*Aggregate Material Index of the 9 most commonly used building materials Residential

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1 CLAIMS BULLETIN CLAIMS DATA UPDATE BULLETIN-USDC Symbility Solutions is pleased to provide you with an overview of updates in the 1 st Quarter 2015 release of CoreLogic Insurance Solutions Partial Loss Database. This overview will provide you with an understanding of this quarter s changes in residential building costs. To ensure that our clients receive the most current building material and labor costs, CoreLogic Insurance Solutions Data Team continuously researches labor, material, and equipment costs (hard costs) including mark-ups. Our research is extended to cover taxes and fringes (soft costs) for reconstruction work performed within the insurance industry in the United States and Canada. Research professionals monitor data from nearly 3,000 unique economies in the United States and over 100 in Canada. The process includes monitoring demographics and econometric statistics, government indicators, and localization requirements, including market trends. Other factors in this process include: Wage rates for more than 85 union and non-union trades Over 100,000 line items of construction data Productivity rates and crew sizes Local cost concerns, such as building code requirements and other localized variables In addition, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys and partial and full loss claim information. NOTE: The cost information in this bulletin is only intended to give you a general sense of reconstruction cost trends in North America. We do not advocate using these factors when adjusting renewal values or claim estimates for specific locations or across your book of business. The building material and labor cost trends presented in this bulletin are broad averages derived from our research of construction trades and building materials used in a typical 2,400 square foot, single family, 2-story home. For more information or explanation, please contact your sales consultant or account manager.

2 U.S. MATERIAL COSTS QUARTERLY CLAIMS DATA UPDATE BULLETIN-USDC FELT SHINGLES PIPE WIRE DRYWALL LUMBER PLYWOOD INSULATION CORELOGIC INSURANCE SOLUTIONS DATA TREND NOTES USA Plywood Plywood prices are now starting to stabilize after a big run-up in the second half of Price increases were in response to a fire in July that destroyed the Swanson Springfield Plywood and Veneer Mill in Oregon, which represents roughly 2 of the North American production. After the news broke of the fire, a large quantity of plywood orders began driving prices upward throughout North America. Despite the short-term spike in prices, experts do not believe the loss of the Mill will continuously disrupt the plywood market long term, as prices will eventually stabilize in Drywall Drywall prices leveled off throughout the quarter. However, it is still trending in a positive direction as housing starts continue to increase. In addition, the price of drywall s main component, gypsum, continues its steady incline, as it reflects positive home construction demand today and in the near future. CORELOGIC INSURANCE SOLUTIONS DATA AT A GLANCE The average for U.S. building materials increased 0.4 for the quarter. For labor, the average wage rate increased 0.4, based on construction trade contracts that were renewed during the quarter. CoreLogic Insurance Solutions monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below: US 4Q14 3Q14 2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 Asphalt Felt 15# Asphalt Shingles 25yr, 3-tab /2" Copper Pipe Copper Wire /2" Drywall x4 Lumber /2" Plywood R-13 Fiber Batt Insulation Ready-Mix *Aggregate Material Index of the 9 most commonly used building materials Residential ** This table represents the percent change from one quarter to the next period. READY MIX 0.9 TECHNICAL SUPPORT: a.m. to 7 p.m. CT MSBHelpdesk@msbinfo.com

3 CANADA MATERIAL COSTS QUATERLY CLAIMS DATA UPDATE BULLETIN-USDC FELT SHINGLES PIPE WIRE CORELOGIC INSURANCE SOLUTIONS DATA TREND NOTES CANADA Copper Wire Copper wire prices took a breather in the 4 th quarter of 2014 with no change, while copper pipe decreased 0.4. Uncertainty for manufacturing production is caused by a continuous slump in overall mining performance. Global copper prices continue a downward trend, influence suggesting both materials will decrease further into the upcoming quarter. Plywood Plywood prices continued their incline with a 5.0 increase over the quarter. The affects of high demand in the U.S. market has filtered into the Canadian market throughout the second half of CORELOGIC INSURANCE SOLUTIONS DATA AT A GLANCE The average for Canadian building materials increased 0.7 over the quarter. For labor, the average wage rate revealed little to no change for the quarter, based on construction trade contracts that were renewed during the quarter. CoreLogic Insurance Solutions monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below: DRYWALL LUMBER PLYWOOD CANADA 4Q14 3Q14 2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 Asphalt Felt 15# Asphalt Shingles 25yr, 3-tab /2" Copper Pipe Copper Wire /2" Drywall x4 Lumber /2" Plywood R-13 Fiber Batt Insulation Ready-Mix INSULATION 1.5 *Aggregate Material Index of the 9 most commonly used building materials Residential **This table represents the percent change from one quarter to the next period. READY MIX 0.2 TECHNICAL SUPPORT: a.m. to 7 p.m. CT MSBHelpdesk@msbinfo.com

4 U.S. MATERIAL COSTS ANNUAL CANADA MATERIAL COSTS ANNUAL CLAIMS DATA UPDATE BULLETIN-USDC 1 st Quarter 2015 FAQ s Q. What factors are considered for the claims labor billing rate? FELT A. The billing rate found in the CoreLogic Claims database is SHINGLES made up of many different components. These components consist of an hourly base rate, employee costs, subcontractor overhead, and sub-contractor profit. Examples of employee costs include: benefits and fringes, PIPE unemployment, social security, health care, disability, and WIRE worker s compensation. Sub-contractor overhead is split between business overhead and job overhead. Business overhead represents fixed costs of doing business and costs DRYWALL that are not directly associated with a particular project or job. Examples of business overhead are general overheads LUMBER such as: office rent, office equipment, utilities, and marketing. Job overhead represents costs that are directly PLYWOOD associated with site work. Examples of job overhead might include: shared job equipment rental, tools, consumable job INSULATION supplies, uniforms, permits, fees and warranties. Both types of overhead can vary by trade. READY MIX TECHNICAL SUPPORT: a.m. to 7 p.m. CT MSBHelpdesk@msbinfo.com

5 CLAIMS DATA UPDATE BULLETIN-USDC p New Item Updates for January 2015 (63 Items) Category Description Action UOM RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Small Remove & Reset EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Small Remove EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Small Replace EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Small Tear Out EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Medium Remove & Reset EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Medium Remove EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Medium Replace EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Medium Tear Out EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Large Remove & Reset EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Large Remove EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Large Replace EA RFG-Accessories Roof Exhaust Vent, Painted Aluminum, Large Tear Out EA SFG-Fascia Fascia, Aluminum, 10" Remove & Reset LF SFG-Fascia Fascia, Aluminum, 10" Remove LF SFG-Fascia Fascia, Aluminum, 10" Replace LF CLN-Exterior Fascia, Aluminum, 10" Clean LF PNT-Exterior Fascia, Aluminum, 10" Paint LF SFG-Fascia Fascia, Aluminum, 10" Tear Out LF MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Remove & Reset SF MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Remove SF MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Replace SF CLN-Ceiling, Floors and Walls Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Clean SF MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge Tear Out SF MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Remove & Reset SF MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Remove SF MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Replace SF CLN-Ceiling, Floors and Walls Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Clean SF MTL-Metal Structures & Components Wall/Roof Panel, Ribbed, Up to 1", 28 Gauge, Unpainted Tear Out SF INS - Rigid Insulation, Polyisocyanurate, 2 1/2" Remove & Reset SF INS - Rigid Insulation, Polyisocyanurate, 2 1/2" Remove SF INS - Rigid Insulation, Polyisocyanurate, 2 1/2" Replace SF INS - Rigid Insulation, Polyisocyanurate, 2 1/2" Tear Out SF INS - Rigid Insulation, Polyisocyanurate, 3 1/2" Remove & Reset SF INS - Rigid Insulation, Polyisocyanurate, 3 1/2" Remove SF INS - Rigid Insulation, Polyisocyanurate, 3 1/2" Replace SF INS - Rigid Insulation, Polyisocyanurate, 3 1/2" Tear Out SF INS - Rigid Insulation, Polyisocyanurate, 4" Remove & Reset SF INS - Rigid Insulation, Polyisocyanurate, 4" Remove SF

6 Category Description Action UOM INS - Rigid Insulation, Polyisocyanurate, 4" Replace SF INS - Rigid Insulation, Polyisocyanurate, 4" Tear Out SF FEN - Chain Link Fences Security Fence Top, Barbed Wire Remove & Reset LF FEN - Chain Link Fences Security Fence Top, Barbed Wire Remove LF FEN - Chain Link Fences Security Fence Top, Barbed Wire Replace LF CLN - Exterior Security Fence Top, Barbed Wire Clean LF FEN - Chain Link Fences Security Fence Top, Barbed Wire Tear Out LF MIT - Equipment & Accessories Heat Drying, Per Day, Thermal Exchanger, Self Regulating Special EA MIT - Equipment & Accessories Heat Drying, Per Day, Thermal Air Exchanger, Booster Unit Special EA MIT - Equipment & Accessories Heat Drying, Per Day, Drying Blanket or Mat Special EA MIT - Equipment & Accessories Additional Remote Monitoring, Sensors (EA) Special EA HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Cast Iron Remove & Reset Each HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Cast Iron Remove Each HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Cast Iron Replace Each HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Cast Iron Tear Out Each HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Steel Remove & Reset Each HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Steel Remove Each HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Steel Replace Each HVC - Boiler Boiler, Steam, Oil/Gas, Commercial Steel Tear Out Each RFG - Accessories Felt, Synthetic Good Remove SQ RFG - Accessories Felt, Synthetic Good Replace SQ RFG - Accessories Felt, Synthetic Very Good Remove SQ RFG - Accessories Felt, Synthetic Very Good Replace SQ RFG - Accessories Felt, Synthetic Excellent Remove SQ RFG - Accessories Felt, Synthetic Excellent Replace SQ TECHNICAL SUPPORT: a.m. to 7 p.m. CT support@symbilitysolutions.com