995 ............ .............. .............. ............. .............. ........... ............ ............ - ---------------------------------------------------------------------------------------------------------------------------- 12. TOTALS ............ .............. .............. ............. .............. ........... ............ ............ - ---------------------------------------------------------------------------------------------------------------------------- ========================================================================== (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 .............. ............. ............ .............. 2. 1986 .............. ............. ............ .............. 3. 1987 .............. ............. ............ .............. 4. 1988 .............. ............. ............ .............. 5. 1989 .............. ............. ............ .............. 6. 1990 .............. ............. ............ .............. 7. 1991 .............. ............. ............ .............. 8. 1992 .............. ............. ............ .............. 9. 1993 .............. ............. ............ .............. 10. 1994 .............. ............. ............ .............. 11. 1995 .............. ............. ............ .............. - -------------------------------------------------------------------------- 12. TOTALS .............. ............. ............ .............. - --------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS EXPENSES INCURRED LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME (Incurred/Premiums Earned) VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X ............... ............... 2. 1986 .............. ............. ............... ............. ............... ............. ............... ............... 3. 1987 .............. ............. ............... ............. ............... ............. ............... ............... 4. 1988 .............. ............. ............... ............. ............... ............. ............... ............... 5. 1989 .............. ............. ............... ............. ............... ............. ............... ............... 6. 1990 .............. ............. ............... ............. ............... ............. ............... ............... 7. 1991 .............. ............. ............... ............. ............... ............. ............... ............... 8. 1992 .............. ............. ............... ............. ............... ............. ............... ............... 9. 1993 .............. ............. ............... ............. ............... ............. ............... ............... 10. 1994 .............. ............. ............... ............. ............... ............. ............... ............... 11. 1995 .............. ............. ............... ............. ............... ............. ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X ............... ............... - ------------------------------------------------------------------------------------------------------------------------------------ ========================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ----------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ---------------------------------------------------------- 1. Prior X X X ............ ............... 2. 1986 ............... ............ ............... 3. 1987 ............... ............ ............... 4. 1988 ............... ............ ............... 5. 1989 ............... ............ ............... 6. 1990 ............... ............ ............... 7. 1991 ............... ............ ............... 8. 1992 ............... ............ ............... 9. 1993 ............... ............ ............... 10. 1994 ............... ............ ............... 11. 1995 ............... ............ ............... - ---------------------------------------------------------- 12. TOTALS X X X ............ ............... - ----------------------------------------------------------
83 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............ 11 .......... 6 ............. 23 .......... 16 2. 1986 ........... 203 ............ ...... 203 ........... 143 ............. ................. .............. 3. 1987 ........... 194 ............ ...... 194 ............ 74 ............. ................. .............. 4. 1988 ............ 25 ............ ....... 25 ................ ............. ................. .............. 5. 1989 ................ ............ ........... ................ ............. ................. .............. 6. 1990 ................ ............ ........... ................ ............. ................. .............. 7. 1991 ................ ............ ........... ................ ............. ................. .............. 8. 1992 ................ ............ ........... ................ ............. ................. .............. 9. 1993 ................ ............ ........... ................ ............. ................. .............. 10. 1994 ................ ............ ........... ................ ............. ................. .............. 11. 1995 ..........1,848 .......1,449 ...... 399 ............. 4 .......... 3 ............. 12 ........... 9 - ------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X ........... 232 .......... 9 ............. 35 .......... 25 - ------------------------------------------------------------------------------------------------------------------------ ================================================================================ (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 ................ ............. 1 ............. 13 X X X 2. 1986 ................ ............ 69 ............ 212 .......... 574 3. 1987 ................ ............ 14 ............. 88 .......... 300 4. 1988 ................ ............... ................ .............. 5. 1989 ................ ............... ................ .............. 6. 1990 ................ ............... ................ .............. 7. 1991 ................ ............... ................ .............. 8. 1992 ................ ............... ................ .............. 9. 1993 ................ ............... ................ .............. 10. 1994 ................ ............... ................ .............. 11. 1995 ................ ............. 4 .............. 8 ........... 34 - -------------------------------------------------------------------------------- 12. TOTALS ................ ............ 88 ............ 321 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 ............ 296 ......... 158 ........ 10 .............. 9 .......... 29 .............. 16 ........... 12 ........... 6 2. 1986 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. ............. 10. 1994 ................ ............. ........... ................ ............. ................. .............. ............. 11. 1995 ............ 190 ......... 149 ..... 1,084 ............ 852 .......... 44 .............. 34 .......... 110 .......... 85 - ----------------------------------------------------------------------------------------------------------------------------------- 12. TOTALS............ 486 ......... 307 ..... 1,094 ............ 861 .......... 73 .............. 50 .......... 122 .......... 91 - ----------------------------------------------------------------------------------------------------------------------------------- =============================================================================== (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 ................ ............ 40 ............ 198 ........... 13 2. 1986 ................ ............... ................ .............. 3. 1987 ................ ............... ................ .............. 4. 1988 ................ ............... ................ .............. 5. 1989 ................ ............... ................ .............. 6. 1990 ................ ............... ................ .............. 7. 1991 ................ ............... ................ .............. 8. 1992 ................ ............... ................ .............. 9. 1993 ................ ............... ................ .............. 10. 1994 ................ ............... ................ .............. 11. 1995 ................ ............... ............ 308 ........... 29 - ------------------------------------------------------------------------------- 12. TOTALS ................ ............ 40 ............ 506 ........... 42 - -------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1986 ............ 212 ............. ....... 212 .......... 104.4 ............. ........... 104.4 .............. ............. 3. 1987 ............. 88 ............. ........ 88 ........... 45.4 ............. ............ 45.4 .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. ............. 10. 1994 ................ ............. ........... ................ ............. ................. .............. ............. 11. 1995 .......... 1,448 ....... 1,132 ....... 316 ........... 78.4 ........ 78.1 ............ 79.2 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ........... 139 ............. 59 2. 1986 ................ ............... ................ 3. 1987 ................ ............... ................ 4. 1988 ................ ............... ................ 5. 1989 ................ ............... ................ 6. 1990 ................ ............... ................ 7. 1991 ................ ............... ................ 8. 1992 ................ ............... ................ 9. 1993 ................ ............... ................ 10. 1994 ................ ............... ................ 11. 1995 .......... 100.0 ........... 273 ............. 35 - --------------------------------------------------------------- 12. TOTALS X X X ........... 412 ............. 94 - ---------------------------------------------------------------
84 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ................ ............. ................. .............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. 10. 1994 ................ ............. ........... ................ ............. ................. .............. 11. 1995 ................ ............. ........... ................ ............. ................. .............. - -------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ................ ............. ................. .............. - -------------------------------------------------------------------------------------------------------------------------- ================================================================================ (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 ................ ............... ................ X X X 2. 1986 ................ ............... ................ .............. 3. 1987 ................ ............... ................ .............. 4. 1988 ................ ............... ................ .............. 5. 1989 ................ ............... ................ .............. 6. 1990 ................ ............... ................ .............. 7. 1991 ................ ............... ................ .............. 8. 1992 ................ ............... ................ .............. 9. 1993 ................ ............... ................ .............. 10. 1994 ................ ............... ................ .............. 11. 1995 ................ ............... ................ .............. - -------------------------------------------------------------------------------- 12. TOTALS ................ ............... ................ 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 ................ ............. ........... ................ ............. ................. .............. ............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... NONE ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. ............. 10. 1994 ................ ............. ........... ................ ............. ................. .............. ............. 11. 1995 ................ ............. ........... ................ ............. ................. .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS................ ............. ........... ................ ............. ................. .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================================== (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 ................ ............... ................ .............. 2. 1986 ................ ............... ................ .............. 3. 1987 ................ ............... ................ .............. 4. 1988 ................ ............... ................ .............. 5. 1989 ................ ............... ................ .............. 6. 1990 ................ .............NONE............... .............. 7. 1991 ................ ............... ................ .............. 8. 1992 ................ ............... ................ .............. 9. 1993 ................ ............... ................ .............. 10. 1994 ................ ............... ................ .............. 11. 1995 ................ ............... ................ .............. - -------------------------------------------------------------------------------- 12. TOTALS ................ ............... ................ .............. - --------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. ............. 10. 1994 ................ ............. ........... ................ ............. ................. .............. ............. 11. 1995 ................ ............. ........... ................ ............. ................. .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ............... ................ 2. 1986 ................ ............... ................ 3. 1987 ................ ............... ................ 4. 1988 ................ ............... ................ 5. 1989 ................ ............... ................ 6. 1990 ................ ............... ................ 7. 1991 ................ ............... ................ 8. 1992 ................ ............... ................ 9. 1993 ................ ............... ................ 10. 1994 ................ ............... ................ 11. 1995 ................ ............... ................ - --------------------------------------------------------------- 12. TOTALS X X X ............... ................ - ---------------------------------------------------------------
85 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............. 2 ........... 1 ............... 1 .............. 2. 1994 ........ 6,830 ........ 2,078 ...... 4,752 ......... 2,212 ....... 1,259 .............. 91 ........... 55 3. 1995 ........ 6,251 ........ 2,053 ...... 4,198 ........... 998 ......... 411 ............. 112 ........... 33 - -------------------------------------------------------------------------------------------------------------------------------- 4. TOTALS X X X X X X X X X ......... 3,212 ....... 1,671 ............. 204 ........... 88 - -------------------------------------------------------------------------------------------------------------------------------- ================================================================================ (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 X X X 2. 1994 ................ ........... 120 .......... 1,109 X X X 3. 1995 ................ ............ 16 ............ 682 X X X - -------------------------------------------------------------------------------- 4. TOTALS ................ ........... 136 .......... 1,793 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 ................ ............. ........... ................ ............. ................. .............. ............. 2. 1994 ................ ............. ........ 71 ............. 46 ............. ................. ............ 8 ........... 5 3. 1995 ............ 646 ......... 349 ....... 440 ............ 266 .......... 27 .............. 20 ........... 45 .......... 29 - ------------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS............ 646 ......... 349 ....... 511 ............ 312 .......... 27 .............. 20 ........... 53 .......... 34 - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================================== (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 ................ ............... ................ .............. 2. 1994 ................ ............... ............. 28 ........... 10 3. 1995 ................ ............. 5 ............ 499 .......... 108 - ------------------------------------------------------------------------------- 4. TOTALS ................ ............. 5 ............ 527 .......... 118 - -------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1994 .......... 2,502 ........ 1,365 ...... 1,137 ....... 36.6 .......... 65.7 ............ 23.9 .............. ............. 3. 1995 .......... 2,288 ........ 1,108 ...... 1,180 ....... 36.6 .......... 54.0 ............ 28.1 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ............... ................ 2. 1994 .......... 100.0 ............ 25 .............. 3 3. 1995 .......... 100.0 ........... 471 ............. 28 - --------------------------------------------------------------- 4. TOTALS X X X ........... 496 ............. 31 - ---------------------------------------------------------------
86 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 10 YEAR BREAKOUT FOR SCHEDULE P - PART 1I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, GLASS, BURGLARY & THEFT) ( 000 Omitted ) (For inhouse use only - Do not submit to NAIC)
==================================================================================================================================== (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 ................ ............. ................. .............. 2. 1986 .......... 4,390 ............. ..... 4,390 .......... 1,067 ............. ................. .............. 3. 1987 .......... 4,980 .......... 49 ..... 4,931 .......... 1,153 ............. ................. .............. 4. 1988 .......... 5,146 .......... 45 ..... 5,101 .......... 1,249 ............. ................. .............. 5. 1989 .......... 5,362 ......... 216 ..... 5,146 .......... 1,219 .......... 37 ............... 3 ............ 2 6. 1990 .......... 5,579 ......... 525 ..... 5,054 .......... 1,193 .......... 62 ............... 6 ............ 5 7. 1991 .......... 5,532 ......... 612 ..... 4,920 .......... 1,303 ......... 235 .............. 32 ........... 23 8. 1992 .......... 5,379 ......... 729 ..... 4,650 .......... 2,021 ......... 292 .............. 24 ........... 19 9. 1993 .......... 5,917 ....... 1,567 ..... 4,350 ............ 963 ......... 243 .............. 15 ........... 13 10. 1994 .......... 6,830 ....... 2,078 ..... 4,752 .......... 2,212 ....... 1,259 .............. 91 ........... 55 11. 1995 .......... 6,251 ....... 2,053 ..... 4,198 ............ 998 ......... 411 ............. 112 ........... 33 - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X .......... 3,212 ....... 1,671 ............. 204 ........... 88 - ------------------------------------------------------------------------------------------------------------------------------------ ================================================================================ (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 ................ ............... ................ X X X 2. 1986 ................ ........... 163 .......... 1,230 X X X 3. 1987 ................ ........... 119 .......... 1,272 X X X 4. 1988 ................ ............ 47 .......... 1,296 X X X 5. 1989 ................ ............ 54 .......... 1,237 X X X 6. 1990 ................ ............ 35 .......... 1,167 X X X 7. 1991 ................ ............ 41 .......... 1,118 X X X 8. 1992 ................ ............ 95 .......... 1,829 X X X 9. 1993 ................ ........... 107 .............829 X X X 10. 1994 ................ ........... 120 .......... 1,109 X X X 11. 1995 ................ ............ 16 ............ 682 X X X - -------------------------------------------------------------------------------- 12. TOTALS ................ ........... 136 .......... 1,793 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 ................ ............. ........... ................ ............. ................. .............. ............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. ............. 10. 1994 ................ ............. ........ 71 ............. 46 ............. ................. ............ 8 ........... 5 11. 1995 ............ 646 ......... 349 ....... 440 ............ 266 .......... 27 .............. 20 ........... 45 .......... 29 - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS............ 646 ......... 349 ....... 511 ............ 312 .......... 27 .............. 20 ........... 53 .......... 34 - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================================== (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 ................ ............... ................ .............. 2. 1986 ................ ............... ................ .............. 3. 1987 ................ ............... ................ .............. 4. 1988 ................ ............... ................ .............. 5. 1989 ................ ............... ................ .............. 6. 1990 ................ ............... ................ .............. 7. 1991 ................ ............... ................ .............. 8. 1992 ................ ............... ................ .............. 9. 1993 ................ ............... ................ .............. 10. 1994 ................ ............... ............. 28 ........... 10 11. 1995 ................ ............. 5 ............ 499 .......... 108 - ------------------------------------------------------------------------------- 12. TOTALS ................ ............. 5 ............ 527 .......... 118 - -------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1986 .......... 1,230 ............. ..... 1,230 ........... 28.0 ............. ............ 28.0 .............. ............. 3. 1987 .......... 1,272 ............. ..... 1,272 ........... 25.5 ............. ............ 25.8 .............. ............. 4. 1988 .......... 1,296 ............. ..... 1,296 ........... 25.2 ............. ............ 25.4 .............. ............. 5. 1989 .......... 1,276 .......... 39 ..... 1,237 ........... 23.8 ........ 18.1 ............ 24.0 .............. ............. 6. 1990 .......... 1,234 .......... 67 ..... 1,167 ........... 22.1 ........ 12.8 ............ 23.1 .............. ............. 7. 1991 .......... 1,377 ......... 259 ..... 1,118 ........... 24.9 ........ 42.3 ............ 22.7 .............. ............. 8. 1992 .......... 2,133 ......... 304 ..... 1,829 ........... 39.7 ........ 41.7 ............ 39.3 .............. ............. 9. 1993 .......... 1,085 ......... 256 ....... 829 ........... 18.3 ........ 16.3 ............ 19.1 .............. ............. 10. 1994 .......... 2,502 ....... 1,365 ..... 1,137 ........... 36.6 ........ 65.7 ............ 23.9 .............. ............. 11. 1995 .......... 2,288 ....... 1,108 ..... 1,180 ........... 36.6 ........ 54.0 ............ 28.1 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ............... ................ 2. 1986 ................ ............... ................ 3. 1987 ................ ............... ................ 4. 1988 ................ ............... ................ 5. 1989 ................ ............... ................ 6. 1990 ................ ............... ................ 7. 1991 ................ ............... ................ 8. 1992 ................ ............... ................ 9. 1993 .......... 100.0 ............... ................ 10. 1994 .......... 100.0 ............ 25 .............. 3 11. 1995 .......... 100.0 ........... 471 ............. 28 - --------------------------------------------------------------- 12. TOTALS X X X ........... 496 ............. 31 - ---------------------------------------------------------------
86B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE ($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 ............... ............. ................. .............. 2. 1994 ........ 1,284 ......... 937 ........ 347 ......... 1,158 ......... 836 ............. 205 .......... 149 3. 1995 ........ 2,471 ....... 1,672 ........ 799 ......... 1,445 ......... 973 ............. 244 .......... 170 - -------------------------------------------------------------------------------------------------------------------------------- 4. TOTALS X X X X X X X X X ......... 2,603 ....... 1,809 ............. 449 .......... 319 - -------------------------------------------------------------------------------------------------------------------------------- ================================================================================ (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 ................ ............... ................ X X X 2. 1994 ................ ............ 12 ............ 390 ............ 571 3. 1995 ................ ............ 44 ............ 590 ............ 903 - -------------------------------------------------------------------------------- 4. TOTALS ................ ............ 56 ............ 980 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 ................ ............. ........... ................ ............. ................. .............. ............. 2. 1994 ............. 81 .......... 59 ........... ................ ............. ................. .............. ............. 3. 1995 ............ 488 ......... 337 ....... 104 ............. 57 .......... 32 .............. 21 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS............ 569 ......... 396 ....... 104 ............. 57 .......... 32 .............. 21 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================================== (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 ................ ............... ................ .............. 2. 1994 ................ ............... ............. 22 ............ 8 3. 1995 ................ ............... ............ 209 .......... 240 - ------------------------------------------------------------------------------- 4. TOTALS ................ ............... ............ 231 .......... 248 - -------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1994 ......... 1,456 ........ 1,044 ...... 412 ........ 113.4 ......... 111.4 ......... 118.7 .............. ............. 3. 1995 ......... 2,357 ........ 1,558 ...... 799 ........ 95.4 .......... 93.2 ......... 100.0 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ............... ................ 2. 1994 .......... 100.0 ............ 22 ................ 3. 1995 .......... 100.0 ........... 198 ............. 11 - --------------------------------------------------------------- 4. TOTALS X X X ........... 220 ............. 11 - ---------------------------------------------------------------
87 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 10 YEAR BREAKOUT FOR SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE ( 000 Omitted ) (For inhouse use only - Do not submit to NAIC)
========================================================================================================================== (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 ................ ............. ................. .............. 2. 1986 ................ ............ ............ ................ ............. ................. .............. 3. 1987 ................ ............ ............ ................ ............. ................. .............. 4. 1988 ................ ............ ............ ................ ............. ................. .............. 5. 1989 ................ ............ ............ ................ ............. ................. .............. 6. 1990 ................ ............ ............ ................ ............. ................. .............. 7. 1991 ................ ............ ............ ................ ............. ................. .............. 8. 1992 ................ ............ ............ ................ ............. ................. .............. 9. 1993 ............. 27 .......... 15 ........ 12 ............. 38 .......... 25 ............... 3 ............ 3 10. 1994 .......... 1,284 ......... 937 ....... 347 .......... 1,158 ......... 836 ............. 205 .......... 149 11. 1995 ...........2,471 ........1,672 ....... 799 .......... 1,445 ......... 973 ............. 244 .......... 170 - -------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X .......... 2,603 ....... 1,809 ............. 449 .......... 319 - -------------------------------------------------------------------------------------------------------------------------- ================================================================================ (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 ................ ............... ................ X X X 2. 1986 ................ ............... ................ .............. 3. 1987 ................ ............... ................ .............. 4. 1988 ................ ............... ................ .............. 5. 1989 ................ ............... ................ .............. 6. 1990 ................ ............... ................ .............. 7. 1991 ................ ............... ................ .............. 8. 1992 ................ ............... ................ .............. 9. 1993 ................ ............... ............. 13 ........... 19 10. 1994 ................ ............ 12 ............ 390 .......... 571 11. 1995 ................ ............ 44 ............ 590 .......... 903 - -------------------------------------------------------------------------------- 12. TOTALS ................ ............ 56 ............ 980 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 ................ ............. ........... ................ ............. ................. .............. ............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. ............. 10. 1994 ............. 81 .......... 59 ........... ................ ............. ................. .............. ............. 11. 1995 ............ 488 ......... 337 ....... 104 ............. 57 .......... 32 .............. 21 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS............ 569 ......... 396 ....... 104 ............. 57 .......... 32 .............. 21 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================================== (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 ................ ............... ................ .............. 2. 1986 ................ ............... ................ .............. 3. 1987 ................ ............... ................ .............. 4. 1988 ................ ............... ................ .............. 5. 1989 ................ ............... ................ .............. 6. 1990 ................ ............... ................ .............. 7. 1991 ................ ............... ................ .............. 8. 1992 ................ ............... ................ .............. 9. 1993 ................ ............... ................ .............. 10. 1994 ................ ............... ............. 22 ............ 8 11. 1995 ................ ............... ............ 209 .......... 240 - ------------------------------------------------------------------------------- 12. TOTALS ................ ............... ............ 231 .......... 248 - -------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ............. 41 .......... 28 ........ 13 .......... 151.9 ....... 186.7 ........... 108.3 .............. ............. 10. 1994 .......... 1,456 ....... 1,044 ....... 412 .......... 113.4 ....... 111.4 ........... 118.7 .............. ............. 11. 1995 .......... 2,357 ....... 1,558 ....... 799 ........... 95.4 ........ 93.2 ........... 100.0 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ............... ................ 2. 1986 ................ ............... ................ 3. 1987 ................ ............... ................ 4. 1988 ................ ............... ................ 5. 1989 ................ ............... ................ 6. 1990 ................ ............... ................ 7. 1991 ................ ............... ................ 8. 1992 ................ ............... ................ 9. 1993 .......... 100.0 ............... ................ 10. 1994 .......... 100.0 ............ 22 ................ 11. 1995 .......... 100.0 ........... 198 ............. 11 - --------------------------------------------------------------- 12. TOTALS X X X ........... 220 ............. 11 - ---------------------------------------------------------------
87B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 Were Incur. Assumed Ceded Assumed Ceded - -------------------------------------------------------------------------------------------------------------------------------- 1. Prior X X X X X X X X X ............... ............. ................. .............. 2. 1994 .............. .............. ............ ............... ............. ................. .............. 3. 1995 ............ 6 ............ 1 .......... 5 ............... ............. ................. .............. - -------------------------------------------------------------------------------------------------------------------------------- 4. TOTALS X X X X X X X X X ............... ............. ................. .............. - -------------------------------------------------------------------------------------------------------------------------------- ================================================================================ (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 ................ ............... ................ X X X 2. 1994 ................ ............... ................ X X X 3. 1995 ................ ............... ................ X X X - -------------------------------------------------------------------------------- 4. TOTALS ................ ............... ................ 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 ................ ............. ........... ................ ............. ................. .............. ............. 2. 1994 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1995 ................ ............. ......... 3 ................ ............. ................. .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS................ ............. ......... 3 ................ ............. ................. .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================================== (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 ................ ............... ................ .............. 2. 1994 ................ ............... ................ .............. 3. 1995 ................ ............... .............. 3 .............. - ------------------------------------------------------------------------------- 4. TOTALS ................ ............... .............. 3 .............. - -------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1994 ................ .............. ............ ............ ............... ................. .............. ............. 3. 1995 .............. 3 .............. .......... 3 ....... 50.0 ............... ............ 60.0 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ............... ................ 2. 1994 ................ ............... ................ 3. 1995 .......... 100.0 ............. 3 ................ - --------------------------------------------------------------- 4. TOTALS X X X ............. 3 ................ - ---------------------------------------------------------------
88 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 10 YEAR BREAKOUT FOR SCHEDULE P - PART 1K - FIDELITY / SURETY ( 000 Omitted ) (For inhouse use only - Do not submit to NAIC)
==================================================================================================================================== (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 ................ ............. ................. .............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. 10. 1994 ................ ............. ........... ................ ............. ................. .............. 11. 1995 .............. 6 ........... 1 ......... 5 ................ ............. ................. .............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X ................ ............. ................. .............. - ------------------------------------------------------------------------------------------------------------------------------------ ================================================================================ (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 ................ ............... ................ X X X 2. 1986 ................ ............... ................ X X X 3. 1987 ................ ............... ................ X X X 4. 1988 ................ ............... ................ X X X 5. 1989 ................ ............... ................ X X X 6. 1990 ................ ............... ................ X X X 7. 1991 ................ ............... ................ X X X 8. 1992 ................ ............... ................ X X X 9. 1993 ................ ............... ................ X X X 10. 1994 ................ ............... ................ X X X 11. 1995 ................ ............... ................ X X X - -------------------------------------------------------------------------------- 12. TOTALS ................ ............... ................ 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 ................ ............. ........... ................ ............. ................. .............. ............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. ............. 10. 1994 ................ ............. ........... ................ ............. ................. .............. ............. 11. 1995 ................ ............. ......... 3 ................ ............. ................. .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS................ ............. ......... 3 ................ ............. ................. .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================================== (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 ................ ............... ................ .............. 2. 1986 ................ ............... ................ .............. 3. 1987 ................ ............... ................ .............. 4. 1988 ................ ............... ................ .............. 5. 1989 ................ ............... ................ .............. 6. 1990 ................ ............... ................ .............. 7. 1991 ................ ............... ................ .............. 8. 1992 ................ ............... ................ .............. 9. 1993 ................ ............... ................ .............. 10. 1994 ................ ............... ................ .............. 11. 1995 ................ ............... ...............3 .............. - -------------------------------------------------------------------------------- 12. TOTALS ................ ............... ...............3 .............. - --------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ................ ............. ........... ................ ............. ................. .............. ............. 10. 1994 ................ ............. ........... ................ ............. ................. .............. ............. 11. 1995 ...............3 ............. ..........3 ........... 50.0 ............. ............ 60.0 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ............... ................ 2. 1986 ................ ............... ................ 3. 1987 ................ ............... ................ 4. 1988 ................ ............... ................ 5. 1989 ................ ............... ................ 6. 1990 ................ ............... ................ 7. 1991 ................ ............... ................ 8. 1992 ................ ............... ................ 9. 1993 ................ ............... ................ 10. 1994 ................ ............... ................ 11. 1995 .......... 100.0 ............. 3 ................ - --------------------------------------------------------------- 12. TOTALS X X X ............. 3 ................ - ---------------------------------------------------------------
88B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 Were Incur. Assumed Ceded Assumed Ceded - -------------------------------------------------------------------------------------------------------------------------------- 1. Prior X X X X X X X X X ........... 416 .......... 54 .............. 38 .............5 2. 1994 ....... 83,396 ....... 10,878 ..... 72,518 ........ 55,259 ....... 7,208 ............. 516 ........... 67 3. 1995 ....... 93,778 ....... 12,232 ..... 81,546 ........ 40,376 ....... 5,267 ............. 213 ........... 28 - -------------------------------------------------------------------------------------------------------------------------------- 4. TOTALS X X X X X X X X X ........ 96,051 ...... 12,529 ............. 767 .......... 100 - -------------------------------------------------------------------------------------------------------------------------------- ================================================================================ (1) LOSS AND LOSS EXPENSE PAYMENTS (12) Years in ------------------------------------------------ Which (9) (10) (11) Number of Premiums Total Claims Were Earned Salvage and Unallocated NetPaid Reported - and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and Were Incur. Received Payments + 7 - 8 + 10) Assumed - -------------------------------------------------------------------------------- 1. Prior ................ ............ 2 ............ 397 X X X 2. 1994 ................ ........... 134 ......... 48,634 X X X 3. 1995 ................ ........... 122 ......... 35,416 X X X - -------------------------------------------------------------------------------- 4. TOTALS ................ ........... 258 ......... 84,447 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 ............. 58 ........... 8 ........... ................ .......... 11 ............... 1 .............. ............. 2. 1994 ............ 346 .......... 45 ........ 58 .............. 7 ......... 108 .............. 14 ........... 57 ........... 7 3. 1995 .......... 9,255 ....... 1,207 .... 10,461 .......... 1,365 .......... 53 ............... 7 .......... 173 .......... 23 - ------------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS.......... 9,659 ....... 1,260 .... 10,519 .......... 1,372 ......... 172 .............. 22 .......... 230 .......... 30 - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================================== (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 ................ ............... ............. 60 ............ 7 2. 1994 ................ ............. 1 ............ 497 .......... 151 3. 1995 ................ ............ 49 ......... 17,389 ........ 1,300 - ------------------------------------------------------------------------------- 4. TOTALS ................ ............ 50 ......... 17,946 ........ 1,458 - -------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1994 ......... 56,479 ........ 7,348 ..... 49,131 ....... 67.7 .......... 67.5 ............ 67.8 .............. ............. 3. 1995 ......... 60,702 ........ 7,897 ..... 52,805 ....... 64.7 .......... 64.6 ............ 64.8 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 4. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ............ 50 ............. 10 2. 1994 .......... 100.0 ........... 352 ............ 145 3. 1995 .......... 100.0 ........ 17,144 ............ 245 - --------------------------------------------------------------- 4. TOTALS X X X ........ 17,546 ............ 400 - ---------------------------------------------------------------
89 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 10 YEAR BREAKOUT FOR SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) ( 000 Omitted ) (For inhouse use only - Do not submit to NAIC)
===================================================================================================================== (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 ................ ............. ................. .............. 2. 1986 ......... 14,938 ............. .... 14,938 .......... 8,569 ............. ............... 2 .............. 3. 1987 ......... 14,589 ............. .... 14,589 ......... 10,532 ............. ............. 120 .............. 4. 1988 ......... 18,896 ............. .... 18,896 ......... 14,575 ............. ............. 122 .............. 5. 1989 ......... 29,763 ............. .... 29,763 ......... 21,280 ............. ............. 129 .............. 6. 1990 ......... 31,039 ............. .... 31,039 ......... 21,237 ......... (8) ............. 230 ........... 1 7. 1991 ......... 27,497 ............. .... 27,497 ......... 20,055 ........ (38) ............. 375 ........... 4 8. 1992 ......... 46,152 ............. .... 46,152 ......... 32,754 ........ 253 ............. 475 ........... 28 9. 1993 ......... 76,971 ...... 10,040 .... 66,931 ......... 53,378 ...... 6,962 ............. 516 ........... 67 10. 1994 ......... 83,396 ...... 10,878 .... 72,518 ......... 55,259 ...... 7,208 ............. 516 ........... 67 11. 1995 ......... 93,778 ...... 12,232 .... 81,546 ......... 40,376 ...... 5,267 ............. 213 ........... 28 - --------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ......... 96,051 ..... 12,529 ............. 767 .......... 100 - --------------------------------------------------------------------------------------------------------------------- =========================================================================== (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 ................ ............... ................ X X X 2. 1986 ................ ............ 46 .......... 8,617 X X X 3. 1987 ................ ........... 150 ......... 10,802 X X X 4. 1988 ................ ........... 159 ......... 14,856 X X X 5. 1989 ................ ........... 187 ......... 21,596 X X X 6. 1990 ................ ........... 237 ......... 21,711 X X X 7. 1991 ................ ........... 351 ......... 20,815 X X X 8. 1992 ................ ........... 223 ......... 33,171 X X X 9. 1993 ................ ........... 175 ......... 47,040 X X X 10. 1994 ................ ........... 134 ......... 48,634 X X X 11. 1995 ................ ........... 122 ......... 35,416 X X X - --------------------------------------------------------------------------- 12. TOTALS ................ ........... 258 ......... 84,447 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 ................ ............. ........... ................ ............. ................. .............. ............. 2. 1986 ................ ............. ........... ................ ............. ................. .............. ............. 3. 1987 ................ ............. ........... ................ ............. ................. .............. ............. 4. 1988 ................ ............. ........... ................ ............. ................. .............. ............. 5. 1989 ................ ............. ........... ................ ............. ................. .............. ............. 6. 1990 ................ ............. ........... ................ ............. ................. .............. ............. 7. 1991 ................ ............. ........... ................ ............. ................. .............. ............. 8. 1992 ................ ............. ........... ................ ............. ................. .............. ............. 9. 1993 ............. 58 ........... 8 ........... ................ .......... 11 ............... 1 .............. ............. 10. 1994 ............ 346 .......... 45 ........ 58 .............. 7 ......... 108 .............. 14 ........... 57 ........... 7 11. 1995 .......... 9,255 ....... 1,207 .... 10,461 .......... 1,365 .......... 53 ............... 7 .......... 173 .......... 23 - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS.......... 9,659 ....... 1,260 .... 10,519 .......... 1,372 ......... 172 .............. 22 .......... 230 .......... 30 - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================================== (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 ................ ............... ................ .............. 2. 1986 ................ ............... ................ .............. 3. 1987 ................ ............... ................ .............. 4. 1988 ................ ............... ................ .............. 5. 1989 ................ ............... ................ .............. 6. 1990 ................ ............... ................ .............. 7. 1991 ................ ............... ................ .............. 8. 1992 ................ ............... ................ .............. 9. 1993 ................ ............... ............. 60 ............ 7 10. 1994 ................ ............. 1 ............ 497 .......... 151 11. 1995 ................ ............ 49 ......... 17,389 ........ 1,300 - ------------------------------------------------------------------------------- 12. TOTALS ................ ............ 50 ......... 17,946 ........ 1,458 - -------------------------------------------------------------------------------
==================================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior X X X X X X X X X X X X X X X X X X .............. ............. 2. 1986 .......... 8,617 ............. ..... 8,617 ........... 57.7 ............. ............ 57.7 .............. ............. 3. 1987 ......... 10,802 ............. .... 10,802 ........... 74.0 ............. ............ 74.0 .............. ............. 4. 1988 ......... 14,856 ............. .... 14,856 ........... 78.6 ............. ............ 78.6 .............. ............. 5. 1989 ......... 21,596 ............. .... 21,596 ........... 72.6 ............. ............ 72.6 .............. ............. 6. 1990 ......... 21,704 ......... (7) .... 21,711 ........... 69.9 ............. ............ 69.9 .............. ............. 7. 1991 ......... 20,781 ........ (34) .... 20,815 ........... 75.6 ............. ............ 75.7 .............. ............. 8. 1992 ......... 33,452 ........ 281 .... 33,171 ........... 72.5 ............. ............ 71.9 .............. ............. 9. 1993 ......... 54,138 ...... 7,038 .... 47,100 ........... 70.3 ........ 70.1 ............ 70.4 .............. ............. 10. 1994 ......... 56,479 ...... 7,348 .... 49,131 ........... 67.7 ........ 67.5 ............ 67.8 .............. ............. 11. 1995 ......... 60,702 ...... 7,897 .... 52,805 ........... 64.7 ........ 64.6 ............ 64.8 .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X .............. ............. - ------------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ---------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X ............... ................ 2. 1986 ................ ............... ................ 3. 1987 ................ ............... ................ 4. 1988 ................ ............... ................ 5. 1989 ................ ............... ................ 6. 1990 ................ ............... ................ 7. 1991 ................ ............... ................ 8. 1992 ................ ............... ................ 9. 1993 .......... 100.0 ............ 50 ............. 10 10. 1994 .......... 100.0 ........... 352 ............ 145 11. 1995 .......... 100.0 ........ 17,144 ............ 245 - --------------------------------------------------------------- 12. TOTALS X X X ........ 17,546 ............ 400 - ---------------------------------------------------------------
89B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ............... ............... ............... 2. 1986 ............... ............... ............... ............... ............... ............... ............... 3. 1987 ............... ............... ............... ............... ............... ............... ............... 4. 1988 ............... ............... ............... ............... ............... ............... ............... 5. 1989 ............... ............... ............... ............... ............... ............... ............... 6. 1990 ............... ............... ............... ............... ............... ............... ............... 7. 1991 ............... ............... ............... ............... ............... ............... ............... 8. 1992 ............... ............... ............... ............... ............... ............... ............... 9. 1993 ............... ............... ............... ............... ............... ............... ............... 10. 1994 ............... ............... ............... ............... ............... ............... ............... 11. 1995 ............... ............... ............... ............... ............... ............... ............... - ---------------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............... ............... ............... ............... - ---------------------------------------------------------------------------------------------------------------------------------- ========================================================================== (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 ............... ............... ............... X X X 2. 1986 ............... ............... ............... X X X 3. 1987 ............... ............... ............... X X X 4. 1988 ............... ............... ............... X X X 5. 1989 ............... ............... ............... X X X 6. 1990 ............... ............... ............... X X X 7. 1991 ............... ............... ............... X X X 8. 1992 ............... ............... ............... X X X 9. 1993 ............... ............... ............... X X X 10. 1994 ............... ............... ............... X X X 11. 1995 ............... ............... ............... X X X - ------------------------------------------------------------------------- 12. TOTALS ............... ............... ............... 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 ........... ........... ........... ........... ........... ........... ........... ........... 2. 1996 ........... ........... ........... ........... ........... ........... ........... ........... 3. 1997 ........... ........... ........... . 4. 1988 ........... ........... ........... . 5. 1989 ........... ........... ........... . 6. 1990 ........... ........... ........... . 7. 1991 ........... ........... ........... . N O N E 8. 1992 ........... ........... ........... . 9. 1993 ........... ........... ........... . 10. 1994 ........... ........... ........... . 11. 1995 ........... ........... ........... ........... ........... ........... ........... ........... - -------------------------------------------------------------------------------------------------------------------------- 12. TOTALS ........... ........... ........... ........... ........... ........... ........... ........... - -------------------------------------------------------------------------------------------------------------------------- ===================================================================================== (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 ........... ........... ........... ........... 2. 1996 ........... ........... ........... ........... 3. 1997 ........... ........... ........... ........... 4. 1988 ........... ........... ........... ........... 5. 1989 ........... ........... ........... ........... 6. 1990 ........... ........... ........... ........... 7. 1991 ........... ........... ........... ........... 8. 1992 ........... ........... ........... ........... 9. 1993 ........... ........... ........... ........... 10. 1994 ........... ........... ........... ........... 11. 1995 ........... ........... ........... ........... - ------------------------------------------------------------------------------------ 12. TOTALS ........... ........... ........... ........... - ------------------------------------------------------------------------------------
================================================================================================================================ TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior X X X X X X X X X X X X X X X X X X .......... .......... 2. 1986 .......... ........... ........... ........... ........... .......... .......... .......... 3. 1987 .......... ........... ........... ........... ........... .......... .......... .......... 4. 1988 .......... ........... ........... ........... ........... .......... .......... .......... 5. 1989 .......... ........... ........... ........... ........... .......... .......... .......... 6. 1990 .......... ........... ........... ........... ........... .......... .......... .......... 7. 1991 .......... ........... ........... ........... ........... .......... .......... .......... 9. 1993 .......... ........... ........... ........... ........... .......... .......... .......... 10. 1994 .......... ........... ........... ........... ........... .......... .......... .......... 11. 1995 .......... ........... ........... ........... ........... .......... .......... .......... - ------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS X X X X X X X X X X X X X X X X X X .......... .......... - ------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X .......... .......... 2. 1986 .......... .......... .......... 3. 1987 .......... .......... .......... 4. 1988 .......... .......... .......... 5. 1989 .......... .......... .......... 6. 1990 .......... .......... .......... 7. 1991 .......... .......... .......... 9. 1993 .......... .......... .......... 10. 1994 .......... .......... .......... 11. 1995 .......... .......... .......... - --------------------------------------------------------------- 12. TOTALS X X X .......... .......... - ---------------------------------------------------------------
90 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 Ceded Were Incur. Assumed Ceded Assumed - --------------------------------------------------------------------------------------------------------------------------------- 1. 1988 ...... 3,264 .......... 1,139 ........... 2,125 ........... 627 .............. 5 ............... 22 ............ 1 2. 1989 ...... 4,206 .......... 2,033 ........... 2,173 ......... 1,978 ............ 472 ............... 44 ........... 12 3. 1990 ...... 3,848 .......... 1,406 ........... 2,442 ......... 1,110 ............ 259 ............... 35 ............ 6 4. 1991 ...... 3,958 .......... 1,930 ........... 2,028 ......... 1,813 ............ 395 ............... 73 ........... 17 5. 1992 ...... 4,207 .......... 1,612 ........... 2,595 ......... 3,954 ............ 725 ............... 81 ........... 24 6. 1993 ..... 10,093 .......... 4,196 ........... 5,897 ......... 4,602 .......... 1,288 .............. 151 ........... 35 7. 1994 ..... 13,688 .......... 7,127 ........... 6,561 ......... 6,872 .......... 2,297 .............. 410 .......... 112 8. 1995 ..... 20,154 .......... 8,540 .......... 11,614 ......... 1,977 ............ 481 ............... 87 ........... 18 - --------------------------------------------------------------------------------------------------------------------------------- 9. TOTALS X X X X X X X X X ........ 22,933 .......... 5,922 .............. 903 .......... 225 - --------------------------------------------------------------------------------------------------------------------------------- ========================================================================= (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. 1988 ............. ......... 202 ............. 845 X X X 2. 1989 ............. ......... 190 ........... 1,728 X X X 3. 1990 ............. ......... 167 ........... 1,047 X X X 4. 1991 ............. ......... 153 ........... 1,627 X X X 5. 1992 ............. ......... 411 ........... 3,697 X X X 6. 1993 ............. ......... 334 ........... 3,764 X X X 7. 1994 ............. ......... 454 ........... 5,327 X X X 8. 1995 ............. ......... 170 ........... 1,735 X X X - ------------------------------------------------------------------------- 9. TOTALS ............. ....... 2,081 .......... 19,770 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 ............ 1 ........... .............. .............. .............. .............. ............. ......... 2. 1989 .............. ........... .............. .............. .............. .............. ............. ......... 3. 1990 .............. ........... .............. .............. .............. .............. ............. ......... 4. 1991 ........ 1,247 ..... 1,086 .......... 142 ........... 92 .............. .............. ........... 9 ....... 1 5. 1992 .......... 328 ....... 135 .......... 493 .......... 272 .............. .............. .......... 31 ....... 4 6. 1993 .......... 775 ....... 248 .......... 831 .......... 170 ............ 4 ............ 1 .......... 49 ....... 6 7. 1994 ........ 5,919 ..... 4,871 ........ 1,124 .......... 318 ........... 43 ........... 14 .......... 58 ....... 8 8. 1995 ........ 2,476 ....... 533 ........ 6,519 ........ 2,687 ............ 9 ............ 1 .......... 55 ....... 7 - -------------------------------------------------------------------------------------------------------------------------- 9. TOTALS ....... 10,746 ..... 6,873 ........ 9,109 ........ 3,539 ........... 56 ........... 16 ......... 202 ...... 26 - --------------------------------------------------------------------------------- ---------------------------------------- =================================================================================== (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 ................. ................ ................1 X X X 2. 1989 ................. ................ ................. X X X 3. 1990 ................. ................ ................. X X X 4. 1991 ................. .............. 5 ............. 224 X X X 5. 1992 ................. .............. 9 ............. 450 X X X 6. 1993 ................. ............. 26 ........... 1,260 X X X 7. 1994 ................. ............. 37 ........... 1,970 X X X 8. 1995 ................. ............ 123 ........... 5,954 X X X - ----------------------------------------------------------------------------------- 9. TOTALS ................. ............ 200 ........... 9,859 X X X - -----------------------------------------------------------------------------------
=============================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------- 1. 1988 ........... 852 ......... 6 .......... 846 ............. 26.1 ........ 0.5 ....... 39.8 ............ .............. 2. 1989 ......... 2,212 ....... 484 ........ 1,728 ............. 52.6 ....... 23.8 ....... 79.5 ............ .............. 3. 1990 ......... 1,315 ....... 268 ........ 1,047 ............. 34.2 ....... 19.1 ....... 42.9 ............ .............. 4. 1991 ......... 3,442 ..... 1,591 ........ 1,851 ............. 87.0 ....... 82.4 ....... 91.3 ............ .............. 5. 1992 ......... 5,307 ..... 1,160 ........ 4,147 ............ 126.1 ....... 72.0 ...... 159.8 ............ .............. 6. 1993 ......... 6,772 ..... 1,748 ........ 5,024 ............. 67.1 ....... 41.7 ....... 85.2 ............ .............. 7. 1994 ........ 14,917 ..... 7,620 ........ 7,297 ............ 109.0 ...... 106.9 ...... 111.2 ............ .............. 8. 1995 ........ 11,416 ..... 3,727 ........ 7,689 ............. 56.6 ....... 43.6 ....... 66.2 ............ .............. - ------------------------------------------------------------------------------------------------------------------------------- 9. TOTALS X X X X X X X X X X X X X X X X X X ............ .............. - ------------------------------------------------------------------------------------------------------------------------------- =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company --------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. 1988 .............. ................ 1 ................. 2. 1989 .............. .................. ................. 3. 1990 .............. .................. ................. 4. 1991 .............. .............. 211 .............. 13 5. 1992 .............. .............. 414 .............. 36 6. 1993 .........100.0 ............ 1,188 .............. 72 7. 1994 .........100.0 ............ 1,854 ............. 116 8. 1995 .........100.0 ............ 5,775 ............. 179 - --------------------------------------------------------------- 9. TOTALS X X X ............ 9,443 ............. 416 - ---------------------------------------------------------------
91 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 10 - 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 Ceded Net (5) (6) (7) (8) and Losses Assumed (Cols. 2 - 3) Direct and Ceded Direct and Ceded Were Incur. Assumed Assumed - --------------------------------------------------------------------------------------------------------------------------- 1. 1988 ....... 7,154 ........... 615 .......... 6,539 ......... 3,876 ............. 154 ............. 60 ......... 3 2. 1989 ...... 13,933 ......... 1,708 ......... 12,225 ......... 2,649 ............ (166) ............. 28 ....... (15) 3. 1990 ...... 11,832 ......... 1,487 ......... 10,345 ......... 3,704 ............. 141 .............. 3 ....... (25) 4. 1991 ....... 9,656 ......... 1,447 .......... 8,209 ......... 2,708 ............. 349 .......... 2,043 ..... 1,021 5. 1992 ....... 7,287 ........... 998 .......... 6,289 ......... 2,158 ............. (75) ............ 112 ......... 5 6. 1993 ....... 7,397 ......... 1,811 .......... 5,586 ......... 2,138 ............. 324 ............ 140 ........ 19 7. 1994 ...... 10,578 ......... 2,399 .......... 8,179 ......... 1,557 ............. 303 ............. 42 ......... 6 8. 1995 ...... 18,887 ......... 4,858 ......... 14,029 ........... 422 ............. 55 .............. 8 ......... 1 - --------------------------------------------------------------------------------------------------------------------------- 9. TOTALS X X X X X X X X X ........ 19,212 ........... 1,085 .......... 2,436 ..... 1,015 - --------------------------------------------------------------------------------------------------------------------------- ======================================================================== (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. 1988 .............. ........... 267 ........ 4,046 X X X 2. 1989 .............. ........... 187 ........ 3,045 X X X 3. 1990 .............. ........... 202 ........ 3,793 X X X 4. 1991 .............. ........... 325 ........ 3,706 X X X 5. 1992 .............. ........... 273 ........ 2,613 X X X 6. 1993 .............. ........... 308 ........ 2,243 X X X 7. 1994 .............. ........... 252 ........ 1,542 X X X 8. 1995 .............. ............ 38 .......... 412 X X X - ------------------------------------------------------------------------ 9. TOTALS .............. ......... 1,852 ....... 21,400 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 .......... 131 ........ 23 .......... 360 ........... 60 .............. .............. ........... 3 ......... 2. 1989 ........ 1,053 ....... 152 ........ 2,205 .......... 505 .............. .............. ........... 8 ....... 1 3. 1990 ........ 1,059 ....... 418 ........ 3,224 .......... 505 .............. .............. ...........15 ....... 2 4. 1991 .......... 587 ....... 108 ........ 3,702 .......... 657 .............. .............. ...........13 ....... 2 5. 1992 ........ 1,307 ....... 320 ........ 2,499 .......... 524 ............ 1 .............. ...........32 ....... 4 6. 1993 ........ 1,342 ....... 258 ........ 2,700 .......... 614 ........... 16 ............ 2 .......... 59 ....... 8 7. 1994 ........ 2,260 ....... 877 ........ 4,691 .......... 638 ............ 6 ............ 1 ......... 201 ...... 26 8. 1995 .......... 553 ........ 72 ....... 11,979 ........ 2,630 ........... 10 ............ 1 ......... 129 ...... 17 - --------------------------------------------------------------------------------------------------------------------------- 9. TOTALS ........ 8,292 ..... 2,228 ....... 31,360 ........ 6,133 ........... 33 ............ 4 ......... 460 ...... 60 - --------------------------------------------------------------------------------------------------------------------------- ==================================================================================== (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 ................. .............. 3 ............. 414 X X X 2. 1989 ................. ............. 20 ........... 2,628 X X X 3. 1990 ................. ............. 26 ........... 3,399 X X X 4. 1991 ................. ............. 27 ........... 3,562 X X X 5. 1992 ................. ............. 23 ........... 3,014 X X X 6. 1993 ................. ............. 25 ........... 3,260 X X X 7. 1994 ................. ............. 43 ........... 5,659 X X X 8. 1995 ................. ............. 83 .......... 10,034 X X X - ------------------------------------------------------------------------------------ 9. TOTALS ................. ............ 250 .......... 31,970 X X X - ------------------------------------------------------------------------------------
================================================================================================================================ TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME EXPENSES INCURRED (Incurred/Premiums Earned) VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------- 1. 1988 ......... 4,700 ....... 240 ........ 4,460 ............. 65.7 ....... 39.0 ....... 68.2 ............ ............. 2. 1989 ......... 6,150 ....... 477 ........ 5,673 ............. 44.1 ....... 27.9 ....... 46.4 ............ ............. 3. 1990 ......... 8,233 ..... 1,041 ........ 7,192 ............. 69.6 ....... 70.0 ....... 69.5 ............ ............. 4. 1991 ......... 9,405 ..... 2,137 ........ 7,268 ............. 97.4 ...... 147.7 ....... 88.5 ............ ............. 5. 1992 ......... 6,405 ....... 778 ........ 5,627 ............. 87.9 ....... 78.0 ....... 89.5 ............ ............. 6. 1993 ......... 6,728 ..... 1,225 ........ 5,503 ............. 91.0 ....... 67.6 ....... 98.5 ............ ............. 7. 1994 ......... 9,052 ..... 1,851 ........ 7,201 ............. 85.6 ....... 77.2 ....... 88.0 ............ ............. 8. 1995 ........ 13,222 ..... 2,776 ....... 10,446 ............. 70.0 ....... 57.1 ....... 74.5 ............ ............. - -------------------------------------------------------------------------------------------------------------------------------- 9. TOTALS X X X X X X X X X X X X X X X X X X ............ ............. - -------------------------------------------------------------------------------------------------------------------------------- ================================================================ (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ------------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - ---------------------------------------------------------------- 1. 1988 .............. .............. 408 .............. 6 2. 1989 .............. ............ 2,601 .............. 27 3. 1990 .............. ............ 3,360 .............. 39 4. 1991 .............. ............ 3,524 .............. 38 5. 1992 .............. ............ 2,962 .............. 52 6. 1993 ........ 100.0 ............ 3,170 .............. 90 7. 1994 ........ 100.0 ............ 5,436 ............. 223 8. 1995 ........ 100.0 ............ 9,830 ............. 204 - ---------------------------------------------------------------- 9. TOTALS X X X ........... 31,291 ............. 679 - ----------------------------------------------------------------
92 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............. ............... ................ ............... ................. ................. ........... 2. 1989 ............. ............... ................ ............... ................. ................. ........... 3. 1990 ............. ............... ................ ............... ................. ................. ........... 4. 1991 ............. ............... ................ ............... ................. ................. ........... 5. 1992 ............. ............... ................ ............... ................. ................. ........... 6. 1993 ............. ............... ................ ............... ................. ................. ........... 7. 1994 ............. ............... ................ ............... ................. ................. ........... 8. 1995 ............. ............... ................ ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- 9. TOTALS X X X X X X X X X ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- ======================================================================== (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. 1988 .............. ............... ............... X X X 2. 1989 .............. ............... ............... X X X 3. 1990 .............. ............... ............... X X X 4. 1991 .............. ............... ............... X X X 5. 1992 .............. ............... ............... X X X 6. 1993 .............. ............... ............... X X X 7. 1994 .............. ............... ............... X X X 8. 1995 .............. ............... ............... X X X - ------------------------------------------------------------------------- 9. TOTALS .............. ............... ............... 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 .............. ........... .............. 2. 1989 .............. ........... .............. 3. 1990 .............. ........... .............. 4. 1991 .............. ........... .............. N O N E 5. 1992 .............. ........... .............. 6. 1993 .............. ........... .............. 7. 1994 .............. ........... .............. 8. 1995 .............. ........... .............. .............. .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- 9. TOTALS .............. ........... .............. .............. .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- ================================================================================== (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 .............. ................ ................. X X X 1. 1988 .............. ................ ................. X X X 2. 1989 .............. ................ ................. X X X 3. 1990 .............. ................ ................. X X X 4. 1991 .............. ................ ................. X X X 5. 1992 .............. ................ ................. X X X 6. 1993 .............. ................ ................. X X X 7. 1994 .............. ................ ................. X X X 8. 1995 .............. ................ ................. X X X - ---------------------------------------------------------------------------------- 9. TOTALS .............. ................ ................. X X X - ----------------------------------------------------------------------------------
============================================================================================================================== TOTAL LOSSES AND LOSS EXPENSES INCURRED LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME (Incurred/Premiums Earned) VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------ (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------ 1. 1988 ............... ........... .............. .................. ............ ............ ............ ............. 2. 1989 ............... ........... .............. .................. ............ ............ ............ ............. 3. 1990 ............... ........... .............. .................. ............ ............ ............ ............. 4. 1991 ............... ........... .............. .................. ............ ............ ............ ............. 5. 1992 ............... ........... .............. .................. ............ ............ ............ ............. 6. 1993 ............... ........... .............. .................. ............ ............ ............ ............. 7. 1994 ............... ........... .............. .................. ............ ............ ............ ............. 8. 1995 ............... ........... .............. .................. ............ ............ ............ ............. - ------------------------------------------------------------------------------------------------------------------------------ 9. TOTALS X X X X X X X X X X X X X X X X X X ............ ............. - ------------------------------------------------------------------------------------------------------------------------------ =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company -------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. 1988 .............. .................. ................. 2. 1989 .............. .................. ................. 3. 1990 .............. .................. ................. 4. 1991 .............. .................. ................. 5. 1992 .............. .................. ................. 6. 1993 .............. .................. ................. 7. 1994 .............. .................. ................. 8. 1995 .............. .................. ................. - --------------------------------------------------------------- 9. TOTALS X X X .................. ................. - ---------------------------------------------------------------
93 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ................. ................. ........... 2. 1986 ............. ............... ................ ............... ................. ................. ........... 3. 1987 ......... 769 ........... 115 ............ 654 ........... 833 ............. 235 .............. 18 ......... 4 - ---------------------------------------------------------------------------------------------------------------------------- 4. TOTALS X X X X X X X X X ........... 833 ............. 235 .............. 18 ......... 4 - ---------------------------------------------------------------------------------------------------------------------------- ======================================================================== (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 .............. ............... ............... X X X 2. 1986 .............. ............... ............... X X X 3. 1987 .............. ............ 43 ........... 655 X X X - ------------------------------------------------------------------------ 4. TOTALS .............. ............ 43 ........... 655 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 .............. ........... .............. .............. .............. .............. ............. ......... 2. 1986 .............. ........... .............. .............. .............. .............. ............. ......... 3. 1987 .............. ........... ........... 65 ........... 14 .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- 4. TOTALS .............. ........... ........... 65 ........... 14 .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- ================================================================================== (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 ................. ................ ................. X X X 2. 1986 ................. ................ ................. X X X 3. 1987 ................. ................ .............. 51 X X X - ----------------------------------------------------------------------------------- 4. TOTALS ................. ................ .............. 51 X X X - -----------------------------------------------------------------------------------
=============================================================================================================================== TOTAL LOSSES AND LOSS EXPENSES INCURRED LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior X X X X X X X X X X X X X X X X X X ............ ............. 2. 1986 ............... ........... .............. .................. ............ ............ ............ ............. 3. 1987 ........... 959 ....... 253 .......... 706 ............ 124.7 ...... 220.0 ...... 108.0 ............ ............. - ------------------------------------------------------------------------------------------------------------------------------- 4. TOTALS X X X X X X X X X X X X X X X X X X ............ ............. - ------------------------------------------------------------------------------------------------------------------------------- =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ------------------------------------ Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X .................. ................. 2. 1986 .............. .................. ................. 3. 1987 ........ 100.0 ............... 51 ................. - --------------------------------------------------------------- 4. TOTALS X X X ............... 51 ................. - ---------------------------------------------------------------
94 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ................. ................. ........... 2. 1986 ............. ............... ................ ............... ................. ................. ........... 3. 1987 ............. ............... ................ ............... ................. ................. ........... 4. 1988 ............. ............... ................ ............... ................. ................. ........... 5. 1989 ............. ............... ................ ............... ................. ................. ........... 6. 1990 ............. ............... ................ ............... ................. ................. ........... 7. 1991 ............. ............... ................ ............... ................. ................. ........... 8. 1992 ............. ............... ................ ............... ................. ................. ........... 9. 1993 ............. ............... ................ ............... ................. ................. ........... 10. 1994 ............. ............... ................ ............... ................. ................. ........... 11. 1995 ............. ............... ................ ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- ======================================================================== (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 .............. ............... ............... X X X 2. 1986 .............. ............... ............... .......... 3. 1987 .............. ............... ............... .......... 4. 1988 .............. ............... ............... .......... 5. 1989 .............. ............... ............... .......... 6. 1990 .............. ............... ............... .......... 7. 1991 .............. ............... ............... .......... 8. 1992 .............. ............... ............... .......... 9. 1993 .............. ............... ............... .......... 10. 1994 .............. ............... ............... .......... 11. 1995 .............. ............... ............... .......... - ------------------------------------------------------------------------ 12. TOTALS .............. ............... ............... 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 .............. ........... .............. .............. .............. .............. ............. ......... 2. 1986 .............. ........... .............. 3. 1987 .............. ........... .............. 4. 1988 .............. ........... .............. 5. 1989 .............. ........... .............. 6. 1990 .............. ........... .............. N O N E 7. 1991 .............. ........... .............. 8. 1992 .............. ........... .............. 9. 1993 .............. ........... .............. 10. 1994 .............. ........... .............. 11. 1995 .............. ........... .............. .............. .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- 12. TOTALS .............. ........... .............. .............. .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- ================================================================================== (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 .............. ................ ................. ................. 2. 1986 .......... ................ ................. ................. 3. 1987 .......... ................ ................. ................. 4. 1988 .......... ................ ................. ................. 5. 1989 .......... ................ ................. ................. 6. 1990 .......... ................ ................. ................. 7. 1991 .......... ................ ................. ................. 8. 1992 .......... ................ ................. ................. 9. 1993 .......... ................ ................. ................. 10. 1994 .......... ................ ................. ................. 11. 1995 .............. ................ ................. ................. - ---------------------------------------------------------------------------------- 12. TOTALS .............. ................ ................. ................. - ----------------------------------------------------------------------------------
================================================================================================================================ TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior X X X X X X X X X X X X X X X X X X ............. ............. 2. 1986 .............. ........... .............. .............. .............. .............. ............. ............. 3. 1987 .............. ........... .............. .............. .............. .............. ............. ............. 4. 1988 .............. ........... .............. .............. .............. .............. ............. ............. 5. 1989 .............. ........... .............. .............. .............. .............. ............. ............. 6. 1990 .............. ........... .............. .............. .............. .............. ............. ............. 7. 1991 .............. ........... .............. .............. .............. .............. ............. ............. 8. 1992 .............. ........... .............. .............. .............. .............. ............. ............. 9. 1993 .............. ........... .............. .............. .............. .............. ............. ............. 10. 1994 .............. ........... .............. .............. .............. .............. ............. ............. 11. 1995 .............. ........... .............. .............. .............. .............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X X X X X X X X X X ............. ............. - ------------------------------------------------------------------------------------------------------------------------------- =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X .................. ................. 2. 1986 .............. .................. ................. 3. 1987 .............. .................. ................. 4. 1988 .............. .................. ................. 5. 1989 .............. .................. ................. 6. 1990 .............. .................. ................. 7. 1991 .............. .................. ................. 8. 1992 .............. .................. ................. 9. 1993 .............. .................. ................. 10. 1994 .............. .................. ................. 11. 1995 .............. .................. ................. - --------------------------------------------------------------- 12. TOTALS X X X .................. ................. - ---------------------------------------------------------------
95 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ................. ................. ........... 2. 1986 ............. ............... ................ ............... ................. ................. ........... 3. 1987 ............. ............... ................ ............... ................. ................. ........... 4. 1988 ............. ............... ................ ............... ................. ................. ........... 5. 1989 ............. ............... ................ ............... ................. ................. ........... 6. 1990 ............. ............... ................ ............... ................. ................. ........... 7. 1991 ............. ............... ................ ............... ................. ................. ........... 8. 1992 ............. ............... ................ ............... ................. ................. ........... 9. 1993 ............. ............... ................ ............... ................. ................. ........... 10. 1994 ............. ............... ................ ............... ................. ................. ........... 11. 1995 ............. ............... ................ ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- ======================================================================== (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 .............. ............... ............... X X X 2. 1986 .............. ............... ............... .......... 3. 1987 .............. ............... ............... .......... 4. 1988 .............. ............... ............... .......... 5. 1989 .............. ............... ............... .......... 6. 1990 .............. ............... ............... .......... 7. 1991 .............. ............... ............... .......... 8. 1992 .............. ............... ............... .......... 9. 1993 .............. ............... ............... .......... 10. 1994 .............. ............... ............... .......... 11. 1995 .............. ............... ............... .......... - ------------------------------------------------------------------------- 12. TOTALS .............. ............... ............... 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 .............. ........... .............. .............. .............. .............. ............. ......... 2. 1986 .............. ........... .............. 3. 1987 .............. ........... .............. 4. 1988 .............. ........... .............. 5. 1989 .............. ........... .............. 6. 1990 .............. ........... .............. N O N E 7. 1991 .............. ........... .............. 8. 1992 .............. ........... .............. 9. 1993 .............. ........... .............. 10. 1994 .............. ........... .............. 11. 1995 .............. ........... .............. .............. .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- 12. TOTALS .............. ........... .............. .............. .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- ================================================================================== (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 .............. ................ ................. ................. 2. 1986 .......... ................ ................. ................. 3. 1987 .......... ................ ................. ................. 4. 1988 .......... ................ ................. ................. 5. 1989 .......... ................ ................. ................. 6. 1990 .......... ................ ................. ................. 7. 1991 .......... ................ ................. ................. 8. 1992 .......... ................ ................. ................. 9. 1993 .......... ................ ................. ................. 10. 1994 .......... ................ ................. ................. 11. 1995 .............. ................ ................. ................. - ---------------------------------------------------------------------------------- 12. TOTALS .............. ................ ................. ................. - ----------------------------------------------------------------------------------
=============================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY ------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Net Direct and Ceded Net Loss Loss Assumed Ceded Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior X X X X X X X X X X X X X X X X X X ............. ............. 2. 1986 .............. ........... .............. .............. .............. .............. ............. ............. 3. 1987 .............. ........... .............. .............. .............. .............. ............. ............. 4. 1988 .............. ........... .............. .............. .............. .............. ............. ............. 5. 1989 .............. ........... .............. .............. .............. .............. ............. ............. 6. 1990 .............. ........... .............. .............. .............. .............. ............. ............. 7. 1991 .............. ........... .............. .............. .............. .............. ............. ............. 8. 1992 .............. ........... .............. .............. .............. .............. ............. ............. 9. 1993 .............. ........... .............. .............. .............. .............. ............. ............. 10. 1994 .............. ........... .............. .............. .............. .............. ............. ............. 11. 1995 .............. ........... .............. .............. .............. .............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X X X X X X X X X X ............. ............. - ------------------------------------------------------------------------------------------------------------------------------- =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company --------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X .................. ................. 2. 1986 .............. .................. ................. 3. 1987 .............. .................. ................. 4. 1988 .............. .................. ................. 5. 1989 .............. .................. ................. 6. 1990 .............. .................. ................. 7. 1991 .............. .................. ................. 8. 1992 .............. .................. ................. 9. 1993 .............. .................. ................. 10. 1994 .............. .................. ................. 11. 1995 .............. .................. ................. - --------------------------------------------------------------- 12. TOTALS X X X .................. ................. - ---------------------------------------------------------------
96 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............... ................. ................. ........... 2. 1994 ............. ............... ................ ............... ................. ................. ........... 3. 1995 ............. ............... ................ ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- 4. TOTALS X X X X X X X X X ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- ======================================================================== (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 .............. ............... ............... X X X 2. 1994 .............. ............... ............... X X X 3. 1995 .............. ............... ............... X X X - ------------------------------------------------------------------------- 4. TOTALS .............. ............... ............... 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 .............. ........... .............. 2. 1994 .............. ........... .............. N O N E 3. 1995 .............. ........... .............. - -------------------------------------------------------------------------------------------------------------------------- 4. TOTALS .............. ........... .............. .............. .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- ================================================================================== (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 ............. ................ ................. ................ 2. 1994 ............. ................ ................. ................ 3. 1995 ............. ................ ................. ................ - ---------------------------------------------------------------------------------- 4. TOTALS ............. ................ ................. ................ - ----------------------------------------------------------------------------------
=============================================================================================================================== TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior X X X X X X X X X X X X X X X X X X ............ ............. 2. 1994 ............... ........... .............. .................. ............ ............ ............ ............. 3. 1995 ............... ........... .............. .................. ............ ............ ............ ............. - ------------------------------------------------------------------------------------------------------------------------------- 4. TOTALS X X X X X X X X X X X X X X X X X X ............ ............. - ------------------------------------------------------------------------------------------------------------------------------- =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ----------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X .................. ................. 2. 1994 .............. .................. ................. 3. 1995 .............. .................. ................. - --------------------------------------------------------------- 4. TOTALS X X X .................. ................. - ---------------------------------------------------------------
97 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 10 YEAR BREAKOUT FOR SCHEDULE P - PART 1S - FINANCIAL GUARANTY / MORTGAGE GUARANTY ( $000 Omitted ) (For inhouse use only - Do not submit to NAIC)
=========================================================================================================================== (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 ............... ................. ................. ........... 2. 1986 ............. ............... ................ ............... ................. ................. ........... 3. 1987 ............. ............... ................ ............... ................. ................. ........... 4. 1988 ............. ............... ................ ............... ................. ................. ........... 5. 1989 ............. ............... ................ ............... ................. ................. ........... 6. 1990 ............. ............... ................ ............... ................. ................. ........... 7. 1991 ............. ............... ................ ............... ................. ................. ........... 8. 1992 ............. ............... ................ ............... ................. ................. ........... 9. 1993 ............. ............... ................ ............... ................. ................. ........... 10. 1994 ............. ............... ................ ............... ................. ................. ........... 11. 1995 ............. ............... ................ ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X ............... ................. ................. ........... - --------------------------------------------------------------------------------------------------------------------------- ======================================================================== (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 .............. ............... ............... X X X 2. 1986 .............. ............... ............... X X X 3. 1987 .............. ............... ............... X X X 4. 1988 .............. ............... ............... X X X 5. 1989 .............. ............... ............... X X X 6. 1990 .............. ............... ............... X X X 7. 1991 .............. ............... ............... X X X 8. 1992 .............. ............... ............... X X X 9. 1993 .............. ............... ............... X X X 10. 1994 .............. ............... ............... X X X 11. 1995 .............. ............... ............... X X X - ------------------------------------------------------------------------- 12. TOTALS .............. ............... ............... 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 .............. ........... .............. .............. .............. .............. ............. ......... 2. 1986 .............. ........... .............. .............. .............. .............. ............. ......... 3. 1987 .............. ........... .............. .............. .............. .............. ............. ......... 4. 1988 .............. ........... .............. .............. .............. .............. ............. ......... 5. 1989 .............. ........... .............. .............. .............. .............. ............. ......... 6. 1990 .............. ........... .............. .............. .............. .............. ............. ......... 7. 1991 .............. ........... .............. .............. .............. .............. ............. ......... 8. 1992 .............. ........... .............. .............. .............. .............. ............. ......... 9. 1993 .............. ........... .............. .............. .............. .............. ............. ......... 10. 1994 .............. ........... .............. .............. .............. .............. ............. ......... 11. 1995 .............. ........... .............. .............. .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- 12. TOTALS .............. ........... .............. .............. .............. .............. ............. ......... - -------------------------------------------------------------------------------------------------------------------------- ================================================================================== (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 .............. ................ ................. ................. 2. 1986 .............. ................ ................. ................. 3. 1987 .............. ................ ................. ................. 4. 1988 .............. ................ ................. ................. 5. 1989 .............. ................ ................. ................. 6. 1990 .............. ................ ................. ................. 7. 1991 .............. ................ ................. ................. 8. 1992 .............. ................ ................. ................. 9. 1993 .............. ................ ................. ................. 10. 1994 .............. ................ ................. ................. 11. 1995 .............. ................ ................. ................. - ---------------------------------------------------------------------------------- 12. TOTALS .............. ................ ................. ................. - ----------------------------------------------------------------------------------
================================================================================================================================ TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY -------------------------------------------------------------------------------------------------------------------- (25) (26) (27) (28) (29) (30) (31) (32) Direct and Ceded Net Direct and Ceded Net Loss Loss Assumed Assumed Expense - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior X X X X X X X X X X X X X X X X X X ............. ............. 2. 1986 .............. ........... .............. .............. .............. .............. ............. ............. 3. 1987 .............. ........... .............. .............. .............. .............. ............. ............. 4. 1988 .............. ........... .............. .............. .............. .............. ............. ............. 5. 1989 .............. ........... .............. .............. .............. .............. ............. ............. 6. 1990 .............. ........... .............. .............. .............. .............. ............. ............. 7. 1991 .............. ........... .............. .............. .............. .............. ............. ............. 8. 1992 .............. ........... .............. .............. .............. .............. ............. ............. 9. 1993 .............. ........... .............. .............. .............. .............. ............. ............. 10. 1994 .............. ........... .............. .............. .............. .............. ............. ............. 11. 1995 .............. ........... .............. .............. .............. .............. ............. ............. - ------------------------------------------------------------------------------------------------------------------------------- 12. TOTALS X X X X X X X X X X X X X X X X X X ............. ............. - ------------------------------------------------------------------------------------------------------------------------------- =============================================================== (33) NET BALANCE SHEET RESERVES AFTER DISCOUNT Inter-Company ------------------------------- Pooling (34) (35) Participation Percentage Losses Loss Expenses Unpaid Unpaid - --------------------------------------------------------------- 1. Prior X X X .................. ................. 2. 1986 .............. .................. ................. 3. 1987 .............. .................. ................. 4. 1988 .............. .................. ................. 5. 1989 .............. .................. ................. 6. 1990 .............. .................. ................. 7. 1991 .............. .................. ................. 8. 1992 .............. .................. ................. 9. 1993 .............. .................. ................. 10. 1994 .............. .................. ................. 11. 1995 .............. .................. ................. - --------------------------------------------------------------- 12. TOTALS X X X .................. ................. - ---------------------------------------------------------------
97B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
==================================================================================================================================== (1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED ) DEVELOPMENT - ------------------------------------------------------------------------------------------------------------------------------------ Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 One Year Two Year - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 2. 1986 .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 3. 1987 .... X X X ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 4. 1988 .... X X X X X X ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 5. 1989 .... X X X X X X X X X ......... ......... ......... ......... ......... ......... ....... ......... ......... 6. 1990 .... X X X X X X X X X X X X ......... ......... ......... ......... ......... ....... ......... ......... 7. 1991 .... X X X X X X X X X X X X X X X ......... ......... ......... ......... ....... ......... ......... 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 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 X X X ...... 44 .... 50 ....... 6 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 X X X ... 257 X X X X X X - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS ... 6 ........ - ------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE P - PART 2B PRIVATE PASSENGER AUTO LIABILITY/MEDICAL ==================================================================================================================================== 1. Prior .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 2. 1986 .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 3. 1987 .... X X X ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 4. 1988 .... X X X X X X ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 5. 1989 .... X X X X X X X X X ......... ......... ......... ......... ......... ......... ....... ......... ......... 6. 1990 .... X X X X X X X X X X X X ......... NONE ......... ......... ......... ....... ......... ......... 7. 1991 .... X X X X X X X X X X X X X X X ......... ......... ......... ......... ....... ......... ......... 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 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 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 X X X ....... X X X X X X - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS ..... ........ - ------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE P - PART 2C COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL ==================================================================================================================================== 1. Prior .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 2. 1986 .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 3. 1987 .... X X X ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 4. 1988 .... X X X X X X ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 5. 1989 .... X X X X X X X X X ......... ......... ......... ......... ......... ......... ....... ......... ......... 6. 1990 .... X X X X X X X X X X X X ......... ......... ......... ......... ......... ....... ......... ......... 7. 1991 .... X X X X X X X X X X X X X X X ......... ......... ......... ......... ....... ......... ......... 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 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 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 X X X 135 X X X X X X - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS ..... ........ - ------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE P - PART 2D - WORKERS' COMPENSATION ==================================================================================================================================== 1. Prior .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 2. 1986 .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 3. 1987 .... X X X ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 4. 1988 .... X X X X X X ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 5. 1989 .... X X X X X X X X X ......... ......... ......... ......... ......... ......... ....... ......... ......... 6. 1990 .... X X X X X X X X X X X X ......... ......... ......... ......... ......... ....... ......... ......... 7. 1991 .... X X X X X X X X X X X X X X X ......... ......... ......... ......... ....... ......... ......... 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 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 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 X X X 3 X X X X X X - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS ..... ........ - ------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE P - PART 2E - COMMERCIAL MULTIPLE PERIL ==================================================================================================================================== 1. Prior .... 3,545 3,501 4,193 4,343 4,362 4,378 3,982 3,927 3,932 3,924 (8) (3) 2. 1986 .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 3. 1987 .... X X X ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 4. 1988 .... X X X X X X ......... ......... ......... ......... ......... ......... ......... ....... ......... ......... 5. 1989 .... X X X X X X X X X ......... ......... ......... ......... ......... ......... ....... ......... ......... 6. 1990 .... X X X X X X X X X X X X ......... ......... ......... ......... ......... ....... ......... ......... 7. 1991 .... X X X X X X X X X X X X X X X ......... ......... ......... ......... ....... ......... ......... 8. 1992 .... X X X X X X X X X X X X X X X X X X ...... 26 ...... 46 ...... 29 .... 28 ..... (1) .... (18) 9. 1993 .... X X X X X X X X X X X X X X X X X X X X X ..... 251 ..... 238 ... 221 .... (17) .... (30) 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 ..... 659 ... 763 .... 104 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 X X X . 1,241 X X X X X X - ------------------------------------------------------------------------------------------------------------------------------------ 12. TOTALS ...78 ....(51) - ------------------------------------------------------------------------------------------------------------------------------------
98 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ............. ............. ............. ............. ............. ............. ............. ............. 2. 1986 .............. ............. ............. ............. ............. ............. ............. ............. 3. 1987 .............. X X X ............. ............. ............. ............. ............. ............. 4. 1988 .............. X X X X X X ............. ............. ............. ............. ............. 5. 1989 .............. X X X X X X X X X ............. ............. ............. ............. 6. 1990 .............. X X X X X X X X X X X X ............. NONE ............. 7. 1991 .............. X X X X X X X X X X X X X X X ............. ............. 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 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 ............. ............. ............. ............. ............. .............. 2. 1986 .............. ............. ............. ............. ............. .............. 3. 1987 .............. ............. ............. ............. ............. .............. 4. 1988 .............. ............. ............. ............. ............. .............. 5. 1989 .............. ............. ............. ............. ............. .............. 6. 1990 .............. ............. ............. ............. ............. .............. 7. 1991 .............. ............. ............. ............. ............. .............. 8. 1992 .............. ............. ............. ............. ............. .............. 9. 1993 .............. ............. ............. ............. ............. .............. 10. 1994 .............. X X X ............. ............. ............. X X X 11. 1995 .............. X X X X X X ............. X X X X X X - ------------------------------------------------------------------------------------------------- 12. TOTALS ............. .............. - -------------------------------------------------------------------------------------------------
SCHEDULE P - PART 2F - SECTION 2 MEDICAL MALPRACTICE - CLAIMS-MADE ========================================================================================================================= 1. Prior .......... .............. ............. ............. ............. ............. ............. ............. 2. 1986 ........... .............. ............. ............. ............. ............. ............. ............. 3. 1987 ........... X X X ............. ............. ............. ............. ............. ............. 4. 1988 ........... X X X X X X ............. ............. ............. ............. ............. 5. 1989 ........... X X X X X X X X X ............. ............. ............. 6. 1990 ........... X X X X X X X X X X X X ............. NONE ............. 7. 1991 ........... X X X X X X X X X X X X X X X ............. ............. 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 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. 1986 ........... ............ ............. ............. ............. ............. 3. 1987 ........... ............ ............. ............. ............. ............. 4. 1988 ........... ............ ............. ............. ............. ............. 5. 1989 ........... ............ ............. ............. ............. ............. 6. 1990 ........... ............ ............. ............. ............. ............. 7. 1991 ........... ............ ............. ............. ............. ............. 8. 1992 ........... ............ ............. ............. ............. ............. 9. 1993 ........... ............ ............. ............. ............. ............. 10. 1994 ........... X X X ............. ............. ............. X X X 11. 1995 ........... X X X X X X ............. X X X X X X - ------------------------------------------------------------------------------------------- 12. TOTALS ............. ........... - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) ========================================================================================================================= 1. Prior .......... .............. ............. ............. ............. ............. ............. ............. 2. 1986 ........... .............. ............. ............. ............. ............. ............. ............. 3. 1987 ........... X X X ............. ............. ............. ............. ............. ............. 4. 1988 ........... X X X X X X ............. ............. ............. ............. ............. 5. 1989 ........... X X X X X X X X X ............. ............. ............. 6. 1990 ........... X X X X X X X X X X X X ............. NONE ............. 7. 1991 ........... X X X X X X X X X X X X X X X ............. ............. 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 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. 1986 ........... ............. ............. ............. ............. ................. 3. 1987 ........... ............. ............. ............. ............. ................. 4. 1988 ........... ............. ............. ............. ............. ................. 5. 1989 ........... ............. ............. ............. ............. ................. 6. 1990 ........... ............. ............. ............. ............. ................. 7. 1991 ........... ............. ............. ............. ............. ................. 8. 1992 ........... ............. ............. ............. ............. ................. 9. 1993 ........... ............. ............. ............. ............. ................. 10. 1994 ........... X X X ............. ............. ............. X X X 11. 1995 ........... X X X X X X ............. X X X X X X - ----------------------------------------------------------------------------------------------- 12. TOTALS ............. ................. - -----------------------------------------------------------------------------------------------
SCHEDULE P - PART 2H - SECTION 1 OTHER LIABILITY - OCCURRENCE ======================================================================================================================== 1. Prior .......... ...... 3,132 ...... 3,949 ...... 4,109 ...... 4,811 ..... 6,074 ...... 5,566 ...... 5,102 2. 1986 ........... ........ 175 ........ 136 ........ 143 ........ 143 ....... 143 ........ 143 ........ 143 3. 1987 ........... X X X ........ 119 ........ 104 ......... 74 ........ 74 ......... 74 ......... 74 4. 1988 ........... X X X X X X ......... 15 ............. ............ ............. ............. 5. 1989 ........... X X X X X X X X X ............. ............ ............. ............. 6. 1990 ........... X X X X X X X X X X X X ............ ............. ............. 7. 1991 ........... X X X X X X X X X X X X X X X ............. ............. 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 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 .......... ...... 5,335 ...... 5,305 ...... 5,304 ......... (1) ........ (31) 2. 1986 ........... ........ 142 ........ 143 ........ 143 ............. .......... 1 3. 1987 ........... ......... 74 ......... 74 ......... 74 ............. ............. 4. 1988 ........... ............. ............. ............. ............. ............. 5. 1989 ........... ............. ............. ............. ............. ............. 6. 1990 ........... ............. ............. ............. ............. ............. 7. 1991 ........... ............. ............. ............. ............. ............. 8. 1992 ........... ............. ............. ............. ............. ............. 9. 1993 ........... ............. ............. ............. ............. ............. 10. 1994 ........... X X X ............. ............. ............. X X X 11. 1995 ........... X X X X X X ........ 312 X X X X X X - ------------------------------------------------------------------------------------------- 12. TOTALS .......... (1) ........ (30) - -------------------------------------------------------------------------------------------
SCHEDULE P - PART 2H - SECTION 2 OTHER LIABILITY - CLAIMS-MADE ======================================================================================================================== 1. Prior .......... .............. ............. ............. ............. ............. ............. ............. 2. 1986 ........... .............. ............. ............. ............. ............. ............. ............. 3. 1987 ........... X X X ............. ............. ............. ............. ............. ............. 4. 1988 ........... X X X X X X ............. ............. ............. ............. ............. 5. 1989 ........... X X X X X X X X X ............. ............. ............. ............. 6. 1990 ........... X X X X X X X X X X X X ............. NONE ............. 7. 1991 ........... X X X X X X X X X X X X X X X ............. ............. 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 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. 1986 ........... ............. ............. ............. ............. ............. 3. 1987 ........... ............. ............. ............. ............. ............. 4. 1988 ........... ............. ............. ............. ............. ............. 5. 1989 ........... ............. ............. ............. ............. ............. 6. 1990 ........... ............. ............. ............. ............. ............. 7. 1991 ........... ............. ............. ............. ............. ............. 8. 1992 ........... ............. ............. ............. ............. ............. 9. 1993 ........... ............. ............. ............. ............. ............. 10. 1994 ........... X X X ............. ............. ............. X X X 11. 1995 ........... X X X X X X ............. X X X X X X - --------------------------------------------------------------------------------------------- 12. TOTALS .............. ............. - ---------------------------------------------------------------------------------------------
99 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 --------------------------------------------------------------------------------------------------- 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) ($000 OMITTED) DEVELOPMENT - -------------------------------------------------------------------------------------------------------- Years in Which (9) (10) (11) (12) (13) Losses Were Incurred 1993 1994 1995 One Year Two Year - -------------------------------------------------------------------------------------------------------- 1. Prior ......... ...... 13,821 ...... 13,806 ...... 13,772 ........ (34) ........ (49) 2. 1994 ......... X X X ...... 1,062 ...... 1,016 ........ (46) X X X 3. 1995 .......... X X X X X X ...... 1,159 X X X X X X - -------------------------------------------------------------------------------------------------------- 4. TOTALS ........ (80) ........ (49) - --------------------------------------------------------------------------------------------------------
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 ......... ............ 16 .......... 13 ......... 13 ............. ......... (3) 2. 1994 .......... X X X ......... 377 ........ 400 .......... 23 X X X 3. 1995 .......... X X X X X X ........ 754 X X X X X X - ---------------------------------------------------------------------------------------------- 4. TOTALS .......... 23 ......... (3) - ----------------------------------------------------------------------------------------------
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 ......... ........... ............. ............. ............. ........... 2. 1994 .......... X X X ............. ............. ............. X X X 3. 1995 .......... X X X X X X ........... 3 X X X X X X - ----------------------------------------------------------------------------------------------- 4. TOTALS ............. ........... - -----------------------------------------------------------------------------------------------
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 ......... ...... 176,154 .... 177,224 .... 177,139 ........ (85) ........ 985 2. 1994 .......... X X X ..... 47,177 ..... 48,994 ...... 1,817 X X X 3. 1995 .......... X X X X X X ..... 52,636 X X X X X X - ------------------------------------------------------------------------------------------------ 4. TOTALS ...... 1,732 ........ 985 - ------------------------------------------------------------------------------------------------
SCHEDULE P - PART 2M - INTERNATIONAL ======================================================================================================================== 1. Prior ......... ............... ............. ............. ............. ............. ............. ............. 2. 1986 .......... ............... ............. ............. ............. ............. ............. ............. 3. 1987 .......... X X X ............. ............. ............. ............. ............. ............. 4. 1988 .......... X X X X X X ............. ............. ............. ............. ............. 5. 1989 .......... X X X X X X X X X ............. ............. ............. ............. 6. 1990 .......... X X X X X X X X X X X X ............. NONE ............. 7. 1991 .......... X X X X X X X X X X X X X X X ............. ............. 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 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. 1986 .......... ............. ............. ............. ............. 3. 1987 .......... ............. ............. ............. ............. 4. 1988 .......... ............. ............. ............. ............. 5. 1989 .......... ............. ............. ............. ............. 6. 1990 .......... ............. ............. ............. ............. 7. 1991 .......... ............. ............. ............. ............. 8. 1992 .......... ............. ............. ............. ............. 9. 1993 .......... ............. ............. ............. ............. 10. 1994 .......... ............. ............. ............. X X X 11. 1995 .......... X X X ............. X X X X X X - ----------------------------------------------------------------------------- 12. TOTALS ............. .............. - -----------------------------------------------------------------------------
100 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 10 YEAR BREAKOUT FOR SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, GLASS, BURGLARY, AND THEFT) (For inhouse use only - Do not submit to NAIC)
==================================================================================================================================== (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...... ..........4,449 .......... 4,449 ......... 4,449 ........ 4,449 ........ 4,449 ........ 4,449 .......... 4,449 2. 1986 ...... ..........1,067 .......... 1,067 ......... 1,067 ........ 1,067 ........ 1,067 ........ 1,067 .......... 1,067 3. 1987 ...... X X X .......... 1,153 ......... 1,153 ........ 1,153 ........ 1,153 ........ 1,153 .......... 1,153 4. 1988 ...... X X X X X X ......... 1,249 ........ 1,249 ........ 1,249 ........ 1,249 .......... 1,249 5. 1989 ...... X X X X X X X X X ........ 1,201 ........ 1,198 ........ 1,181 .......... 1,182 6. 1990 ...... X X X X X X X X X X X X ........ 1,172 ........ 1,140 .......... 1,131 7. 1991 ...... X X X X X X X X X X X X X X X ........ 1,120 .......... 1,099 8. 1992 ...... X X X X X X X X X X X X X X X X X X .......... 1,689 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...... ........ 4,449 ......... 4,449 ........ 4,449 .......... ........... 2. 1986 ...... ........ 1,067 ......... 1,067 ........ 1,067 .......... ........... 3. 1987 ...... ........ 1,153 ......... 1,153 ........ 1,153 .......... ........... 4. 1988 ...... ........ 1,249 ......... 1,249 ........ 1,249 .......... ........... 5. 1989 ...... ........ 1,182 ......... 1,183 ........ 1,183 .......... ........ 1 6. 1990 ...... ........ 1,131 ......... 1,131 ........ 1,133 ....... 2. ........ 2 7. 1991 ...... ........ 1,077 ......... 1,078 ........ 1,078 .......... ........ 1 8. 1992 ...... ........ 1,749 ......... 1,738 ........ 1,735 ...... (3) ........(14) 9. 1993 ...... ........ 764 ......... 758 ........ 724 ..... (34) ........(40) 10. 1994 ...... X X X ......... 1,062 ........ 1,016 ..... (46) X X X 11. 1995 ...... X X X X X X ........ 1,159 X X X X X X - -------------------------------------------------------------------------------------- 12. TOTALS ........ (80) ......... (49) - --------------------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE ============================================================================================================================= 1. Prior ...... ........... ........... ........... ........... ........... ........... ............ 2. 1986 ...... ........... ........... ........... ........... ........... ........... ............ 3. 1987 ...... X X X ........... ........... ........... ........... ........... ............ 4. 1988 ...... X X X X X X ........... ........... ........... ........... ............ 5. 1989 ...... X X X X X X X X X ........... ........... ........... ............ 6. 1990 ...... X X X X X X X X X X X X ........... ........... ............ 7. 1991 ...... X X X X X X X X X X X X X X X ........... ............ 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 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. 1986 ...... ......... ......... ....... ......... ......... 3. 1987 ...... ......... ......... ....... ......... ......... 4. 1988 ...... ......... ......... ....... ......... ......... 5. 1989 ...... ......... ......... ....... ......... ......... 6. 1990 ...... ......... ......... ....... ......... ......... 7. 1991 ...... ......... ......... ....... ......... ......... 8. 1992 ...... ......... ......... ....... ......... ......... 9. 1993 ...... .......16 .......13 .....13 ......... ......(3) 10. 1994 ...... X X X ..... 377 ... 400 ...... 23 X X X 11. 1995 ...... X X X X X X ... 754 X X X X X X - -------------------------------------------------------------------------------------- 12. TOTALS ........... 23 ...........(3) - ------------------------------------------------------------------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 2K - FIDELITY, SURETY ==================================================================================================================================== 1. Prior ...... .......... ............ ........... ........... ............ ............ ............. 2. 1986 ...... .......... ............ ........... ........... ............ ............ ............. 3. 1987 ...... X X X ............ ........... ........... ............ ............ ............. 4. 1988 ...... X X X X X X ........... ........... ............ ............ ............. 5. 1989 ...... X X X X X X X X X ........... ............ ............ ............. 6. 1990 ...... X X X X X X X X X X X X ............ ............ ............. 7. 1991 ...... X X X X X X X X X X X X X X X ............ ............. 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 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. 1986 ........ ......... ......... ....... ......... ......... 3. 1987 ........ ......... ......... ....... ......... ......... 4. 1988 ........ ......... ......... ....... ......... ......... 5. 1989 ........ ......... ......... ....... ......... ......... 6. 1990 ........ ......... ......... ....... ......... ......... 7. 1991 ........ ......... ......... ....... ......... ......... 8. 1992 ........ ......... ......... ....... ......... ......... 9. 1993 ........ ......... ......... ....... ......... ......... 10. 1994 ........ X X X ......... ....... ......... X X X 11. 1995 ........ X X X X X X ..... 3 X X X X X X - -------------------------------------------------------------------------------------- 12. TOTALS ......... ......... - --------------------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) ==================================================================================================================================== 1. Prior........ ............ ............ ............. ............ .............. ............ ............... 2. 1986 ........ ...... 8,122 ...... 8,631 ....... 8,533 ...... 8,529 ........ 8,529 ...... 8,572 ........ 8,571 3. 1987 ........ X X X ..... 10,019 ...... 10,311 ......10,380 ....... 10,676 ..... 10,636 ........ 10,652 4. 1988 ........ X X X X X X ...... 16,208 ..... 14,828 ....... 14,743 ..... 14,684 ........ 14,696 5. 1989 ........ X X X X X X X X X ..... 21,340 ........21,626 ......21,459 ........ 21,409 6. 1990 ........ X X X X X X X X X X X X ....... 24,297 ..... 22,509 ........ 21,520 7. 1991 ........ X X X X X X X X X X X X X X X ..... 19,241 .........20,743 8. 1992 ........ X X X X X X X X X X X X X X X X X X ........ 31,074 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. 1986 ....... ..... 8,572 ..... 8,571 ..... 8,571 ........... ...... (1) 3. 1987 ....... .... 10,655 .... 10,655 .... 10,655 ........... .......... 4. 1988 ....... .... 14,697 .... 14,697 .... 14,697 ........... .......... 5. 1989 ....... .... 21,410 .... 21,410 .... 21,410 ........... .......... 6. 1990 ....... .... 21,475 .... 21,474 .... 21,474 ........... .......(1) 7. 1991 ....... .... 20,504 .... 20,471 .... 20,464 ....... (7) ......(40) 8. 1992 ....... .... 32,868 .... 32,981 .... 32,947 .......(34) ...... 79 9. 1993 ....... .... 45,973 .... 46,965 .... 46,922 .......(43) .... 949 10. 1994 ....... X X X .. ..47,177 .... 48,994 ..... 1,817 X X X 11. 1995 ....... X X X X X X .... 52,636 X X X X X X - -------------------------------------------------------------------------------------- 12. TOTALS ......... 1,732 ....... 985 - --------------------------------------------------------------------------------------
SCHEDULE P - PART 2M - INTERNATIONAL ==================================================================================================================================== 1. Prior ........ ........... ............. ............ ........... ........... ............. .............. 2. 1986 ........ ........... ............. ............ ........... ........... ............. .............. 3. 1987 ........ X X X ............. ............ ........... ........... ............. .............. 4. 1988 ........ X X X X X X ............ ........... ........... ............. .............. 5. 1989 ........ X X X X X X X X X ........... ........... ............. ............. 6. 1990 ........ X X X X X X X X X X X X ........... ............. ............. 7. 1991 ........ X X X X X X X X X X X X X X X ............. ............. 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 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. 1986 .......... ............. ............ ........... ......... ........ 3. 1987 .......... ............. ............ ........... ......... ........ 4. 1988 .......... ............. ............ ........... ......... ........ 5. 1989 .......... ............. ............ ........... ......... ........ 6. 1990 .......... ............. ............ ........... ......... ........ 7. 1991 .......... ............. ............ ........... ......... ........ 8. 1992 .......... ............. ............ ........... ......... ........ 9. 1993 .......... ............. ............ ........... ......... ........ 10. 1994 ......... X X X ............ ........... ......... X X X 11. 1995 ......... X X X X X X ........... X X X X X X - -------------------------------------------------------------------------------------- 12. TOTALS .......... ......... - --------------------------------------------------------------------------------------
100B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 2N - REINSURANCE A
==================================================================================================================================== (1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED ) DEVELOPMENT --------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 One Year Two Year - ------------------------------------------------------------------------------------------------------------------------------------ 1. 1988 ..... X X X X X X ... 1,116 ..... 994 ..... 929 ..... 710 ..... 706 ..... 648 ..... 651 .... 644 ..... (7) ..... (4) 2. 1989 ..... X X X X X X X X X ... 2,256 ... 2,079 ... 1,865 ... 1,567 ... 1,607 ... 1,537 .. 1,539 ...... 2 .... (68) 3. 1990 ..... X X X X X X X X X X X X ... 1,539 ... 1,515 ... 1,087 ... 1,031 ..... 934 .... 880 .... (54) ... (151) 4. 1991 ..... X X X X X X X X X X X X X X X ... 1,762 ... 1,870 ... 1,830 ... 1,749 .. 1,693 .... (56) ... (137) 5. 1992 ..... X X X X X X X X X X X X X X X X X X ... 3,508 ... 3,808 ... 3,503 .. 3,727 .... 224 .... (81) 6. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ... 3,987 ... 4,511 .. 4,662 .... 151 .... 675 7. 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 ... 6,683 .. 6,807 .... 124 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 X X X X X X .. 7,394 X X X X X X - ------------------------------------------------------------------------------------------------------------------------------------ 9. TOTALS .. 384 .... 234 - ------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE P - PART 2O - REINSURANCE B ==================================================================================================================================== 1. 1988 ..... X X X X X X ... 3,879 ... 4,101 ... 4,115 ... 4,548 ... 4,967 ... 4,598 ... 4,485 .. 4,190 ... (295) .... (408) 2. 1989 ..... X X X X X X X X X ... 7,898 ... 7,908 ... 7,583 ... 7,872 ... 6,867 ... 5,776 .. 5,467 ... (309) .. (1,400) 3. 1990 ..... X X X X X X X X X X X X ... 7,493 ... 7,142 ... 7,170 ... 7,229 ... 6,985 .. 6,964 .... (21) .... (265) 4. 1991 ..... X X X X X X X X X X X X X X X ... 6,509 ... 6,726 ... 6,853 ... 7,889 .. 6,916 ... (973) ...... 63 5. 1992 ..... X X X X X X X X X X X X X X X X X X ... 4,715 ... 5,042 ... 5,742 .. 5,331 ... (411) ..... 289 6. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ... 4,506 ... 4,755 .. 5,169 .... 414 ..... 663 7. 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 ... 5,472 .. 6,907 .. 1,435 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 X X X X X X . 10,326 X X X X X X - ----------------------------------------------------------------------------------------------------------------------------------- 9. TOTALS ...(160) .. (1,058) - -----------------------------------------------------------------------------------------------------------------------------------
SCHEDULE P - PART 2P - REINSURANCE C =================================================================================================================================== 1. 1988 ..... X X X X X X ......... ......... ......... ......... ......... ......... ......... ........ .......... ......... 2. 1989 ..... X X X X X X X X X ......... ......... ......... ......... ......... ......... ........ .......... ......... 3. 1990 ..... X X X X X X X X X X X X ......... ......... ......... ......... ......... ........ .......... ......... 4. 1991 ..... X X X X X X X X X X X X X X X ......... ......... ......... ........ .......... ......... 5. 1992 ..... X X X X X X X X X X X X X X X N O N E ......... ......... ......... ........ .......... ......... 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 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 X X X X X X ........ X X X X X X - ----------------------------------------------------------------------------------------------------------------------------------- 9. TOTALS .......... ......... - -----------------------------------------------------------------------------------------------------------------------------------
SCHEDULE P - PART 2Q - REINSURANCE D =================================================================================================================================== 1. Prior .... ......... ....... ....... ......... ......... ......... ......... ......... ......... ........ ........ .......... 2. 1986 ..... ......... ....... ........ ......... ......... ......... ......... ......... ......... ........ ........ .......... 3. 1987 ..... X X X .. 396 ... 733 .... 872 .... 731 .... 663 .... 666 .... 663 .....663 ....663 ........ ......... - ----------------------------------------------------------------------------------------------------------------------------------- 4. TOTALS ........ ......... - -----------------------------------------------------------------------------------------------------------------------------------
101 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (9) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 - ------------------------------------------------------------------------------------------------------------------------------ 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ NONE ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ ............ 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 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 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 ........ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ 3. 1987 ......... ............ ............ ............ ............ 4. 1988 ......... ............ ............ ............ ............ 5. 1989 ......... ............ ............ ............ ............ 6. 1990 ......... ............ ............ ............ ............ 7. 1991 ......... ............ ............ ............ ............ 8. 1992 ......... ............ ............ ............ ............ 9. 1993 ......... ............ ............ ............ ............ 10. 1994 ......... ............ ............ ............ X X X 11. 1995 ......... X X X ............ X X X X X X - ---------------------------------------------------------------------------- 12 TOTALS ............ ............ - ----------------------------------------------------------------------------
SCHEDULE P - PART 2R - SECTION 2 PRODUCT LIABILITY - CLAIMS-MADE ============================================================================================================================== 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ NONE ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ ............ 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 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 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. Prior ........ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ 3. 1987 ......... ............ ............ ............ ............ 4. 1988 ......... ............ ............ ............ ............ 5. 1989 ......... ............ ............ ............ ............ 6. 1990 ......... ............ ............ ............ ............ 7. 1991 ......... ............ ............ ............ ............ 8. 1992 ......... ............ ............ ............ ............ 9. 1993 ......... ............ ............ ............ ............ 10. 1994 ......... ............ ............ ............ X X X 11. 1995 ......... X X X ............ X X X X X X - ---------------------------------------------------------------------------- 12. TOTALS ............ ............ - ----------------------------------------------------------------------------
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 ............ 2. 1994 ......... X X X X X X X X X X X X X X X NONE 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. 1994 ......... ............ ............ ............ X X X 3. 1995 ......... X X X ............ X X X X X X - -------------------------------------------------------------------------- 4. TOTALS ............ ............ - --------------------------------------------------------------------------
102 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE ( $000 Omitted ) (For inhouse use only - Do not submit to NAIC)
============================================================================================================================== (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 ........ ............ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ ............ 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 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 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 ........ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ 3. 1987 ......... ............ ............ ............ ............ 4. 1988 ......... ............ ............ ............ ............ 5. 1989 ......... ............ ............ ............ ............ 6. 1990 ......... ............ ............ ............ ............ 7. 1991 ......... ............ ............ ............ ............ 8. 1992 ......... ............ ............ ............ ............ 9. 1993 ......... ............ ............ ............ ............ 10. 1994 ......... ............ ............ ............ X X X 11. 1995 ......... X X X ............ X X X X X X - ---------------------------------------------------------------------------- 12 TOTALS ............ ............ - ----------------------------------------------------------------------------
SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE ============================================================================================================================== 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ ............ 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 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 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. Prior ........ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ 3. 1987 ......... ............ ............ ............ ............ 4. 1988 ......... ............ ............ ............ ............ 5. 1989 ......... ............ ............ ............ ............ 6. 1990 ......... ............ ............ ............ ............ 7. 1991 ......... ............ ............ ............ ............ 8. 1992 ......... ............ ............ ............ ............ 9. 1993 ......... ............ ............ ............ ............ 10. 1994 ......... ............ ............ ............ X X X 11. 1995 ......... X X X ............ X X X X X X - ---------------------------------------------------------------------------- 12 TOTALS ............ ............ - ----------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 2S - FINANCIAL GUARANTY / MORTGAGE GUARANTY ============================================================================================================================== 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ ............ 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 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 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. Prior ........ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ 3. 1987 ......... ............ ............ ............ ............ 4. 1988 ......... ............ ............ ............ ............ 5. 1989 ......... ............ ............ ............ ............ 6. 1990 ......... ............ ............ ............ ............ 7. 1991 ......... ............ ............ ............ ............ 8. 1992 ......... ............ ............ ............ ............ 9. 1993 ......... ............ ............ ............ ............ 10. 1994 ......... ............ ............ ............ X X X 11. 1995 ......... X X X ............ X X X X X X - ---------------------------------------------------------------------------- 12 TOTALS ............ ............ - ----------------------------------------------------------------------------
102B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (9) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 - -------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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) ------------------------- Number of Number of Years in Which (10) (11) Claims Closed Claims Closed Losses Were With Loss Without Loss Incurred 1994 1995 Payment Payment - --------------------------------------------------------------------------- 1. Prior ..... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... 3. 1987 ...... ........... ........... ........... ........... 4. 1988 ...... ........... ........... ........... ........... 5. 1989 ...... ........... ........... ........... ........... 6. 1990 ...... ........... ........... ........... ........... 7. 1991 ...... ........... ........... ........... ........... 8. 1992 ...... ........... ........... ........... ........... 9. 1993 ...... ........... ........... ........... ........... 10. 1994 ...... ........ 37 ........ 45 ........ 11 ......... 3 11. 1995 ...... X X X ....... 158 ........ 88 ........ 36 - ---------------------------------------------------------------------------
SCHEDULE P - PART 3B PRIVATE PASSENGER AUTO LIABILITY/MEDICAL ========================================================================================================================== 1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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. Prior ..... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... 3. 1987 ...... ........... ........... ........... ........... 4. 1988 ...... ........... ........... ........... ........... 5. 1989 ...... ........... ........... ........... ........... 6. 1990 ...... ........... ........... ........... ........... 7. 1991 ...... ........... ........... ........... ........... 8. 1992 ...... ........... ........... ........... ........... 9. 1993 ...... ........... ........... ........... ........... 10. 1994 ...... ........... ........... ........... ........... 11. 1995 ...... X X X ........... ........... ........... - ---------------------------------------------------------------------------
SCHEDULE P - PART 3C COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL ========================================================================================================================== 1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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. Prior ..... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... 3. 1987 ...... ........... ........... ........... ........... 4. 1988 ...... ........... ........... ........... ........... 5. 1989 ...... ........... ........... ........... ........... 6. 1990 ...... ........... ........... ........... ........... 7. 1991 ...... ........... ........... ........... ........... 8. 1992 ...... ........... ........... ........... ........... 9. 1993 ...... ........... ........... ........... ........... 10. 1994 ...... ........... ........... ........... ........... 11. 1995 ...... X X X ........ 30 ........ 11 ......... 8 - ---------------------------------------------------------------------------
SCHEDULE P - PART 3D - WORKERS' COMPENSATION ========================================================================================================================== 1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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. Prior ..... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... 3. 1987 ...... ........... ........... ........... ........... 4. 1988 ...... ........... ........... ........... ........... 5. 1989 ...... ........... ........... ........... ........... 6. 1990 ...... ........... ........... ........... ........... 7. 1991 ...... ........... ........... ........... ........... 8. 1992 ...... ........... ........... ........... ........... 9. 1993 ...... ........... ........... ........... ........... 10. 1994 ...... ........... ........... ........... ........... 11. 1995 ...... X X X ......... 1 ......... 1 ........... - ---------------------------------------------------------------------------
SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL ========================================================================================================================== 1. Prior ..... 0 0 0 ..... 2,148 ..... 2,445 ..... 2,606 ..... 2,773 ...... 3,887 ..... 3,891 ..... 3,913 2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ........ 15 9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ........ 53 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. Prior ..... ..... 3,915 ..... 3,915 ....... 603 ....... 201 2. 1986 ...... ........... ........... ........... ........... 3. 1987 ...... ........... ........... ........... ........... 4. 1988 ...... ........... ........... ........... ........... 5. 1989 ...... ........... ........... ........... ........... 6. 1990 ...... ........... ........... ........... ........... 7. 1991 ...... ........... ........... ........... ........... 8. 1992 ...... ........ 15 ........ 16 ......... 1 ......... 2 9. 1993 ...... ....... 101 ....... 190 ........ 40 ........ 17 10. 1994 ...... ....... 170 ....... 530 ........ 70 ........ 42 11. 1995 ...... X X X ....... 431 ........ 54 ........ 35 - ---------------------------------------------------------------------------
103 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (9) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 - -------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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) ------------------------- Number of Number of Years in Which (10) (11) Claims Closed Claims Closed Losses Were With Loss Without Loss Incurred 1994 1995 Payment Payment - --------------------------------------------------------------------------- 1. Prior ..... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... 3. 1987 ...... ........... ........... ........... ........... 4. 1988 ...... ........... ........... ........... ........... 5. 1989 ...... ........... ........... ........... ........... 6. 1990 ...... ........... ........... ........... ........... 7. 1991 ...... ........... ........... ........... ........... 8. 1992 ...... ........... ........... ........... ........... 9. 1993 ...... ........... ........... ........... ........... 10. 1994 ...... ........... ........... ........... ........... 11. 1995 ...... X X X ........... ........... ........... - ---------------------------------------------------------------------------
SCHEDULE P - PART 3F - SECTION 2 MEDICAL MALPRACTICE - CLAIMS-MADE ========================================================================================================================== 1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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. Prior ..... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... 3. 1987 ...... ........... ........... ........... ........... 4. 1988 ...... ........... ........... ........... ........... 5. 1989 ...... ........... ........... ........... ........... 6. 1990 ...... ........... ........... ........... ........... 7. 1991 ...... ........... ........... ........... ........... 8. 1992 ...... ........... ........... ........... ........... 9. 1993 ...... ........... ........... ........... ........... 10. 1994 ...... ........... ........... ........... ........... 11. 1995 ...... X X X ........... ........... ........... - ----------------------------------------------------------------------
SCHEDULE P - PART 3G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) ========================================================================================================================== 1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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. Prior ..... ........... ........... X X X X X X 2. 1986 ...... ........... ........... X X X X X X 3. 1987 ...... ........... ........... X X X X X X 4. 1988 ...... ........... ........... X X X X X X 5. 1989 ...... ........... ........... X X X X X X 6. 1990 ...... ........... ........... X X X X X X 7. 1991 ...... ........... ........... X X X X X X 8. 1992 ...... ........... ........... X X X X X X 9. 1993 ...... ........... ........... X X X X X X 10. 1994 ...... ........... ........... X X X X X X 11. 1995 ...... X X X ........... X X X X X X - -----------------------------------------------------------------------
SCHEDULE P - PART 3H - SECTION 1 OTHER LIABILITY - OCCURRENCE ========================================================================================================================== 1. Prior ..... 0 0 0 ..... 3,933 ..... 4,051 ..... 4,099 ..... 4,929 ..... 4,950 ..... 5,045 ..... 5,108 2. 1986 ...... ....... 109 ....... 134 ....... 147 ....... 143 ....... 143 ....... 143 ....... 143 ....... 143 3. 1987 ...... X X X ........ 54 ........ 74 ........ 74 ........ 74 ........ 74 ........ 74 ........ 74 4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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. Prior ..... ..... 5,134 ..... 5,146 ..... 1,182 ....... 261 2. 1986 ...... ....... 143 ....... 143 ....... 570 ......... 5 3. 1987 ...... ........ 74 ........ 74 ....... 297 ......... 3 4. 1988 ...... ........... ........... ........... ........... 5. 1989 ...... ........... ........... ........... ........... 6. 1990 ...... ........... ........... ........... ........... 7. 1991 ...... ........... ........... ........... ........... 8. 1992 ...... ........... ........... ........... ........... 9. 1993 ...... ........... ........... ........... ........... 10. 1994 ...... ........... ........... ........... ........... 11. 1995 ...... X X X ......... 4 ..........3 ......... 2 - ----------------------------------------------------------------------
SCHEDULE P - PART 3H - SECTION 2 OTHER LIABILITY - CLAIMS-MADE ========================================================================================================================== 1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ........... 5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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. Prior ..... ........... ........... ........... ........... 2. 1986 ...... ........... ........... ........... ........... 3. 1987 ...... ........... ........... ........... ........... 4. 1988 ...... ........... ........... ........... ........... 5. 1989 ...... ........... ........... ........... ........... 6. 1990 ...... ........... ........... ........... ........... 7. 1991 ...... ........... ........... ........... ........... 8. 1992 ...... ........... ........... ........... ........... 9. 1993 ...... ........... ........... ........... ........... 10. 1994 ...... ........... ........... ........... ........... 11. 1995 ...... X X X ........... ........... ........... - ---------------------------------------------------------------------------
104 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (9) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ......... X X X X X X X X X X X X X X X X X X X X X 0 0 0 2. 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 3. 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 - ----------------------------------------------------------------------------------------------------------------------------------- ============================================================================ (12) (13) ----------------------------- Number of Number of (10) (11) Claims Closed Claims Closed With Loss Without Loss 1994 1995 Payment Payment - ------------------------------------------------------------------------------ 1. Prior ......... ...... 13,768 ...... 13,771 X X X X X X 2. 1994 .......... ......... 747 ......... 989 X X X X X X 3. 1995 .......... X X X ......... 666 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 0 0 0 2. 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 3. 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. Prior ......... .......... 13 .......... 13 .......... 12 ........... 4 2. 1994 .......... ......... 229 ......... 378 ......... 375 ......... 168 3. 1995 .......... X X X ......... 546 ..........471 ......... 192 - -------------------------------------------------------------------------------------
SCHEDULE P - PART 3K - FIDELITY / SURETY ================================================================================================================================== 1. Prior ......... X X X X X X X X X X X X X X X NONE X X X 0 0 0 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 X X X - ---------------------------------------------------------------------------------------------------------------------------------- ============================================================ 1. Prior ......... ........ X X X X X X 2. 1994 .......... ........ X X X X X X 3. 1995 .......... ........ 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 0 0 0 2. 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 3. 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. Prior ......... ........ 176,682 177,079 X X X X X X 2. 1994 .......... ......... 29,654 48,500 X X X X X X 3. 1995 .......... X X X 35,294 X X X X X X - ----------------------------------------------------------------------
SCHEDULE P - PART 3M - INTERNATIONAL =================================================================================================================================== 1. Prior ......... 0 0 0 .............. ............ ........... ............ ........... ............ .............. 2. 1986 .......... ........ .............. ............ ........... ............ ........... ............ .............. 3. 1987 .......... X X X .............. ............ ........... ............ ........... ............ .............. 4. 1988 .......... X X X X X X ............ ........... ............ NONE ............ .............. 5. 1989 .......... X X X X X X X X X ........... ............ ........... ............ .............. 6. 1990 .......... X X X X X X X X X X X X ............ ........... ............ .............. 7. 1991 .......... X X X X X X X X X X X X X X X ........... ............ .............. 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 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 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. Prior ......... ............... .............. X X X X X X 2. 1986 .......... ............... .............. X X X X X X 3. 1987 .......... ............... .............. X X X X X X 4. 1988 .......... ............... .............. X X X X X X 5. 1989 .......... ............... .............. X X X X X X 6. 1990 .......... ............... .............. X X X X X X 7. 1991 .......... ............... .............. X X X X X X 8. 1992 .......... ............... .............. X X X X X X 9. 1993 .......... ............... .............. X X X X X X 10. 1994 .......... ............... .............. X X X X X X 11. 1995 .......... X X X .............. X X X X X X - ------------------------------------------------------------------------------------
105 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 10 YEAR BREAKOUT FOR SCHEDULE P - PART 3I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, GLASS, BURGLARY, AND THEFT) (For inhouse use only - Do not submit to NAIC)
============================================================================================================================ (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 ..... 4,449 ..... 4,449 ..... 4,449 ..... 4,449 ..... 4,449 ..... 4,449 ..... 4,449 2. 1986 ......... ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067 3. 1987 ......... X X X ..... 1,153 ..... 1,153 ..... 1,153 ..... 1,153 ..... 1,153 ..... 1,153 ..... 1,153 4. 1988 ......... X X X X X X ..... 1,249 ..... 1,249 ..... 1,249 ..... 1,249 ..... 1,249 ..... 1,247 5. 1989 ......... X X X X X X X X X ..... 1,180 ..... 1,181 ..... 1,182 ..... 1,182 ..... 1,182 6. 1990 ......... X X X X X X X X X X X X ..... 1,110 ..... 1,131 ..... 1,131 ..... 1,132 7. 1991 ......... X X X X X X X X X X X X X X X ....... 862 ..... 1,089 ..... 1,080 8. 1992 ......... X X X X X X X X X X X X X X X X X X ..... 1,286 ..... 1,733 9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X ....... 639 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) -------------------------- Number of Number of Years in Which (10) (11) Claims Closed Claims Closed Losses Were With Loss Without Loss Incurred 1994 1995 Payment Payment - ------------------------------------------------------------------------------- 1. Prior ........ ..... 4,449 ..... 4,449 X X X X X X 2. 1986 ......... ..... 1,067 ..... 1,067 X X X X X X 3. 1987 ......... ..... 1,153 ..... 1,153 X X X X X X 4. 1988 ......... ..... 1,247 ..... 1,249 X X X X X X 5. 1989 ......... ..... 1,183 ..... 1,183 X X X X X X 6. 1990 ......... ..... 1,134 ..... 1,134 X X X X X X 7. 1991 ......... ..... 1,080 ..... 1,080 X X X X X X 8. 1992 ......... ..... 1,732 ..... 1,735 X X X X X X 9. 1993 ......... ....... 723 ....... 723 X X X X X X 10. 1994 ......... ....... 747 ....... 989 X X X X X X 11. 1995 ......... X X X ....... 666 X X X X X X - -------------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE ============================================================================================================================= 1. Prior ........ 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ......... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ......... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ......... X X X X X X ........... ........... ........... ........... ........... ........... 5. 1989 ......... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ......... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ......... X X X X X X X X X X X X X X X ........... ........... ........... 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 X X X ........ 5 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. Prior ........ ........... ........... ........... ........... 2. 1986 ......... ........... ........... ........... ........... 3. 1987 ......... ........... ........... ........... ........... 4. 1988 ......... ........... ........... ........... ........... 5. 1989 ......... ........... ........... ........... ........... 6. 1990 ......... ........... ........... ........... ........... 7. 1991 ......... ........... ........... ........... ........... 8. 1992 ......... ........... ........... ........... ........... 9. 1993 ......... ....... 13 ....... 13 ....... 14 ........ 5 10. 1994 ......... ...... 229 ...... 378 ...... 375 ...... 168 11. 1995 ......... X X X ...... 546 ...... 471 ...... 192 - ------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 3K - FIDELITY / SURETY ============================================================================================================================= 1. Prior ........ 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ......... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ......... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ......... X X X X X X ........... ........... ........... ........... ........... ........... 5. 1989 ......... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ......... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ......... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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. Prior ........ ........... ........... X X X X X X 2. 1986 ......... ........... ........... X X X X X X 3. 1987 ......... ........... ........... X X X X X X 4. 1988 ......... ........... ........... X X X X X X 5. 1989 ......... ........... ........... X X X X X X 6. 1990 ......... ........... ........... X X X X X X 7. 1991 ......... ........... ........... X X X X X X 8. 1992 ......... ........... ........... X X X X X X 9. 1993 ......... ........... ........... X X X X X X 10. 1994 ......... ........... ........... X X X X X X 11. 1995 ......... X X X ........... X X X X X X - ------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) ============================================================================================================================= 1. Prior ........ 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ......... ..... 8,327 ..... 8,445 ..... 8,528 ..... 8,528 ..... 8,528 ..... 8,572 ..... 8,572 ..... 8,572 3. 1987 ......... X X X .... 10,252 .... 10,447 .... 10,670 .... 10,627 .... 10,636 .... 10,651 .... 10,651 4. 1988 ......... X X X X X X .... 13,555 .... 14,496 .... 14,741 .... 14,684 .... 14,696 .... 14,696 5. 1989 ......... X X X X X X X X X .... 19,272 .... 21,164 .... 21,404 .... 21,409 .... 21,409 6. 1990 ......... X X X X X X X X X X X X .... 12,692 .... 21,273 .... 21,470 .... 21,474 7. 1991 ......... X X X X X X X X X X X X X X X .... 11,099 .... 20,072 .... 20,453 8. 1992 ......... X X X X X X X X X X X X X X X X X X .... 16,048 .... 32,534 9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X .... 27,616 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. Prior ........ ........... ........... X X X X X X 2. 1986 ......... ..... 8,572 ..... 8,572 X X X X X X 3. 1987 ......... .... 10,651 .... 10,651 X X X X X X 4. 1988 ......... .... 14,697 .... 14,697 X X X X X X 5. 1989 ......... .... 21,408 .... 21,408 X X X X X X 6. 1990 ......... .... 21,475 .... 21,474 X X X X X X 7. 1991 ......... .... 20,464 .... 20,464 X X X X X X 8. 1992 ......... .... 32,940 .... 32,948 X X X X X X 9. 1993 ......... .... 46,475 .... 46,866 X X X X X X 10. 1994 ......... .... 29,654 .... 48,500 X X X X X X 11. 1995 ......... X X X .... 35,294 X X X X X X - ------------------------------------------------------------------------
SCHEDULE P - PART 3M - INTERNATIONAL ============================================================================================================================= 1. Prior ........ 0 0 0 ........... ........... ........... ........... ........... ........... ........... 2. 1986 ......... ........... ........... ........... ........... ........... ........... ........... ........... 3. 1987 ......... X X X ........... ........... ........... ........... ........... ........... ........... 4. 1988 ......... X X X X X X ........... ........... ........... ........... ........... ........... 5. 1989 ......... X X X X X X X X X ........... ........... ........... ........... ........... 6. 1990 ......... X X X X X X X X X X X X ........... ........... ........... ........... 7. 1991 ......... X X X X X X X X X X X X X X X ........... ........... ........... 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 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 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. Prior ........ ........... ........... X X X X X X 2. 1986 ......... ........... ........... X X X X X X 3. 1987 ......... ........... ........... X X X X X X 4. 1988 ......... ........... ........... X X X X X X 5. 1989 ......... ........... ........... X X X X X X 6. 1990 ......... ........... ........... X X X X X X 7. 1991 ......... ........... ........... X X X X X X 8. 1992 ......... ........... ........... X X X X X X 9. 1993 ......... ........... ........... X X X X X X 10. 1994 ......... ........... ........... X X X X X X 11. 1995 ......... X X X ........... X X X X X X - ------------------------------------------------------------------------
105B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (9) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 - ------------------------------------------------------------------------------------------------------------------------------------ 1. 1988 .......... X X X X X X ........ 142 ......... 419 ......... 622 ......... 627 ......... 637 ......... 638 2. 1989 .......... X X X X X X X X X ......... 191 ......... 930 ....... 1,187 ....... 1,274 ....... 1,370 3. 1990 .......... X X X X X X X X X X X X ......... 186 ......... 790 ......... 821 ......... 872 4. 1991 .......... X X X X X X X X X X X X X X X .......... 75 ....... 1,234 ....... 1,333 5. 1992 .......... X X X X X X X X X X X X X X X X X X ....... 1,290 ....... 2,545 6. 1993 .......... X X X X X X X X X X X X X X X X X X X X X ......... 873 7. 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 8. 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) Number of Number of Years in Which (10) (11) Claims Closed Claims Closed Losses Were With Loss Without Loss Incurred 1994 1995 Payment Payment - ---------------------------------------------------------------------------------- 1. 1988 .......... ......... 639 ......... 642 X X X X X X 2. 1989 .......... ....... 1,534 ....... 1,539 X X X X X X 3. 1990 .......... ......... 874 ......... 880 X X X X X X 4. 1991 .......... ....... 1,425 ....... 1,474 X X X X X X 5. 1992 .......... ....... 2,898 ....... 3,286 X X X X X X 6. 1993 .......... ....... 2,694 ....... 3,430 X X X X X X 7. 1994 .......... ....... 2,029 ....... 4,873 X X X X X X 8. 1995 .......... X X X ....... 1,564 X X X X X X - ----------------------------------------------------------------------------------
SCHEDULE P - PART 3O - REINSURANCE B ==================================================================================================================================== 1. 1988 .......... X X X X X X ........... ......... 621 ..... 1,088 ...... 2,554 ...... 2,883 ...... 2,882 2. 1989 .......... X X X X X X X X X ............. ....... 159 ........ 315 ...... 2,210 ...... 2,551 3. 1990 .......... X X X X X X X X X X X X ........... ........ 520 ........ 889 ...... 2,475 4. 1991 .......... X X X X X X X X X X X X X X X ............ ........ 291 ........ 578 5. 1992 .......... X X X X X X X X X X X X X X X X X X ......... 48 ........ 415 6. 1993 .......... X X X X X X X X X X X X X X X X X X X X X ......... 99 7. 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 8. 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. 1988 .......... ....... 3,315 ....... 3,780 X X X X X X 2. 1989 .......... ....... 2,574 ....... 2,858 X X X X X X 3. 1990 .......... ....... 2,883 ....... 3,591 X X X X X X 4. 1991 .......... ....... 1,340 ....... 3,381 X X X X X X 5. 1992 .......... ....... 1,326 ....... 2,340 X X X X X X 6. 1993 .......... ......... 822 ....... 1,935 X X X X X X 7. 1994 .......... .......... 25 ....... 1,290 X X X X X X 8. 1995 .......... X X X ......... 374 X X X X X X - ----------------------------------------------------------------------------------
SCHEDULE P - PART 3P - REINSURANCE C ==================================================================================================================================== 1. 1988 .......... X X X X X X ............ ............. ............. ............. ............. ............. 2. 1989 .......... X X X X X X X X X ............. ............. ............. ............. ............. 3. 1990 .......... X X X X X X X X X X X X ............. NONE ............. ............. 4. 1991 .......... X X X X X X X X X X X X X X X ............. ............. ............. 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 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 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 X X X - ------------------------------------------------------------------------------------------------------------------------------------ ================================================================================== 1. 1988 .......... ............. ............. X X X X X X 2. 1989 .......... ............. ............. X X X X X X 3. 1990 .......... ............. ............. X X X X X X 4. 1991 .......... ............. ............. X X X X X X 5. 1992 .......... ............. ............. X X X X X X 6. 1993 .......... ............. ............. X X X X X X 7. 1994 .......... ............. ............. X X X X X X 8. 1995 .......... X X X ............. X X X X X X - ----------------------------------------------------------------------------------
SCHEDULE P - PART 3Q - REINSURANCE D ==================================================================================================================================== 1. Prior ......... 0 0 0 ............ ............. ............. ............. ............. ............. ............. 2. 1986 .......... ........... ............ ............. ............. ............. ............. ............. ............. 3. 1987 .......... X X X ......... 32 ......... 271 ......... 304 ......... 583 ......... 613 ......... 613 ......... 612 - ------------------------------------------------------------------------------------------------------------------------------------ ================================================================================== 1. Prior ......... ............ ............. X X X X X X 2. 1986 .......... ............ ............. X X X X X X 3. 1987 .......... ........ 612 ......... 612 X X X X X X - ----------------------------------------------------------------------------------
106 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (9) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior .......... 0 0 0 ............. ............ ............ ............. ............ ............. ............. 2. 1986 ........... .......... ............. ............ ............ ............. ............ ............. ............. 3. 1987 ........... X X X ............. ............ ............ ............. ............ ............. ............. 4. 1988 ........... X X X X X X ............ ............ ............. ............ ............. ............. 5. 1989 ........... X X X X X X X X X ............ ............. NONE ............. ............. 6. 1990 ........... X X X X X X X X X X X X ............. ............ ............. ............. 7. 1991 ........... X X X X X X X X X X X X X X X ............ ............. ............. 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 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 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) Number of Number of Years in Which (10) (11) Claims Closed Claims Closed Losses Were With Loss Without Loss Incurred 1994 1995 Payment Payment - ---------------------------------------------------------------------------------- 1. Prior .......... ............. ............. ............. .............. 2. 1986 ........... ............. ............. ............. .............. 3. 1987 ........... ............. ............. ............. .............. 4. 1988 ........... ............. ............. ............. .............. 5. 1989 ........... ............. ............. ............. .............. 6. 1990 ........... ............. ............. ............. .............. 7. 1991 ........... ............. ............. ............. .............. 8. 1992 ........... ............. ............. ............. .............. 9. 1993 ........... ............. ............. ............. .............. 10. 1994 ........... ............. ............. ............. .............. 11. 1995 ........... X X X ............. ............. .............. - ----------------------------------------------------------------------------------
SCHEDULE P - PART 3R - SECTION 2 PRODUCTS LIABILITY - CLAIMS-MADE ==================================================================================================================================== 1. Prior .......... 0 0 0 ............. ............ ............ ............. ............ ............. ............. 2. 1986 ........... .......... ............. ............ ............ ............. ............ ............. ............. 3. 1987 ........... X X X ............. ............ ............ ............. ............ ............. ............. 4. 1988 ........... X X X X X X ............ ............ ............. ............. ............. 5. 1989 ........... X X X X X X X X X ............ ............. NONE ............. ............. 6. 1990 ........... X X X X X X X X X X X X ............. ............ ............. ............. 7. 1991 ........... X X X X X X X X X X X X X X X ............ ............. ............. 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 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 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. Prior .......... ............. ............. ............. .............. 2. 1986 ........... ............. ............. ............. .............. 3. 1987 ........... ............. ............. ............. .............. 4. 1988 ........... ............. ............. ............. .............. 5. 1989 ........... ............. ............. ............. .............. 6. 1990 ........... ............. ............. ............. .............. 7. 1991 ........... ............. ............. ............. .............. 8. 1992 ........... ............. ............. ............. .............. 9. 1993 ........... ............. ............. ............. .............. 10. 1994 ........... ............. ............. ............. .............. 11. 1995 ........... X X X ............. ............. .............. - ----------------------------------------------------------------------------------
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 NONE X X X 0 0 0 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 X X X - ------------------------------------------------------------------------------------------------------------------------------------ ================================================================================== 1. Prior ......... ............. ............. X X X X X X 2. 1994 .......... ............. ............. X X X X X X 3. 1995 .......... X X X ............. X X X X X X - ----------------------------------------------------------------------------------
107 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 3R - SECTION 1 PRODUCTS LIABILITY - OCCURRENCE (For inhouse use only - Do not submit to NAIC)
======================================================================================================================= (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 ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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 ........ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ 3. 1987 ......... ............ ............ ............ ............ ............ 4. 1988 ......... ............ ............ ............ ............ ............ 5. 1989 ......... ............ ............ ............ ............ ............ 6. 1990 ......... ............ ............ ............ ............ ............ 7. 1991 ......... ............ ............ ............ ............ ............ 8. 1992 ......... ............ ............ ............ ............ ............ 9. 1993 ......... ............ ............ ............ ............ ............ 10. 1994 ......... X X X ............ ............ ............ ............ 11. 1995 ......... X X X X X X ............ ............ ............ - ------------------------------------------------------------------------------------------------
SCHEDULE P - PART 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE ======================================================================================================================= 1. Prior ........ 0 0 0 ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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. 1986 ......... ............ ............ ............ ............ ............ 3. 1987 ......... ............ ............ ............ ............ ............ 4. 1988 ......... ............ ............ ............ ............ ............ 5. 1989 ......... ............ ............ ............ ............ ............ 6. 1990 ......... ............ ............ ............ ............ ............ 7. 1991 ......... ............ ............ ............ ............ ............ 8. 1992 ......... ............ ............ ............ ............ ............ 9. 1993 ......... ............ ............ ............ ............ ............ 10. 1994 ......... X X X ............ ............ ............ ............ 11. 1995 ......... X X X X X X ............ ............ ............ - ----------------------------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 3S - FINANCIAL GUARANTY / MORTGAGE GUARANTY ======================================================================================================================= 1. Prior ........ 0 0 0 ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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 ........ ............ ............ ............ X X X X X X 2. 1986 ......... ............ ............ ............ X X X X X X 3. 1987 ......... ............ ............ ............ X X X X X X 4. 1988 ......... ............ ............ ............ X X X X X X 5. 1989 ......... ............ ............ ............ X X X X X X 6. 1990 ......... ............ ............ ............ X X X X X X 7. 1991 ......... ............ ............ ............ X X X X X X 8. 1992 ......... ............ ............ ............ X X X X X X 9. 1993 ......... ............ ............ ............ X X X X X X 10. 1994 ......... X X X ............ ............ X X X X X X 11. 1995 ......... X X X X X X ............ X X X X X X - ------------------------------------------------------------------------------------------
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
======================================================================================================================= (1) BULK AND INCURRED BUT REPORTED RESERVES ON 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 ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X .......... 3 .......... 5 11. 1995 ......... X X X X X X ......... 43 - -----------------------------------------------------------------
SCHEDULE P - PART 4B PRIVATE PASSENGER AUTO LIABILITY/MEDICAL - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ NONE ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X ............ ............ 11. 1995 ......... X X X X X X ............ - -----------------------------------------------------------------
SCHEDULE P - PART 4C COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X ............ ............ 11. 1995 ......... X X X X X X ......... 27 - -----------------------------------------------------------------
SCHEDULE P - PART 4D - WORKERS' COMPENSATION - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X ............ ............ 11. 1995 ......... X X X X X X .......... 1 - -----------------------------------------------------------------
SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ........ 155 ........ 605 ........ 138 ........ 236 ........ 121 ........ 283 ......... 11 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 8. 1992 ......... X X X X X X X X X X X X X X X X X X ......... 10 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 ........ .......... 8 .......... 8 .......... 8 2. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ......... 31 ............ ............ 9. 1993 ......... ........ 124 ......... 78 ............ 10. 1994 ......... X X X ........ 183 ........ 156 11. 1995 ......... X X X X X X ........ 471 - -----------------------------------------------------------------
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ........ ........ ........ ........ ........ ........ ........ ........ 2. 1986 ........ ........ ........ ........ ........ ........ ........ ........ 3. 1987 ........ X X X ........ ........ ........ ........ ........ ........ 4. 1988 ........ X X X X X X ........ ........ N O N E ........ ........ 5. 1989 ........ X X X X X X X X X ........ ........ ........ ........ 6. 1990 ........ X X X X X X X X X X X X ........ ........ ........ 7. 1991 ........ X X X X X X X X X X X X X X X ........ ........ 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 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) ---------------------------------------- Years in Which (9) (10) (11) Losses Were Incurred 1993 1994 1995 - ----------------------------------------------------------- 1. Prior ........ ........ ........ ........ 2. 1986 ........ ........ ........ ........ 3. 1987 ........ ........ ........ ........ 4. 1988 ........ ........ ........ ........ 5. 1989 ........ ........ ........ ........ 6. 1990 ........ ........ ........ ........ 7. 1991 ........ ........ ........ ........ 8. 1992 ........ ........ ........ ........ 9. 1993 ........ ........ ........ ........ 10. 1994 ........ X X X ........ ........ 11. 1995 ........ X X X X X X ........ - ----------------------------------------------------------
SCHEDULE P - PART 4F - SECTION 2 MEDICAL MALPRACTICE - CLAIMS-MADE ==================================================================================================================================== 1. Prior ........ ........ ........ ........ ........ ........ ........ ........ 2. 1986 ........ ........ ........ ........ ........ ........ ........ ........ 3. 1987 ........ X X X ........ ........ ........ ........ ........ ........ 4. 1988 ........ X X X X X X ........ ........ N O N E ........ ........ 5. 1989 ........ X X X X X X X X X ........ ........ ........ ........ 6. 1990 ........ X X X X X X X X X X X X ........ ........ ........ 7. 1991 ........ X X X X X X X X X X X X X X X ........ ........ 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 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. 1986 ........ ........ ........ ........ 3. 1987 ........ ........ ........ ........ 4. 1988 ........ ........ ........ ........ 5. 1989 ........ ........ ........ ........ 6. 1990 ........ ........ ........ ........ 7. 1991 ........ ........ ........ ........ 8. 1992 ........ ........ ........ ........ 9. 1993 ........ ........ ........ ........ 10. 1994 ........ X X X ........ ........ 11. 1995 ........ X X X X X X ........ - ----------------------------------------------------------
SCHEDULE P - PART 4G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) ==================================================================================================================================== 1. Prior ........ ........ ........ ........ ........ ........ ........ ........ 2. 1986 ........ ........ ........ ........ ........ ........ ........ ........ 3. 1987 ........ X X X ........ ........ ........ ........ ........ ........ 4. 1988 ........ X X X X X X ........ ........ N O N E ........ ........ 5. 1989 ........ X X X X X X X X X ........ ........ ........ ........ 6. 1990 ........ X X X X X X X X X X X X ........ ........ ........ 7. 1991 ........ X X X X X X X X X X X X X X X ........ ........ 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 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. 1986 ........ ........ ........ ........ 3. 1987 ........ ........ ........ ........ 4. 1988 ........ ........ ........ ........ 5. 1989 ........ ........ ........ ........ 6. 1990 ........ ........ ........ ........ 7. 1991 ........ ........ ........ ........ 8. 1992 ........ ........ ........ ........ 9. 1993 ........ ........ ........ ........ 10. 1994 ........ X X X ........ ........ 11. 1995 ........ X X X X X X ........ - --------------------------------------------------------------
SCHEDULE P - PART 4H - SECTION 1 OTHER LIABILITY - OCCURRENCE ======================================================================================================================== 1. Prior ........ .....516 .....949 .....952 .....662 .....667 .....458 .....20 2. 1986 ........ ........ ........ ........ ........ ........ ........ ........ 3. 1987 ........ X X X ........ ........ ........ ........ ........ ........ 4. 1988 ........ X X X X X X ........ ........ ........ ........ ........ 5. 1989 ........ X X X X X X X X X ........ ........ ........ ........ 6. 1990 ........ X X X X X X X X X X X X ........ ........ ........ 7. 1991 ........ X X X X X X X X X X X X X X X ........ ........ 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 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 ........ ......15 ......15 .......8 2. 1986 ........ ........ ........ ........ 3. 1987 ........ ........ ........ ........ 4. 1988 ........ ........ ........ ........ 5. 1989 ........ ........ ........ ........ 6. 1990 ........ ........ ........ ........ 7. 1991 ........ ........ ........ ........ 8. 1992 ........ ........ ........ ........ 9. 1993 ........ ........ ........ ........ 10. 1994 ........ X X X ........ ........ 11. 1995 ........ X X X X X X .....257 - --------------------------------------------------------------
SCHEDULE P - PART 4H - SECTION 2 OTHER LIABILITY - CLAIMS-MADE ==================================================================================================================================== 1. Prior ........ ........ ........ ........ ........ ........ ........ ........ 2. 1986 ........ ........ ........ ........ ........ ........ ........ ........ 3. 1987 ........ X X X ........ ........ ........ ........ ........ ........ 4. 1988 ........ X X X X X X ........ ........ N O N E ........ ........ 5. 1989 ........ X X X X X X X X X ........ ........ ........ ........ 6. 1990 ........ X X X X X X X X X X X X ........ ........ ........ 7. 1991 ........ X X X X X X X X X X X X X X X ........ ........ 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 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. 1986 ........ ........ ........ ........ 3. 1987 ........ ........ ........ ........ 4. 1988 ........ ........ ........ ........ 5. 1989 ........ ........ ........ ........ 6. 1990 ........ ........ ........ ........ 7. 1991 ........ ........ ........ ........ 8. 1992 ........ ........ ........ ........ 9. 1993 ........ ........ ........ ........ 10. 1994 ........ X X X ........ ........ 11. 1995 ........ X X X X X X ........ - -------------------------------------------------------------
109 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) (9) (10) (11) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ........ X X X X X X X X X X X X X X X X X X X X X ........81 ........36 .......... 2. 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 .......155 ........28 3. 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 X X X .......190 - -----------------------------------------------------------------------------------------------------------------------------------
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 X X X .........2 .......... .......... 2. 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 ........21 .......... 3. 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 X X X ........47 - -----------------------------------------------------------------------------------------------------------------------------------
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 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 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 X X X X X X .........3 - -----------------------------------------------------------------------------------------------------------------------------------
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 X X X .....10.342 .......150 .......... 2. 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 .....9,365 .......101 3. 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 X X X .....9,247 - -----------------------------------------------------------------------------------------------------------------------------------
SCHEDULE P - PART 4M - INTERNATIONAL ==================================================================================================================================== 1. Prior ........ ........ ........ ........ ........ ........ ........ ........ 2. 1986 ........ ........ ........ ........ ........ ........ ........ ........ 3. 1987 ........ X X X ........ ........ ........ ........ ........ ........ 4. 1988 ........ X X X X X X ........ ........ N O N E ........ ........ 5. 1989 ........ X X X X X X X X X ........ ....... ........ ........ 6. 1990 ........ X X X X X X X X X X X X ........ ........ ........ 7. 1991 ........ X X X X X X X X X X X X X X X ........ ........ 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 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. 1986 ........ ........ ........ ........ 3. 1987 ........ ........ ........ ........ 4. 1988 ........ ........ ........ ........ 5. 1989 ........ ........ ........ ........ 6. 1990 ........ ........ ........ ........ 7. 1991 ........ ........ ........ ........ 8. 1992 ........ ........ ........ ........ 9. 1993 ........ ........ ........ ........ 10. 1994 ........ X X X ........ ........ 11. 1995 ........ X X X X X X ........ - ---------------------------------------------------------------
110 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 10 YEAR BREAKOUT FOR SCHEDULE P - PART 4I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, GLASS, BURGLARY AND THEFT) (For inhouse use only - Do not submit to NAIC)
=================================================================================================================================== (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) (8) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............. ............. ............. ............. ............. ............. ............. 2. 1986 ......... .......... 61 ............. ............. ............. ............. ............. ............. 3. 1987 ......... X X X .......... 62 ............. ............. ............. ............. ............. 4. 1988 ......... X X X X X X .......... 66 ............. ............. ............. ............. 5. 1989 ......... X X X X X X X X X .......... 82 .......... 17 ............. ............. 6. 1990 ......... X X X X X X X X X X X X ......... 104 ........... 8 ............. 7. 1991 ......... X X X X X X X X X X X X X X X .......... 35 .......... 10 8. 1992 ......... X X X X X X X X X X X X X X X X X X ......... 311 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) (9) (10) (11) Years in Which 1993 1994 1995 Losses Were Incurred - ------------------------------------------------------------------------ 1. Prior ........ ............. ............. ............. 2. 1986 ......... ............. ............. ............. 3. 1987 ......... ............. ............. ............. 4. 1988 ......... ............. ............. ............. 5. 1989 ......... ............. ............. ............. 6. 1990 ......... ............. ............. ............. 7. 1991 ......... ............. ............. ............. 8. 1992 ......... .......... 15 ............. ............. 9. 1993 ......... .......... 66 .......... 36 ............. 10. 1994 ......... X X X ......... 135 .......... 28 11. 1995 ......... X X X X X X ......... 190 - ------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE =============================================================================================================================== 1. Prior ........ ............. ............. ............. ............. ............. ............. ............. 2. 1986 ......... ............. ............. ............. ............. ............. ............. ............. 3. 1987 ......... X X X ............. ............. ............. ............. ............. ............. 4. 1988 ......... X X X X X X ............. ............. ............. ............. ............. 5. 1989 ......... X X X X X X X X X ............. ............. ............. ............. 6. 1990 ......... X X X X X X X X X X X X ............. ............. ............. 7. 1991 ......... X X X X X X X X X X X X X X X ............. ............. 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 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. 1986 ......... ............. ............. ............. 3. 1987 ......... ............. ............. ............. 4. 1988 ......... ............. ............. ............. 5. 1989 ......... ............. ............. ............. 6. 1990 ......... ............. ............. ............. 7. 1991 ......... ............. ............. ............. 8. 1992 ......... ............. ............. ............. 9. 1993 ......... ........... 2 ............. ............. 10. 1994 ......... X X X .......... 21 ............. 11. 1995 ......... X X X X X X .......... 47 - ----------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 4K - FIDELITY / SURETY =============================================================================================================================== 1. Prior ........ ............. ............. ............. ............. ............. ............. ............. 2. 1986 ......... ............. ............. ............. ............. ............. ............. ............. 3. 1987 ......... X X X ............. ............. ............. ............. ............. ............. 4. 1988 ......... X X X X X X ............. ............. ............. ............. ............. 5. 1989 ......... X X X X X X X X X ............. ............. ............. ............. 6. 1990 ......... X X X X X X X X X X X X ............. ............. ............. 7. 1991 ......... X X X X X X X X X X X X X X X ............. ............. 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 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. 1986 ......... ............. ............. ............. 3. 1987 ......... ............. ............. ............. 4. 1988 ......... ............. ............. ............. 5. 1989 ......... ............. ............. ............. 6. 1990 ......... ............. ............. ............. 7. 1991 ......... ............. ............. ............. 8. 1992 ......... ............. ............. ............. 9. 1993 ......... ............. ............. ............. 10. 1994 ......... X X X ............. ............. 11. 1995 ......... X X X X X X ........... 3 - ----------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) =============================================================================================================================== 1. Prior ........ ............. ............. ............. ............. ............. ............. ............. 2. 1986 ......... ....... 1,820 ......... 189 ............. ............. ............. ............. ............. 3. 1987 ......... X X X ....... 5,018 ......... 194 ............. ............. ............. ............. 4. 1988 ......... X X X X X X ....... 8,546 ............. .......... 21 ............. ............. 5. 1989 ......... X X X X X X X X X ....... 4,558 ......... 201 ............. ............. 6. 1990 ......... X X X X X X X X X X X X ....... 4,965 ........... 4 ............. 7. 1991 ......... X X X X X X X X X X X X X X X ......... 196 .......... 50 8. 1992 ......... X X X X X X X X X X X X X X X X X X ....... 7,172 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. 1986 ......... ............. ............. ............. 3. 1987 ......... ............. ............. ............. 4. 1988 ......... ............. ............. ............. 5. 1989 ......... ............. ............. ............. 6. 1990 ......... ............. ............. ............. 7. 1991 ......... ........... 1 ............. ............. 8. 1992 ......... ........... 8 ........... 1 ............. 9. 1993 ......... ...... 10,333 ......... 149 ............. 10. 1994 ......... X X X ....... 9,365 ......... 101 11. 1995 ......... X X X X X X ....... 9,247 - ----------------------------------------------------------------------
SCHEDULE P - PART 4M - INTERNATIONAL =============================================================================================================================== 1. Prior ........ ............. ............. ............. ............. ............. ............. ............. 2. 1986 ......... ............. ............. ............. ............. ............. ............. ............. 3. 1987 ......... X X X ............. ............. ............. ............. ............. ............. 4. 1988 ......... X X X X X X ............. ............. ............. ............. ............. 5. 1989 ......... X X X X X X X X X ............. ............. ............. ............. 6. 1990 ......... X X X X X X X X X X X X ............. ............. ............. 7. 1991 ......... X X X X X X X X X X X X X X X ............. ............. 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 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. 1986 ......... ............. ............. ............. 3. 1987 ......... ............. ............. ............. 4. 1988 ......... ............. ............. ............. 5. 1989 ......... ............. ............. ............. 6. 1990 ......... ............. ............. ............. 7. 1991 ......... ............. ............. ............. 8. 1992 ......... ............. ............. ............. 9. 1993 ......... ............. ............. ............. 10. 1994 ......... X X X ............. ............. 11. 1995 ......... X X X X X X ............. - ----------------------------------------------------------------------
110B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) Losses Were Incurred 1986 1987 1988 1989 1990 1991 1992 - ------------------------------------------------------------------------------------------------------------------------------------ 1. 1988 ........ X X X X X X ........ 543 ........ 271 ........ 311 ......... 83 ......... 68 2. 1989 ......... X X X X X X X X X ........ 967 ........ 438 ........ 211 ......... 58 3. 1990 ......... X X X X X X X X X X X X ........ 965 ........ 618 ........ 223 4. 1991 ......... X X X X X X X X X X X X X X X ........ 689 ........ 331 5. 1992 ......... X X X X X X X X X X X X X X X X X X ........ 524 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) (9) (10) (11) Years in Which Losses Were Incurred 1990 1991 1992 - -------------------------------------------------------------------- 1. 1988 ........ ......... 15 ......... 12 ............ 2. 1989 ......... ......... 57 .......... 1 ............ 3. 1990 ......... ........ 154 ......... 55 ............ 4. 1991 ......... ........ 217 ........ 108 ......... 58 5. 1992 ......... ........ 357 ........ 340 ........ 248 6. 1993 ......... ...... 1,339 ........ 811 ........ 703 7. 1994 ......... X X X ........ 992 ........ 856 8. 1995 ......... X X X X X X ...... 3,880 - --------------------------------------------------------------------
SCHEDULE P - PART 4O - REINSURANCE B ==================================================================================================================================== 1. 1988 ........ X X X X X X ...... 3,879 ...... 2,881 ...... 2,408 ...... 1,126 ........ 637 2. 1989 ......... X X X X X X X X X ...... 7,387 ...... 7,223 ...... 6,330 ...... 4,689 3. 1990 ......... X X X X X X X X X X X X ...... 7,348 ...... 6,336 ...... 5,060 4. 1991 ......... X X X X X X X X X X X X X X X ...... 5,205 ...... 4,548 5. 1992 ......... X X X X X X X X X X X X X X X X X X ...... 4,625 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 ........ ........ 830 ........ 578 ........ 303 2. 1989 ......... ...... 3,853 ...... 2,258 ...... 1,707 3. 1990 ......... ...... 3,842 ...... 3,280 ...... 2,732 4. 1991 ......... ...... 4,124 ...... 4,074 ...... 3,056 5. 1992 ......... ...... 3,668 ...... 2,664 ...... 2,003 6. 1993 ......... ...... 3,948 ...... 2,969 ...... 2,136 7. 1994 ......... X X X ...... 5,102 ...... 4,229 8. 1995 ......... X X X X X X ...... 9,461 - --------------------------------------------------------------------
SCHEDULE P - PART 4P - REINSURANCE C ==================================================================================================================================== 1. 1988 ........ X X X X X X ............. ............. ............. ............. ............. 2. 1989 ......... X X X X X X X X X ............. ............. ............. 3. 1990 ......... X X X X X X X X X X X X NONE ............. ............. 4. 1991 ......... X X X X X X X X X X X X X X X ............. ............. 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 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 ........ ............. ............. ............. 2. 1989 ......... ............. ............. ............. 3. 1990 ......... ............. ............. ............. 4. 1991 ......... ............. ............. ............. 5. 1992 ......... ............. ............. ............. 6. 1993 ......... ............. ............. ............. 7. 1994 ......... X X X ............. ............. 8. 1995 ......... X X X X X X ............. - --------------------------------------------------------------------
SCHEDULE P - PART 4Q - REINSURANCE D =============================================================================================================================== 1. Prior ........ ............. ............. ............. ............. ............. ............. ............. 2. 1986 ......... ............. ............. ............. ............. ............. ............. ............. 3. 1987 ......... X X X ........ 373 ........ 460 ........ 292 ........ 165 ..........50 ......... 53 - -------------------------------------------------------------------------------------------------------------------------------- ================================================================= 1. Prior ........ ............. ............. ............. 2. 1986 ......... ............. ............. ............. 3. 1987 ......... ......... 51 ......... 51 ......... 51 - -----------------------------------------------------------------
111 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ......... ......... ......... ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... ......... ......... ......... 3. 1987 ......... X X X ......... ......... ......... ......... ......... 4. 1988 ......... X X X X X X ......... ......... ......... ......... 5. 1989 ......... X X X X X X X X X ......... ......... ......... 6. 1990 ......... X X X X X X X X X X X X ......... ......... 7. 1991 ......... X X X X X X X X X X X X X X X ......... 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 ......... ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... ......... 9. 1993 ......... X X X ......... ......... ......... 10. 1994 ......... X X X X X X ......... ......... 11. 1995 ......... X X X X X X X X X ......... - ------------------------------------------------------------------------------------
SCHEDULE P - PART 4R - SECTION 2 PRODUCTS LIABILITY - CLAIMS-MADE ===================================================================================================================== 1. Prior ......... ......... ......... ... 2. 1986 ......... ......... ......... ... 3. 1987 ......... X X X ......... ... 4. 1988 ......... X X X X X X ... N O N E 5. 1989 ......... X X X X X X 6. 1990 ......... X X X X X X 7. 1991 ......... X X X X X X 8. 1992 ......... 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 ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... X X X ......... ......... ......... 10. 1994 ......... X X X X X X ......... ......... 11. 1995 ......... X X X X X X X X X ......... - ------------------------------------------------------------------------------------
SCHEDULE P - PART 4S - FINANCIAL GUARANTY / MORTGAGE GUARANTY ==================================================================================================================================== 1. Prior ......... X X X X X X X X X X X X N O N E 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 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 X X X X X X ......... - ------------------------------------------------------------------------------------------------------------------------------------
112 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE (For inhouse use only - Do not submit to NAIC)
================================================================================================================================= (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. 1986 ......... ......... ......... ......... ......... ......... ......... 3. 1987 ......... X X X ......... ......... ......... ......... ......... 4. 1988 ......... X X X X X X ......... ......... ......... ......... 5. 1989 ......... X X X X X X X X X ......... ......... ......... 6. 1990 ......... X X X X X X X X X X X X ......... ......... 7. 1991 ......... X X X X X X X X X X X X X X X ......... 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 ......... ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... ......... 9. 1993 ......... X X X ......... ......... ......... 10. 1994 ......... X X X X X X ......... ......... 11. 1995 ......... X X X X X X X X X ......... - ------------------------------------------------------------------------------------
SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE ================================================================================================================================= 1. Prior ......... ......... ......... ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... ......... ......... ......... 3. 1987 ......... X X X ......... ......... ......... ......... ......... 4. 1988 ......... X X X X X X ......... ......... ......... ......... 5. 1989 ......... X X X X X X X X X ......... ......... ......... 6. 1990 ......... X X X X X X X X X X X X ......... ......... 7. 1991 ......... X X X X X X X X X X X X X X X ......... 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. 1986 ......... ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... ......... 9. 1993 ......... X X X ......... ......... ......... 10. 1994 ......... X X X X X X ......... ......... 11. 1995 ......... X X X X X X X X X ......... - ------------------------------------------------------------------------------------
10 YEAR BREAKOUT FOR SCHEDULE P - PART 4S - FINANCIAL GUARANTY / MORTGAGE GUARANTY ================================================================================================================================= 1. Prior ......... ......... ......... ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... ......... ......... ......... 3. 1987 ......... X X X ......... ......... ......... ......... ......... 4. 1988 ......... X X X X X X ......... ......... ......... ......... 5. 1989 ......... X X X X X X X X X ......... ......... ......... 6. 1990 ......... X X X X X X X X X X X X ......... ......... 7. 1991 ......... X X X X X X X X X X X X X X X ......... 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. 1986 ......... ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... ......... 9. 1993 ......... X X X ......... ......... ......... 10. 1994 ......... X X X X X X ......... ......... 11. 1995 ......... X X X X X X X X X ......... - ------------------------------------------------------------------------------------
112B ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... ............ ............ ............ ............ ............ ............ ........... 2. 1986 .......... ............ ............ ............ ............ ............ ............ ........... 3. 1987 .......... X X X ............ ............ ............ ............ ............ ........... 4. 1988 .......... X X X X X X ............ ............ ............ ............ ........... 5. 1989 .......... X X X X X X X X X ............ ............ ............ ........... 6. 1990 .......... X X X X X X X X X X X X ............ ............ ........... 7. 1991 .......... X X X X X X X X X X X X X X X ............ ........... 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 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) --------------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - --------------------------------------------------------------------------- 1. Prior ......... ............. ............... ................ 2. 1986 .......... ............. ............... ................ 3. 1987 .......... ............. ............... ................ 4. 1988 .......... ............. ............... ................ 5. 1989 .......... ............. ............... ................ 6. 1990 .......... ............. ............... ................ 7. 1991 .......... ............. ............... ................ 8. 1992 .......... ............. ............... ................ 9. 1993 .......... ............. ............... ................ 10. 1994 .......... X X X ............. 7 ............. 11 11. 1995 .......... X X X X X X ............. 88 - ---------------------------------------------------------------------------
SECTION 2
==================================================================================================================================== (1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END -------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... ............ ............ ............ ............ ............ ............ ........... 2. 1986 .......... ............ ............ ............ ............ ............ ............ ........... 3. 1987 .......... X X X ............ ............ ............ ............ ............ ........... 4. 1988 .......... X X X X X X ............ ............ ............ ............ ........... 5. 1989 .......... X X X X X X X X X ............ ............ ............ ........... 6. 1990 .......... X X X X X X X X X X X X ............ ............ ........... 7. 1991 .......... X X X X X X X X X X X X X X X ............ ........... 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 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) --------------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - --------------------------------------------------------------------------- 1. Prior ......... ............. ............... ................ 2. 1986 .......... ............. ............... ................ 3. 1987 .......... ............. ............... ................ 4. 1988 .......... ............. ............... ................ 5. 1989 .......... ............. ............... ................ 6. 1990 .......... ............. ............... ................ 7. 1991 .......... ............. ............... ................ 8. 1992 .......... ............. ............... ................ 9. 1993 .......... ............. ............... ................ 10. 1994 .......... X X X ............. 2 ................ 11. 1995 .......... X X X X X X ............. 10 - ---------------------------------------------------------------------------
SECTION 3
==================================================================================================================================== (1) CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END -------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... X X X X X X X X X X X X X X X X X X X X X 2. 1986 .......... ............ ............ ............ ............ ............ ............ ........... 3. 1987 .......... X X X ............ ............ ............ ............ ............ ........... 4. 1988 .......... X X X X X X ............ ............ ............ ............ ........... 5. 1989 .......... X X X X X X X X X ............ ............ ............ ........... 6. 1990 .......... X X X X X X X X X X X X ............ ............ ........... 7. 1991 .......... X X X X X X X X X X X X X X X ............ ........... 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 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) --------------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - --------------------------------------------------------------------------- 1. Prior ......... X X X X X X X X X 2. 1986 .......... ............. ............... ................ 3. 1987 .......... ............. ............... ................ 4. 1988 .......... ............. ............... ................ 5. 1989 .......... ............. ............... ................ 6. 1990 .......... ............. ............... ................ 7. 1991 .......... ............. ............... ................ 8. 1992 .......... ............. ............... ................ 9. 1993 .......... ............. ............... ................ 10. 1994 .......... X X X ............. 9 ............. 14 11. 1995 .......... X X X X X X ............ 134 - ---------------------------------------------------------------------------
113 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... ............ ............ .... 2. 1986 .......... ............ ............ .... 3. 1987 .......... X X X ............ .... N O N E 4. 1988 .......... X X X X X X .... 5. 1989 .......... X X X X X X X X X ............ ............ ............ ........... 6. 1990 .......... X X X X X X X X X X X X ............ ............ ........... 7. 1991 .......... X X X X X X X X X X X X X X X ............ ........... 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 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) ----------------------------------------------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - --------------------------------------------------------------------------- 1. Prior ......... ............. ............... ................ 2. 1986 .......... ............. ............... ................ 3. 1987 .......... ............. ............... ................ 4. 1988 .......... ............. ............... ................ 5. 1989 .......... ............. ............... ................ 6. 1990 .......... ............. ............... ................ 7. 1991 .......... ............. ............... ................ 8. 1992 .......... ............. ............... ................ 9. 1993 .......... ............. ............... ................ 10. 1994 .......... X X X ............... ................ 11. 1995 .......... X X X X X X ................ - ---------------------------------------------------------------------------
SECTION 2
==================================================================================================================================== (1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END -------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... ............ ............ .... 2. 1986 .......... ............ ............ .... 3. 1987 .......... X X X ............ .... N O N E 4. 1988 .......... X X X X X X .... 5. 1989 .......... X X X X X X X X X ............ ............ ............ ........... 6. 1990 .......... X X X X X X X X X X X X ............ ............ ........... 7. 1991 .......... X X X X X X X X X X X X X X X ............ ........... 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 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) CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END ----------------------------------------------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - --------------------------------------------------------------------------- 1. Prior ......... ............. ............... ................ 2. 1986 .......... ............. ............... ................ 3. 1987 .......... ............. ............... ................ 4. 1988 .......... ............. ............... ................ 5. 1989 .......... ............. ............... ................ 6. 1990 .......... ............. ............... ................ 7. 1991 .......... ............. ............... ................ 8. 1992 .......... ............. ............... ................ 9. 1993 .......... ............. ............... ................ 10. 1994 .......... X X X ............... ................ 11. 1995 .......... X X X X X X ................ - ---------------------------------------------------------------------------
SECTION 3
==================================================================================================================================== (1) CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END -------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... X X X X X X .... 2. 1986 .......... ............ ............ .... 3. 1987 .......... X X X ............ .... N O N E 4. 1988 .......... X X X X X X .... 5. 1989 .......... X X X X X X X X X ............ ............ ............ ........... 6. 1990 .......... X X X X X X X X X X X X ............ ............ ........... 7. 1991 .......... X X X X X X X X X X X X X X X ............ ........... 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 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) ----------------------------------------------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - --------------------------------------------------------------------------- 1. Prior ......... X X X X X X X X X 2. 1986 .......... ............. ............... ................ 3. 1987 .......... ............. ............... ................ 4. 1988 .......... ............. ............... ................ 5. 1989 .......... ............. ............... ................ 6. 1990 .......... ............. ............... ................ 7. 1991 .......... ............. ............... ................ 8. 1992 .......... ............. ............... ................ 9. 1993 .......... ............. ............... ................ 10. 1994 .......... X X X ............... ................ 11. 1995 .......... X X X X X X ................ - ---------------------------------------------------------------------------
114 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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) --------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------- 1. Prior ........ ............ ............ ............ 2. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X ............ ............ 11. 1995 ......... X X X X X X ........ 11 - -----------------------------------------------------------------
SECTION 2
======================================================================================================================= (1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END -------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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) --------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------- 1. Prior ........ ............ ............ ............ 2. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X ............ ............ 11. 1995 ......... X X X X X X ......... 34 - -----------------------------------------------------------------
SECTION 3
======================================================================================================================= (1) CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END -------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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) --------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------- 1. Prior ........ ............ ............ ............ 2. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X ............ ............ 11. 1995 ......... X X X X X X ......... 53 - -----------------------------------------------------------------
115 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 5D - WORKERS' COMPENSATION SECTION 1
======================================================================================================================= (1) CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END ---------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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) ------------------------------------------------ Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------- 1. Prior ........ ............ ............ ............ 2. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X ............ ............ 11. 1995 ......... X X X X X X .......... 1 - -----------------------------------------------------------------
SECTION 2
======================================================================================================================= (1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END ---------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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) ------------------------------------------------ Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------- 1. Prior ........ ............ ............ ............ 2. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X ............ ............ 11. 1995 ......... X X X X X X .......... 4 - -----------------------------------------------------------------
SECTION 3
======================================================================================================================= (1) CUMULATIVE NUMBER OF CLAIMS REPORTED AND ASSUMED AT YEAR END ---------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ............ ............ ............ ............ ............ ............ ............ 2. 1986 ......... ............ ............ ............ ............ ............ ............ ............ 3. 1987 ......... X X X ............ ............ ............ ............ ............ ............ 4. 1988 ......... X X X X X X ............ ............ ............ ............ ............ 5. 1989 ......... X X X X X X X X X ............ ............ ............ ............ 6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ 7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ 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 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) ------------------------------------------------ Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------- 1. Prior ........ ............ ............ ............ 2. 1986 ......... ............ ............ ............ 3. 1987 ......... ............ ............ ............ 4. 1988 ......... ............ ............ ............ 5. 1989 ......... ............ ............ ............ 6. 1990 ......... ............ ............ ............ 7. 1991 ......... ............ ............ ............ 8. 1992 ......... ............ ............ ............ 9. 1993 ......... ............ ............ ............ 10. 1994 ......... X X X ............ ............ 11. 1995 ......... X X X X X X .......... 5 - -----------------------------------------------------------------
116 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ........ ................ ................ ................ ............ 594 ............ 598 ............ 599 2. 1986 ......... ................ ................ ................ ................ ................ ................ 3. 1987 ......... X X X ................ ................ ................ ................ ................ 4. 1988 ......... X X X X X X ................ ................ ................ ................ 5. 1989 ......... X X X X X X X X X ................ ................ ................ 6. 1990 ......... X X X X X X X X X X X X ................ ................ 7. 1991 ......... X X X X X X X X X X X X X X X ................ 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) Premiums Were Earned and 1993 1993 1994 1995 Losses Were Incurred - ------------------------------------------------------------------------------------ 1. Prior ....... ........... 599 .......... 603 ............ 603 ............ 604 2. 1986 ........ ............... .............. ................ ................ 3. 1987 ........ ............... .............. ................ ................ 4. 1988 ........ ............... .............. ................ ................ 5. 1989 ........ ............... .............. ................ ................ 6. 1990 ........ ............... .............. ................ ................ 7. 1991 ........ ............... .............. ................ ................ 8. 1992 ........ ............... ............ 2 .............. 2 .............. 2 9. 1993 ........ X X X ........... 19 ............. 30 ............. 40 10. 1994 ........ X X X X X X ............. 32 ............. 70 11. 1995 ........ X X X X X X X X X ............. 54 - ------------------------------------------------------------------------------------
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 ........ ............ 110 ............. 85 ............. 59 ............. 29 ............. 14 ............. 10 2. 1986 ......... ................ ................ ................ ................ ................ ................ 3. 1987 ......... X X X ................ ................ ................ ................ ................ 4. 1988 ......... X X X X X X ................ ................ ................ ................ 5. 1989 ......... X X X X X X X X X ................ ................ ................ 6. 1990 ......... X X X X X X X X X X X X ................ ................ 7. 1991 ......... X X X X X X X X X X X X X X X ................ 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) Premiums Were Earned and 1993 1993 1994 1995 Losses Were Incurred - ------------------------------------------------------------------------------------ 1. Prior ........ .......... 10 .......... 2 ............. 2 ............. 1 2. 1986 ......... ............. ............. ................ ................ 3. 1987 ......... ............. ............. ................ ................ 4. 1988 ......... ............. ............. ................ ................ 5. 1989 ......... ............. ............. ................ ................ 6. 1990 ......... ............. ............. ................ ................ 7. 1991 ......... ............. ............. ................ ................ 8. 1992 ......... ........... 2 ........... 2 .............. 2 ............. 1 9. 1993 ......... X X X .......... 57 ............. 23 ............. 3 10. 1994 ......... X X X X X X ............. 78 ............ 22 11. 1995 ......... X X X X X X X X X ............ 64 - ------------------------------------------------------------------------------------
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 ......... ................ ................ ................ ................ ................ ................ 3. 1987 ......... X X X ................ ................ ................ ................ ................ 4. 1988 ......... X X X X X X ................ ................ ................ ................ 5. 1989 ......... X X X X X X X X X ................ ................ ................ 6. 1990 ......... X X X X X X X X X X X X ................ ................ 7. 1991 ......... X X X X X X X X X X X X X X X ................ 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) Premiums Were Earned and 1993 1993 1994 1995 Losses Were Incurred - ------------------------------------------------------------------------------------ 1. Prior ........ X X X X X X X X X X X X 2. 1986 ......... .............. .............. ................ ................ 3. 1987 ......... .............. .............. ................ ................ 4. 1988 ......... .............. .............. ................ ................ 5. 1989 ......... .............. .............. ................ ................ 6. 1990 ......... .............. .............. ................ ................ 7. 1991 ......... .............. .............. ................ ................ 8. 1992 ......... ............ 4 ............ 5 .............. 5 .............. 5 9. 1993 ......... X X X ........... 47 ............. 57 ............. 60 10. 1994 ......... X X X X X X ............. 98 ............ 134 11. 1995.......... X X X X X X X X X ............ 153 - ------------------------------------------------------------------------------------
117 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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 ........ ................ .............. .... 2. 1986 ......... ................ .............. .... 3. 1987 ......... X X X .............. .... 4. 1988 ......... X X X X X X .... 5. 1989 ......... X X X X X X N O N E 6. 1990 ......... X X X X X X 7. 1991 ......... X X X X X X 8. 1992 ......... 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) Premiums Were Earned and 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------- 1. Prior ........ . ................ ................ ................. 2. 1986 ......... . ................ ................ ................. 3. 1987 ......... . ................ ................ ................. 4. 1988 ......... . ................ ................ ................. 5. 1989 ......... . ................ ................ ................. 6. 1990 ......... . ................ ................ ................. 7. 1991 ......... . ................ ................ ................. 8. 1992 ......... . ................ ................ ................. 9. 1993 ......... X X X ................ ................ ................. 10. 1994 ......... X X X X X X ................ ................. 11. 1995 ......... X X X X X X X X X ................. - -----------------------------------------------------------------------------------------
SECTION 2A ========================================================================================================================= (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 ........ ................ ................ .... 2. 1986 ......... ................ ................ .... 3. 1987 ......... X X X ................ .... 4. 1988 ......... X X X X X X .... 5. 1989 ......... X X X X X X N O N E 6. 1990 ......... X X X X X X 7. 1991 ......... X X X X X X 8. 1992 ......... 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) Premiums Were Earned and 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------- 1. Prior ........ . ................ ................ ................. 2. 1986 ......... . ................ ................ ................. 3. 1987 ......... . ................ ................ ................. 4. 1988 ......... . ................ ................ ................. 5. 1989 ......... . ................ ................ ................. 6. 1990 ......... . ................ ................ ................. 7. 1991 ......... . ................ ................ ................. 8. 1992 ......... . ................ ................ ................. 9. 1993 ......... X X X ................ ................ ................. 10. 1994 ......... X X X X X X ................ ................. 11. 1995 ......... X X X X X X X X X ................. - -----------------------------------------------------------------------------------------
SECTION 3A ========================================================================================================================= (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 ........ X X X X X X .... 2. 1986 ......... ................ ................ .... 3. 1987 ......... X X X ................ .... 4. 1988 ......... X X X X X X .... 5. 1989 ......... X X X X X X N O N E 6. 1990 ......... X X X X X X 7. 1991 ......... X X X X X X 8. 1992 ......... 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) Premiums Were Earned and 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------- 1. Prior ........ . ................ ................ ................. 2. 1986 ......... . ................ ................ ................. 3. 1987 ......... . ................ ................ ................. 4. 1988 ......... . ................ ................ ................. 5. 1989 ......... . ................ ................ ................. 6. 1990 ......... . ................ ................ ................. 7. 1991 ......... . ................ ................ ................. 8. 1992 ......... .............. ................ ................ ................. 9. 1993 ......... X X X ................ ................ ................. 10. 1994 ......... X X X X X X ................ ................. 11. 1995 ......... X X X X X X X X X ................. - -----------------------------------------------------------------------------------------
118 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... ........... .......... ... . ........... ........... ......... 2. 1986 ..... ........... .......... ... . ........... ........... ......... 3. 1987 ..... X X X .......... ... . ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E . ........... ........... ......... 5. 1989 ..... X X X X X X . ........... ........... ......... 6. 1990 ..... X X X X X X . ........... ........... ......... 7. 1991 ..... X X X X X X . ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2B
=================================================================================================================================== (1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... ........... .......... ... . ........... ........... ......... 2. 1986 ..... ........... .......... ... . ........... ........... ......... 3. 1987 ..... X X X .......... ... . ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E . ........... ........... ......... 5. 1989 ..... X X X X X X . ........... ........... ......... 6. 1990 ..... X X X X X X . ........... ........... ......... 7. 1991 ..... X X X X X X . ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 3B
=================================================================================================================================== (1) CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... X X X X X X . X X X X X X X X X 2. 1986 ..... ........... .......... ... . ........... ........... ......... 3. 1987 ..... X X X .......... ... . ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E . ........... ........... ......... 5. 1989 ..... X X X X X X . ........... ........... ......... 6. 1990 ..... X X X X X X . ........... ........... ......... 7. 1991 ..... X X X X X X . ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
119 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... ........... .......... .......... ..... 1,463 .... 1,463 ..... 1,463 ..... 1,463 ..... 1,463 ..... 1,466 ... 1,466 2. 1986 ..... ........... .......... .......... ....... 573 ...... 573 ....... 573 ....... 573 ....... 573 ....... 573 ..... 573 3. 1987 ..... X X X .......... .......... ....... 300 ...... 300 ....... 300 ....... 300 ....... 300 ....... 300 ..... 300 4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ....... 2 - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2A
=================================================================================================================================== (1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... ........... .......... .......... ........ 49 ....... 27 ........ 22 ........ 18 ........ 15 ........ 15 ...... 14 2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... ......... 3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... ......... 4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 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 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 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 X X X ...... 29 - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 3A
=================================================================================================================================== (1) CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 2. 1986 ..... ........... .......... .......... ........574 ...... 574 ....... 574 ....... 574 ....... 574 ....... 574 ..... 574 3. 1987 ..... X X X .......... .......... ........300 .......300 ........300 ........300 ........300 ........300 ......300 4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ......... 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 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 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 X X X ...... 34 - -----------------------------------------------------------------------------------------------------------------------------------
120 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior ......... ......... ......... .... . 2. 1986 ......... ......... ......... .... . 3. 1987 ......... X X X ......... .... . 4. 1988 ......... X X X X X X .... N O N E . 5. 1989 ......... X X X X X X . 6. 1990 ......... X X X X X X . 7. 1991 ......... X X X X X X . 8. 1992 ......... 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 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) -------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - -------------------------------------------------------- 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......... - --------------------------------------------------------
SECTION 2B
=============================================================================================================================== (1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END ------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior ......... ......... ......... .... . 2. 1986 ......... ......... ......... .... . 3. 1987 ......... X X X ......... .... . 4. 1988 ......... X X X X X X .... N O N E . 5. 1989 ......... X X X X X X . 6. 1990 ......... X X X X X X . 7. 1991 ......... X X X X X X . 8. 1992 ......... 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 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) -------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - -------------------------------------------------------- 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......... - --------------------------------------------------------
SECTION 3B
=============================================================================================================================== (1) CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END ------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior ......... X X X X X X .... . 2. 1986 ......... ......... ......... .... . 3. 1987 ......... X X X ......... .... . 4. 1988 ......... X X X X X X .... N O N E . 5. 1989 ......... X X X X X X . 6. 1990 ......... X X X X X X . 7. 1991 ......... X X X X X X . 8. 1992 ......... 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 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) -------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - -------------------------------------------------------- 1. Prior ......... X X X X X X X X X 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......... - --------------------------------------------------------
121 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 5R - OTHER LIABILITY - CLAIMS-MADE 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) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior ......... ......... ......... .... . 2. 1986 ......... ......... ......... .... . 3. 1987 ......... X X X ......... .... . 4. 1988 ......... X X X X X X .... . 5. 1989 ......... X X X X X X N O N E . 6. 1990 ......... X X X X X X . 7. 1991 ......... X X X X X X . 8. 1992 ......... 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 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) -------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - -------------------------------------------------------- 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......... - --------------------------------------------------------
SECTION 2A
=============================================================================================================================== (1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END ------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior ......... ......... ......... .... . 2. 1986 ......... ......... ......... .... . 3. 1987 ......... X X X ......... .... . 4. 1988 ......... X X X X X X .... . 5. 1989 ......... X X X X X X N O N E . 6. 1990 ......... X X X X X X . 7. 1991 ......... X X X X X X . 8. 1992 ......... 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 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) -------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - -------------------------------------------------------- 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......... - --------------------------------------------------------
SECTION 3A
=============================================================================================================================== (1) CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END ------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------- 1. Prior ......... X X X X X X .... . 2. 1986 ......... ......... ......... .... . 3. 1987 ......... X X X ......... .... . 4. 1988 ......... X X X X X X .... . 5. 1989 ......... X X X X X X N O N E . 6. 1990 ......... X X X X X X . 7. 1991 ......... X X X X X X . 8. 1992 ......... 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 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) -------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - -------------------------------------------------------- 1. Prior ......... X X X X X X X X X 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......... - --------------------------------------------------------
122 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... ......... ......... .... . 2. 1986 ......... ......... ......... .... . 3. 1987 ......... X X X ......... .... . 4. 1988 ......... X X X X X X .... . 5. 1989 ......... X X X X X X N O N E . 6. 1990 ......... X X X X X X . 7. 1991 ......... X X X X X X . 8. 1992 ......... 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 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) ----------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ------------------------------------------------------------------ 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......... - ------------------------------------------------------------------
SECTION 2B
==================================================================================================================================== (1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END ----------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... ......... ......... .... . 2. 1986 ......... ......... ......... .... . 3. 1987 ......... X X X ......... .... . 4. 1988 ......... X X X X X X .... N O N E . 5. 1989 ......... X X X X X X . 6. 1990 ......... X X X X X X . 7. 1991 ......... X X X X X X . 8. 1992 ......... 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 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) ------------------------------------------------ Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ------------------------------------------------------------------- 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......... - -------------------------------------------------------------------
SECTION 3B
==================================================================================================================================== (1) CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END ----------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... X X X X X X .... . 2. 1986 ......... ......... ......... .... . 3. 1987 ......... X X X ......... .... . 4. 1988 ......... X X X X X X .... . 5. 1989 ......... X X X X X X N O N E . 6. 1990 ......... X X X X X X . 7. 1991 ......... X X X X X X . 8. 1992 ......... 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 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) ------------------------------------------------ Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ------------------------------------------------------------------- 1. Prior ......... X X X X X X X X X 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......... - -------------------------------------------------------------------
123 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... 0 0 0 ......... ......... ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... ......... ......... ......... ......... 3. 1987 ......... X X X ......... ......... ......... ......... ......... ......... 4. 1988 ......... X X X X X X ......... ......... ......... ......... ......... 5. 1989 ......... X X X X X X X X X ......... ......... ......... ......... 6. 1990 ......... X X X X X X X X X X X X ......... ......... ......... 7. 1991 ......... X X X X X X X X X X X X X X X ......... ......... 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 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) -------------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - --------------------------------------------------------------------- 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ......189 - ---------------------------------------------------------------------
SECTION 2
==================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) ----------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... 0 0 0 ......... ......... ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... ......... ......... ......... ......... 3. 1987 ......... X X X ......... ......... ......... ......... ......... ......... 4. 1988 ......... X X X X X X ......... ......... ......... ......... ......... 5. 1989 ......... X X X X X X X X X ......... ......... ......... ......... 6. 1990 ......... X X X X X X X X X X X X ......... ......... ......... 7. 1991 ......... X X X X X X X X X X X X X X X ......... ......... 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 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) ---------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - ------------------------------------------------------------------ 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X .......25 - ------------------------------------------------------------------
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) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... 0 0 0 ......... ......... ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... ......... ......... ......... ......... 3. 1987 ......... X X X ......... ......... ......... ......... ......... ......... 4. 1988 ......... X X X X X X ......... ......... ......... ......... ......... 5. 1989 ......... X X X X X X X X X ......... ......... ......... ......... 6. 1990 ......... X X X X X X X X X X X X ......... ......... ......... 7. 1991 ......... X X X X X X X X X X X X X X X ......... ......... 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 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) ---------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - --------------------------------------------------------------------- 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ........6 - ---------------------------------------------------------------------
SECTION 2
==================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) ----------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 Losses Were Incurred - ------------------------------------------------------------------------------------------------------------------------------------ 1. Prior ......... 0 0 0 ......... ......... ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... ......... ......... ......... ......... 3. 1987 ......... X X X ......... ......... ......... ......... ......... ......... 4. 1988 ......... X X X X X X ......... ......... ......... ......... ......... 5. 1989 ......... X X X X X X X X X ......... ......... ......... ......... 6. 1990 ......... X X X X X X X X X X X X ......... ......... ......... 7. 1991 ......... X X X X X X X X X X X X X X X ......... ......... 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 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) ---------------------------------------- Years in Which (9) (10) (11) Premiums Were Earned and 1993 1994 1995 Losses Were Incurred - --------------------------------------------------------------------- 1. Prior ......... ......... ......... ......... 2. 1986 ......... ......... ......... ......... 3. 1987 ......... ......... ......... ......... 4. 1988 ......... ......... ......... ......... 5. 1989 ......... ......... ......... ......... 6. 1990 ......... ......... ......... ......... 7. 1991 ......... ......... ......... ......... 8. 1992 ......... ......... ......... ......... 9. 1993 ......... ......... ......... ......... 10. 1994 ......... X X X ......... ......... 11. 1995 ......... X X X X X X ........1 - ---------------------------------------------------------------------
124 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... .......... ........... .......... ........... ........... ........... ........... ......... 2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... ......... 3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... ......... 4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 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 X X X ..... 1,639 ..... 1,639 ... 1,639 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 ..... 3,792 ... 3,792 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 X X X ... 6,766 - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2
=================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... .......... ........... .......... ........... ........... ........... ........... ......... 2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... ......... 3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... ......... 4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 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 X X X ..... 1,209 ..... 1,209 ... 1,209 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 ..... 2,898 ... 2,898 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 X X X ... 4,790 - -----------------------------------------------------------------------------------------------------------------------------------
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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... .......... ........... .......... ........... ........... ........... ........... ......... 2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... ......... 3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... ......... 4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 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 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 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 X X X ... 1,848 - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2A
=================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... .......... ........... .......... ........... ........... ........... ........... ......... 2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... ......... 3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... ......... 4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 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 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 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 X X X ... 1,449 - -----------------------------------------------------------------------------------------------------------------------------------
125 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... ... .. ........... ........... ......... 2. 1986 ..... ........... .......... ... .. ........... ........... ......... 3. 1987 ..... X X X .......... ... .. ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E .. ........... ........... ......... 5. 1989 ..... X X X X X X .. ........... ........... ......... 6. 1990 ..... X X X X X X .. ........... ........... ......... 7. 1991 ..... X X X X X X .. ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2B
=================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... ... .. ........... ........... ......... 2. 1986 ..... ........... .......... ... .. ........... ........... ......... 3. 1987 ..... X X X .......... ... .. ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E .. ........... ........... ......... 5. 1989 ..... X X X X X X .. ........... ........... ......... 6. 1990 ..... X X X X X X .. ........... ........... ......... 7. 1991 ..... X X X X X X .. ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... ... .. ........... ........... ......... 2. 1986 ..... ........... .......... ... .. ........... ........... ......... 3. 1987 ..... X X X .......... ... .. ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E .. ........... ........... ......... 5. 1989 ..... X X X X X X .. ........... ........... ......... 6. 1990 ..... X X X X X X .. ........... ........... ......... 7. 1991 ..... X X X X X X .. ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2
=================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... ... .. ........... ........... ......... 2. 1986 ..... ........... .......... ... .. ........... ........... ......... 3. 1987 ..... X X X .......... ... .. ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E .. ........... ........... ......... 5. 1989 ..... X X X X X X .. ........... ........... ......... 6. 1990 ..... X X X X X X .. ........... ........... ......... 7. 1991 ..... X X X X X X .. ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
126 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 2. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 3. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 4. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 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 X X X .... 10,093 .... 10,093 .. 10,093 7. 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 .... 13,688 .. 13,688 8. 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 X X X .. 20,154 - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2
=================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 2. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 3. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 4. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 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 X X X ..... 4,196 ..... 4,196 ... 4,196 7. 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 ..... 7,127 ... 7,127 8. 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 X X X ... 8,540 - -----------------------------------------------------------------------------------------------------------------------------------
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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 2. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 3. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 4. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 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 X X X ..... 7,397 ..... 7,397 ... 7,397 7. 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 .... 10,578 .. 10,578 8. 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 X X X .. 18,887 - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2
=================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... ......... 2. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... ......... 3. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... ......... 4. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... ......... 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 X X X ..... 1,811 ..... 1,811 ... 1,811 7. 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 ..... 2,399 ... 2,399 8. 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 X X X ... 4,758 - -----------------------------------------------------------------------------------------------------------------------------------
127 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED 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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... ... . ........... ........... ......... 2. 1986 ..... ........... .......... ... . ........... ........... ......... 3. 1987 ..... X X X .......... ... . ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E . ........... ........... ......... 5. 1989 ..... X X X X X X . ........... ........... ......... 6. 1990 ..... X X X X X X . ........... ........... ......... 7. 1991 ..... X X X X X X . ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2A
=================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... ... . ........... ........... ......... 2. 1986 ..... ........... .......... ... . ........... ........... ......... 3. 1987 ..... X X X .......... ... . ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E . ........... ........... ......... 5. 1989 ..... X X X X X X . ........... ........... ......... 6. 1990 ..... X X X X X X . ........... ........... ......... 7. 1991 ..... X X X X X X . ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
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) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... ... . ........... ........... ......... 2. 1986 ..... ........... .......... ... . ........... ........... ......... 3. 1987 ..... X X X .......... ... . ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E . ........... ........... ......... 5. 1989 ..... X X X X X X . ........... ........... ......... 6. 1990 ..... X X X X X X . ........... ........... ......... 7. 1991 ..... X X X X X X . ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
SECTION 2B
=================================================================================================================================== (1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) - ----------------------------------------------------------------------------------------------------------------------------------- Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Premiums Were Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Losses Were Incurred - ----------------------------------------------------------------------------------------------------------------------------------- 1. Prior ..... O O O .......... ... . ........... ........... ......... 2. 1986 ..... ........... .......... ... . ........... ........... ......... 3. 1987 ..... X X X .......... ... . ........... ........... ......... 4. 1988 ..... X X X X X X ... N O N E . ........... ........... ......... 5. 1989 ..... X X X X X X . ........... ........... ......... 6. 1990 ..... X X X X X X . ........... ........... ......... 7. 1991 ..... X X X X X X . ........... ........... ......... 8. 1992 ..... 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 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 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 X X X ......... - -----------------------------------------------------------------------------------------------------------------------------------
128 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS ($000 OMITTED) SECTION 1
============================================================================================================================== (1) (2) (3) (4) (5) (6) (7) Net Losses and Net Expenses Loss Premiums Loss Total Net Unpaid On Sensitive Written On Sensitive Losses and Loss as Total Net Loss as Expenses Sensitive Percentage Premiums Sensitive Percentage Schedule P - Part 1 Unpaid Contracts of Total Written Contracts of Total ------------------------------------------------------------------------------------------------------------------------------ 1. Homeowners/Farmowners ................ ........ 104 ............ ............ ........ 398 ............ ............ 2. Private Passenger Auto Liab./Medical . ............ ............ ............ ............ ............ ............ 3. Commercial Auto/Truck Liab./Medical .. ........ 105 ............ ............ ........ 521 ............ ............ 4. Workers' Compensation ................ .......... 2 ............ ............ ......... 11 ............ ............ 5. Commercial Multiple Peril ............ ...... 1,115 ............ ............ ...... 2,137 ............ ............ 6. Medical Malpractice - Occurrence ..... ............ ............ ............ ............ ............ ............ 7. Medical Malpractice - Claims - made .. ............ ............ ............ ............ ............ ............ 8. Special Liability .................... ............ ............ ............ ............ ............ ............ 9. Other Liability - Occurrence ......... ........ 506 ............ ............ ........ 955 ............ ............ 10. Other Liabilities - Claims - made .... ............ ............ ............ ............ ............ ............ 11. Special Property ..................... ........ 528 ............ ............ ...... 2,167 ............ ............ 12. Auto Physical Damage ................. ........ 230 ............ ............ ...... 1,105 ............ ............ 13. Fidelity/Surety ...................... .......... 3 ............ ............ ......... 11 ............ ............ 14. Other ................................ ..... 17,946 ............ ............ ..... 81,546 ............ ............ 15. International ........................ ............ ............ ............ ............ ............ ............ 16. Reinsurance A ........................ XXX XXX XXX XXX XXX XXX 17. Reinsurance B ........................ XXX XXX XXX XXX XXX XXX 18. Reinsurance C ........................ XXX XXX XXX XXX XXX XXX 19. Reinsurance D ........................ XXX XXX XXX XXX XXX XXX 20. Products Liability - Occurrence ...... ............ ............ ............ ............ ............ ............ 21. Products Liability - Claims - made ... ............ ............ ............ ............ ............ ............ 22. Financial Guaranty/Mortgage Guaranty . ............ ............ ............ ............ ............ ............ ------------------------------------------------------------------------------------------------------------------------------ 23. Totals ............................... ..... 20,539 ............ ............ ..... 88,851 ............ ............ ------------------------------------------------------------------------------------------------------------------------------
SECTION 2
============================================================================================================================ (1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) Years in Which ---------------------------------------------------------------------------------------------------------- Policies Were (2) (3) (4) (5) (6) (7) (8) Issued 1986 1987 1988 1989 1990 1991 1992 - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ....... .............. .............. .. 2. 1986 ........ .............. .............. .. ... 3. 1987 ........ XXX .............. .. ... 4. 1988 ........ XXX XXX .. ... 5. 1989 ........ XXX XXX N O N E ... 6. 1990 ........ XXX XXX ... 7. 1991 ........ XXX XXX ... 8. 1992 ........ XXX XXX ... 9. 1993 ........ XXX XXX ... ... ... ... ... 10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX 11. 1995 ........ XXX XXX XXX XXX XXX XXX XXX - ---------------------------------------------------------------------------------------------------------------------------- ================================================================ (1) Years in Which ---------------------------------------------- Policies Were (9) (10) (11) Issued 1993 1994 1995 - ---------------------------------------------------------------- 1. Prior ....... ............ .............. .............. 2. 1986 ........ ............ .............. .............. 3. 1987 ........ ............ .............. .............. 4. 1988 ........ ............ .............. .............. 5. 1989 ........ ............ .............. .............. 6. 1990 ........ ............ .............. .............. 7. 1991 ........ ............ .............. .............. 8. 1992 ........ ............ .............. .............. 9. 1993 ........ ............ .............. .............. 10. 1994 ........ XXX .............. .............. 11. 1995 ........ XXX XXX .............. - ----------------------------------------------------------------
SECTION 3
============================================================================================================================ (1) BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) Years in Which ---------------------------------------------------------------------------------------------------------- Policies Were (2) (3) (4) (5) (6) (7) (8) Issued 1986 1987 1988 1989 1990 1991 1992 - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ....... .............. .............. .. ... 2. 1986 ........ .............. .............. .. ... 3. 1987 ........ XXX .............. .. ... 4. 1988 ........ XXX XXX .. ... 5. 1989 ........ XXX XXX N O N E ... 6. 1990 ........ XXX XXX ... 7. 1991 ........ XXX XXX ... 8. 1992 ........ XXX XXX ... 9. 1993 ........ XXX XXX XXX XXX XXX XXX XXX 10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX 11. 1995 ........ XXX XXX XXX XXX XXX XXX XXX - ---------------------------------------------------------------------------------------------------------------------------- ================================================================ (1) Years in Which ---------------------------------------------- Policies Were (9) (10) (11) Issued 1993 1994 1995 - ---------------------------------------------------------------- 1. Prior ....... .............. .............. .............. 2. 1986 ........ .............. .............. .............. 3. 1987 ........ .............. .............. .............. 4. 1988 ........ .............. .............. .............. 5. 1989 ........ .............. .............. .............. 6. 1990 ........ .............. .............. .............. 7. 1991 ........ .............. .............. .............. 8. 1992 ........ .............. .............. .............. 9. 1993 ........ .............. .............. .............. 10. 1994 ........ XXX .............. .............. 11. 1995 ........ XXX XXX .............. - ----------------------------------------------------------------
129 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS (continued) SECTION 4
============================================================================================================================ (1) NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED) Years in Which ---------------------------------------------------------------------------------------------------------- Policies Were (2) (3) (4) (5) (6) (7) (8) Issued 1986 1987 1988 1989 1990 1991 1992 - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ....... .............. .............. . .... 2. 1986 ........ .............. .............. . .... 3. 1987 ........ XXX .............. . .... 4. 1988 ........ XXX XXX . .... 5. 1989 ........ XXX XXX N O N E .... 6. 1990 ........ XXX XXX .... 7. 1991 ........ XXX XXX .... 8. 1992 ........ XXX XXX .... 9. 1993 ........ XXX XXX 10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX 11. 1995 ........ XXX XXX XXX XXX XXX XXX XXX - ---------------------------------------------------------------------------------------------------------------------------- ================================================================ (1) Years in Which ---------------------------------------------- Policies Were (9) (10) (11) Issued 1993 1994 1995 - ---------------------------------------------------------------- 1. Prior ....... .............. .............. .............. 2. 1986 ........ .............. .............. .............. 3. 1987 ........ .............. .............. .............. 4. 1988 ........ .............. .............. .............. 5. 1989 ........ .............. .............. .............. 6. 1990 ........ .............. .............. .............. 7. 1991 ........ .............. .............. .............. 8. 1992 ........ .............. .............. .............. 9. 1993 ........ .............. .............. .............. 10. 1994 ........ XXX .............. .............. 11. 1995 ........ XXX XXX .............. - ----------------------------------------------------------------
SECTION 5
============================================================================================================================ (1) NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITTED) Years in Which ---------------------------------------------------------------------------------------------------------- Policies Were (2) (3) (4) (5) (6) (7) (8) Issued 1986 1987 1988 1989 1990 1991 1992 - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ....... .............. .............. . ..... 2. 1986 ........ .............. .............. . ..... 3. 1987 ........ XXX .............. . ..... 4. 1988 ........ XXX XXX . ..... 5. 1989 ........ XXX XXX N O N E ..... 6. 1990 ........ XXX XXX ..... 7. 1991 ........ XXX XXX ..... 8. 1992 ........ XXX XXX ..... 9. 1993 ........ XXX XXX 10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX 11. 1995 ........ XXX XXX XXX XXX XXX XXX XXX - ---------------------------------------------------------------------------------------------------------------------------- ================================================================ (1) Years in Which ---------------------------------------------- Policies Were (9) (10) (11) Issued 1993 1994 1995 - ---------------------------------------------------------------- 1. Prior ....... .............. .............. .............. 2. 1986 ........ .............. .............. .............. 3. 1987 ........ .............. .............. .............. 4. 1988 ........ .............. .............. .............. 5. 1989 ........ .............. .............. .............. 6. 1990 ........ .............. .............. .............. 7. 1991 ........ .............. .............. .............. 8. 1992 ........ .............. .............. .............. 9. 1993 ........ .............. .............. .............. 10. 1994 ........ XXX .............. .............. 11. 1995 ........ XXX XXX .............. - ----------------------------------------------------------------
130 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS ($000 Omitted) SECTION 1 ============================================================================================================ (1) (2) (3) (4) Net Losses and Expenses Loss Total Net Unpaid On Sensitive Losses and Loss as Expenses Sensitive Percentage Schedule P - Part 1 Unpaid Contracts of Total ------------------------------------------------------------------------------------------------------------ 1. Homeowners/Farmowners ..................... .............. 104 .................... ................... 2. Private Passenger Auto Liab./Medical ...... .................. .................... ................... 3. Commercial Auto/Truck Liab./Medical ....... .............. 105 .................... ................... 4. Workers' Compensation ..................... ................ 2 .................... ................... 5. Commercial Multiple Peril ................. ............ 1,115 .................... ................... 6. Medical Malpractice - Occurrence .......... .................. .................... ................... 7. Medical Malpractice - Claims - made ....... .................. .................... ................... 8. Special Liability ......................... .................. .................... ................... 9. Other Liability - Occurrence .............. .............. 506 .................... ................... 10. Other Liabilities - Claims - made ......... .................. .................... ................... 11. Special Property .......................... .............. 528 .................... ................... 12. Auto Physical Damage ..................... .............. 230 .................... ................... 13. Fidelity/Surety ........................... ................ 3 .................... ................... 14. Other ..................................... ........... 17,947 .................... ................... 15. International ............................. .................. .................... ................... 16. Reinsurance A ............................. ............ 9,859 .................... ................... 17. Reinsurance B ............................. ........... 31,970 .................... ................... 18. Reinsurance C ............................. .................. .................... ................... 19. Reinsurance D ............................. ............... 51 .................... ................... 20. Products Liability - Occurrence ........... .................. .................... ................... 21. Products Liability - Claims - made ........ .................. .................... ................... 22. Financial Guaranty/Mortgage Guaranty ...... .................. .................... ................... ------------------------------------------------------------------------------------------------------------ 23. Totals ................................ ............62,420 .................... ................... ------------------------------------------------------------------------------------------------------------
============================================================================================ (1) (5) (6) (7) Net Premiums Loss Written On sensitive Total Net Loss as Premiums Sensitive Percentage Schedule P - Part 1 Written Contracts of Total -------------------------------------------------------------------------------------------- 1. Homeowners/Farmowners ..................... ......... 398 ............. ............. 2. Private Passenger Auto Liab./Medical ...... ............. ............. ............. 3. Commercial Auto/Truck Liab./Medical ....... ......... 521 ............. ............. 4. Workers' Compensation ..................... .......... 11 ............. ............. 5. Commercial Multiple Peril ................. ....... 2,136 ............. ............. 6. Medical Malpractice - Occurrence .......... ............. ............. ............. 7. Medical Malpractice - Claims - made ....... ............. ............. ............. 8. Special Liability ......................... ............. ............. ............. 9. Other Liability - Occurrence .............. ......... 955 ............. ............. 10. Other Liabilities - Claims - made ......... ............. ............. ............. 11. Special Property .......................... ....... 2,168 ............. ............. 12. Auto Physical Damage ..................... ....... 1,105 ............. ............. 13. Fidelity/Surety ........................... .......... 11 ............. ............. 14. Other ..................................... .......81,547 ............. ............. 15. International ............................. ............. ............. ............. 16. Reinsurance A ............................. ...... 13,152 ............. ............. 17. Reinsurance B ............................. .......14,892 ............. ............. 18. Reinsurance C ............................. ............. ............. ............. 19. Reinsurance D ............................. XXX XXX XXX 20. Products Liability - Occurrence ........... ............. ............. ............. 21. Products Liability - Claims - made ........ ............. ............. ............. 22. Financial Guaranty/Mortgage Guaranty ...... ............. ............. ............. -------------------------------------------------------------------------------------------- 23. Totals ................................ ..... 116,896 ............. ............. --------------------------------------------------------------------------------------------
SECTION 2
- -------------------------------------------------------------------------------------------------------------------------------- (1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) Years in Which ------------------------------------------------------------------------------------------------------------- Policies Were (2) (3) (4) (5) (6) (7) (8) Issued 1986 1987 1988 1989 1990 1991 1991 - -------------------------------------------------------------------------------------------------------------------------------- 1. Prior ....... ................ ................ ... .... 2. 1986 ........ ................ ................ ... .... 3. 1987 ........ XXX ................ ... .... 4. 1988 ........ XXX XXX ... .... 5. 1989 ........ XXX XXX N O N E .... 6. 1990 ........ XXX XXX .... 7. 1991 ........ XXX XXX .... 8. 1992 ........ XXX XXX .... 9. 1993 ........ XXX XXX 10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX 11. 1995......... XXX XXX XXX XXX XXX XXX XXX - -------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------- (1) Years in Which -------------------------------------------------- Policies Were (9) (10) (11) Issued 1993 1994 1995 - -------------------------------------------------------------------- 1. Prior ....... ............... ................ ................ 2. 1986 ........ ............... ................ ................ 3. 1987 ........ ............... ................ ................ 4. 1988 ........ ............... ................ ................ 5. 1989 ........ ............... ................ ................ 6. 1990 ........ ............... ................ ................ 7. 1991 ........ ............... ................ ................ 8. 1992 ........ ............... ................ ................ 9. 1993 ........ ............... ................ ................ 10. 1994 ........ XXX ................ ................ 11. 1995......... XXX XXX ................ - ---------------------------------------------------------------------
SECTION 3
- ---------------------------------------------------------------------------------------------------------------------------- (1) BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) Years in Which ------------------------------------------------------------------------------------------------------ Policies Were (2) (3) (4) (5) (6) (7) Issued 1986 1987 1988 1989 1990 1991 - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ....... ................ ................ ... 2. 1986 ........ ................ ................ ... 3. 1987 ........ XXX ................ ... 4. 1988 ........ XXX XXX ... 5. 1989 ........ XXX XXX N O N E 6. 1990 ........ XXX XXX 7. 1991 ........ XXX XXX 8. 1992 ........ XXX XXX 9. 1993 ........ XXX XXX 10. 1994 ........ XXX XXX XXX XXX XXX XXX 11. 1995......... XXX XXX XXX XXX XXX XXX - ---------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- (1) Years in Which -------------------------------------------------------------------- Policies Were (8) (9) (10) (11) Issued 1992 1993 1994 1995 - ----------------------------------------------------------------------------------------- 1. Prior ....... .... ................ ................ ................. 2. 1986 ........ .... ................ ................ ................. 3. 1987 ........ .... ................ ................ ................. 4. 1988 ........ .... ................ ................ ................. 5. 1989 ........ .... ................ ................ ................. 6. 1990 ........ .... ................ ................ ................. 7. 1991 ........ .... ................ ................ ................. 8. 1992 ........ .... ................ ................ ................. 9. 1993 ........ ................ ................ ................. 10. 1994 ........ XXX XXX ................ ................. 11. 1995......... XXX XXX XXX ................. - -----------------------------------------------------------------------------------------
131 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS (continued) SECTION 4
- ------------------------------------------------------------------------------------------------------------------------- (1) NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED) Years in Which ----------------------------------------------------------------------------------------------------- Policies Were (2) (3) (4) (5) (6) (7) Issued 1986 1987 1988 1989 1990 1991 - ------------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ................ ................ . 2. 1986 ......... ................ ................ . 3. 1987 ......... XXX ................ . 4. 1988 ......... XXX XXX . 5. 1989 ......... XXX XXX N O N E 6. 1990 ......... XXX XXX 7. 1991 ......... XXX XXX 8. 1992 ......... XXX XXX 9. 1993 ......... XXX XXX 10. 1994 ......... XXX XXX XXX XXX XXX XXX 11. 1995.......... XXX XXX XXX XXX XXX XXX - ------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- (1) Years in Which ------------------------------------------------------------------- Policies Were (8) (9) (10) (11) Issued 1992 1993 1994 1995 - ------------------------------------ ---------------- ---------------- ---------------- 1. Prior ........ .... ................ ................ ................ 2. 1986 ......... .... ................ ................ ................ 3. 1987 ......... .... ................ ................ ................ 4. 1988 ......... .... ................ ................ ................ 5. 1989 ......... .... ................ ................ ................ 6. 1990 ......... .... ................ ................ ................ 7. 1991 ......... .... ................ ................ ................ 8. 1992 ......... .... ................ ................ ................ 9. 1993 ......... ................ ................ ................ 10. 1994 ......... XXX XXX ................ ................ 11. 1995.......... XXX XXX XXX ................ - ---------------------------------------------------------------------------------------
SECTION 5
- ---------------------------------------------------------------------------------------------------------------------------- (1) NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITTED) Years in Which ----------------------------------------------------------------------------------------------------- Policies Were (2) (3) (4) (5) (6) (7) Issued 1986 1987 1988 1989 1990 1991 - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ................ ................ . 2. 1986 ......... ................ ................ . 3. 1987 ......... XXX ................ . 4. 1988 ......... XXX XXX . 5. 1989 ......... XXX XXX N O N E 6. 1990 ......... XXX XXX 7. 1991 ......... XXX XXX 8. 1992 ......... XXX XXX 9. 1993 ......... XXX XXX 10. 1994 ......... XXX XXX XXX XXX XXX XXX 11. 1995.......... XXX XXX XXX XXX XXX XXX - ---------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- (1) Years in Which ------------------------------------------------------------------- Policies Were (8) (9) (10) (11) Issued 1992 1993 1994 1995 - ------------------------------------ ---------------- ---------------- ---------------- 1. Prior ........ .... ................ ................ ................ 2. 1986 ......... .... ................ ................ ................ 3. 1987 ......... .... ................ ................ ................ 4. 1988 ......... .... ................ ................ ................ 5. 1989 ......... .... ................ ................ ................ 6. 1990 ......... .... ................ ................ ................ 7. 1991 ......... .... ................ ................ ................ 8. 1992 ......... .... ................ ................ ................ 9. 1993 ......... ................ ................ ................ 10. 1994 ......... XXX XXX ................ ................ 11. 1995.......... XXX XXX XXX ................ - ---------------------------------------------------------------------------------------
SECTION 6
- ---------------------------------------------------------------------------------------------------------------------------- (1) INCURRED ADJUSTABLE COMMISSIONS REPORTED AT YEAR END ($000 OMITTED) Years in Which ----------------------------------------------------------------------------------------------------- Policies Were (2) (3) (4) (5) (6) (7) Issued 1986 1987 1988 1989 1990 1991 - ---------------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ................ ................ . 2. 1986 ......... ................ ................ . 3. 1987 ......... XXX ................ . 4. 1988 ......... XXX XXX . 5. 1989 ......... XXX XXX N O N E 6. 1990 ......... XXX XXX 7. 1991 ......... XXX XXX 8. 1992 ......... XXX XXX 9. 1993 ......... XXX XXX 10. 1994 ......... XXX XXX XXX XXX XXX XXX 11. 1995.......... XXX XXX XXX XXX XXX XXX - ---------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- (1) Years in Which ------------------------------------------------------------------- Policies Were (8) (9) (10) (11) Issued 1992 1993 1994 1995 - ------------------------------------ ---------------- ---------------- ---------------- 1. Prior ........ .... ................ ................ ................ 2. 1986 ......... .... ................ ................ ................ 3. 1987 ......... .... ................ ................ ................ 4. 1988 ......... .... ................ ................ ................ 5. 1989 ......... .... ................ ................ ................ 6. 1990 ......... .... ................ ................ ................ 7. 1991 ......... .... ................ ................ ................ 8. 1992 ......... .... ................ ................ ................ 9. 1993 ......... ................ ................ ................ 10. 1994 ......... XXX XXX ................ ................ 11. 1995.......... XXX XXX XXX ................ - ---------------------------------------------------------------------------------------
SECTION 7
- ------------------------------------------------------------------------------------------------------------------------- (1) NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED) Years in Which ----------------------------------------------------------------------------------------------------- Policies Were (2) (3) (4) (5) (6) (7) Issued 1986 1987 1988 1989 1990 1991 - ------------------------------------------------------------------------------------------------------------------------- 1. Prior ........ ................ ................ . 2. 1986 ......... ................ ................ . 3. 1987 ......... XXX ................ . 4. 1988 ......... XXX XXX . 5. 1989 ......... XXX XXX N O N E 6. 1990 ......... XXX XXX 7. 1991 ......... XXX XXX 8. 1992 ......... XXX XXX 9. 1993 ......... XXX XXX 10. 1994 ......... XXX XXX XXX XXX XXX XXX 11. 1995.......... XXX XXX XXX XXX XXX XXX - ------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- (1) Years in Which ------------------------------------------------------------------- Policies Were (8) (9) (10) (11) Issued 1992 1993 1994 1995 - ------------------------------------ ---------------- ---------------- ---------------- 1. Prior ........ .... ................ ................ ................ 2. 1986 ......... .... ................ ................ ................ 3. 1987 ......... .... ................ ................ ................ 4. 1988 ......... .... ................ ................ ................ 5. 1989 ......... .... ................ ................ ................ 6. 1990 ......... .... ................ ................ ................ 7. 1991 ......... .... ................ ................ ................ 8. 1992 ......... .... ................ ................ ................ 9. 1993 ......... ................ ................ ................ 10. 1994 ......... XXX XXX ................ ................ 11. 1995.......... XXX XXX XXX ................ - ---------------------------------------------------------------------------------------
132 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED SCHEDULE P INTERROGATORIES 1. Computation of excess statutory reserves over statement reserves. a. Auto Liability (private passenger and commercial) 1995 $ ( %) 1994 $ ( %) 1993 $ ( %) Total $ b. Other Liability and Products Liability 1995 $ ( %) 1994 $ ( %) 1993 $ ( %) Total $ c. Medical Malpractice 1995 $ ( %) 1994 $ ( %) 1993 $ ( %) Total $ d. Workers' Compensation 1995 $ ( %) 1994 $ ( %) 1993 $ ( %) Total $ e. Credit Total $ f. All Lines Total (Report here and Page 3) Total $
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) (3) earned and losses were incurred Medical Malpractice Other Liability Products Liability --------------------------------------------------------------------------------------------------------------------------- a. 1987 ........................... b. 1988 ........................... c. 1989 ........................... d. 1990 ........................... e. 1991 ........................... f. 1992 ........................... g. 1993 ........................... h. 1994 ........................... i. 1995 ........................... j. TOTALS ---------------------------------------------------------------------------------------------------------------------------
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 ( ) 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 ( ) 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 ( ) 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 $ b. Surety $ 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-----