Chubb Group of Insurance Companies

Report Revision Date: 07/12/2013 Rating and Commentary 1 Best's Credit Rating: N/A Rating Rationale: N/A Report Commentary: 07/12/2013 Financial 2 Time Period: 2nd Quarter - 2013 Last Updated: 08/31/2013 Status: Quality Cross Checked General Information 3 Corporate Structure: 03/17/2008 States Licensed: N/A Officers and Directors: N/A Best's Credit Rating Methodology Disclaimer Best's Rating Guide Additional Online Resources Related News Rating Activity and Announcements Company Overview Archived AMB Credit Reports Corporate Changes & Retirements AMB Country Risk Reports - United States 1 The Rating and Commentary date outlines the most recent updates to the Company's Rating, Rationale, and Report Commentary for key rating and business changes. Report commentary may include significant changes to Business Review, Financial Performance/Earnings, Capitalization, Investment/Liquidity, or Reinsurance sections of the report. 2 The Financial date reflects the current status of the financial tables found within the body of the Report, including whether the data was loaded as received or had been run through our quality control cross-check process. 3 The General Information date covers key areas that may have changed such as corporate structure, states licensed or officers and directors. Page 1 of 28 Print Date: September 03, 2013

Associated Parent: The Chubb Corporation Chubb Group of Insurance Companies 15 Mountain View Road, Warren, New Jersey, United States 07059 Tel.: 908-903-2525 Web: www.chubb.com Fax: 908-903-3805 AMB #: 000012 Associated Parent: 058342 NAIC #: N/A FEIN #: N/A Report Revision Date: 07/12/2013 Rating Rationale Rating Rationale: The ratings reflect Chubb Group's superior risk-adjusted capitalization, excellent underwriting and overall operating performance, and sustained competitive advantages within its specialty and upscale personal insurance businesses. The ratings also recognize the group's comprehensive and proactive enterprise risk management, disciplined underwriting, strong franchise recognition, and access to the capital markets through its parent. These rating factors are partially offset by competitive market conditions and catastrophe losses that have resulted in reduced underwriting profitability in recent years and a modest level of historical adverse loss reserve development associated with its asbestos and environmental (A&E) liabilities. The group's positive rating attributes are enhanced by its position as a leading insurer in the US and in global markets. The strength of the group's balance sheet is derived from its consistent generation of underwriting profits (although recent years have been impacted by catastrophes and competitive market conditions) and a well-diversified book of business, which have led to an excellent level of risk-adjusted capitalization. The group's results also benefit from an above-average total return on invested assets and strong operating cash flows. Somewhat offsetting these favorable characteristics are the effects of competitive market conditions and catastrophe losses, which have impacted underwriting performance in recent years. Catastrophe losses added nearly nine and ten points to the group's combined ratio in 2011 and 2012, respectively. Management remains focused on limiting exposures through actively monitoring these risks and maintaining a prudent reinsurance program and the group posted an underwriting profit for 2011 and 2012 despite these losses. A.M. Best considers the group favorably positioned and sufficiently capitalized to absorb these challenges. Moreover, the group is afforded additional financial flexibility by The Chubb Corporation, which maintains cash and short-term funds that exceed fixed cash obligations, including shareholder dividends. Financial leverage remains at a moderate level with debt-to-tangible capital of approximately 20%. While A.M. Best believes the ratings for Chubb Insurance Group are appropriately positioned at their present level, future positive rating actions may result from the group's continued strong underwriting and operating performance. However, negative rating actions could result if operating performance or risk-adjusted capitalization falls markedly short of A.M. Best's expectations. Rating Unit Members Chubb Group of Insurance Companies ( AMB# 000012 ) BEST'S AMB# Company FSR ICR Pool % 002713 Chubb Custom Insurance Co A++ aa+ 011578 Chubb Indemnity Insurance Co A++ aa+ 086085 Chubb Ins Co of Australia Ltd A++ aa+ 085630 Chubb Ins Co of Europe SE A++ aa+ 085725 Chubb Insurance Co of Canada A++ aa+ 011560 Chubb National Insurance Co A++ aa+ Page 2 of 28 Print Date: September 03, 2013

Rating Unit Members (Continued...) BEST'S AMB# Company FSR ICR Pool % 003761 Executive Risk Indemnity Inc A++ aa+ 011251 Executive Risk Specialty Ins A++ aa+ 002084 Federal Insurance Company A++ aa+ 002085 Great Northern Insurance Co A++ aa+ 002385 Pacific Indemnity Company A++ aa+ 002086 Vigilant Insurance Company A++ aa+ 003299 Chubb Insurance Co of NJ A++ aa+ 003566 Chubb Lloyds Ins Co of Texas A++ aa+ 002384 Northwestern Pacific Indem Co A++ aa+ 002386 Texas Pacific Indemnity Co A++ aa+ Key Financial Indicators Period Ending Premiums Written Direct Net Statutory Data ($000) Pre-tax Operating Income Net Income Total Admitted Assets Policyholder's Surplus 2012 9,691,654 9,350,627 1,694,544 1,660,628 39,125,345 13,841,016 2011 9,438,655 9,184,443 1,813,458 1,785,078 38,380,184 13,707,546 2010 9,330,464 8,927,736 2,421,464 2,165,817 38,565,387 14,317,263 2009 9,419,255 8,962,996 2,658,554 1,986,000 38,210,012 14,321,521 2008 9,836,727 9,466,228 2,282,894 1,507,462 36,586,804 12,135,809 06/2013 4,959,922 4,827,557 1,375,360 1,256,800 39,455,241 14,322,819 06/2012 4,882,162 4,732,939 1,123,871 1,009,590 38,823,727 13,900,125 Period Ending Combined Ratio Profitability Leverage Liquidity Investment Yield Pre-Tax ROR Non- Affiliated Investment Leverage NPW to PHS Net Leverage Overall Liquidity Operating Cash-flow 2012 95.9 3.9 18.2 26.8 0.7 2.5 155.4 122.8 2011 96.4 4.5 20.0 27.6 0.7 2.4 156.4 124.3 2010 91.3 4.9 27.1 26.7 0.6 2.3 159.8 124.9 2009 85.3 3.8 28.8 23.9 0.6 2.3 160.8 122.1 2008 89.3 3.8 23.9 24.8 0.8 2.8 150.6 125.4 5-Yr Avg 91.6 4.2 23.6............... 06/2013 84.0 3.5 28.9 28.8 0.7 2.4 157.7 109.7 06/2012 91.3 4.4 24.0 30.2 0.7 2.4 156.6 117.8 Page 3 of 28 Print Date: September 03, 2013

Key Financial Indicators (Continued...) (*) Within several financial tables of this report, this company is compared against the Commercial Casualty Composite. (*) Data reflected within all tables of this report has been compiled through the A.M. Best Consolidation of statutory filings. Page 4 of 28 Print Date: September 03, 2013

Business Profile The Chubb Corporation ranks among the largest insurance organizations in the United States and is recognized as an industry leader in providing specialized insurance coverage for select commercial customer groups as well as unique products and services for the upscale personal lines market. Chubb Group's insurance business composition within the property/casualty marketplace is approximately 22% specialty insurance, 43% commercial insurance and 35% personal insurance. Approximately 90% of the group's specialty insurance lines writings represent professional liability business, including D&O and E&O coverages; the balance is surety. The Chubb Group has 13 domestic property/casualty companies. Nine of these companies, led by Federal Insurance Company, participate in the intercompany pooling arrangements. The other pool participants include: Vigilant Insurance Company, Great Northern Insurance Company, Pacific Indemnity Company, Chubb Custom Insurance Company, Chubb National Insurance Company, Chubb Indemnity Insurance Company, Executive Risk Indemnity Inc. and Executive Risk Specialty Insurance Company. Four other domestic companies of the group, Chubb Insurance Company of New Jersey, Chubb Lloyds Insurance Company of Texas, Texas Pacific Indemnity Company and Northwestern Pacific Indemnity Company, are fully reinsured by pool members. A.M. Best considers these companies, as well as three international affiliates; Chubb Insurance Company of Europe SE, Chubb Insurance Company of Canada and Chubb Insurance Company of Australia Limited, to be strategic to the overall group strategy. Chubb Atlantic Indemnity Ltd., another international affiliate, is afforded rating enhancement by the implicit and explicit financial support provided by its parent, The Chubb Corporation. Scope of Operations Scope of Operations: Chubb Group's commercial insurance lines include commercial package, casualty, property and, to a lesser extent, workers' compensation coverage, offered largely to mid-sized insureds. Approximately 60% of Chubb Group's personal lines business is comprised of homeowners coverage, primarily provided to affluent individuals. Chubb Group has a significant portion of the high net worth market in the U.S. While its book of business is somewhat oriented towards coastal locations, Chubb Group carefully monitors and controls its direct exposures, and maintains strong catastrophe reinsurance protection. In the United States, Chubb Group is represented by approximately 5,000 independent agents and accepts business on a regular basis from approximately 500 insurance brokers. In addition to the administrative offices in Warren and Whitehouse Station, New Jersey, it operates zone administrative and branch offices in major cities throughout the United States and also has offices in Europe, Canada, Australia, Asia and Latin America. The group offers products through approximately 3,000 insurance brokers outside of the United States. To a lesser degree, business for the group is also produced through its participation in a number of underwriting pools and syndicates. Period Ending Direct Premiums Written Total Premium Composition & Growth Analysis Reinsurance Premiums Assumed Reinsurance Premiums Ceded Net Premiums Written ($000) (%Chg) ($000) (%Chg) ($000) (%Chg) ($000) (%Chg) 2012 9,691,654 2.7 312,413 9.0 653,440 20.8 9,350,627 1.8 2011 9,438,655 1.2 286,595 36.5 540,807-11.7 9,184,443 2.9 2010 9,330,464-0.9 209,893-3.3 612,621-9.0 8,927,736-0.4 2009 9,419,255-4.2 217,124-45.4 673,383-12.3 8,962,996-5.3 2008 9,836,727-1.3 397,632-37.3 768,131-17.2 9,466,228-2.2 5-Yr CAGR... -0.6... -13.2... -6.8... -0.7 06/2013 4,959,922 1.6 3,359,493 2.0 3,491,858 1.5 4,827,557 2.0 06/2012 4,882,162 3.2 3,292,158 5.3 3,441,382 5.1 4,732,939 3.2 Page 5 of 28 Print Date: September 03, 2013

Territory The member companies of the group collectively operate in all states as well as in Washington, D.C., Canada, the United Kingdom and a large number of foreign countries through certain members of the group and various foreign affiliates. Business Trends Product Line Direct Premiums Written 2012 By-Line Business ($000) Reinsurance Premiums Assumed Reinsurance Premiums Ceded Net Premiums Written ($000) ($000) ($000) ($000) Business Retention % Homeowners 1,877,340 19.4 1,431 0.5 195,442 29.9 1,683,329 18.0 89.6 Oth Liab CM 1,478,872 15.3 21,776 7.0 22,231 3.4 1,478,418 15.8 98.5 Com'l MultiPeril 1,582,437 16.3 8,789 2.8 210,948 32.3 1,380,279 14.8 86.7 Oth Liab Occur 912,226 9.4 52,297 16.7-3,769-0.6 968,292 10.4 100.4 Workers' Comp 1,049,479 10.8 19,898 6.4 108,566 16.6 960,811 10.3 89.8 Inland Marine 696,356 7.2 17,807 5.7 113,638 17.4 600,525 6.4 84.1 Fidelity 240,680 2.5 15,715 5.0-17,919-2.7 274,314 2.9 107.0 Surety 198,598 2.0 11,881 3.8-61,734-9.4 272,213 2.9 129.3 Auto Physical 237,650 2.5 263 0.1 8,254 1.3 229,659 2.5 96.5 Prod Liab Occur 233,725 2.4 506 0.2 7,550 1.2 226,682 2.4 96.8 Priv Pass Auto Liab 214,619 2.2 89 0.0 533 0.1 214,175 2.3 99.8 Group A & H 133,614 1.4 44,229 14.2-9,317-1.4 187,160 2.0 105.2 All Other 836,057 8.6 117,731 37.7 79,015 12.1 874,772 9.4 91.7 Total 9,691,654 100.0 312,413 100.0 653,440 100.0 9,350,627 100.0 93.5 2012 Top Product Lines of Business (Net Premiums Written) 5 Years of Net Premiums Written ($000) 2.0% 2.4%2.3% 9.4% 18.0% 2.9% 2.9% 10,000,000 9,466,228 8,962,996 8,927,736 9,184,443 9,350,627 6.4% 15.8% 8,000,000 10.3% 10.4% 14.8% 6,000,000 Homeowners Com'l MultiPeril Workers' Comp Fidelity Auto Physical Priv Pass Auto Liab All Other Oth Liab CM Oth Liab Occur Inland Marine Surety Prod Liab Occur Group A & H 4,000,000 2,000,000 0 2008 2009 2010 2011 2012 Page 6 of 28 Print Date: September 03, 2013

Business Trends (Continued...) By-Line Reserve ($000) Product Line 2012 2011 2010 2009 2008 Homeowners 723,566 618,702 545,556 515,420 568,459 Oth Liab CM 5,270,244 5,394,443 5,672,664 5,742,258 5,678,657 Com'l MultiPeril 2,095,459 1,802,234 1,688,457 1,552,887 1,644,696 Oth Liab Occur 4,386,440 4,425,975 4,372,044 4,433,868 4,361,858 Workers' Comp 2,502,355 2,297,997 2,151,977 2,059,028 1,913,921 Inland Marine 186,015 200,540 124,153 117,764 135,826 Fidelity 252,500 255,796 232,076 237,083 207,088 Surety 73,204 65,696 50,709 53,281 65,176 Auto Physical 3,276 10,550 15,976 16,555 17,656 Prod Liab Occur 1,056,398 967,342 915,074 843,197 825,966 Priv Pass Auto Liab 275,546 293,193 290,743 314,131 323,257 Group A & H 101,180 86,335 117,094 124,259 101,656 All Other 1,065,122 1,074,270 1,010,028 967,682 1,016,608 Total 17,991,306 17,493,074 17,186,551 16,977,412 16,860,824 Market Share / Market Presence Page 7 of 28 Print Date: September 03, 2013

Market Share / Market Presence (Continued...) 000012 - Chubb Group of Insurance Companies Geographical Breakdown By Direct Premium Writings ($000) 2012 2011 2010 2009 2008 New York 1,565,373 1,505,585 1,424,361 1,415,719 1,454,268 California 1,159,159 1,090,602 1,040,679 1,021,867 1,052,378 Texas 662,423 635,821 625,664 618,160 651,729 Florida 555,743 540,585 516,762 528,987 592,073 New Jersey 543,850 524,753 494,315 520,085 555,255 Illinois 461,472 445,643 445,646 449,423 448,052 Pennsylvania 452,983 434,262 423,765 426,543 445,262 Massachusetts 390,088 382,787 371,407 371,966 388,660 Connecticut 342,700 335,110 325,895 321,381 329,653 Ohio 228,622 227,376 227,216 255,810 257,109 All Other 3,329,239 3,316,130 3,434,754 3,489,315 3,662,289 Total 9,691,654 9,438,655 9,330,464 9,419,255 9,836,727 Page 8 of 28 Print Date: September 03, 2013

Risk Management The group maintains a strong ERM program which has been in place for a number of years. The program includes formal board level oversight through the board's Audit Committee. Entity-wide risk limitation procedures, enhanced by controls on authority, approvals and exceptions, have historically ensured that the group's risk appetite is reflected in day-to-day decisionmaking. Local risk identification by risk topic flows through global management committees, to facilitate identification, assessment and management of existing and emerging risks. Finally, compensation systems incorporate risk in the assessment of performance and earnings. The group's consistent and strong operating results demonstrate the historical effectiveness of its ERM capabilities. Reinsurance Utilization: Chubb Group maintains an extensive reinsurance program with the objective of mitigating its catastrophic exposure at optimal cost. The group retains a sizable amount of the lower layer of losses. Page 9 of 28 Print Date: September 03, 2013

Operating Performance Operating Results: Chubb Group has reported strong operating results over the current five-year period as evidenced by its returns on revenue and surplus (ROR & ROE), which have exceeded the commercial casualty composite by a comfortable margin. The group's excellent level of earnings has been generated through underwriting profits and investment earnings. In recent years (2010 thru 2012), operating performance remained strong despite an uptick in catastrophe losses and reflected continued solid investment income. A.M. Best expects operating results to remain strong over the near term given management's commitment to underwriting discipline and prudent investment management. Despite the impact of heavy catastrophe losses and realized investment losses in 2008, Chubb Group produced strong underwriting results and net income. Results in 2009 were favorably impacted by limited catastrophe losses and the rebound in the financial markets. Period Ending Pre-tax Operating Income After-tax Operating Income Net Income Profitability Analysis Company Total Return Pre- Tax ROR Return Operating on PHS Ratio Industry Composite Pre- Tax ROR Return Operating on PHS Ratio 2012 1,694,544 1,449,749 1,660,628 1,888,121 18.2 13.7 81.9 6.7 7.9 92.4 2011 1,813,458 1,574,357 1,785,078 2,027,740 20.0 14.5 79.7 6.5 5.6 93.1 2010 2,421,464 2,005,730 2,165,817 2,363,513 27.1 16.5 72.9 11.1 9.6 88.2 2009 2,658,554 2,138,357 1,986,000 2,953,061 28.8 22.3 72.0 15.4 11.5 84.6 2008 2,282,894 1,857,090 1,507,462 1,445,379 23.9 11.6 76.5 16.8-1.0 83.6 5-Yr Avg/Tot 10,870,915 9,025,283 9,104,985 10,677,814 23.6 15.7 76.6 11.3 6.8 88.4 06/2013 1,375,360 1,059,915 1,256,800 1,165,885 28.9 14.2 70.9 XX XX XX 06/2012 1,123,871 935,446 1,009,590 1,046,684 24.0 13.2 75.8 XX XX XX Pre-Tax ROR Comparison with Industry Composite Return on PHS Comparison with Industry Composite 22.3 30.0 24.0 18.0 12.0 6.0 0.0 23.9 16.8 28.8 15.4 27.1 11.1 20.0 18.2 6.5 6.7 2008 2009 2010 2011 2012 20.0 15.0 10.0 5.0 0.0-5.0 11.6-1.0 11.5 16.5 9.6 14.5 5.6 13.7 7.9 2008 2009 2010 2011 2012 - Company Pre-Tax ROR - Industry Composite Pre-Tax ROR - Company Return on PHS - Industry Composite Return on PHS * Industry Composite - Commercial Casualty Composite * Industry Composite - Commercial Casualty Composite Page 10 of 28 Print Date: September 03, 2013

Underwriting Results Underwriting Results: The group continues to produce strong underwriting results as evidenced by the combined ratio, which outperformed that of the industry composite on both a five and ten-year average basis by more than ten points. These favorable results reflect the group's adherence to underwriting discipline and prudent reserving practices which have produced substantial favorable reserve development over the current five-year period. The group's underwriting performance remained solid despite increased catastrophe losses which accounted for approximately 7, 9 and 10 points in the group's combined ratio for 2010, 2011, and 2012 respectively. A.M. Best anticipates continued solid underwriting results given the company's conservative pricing and reserving philosophy and proactive exposure management. In 2008, the group's underwriting performance, while still profitable and which outperformed the commercial casualty composite, was impacted by heavy catastrophe losses (Hurricane Ike), which added approximately six points to the group's combined ratio. In 2009, the group's underwriting performance benefitted from modest weather-related losses and continued favorable loss reserve development. Year Net Undrw Income ($000) Pure Loss Underwriting Experience Loss Ratios LAE Loss & LAE Net Comm Expense Ratios Other Exp. Total Exp. Div. Pol. Comb. Ratio 2012 378,605 51.4 13.9 65.3 15.8 14.4 30.2 0.3 95.9 2011 299,349 51.6 14.4 66.0 15.9 14.1 30.0 0.3 96.4 2010 779,086 45.5 15.5 61.0 15.3 14.7 30.0 0.3 91.3 2009 1,433,540 40.5 15.0 55.5 14.9 14.6 29.5 0.3 85.3 2008 1,046,677 46.2 13.7 59.9 14.5 14.6 29.0 0.4 89.3 5-Yr Avg 3,937,257 47.0 14.5 61.5 15.3 14.5 29.8 0.3 91.6 06/2013 745,819 38.6 14.1 52.7 XX XX 30.8 0.4 84.0 06/2012 390,171 46.0 14.5 60.5 XX XX 30.4 0.3 91.3 Loss Ratio By Line Product Line 2012 2011 2010 2009 2008 5-Yr. Avg. Homeowners 66.7 72.4 62.8 45.4 50.5 59.4 Oth Liab CM 32.8 30.1 31.5 32.5 38.9 33.3 Com'l MultiPeril 68.2 59.9 49.6 34.8 55.6 53.4 Oth Liab Occur 39.1 46.7 39.4 50.9 58.3 47.0 Workers' Comp 55.2 50.3 50.6 49.2 41.1 49.4 Inland Marine 43.9 53.5 34.1 35.4 43.6 42.4 Fidelity 66.3 66.9 65.7 70.7 33.2 59.8 Surety 7.2 11.3 3.1 0.3 33.3 11.2 Auto Physical 58.3 50.9 46.9 44.9 45.0 49.0 Prod Liab Occur 60.8 54.9 43.1 30.8 19.5 40.9 Priv Pass Auto Liab 51.9 55.4 50.9 52.2 52.6 52.6 Group A & H 56.6 62.7 67.1 75.3 60.4 64.7 All Other 48.1 49.6 44.9 36.7 42.4 44.6 Total 51.4 51.6 45.5 40.5 46.2 47.0 Page 11 of 28 Print Date: September 03, 2013

Underwriting Results (Continued...) Combined Ratio 2012 Pure Loss Ratio by Product Line 100.0 80.0 60.0 89.3 59.9 85.3 55.5 91.3 61.0 96.4 95.9 66.0 65.3 75 60 45 66.7 68.2 39.1 55.2 43.9 66.3 58.3 60.8 51.9 56.6 48.1 32.8 40.0 30 20.0 29.0 29.5 30.0 30.0 30.2 15 7.2 0.0 2008 2009 2010 2011 2012 - Loss & LAE Ratio - Expense Ratio - Combined Ratio 0 Homeowners Oth Liab CM Com'l MultiPeril Oth Liab Occur Workers' Comp Inland Marine Fidelity Surety Auto Physical Prod Liab Occur Priv Pass Auto Liab Group A & H All Other Direct Loss Ratios By State 2012 2011 2010 2009 2008 5-Yr. Avg. New York 79.6 47.8 41.5 31.4 53.3 51.4 California 39.9 42.5 38.2 41.8 34.1 39.3 Texas 46.0 43.6 47.1 45.0 72.9 50.9 Florida 44.3 38.8 34.7 32.9 46.8 39.6 New Jersey 94.1 84.8 44.7 47.5 37.5 61.5 Illinois 35.1 39.0 38.2 39.6 42.9 38.9 Pennsylvania 46.0 56.6 45.5 49.2 43.7 48.2 Massachusetts 30.7 35.2 46.7 30.1 32.6 35.0 Connecticut 67.1 63.5 55.3 42.4 40.4 53.8 Ohio 43.1 39.2 48.0 40.5 38.3 41.8 All Other 42.2 45.3 45.7 38.1 40.2 42.2 Total 51.5 47.4 43.7 38.7 43.8 45.0 Investment Results Investment Results: Investment earnings have generally increased over the current five-year period, primarily due to growth in invested assets associated with strong operating cash flows. The decline in investment income in each of the past two years (2011 and 2012) resulted from a modest decline in yield on the group's long-term bond portfolio, reflective of reduced yields on reinvestment of funds from maturing and called bonds, and a reduction in dividends from affiliated investments. The group's overall investment position is heavily weighted towards high-quality, long-term fixed income securities, which include some exposure to mortgage-backed securities. The group's bond portfolio is largely comprised of tax-exempt securities and is managed to achieve an appropriate balance with regard to both its investment and tax strategies. Page 12 of 28 Print Date: September 03, 2013

Investment Results (Continued...) Investment Gains ($000) 000012 - Chubb Group of Insurance Companies Year Net Investment Income ($000) Realized Capital Gains ($000) Unrealized Capital Gains ($000) Company Investment Income Growth Investment Yield Return on Invested Assets Total Return Industry Composite Investment Income Growth Investment Yield 2012 1,306,932 210,880 227,493-13.4 3.9 4.5 5.2-5.4 3.9 2011 1,509,849 210,721 242,662-8.1 4.5 5.2 5.9-5.2 4.2 2010 1,643,582 160,086 197,696 33.8 4.9 5.4 6.0 3.6 4.5 2009 1,228,178-152,356 967,060 0.2 3.8 3.3 6.3-8.5 4.4 2008 1,225,461-349,629-62,083-2.4 3.8 2.7 2.5-6.0 4.7 5-Yr Avg/Tot 6,914,001 79,702 1,572,829 0.8 4.2 4.2 5.2-4.4 4.4 06/2013 623,227 196,885-90,915-14.1 3.5 4.5 4.8 XX XX 06/2012 725,318 74,143 37,095-3.2 4.4 5.0 4.9 XX XX Investment Yield vs Industry Investment Income Growth vs Industry 5.0 4.0 3.0 2.0 4.7 4.4 3.8 3.8 4.9 4.5 4.5 4.2 3.9 3.9 37.5 25.0 12.5 0.0-2.4 0.2 33.8 3.6-5.2-5.4 1.0 0.0 2008 2009 2010 2011 2012-12.5-25.0-6.0-8.5-8.1-13.4 2008 2009 2010 2011 2012 - Company Investment Yield - Industry Composite Investment Yield - Company Investment Income Growth - Industry Composite Investment Income Growth * Industry Composite - Commercial Casualty Composite * Industry Composite - Commercial Casualty Composite Page 13 of 28 Print Date: September 03, 2013

Balance Sheet Strength Capitalization Capitalization: Chubb Group reported solid surplus growth over the current five-year period ending 2012 driven by favorable operating earnings, partially offset by $9.9 billion in stockholder dividends to its parent, The Chubb Corporation, over the same period. In 2011, the group's surplus declined by approximately 4%, primarily driven by $2.7 billion of stockholder dividends and reduced operating earnings due to the impact of catastrophe losses. Surplus growth over the last five years was driven by strong operating profitability and a rebound in the financial markets, partially offset by additional stockholder dividends of $1.2 billion in 2009, $2.2 billion in 2010, $2.7 billion in 2011, and $1.8 billion in 2012. While operating earnings remained strong in 2008, the group's surplus declined slightly due to other than temporary impairment losses, unrealized capital losses and stockholder dividends of $2.0 billion. Chubb Group maintains a superior level of capitalization as measured by its Best's Capital Adequacy Ratio (BCAR), reflective of its prudent investment portfolio and the economic value embedded in the loss and unearned premium reserves. In addition, capitalization is enhanced by the financial flexibility afforded by its publicly traded parent, The Chubb Corporation. The group has significant natural catastrophe exposure that is well managed through individual risk selection, monitoring of catastrophe risk concentration and use of reinsurance. Additionally, being among one of the largest commercial insurers, the group has exposure to potential terrorist-related losses. However, these exposures are actively managed and supported by the group's quality balance sheet. Year Pre-tax Operating Income Realized Capital Gains Capital Generation Analysis ($000) Income Taxes Source of Surplus Growth Unrealized Capital Gains Net Contributed Capital Other Changes Change in PHS % Change in PHS 2012 1,694,544 210,880 244,796 227,493-1,760,000 5,349 133,470 1.0 2011 1,813,458 210,721 239,101 242,662-2,700,000 62,542-609,718-4.3 2010 2,421,464 160,086 415,734 197,696-2,200,000-167,771-4,258... 2009 2,658,554-152,356 520,197 967,060-1,200,000 432,651 2,185,712 18.0 2008 2,282,894-349,629 425,804-62,083-1,999,981-186,768-741,370-5.8 5-Yr Total 10,870,915 79,702 1,845,632 1,572,829-9,859,981 146,004 963,837 1.5 06/2013 1,375,360 196,885 315,445-90,915-634,000-50,082 481,803 3.5 06/2012 1,123,871 74,143 188,425 37,095-830,000-24,105 192,579 1.4 Page 14 of 28 Print Date: September 03, 2013

Capitalization (Continued...) Year Surplus Notes Other Debt Quality of Surplus ($000) Contributed Capital Unassigned Surplus 000012 - Chubb Group of Insurance Companies Year End Policyholders Surplus Conditional Reserves Adjusted Policyholders Surplus 2012...... 3,127,789 10,713,227 13,841,016 109,015 13,950,031 2011...... 3,350,620 10,356,926 13,707,546 133,457 13,841,003 2010...... 3,302,189 11,015,075 14,317,263 117,957 14,435,220 2009...... 3,303,820 11,017,701 14,321,521 123,417 14,444,938 2008...... 3,127,789 9,008,020 12,135,809 164,624 12,300,433 06/2013...... 3,127,789 11,195,030 14,322,819 84,789 14,407,609 06/2012...... 3,127,789 10,772,336 13,900,125 108,906 14,009,031 Underwriting Leverage Underwriting Leverage: Chubb Group's gross and net underwriting leverage measures have improved over the current fiveyear period and compare favorably with the commercial casualty industry composite. This is primarily due to the sizable growth in surplus from operating earnings and modest reduction in premium volume. A.M. Best expects underwriting leverage measures will continue to compare favorably with the industry composite given expectations for sustained earnings and relatively flat premium volume over the near term. Year NPW to PHS Reserves to PHS Company Net Leverage Leverage Analysis Gross Leverage NPW to PHS Industry Composite Reserves to PHS Net Leverage Gross Leverage 2012 0.7 1.3 2.5 2.7 0.8 1.5 3.0 3.8 2011 0.7 1.3 2.4 2.6 0.8 1.5 3.0 3.9 2010 0.6 1.2 2.3 2.5 0.7 1.5 2.9 3.7 2009 0.6 1.2 2.3 2.5 0.7 1.5 2.9 3.8 2008 0.8 1.4 2.8 3.0 0.9 1.6 3.3 4.3 06/2013 0.7 1.2 2.4 XX XX XX XX XX 06/2012 0.7 1.3 2.4 XX XX XX XX XX Current BCAR: 350.6 Page 15 of 28 Print Date: September 03, 2013

Underwriting Leverage (Continued...) Net Leverage vs Industry Gross Leverage vs Industry 4.0 3.2 3.3 2.9 2.9 3.0 3.0 5.0 4.0 4.3 3.8 3.7 3.9 3.8 2.4 1.6 2.8 2.3 2.3 2.4 2.5 3.0 2.0 3.0 2.5 2.5 2.6 2.7 0.8 1.0 0.0 2008 2009 2010 2011 2012 0.0 2008 2009 2010 2011 2012 - Company Net Leverage - Industry Composite Net Leverage - Company Gross Leverage - Industry Composite Gross Leverage * Industry Composite - Commercial Casualty Composite * Industry Composite - Commercial Casualty Composite Year Ceded Reinsurance Total Ceded Reinsurance Analysis ($000) Business Retention Company Reinsurance Recoverables to PHS Ceded Reinsurance to PHS Business Retention Industry Composite Reinsurance Recoverables to PHS Ceded Reinsurance to PHS 2012 3,192,014 93.5 15.5 23.1 82.6 59.1 84.5 2011 2,795,275 94.4 13.7 20.4 81.6 59.4 84.5 2010 2,919,084 93.6 13.9 20.4 81.2 57.6 80.4 2009 3,147,794 93.0 15.3 22.0 82.6 61.2 84.8 2008 3,441,080 92.5 19.9 28.4 84.6 70.6 97.6 2012 Reinsurance Recoverables ($000) Paid & Unpaid Losses Incurred But Not Reported (IBNR) Losses Unearned Premiums Other Recoverables * Total Reinsurance Recoverables US Affiliates 2,533,855 6,129,368 2,960,690 97 11,624,010 Foreign Affiliates 7,404 29,696 19,926-30,382 26,644 US Insurers 231,291 454,629 165,938-197 851,661 Pools/Associations 259,569 29,267 124,873... 413,709 Other Non-Us 247,062 510,307 96,593-2,308 851,654 Total(ex Us Affils) 745,326 1,023,899 407,330-32,887 2,143,668 Grand Total 3,279,181 7,153,267 3,368,020-32,790 13,767,678 * Includes Commissions less Funds Withheld Page 16 of 28 Print Date: September 03, 2013

Loss Reserves Loss Reserves: The group has reported favorable reserve development in eight straight calendar years and seven out of the last nine accident years. However, the group experienced adverse development in calendar years 2002 to 2003, which was driven by asbestos and environmental (A&E) claims and professional liability classes (largely D&O and E&O), which had become increasingly volatile in accident years 1999 to 2002 with sharp increases in loss costs. Additionally, the group strengthened its professional liability lines in calendar years 2003-2005 to reflect prudent reserving practices, prior class action cases, and settlements within the investment banking and other industries. A.M. Best believes Chubb Group's reserves for its A&E exposures may be deficient. According to A.M. Best's estimates, Chubb Group ranks among the top 15 insurers in the nation with an approximately 2.0% historical market share in commercial lines that are exposed to ongoing A&E claims emergence. While Chubb Group's A&E exposures may not be fully reserved, the potential shortfall has been appreciably lowered over the past five years, and A.M. Best believes that Chubb Group's exposure to the ongoing emergence of A&E claims is manageable and is largely mitigated by the group's strong earnings power. Calendar Year Loss and ALAE Reserve Development: Calendar Year ($000) Original Loss Reserves Developed Reserves Thru 2012 Development to Original Development to PHS Development to NPE Unpaid Reserves @ 12/2012 Unpaid Reserves to Development 2012 16,771,580 16,771,580...... 179.8 16,771,580 100.0 2011 16,303,173 15,831,913-2.9-3.4 174.3 12,380,151 78.2 2010 16,037,039 14,979,066-6.6-7.4 167.7 9,676,374 64.6 2009 15,925,869 14,385,375-9.7-10.8 155.9 7,754,384 53.9 2008 16,338,593 13,866,400-15.1-20.4 145.1 6,250,330 45.1 2007 16,137,739 13,508,070-16.3-20.4 138.3 5,104,103 37.8 Accident Year Loss and ALAE Reserve Development: Accident Year ($000) Original Loss Reserves Developed Reserves Thru 2012 Development to Original Unpaid Reserves @ 12/2012 Accident Year Loss Ratio Accident Year Comb. Ratio 2012 4,391,429 4,391,429... 4,391,429 70.7 101.2 2011 4,025,904 4,052,377 0.7 2,703,777 72.5 102.9 2010 3,629,564 3,651,411 0.6 1,921,990 65.1 95.3 2009 3,819,063 3,650,863-4.4 1,504,054 59.2 89.1 2008 4,172,649 3,692,154-11.5 1,146,227 62.8 92.2 2007 4,004,620 3,406,402-14.9 856,922 53.1 82.3 Page 17 of 28 Print Date: September 03, 2013

Loss Reserves (Continued...) Year Net A&E Reserves ($000) Asbestos And Environmental Reserves Analysis Reserve Retention Company Net Incurred But Not Reported (IBNR) Mix Survival Ratio (3 Yr) Comb. Ratio Impact (1 Yr) 000012 - Chubb Group of Insurance Companies Comb. Ratio Impact (3 Yr) Survival Ratio (3 Yr) Industry Composite Comb. Ratio Impact (1 Yr) Comb. Ratio Impact (3 Yr) 2012 849,694 67.5 61.6 9.9 0.9 0.8 9.1 0.6 0.6 2011 858,513 67.9 59.0 9.3 0.8 0.8 9.1 0.5 0.6 2010 870,112 68.1 59.4 8.8 0.7 0.8 7.2 0.7 0.5 2009 889,600 66.3 58.0... 0.9...... 0.6... 2008 915,368 67.1 56.1... 0.8...... 0.3... Liquidity Liquidity: The group's unaffiliated investment portfolio, primarily fixed income securities, is well diversified and of high quality. The bond portfolio is centered on long-term municipal issues and, to a lesser extent, U.S. government-backed mortgage pools. The group's quick liquidity ratio slightly declined in recent years due to a shift in the investment portfolio away from common stocks and toward tax-exempt bonds and taxable corporate bonds. However, the group's current liquidity ratio compares favorably with its peers and is enhanced by generally strong operating cash flows. Year Quick Liquidity Current Liquidity Company Overall Liquidity Liquidity Analysis Gross Agents Balances to PHS Quick Liquidity Industry Composite Current Liquidity Overall Liquidity Gross Agents Balances to PHS 2012 21.4 118.4 155.4 12.0 21.8 108.0 144.9 10.9 2011 17.7 119.8 156.4 12.2 19.9 109.0 144.5 10.3 2010 15.1 124.3 159.8 11.1 20.9 111.2 146.2 9.0 2009 13.8 124.6 160.8 11.0 21.0 110.9 146.0 9.1 2008 12.9 118.1 150.6 13.5 18.6 104.7 140.8 11.9 06/2013 XX 115.3 157.7 12.8 XX XX XX XX 06/2012 XX 114.6 156.6 13.4 XX XX XX XX Page 18 of 28 Print Date: September 03, 2013

Liquidity (Continued...) Quick Liquidity vs Industry Current Liquidity vs Industry 25.0 20.0 18.6 21.0 20.9 19.9 21.8 21.4 150.0 120.0 118.1 124.6 124.3 119.8 118.4 15.0 10.0 12.9 13.8 15.1 17.7 90.0 60.0 104.7 110.9 111.2 109.0 108.0 5.0 30.0 0.0 2008 2009 2010 2011 2012 0.0 2008 2009 2010 2011 2012 - Company Quick Liquidity - Industry Composite Quick Liquidity - Company Current Liquidity - Industry Composite Current Liquidity * Industry Composite - Commercial Casualty Composite * Industry Composite - Commercial Casualty Composite Year Underwriting Cash Flow Operating Cash Flow Cash Flow Analysis ($000) Company Net Cash Flow Underwriting Cash Flow Operating Cash Flow Industry Composite Underwriting Cash Flow Operating Cash Flow 2012 960,417 2,004,514 546,624 111.4 122.8 98.2 110.7 2011 692,114 2,111,834-262,947 108.2 124.3 96.5 107.6 2010 1,021,699 2,132,220 88,924 112.9 124.9 96.6 108.6 2009 1,333,989 1,892,396 11,579 117.2 122.1 98.4 109.5 2008 1,270,387 2,196,506 35,587 115.6 125.4 101.2 112.6 5-Yr Total 5,278,606 10,337,470 419,767............ 06/2013 251,317 469,271-89,438 105.6 109.7 XX XX 06/2012 378,374 807,048 230,060 108.9 117.8 XX XX Investments Page 19 of 28 Print Date: September 03, 2013

Investments (Continued...) Year Class 3-6 Bonds Investment Leverage Analysis (% of PHS) Real Estate / Mortgages Other Invested Assets Company Common Stock 000012 - Chubb Group of Insurance Companies Non - Affiliated Investment Leverage Affiliated Investments Industry Composite Class 3-6 Bonds Common Stock 2012 3.7... 12.7 10.4 26.8 45.2 7.1 10.3 2011 3.3... 14.7 9.6 27.6 43.7 7.4 9.5 2010 2.8... 14.3 9.5 26.7 40.0 7.2 9.0 2009 2.5... 13.1 8.4 23.9 39.9 6.0 8.2 2008 1.8... 15.2 7.8 24.8 41.9 5.4 9.1 Investments - Bond Portfolio 2012 Distribution By Maturity Years 0-1 1-5 5-10 10-20 20+ Years Average Maturity Government 1.4 2.5 0.5 0.1... 3.1 Government Agencies & Muni. 7.8 18.5 16.4 19.9 2.5 8.3 Industrial & Misc. 3.5 16.3 9.1 0.6 0.6 4.7 Hybrid Securities............ 0.2 25.0 Total 12.8 37.2 26.1 20.6 3.3 7.1 Page 20 of 28 Print Date: September 03, 2013

Investments - Bond Portfolio (Continued...) Bond Distribution By Issuer Type 2012 2011 2010 2009 2008 Bonds (000) 24,263,159 24,234,555 24,488,508 24,555,815 23,901,203 US Government 2.5 2.1 2.1 2.1 2.3 Foreign Government 2.0 2.2 2.0 1.7 1.1 Foreign-All Other 8.7 6.6 5.3 4.7 3.7 State/Special Revenue-US 65.4 67.9 70.2 70.5 72.3 Industrial and Misc-US 21.4 21.2 20.5 21.0 20.5 2012 Bond Distribution By Issuer Type 2.5% 21.4% 2.0% 8.7% US Government Foreign Government Foreign-All Other State/Special Revenue-US Industrial and Misc-US 65.4% Bond Percent Private vs Public 2012 2011 2010 2009 2008 Private Issues 4.8 3.2 2.4 2.1 1.4 Public Issues 95.2 96.8 97.6 97.9 98.6 Bond Quality Percent 2012 2011 2010 2009 2008 Class 1 88.6 89.8 90.2 90.0 92.2 Class 2 9.3 8.3 8.2 8.5 6.9 Class 3 0.8 0.9 0.9 0.9 0.4 Class 4 1.2 0.8 0.6 0.4 0.2 Class 5 0.1 0.1 0.1 0.1 0.2 Class 6............... Page 21 of 28 Print Date: September 03, 2013

Investments - Equity Portfolio 2012 2011 2010 2009 2008 Total Stocks(000) 7,298,971 6,931,195 6,718,681 6,511,814 5,652,859 Unaffiliated Common 19.6 19.1 20.3 18.5 16.7 Affiliated Common 80.0 80.5 79.2 80.8 82.4 Unaffiliated Preferred 0.1 0.1 0.1 0.4 0.6 Affiliated Preferred 0.3 0.3 0.3 0.3 0.3 Investments - Mortgage Loans And Real Estate 2012 2011 2010 2009 2008 Mortgage Loans and Real Estate (000) 129,390 132,011 134,633 137,656 141,154 Property Occupied by Company 100.0 100.0 100.0 100.0 100.0 Investments - Other Invested Assets 2012 2011 2010 2009 2008 Other Invested Assets(000) 2,781,762 2,515,910 2,756,383 2,538,655 2,503,141 Cash 20.2 6.2 12.5 6.1 6.6 Short-Term 6.7 1.8 4.4 8.7 7.9 Schedule BA Assets 73.1 90.5 83.2 85.2 84.4 All Other... 1.5...... 1.0 Page 22 of 28 Print Date: September 03, 2013

History Chubb Group traces its origin to the partnership of Chubb & Son, an underwriting management organization, which was organized in New York, New York, in 1882. The principal property and casualty insurance company in the group is the Federal Insurance Company founded in 1901. Companion domestic property/casualty companies include Vigilant Insurance Company (formed in 1939); Great Northern Insurance Company (acquired in 1960); Pacific Indemnity Company and its two subsidiaries (acquired in 1967); Chubb Lloyds Insurance Company of Texas (formed in 1973); Chubb Custom Insurance Company (formed in 1980); Chubb Insurance Company of New Jersey (formed in 1982); Chubb National Insurance Company (formed in 1993); Chubb Indemnity Insurance Company (acquired in 1994), and Executive Risk Indemnity Inc. and Executive Risk Specialty Insurance Company (each acquired in 1999). Chubb Group includes the following foreign insurance affiliates and subsidiaries: Chubb do Brasil Companhia de Seguros; Chubb Insurance Company of Australia, Limited; Chubb Insurance Company of Canada; Chubb Insurance Company of Europe SE; Chubb Atlantic Indemnity, Ltd.; Chubb Insurance Company (Thailand), Ltd.; Chubb de Mexico Compania de Seguros, S.A. de S.V.; Chubb de Mexico, Compania Afianzadora, S.A. de S.V.; Chubb de Colombia Compania de Seguros, S.A.; Chubb de Chile Compania de Seguros Generales, S.A.; Chubb Argentina de Seguros, S.A.; and PT Asuransi Chubb Indonesia. Management The Chubb Corporation is a publicly owned holding company, with approximately 10,100 employees worldwide and 8,700 stockholders of record, that trades on the NYSE under the symbol CB. John D. Finnegan is chairman, president and chief executive officer of The Chubb Corporation. James M. Zimmerman is the lead director of the board of directors. Directors of The Chubb Corporation are as follows: Internal Director: John D. Finnegan (chairman). External Directors: Zoe Baird, Sheila P. Burke, James I. Cash, Jr., Lawrence W. Kellner, Martin G. McGuinn, Lawrence M. Small, Jess Soderberg, Daniel E. Somers, William C. Weldon, James M. Zimmerman, Alfred W. Zollar. Reinsurance Effective April 1, 2013, the group's traditional property catastrophe reinsurance treaty provides coverage for United States and Canadian exposures of approximately 34% of losses (net of recoveries from other available reinsurance) between $500 million and $900 million, and approximately 72% of losses (net of recoveries) between $900 million and $1.65 billion. For certain exposures in the northeastern part of the United States, the combination of the traditional treaty, supplemental catastrophe reinsurance and catastrophe bond arrangements provides additional coverage of approximately 65% of losses (net of recoveries from other available reinsurance) between $1.65 billion and $3.65 billion. The company also has a $150 million catastrophe bond arrangement that provides coverage for homeowners-related hurricane and severe thunderstorm losses in eight states along the southern U.S. coastline. In addition, for exposures in Florida, the Florida Hurricane Catastrophe Fund provides coverage of 90% of homeowners-related losses between approximately $165 million and $610 million. The primary property catastrophe treaty for exposures outside the United States, including Canada, provides coverage of approximately 75% of losses (net of recoveries from other available reinsurance) between $100 million and $350 million. For Australian and Canadian exposures, additional reinsurance provides coverage of 80% of losses between $350 million and $475 million. Page 23 of 28 Print Date: September 03, 2013

Consolidated Balance Sheet ($000) Admitted Assets 12/31/2012 12/31/2011 2012 % 2011 % Bonds 24,263,159 24,234,555 62.0 63.1 Preferred Stock 9,277 9,511...... Common Stock 1,432,873 1,320,560 3.7 3.4 Cash & Short-Term Invest 748,050 201,426 1.9 0.5 Real estate, investment............ Derivatives............ Other Non-Affil Inv Asset 1,763,546 2,052,566 4.5 5.3 Investments in Affiliates 6,126,987 5,863,041 15.7 15.3 Real Estate, Offices 129,390 132,011 0.3 0.3 Total Invested Assets 34,473,281 33,813,671 88.1 88.1 Premium Balances 2,616,612 2,575,909 6.7 6.7 Accrued Interest 298,879 307,396 0.8 0.8 Life department............ All Other Assets 1,736,573 1,683,208 4.4 4.4 Total Assets 39,125,345 38,380,184 100.0 100.0 Liabilities & Surplus 12/31/2012 12/31/2011 2012 % 2011 % Loss & LAE Reserves 17,991,306 17,493,074 46.0 45.6 Unearned Premiums 4,870,696 4,840,464 12.4 12.6 Conditional Reserve Funds 109,015 133,457 0.3 0.3 Derivatives............ Life department............ All Other Liabilities 2,313,312 2,205,643 5.9 5.7 Total Liabilities 25,284,329 24,672,638 64.6 64.3 Surplus notes............ Capital & Assigned Surplus 3,127,789 3,350,620 8.0 8.7 Unassigned Surplus 10,713,227 10,356,926 27.4 27.0 Total Policyholders' Surplus 13,841,016 13,707,546 35.4 35.7 Total Liabilities & Surplus 39,125,345 38,380,184 100.0 100.0 Page 24 of 28 Print Date: September 03, 2013

Interim Balance Sheet ($000) Admitted Assets 03/31/2013 06/30/2013 Bonds 24,684,116 24,582,478 Preferred Stock 28,505 28,505 Common Stock 7,309,890 7,231,864 Cash & Short-Term Invest 849,007 658,613 Other Investments 2,087,489 2,098,206 Total Invested Assets 34,959,007 34,599,666 Premium Balances 2,426,940 2,823,788 Accrued Interest 304,039 302,261 Reinsurance Funds 129,792 161,529 All Other Assets 1,562,242 1,567,997 Total Assets 39,382,020 39,455,241 Liabilities & Surplus 03/31/2013 06/30/2013 Loss & LAE Reserves 17,658,085 17,590,745 Unearned Premiums 4,787,865 4,937,367 Conditional Reserve Funds 108,833 107,730 All Other Liabilities 2,377,875 2,496,580 Total Liabilities 24,932,658 25,132,422 Capital & Assigned Surp 3,127,789 3,127,789 Unassigned Surplus 11,321,574 11,195,030 Total Policyholders' Surplus 14,449,362 14,322,819 Total Liabilities & Surplus 39,382,020 39,455,241 Page 25 of 28 Print Date: September 03, 2013

Consolidated Summary Of 2012 Operations ($000) Statement of Income 12/31/2012 Funds Provided from Operations 12/31/2012 Premiums earned 9,327,395 Premiums collected 9,383,048 Losses incurred 4,798,895 Benefit & loss-related pmts 4,335,085 LAE incurred 1,292,913 Undwr expenses incurred 2,826,796 LAE & undwr expenses paid 4,061,831 Other expenses incurred 478 Other income / expense... Dividends to policyholders 29,707 Dividends to policyholders 25,715 Net underwriting income 378,605 Underwriting cash flow 960,417 Net transfer... Net investment income 1,306,932 Investment income 1,431,700 Other income/expense 9,007 Other income/expense -8,241 Pre-tax operating income 1,694,544 Pre-tax cash operations 2,383,876 Realized capital gains 210,880 Income taxes incurred 244,796 Income taxes pd (recov) 379,362 Net income 1,660,628 Net oper cash flow 2,004,514 Page 26 of 28 Print Date: September 03, 2013

Interim Income Statement ($000) Period Ended 06/30/2013 Period Ended 06/30/2012 Increase / Decrease Premiums earned 4,765,886 4,674,380 91,507 Losses incurred 1,840,049 2,151,032-310,983 LAE incurred 673,553 676,734-3,181 Undwr expenses incurred 1,487,879 1,440,397 47,483 Other expenses incurred 379 394-15 Dividends to policyholders 18,206 15,651 2,555 Net underwriting income 745,819 390,171 355,648 Net investment income 623,227 725,318-102,091 Other income/expense 6,314 8,382-2,068 Pre-tax operating income 1,375,360 1,123,871 251,490 Realized capital gains 196,885 74,143 122,742 Income taxes incurred 315,445 188,425 127,021 Net income 1,256,800 1,009,590 247,211 Interim Cash Flow ($000) Period Ended 06/30/2013 Period Ended 06/30/2012 Increase / Decrease Premiums collected 4,734,750 4,608,488 126,262 Benefit & loss-related pmts 2,290,055 2,065,598 224,456 LAE & undwr expenses paid 2,176,782 2,150,739 26,043 Dividends to policyholders 16,597 13,777 2,820 Underwriting cash flow 251,317 378,374-127,057 Net transfer......... Investment income 680,472 781,559-101,088 Other income/expense -109,278-45,876-63,402 Pre-tax cash operations 822,510 1,114,058-291,547 Income taxes pd (recov) 353,240 307,010 46,230 Net oper cash flow 469,271 807,048-337,777 Page 27 of 28 Print Date: September 03, 2013

A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contracts and do not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. A Financial Strength Rating is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. A Best's Debt/Issuer Credit Rating is an opinion regarding the relative future credit risk of an entity, a credit commitment or a debt or debt-like security. Credit risk is the risk that an entity may not meet its contractual, financial obligations as they come due. These credit ratings do not address any other risk, including but not limited to liquidity risk, market value risk or price volatility of rated securities. The rating is not a recommendation to buy, sell or hold any securities, insurance policies, contracts or any other financial obligations, nor does it address the suitability of any particular financial obligation for a specific purpose or purchaser. In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independently verify the accuracy or reliability of the information. Any and all ratings, opinions and information contained herein are provided "as is," without any express or implied warranty. Visit http://www.ambest.com/ratings/notice.asp for additional information or http://www.ambest.com/terms.html for details on the Terms of Use. Copyright 2013 A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, distributed, or stored in a database or retrieval system, or transmitted in any form or by any means without the prior written permission of the A.M. Best Company. While the data in this report was obtained from sources believed to be reliable, its accuracy is not guaranteed. Page 28 of 28 Print Date: September 03, 2013