<PAGE> 1
THIS DOCUMENT IS A COPY OF THE FORM 10-K FILED ON APRIL 3, 1995 PURSUANT TO A
RULE 201 TEMPORARY HARDSHIP EXEMPTION.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Fiscal Year Ended
Commission File December 31, 1994
No. 1-7361
AMERICAN FINANCIAL CORPORATION
Incorporated under IRS Employer I.D.
the Laws of Ohio No. 31-0624874
One East Fourth Street, Cincinnati, Ohio 45202
(513) 579-2121
Securities Registered Pursuant to Section 12(b) of the Act:
<TABLE>
<CAPTION>
Name of Each Exchange
Title of Each Class on which Registered
------------------- -------------------
<S> <C>
Nonvoting Cumulative Preferred Stock:
Series E, F and G Cincinnati and Pacific
9-1/2% Debentures due April 22, 1999 Cincinnati and Pacific
9-3/4% Debentures due April 20, 2004 Cincinnati and Pacific
10% Debentures due October 20, 1999 Cincinnati and Pacific
10% Debentures Series A due October 20, 1999 Cincinnati and Pacific
12% Debentures due September 3, 1999 Cincinnati and Pacific
12% Debentures Series A due September 3, 1999 Cincinnati and Pacific
12% Debentures Series B due September 3, 1999 Cincinnati and Pacific
12-1/4% Debentures due September 15, 2003 Cincinnati and Pacific
</TABLE>
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: None
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, 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 need not be contained,
to the best of 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. [X]
As of March 1, 1995, there were 18,971,217 shares of Common Stock
outstanding, all of which were privately owned.
Documents Incorporated by Reference: None
<PAGE> 2
AMERICAN FINANCIAL CORPORATION
INDEX TO ANNUAL REPORT
ON FORM 10-K
<TABLE>
<CAPTION>
Part I Page
----
<S> <C>
Item 1 - Business:
Introduction 1
Great American Insurance Group 3
American Annuity Group and Great American
Life Insurance Company 14
American Premier 17
Chiquita Brands International 21
Citicasters 23
Other Companies 25
Investment Portfolio 26
Seasonality 28
Competition 28
Regulation 28
Item 2 - Properties 31
Item 3 - Legal Proceedings 32
Item 4 - Submission of Matters to a Vote of Security Holders *
Part II
Item 5 - Market for Registrant's Common Equity and Related
Stockholder Matters 33
Item 6 - Selected Financial Data 33
Item 7 - Management's Discussion and Analysis of Financial
Condition and Results of Operations:
General 34
1995 Merger 34
Liquidity and Capital Resources 35
Results of Operations 40
Item 8 - Financial Statements and Supplementary Data 45
Item 9 - Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure *
Part III
Item 10 - Directors and Executive Officers of the Registrant 46
Item 11 - Executive Compensation 47
Item 12 - Security Ownership of Certain Beneficial Owners
and Management 47
Item 13 - Certain Relationships and Related Transactions 47
Part IV
Item 14 - Exhibits, Financial Statement Schedules and
Reports on Form 8-K S-1
</TABLE>
* The response to this Item is "none".
<PAGE> 3
PART I
ITEM 1
Business
--------
Introduction
- ------------
American Financial Corporation ("AFC") was incorporated as an Ohio
Corporation in 1955. Its address is One East Fourth Street, Cincinnati, Ohio,
45202; its phone number is (513) 579-2121. At December 31, 1994, Carl H.
Lindner and certain members of the Lindner family owned all of the outstanding
Common Stock of AFC (See "1995 merger" below).
AFC is a holding company operating through wholly-owned and
majority-owned subsidiaries and other companies in which it holds significant
minority ownership interests. These companies operate in a variety of
financial businesses, including property and casualty insurance, annuities, and
portfolio investing. In non-financial areas, these companies have substantial
operations in the food products industry and radio and television station
operations.
1995 Merger
On March 23, 1995, shareholders of American Premier Underwriters, Inc.
("American Premier") approved the merger of AFC with a newly formed subsidiary
of American Premier Group, Inc. ("New American Premier"), another new company
formed to own 100% of the common stock of both AFC and American Premier.
Consummation of the merger is pending receipt of a ruling from the Internal
Revenue Service which is expected at the end of March or early April. In the
transaction, Carl H. Lindner and members of his family, who own 100% of the
common stock of AFC, will exchange their AFC Common Stock for approximately 55%
of New American Premier voting common stock. Shareholders of American Premier,
including AFC and its subsidiaries, will receive shares of New American Premier
stock on a one-for-one basis. As a result of the merger, AFC and its
subsidiaries will own 18.7 million shares of the common stock of New American
Premier which, as long as AFC is owned by New American Premier, generally will
not be eligible to vote.
AFC will continue to be a separate SEC reporting company with publicly
traded debentures and preferred stock. Holders of AFC Series F and G Preferred
Stock will be granted voting rights equal to approximately 21% of the total
voting power of AFC shareholders immediately prior to the merger. AFC and New
American Premier have stated that following completion of the transaction they
will likely redeem substantial amounts of the debt of American Premier, AFC and
AFC's wholly-owned subsidiaries.
1
<PAGE> 4
General
Generally, companies have been included in AFC's consolidated financial
statements when AFC's ownership of voting securities has exceeded 50%; for
investments below that level but above 20%, AFC has accounted for the
investments as investees. (See Note F to AFC's financial statements). The
following table shows AFC's percentage ownership of voting securities of its
significant affiliates over the past several years:
<TABLE>
<CAPTION>
Ownership at December 31,
-------------------------------------
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Great American Insurance Group 100% 100% 100% 100% 100%
Great American Life Insurance Company (a) (a) (a) 100% 100%
American Annuity Group 80% 80% 82% 39% 32%
American Financial Enterprises 83% 83% 83% 82% 82%
American Premier Underwriters 42% 41% 51% 50% 42%
Chiquita Brands International 46% 46% 46% 48% 54%
Citicasters (formerly Great American 37% 20% 40% 40% 65%
Communications "GACC")
General Cable (b) 45% 45% - -
Spelling Entertainment Group - (c) 48% 53% 53%
</TABLE>
(a) Sold to American Annuity Group in December 1992.
(b) Sold in June 1994. 100%-owned by American Premier prior to spin-off in
July 1992. Ownership percentage excludes shares held by American
Premier for future distribution aggregating 12%.
(c) Sold in March 1993.
The following summarizes the more significant changes in ownership
percentages shown in the above table.
American Annuity Group Between 1990 and 1992, American Annuity disposed
of its manufacturing operations and on December 31, 1992, purchased Great
American Life Insurance Company ("GALIC") from Great American Insurance Company
("GAI"). In connection with the acquisition, GAI purchased 5.1 million shares
of American Annuity's common stock pursuant to a cash tender offer and 17.1
million additional shares directly from American Annuity.
American Premier Underwriters In 1991, American Premier repurchased and
retired approximately 6 million shares of its common stock. During 1991, AFC
purchased an additional 1.6 million shares of American Premier common. In
1993, American Financial Enterprises, Inc. ("AFEI") sold 4.5 million shares of
American Premier common stock in a secondary public offering.
Chiquita Brands International In 1991, Chiquita sold 5 million shares
of its stock in a public offering.
Citicasters In 1991, GACC issued 21.6 million common shares in
connection with debt restructurings. In December 1993, GACC completed a joint
prepackaged plan of reorganization. Under the terms of the restructuring,
GACC's outstanding stock was reduced in a 1-for-300 reverse split. In the
restructuring, AFC's previous holdings of GACC stock and debt were exchanged
for 20% of the new common stock. In June 1994, AFEI purchased 1.2 million
shares of Citicasters common stock. In the second half of 1994, Citicasters
repurchased and retired approximately 2.4 million shares of its common stock.
2
<PAGE> 5
General Cable In 1992, American Premier distributed to its shareholders
approximately 88% of the stock of General Cable, which was formed to own
certain of American Premier's manufacturing businesses. AFC and its
subsidiaries received approximately 45% of General Cable in the spin-off. In
1994, an unaffiliated company acquired all of the common stock of General Cable
including AFC's and the 12% which had been retained by American Premier.
Spelling Entertainment Group During 1992, The Charter Company issued
5.8 million shares of its common stock in a merger with Spelling Entertainment
Inc., resulting in AFC's ownership of Charter being decreased below 50%.
Subsequent to the merger, Charter changed its name to Spelling Entertainment
Group Inc. ("Spelling") to reflect the nature of its business. In 1993, AFC
sold its common stock investment in Spelling to Blockbuster Entertainment
Corporation.
_______________________________________________________
The following discussion concerning AFC's businesses is organized along
the lines of the major company investments as shown in the table above.
Reference to the table and to AFC's consolidated financial statements is
recommended for a better understanding of this section and Item 6 - "Selected
Financial Data".
Great American Insurance Group
- -------------------------------
AFC's primary insurance business is multi-line property and casualty
insurance, headed by Great American Insurance Company ("GAI"). Hereafter, GAI
and its property and casualty insurance subsidiaries will be referred to
collectively as "Great American". They employ approximately 3,500 persons.
According to the most recent ranking published in "Best's Review", Great
American was the 43rd largest among all property and casualty insurance groups
operating in the United States on the basis of total net premiums written in
1993. GAI is rated "A" (Excellent) by A.M. Best Company, Inc. This rating is
given to companies that "have a strong ability to meet their obligations to
policyholders over a long period of time".
On December 31, 1990, GAI sold its non-standard automobile insurance
group ("NSA group") to American Premier. The NSA group accounted for
approximately one-fourth of Great American's earned premiums and had a 1990
statutory combined ratio of 95.5%. Data in this section includes the NSA Group
for the period it was owned by GAI.
Unless otherwise indicated, all tables concerning insurance are
presented on the statutory basis prescribed by the National Association of
Insurance Commis-sioners and each insurer's domiciliary state. In general,
this method results in lower capital surplus and net earnings than result from
application of generally accepted accounting principles ("GAAP") which are
utilized in preparing the financial statements found elsewhere herein. These
differences include charging policy acquisition costs to expense as incurred
rather than spreading the costs over the periods covered by the policies,
netting of reinsurance recoverables and prepaid reinsurance premiums against
the corresponding liability, requiring additional loss reserves, establishing
valuation reserves for investments held by life insurance subsidiaries and
charging to surplus certain assets, such as furniture and fixtures and agents'
balances over 90 days old.
3
<PAGE> 6
The following table shows (in millions) the performance of Great
American in various categories. While financial data is reported on a
statutory basis for insurance regulatory purposes, it is reported in accordance
with GAAP for shareholder and other investment purposes.
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Statutory Basis
- ---------------
Premiums Earned $1,376 $1,243 $1,220 $1,214 $1,635
Admitted Assets 4,139 3,884 3,760 3,893 3,644
Unearned Premiums 668 562 517 514 521
Loss and Loss Adjustment
Expense Reserves 2,206 2,144 2,151 2,194 2,200
Capital and Surplus 943 887 851 840 688
GAAP Basis
- ----------
Premiums Earned $1,379 $1,241 $1,220 $1,197 $1,619
Total Assets 5,819(*) 5,385(*) 5,299(*) 4,518 4,438
Unearned Premiums 825(*) 675(*) 595(*) 506 512
Loss and Loss Adjustment
Expense Reserves 2,917(*) 2,724(*) 2,670(*) 2,129 2,137
Shareholder's Equity 1,548 1,464 1,439 1,261 1,270
</TABLE>
(*) Grossed up for reinsurance recoverables in accordance with a change in
accounting rules.
Underwriting
The profitability of a property and casualty insurance company depends
on two main areas of operation: underwriting of insurance and investment of
assets. Underwriting profitability is measured by the combined ratio which is
a sum of the ratio of underwriting expenses to premiums written and the ratio
of losses and loss adjustment expenses to premiums earned. When the combined
ratio is under 100%, underwriting results are generally considered profitable;
when the ratio is over 100%, underwriting results are generally considered
unprofitable. The combined ratio does not reflect investment income, other
income or federal income taxes. The following table shows certain underwriting
data of Great American (dollars in millions). Insurance ratios computed on a
GAAP basis are not significantly different from the statutory ratios presented
below.
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Premiums Written $1,482 $1,287 $1,224 $1,202 $1,712
Premiums Earned 1,376 1,243 1,220 1,214 1,635
Loss Ratio 58.1% 58.7% 59.3% 57.9% 62.4%
Loss Adjustment Expense Ratio 14.1 12.1 11.9 12.1 11.1
Underwriting Expense Ratio 30.8 33.1 33.3 32.4 30.4
Combined Ratio 103.0 103.9 104.5 102.4 103.9
Combined Ratio (after
policyholders' dividends):
Great American 103.6 103.9 105.0 103.2 104.8
Industry (stock
companies)(*) 109.4 107.9 119.1 109.5 109.4
</TABLE>
(*) Source: "Best's Aggregates & Averages - Property/Casualty" (1994
Edition); 1994 is an estimate (industry wide) from "Best
Week Property/Casualty Supplement" (1/11/95 Edition)
4
<PAGE> 7
As shown in the table above, Great American's underwriting results,
although not profitable, have been significantly better than the industry's.
Great American's results reflect an emphasis on writing commercial lines
coverages of specialized niche products where company personnel are experts in
particular lines of business. During 1994, approximately half of Great
American's premiums were written in these specialized niche product areas.
Certain natural disasters (hurricanes, tornados, floods, forest fires,
etc.) and other incidents of major loss (explosions, civil disorder, fires,
etc.) are classified as catastrophes by industry associations. Losses from
these incidents are usually tracked separately from other business of insurers
because of their sizable effects on overall operations. Major catastrophes in
recent years included the Northridge, California earthquake and winter storms
in 1994; flooding in the Midwest in 1993; Hurricanes Andrew and Iniki, Chicago
flooding, and Los Angeles civil disorder in 1992 and Oakland fires in 1991.
Total net losses to AFC's insurance operations from catastrophes were $51
million in 1994; $26 million in 1993; $42 million in 1992; $22 million in 1991;
and $13 million in 1990. These amounts are included in the tables herein.
Insurance regulations in various states require prior approval of
premium rate increases on approximately two-thirds of Great American's personal
lines business which represents about one-fourth of Great American's total
business. The commercial business generally does not require prior approval,
although a number of states impose some degree of review of commercial rates.
5
<PAGE> 8
Information for the major classes of business written by Great American
follows (dollars in millions). Losses incurred and loss ratios exclude loss
adjustment expenses. Combined ratios are stated before policyholders'
dividends.
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Auto Liability and Physical
Damage (A)
Premiums Written $453 $424 $397 $364 $820
Premiums Earned 436 403 389 362 785
Losses Incurred 263 249 259 187 504
Loss Ratio 60.3% 61.8% 66.6% 51.5% 64.1%
Combined Ratio 104.2% 103.4% 107.7% 92.2% 102.5%
Property and Multiple
Peril (B)
Premiums Written $407 $349 $329 $368 $387
Premiums Earned 381 337 347 378 374
Losses Incurred 240 189 228 235 203
Loss Ratio 63.0% 56.0% 65.6% 62.3% 54.3%
Combined Ratio 111.4% 103.9% 117.3% 110.6% 102.4%
Workers' Compensation and
Other Liability (C)
Premiums Written $424 $343 $349 $349 $390
Premiums Earned 373 338 349 357 369
Losses Incurred 191 216 173 235 267
Loss Ratio 51.2% 64.1% 49.6% 65.7% 72.6%
Combined Ratio 90.8% 108.5% 92.7% 109.9% 114.8%
All Other (D)
Premiums Written $198 $171 $149 $121 $115
Premiums Earned 186 165 135 117 107
Losses Incurred 105 75 64 46 47
Loss Ratio 56.4% 45.5% 47.6% 38.8% 43.9%
Combined Ratio 108.6% 95.4% 93.1% 82.0% 87.8%
<FN>
(A) Includes related bodily injury and property damage. -- Unusually low
Combined Ratio in 1991 generally reflects the effects of a program to
reduce exposure to certain commercial "bad risk" groups while retaining
previous pricing, followed by reductions in pricing in later years.
(B) Includes extended coverage, tornado, windstorm, cyclone, hail on growing
crops, personal multiple peril, riot and civil commotion, vandalism and
malicious mischief, and sprinkler leakage and water damage. -- Unusually
high Combined Ratio in 1992 generally reflects the effects of Hurricanes
Andrew and Iniki.
(C) Includes other bodily injury, property damage, directors and officers'
liability and collateral protection. -- Unusually low Combined Ratios in
1992 and 1994 generally reflect reductions in redundant reserves on
certain matured lines of commercial liability coverages written in the
late 1980s and general improvement in 1994 in workers' compensation due
to industry-wide reforms, improved rate structures, and favorable trends
in medical care inflation and incidents of fraud, along with emphasis on
specific programs (i.e. Drug- Free Workplace) and a focus on profitable
pockets of business and classes.
(D) Includes accident and health, credit, burglary, glass, earthquake,
aircraft physical damage and boiler and machinery. -- Unusually low
Combined Ratio in 1991 generally reflects especially good operations for
the Inland Marine and
</TABLE>
6
<PAGE> 9
Surety operations. Unusually high Combined Ratio in 1994 generally
reflects the effects of the Northridge, California earthquake and poor
results from an industrial risk pool arrangement.
The following table shows the ratio of net premiums written to
policy-holders' surplus for Great American and the industry on a consolidated
basis. Increases in this ratio beyond the informal industry standard of 3:1
may cause insurance commissioners to require companies to reduce underwriting
activities or obtain additional capitalization.
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Great American 1.57 1.45 1.44 1.43 2.49
Industry (stock companies) (*) 1.35 1.22 1.29 1.33 1.53
</TABLE>
(*) Source: "Best's Aggregates & Averages - Property/Casualty"; 1994 is
an estimate (industry wide) from "Best Week
Property/Casualty Supplement" (1/11/95 Edition)
Great American is represented by several thousand agents and brokers who
are paid on a commission basis; most also represent other insurance companies.
The geographical distribution of direct premiums written in 1994 compared to
1990, before giving effect to reinsurance, was as follows (dollars in
millions):
<TABLE>
<CAPTION>
1994 1990
------------------ ------------------
Location Premiums % Premiums %
-------- -------- ------ -------- ------
<S> <C> <C> <C> <C>
California $ 250 12.7% $ 198 10.6%
Texas 242 12.3 59 3.2
New York 169 8.6 107 5.8
Connecticut 124 6.3 127 6.8
Pennsylvania 108 5.5 45 2.4
New Jersey 102 5.2 78 4.2
North Carolina 94 4.8 104 5.6
Massachusetts 68 3.5 40 2.2
Florida 68 3.5 123 6.6
Illinois 62 3.2 67 3.6
Michigan 59 3.0 67 3.6
Ohio 55 2.8 71 3.8
Oklahoma 53 2.7 89 4.8
Maryland 40 2.1 37 2.0
Washington * * 40 2.2
Georgia * * 103 5.5
Virginia * * 49 2.6
Tennessee * * 45 2.4
Alabama * * 41 2.2
Indiana * * 39 2.1
All others, including foreign,
each less than 2% 468 23.8 331 17.8
------ ----- ------ -----
$1,962 100.0% $1,860 100.0%
====== ===== ====== =====
</TABLE>
(*) Less than 2%.
7
<PAGE> 10
In August 1994, the California Supreme Court upheld Proposition 103, an
insurance reform measure passed by California voters in 1988. In addition to
increasing rate regulation, Proposition 103 gives the California insurance
commissioner power to mandate rate rollbacks for most lines of property and
casualty insurance. By its terms, Proposition 103 does not affect workers'
compensation insurance. On March 22, 1995, Great American signed a settlement
agreement with the California Department of Insurance setting its refund
obligation at $19 million. The agreement is expected to become final in April,
following a required waiting period.
Loss and Loss Adjustment Expense Reserves
The consolidated financial statements include the estimated liability for
unpaid losses and loss adjustment expenses ("LAE") of Great American. This
liability represents estimates of the ultimate net cost of all unpaid losses
and LAE and is determined by using case-basis evaluations and statistical
projections. These estimates are subject to the effects of claim amounts and
frequency and are continually reviewed and adjusted as additional information
becomes known. In accordance with industry practices, such adjustments are
reflected in current year operations.
Future costs of claims are projected based on historical trends adjusted
for changes in underwriting standards, policy provisions, the anticipated
effect of inflation and general economic trends. These anticipated trends are
monitored based on actual development and are reflected in estimates of
ultimate claim costs.
The liability for losses and LAE for certain long-term scheduled payments
under workers' compensation, auto liability and other liability insurance has
been discounted at rates ranging from 4% to 8%. As a result, the total
liability for losses and LAE at December 31, 1994, 1993 and 1992 has been
reduced by $71 million, $56 million and $51 million, respectively.
The limits on risks retained vary by type of policy and risks in excess
of certain retention limits are reinsured. Each insurance company within the
group establishes its own retention limits based on the individual company's
surplus.
Generally, reserves for reinsurance and involuntary pools and
associations are reflected in Great American's results at the amounts reported
by those entities.
8
<PAGE> 11
The following table provides an analysis of changes in the liability for
losses and LAE, net of reinsurance (and grossed up), over the past three years
on a GAAP basis (in millions):
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Balance at beginning of period $2,113 $2,123 $2,129
Provision for losses and loss adjustment
expenses occurring in the current year 1,027 879 882
Net decrease in provision for claims
occurring in prior years (40) (3) (14)
------ ------ ------
987 876 868
Payments for losses and loss adjustment
expenses occurring during:
Current year (381) (320) (313)
Prior years (532) (566) (561)
------ ------ ------
(913) (886) (874)
------ ------ ------
Balance at end of period $2,187 $2,113 $2,123
====== ====== ======
Add back reinsurance recoverables 730 611 547
------ ------ ------
Unpaid losses and LAE included in
Balance Sheet, gross of reinsurance $2,917 $2,724 $2,670
====== ====== ======
</TABLE>
Major components of the net decrease in the provision for claims
occurring in prior years as reflected in the table above were as follows
(dollars in millions):
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Adjustment for reserve data reported
by reinsureds and involuntary
pools and associations $28 $45 $32
Adjustment for claim payments and antici-
pated claim payments in amounts less
than previously anticipated (73) (53) (47)
Amortization of discount on certain
long-term reserves 5 5 1
--- --- ---
Net decrease ($40) ($ 3) ($14)
=== === ===
Net decrease as a percent of
prior year's liability (1.9%) (0.1%) (0.7%)
</TABLE>
9
<PAGE> 12
The following table presents the development of the liability for losses
and LAE, net of reinsurance, on a GAAP basis for the last ten years. The top
line of the table shows the estimated liability (in millions) for unpaid losses
and LAE recorded at the balance sheet date for the indicated years. The second
line shows the re-estimated liability as of December 31, 1994. The remainder
of the table presents development as percentages of the estimated liability.
The development results from additional information and experience in
subsequent years. The middle line shows a cumulative deficiency (redundancy)
which represents the aggregate percentage increase (decrease) in the liability
initially estimated. The lower portion of the table indicates the cumulative
amounts paid as of successive periods as a percentage of the original loss
reserve liability.
<TABLE>
<CAPTION>
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITY FOR UNPAID LOSSES
AND LOSS ADJUSTMENT EXPENSES:
- -----------------------------
AS ORIGINALLY ESTIMATED $1,302 $1,605 $1,843 $2,024 $2,209 $2,246 $2,137 $2,129 $2,123 $2,113 $2,187
AS RE-ESTIMATED AT
DECEMBER 31, 1994 2,101 2,379 2,250 2,214 2,275 2,271 2,120 2,086 2,085 2,073 N/A
LIABILITY RE-ESTIMATED AS OF:
- -----------------------------
ONE YEAR LATER . . . . 108.2% 109.2% 102.7% 102.5% 99.8% 100.4% 98.6% 99.3% 99.9% 98.1%
TWO YEARS LATER . . . . 120.5% 116.7% 107.3% 103.6% 100.0% 99.3% 97.7% 98.7% 98.2%
THREE YEARS LATER . . . 126.2% 123.4% 109.7% 103.1% 99.7% 98.4% 97.4% 98.0%
FOUR YEARS LATER . . . 132.8% 129.9% 110.8% 102.5% 98.7% 98.2% 99.2%
FIVE YEARS LATER . . . 138.8% 132.3% 111.8% 102.6% 99.1% 101.1%
SIX YEARS LATER . . . . 142.2% 134.8% 112.7% 103.5% 103.0%
SEVEN YEARS LATER . . . 145.5% 136.6% 115.3% 109.4%
EIGHT YEARS LATER . . . 148.1% 140.7% 122.1%
NINE YEARS LATER . . . 153.0% 148.2%
TEN YEARS LATER . . . . 161.4%
CUMULATIVE DEFICIENCY
(REDUNDANCY) 61.4% 48.2% 22.1% 9.4% 3.0% 1.1% (.8%) (2.0%) (1.8%) (1.9%) N/A
====== ====== ====== ====== ===== ===== ===== ===== ===== ===== =====
CUMULATIVE PAID AS OF:
- ----------------------
ONE YEAR LATER . . . . 44.8% 45.5% 33.0% 29.2% 29.4% 32.3% 26.1% 26.4% 26.7% 25.2%
TWO YEARS LATER . . . . 68.3% 69.0% 52.5% 49.0% 48.6% 48.2% 43.2% 43.0% 43.7%
THREE YEARS LATER . . . 87.0% 84.6% 67.7% 63.5% 59.8% 59.2% 55.3% 55.4%
FOUR YEARS LATER . . . 99.6% 96.6% 79.3% 72.2% 67.9% 67.6% 64.8%
FIVE YEARS LATER . . . 109.3% 106.4% 86.4% 78.5% 74.0% 74.3%
SIX YEARS LATER . . . . 117.7% 112.4% 91.9% 83.6% 79.5%
SEVEN YEARS LATER . . . 123.3% 117.3% 96.1% 87.7%
EIGHT YEARS LATER . . . 127.9% 121.3% 100.0%
NINE YEARS LATER . . . 131.8% 125.2%
TEN YEARS LATER . . . . 135.9%
</TABLE>
This table does not present accident or policy year development data.
Further-more, in evaluating the re-estimated liability and cumulative
deficiency (redundancy), it should be noted that each percentage includes the
effects of changes in amounts for prior periods. For example, a deficiency
related to losses settled in 1994, but incurred in 1984, would be included in
the re-estimated liability and cumulative deficiency percentage for each of the
years 1984 through 1993. Conditions and trends that have affected development
of the liability in the past may not necessarily exist in the future.
Accordingly, it may not be appropriate to extrapolate future redundancies or
deficiencies based on this table.
The adverse development in earlier years in the table above was
partially caused by the effect of higher than projected inflation on medical,
hospitalization, material, repair and replacement costs. Additionally, changes
in the legal environment have influenced the development patterns over the past
ten years. Two significant changes in the early to mid-1980s were the trend
towards an adverse litigious climate and the change from contributory to
10
<PAGE> 13
The adverse litigious climate is evidenced by an increase in lawsuits
and damage awards, changes in judicial interpretation of legal liability and of
the scope of policy coverage, and a lengthening of time it takes to settle
cases. In addition, a trend has developed in the manner and timeliness of
first claim notices. Historically, the first notification of claim came
directly from the claimant; in recent years, however, there has been a gradual
increase in the number of notifications in the form of direct legal action.
Not only has this notification been less timely, it has been more adversarial
in nature.
The change in rules of negligence governing tort claims has also
influenced the loss development trend. During the early to mid-1980s, most
states changed from contributory to comparative negligence rules. When
contributory negligence rules control, a plaintiff seeking damages is barred
from recovering damages for a loss if it can be demonstrated that the
plaintiff's own negligence contributed in any way to the cause of the injury.
When comparative negligence rules control, a plaintiff's negligence is
no longer a bar to recovery. Instead, the degree of plaintiff's negligence is
compared to the negligence of any other party. Generally, if the plaintiff's
negligence is 50% or less of the cause of the injury, the plaintiff can recover
damages, but in an amount reduced by the portion of damage attributable to the
plaintiff's own negligence.
Many claims which would have been successfully defended under
contributory negligence rules now result in an award of damages or a settlement
during suit under the comparative negligence rules.
The differences between the liability for losses and LAE reported in the
annual statements filed with the state insurance departments in accordance with
statutory accounting principles ("SAP") and that reported in the accompanying
consolidated financial statements in accordance with GAAP at December 31, 1994,
are as follows (in millions):
<TABLE>
<S> <C>
Liability reported on a SAP basis $2,206
Additional discounting of GAAP reserves in excess
of the statutory limitation for SAP reserves (18)
Estimated salvage and subrogation recoveries recorded on
a cash basis for SAP and on an accrual basis for GAAP (1)
Reinsurance recoverables 730
------
Liability reported on a GAAP basis $2,917
======
</TABLE>
Asbestos and Environmental
The insurance industry typically includes only claims relating to
polluted waste sites and asbestos in defining environmental exposures. Great
American extends this definition to include claims relating to breast implants,
repetitive stress on keyboards, DES (a drug used in pregnancies years ago
alleged to cause cancer and birth defects), and other latent injuries ("A&E").
Establishing reserves for A&E claims is subject to uncertainties that
are greater than those presented by other types of claims. Factors
contributing to those uncertainties include a lack of historical data, long
reporting delays, uncertainty as to the number and identity of insureds with
potential exposure, unresolved legal issues regarding policy coverage, and the
extent and timing of any such contractual liability. Courts have reached
different and sometimes inconsistent conclusions as to when the loss occurred
and what policies provide coverage, what claims are covered, whether there is
an insured obligation to
11
<PAGE> 14
defend, how policy limits are determined and other policy provisions.
Management believes these issues are not likely to be resolved in the near
future.
Prior to the fourth quarter of 1994, Great American maintained reserves
only on its reported A&E claims; reserves for claims incurred but not reported
("IBNR") were not allocated to A&E claims. Following completion of a detailed
analysis in the fourth quarter, Great American allocated a specific portion of
its IBNR reserves to A&E claims. Based on known facts and current law,
management believes that its reserves for such claims are adequate.
The following table is a progression of reserves (in millions) for
exposures for which Great American has been held liable under general liability
policies written years ago where environmental coverage was not intended and,
in many cases, was specifically excluded.
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Reserves at beginning of year $141.5 $142.6 $141.3
Incurred losses and LAE 118.3 36.4 27.9
Paid losses and LAE (33.0) (37.5) (26.6)
------ ----- -----
Reserves at end of year, net of
reinsurance recoverable 226.8 141.5 142.6
Reinsurance recoverable 155.0 106.9 86.9
------ ------ ------
Gross reserves at end of year $381.8 $248.4 $229.5
====== ====== ======
</TABLE>
Since the mid-1980's, Great American has also written certain
environmental coverages (asbestos abatement and underground storage tank
liability) in which the premium charged is intended to provide coverage for the
specific environ- mental exposures inherent in these policies. The business
has been profitable since its inception. To date, approximately $160 million
of premiums has been written and reserves for unpaid losses and LAE aggregated
$56 million at December 31, 1994 (not included in the above table).
Reinsurance
In accordance with industry practice, Great American reinsures a portion
of its business with other insurance companies and assumes reinsurance from
other insurers. Ceding reinsurance permits diversification of risks and limits
maximum loss arising from large or unusually hazardous risks or a localized
catastrophe. Although reinsurance does not legally discharge the original
insurer from primary liability, risks that are reinsured are, in practice,
treated as though they were transferred to the reinsurers.
Reinsurance is provided on one of two bases: the facultative basis or
the treaty basis. Facultative reinsurance is generally provided on a risk by
risk basis. Individual risks are ceded and assumed based on an offer and
acceptance of risk by each party to the transaction. Treaty reinsurance
provides for risks to be automatically ceded and assumed according to contract
provisions.
In addition to various facultative reinsurance coverages, GAI has
current treaty reinsurance programs which generally provide for retention
maximums. For workers' compensation policies, the retention maximum is $5
million per loss occurrence with reinsurance coverage for the next $45 million.
For all other casualty policies, the retention maximum is $5 million per loss
occurrence with reinsurance coverage for the next $15 million. For property
coverages, the retention is $5 million per risk with reinsurance coverage for
the next $25 million; for catastrophe coverage on property risks, the retention
is $20 million with reinsurance covering 91% of the next $110 million in
losses. Contracts relating to reinsurance are subject to periodic
renegotiation.
12
<PAGE> 15
Included in "recoverables from reinsurers and prepaid reinsurance
premiums" were $75 million on paid losses and LAE and $730 million on unpaid
losses and LAE at December 31, 1994. The collectibility of a reinsurance
balance is based upon the financial condition of a reinsurer as well as
individual claim considerations. Market conditions over the past few years
have forced many reinsurers into financial difficulties or liquidation
proceedings. At December 31, 1994, Great American had an allowance of
approximately $79 million for doubtful collection of reinsurance recoverables.
Great American regularly monitors the financial strength of its reinsurers.
This process periodically results in the transfer of risks to more financially
secure reinsurers. Great American's major reinsurers include American
Re-Insurance Company, Employers Reinsurance Corporation, General Reinsurance,
Mitsui Marine and Fire Insurance Company, Ltd. and Taisho Marine & Fire
Insurance Company. Management believes that this present group of reinsurers
is financially sound.
Premiums written for reinsurance ceded and assumed are presented in the
following table (in millions):
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Reinsurance ceded to:
Non-affiliates $402 $333 $272 $221 $201
Affiliates 161 89 56 63 18
Reinsurance assumed - primarily
non-voluntary pools and associations 83 61 71 55 71
</TABLE>
All of the Texas business written by two companies controlled and
managed by Great American is "ceded to" Great American. These companies ceded
written premiums of $63 million in 1993, $17 million in 1992, $8 million in
1991 and $8 million in 1990. Beginning in 1994, statutory guidelines require
that this business be reported as direct, rather than assumed, due to the
relationship of these companies with Great American. Prior year amounts have
been reclassified to conform with the current year's presentation.
Investment Results
The following table, prepared on a GAAP basis, shows the performance of
Great American's investment portfolio, excluding equity investments in
affiliates (dollars in millions):
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Average Cash and Investments at Cost $2,614 $2,475 $2,326 $2,220 $2,277
Investment Income 205 202 203 186 211
Net Realized Gains (Losses) 45 43 58 3 (91)
Credit (Provision) for Impairment on
Investments - (2) 32 (85) (69)
Percentage Earned:
Excluding Realized Gains (Losses) (A) 7.8% 8.2% 8.7% 8.4% 9.3%
Including Realized Gains (Losses) (A) 9.6% 9.9% 11.2% 8.5% 5.3%
Including Realized Gains (Losses)
and Credit (Provision) for
Impairment on Investments 9.6% 9.9% 12.6% 4.7% 2.3%
Increase (Decrease) in Unrealized
Gains on Marketable Securities
(Net of Realized Gains and Losses) ($105) $84 $61 ($110) ($41)
</TABLE>
(A) Excludes provision for losses on investments.
_____________________________________________________
13
<PAGE> 16
American Annuity Group and Great American Life Insurance Company
Data in this section relating to the period following the sale of GALIC
to American Annuity generally has been taken from American Annuity's 1994 Form
10-K.
General
American Annuity is a holding company whose primary asset is the capital
stock of GALIC which it acquired from GAI on December 31, 1992. GALIC sells
annuities primarily to employees of qualified not-for-profit organizations.
GALIC is currently rated "A" (Excellent) by A.M. Best. American Annuity and
its subsidiaries employ approximately 440 persons.
The following table (in millions) presents information concerning GALIC
on a GAAP basis, unless otherwise noted.
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Total Assets (A) $5,071 $4,883 $4,436 $4,686 $3,847
Annuity Policyholders' Funds
Accumulated 4,615 4,257 3,974 3,727 3,398
GAAP Stockholders' Equity 449 520 418 358 355
Statutory Basis:
Capital and Surplus 256 251 216 219 192
Asset Valuation Reserve (B)(C) 80 70 71 112 10
Interest Maintenance Reserve (C) 28 36 17 - -
Annuity Receipts:
Flexible Premium:
First Year $ 39 $ 47 $ 48 $ 67 $ 73
Renewal 208 223 232 240 220
---- ---- ---- ---- ----
247 270 280 307 293
Single Premium 196 130 80 153 238
---- ---- ---- ---- ----
Total Annuity Receipts $443 $400 $360 $460 $531
==== ==== ==== ==== ====
<FN>
(A) Includes the following amounts for securities purchased in December and
paid for in the subsequent year: 1994 - $0; 1993 - $68 million; 1992 -
$0.2 million; 1991 - $557 million and 1990 - $46 million.
(B) For 1991 and 1990, amounts represent the Mandatory Securities Valuation
Reserve.
(C) Allocation of surplus for statutory reporting purposes.
</TABLE>
Annuity Products
Annuities are long-term retirement savings plans that benefit from
interest accruing on a tax-deferred basis. Certain employees of educational
institutions and other not-for-profit groups are eligible to save for
retirement through contributions made on a before-tax basis. Contributions are
made at the discretion of the participants through payroll deductions or
through tax-free "rollovers" of funds. Federal income taxes are not payable on
contributions or earnings until amounts are withdrawn.
14
<PAGE> 17
GALIC's principal products are Flexible Premium Deferred Annuities
("FPDAs") and Single Premium Deferred Annuities ("SPDAs"). FPDAs are
characterized by premium payments that are flexible in amount and timing as
determined by the policyholder. SPDAs are issued in exchange for a one-time
lump-sum premium payment. Since January 1, 1990, approximately three-fourths
of GALIC's SPDA receipts have resulted from rollovers of tax-deferred funds
previously maintained by policyholders with other insurers. In 1994, FPDAs
accounted for approximately 55% of GALIC's total annuity receipts.
All of GALIC's annuity products have been fixed rate annuities. With a
fixed rate annuity, an interest crediting rate is set by the issuer,
periodically reviewed by the issuer, and changed from time to time as
determined to be appropriate. At December 31, 1994, approximately 94% of
GALIC's policyholder liabilities consisted of annuities which offered a minimum
interest rate guarantee of 4%. GALIC's new products offer a minimum guaranteed
rate of 3%. All of GALIC's annuity policies permit GALIC to change the
crediting rate at any time (subject to the minimum guaranteed interest rate).
In determining the frequency and extent of changes in the crediting rate, GALIC
takes into account the profitability of its annuity business and the relative
competitive position of its products.
GALIC seeks to maintain a desired spread between the yield on its
investment portfolio and the rate it credits to its policies. GALIC
accomplishes this by (i) offering crediting rates which it has the option to
change, (ii) designing annuity products that encourage persistency and (iii)
maintaining an appropriate matching of assets and liabilities. GALIC imposes
certain surrender charges and front-end fees during the first five to ten years
of a policy to discourage customers from surrendering or withdrawing funds in
those early years. Over the past five years, the annual persistency rate of
GALIC's annuity products has averaged 92%.
At December 31, 1994, GALIC had approximately 250,000 annuity policies
in force, nearly all of which were individual contracts. GALIC's policyholders
are employees of over 7,300 institutions nationwide. Of the $4.7 billion in
total statutory reserves held by GALIC as of December 31, 1994, approximately
94% were attributable to policies in the accumulation phase. Annuity surrender
payments have averaged approximately 8% of statutory reserves over the past
five years.
Marketing and Distribution
GALIC markets its annuities principally to employees of educational
institutions in the kindergarten through high school segment. GALIC's
management believes that this market segment is attractive because of the
growth potential and persistency rate it has demonstrated. In 1994, written
premiums from this market segment represented approximately three-fourths of
GALIC's total tax qualified premiums.
GALIC markets its annuity products through over 50 managing general
agents ("MGAs") who, in turn, direct more than 900 actively producing
independent agents. GALIC has developed its business since 1980 on the basis
of its relationships with MGAs and independent agents primarily through a
consistent marketing approach and responsive service.
15
<PAGE> 18
GALIC is licensed to sell its products in all states (except New York)
and in the District of Columbia and Virgin Islands. The geographical
distribution of GALIC's annuity premiums written in 1994 compared to 1990 was
as follows (dollars in millions):
<TABLE>
<CAPTION>
1994 1990
--------------------- ----------------------
Location Premiums % Premiums %
-------- -------- ----- -------- -----
<S> <C> <C> <C> <C>
California $ 91 20.6% $111 20.9%
Michigan 40 9.0 62 11.7
Florida 38 8.6 40 7.5
Massachusetts 35 7.9 48 9.0
Ohio 27 6.1 20 3.8
Connecticut 20 4.5 36 6.8
Minnesota 20 4.5 * *
New Jersey 20 4.5 29 5.5
Washington 16 3.6 * *
Illinois 14 3.2 18 3.4
North Carolina 13 2.9 * *
Texas 11 2.5 47 8.9
Rhode Island 9 2.0 14 2.6
All others, each less than 2% 89 20.1 106 19.9
---- ----- ---- -----
$443 100.0% $531 100.0%
==== ===== ==== =====
<FN>
(*) Less than 2%.
</TABLE>
Sales of annuities are affected by many factors, including: (i)
competitive rates and products; (ii) the general level of interest rates; (iii)
the favorable tax treatment of annuities; (iv) commissions paid to agents; (v)
services offered; (vi) ratings from independent insurance rating agencies; and
(vii) general economic conditions.
Investment Results
GALIC's annuity products are structured to generate a stable flow of
investable funds. GALIC earns a spread by investing these funds at an
investment earnings rate in excess of the crediting rate payable to its
policyholders.
Investments comprise approximately 96% of GALIC's assets and are the
principal source of its income. The following table shows the performance of
GALIC's investment portfolio, excluding equity investments in affiliates
(dollars in millions):
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Average Cash and Investments at Cost $4,744 $4,455 $4,078 $3,828 $3,278
Gross Investment Income 377 358 334 340 304
Realized Gains (Losses) - 35 27 4 (32)
Credit (Provision) for Impairment on
Investments - - - 51 (23)
Percentage Earned:
Excluding Realized Gains (Losses) (A) 7.9% 8.0% 8.2% 8.9% 9.3%
Including Realized Gains (Losses) (A) 7.9% 8.8% 8.9% 9.0% 8.3%
Including Realized Gains (Losses)
and Credit (Provision) for
Impairment on Investments 7.9% 8.8% 8.9% 10.4% 7.6%
<FN>
(A) Excludes provision for losses on investments.
</TABLE>
_____________________________________________________
16
<PAGE> 19
American Premier
Data in this section generally has been taken from American Premier's 1994 Form
10-K.
American Premier's principal operations are conducted by a group of
insurance subsidiaries which write non-standard automobile insurance and
workers' compensation coverage. American Premier employs approximately 4,300
persons.
Insurance
American Premier purchased Great American's non-standard automobile
insurance companies on December 31, 1990, and Leader National Insurance Company
in May 1993. These companies (collectively the "NSA Group") write auto
insurance coverage for physical damage and personal liability for (i)
individuals perceived to be higher than normal risks due to factors such as
age, prior driving record, occupation or type of vehicle driven, or (ii) those
who have been cancelled or rejected by another insurance company. Premium
rates for non-standard risks are generally higher than for standard risks.
The NSA Group has been successful in profitably underwriting this
specialty insurance niche, reporting a statutory combined ratio of 99.7% in
1994. The NSA Group is comprised of four principal operating units which are
currently rated "A+" (Superior) to "A-" (Excellent) by A.M. Best Company.
American Premier acquired Republic Indemnity Company of America in 1989.
Republic sells workers' compensation and employer's liability insurance
principally in California. The workers' compensation portion of the coverage
provides for statutorily prescribed benefits that employers are required to pay
to employees who are injured in the course of employment. The employer's
liability portion of the coverage provides protection to an employer for its
liability for losses suffered by its employees which are not included within
the statutorily prescribed workers' compensation coverage.
Republic reported a statutory combined ratio (after policyholders'
dividends) of 95.9% for 1994. Management believes that Republic's stringent
underwriting standards, disciplined claims philosophy, expense containment and
reputation with insureds have combined to produce superior underwriting results
as compared to the industry in general. Republic is currently rated "A+"
(Superior) by A.M. Best Company.
Unless otherwise indicated, data in this section is presented on the
statutory basis prescribed by the National Association of Insurance
Commissioners and each insurer's domiciliary state.
17
<PAGE> 20
The profitability of a property and casualty insurance company depends
on both the underwriting of insurance and investment of assets. When the
combined ratio is under 100%, underwriting results are generally considered
profitable. The statutory ratios for the major classes of business written by
American Premier's Insurance Group are as follows.
<TABLE>
<CAPTION>
1994 1993 1992 1991
---- ---- ---- ----
<S> <C> <C> <C> <C>
Non-standard Automobile
-----------------------
Loss and Loss Adjustment Expense Ratio 76.0% 72.5% 69.7% 70.5%
Underwriting Expense Ratio 23.7% 24.4% 26.1% 26.5%
----- ----- ----- -----
Combined Ratio 99.7% 96.9% 95.8% 97.0%
===== ===== ===== =====
Industry Combined Ratio (*) 102.7% 101.7% 102.0% 104.7%
Workers' Compensation
---------------------
Loss and Loss Adjustment Expense Ratio 57.2% 59.0% 69.1% 66.5%
Underwriting Expense Ratio 18.3% 15.4% 16.0% 16.2%
Policyholder Dividend Ratio 20.4% 13.7% 11.6% 17.7%
----- ----- ----- -----
Combined Ratio 95.9% 88.1% 96.7% 100.4%
===== ===== ===== =====
Industry Combined Ratio (*) 99.0% 109.1% 121.5% 122.6%
</TABLE>
(*) Source: "Best Week Property/Casualty Supplement" (1/11/95
Edition); 1994 is an estimate. The combined ratio for
non-standard automobile represents the private passenger
automobile insurance industry. While there is no
reliable regularly published combined ratio data for the
non-standard automobile industry, American Premier
believes such a ratio would be lower than the private
passenger automobile industry average shown above.
The NSA Group has achieved underwriting success over the past several
years due to the refinement of various risk profiles, thereby dividing the
consumer market into more defined segments which can either be excluded from
coverage or priced properly. The NSA Group generally writes policies of short
duration, allowing more frequent evaluations of individual risks, providing
management greater flexibility in the ongoing assessment of the business. In
addition, cost control measures have been implemented in the underwriting and
claims handling areas.
Republic's workers' compensation insurance operations are highly
regulated by California state authorities. In July 1993, California enacted
significant changes in the workers' compensation insurance system (the "Reform
Legislation"). The Reform Legislation called for mandated premium rate
reductions that have already impacted Republic's results of operations.
Management intends to maintain its stringent underwriting standards and
pricing discipline, which are likely to have at least a temporary adverse
effect on premium volume and profitability. Historically, Republic's
policyholder dividends have been among the highest in the industry. To meet
future pricing competition, Republic has the option of quoting business without
indication of policyholder dividends. While this option may serve to partially
mitigate the adverse effects of these developments, the Company is unable to
predict their ultimate impact on its workers' compensation insurance
operations.
18
<PAGE> 21
The U.S. geographical distribution of gross written premiums in 1994
compared to 1993, was as follows (dollars in millions):
<TABLE>
<CAPTION>
1994 1993
------------ -------------
Premiums % Premiums %
-------- ----- -------- -----
<S> <C> <C> <C> <C>
Non-standard Automobile
-----------------------
Texas $ 145 13.1% $ 97 10.7%
Georgia 129 11.6 111 12.3
Florida 126 11.4 121 13.5
California 72 6.5 54 6.0
Arizona 63 5.7 54 6.0
Tennessee 60 5.4 41 4.6
Indiana 45 4.1 29 3.3
Alabama 44 4.0 34 3.8
Oklahoma 39 3.5 28 3.1
Mississippi 39 3.5 28 3.1
All other U.S. 347 31.2 302 33.6
------ ----- ---- -----
$1,109 100.0% $899 100.0%
====== ===== ==== =====
Workers' Compensation
---------------------
California $ 479 98.8% $469 100.0%
Arizona 6 1.2 - -
------ ----- ---- -----
$ 485 100.0% $469 100.0%
====== ===== ==== =====
</TABLE>
In addition, a 51%-owned company (started in 1993) specializing in
non-standard automobile insurance had 1994 gross written premiums of $63
million in the United Kingdom.
The NSA Group attributes its premium growth in recent years primarily to
entry into additional states, increased market penetration in its existing
states, overall growth in the non-standard market, and the 1993 purchase of
Leader National. The non-standard market has experienced growth in recent
years as standard insurers have become more restrictive in the types of risks
they will write.
Approximately 89% of net premiums written by Republic in 1994 were from
the sale of policies that provide for the discretionary payment of dividends
(premium refunds). These dividends are paid when Republic's experience with
such policyholders has been more favorable than certain specified levels and
Republic has had favorable overall financial results.
19
<PAGE> 22
Loss and Loss Adjustment Expense Reserves
The following table provides an analysis of changes in American
Premier's estimated liability for losses and LAE over the past three years, net
of all reinsurance activity, on a GAAP basis (in millions):
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Balance at beginning of year $ 916 $764 $664
Provision for losses and LAE
occurring in the current year 1,170 914 707
Net decrease in provision for claims
occurring in prior years(*) (79) (58) (20)
------ ---- ----
1,091 856 687
Reserves of subsidiaries purchased 13 54 -
Payments for losses and LAE occurring during:
Current year (554) (413) (295)
Prior years (386) (345) (292)
------ ---- ----
(940) (758) (587)
------ ---- ----
Balance at end of year $1,080 $916 $764
====== ==== ====
Add back reinsurance recoverables 51 45
------ ----
Unpaid losses and LAE, gross of reinsurance $1,131 $961
====== ====
</TABLE>
(*) Represents reductions in the estimates of ultimate losses and
LAE related to such claims.
The following table presents the development of American Premier's liability
for losses and LAE (in millions), net of reinsurance, on a GAAP basis since
1989 (the year American Premier acquired its first insurance subsidiary).
<TABLE>
<CAPTION>
1989 1990 1991 1992 1993 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Liability for Unpaid Losses
and Loss Adjustment Expenses:
-----------------------------
As originally estimated $369 $602 $664 $764 $916 $1,080
As re-estimated at December 31, 1994 313 539 600 672 837 N/A
Liability Re-estimated as of:
One year later . . . . . . . . 97.0% 96.5% 97.0% 92.4% 91.4%
Two years later . . . . . . . . 89.7% 93.0% 93.4% 87.9%
Three years later . . . . . . . 85.7% 91.0% 90.4%
Four years later . . . . . . . 85.5% 89.6%
Five years later . . . . . . . 84.7%
Cumulative Redundancy (15.3%) (10.4%) ( 9.6%) (12.1%) (8.6%) N/A
==== ==== ==== ==== ==== ===
Cumulative Paid as of:
One year later . . . . . . . . 19.5% 43.0% 44.1% 40.6% 40.9%
Two years later . . . . . . . . 49.1% 64.4% 64.5% 59.3%
Three years later . . . . . . . 64.6% 75.2% 74.2%
Four years later . . . . . . . 71.4% 79.8%
Five years later . . . . . . . 75.1%
</TABLE>
Other
During 1994 and 1995, American Premier completed the divestiture of all
of its non-insurance subsidiaries. In June 1994, American Premier sold its
last major non-insurance asset, namely its investment in General Cable common
stock and notes, for $177 million. American Premier received approximately $42
million in cash and $11 million in notes for other non-insurance assets sold.
_____________________________________________________
20
<PAGE> 23
Chiquita Brands International
Data in this section generally has been taken from Chiquita's 1994 Form
10-K.
Chiquita is a leading international marketer, processor and producer of
quality fresh and processed food products. Chiquita employs approximately
45,000 persons, 36,000 of whom are employed in Central and South America and
5,000 of whom are employed in the Meat Division which is held for sale. In
recent years, it has capitalized on its "Chiquita" and other premium brand
names by building on its worldwide leadership position in the marketing,
distribution and sourcing of bananas; by expanding its quality fresh fruit and
vegetable operations; and by further developing its business in value-added
processed foods.
Chiquita's fresh foods products include:
* Bananas, apples, avocados, citrus, grapes, kiwi, mangos and
nectarines sold under the "Chiquita" brand name;
* Bananas, citrus and other quality fresh fruit including apples,
apricots, cherries, grapes, peaches, pears, plums, strawberries and
tomatoes sold under the "Consul," "Chico," "Amigo," "Frupac" and
other brand names; and
* A wide variety of fresh vegetables including asparagus, beans,
broccoli, carrots, celery, lettuce, onions and potatoes sold under
the "Premium" and various other brand names.
The core of Chiquita's fresh foods operations is the marketing,
distribution and sourcing of bananas. Sales of bananas comprise approximately
60% of Chiquita's total net sales, excluding the Meat Division.
In 1994, Chiquita sold over 40% of its total banana volumes in each of
Europe and North America. Chiquita has generally been able to obtain a premium
price for its bananas due to its reputation for quality and its innovative
marketing techniques.
Chiquita has a greater number and geographic diversity of sources of
bananas than any of its competitors. During 1994, approximately 35% of all
bananas sold by Chiquita were sourced from Panama. Bananas sourced from other
countries, including Colombia, Costa Rica, Guatemala and Honduras, comprised
from 4% to 19% (depending on the country) of bananas sold by Chiquita in 1994.
Approximately two-thirds of the bananas sourced by Chiquita in 1994 were
produced by subsidiaries and the remainder were purchased under purchase fruit
arrangements from suppliers. Chiquita's low concentration of banana production
in individual producing locations reduces its overall risk of business
interruption from localized weather conditions and crop disease as well as from
political changes.
Transportation expenses comprise approximately one-fourth of the total
costs incurred by Chiquita in its sale of tropical fruit. Chiquita ships its
tropical fruit in vessels it owns or charters. All of Chiquita's tropical
fruit shipments into the North American market are delivered using pallets or
containers that minimize damage to the product by eliminating the need to
handle individual boxes. As a result of a multi-year investment program, now
completed, and the elimination of a substantial amount of chartered ship
capacity under its restructuring program, Chiquita now owns or controls through
long-term lease approximately 60% of its
21
<PAGE> 24
aggregate shipping capacity. Most of the remaining capacity is operated under
contractual arrangements having terms of three years or less. Chiquita also
operates loading and unloading facilities which it owns or leases in Central
and South America and various ports of destination.
Chiquita's processed foods products include:
* Fruit and vegetable juices and other processed fruits and
vegetables, including banana puree, marketed under the "Chiquita,"
"Naked Juice," "Friday" and other brands;
* Wet, fresh cut and ready-to-eat salads sold under the "Club Chef"
and "Naked Foods" brands; and
* Margarine, shortening and other consumer packaged foods sold under
the "Numar," "Clover" and various regional brand names.
Chiquita's branded juices are available throughout most of the United
States and are manufactured by others to Chiquita's specifications. Chiquita
also produces and sells banana puree, sliced bananas and other specialty banana
products to producers of baby food, fruit beverages, baked goods and
fruit-based products, to wholesalers of bakery and dairy food products and to
selected licensees. Chiquita owns one of the largest private-label vegetable
processors in the U.S. which markets a full line of over twenty-five types of
processed vegetables to retail and food service customers throughout the U.S.
and other countries. Chiquita markets, refines and produces shortening,
margarine and vegetable oil products from oil palm grown on Chiquita's
plantations located in Costa Rica and Honduras.
During the fourth quarter of 1992, after evaluation of reorganization
plans announced earlier that year and completion of other preparatory actions,
Chiquita adopted a plan of disposal for its Meat Division operations. Pursuant
to the plan, Chiquita sold a major component of its Meat Division in December
1992 and has since made significant progress including: (i) successful ongoing
cost reduction efforts that have contributed to improved Meat Division
operating results; (ii) terminating retiree medical benefits; (iii) obtaining
government subsidies and union concessions; (iv) obtaining stand alone working
capital financing; and (v) the sale of the specialty meat operations in 1994.
Chiquita's Meat Division is engaged in the processing and marketing
primarily of fresh pork and processed meat products which are sold principally
in the U.S. and for export to Japan, Mexico, Canada and other Central American
and Pacific Rim countries.
The operations of the Meat Division involve supplying a consistent
quality product to a broad market, including large food chains. Profit margins
in the fresh meat business are low, and the availability of adequate supplies
and cost of livestock is significant to the profitability of the Meat
Division's operations.
_____________________________________________________
22
<PAGE> 25
Citicasters
Data in this section generally has been taken from Citicasters' 1994
Form 10-K.
Citicasters is engaged in the ownership and operation of radio and
television stations. In June 1994, Citicasters changed its name from Great
American Communications Company to reflect its identity as an owner and
operator of radio and television broadcast stations in metropolitan markets.
At December 31, 1994, Citicasters and its subsidiaries employed approximately
700 full-time employees and 200 part-time employees.
Following its acquisition of Taft Broadcasting in 1987, GACC was highly
leveraged. In the ensuing years, GACC restructured substantial amounts of its
debt and sold assets to meet debt maturities. However, the downturn in the
per-formance and values of the TV and radio businesses caused GACC's cash flow
from operations to be insufficient to meet all of its obligations as they came
due.
In December 1993, GACC completed a comprehensive financial restructuring
which included a joint prepackaged plan of reorganization under Chapter 11 of
the Bankruptcy Code for GACC and two of its non-operating subsidiaries. GACC
also negotiated a new credit facility with its bank lenders. Through the
reorgani-zation, GACC reduced its total outstanding debt and preferred stock
from $910 million to $433 million and lowered its annual fixed charges
(interest and preferred stock dividends) from more than $94 million to
approximately $41 million.
Under GACC's restructuring, AFC exchanged its investment in GACC stock
and debt for approximately 2.3 million shares of new Citicasters common stock.
In addition, AFC contributed $7.5 million of new capital to Citicasters in
exchange for additional common stock and 14% notes.
In June 1994, AFEI purchased 1.2 million shares of Citicasters common
stock for $23.9 million in cash. During the second half of 1994, Citicasters
repurchased 2.4 million shares of its common stock at a total cost of $51.1
million. At December 31, 1994, AFC owned 37% of Citicasters' voting common
stock; AFC's Chairman owned an additional 17% of the stock.
During 1994, Citicasters sold its television stations in Birmingham,
Greensboro/High Point, Kansas City, and Phoenix to New World Communications
Group Inc. for $355 million in cash and a five-year warrant to purchase 5
million shares of New World Class A common stock at $15 per share. Citicasters
used the cash generated from this sale to retire in excess of $300 million in
debt and to repurchase 2.4 million shares of stock. Citicasters also sold its
radio stations in Milwaukee, Denver and Detroit during 1994 for an aggregate of
$26.5 million. During 1994, Citicasters acquired its second FM radio station
in Sacramento for $16 million and reached an agreement to acquire its second FM
station in Cincinnati for $15 million. Citicasters has also entered into
agreements to acquire second FM radio stations in the Tampa and Portland
markets.
23
<PAGE> 26
At December 31, 1994, Citicasters owned and/or operated two
network-affiliated television stations, ten FM radio stations and four AM radio
stations. The following tables give the location, network affiliation and
market information for these stations.
<TABLE>
Television Stations
<CAPTION>
Station Rank(A)
----------------- Cable
Market and TV Homes Station and Network Adults Commercial Sub-
National Market in DMA First Year Affili- House- Aged Stations in scriber-
Rank (A) (000's) Owned ation holds 25-54 Market ship
- --------------------------- ----------- ------------ ------- ----- -------- ------------ --------
VHF UHF
--- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Tampa, FL 15 1,390 WTSP 1985 CBS(B) 3 1 tie 3 6 69%
Cincinnati, OH 30 782 WKRC 1949 ABC 3 1 tie 3 2 59%
<FN>
(A) Rankings are based on TV households in Designated Market Area ("DMA") for
all hours of the week except overnight.
(B) WTSP switched its network affiliation from ABC in December 1994.
</TABLE>
The source of all television stations' market information is the Nielsen
Station Index, November 1994.
<TABLE>
Radio Stations
<CAPTION>
Rank In
Market and Metro Station and ----------------- Stations
National Market Population First Year Format Market Targeted In
Rank (000's) Owned (B) (A) Audience Market
- --------------------------- ----------- ------------ ------ ------ -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FM
- --
Atlanta, GA 12 2,770 WKLS 1985 AOR 11 4 20
Phoenix, AZ 20 1,933 KSLX 1992 CR 8 2 30
Tampa, FL 21 1,864 WXTB 1989 AOR 2 1 23
Portland, OR 24 1,563 KKRZ 1984 CH 8 4 28
Cincinnati, OH 25 1,549 WKRQ 1947 CH 9 5 25
Cincinnati, OH 25 1,549 WWNK (C) AC 10 tie 8 tie 25
Kansas City, MO 27 1,351 KYYS 1964 AOR 8 tie 2 25
Sacramento, CA 29 1,341 KSEG 1988 CR 8 5 tie 25
Sacramento, CA 29 1,341 KRXQ 1994 AOR 11 3 tie 25
Columbus, OH 33 1,216 WLVQ 1954 AOR 7 4 25
AM
- --
Phoenix, AZ 20 1,933 KOPA 1992 CR (D) (D) 30
Portland, OR 24 1,563 KEX 1984 AC 7 10 28
Kansas City, MO 27 1,351 WDAF 1964 C 1 4 25
Columbus, OH 33 1,216 WTVN 1954 AC 1 4 tie 25
</TABLE>
(A) Rankings are based on Arbitron Radio Report services, generally for all
persons aged 12 and over and for all hours of the week except overnight.
(B) AOR - Album Oriented Rock C - Country
AC - Adult Contemporary CH - Contemporary Hits
CR - Classic Rock
(C) Operated under a local marketing arrangement as of December 31, 1994;
under agreement for purchase for which a closing is anticipated in the
first quarter of 1995.
(D) Separate rating not meaningful. These stations are operated in
conjunction with the related FM station.
Substantially all of Citicasters' broadcast revenues come from the sale
of advertising time to local and national advertisers. Local advertisements
are sold by each station's sales personnel and national spots are sold by
independent national sales representatives.
24
<PAGE> 27
Citicasters' AM radio stations offer their listeners a wide range of
programs including news, music, discussion, commentary and sports.
Citicasters' FM radio stations offer programming more focused on music.
Federal Communication Commission ("FCC") rules permitting ownership of
two FM and two AM radio stations in certain markets (a "duopoly") have created
opportunities for Citicasters to increase advertising revenues and may reduce
operating expenses. Citicasters expects to purchase, sell or exchange radio
stations in order to take advantage of the considerable operating opportunities
presented by the duopoly rules.
Citicasters' television stations receive a significant portion of their
programming from their respective networks; the networks sell commercial
advertising time within such programming. The competitive position of the
stations is directly affected by viewer acceptance of network programs. The
non-network programs broadcast by the stations are either produced by the
stations or acquired from other sources. Locally originated programs include a
wide range of show types such as news, entertainment, sports, public affairs
and religious programs.
_____________________________________________________
Other Companies
AFEI is a holding company with assets consisting primarily of
investments in the common stock of American Premier, American Annuity and
Citicasters.
Through subsidiaries, AFC is engaged in a variety of other businesses,
including The Golf Center at Kings Island (golf and tennis facility) and
Provident Travel Agency, both in the Greater Cincinnati area; commercial real
estate operations in Cincinnati (office buildings and The Cincinnatian Hotel),
Louisiana (Le Pavillon Hotel), Massachusetts (Chatham Bars Inn) and apartments
in Alabama, Florida, Kentucky, Louisiana, Minnesota, Oklahoma, Pennsylvania,
Texas and Wisconsin; and Financial World Magazine. These operations employ
approximately 700 full-time employees.
In June 1994, AFC sold its investment in General Cable common stock to
an unaffiliated company for $27.6 million in cash. General Cable was formed in
1992 to hold American Premier's wire and cable and heavy equipment
manufacturing businesses.
AFC was engaged in the distribution and production of filmed
entertainment programming through Spelling Entertainment Group. In 1993, AFC
sold its common stock investment in Spelling to Blockbuster Entertainment in
exchange for 7.6 million shares of Blockbuster common stock and warrants to
purchase an additional two million Blockbuster shares at $25 per share.
In 1993, AFC sold its insurance brokerage operation, American Business
Insurance, Inc., to Acordia, Inc., an Indianapolis-based insurance broker. In
the sale, AFC received approximately $50 million in cash, 800,000 shares of
Acordia common stock and warrants to purchase an additional 1.5 million Acordia
shares at $25 per share.
AFC was engaged in the theme park business through the wholly-owned
Kings Island, one of the top ten theme parks in the United States based on
attendance. In 1992, AFC sold Kings Island to an unaffiliated party for
approximately $210 million in cash.
_____________________________________________________
25
<PAGE> 28
Investment Portfolio
General
A breakdown of AFC's December 31, 1994, investment portfolio by business
segment follows (excluding investment in equity securities of investee
corporations) (in millions).
<TABLE>
<CAPTION>
Carrying Value Total
---------------------------------------- Market
P&C Annuity Other Total Value
------ ------- ----- ------ ------
<S> <C> <C> <C> <C> <C>
Cash and Short-term Investments $ 98 $ 66 $ 7 $ 171 $ 171
Bonds and Redeemable
Preferred Stocks 2,195 4,297 1 6,493 6,199
Other Stocks, Options
and Warrants 185 22 2 209 209
Loans Receivable 155 468 19 642 642(*)
Real Estate and Other Investments 109 32 13 154 154(*)
------ ------ --- ------ ------
$2,742 $4,885 $42 $7,669 $7,375
====== ====== === ====== ======
<FN>
(*) Carrying value used since market values are not readily available.
</TABLE>
The following tables present the percentage distribution and yields of
AFC's investment portfolio (excluding investment in equity securities of
investee corporations) as reflected in its financial statements.
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Cash and Short-term Investments 2.2% 2.3% 9.3% 15.3% 13.0%
Bonds and Redeemable Preferred Stocks:
U.S. Government and Agencies 4.0 2.8 5.7 5.3 8.5
State and Municipal .8 .8 .6 .6 2.6
Public Utilities 10.1 10.2 8.5 10.7 13.2
Mortgage-Backed Securities 21.8 24.7 22.9 20.8 16.0
Corporate and Other 47.6 41.1 33.9 31.8 22.6
Redeemable Preferred Stocks 1.4 1.3 .8 .3 .5
----- ----- ----- ----- -----
85.7 80.9 72.4 69.5 63.4
Net Unrealized Gain (Loss) on above
Available for Sale (1.0) 1.8 .8 - -
----- ----- ----- ----- -----
84.7 82.7 73.2 69.5 63.4
Other Stocks, Options and Warrants 2.7 4.6 2.6 3.2 7.5
Loans Receivable 8.4 8.5 12.9 9.9 12.1
Real Estate and Other Investments 2.0 1.9 2.0 2.1 4.0
----- ----- ----- ----- -----
100.0% 100.0% 100.0% 100.0% 100.0%
===== ===== ===== ===== =====
Yield on Fixed Income Securities (A):
Excluding realized gains and losses 8.1% 8.0% 8.8% 9.5% 10.3%
===== ===== ===== ===== =====
Including realized gains and losses 8.1% 8.7% 9.8% 9.0% 8.0%
===== ===== ===== ===== =====
Yield on Stocks (A):
Excluding realized gains and losses 5.1% 4.4% 6.4% 2.2% 6.7%
===== ===== ===== ===== =====
Including realized gains and losses 35.4% 16.9% 15.5% 29.7% 15.9%
===== ===== ===== ===== =====
Yield on Investments (B):
Excluding realized gains and losses (A) 8.1% 7.9% 8.7% 9.2% 10.1%
===== ===== ===== ===== =====
Including realized gains and losses (A) 8.8% 9.0% 10.0% 10.0% 8.6%
===== ===== ===== ===== =====
Including realized gains and losses and
provisions for losses on investments 8.8% 9.0% 10.0% 9.4% 6.6%
===== ===== ===== ===== =====
<FN>
(A) Excludes provision for losses on investments.
(B) Excludes "Real Estate and Other Investments".
</TABLE>
26
<PAGE> 29
Fixed Maturity Investments
Unlike most insurance groups which have portfolios that are invested
heavily in tax-exempt bonds, AFC invests substantial amounts in taxable bonds.
The National Association of Insurance Commissioners ("NAIC") assigns quality
ratings to publicly traded as well as privately placed securities. These
ratings range from Class 1 (highest quality) to Class 6 (lowest quality). The
following table shows AFC's bonds and mandatory redeemable preferred stocks, by
NAIC designation (and comparable Standard & Poor's Corporation rating) as of
December 31, 1994 (dollars in millions).
<TABLE>
<CAPTION>
% of
NAIC Amortized Market Total
Rating Comparable S&P Rating Cost Value Market
------ --------------------- --------- ------ ------
<S> <C> <C> <C> <C>
1 AAA, AA, A $4,026 $3,785 61%
2 BBB 2,160 2,025 33
------ ------ ---
Total investment grade 6,186 5,810 94
------ ------ ---
3 BB 286 270 4
4 B 96 118 2
5 CCC, CC, C - - -
6 D - 1 *
------ ------ ---
Total non-investment grade 382 389 6
------ ------ ---
Total $6,568 $6,199 100%
====== ====== ===
</TABLE>
(*)less than 1%
Risks inherent in connection with fixed income securities include loss
upon default and market price volatility. Factors which can affect the market
price of securities include: credit worthiness, changes in interest rates, the
number of market makers and investors, defaults by major issuers of securities
and public concern about concentrations in certain types of securities by
institutions.
AFC's primary investment objective for bonds and mandatory redeemable
preferred stocks is interest and dividend income rather than realization of
capital gains. AFC invests in bonds and mandatory redeemable preferred stocks
that have primarily short-term and intermediate-term maturities. This practice
allows flexibility in reacting to fluctuations of interest rates.
Equity Investments
AFC's equity investment practice permits concentration of attention on a
relatively limited number of companies in relatively few industries,
principally insurance, financial services and food products. Some of the
equity investments, because of their size, may not be as readily marketable as
the typical small investment position. Alternatively, a large equity position
may be attractive to persons seeking to control or influence the policies of a
company and AFC's concentration in a relatively small number of companies and
industries may permit it to identify investments with above average potential
to increase in value.
_____________________________________________________
27
<PAGE> 30
Seasonality
The operations of certain of AFC's business segments are seasonal in
nature. While insurance premiums are recognized on a relatively level basis,
claim losses related to adverse weather (snow, hail, flooding, hurricanes,
tornados, etc.) may be seasonal. The banana portion of the food products
segment is affected by variations in consumer demand based on the availability
of other fruits. The resulting seasonal pricing generally produces the
strongest period during the first six months of the year. Radio and television
broadcast revenues generally tend to be higher in the second and fourth
calendar quarters.
_____________________________________________________
Competition
Most areas of AFC's operations are highly competitive, with competition
coming from a variety of sources, many of which are larger and have financial
resources greater than AFC or its subsidiaries.
Great American, American Premier and GALIC compete with other insurers
primarily in service and price. Since they sell policies through independent
agents, they must also compete for agents. Such competition is based on
service to policyholders and agents, products offered, commissions and profit
sharing. No single insurer dominates the marketplace. Competitors include
individual insurers and insurance groups of varying sizes, some of which are
mutual insurance companies possessing competitive advantages in that all their
profits inure to their policyholders, and many of which possess financial
resources in excess of those available to the AFC insurance companies. In a
broader sense, GALIC competes for retirement savings with a variety of
financial institutions offering a full range of financial services.
Chiquita's principal competitors consist of a limited number of large
international companies. In order to compete successfully, Chiquita must be
able to source bananas of uniformly high quality and distribute them in
worldwide markets on a timely basis. Chiquita believes that it sells more
bananas than any of its competitors, accounting for approximately one-fourth of
all bananas imported into its principal markets throughout the world.
Citicasters' television and radio stations compete for revenues with
other stations in their respective signal coverage areas as well as with all
other advertising media. The broadcast stations also compete for audience with
other forms of home entertainment, such as cable television, pay television
systems of various types and home video and audio recordings.
_____________________________________________________
Regulation
AFC's insurance companies are regulated under the insurance and
insurance holding company laws of their states of domicile and other states in
which they operate. These laws, in general, require approval of the particular
insurance regulators prior to certain actions by the insurance companies, such
as the payment of dividends in excess of statutory limitations, continuing
service arrangements with affiliates and certain other transactions.
Regulation and supervision of each insurance subsidiary is administered by a
state insurance commissioner who has broad statutory powers with respect to the
granting and revoking of licenses, approvals of
28
<PAGE> 31
premium rates, forms of insurance contracts and types and amounts of business
which may be conducted in light of the policyholders' surplus of the particular
company. AFC's largest insurance subsidiaries, GAI and GALIC, are Ohio
domiciled insurers. State insurance departments conduct periodic financial
examinations of insurance companies, with GAI's and GALIC's most recent such
examinations being as of December 31, 1993. Insurance departments also perform
market conduct examinations to determine compliance with rate and form filings
and to monitor treatment of policyholders and claimants. State insurance laws
also regulate the character of each insurance company's investments,
reinsurance and security deposits. The statutes of most states provide for the
filing of premium rate schedules and other information with the insurance
commissioner, either directly or through rating organizations, and the
commissioner generally has powers to disapprove such filings or make changes to
the rates if they are found to be excessive, inadequate or unfairly
discriminatory. The determination of rates is based on various factors,
including loss and loss adjustment expense experience.
The NAIC is an organization which is comprised of the chief insurance
regulator for each of the 50 states and the District of Columbia. In 1990, the
NAIC began an accreditation program to ensure that states have adequate
procedures in place for effective insurance regulation, especially with respect
to financial solvency. The accreditation program requires that a state meet
specific minimum standards in over 15 regulatory areas to be considered for
accreditation. The accreditation program is an ongoing process and once
accredited, a state must enact any new or modified standards approved by the
NAIC within two years following adoption. As of December 1994, 43 states were
accredited, including Ohio.
The NAIC has adopted the Risk Based Capital For Insurers Model Act which
applies to both life and property and casualty companies. The risk-based
capital formulas determine the amount of capital that an insurance company
needs to ensure that it has an acceptably low expectation of becoming
financially impaired. The act provides for increasing levels of regulatory
intervention as the ratio of an insurer's total adjusted capital and surplus
decreases relative to its risk-based capital, culminating with mandatory
control of the operations of the insurer by the domiciliary insurance
department at the so-called "mandatory control level". The risk-based capital
formulas became effective in 1993 for life companies and became effective with
the filing of the 1994 Annual Statement for property and casualty companies.
Based on the 1994 results of AFC's insurance companies, all such companies are
adequately capitalized.
The NAIC's state accreditation criteria require that a state adopt the
NAIC model law governing extraordinary dividends or a law substantially similar
to the model. The current NAIC model for extraordinary dividends requires
prior regulatory approval of any dividend that exceeds the "lesser of" 10% of
statutory surplus or 100% of the prior year's net income (net gain from
operations for life insurance companies), subject in either case to the
existence of sufficient earned statutory surplus from which such dividends may
be paid. The NAIC has adopted a variety of alternative provisions which may be
considered "substantially similar" to its model, one of which includes the
"greater of" rather than "lesser of" standard with other restrictions. In
1993, Ohio revised its dividend law to adopt one of the alternatives. The
maximum amount of dividends which may be paid without (i) prior approval or
(ii) expiration of a 30 day waiting period without disapproval is the greater
of statutory net income or 10% of policyholders' surplus as of the preceding
December 31, but only to the extent of earned surplus as of the preceding
December 31. The Ohio Insurance Department has broad discretion to limit the
payment of dividends by insurance companies domiciled in Ohio.
29
<PAGE> 32
The NAIC has been considering the adoption of a model investment law for
several years. A draft of the model law was released for comment in 1994. It
is not possible to predict the content of the final law. However, based on the
draft released in 1994, it is not expected that the final law will have a
material impact on the investment activities of AFC's insurance subsidiaries.
There can be no assurance that existing insurance-related laws and
regulations will not become more restrictive in the future and thereby have a
material adverse effect on the operations of AFC's insurance subsidiaries and
on their ability to pay dividends.
Chiquita is subject to a variety of governmental regulations in
countries where it sources and markets its products, including import quotas
and tariffs, currency exchange controls and taxes. In 1993, the European Union
("EU") implemented a new quota effectively restricting the volume of Latin
American bananas imported into the EU, which had the effect of decreasing
Chiquita's volume and market share in Europe. In two separate rulings, General
Agreement on Tariffs and Trade ("GATT") panels found this banana policy to be
illegal. In March 1994, four of the countries which had filed GATT actions
against the EU banana policy (Costa Rica, Colombia, Nicaragua and Venezuela)
reached a settlement with the EU by signing a "Framework Agreement". This
agreement authorizes the imposition of additional restrictive and
discriminatory quotas and export licenses on U.S. banana marketing firms, while
leaving EU firms exempt. Full implementation of the agreement and related
regulations could significantly increase Chiquita's cost to export bananas from
these sources. Three additional European countries (Sweden, Finland and
Austria) joined the EU in January 1995. These countries, which have had
substantially unrestricted banana markets in which Chiquita has supplied a
significant portion of the bananas, are in the process of transition to the
more restrictive EU quota and licensing environment.
In September 1994, Chiquita and the Hawaii Banana Industry Association
made a joint filing with the Office of the U.S. Trade Representative under
Section 301 of the U.S. Trade Act of 1974, charging that the EU quota and
licensing regime and the Framework Agreement are unreasonable, discriminatory
and a burden and restriction on U.S. commerce. In October 1994, in response to
this petition, the U.S. Government initiated a formal investigation of the EU
banana import policy. In January 1995, the U.S. Government announced a
preliminary finding against the EU banana import policy and launched separate
investigations of the Colombian and Costa Rican Framework Agreement policies.
The EU, Colombian and Costa Rican investigations are continuing. Section 301
authorizes retaliatory measures, such as tariffs or withdrawal of trade
concessions, against the offending countries. However, there can be no
assurance as to the results of the investigation, the nature and extent of
actions the U.S. Government might take, or the impact on the EU quota regime or
the Framework Agreement.
Citicasters' television and radio broadcasting operations are subject to
the jurisdiction of the FCC. FCC regulations govern issuance, term, renewal,
transfer and cross-ownership of licenses which are necessary for operation of
television and radio stations.
_____________________________________________________
30
<PAGE> 33
ITEM 2
Properties
AFC and subsidiaries own several buildings in downtown Cincinnati. AFC
and its affiliates occupy about three-fifths of the aggregate 580,000 square
feet of commercial and office space. American Premier and Citicasters lease
their headquarters in one of these buildings.
GAI, its subsidiaries, and American Premier's insurance subsidiaries
lease the majority of their office and storage facilities in numerous cities
throughout the United States, including GAI's and American Annuity's home
offices in Cincinnati.
Citicasters owns three of its studio buildings and eight of its
transmission sites.
Chiquita owns approximately three-fourths of the 171,000 acres used for
the cultivation of its bananas and oil palm and support activities. It also
owns over one-half of the 42 ocean-going refrigerated vessels used primarily
for transporting tropical fruit.
31
<PAGE> 34
ITEM 3
Legal Proceedings
AFC and its subsidiaries are involved in various litigation, most of
which arose in the ordinary course of business. Except for the following,
management believes that none of the litigation meets the threshold for
disclosure under this Item.
For several years AFC had an ownership interest of less than 50% in
Mission Insurance Group, Inc. which entered bankruptcy and receivership
proceedings in 1985 and 1986. Under the receivership proceedings, the
Insurance Commissioner of California sued numerous reinsurers who had done
business with Mission's insurance subsidiaries in two suits brought in Superior
Court, Los Angeles County, California, styled Insurance Commissioner of the
State of California v. Mission Insurance Company and Gillespie v. Abeille-Paix
et al. During 1989, AFC, Carl H. Lindner and Ronald F. Walker ("AFC
Defendants"), and others were added as cross-defendants to that litigation by
the Commissioner. The Commissioner's cross-complaint against the AFC
Defendants alleges breach of fiduciary duty and seeks indemnity in the event
the reinsurers are not required to pay as a result of any finding of fraud,
negligence or breach of duty. In 1990, the Commissioner entered into a Partial
Settlement Agreement with the AFC Defendants and others providing they may
still be liable in the event that the Commissioner does not recover the full
amount sought from the reinsurers and it is determined that such failure to
recover resulted from the misconduct by one or more of the AFC Defendants or
others. The liability of any AFC Defendant or other party must be determined
on an individual comparative fault basis. The AFC Defendants have denied all
material allegations. A preliminary finding was reached in December 1994
denying the Commissioner's claims against the reinsurers which the trial court
is expected to accept. Management believes there is little likelihood that
this litigation will have a material impact on AFC's financial statements.
The following information has been summarized from "Legal Proceedings"
of American Premier's 1994 Form 10-K. In May 1994, USX Corporation and an
affiliated company ("USX") filed actions against American Premier seeking
indemnification and contribution for all or a portion of the approximately $600
million paid under a judgment in an antitrust action. USX alleged that the
judgment was attributable to activities of certain pre-1976 railroad operations
of an American Premier predecessor company. The predecessor company had been
dismissed by the court as a defendant in the earlier action. American Premier
believes that the actions are without merit and that it has substantial
defenses. In June 1994, American Premier requested a court order to enjoin the
litigation. That order was granted in October 1994. USX has appealed.
32
<PAGE> 35
PART II
ITEM 5
Market for Registrant's Common Equity and Related Stockholder Matters
Not applicable - Registrant's Common Stock is owned by fewer than 20
share-holders. See the Consolidated Financial Statements for information
regarding dividends.
ITEM 6
Selected Financial Data
The following table sets forth certain data for the periods indicated
(dollars in millions).
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Operations Statement Data:
- -------------------------
Total Revenues $ 2,103 $ 2,721 $ 3,929 $ 5,219 $ 7,761
Earnings (Loss) From
Continuing Operations
Before Income Taxes 44 262 (145) 119 49
Earnings (Loss) From:
Continuing Operations 19 225 (162) 56 (9)
Discontinued Operations - - - 16 3
Extraordinary Items (17) (5) - - 28
Cumulative Effect of
Accounting Change - - 85 - -
Net Earnings (Loss) 2 220 (77) 72 22
Ratio of Earnings to
Fixed Charges (A) 1.69 2.62 2.15 1.54 1.12
Ratio of Earnings to
Fixed Charges and
Preferred Dividends (A) 1.40 2.26 1.94 1.42 1.06
Balance Sheet Data:
- ------------------
Total Assets $10,550 $10,077 $12,389 $12,057 $11,500
Long-term Debt:
Parent Company 490 572 557 559 558
Subsidiaries 617 482 1,452 1,549 2,432
Capital Subject to
Mandatory Redemption 3 49 28 82 77
Other Capital 396 537 280 262 256
</TABLE>
(A) Fixed charges are computed on a "total enterprise" basis. For purposes
of calculating the ratios, "earnings" have been computed by adding to
pretax earnings (excluding discontinued operations) the fixed charges
and the minority interest in earnings of subsidiaries having fixed
charges and deducting (adding) the undistributed equity in earnings
(losses) of investees. Fixed charges include interest (excluding
interest on annuity policyholders' funds), amortization of debt discount
and expense, preferred dividend requirements of subsidiaries and a
portion of rental expense deemed to be representative of the interest
factor.
33
<PAGE> 36
ITEM 7
Management's Discussion and Analysis
of Financial Condition and Results of Operations
GENERAL
Following is a discussion and analysis of the financial statements and
other statistical data that management believes will enhance the understanding
of AFC's financial condition and results of operations. This discussion should
be read in conjunction with the financial statements beginning on page F-1.
AFC is organized as a holding company with almost all of its operations
being conducted by subsidiaries and investees. The parent corporation,
however, has continuing expenditures for administrative expenses and corporate
services and, most importantly, for the payment of principal and interest on
borrowings and dividends on AFC Preferred Stock. Therefore, certain analyses
are best done on a parent only basis while others are best done on a total
enterprise basis. In addition, since many of its businesses are financial in
nature, AFC does not prepare its consolidated financial statements using a
current-noncurrent format. Consequently, certain traditional ratios and
financial analysis tests are not meaningful.
1995 MERGER
On March 23, 1995, shareholders of American Premier Underwriters, Inc.
("American Premier") approved a transaction whereby the owners of 100% of AFC's
Common Stock will exchange their shares for approximately 55% of the voting
shares of a newly formed holding company, American Premier Group, Inc. ("New
American Premier"), making AFC a subsidiary of New American Premier. In
addition, American Premier will merge with a newly formed subsidiary of New
American Premier and all shareholders of American Premier, including AFC and
its subsidiaries, will receive shares of New American Premier common stock on a
one-for-one basis. Consummation of the merger is pending receipt of a ruling
from the Internal Revenue Service which is expected at the end of March or
early April. See Note A to the financial statements.
Following the merger, AFC expects to borrow funds from American Premier
to retire substantial portions of its debt. Which issues and how much of AFC's
debt will be retired and what rate of interest will be charged on funds
borrowed from American Premier have not been determined. The balance sheet
effects of any such debt retirements are not expected to be material. The
earnings effect will depend primarily on the difference, if any, between the
interest rate charged by American Premier and the rates on the debt to be
retired.
34
<PAGE> 37
LIQUIDITY AND CAPITAL RESOURCES
Ratios The following ratios may be considered relevant indicators of AFC's
liquidity and are typically presented by AFC in its prospectuses and similar
documents. Management believes that balance sheet ratios (debt-to-equity) are
more meaningful on a parent only basis. On the other hand, earnings statement
ratios (fixed charges) are more meaningful on a total enterprise basis since
the parent only ratio is dependent, to a great degree, on the discretionary
nature of dividend payments from subsidiaries.
The ratio of AFC's (parent only) long-term debt to equity (excluding
Capital Subject to Mandatory Redemption) was 1.24, 1.06 and 1.99 at December
31, 1994, 1993, and 1992, respectively. Ratios of earnings to fixed charges,
excluding and including preferred dividends, for the three years ended December
31, 1994, are shown below.
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Earnings to fixed charges 1.69 2.62 2.15
Earnings to fixed charges plus preferred
dividends 1.40 2.26 1.94
</TABLE>
The National Association of Insurance Commissioners has adopted a model
law enacting risk based capital ("RBC") formulas which applies to both life and
property and casualty companies. The RBC formulas determine the amount of
capital that an insurance company needs to ensure that it has an acceptably low
expectation of becoming financially impaired. At December 31, 1994, the
capital ratios of all AFC insurance companies exceed the RBC requirements by
substantial amounts.
Sources of Funds A wholly-owned subsidiary, Great American Holding Corporation
("GAHC"), has a revolving credit agreement with several banks under which it
can borrow up to $300 million. The credit line converts to a four-year term
loan with scheduled principal payments to begin in March 1997. Borrowings
under the credit line are made by GAHC and are advanced to AFC. The line is
guaranteed by AFC and secured by 50% of the stock of Great American Insurance
Company ("GAI"). Borrowings, repayments and interest payments on the line are
included in "net advances from (to) affiliates" in the following table. At
December 31, 1994, GAHC had borrowings of $160 million outstanding under the
agreement.
35
<PAGE> 38
Funds to meet the parent company's expenditures have been provided from
a variety of sources within the holding company, from subsidiaries and directly
from outside sources, as detailed in the following table (in millions):
<TABLE>
<CAPTION>
Cash provided by: 1994 1993 1992
---- ---- ----
<S> <C> <C> <C> <C>
Operations:
Dividends from subsidiaries $ 17.3 $128.2 $ 67.0
Tax allocation payments from subsidiaries 65.9 72.2 128.7
Interest and dividends from others 4.4 5.4 9.0
Receipts on notes and lease receivables 0.2 0.3 0.9
Federal income tax refunds 0.3 - 18.3
------ ------ ------
From operations 88.1 206.1 223.9
Other transactions:
Net advances from affiliates 135.8 - -
Sales of assets to non-affiliates 15.0 107.1 25.6
Sales of assets to affiliates - 17.3 3.2
Sales of affiliates 6.0 1.8 139.0
Sale of Preferred Stock - - 15.0
Additional borrowings 0.7 10.0 0.8
Other 10.5 21.5 6.8
------ ------ ------
Total cash provided 256.1 363.8 414.3
Cash utilized for:
Operations:
Interest payments 61.8 66.7 67.7
Dividend payments 29.5 28.0 29.0
Federal income tax payments 28.6 48.3 22.2
Other holding company costs 36.0 41.7 36.8
------ ------ ------
For operations 155.9 184.7 155.7
Other transactions:
Net advances to affiliates - 138.6 225.5
Purchases of affiliates and other
investments - 29.5 42.7
Principal payments on debt 89.9 9.1 17.5
Repurchases of Preferred Stock 6.7 2.6 10.5
Other 1.4 5.4 0.6
------ ------ ------
Total cash utilized 253.9 369.9 452.5
------ ------ ------
Net increase (decrease) in cash and short-term investments 2.2 (6.1) (38.2)
Cash and short-term investments at beginning
of period 2.7 8.8 47.0
------ ------ ------
Cash and short-term investments at end
of period $ 4.9 $ 2.7 $ 8.8
====== ====== ======
</TABLE>
AFC and certain subsidiaries have arrangements among themselves under
which they may borrow from each other from time to time for short-term working
capital needs. Certain AFC subsidiaries have revolving credit facilities with
banks (including those mentioned herein) which may be used for various
corporate purposes. These facilities aggregated approximately $370 million of
which $164 million was available at December 31, 1994.
Generally, over 90% of the dividends (including non-cash dividends)
received from subsidiaries have been from GAI. Payments of dividends by GAI
are subject to various laws and regulations which limit the amount of dividends
that can be paid without regulatory approval. Under Ohio law, the maximum
amount of dividends which may be paid without (i) prior approval or (ii)
expiration of a 30 day waiting period without disapproval is the greater of
statutory net income or 10% of policyholders' surplus as of the preceding
December 31, but only to the extent of earned surplus as of the preceding
December 31. The maximum amount of
36
<PAGE> 39
dividends payable (without prior approval) in 1995 from GAI based on its 1994
policyholders' surplus is approximately $95 million.
For statutory accounting purposes, equity securities are generally
carried at market value with changes in aggregate market value directly
affecting policy-holders' surplus. At December 31, 1994, AFC's insurance
companies owned publicly traded equity securities of affiliates with a market
value of $914 million, including equity securities of AFC subsidiaries of $485
million. Since significant amounts of affiliated investments are concentrated
in a relatively small number of companies, volatility in the market prices of
these stocks could adversely affect the insurance group's policyholders'
surplus, potentially impacting the amount of dividends available or
necessitating a capital contribution.
Under tax allocation agreements with AFC, 80%-owned U.S. subsidiaries
generally compute tax provisions as if filing a separate return based on book
taxable income computed in accordance with generally accepted accounting
principles. The resulting provision (or credit) is currently payable to (or
receivable from) AFC. Following the 1995 merger, AFC and American Premier will
each continue to file consolidated returns as common parents of separate
consolidated tax groups.
Management believes AFC has sufficient resources to meet its liquidity
requirements through operations in the short-term and long-term future. If
funds generated from operations, including dividends from subsidiaries, are
insufficient to meet fixed charges in any period, AFC would be required to meet
such charges through bank borrowings, sales of securities or other assets, or
similar transactions.
Uncertainties In exchange for $5 million, AFC has agreed to indemnify Spelling
Entertainment Group Inc. for up to $35 million in excess of a threshold amount
of $25 million of the costs Spelling may incur in the 12 years beginning April
1, 1993 to resolve Spelling's environmental matters, bankruptcy claims and
certain other matters. Additionally, an AFC subsidiary has responsibility for
environmental costs, which are estimated to be between $8.6 million and $14
million, associated with the sales of former manufacturing properties. The
subsidiary has reserved $11.7 million at December 31, 1994.
Great American's liability for unpaid losses and loss adjustment
expenses includes amounts for various liability coverages related to
environmental and hazardous product claims. The insurance industry typically
includes only claims relating to polluted waste sites and asbestos in defining
environmental exposures, whereas Great American extends this definition to
include claims relating to breast implants, repetitive stress on keyboards, DES
(a drug used in pregnancies years ago alleged to cause cancer and birth
defects), and other latent injuries. At December 31, 1994, Great American had
recorded $227 million (net of reinsurance recoverables of $155 million) for
environmental pollution and hazardous products claims on policies written many
years ago where, in most cases, coverage was never intended. Due to
inconsistent court decisions on many coverage issues and the difficulty in
determining standards acceptable for cleaning up pollution sites, significant
uncertainties exist which are not likely to be resolved in the near future.
While the results of all such uncertainties cannot be predicted, based
upon its knowledge of the facts, circumstances and applicable laws, management
believes that sufficient reserves have been provided.
37
<PAGE> 40
Capital Requirements AFC is not heavily engaged in capital-intensive
businesses and therefore does not have substantial capital resource
requirements to the same extent that other companies might. Cash expenditures
for property, plant and equipment were $16 million, $32 million and $53 million
in 1994, 1993 and 1992, respectively.
Management of AFC has always believed in the use of leverage (borrowing
funds at predetermined rates) to increase the return on its equity.
Historically, AFC has relied more on the use of fixed-rate debt and preferred
stock issuances in its financing activities. AFC borrows from both public and
private sources, with parent only debt at December 31, 1994, coming almost
entirely from public sources.
Whenever possible, AFC tries to do its financing on a long-term basis,
even if the current costs associated are slightly higher. At December 31,
1994, the average maturity of AFC's borrowings on a parent only basis was
approximately 7 years; the average interest rate on those borrowings was 10.7%.
Comparable figures for three years ago are 8 years maturity and 11.6% stated
interest rate (12.9% effective rate).
AFC often extends the maturities of its long-term debt through exchange
offers which strengthen AFC's capital structure and enable it to utilize the
cash savings for other corporate purposes. In April 1994, AFC issued $203.8
million of 9-3/4% Debentures due April 20, 2004 in exchange for a portion of
its publicly traded debentures. A cash premium of $6.5 million on the
debentures exchanged is included in Extraordinary Items in the Statement of
Operations. AFC also redeemed at par all 13-1/2% Debentures not tendered in
the exchange for approximately $63.2 million in cash.
Following its merger with a newly formed subsidiary of New American
Premier in 1995, AFC intends to repay or redeem substantial amounts of its debt
with proceeds of up to $625 million of borrowings from American Premier under
long-term subordinated notes payable. Interest payments on parent company debt
afterwards are expected to approximate $50 million to $55 million annually
through 1999, a significant portion of which will be payable to American
Premier. Dividend payments on preferred stock are expected to be $25 million
annually for the same period.
Investments Approximately three-fifths of AFC's consolidated assets are
invested in marketable securities (excluding investment in equity securities of
investee corporations). AFC's investment philosophy is briefly summarized in
the following paragraphs.
AFC attempts to optimize investment income while building the value of
its portfolio, placing emphasis upon long-term performance. AFC's goal is to
maxi-mize return on an ongoing basis rather than focusing on year-by-year
performance.
Significant portions of equity and, to a lesser extent, fixed income
investments are concentrated in a relatively limited number of major positions.
This approach allows management to more closely monitor these companies and the
industries in which they operate. Some of the investments, because of their
size, may not be as readily marketable as the typical small investment
position. Alternatively, a large equity position may be attractive to persons
seeking to control or influence the policies of a company. While management
believes this investment philosophy will produce higher overall returns, such
concentrations subject the portfolio to greater risk in the event one of the
companies invested in becomes financially distressed.
38
<PAGE> 41
Fixed income investment funds are generally invested in securities with
short-term and intermediate-term maturities with an objective of maximizing
interest and dividend yields. This practice allows additional flexibility in
reacting to market conditions.
Approximately 94% of the bonds and redeemable preferred stocks held by
AFC were rated "investment grade" (credit rating of AAA to BBB) at December 31,
1994, compared to less than 60% at the end of 1988. Investment grade
securities generally bear lower yields and lower degrees of risk than those
that are unrated and non-investment grade.
The realization of capital gains, primarily through sales of equity
securities, has been an integral part of AFC's investment program. Individual
securities are sold creating gains or losses as market opportunities exist.
Pretax capital gains (losses) recognized upon disposition of securities,
including investees, during the past five years have been: 1994 - $50 million;
1993 - $165 million; 1992 - $104 million; 1991 - $38 million and 1990 - ($89
million.)
At December 31, 1994, AFC had gross unrealized gains and losses on bonds
and redeemable preferred stocks and equity securities as follows (in millions):
<TABLE>
<CAPTION>
Gross Unrealized Net
------------------------ Unrealized
Gains Losses Gain (Loss)
----- ------- -----------
<S> <C> <C> <C>
Bonds and redeemable preferred stocks:
Held to maturity $ 7.7 ($300.6) ($292.9)
Available for sale 5.6 (81.8) (76.2)
------ ------- -------
13.3 (382.4) (369.1)
Equity securities 72.0 (0.4) 71.6
------ ------- -------
$ 85.3 ($382.8) ($297.5)
====== ======= =======
</TABLE>
When a decline in the value of a specific investment is considered to be
other than temporary, a provision for impairment is charged to earnings and the
carrying value of that investment is reduced.
At December 31, 1994, AFC's mortgage-backed securities portfolio, which
consisted primarily of collateralized mortgage obligations ("CMOs"),
represented approximately 25% of AFC's bonds and mandatory redeemable preferred
stocks. At that date, interest only (I/Os), principal only (P/Os) and other
"high risk" CMOs represented approximately eight-tenths of one percent of AFC's
total mortgage-backed securities portfolio. AFC invests primarily in CMOs
which are structured to minimize prepayment risk. In addition, the majority of
CMOs held by AFC were purchased at discounts to par value. Management believes
that the structure and discounted nature of the CMOs will minimize the effect
of prepayments on earnings over the anticipated life of the CMO portfolio.
Substantially all of AFC's CMOs are rated "AAA" by Standard & Poor's
Corporation and are collateralized primarily by GNMA, FNMA and FHLMC
single-family residential pass-through certificates. The market in which these
securities trade is highly liquid. Aside from interest rate risk, AFC does not
believe a material risk (relative to earnings and liquidity) is inherent in
holding such investments.
39
<PAGE> 42
RESULTS OF OPERATIONS - THREE YEARS ENDED DECEMBER 31, 1994
General Due to decreases in ownership percentages, AFC ceased
accounting for American Premier and Spelling as subsidiaries and began
accounting for them as investees in April 1993 and July 1992, respectively.
AFC had accounted for American Premier as a subsidiary from 1992 through the
first quarter of 1993 due to AFC's ownership exceeding 50%. As a result of
these changes, current year income statement components are not comparable to
prior years and are not indicative of future years.
Pretax earnings were $44 million in 1994 compared to $262 million in
1993 and a pretax loss of $145 million in 1992.
Results for 1994 include AFC's share ($28 million) of American Premier's
loss on the sale of General Cable notes, GAI's $19 million charge
relating to a rate rollback liability in California and a $35 million
charge related to payments under AFC's Book Value Incentive Plan. These
items were partially offset by a $42 million decrease in interest
expense.
Results for 1993 include (i) $155 million in gains from the sales of
AFC's insurance agency operations, Spelling Entertainment Group and 4.5
million shares of American Premier and additional proceeds received on
the 1990 sale of the NSA Group, and (ii) AFC's share ($52 million) of a
tax benefit recorded by American Premier in the second, third and fourth
quarters of 1993. These items were partially offset by a write-off of
debt discount and expenses of $24 million.
Operating difficulties at two major investees caused significant losses
for AFC in 1992, partially offset by the benefit from the effect of the
accounting change as required by SFAS No. 109 and a gain on the sale of
Kings Island.
Property and Casualty Insurance - Underwriting Underwriting profitability is
measured by the combined ratio which is a sum of the ratio of underwriting
expenses to premiums written and the ratio of losses and loss adjustment
expenses to premiums earned. When the combined ratio is under 100%,
underwriting results are generally considered profitable; when the ratio is
over 100%, underwriting results are generally considered unprofitable. The
combined ratio does not reflect investment income, other income or federal
income taxes.
The combined underwriting ratio (statutory basis, after policyholders'
dividends) of GAI and its property and casualty insurance subsidiaries ("Great
American") was 103.6% in 1994, 103.9% in 1993 and 105.0% in 1992. Total net
losses to AFC's insurance operations from catastrophes (natural disasters and
other incidents of major loss) were $51 million in 1994, $26 million in 1993
and $42 million in 1992. The 1994 catastrophes included $20.0 million ($20.2
million before reinsurance) related to winter storms and $19 million ($41
million before reinsurance) related to the Northridge, California earthquake.
These losses represented 1.5% and 1.4% of Great American's combined ratio. The
1994 ratio does not reflect Great American's charge for California's
Proposition 103.
To understand the overall profitability of particular lines, timing of
claims payments and the related impact of investment income must be considered.
Certain "short-tail" lines of business (primarily property coverages) have
quick loss payouts which reduce the time funds are held, thereby limiting
investment income earned thereon. On the other hand, "long-tail" lines of
business (primarily liability coverages and workers' compensation) have payouts
that are either structured over many years or take many years to settle,
thereby significantly increasing investment income earned on related premiums
received.
40
<PAGE> 43
While Great American desires and seeks to earn an underwriting profit on
all of its business, it is not always possible to do so. As a result, the
company attempts to expand in the most profitable areas and control growth or
even reduce its involvement in the least profitable ones.
In recent years, many commercial lines markets have been extremely
competitive as predicted premium rate increases have not materialized.
Workers' compensation, in particular, has been especially hard hit by
competition, rising benefit levels and claims fraud. Many states have begun to
address these problems and, in the last couple of years, Great American has
focused its efforts toward those markets where improvements are evident.
In 1994, Great American's underwriting results significantly
outperformed the industry average for the ninth consecutive year. Great
American has been able to exceed the industry's results by focusing on highly
specialized niche products, supplemented by commercial lines coverages and
personal automobile products.
An unusually large loss for "property and multiple peril" coverage in
1992 generally reflects the effects of Hurricanes Andrew and Iniki.
Unusually good results for "workers' compensation and other liability"
coverage in 1992 and 1994 generally reflect reductions in redundant reserves on
certain matured coverages, and general improvement in 1994 in workers'
compensation due to industry-wide reforms, improved pricing, and favorable
trends in medical care inflation and incidents of fraud, along with emphasis on
specific programs (i.e. Drug- Free Workplace) and a focus on profitable pockets
of business and classes.
An unusually large loss for "all other" coverage in 1994 generally
reflects the effects of the Northridge, California earthquake and poor results
from an industrial risk pool arrangement.
See the discussion of Underwriting and Loss and Loss Adjustment Expense
Reserves under Item 1 - "Business - Great American Insurance Group".
1994 compared to 1993 Property and casualty premiums decreased $116
million (8%) in 1994 reflecting the deconsolidation of American Premier's
insurance operations. Insurance premiums for the remainder of AFC's insurance
group increased $138 million due to an increase in sales of specialized niche
products and workers' compensation and an increase in the percentage of
business retained in specialty lines.
1993 compared to 1992 Property and casualty insurance premiums
decreased $657 million (31%) in 1993 reflecting the deconsolidation of American
Premier. Premiums for the remainder of AFC's insurance group were virtually
unchanged.
Investment Income Changes in investment income reflect fluctuations in market
rates and changes in average invested assets.
1994 compared to 1993 Excluding American Premier, investment income
increased $20 million (4%) due to an increase in average investments held.
1993 compared to 1992 Investment income decreased $87 million (13%) in
1993 reflecting the deconsolidation of American Premier in 1993, partially
offset by an increase in average investments held.
Investee Corporations Equity in net earnings of investee corporations
(companies in which AFC owns a significant portion of the voting stock)
represents AFC's proportionate share of the investees' earnings and losses.
41
<PAGE> 44
1994 compared to 1993 AFC's equity in net earnings (losses) of investee
corporations in 1994 includes its share ($28 million) of American Premier's
loss on the sale of General Cable notes and its share ($52 million) of American
Premier's tax benefit in 1993. Chiquita's loss before extraordinary items was
comparable in 1994 and 1993 as improvements in Meat Division operations and
banana pricing were offset by charges and losses relating to farm closings and
banana cultivation write-downs in Honduras and a substantial reduction of
Chiquita's Japanese banana trading operations.
1993 compared to 1992 AFC's equity in the net earnings of investees in
1993 was $70 million compared to a loss of $339 million in 1992. The principal
items responsible for this improvement were (i) the absence of losses from GACC
in 1993 compared to AFC's loss of $187 million from that investment in 1992,
(ii) a $107 million improvement from Chiquita's operations and (iii) $92
million in earnings from American Premier which became an investee in the
second quarter of 1993 when AFC's ownership declined below 50%.
Gains on Sales of Investees The gain on sale of investees in 1994 represents a
pretax gain on the sale of General Cable common stock.
The gains on sales of investees in 1993 include (i) a pretax gain of $52
million in the first quarter on the sale of Spelling and (ii) a pretax gain of
$28 million in the third quarter on the public sale by AFEI of 4.5 million
shares of American Premier common stock.
Gains on Sales of Subsidiaries The gains on sales of subsidiaries in 1993
include fourth quarter pretax gains of (i) $44 million from the sale of
American Business Insurance, Inc. and (ii) $31 million representing an
adjustment on the 1990 sale of AFC's non-standard automobile insurance group to
American Premier.
The gain on sale of subsidiary in 1992 represents a pretax gain from the
sale of Kings Island Theme Park.
Sales of Other Products and Services Sales shown below (in millions) include
those of American Premier (from January 1992 to March 1993), Spelling
Entertainment Group (through June 1992), Spelling Entertainment Inc. (through
June 1992) and Kings Island Theme Park (through September 1992).
<TABLE>
<CAPTION>
1993 1992
---- ----
<S> <C> <C>
Federal Systems $ 99.2 $ 414.0
Diversified Products and Services 52.9 255.4
Petroleum Products - 159.7
Entertainment - 118.8
Kings Island Theme Park - 83.0
------ --------
$152.1 $1,030.9
====== ========
</TABLE>
Sales of Federal Systems and Diversified Products and Services represent
American Premier's revenues from systems and software engineering services and
the manufacture and supply of industrial products and services. Sales of
petroleum products reflect Spelling's revenues from petroleum marketing
activities. Entertainment revenues reflect Spelling's television production
and distribution operations.
The deconsolidation of American Premier and Spelling and the sale of
Kings Island accounted for the decrease in revenues from sales of other
products and services in 1993 compared to 1992.
42
<PAGE> 45
Benefits to Annuity Policyholders For GAAP financial reporting purposes,
GALIC's annuity receipts are accounted for as interest-bearing deposits
("annuity policyholders' funds accumulated") rather than as revenues. Under
these contracts, policyholders' funds are credited with interest on a
tax-deferred basis until withdrawn by the policyholder. The rate at which
GALIC credits interest on annuity policyholders' funds is subject to change
based on management's judgment of market conditions.
Annuity receipts totaled $443 million in 1994, $400 million in 1993 and
$360 million in 1992. Annuity receipts in 1994 increased 10.6% over 1993 due
to strong growth in sales of single premium products. Receipts in 1993
increased primarily due to the introduction of new single premium products in
the second half of 1992. Annuity surrender payments have averaged
approximately 8% of statutory reserves over the past three years.
1994 compared to 1993 Benefits to annuity policyholders increased $13
million (6%) primarily due to an increase in average annuity policyholder funds
accumulated.
1993 compared to 1992 Benefits to annuity policyholders decreased $13
million (5%) in 1993 due to a reduction in rates being credited to
policyholders. The effect of this decrease more than offset an increase of 7%
in the average amount of accumulated policyholders' funds held.
Interest on Borrowed Money Changes in interest expense result from
fluctuations in market rates as well as changes in borrowings. AFC has
generally financed its borrowings on a long-term basis which has resulted in
higher current costs.
Interest expense included in AFC's consolidated Statement of Operations
was comprised of (in millions):
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
AFC Parent $ 56.9 $ 71.1 $ 70.6
Great American Holding 24.7 23.4 34.2
American Annuity 20.9 21.2 -
Great American Insurance 11.9 14.0 14.3
American Premier - 17.2 69.2
Spelling - - 4.7
Other Companies .8 10.3 22.9
------ ------ ------
$115.2 $157.2 $215.9
====== ====== ======
</TABLE>
AFC Parent's interest expense decreased in 1994 due to (i) the issuance
of $204 million of 9-3/4% Debentures in exchange for higher rate debt and (ii)
the repurchase of $79 million principal amount of debentures. GAHC's interest
expense decreased in 1993 due to repayments of bank borrowings in 1992 and
1993. American Annuity borrowed approximately $230 million in December 1992 to
acquire GALIC. The decrease in other companies' interest expense is due
primarily to the sale of a subsidiary in 1992 and repayments of borrowings in
1993.
43
<PAGE> 46
Other Operating and General Expenses Operating and general expenses included
the following charges (credits) (in millions):
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Proposition 103 $19 $- $-
Allowance for bad debts 18 10 (3)
Minority interest 9 35 38
Writeoff of debt discount
and issue costs - 24 -
Relocation expenses - 8 -
</TABLE>
Allowance for bad debts includes charges for possible losses on agents'
balances, reinsurance recoverables and other receivables. Relocation expenses
represent the estimated costs of moving GALIC's operations from Los Angeles to
Cincinnati.
Income Taxes See Note L to the Financial Statements for an analysis of other
items affecting AFC's effective tax rate. Certain subsidiaries were not able
to recognize tax benefits on significant operating losses in 1992, accordingly,
AFC's effective tax rate was greater than the normal rate of 34%.
In 1992, AFC implemented SFAS No. 109, "Accounting for Income Taxes".
The cumulative effect of implementing this statement resulted in a benefit of
$85.4 million to net earnings for the recognition of previously unrecognized
tax benefits. The 1993 provision for income tax includes a $15 million first
quarter benefit due to American Premier's revision of estimated future taxable
income likely to be generated during the company's tax loss carryforward
period.
Recent Accounting Standards The following Statements of Financial Accounting
Standards ("SFAS") have been implemented by AFC in 1992, 1993 or 1994 or will
be implemented in 1995. The implementation of these standards is discussed
under various subheadings of Note B to the Financial Statements; effects of
each are shown in relevant Notes. Implementation of SFAS No. 114 in the first
quarter of 1995 is not expected to have a significant effect on AFC.
<TABLE>
<CAPTION>
Note B
SFAS# Subject of Standard (Year Implemented) Reference
----- -------------------------------------------------------- --------------
<S> <C> <C> <C>
106 Certain Postretirement Benefits (1993) "Benefit Plans"
107 Fair Values (1992) "Fair Value"
109 Income Taxes (1992) "Income Taxes"
112 Certain Employment Benefits (1994) "Benefit Plans"
113 Reinsurance (1993) "Insurance"
114 Impairment of Loans (1995) -n/a-
115 Investment in Securities (1993) "Investments"
119 Derivative Financial Instruments (1994) -n/a-
</TABLE>
Other standards issued in recent years did not apply to AFC or had only
negligible effects on AFC.
44
<PAGE> 47
ITEM 8
Financial Statements and Supplementary Data
<TABLE>
<CAPTION>
Page
----
<S> <C>
Reports of Independent Auditors F-1
Consolidated Balance Sheet:
December 31, 1994 and 1993 F-4
Consolidated Statement of Operations:
Years ended December 31, 1994, 1993 and 1992 F-5
Consolidated Statement of Changes in Capital Accounts:
Years ended December 31, 1994, 1993 and 1992 F-6
Consolidated Statement of Cash Flows:
Years ended December 31, 1994, 1993 and 1992 F-7
Notes to Consolidated Financial Statements F-8
</TABLE>
"Selected Quarterly Financial Data" has been included in Note Q to the
Consolidated Financial Statements.
45
<PAGE> 48
PART III
ITEM 10
Directors and Executive Officers of the Registrant
The directors and executive officers of AFC at March 1, 1995, are:
<TABLE>
<CAPTION>
Executive
Name Age Position Since
- ------------------ --- ---------------------------- ---------
<S> <C> <C> <C>
Carl H. Lindner 75 Chairman of the Board and Chief 1959
Executive Officer
Richard E. Lindner 73 Director 1959
Robert D. Lindner 74 Vice Chairman of the Board 1959
Ronald F. Walker 56 Director, President and Chief 1973
Operating Officer
Carl H. Lindner III 41 President of GAI and President 1987
and Chief Operating Officer of
American Premier
S. Craig Lindner 39 President of AAG and Senior Executive 1981
Vice President of AMM
James E. Evans 49 Vice President and General Counsel 1976
Sandra W. Heimann 52 Vice President 1984
Robert C. Lintz 61 Vice President 1979
Thomas E. Mischell 47 Vice President 1985
Fred J. Runk 52 Vice President and Treasurer 1978
</TABLE>
Carl H. Lindner has served as Chairman of the Board and Chief Executive
Officer of AFC for more than five years. He serves in similar capacities with
various AFC subsidiaries. He serves as Chairman of the Board of the following
public companies: American Annuity Group, Inc. ("AAG"), American Financial
Enterprises, Inc. ("AFEI"), American Premier, Chiquita and Citicasters. AFC
owns a substantial beneficial interest (over 20%) in all of these companies.
Richard E. Lindner was owner, Chairman of the Board of Directors,
President and Chief Executive Officer of Thriftway, Inc., a supermarket chain
otherwise unaffiliated with AFC, and had been associated with that company for
over five years prior to its sale in March 1995.
Robert D. Lindner, for more than five years, has served as Vice Chairman
of the Board of Directors of AFC. In addition, he is Chairman of the Board of
United Dairy Farmers, Inc. ("UDF") which, among other things, is engaged
through subsidiaries in dairy processing and the operation of convenience
stores. He is also a director of AFEI.
Ronald F. Walker has served as President and Chief Operating Officer of
AFC for more than five years. He is also Vice Chairman of the Board of
Directors of GAI and holds executive positions in most of AFC's other
subsidiaries. He is also a director of AAG, AFEI, Chiquita and Tejas Gas
Company.
Carl H. Lindner III has been President of GAI for more than five years.
He holds executive positions in many of GAI's subsidiaries. He has also been
President and Chief Operating Officer of American Premier since 1991.
46
<PAGE> 49
S. Craig Lindner has been Senior Executive Vice President of American
Money Management Corporation ("AMM"), a subsidiary of AFC which provides
investment services to AFC and its subsidiaries, for more than five years. He
was elected President of AAG in March 1993.
James E. Evans has served as a Vice President and the General Counsel of
AFC for more than five years.
Sandra W. Heimann has been a Vice President of AFC and an executive
officer of AMM for more than five years.
Robert C. Lintz has been a Vice President of AFC and an executive officer
of AMM for more than five years.
Thomas E. Mischell has been a Vice President of AFC for more than five
years.
Fred J. Runk has served as Vice President and Treasurer of AFC for more
than five years.
Carl H. Lindner, Robert D. Lindner and Richard E. Lindner are brothers.
Carl H. Lindner III and S. Craig Lindner are sons of Carl H. Lindner.
All of the executive officers of AFC devote substantially all of their
time to the affairs of AFC and its subsidiaries. All of the above are United
States citizens.
In December 1993, Great American Communications completed a comprehensive
financial restructuring which included a prepackaged plan of reorganization
filed in November of that year under Chapter 11 of the Bankruptcy Code. Carl
H. Lindner, Thomas E. Mischell and Fred J. Runk were executive officers of that
company within two years before its bankruptcy reorganization.
The information required by the following Items will be provided within
120 days after the end of Registrant's fiscal year.
ITEM 11 Executive Compensation
ITEM 12 Security Ownership of Certain Beneficial Owners and
Management
ITEM 13 Certain Relationships and Related Transactions
47
<PAGE> 50
REPORTS OF INDEPENDENT AUDITORS
Board of Directors
American Financial Corporation
We have audited the accompanying consolidated balance sheets of American
Financial Corporation and subsidiaries as of December 31, 1994 and 1993, and
the related consolidated statements of operations, changes in capital accounts,
and cash flows for each of the three years in the period ended December 31,
1994. Our audits also included the financial statement schedules listed in the
Index at Item 14(a). These financial statements and schedules are the
responsibility of the Corporation's management. Our responsibility is to
express an opinion on these financial statements and schedules based on our
audits. We did not audit the financial statements of American Premier
Underwriters, Inc. and General Cable Corporation (1993 and 1992). Those
statements were audited by other auditors whose reports have been furnished to
us. The reports pertaining to the statements of American Premier Underwriters,
Inc. and General Cable Corporation included explanatory paragraphs that
described their change in method of accounting for income taxes in 1992. Our
opinion on the consolidated financial statements and schedules, insofar as it
relates to data included for those corporations as described in Note F, is
based solely on the reports of other auditors.
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 and the reports of other
auditors provide a reasonable basis for our opinion.
In our opinion, based on our audits and the reports of other auditors, the
consolidated financial statements referred to above present fairly, in all
material respects, the consolidated financial position of American Financial
Corporation and subsidiaries at December 31, 1994 and 1993, and the
consolidated results of their operations and their cash flows for each of the
three years in the period ended December 31, 1994, in conformity with generally
accepted accounting principles. Also, in our opinion, the related financial
statement schedules, when considered in relation to the basic financial
statements taken as a whole, present fairly in all material respects the
information set forth therein.
As discussed in Note B to the consolidated financial statements, American
Financial Corporation and subsidiaries changed their method of accounting in
1993 for certain investments in debt and equity securities and in 1992 for
income taxes.
ERNST & YOUNG LLP
Cincinnati, Ohio
March 28, 1995
<PAGE> 51
REPORT OF AMERICAN PREMIER'S INDEPENDENT AUDITORS
American Premier Underwriters, Inc.
We have audited the financial statements and the financial statement schedules
of American Premier Underwriters, Inc. and Consolidated Subsidiaries listed in
the Index to Financial Statements and Financial Statement Schedules of American
Premier Underwriters, Inc.'s Form 10-K for the year ended December 31, 1994
(not presented separately herein). These financial statements and the
financial statement schedules are the responsibility of the Company's
management. Our responsibility is to express an opinion on the financial
statements and financial statement schedules 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, such financial statements present fairly, in all material
respects, the financial position of American Premier Underwriters, Inc. and
Consolidated Subsidiaries at December 31, 1994 and 1993 and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 1994 in conformity with generally accepted accounting principles.
Also, in our opinion, such financial statement schedules, when considered in
relation to the basic financial statements taken as a whole, present fairly in
all material respects the information shown therein.
As discussed in Note 7 to the financial statements, in 1992 the Company changed
its method of accounting for income taxes to conform with Statement of
Financial Accounting Standards No. 109.
DELOITTE & TOUCHE LLP
Cincinnati, Ohio
February 15, 1995
(March 23, 1995 with respect to the
acquisition of American Financial
Corporation as discussed in Note 2 to
American Premier's financial statements)
F-2
<PAGE> 52
REPORT OF GENERAL CABLE'S INDEPENDENT AUDITORS
General Cable Corporation:
We have audited the consolidated financial statements and related schedules of
General Cable Corporation and subsidiaries listed in Item 14(a) of the Annual
Report on Form 10-K of General Cable Corporation for the year ended December
31, 1993 (not presented separately herein). These consolidated financial
statements and related schedules are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated
financial statements and related schedules 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, such consolidated financial statements present fairly, in all
material respects, the financial position of General Cable Corporation and
subsidiaries at December 31, 1993 and 1992 and the results of their operations
and their cash flows for each of the three years in the period ended December
31, 1993 in conformity with generally accepted accounting principles. Also, in
our opinion, such consolidated financial statement schedules, when considered
in relation to the basic consolidated financial statements taken as a whole,
present fairly in all material respects the information shown therein.
As discussed in Notes 1 and 10 to the consolidated financial statements, in
1992 General Cable Corporation changed its method of accounting for income
taxes to conform with Statement of Financial Accounting Standards No. 109.
DELOITTE & TOUCHE
Cincinnati, Ohio
February 18, 1994
F-3
<PAGE> 53
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In Thousands)
<TABLE>
<CAPTION>
December 31,
---------------------------------
1994 1993
---- ----
<S> <C> <C>
Assets
Cash and short-term investments $ 171,335 $ 167,950
Investments:
Bonds and redeemable preferred stocks:
Held to maturity - at amortized cost
(market - $4,336,700 and $3,959,400) 4,629,633 3,788,732
Available for sale - at market
(amortized cost - $1,938,853 and $2,216,328) 1,862,653 2,349,528
Other stocks - principally at market
(cost - $137,106 and $207,056) 208,706 339,156
Investment in investee corporations 832,637 899,800
Loans receivable 641,964 630,932
Real estate and other investments 154,262 139,319
----------- -----------
8,329,855 8,147,467
Recoverables from reinsurers and prepaid
reinsurance premiums 902,063 756,060
Agents' balances and premiums receivable 363,156 297,423
Other receivables 197,119 214,324
Prepaid expenses, deferred charges and other assets 410,657 320,299
Cost in excess of net assets acquired 175,866 173,965
----------- -----------
$10,550,051 $10,077,488
=========== ===========
Liabilities and Capital
Unpaid losses and loss adjustment expenses $ 2,916,985 $ 2,723,867
Unearned premiums 824,691 674,890
Annuity policyholders' funds accumulated 4,618,108 4,256,674
Long-term debt:
Parent company 490,065 571,874
Subsidiaries 616,682 482,132
Accounts payable, accrued expenses and other
liabilities 579,151 672,362
Minority interest 105,506 109,219
----------- -----------
10,151,188 9,491,018
Capital subject to mandatory redemption 2,880 49,232
Preferred Stock (redemption value - $278,719
and $278,889) 168,484 168,588
Common Stock without par value 904 904
Retained earnings 223,095 210,846
Net unrealized gain on marketable securities,
net of deferred income taxes 3,500 156,900
----------- -----------
$10,550,051 $10,077,488
=========== ===========
</TABLE>
See notes to consolidated financial statements.
F-4
<PAGE> 54
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands)
<TABLE>
<CAPTION>
Year ended December 31,
----------------------------------------------------
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Income:
Property and casualty insurance premiums $1,378,628 $1,494,796 $2,151,400
Investment income 582,931 601,900 688,604
Realized gains on sales of securities 48,342 82,265 101,474
Equity in net earnings (losses) of
investee corporations (16,573) 69,862 (338,710)
Gains on sales of investee corporations 1,694 83,211 2,766
Gains on sales of subsidiaries - 75,309 64,483
Sales of other products and services - 152,100 1,030,877
Other income 107,758 161,260 227,956
---------- ---------- ----------
2,102,780 2,720,703 3,928,850
Costs and Expenses:
Property and casualty insurance:
Losses and loss adjustment expenses 986,996 1,064,108 1,554,702
Commissions and other underwriting
expenses 428,590 467,293 623,704
Benefits to annuity policyholders 241,811 228,609 241,600
Interest charges on borrowed money 115,162 157,219 215,900
Cost of sales - 134,900 886,238
Book Value Incentive Plan 34,740 991 (826)
Other operating and general expenses 251,913 405,598 552,386
---------- ---------- ----------
2,059,212 2,458,718 4,073,704
---------- ---------- ----------
Earnings (loss) before income taxes,
extraordinary items and cumulative
effect of accounting change 43,568 261,985 (144,854)
Provision for income taxes 24,650 37,296 17,446
---------- ---------- ----------
Earnings (loss) before extraordinary items and
cumulative effect of accounting change 18,918 224,689 (162,300)
Extraordinary items, net of income taxes (16,818) (4,559) -
Cumulative effect of accounting change - - 85,400
---------- ---------- ----------
Net Earnings (Loss) $ 2,100 $ 220,130 ($ 76,900)
========== ========== ==========
</TABLE>
See notes to consolidated financial statements.
F-5
<PAGE> 55
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL ACCOUNTS
(In Thousands)
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------------------------------
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Capital Subject to Mandatory Redemption:
Balance at beginning of period $ 49,232 $ 27,683 $ 81,939
Purchases and redemptions (6,625) (2,103) (10,460)
Increase (decrease) in capital subject
to put option (7,225) 23,652 (43,796)
Transfer to Retained Earnings (32,502) - -
-------- -------- --------
Balance at End of Period $ 2,880 $ 49,232 $ 27,683
======== ======== ========
Preferred Stock:
Balance at beginning of period $168,588 $168,588 $153,588
Sale to employee benefit plan - - 15,000
Purchase (104) - -
-------- -------- --------
Balance at End of Period $168,484 $168,588 $168,588
======== ======== ========
Common Stock:
Balance at Beginning and End of Period $ 904 $ 904 $ 904
======== ======== ========
Retained Earnings:
Balance at beginning of period $210,846 $ 42,402 $104,507
Net earnings (loss) 2,100 220,130 (76,900)
Purchase of Preferred Stock (56) - -
Deduct cash dividends paid or declared on:
Preferred Stock (25,728) (26,137) (26,155)
Common Stock (3,794) (1,897) (2,846)
Decrease (increase) in capital subject
to put option 7,225 (23,652) 43,796
Transfer from Capital Subject to
Mandatory Redemption 32,502 - -
-------- -------- --------
Balance at End of Period $223,095 $210,846 $ 42,402
======== ======== ========
Net Unrealized Gain on Marketable Securities,
Net of Deferred Income Taxes:
Balance at beginning of period $156,900 $ 68,100 $ 2,700
Change during period (153,400) 88,800 65,400
-------- -------- --------
Balance at End of Period $ 3,500 $156,900 $ 68,100
======== ======== ========
</TABLE>
See notes to consolidated financial statements.
F-6
<PAGE> 56
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands)
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------------------------------
<S> <C> <C> <C>
Operating Activities: 1994 1993 1992
---- ---- ----
Net earnings (loss) $ 2,100 $ 220,130 ($ 76,900)
Adjustments:
Extraordinary losses from retirement of debt 16,818 4,559 -
Cumulative effect of accounting change - - (85,400)
Depreciation and amortization 30,729 52,117 107,615
Benefits to annuity policyholders 241,811 228,609 241,600
Equity in net losses (earnings) of investees 16,573 (69,862) 338,710
Changes in reserves on assets 17,094 11,440 (1,452)
Realized gains on investing activities (59,609) (242,529) (169,686)
Writeoff of debt discount and issue costs - 30,054 -
Decrease (increase) in reinsurance and
other receivables (223,113) (238,166) 48,878
Increase in prepaid expenses, deferred
charges and other assets (96,596) (90,022) (115,815)
Increase in insurance claims and reserves 345,542 241,704 165,684
Increase in other liabilities 67,799 50,479 36,163
Increase in minority interest 6,773 37,057 19,656
Dividends from investees 21,567 25,575 24,313
Other, net (1,488) (37,062) 4,822
--------- --------- ----------
386,000 224,083 538,188
--------- --------- ----------
Investing Activities:
Purchases of and additional investments in:
Fixed maturity investments (1,726,318) (3,062,435) (4,718,486)
Equity securities (7,315) (20,224) (14,386)
Investees and subsidiaries (29,306) (27,578) (23,115)
Real estate, property and equipment (27,185) (41,762) (71,964)
Maturities and redemptions of fixed maturity
investments 420,945 757,473 1,187,232
Sales of:
Fixed maturity investments 694,947 1,498,432 2,348,529
Equity securities 127,181 221,467 88,475
Investees and subsidiaries 27,621 255,517 212,000
Real estate, property and equipment 6,151 65,782 14,155
Cash and short-term investments of former
subsidiaries - (310,225) (16,009)
Decrease (increase) in other investments (5,571) 1,435 62,370
--------- ---------- ----------
(518,850) (662,118) (931,199)
--------- ---------- ----------
Financing Activities:
Annuity receipts 442,703 400,141 360,702
Annuity benefits and withdrawals (321,038) (337,878) (339,406)
Additional long-term borrowings 244,311 338,010 259,447
Reductions of long-term debt (193,481) (601,040) (294,493)
Issuances of capital stock - - 15,000
Repurchases of capital stock (6,738) (2,643) (10,549)
Cash dividends paid (29,522) (28,034) (29,001)
--------- ---------- ----------
136,235 (231,444) (38,300)
--------- ---------- ----------
Net Increase (Decrease) in Cash and Short-term Investments 3,385 (669,479) (431,311)
Cash and short-term investments at beginning of
period 167,950 837,429 1,268,740
---------- ---------- ----------
Cash and short-term investments at end of period $ 171,335 $ 167,950 $ 837,429
========== ========== ==========
</TABLE>
See notes to consolidated financial statements.
F-7
<PAGE> 57
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
_____________________________________________________________
INDEX TO NOTES
<TABLE>
<S> <C> <C> <C>
A. 1995 Merger K. Common Stock
B. Accounting Policies L. Income Taxes
C. Acquisitions and Sales of Subsidiaries M. Extraordinary Items
and Investees N. Pending Legal Proceedings
D. Segments of Operations O. Benefit Plans
E. Investments P. Transactions with Affiliates
F. Investment in Investee Corporations Q. Quarterly Operating Results
G. Cost in Excess of Net Assets Acquired R. Additional Information
H. Long-Term Debt S. Restrictions on Transfer of Funds
I. Capital Subject to Mandatory Redemption and Assets of Subsidiaries
J. Other Preferred Stock
</TABLE>
_____________________________________________________________
A. 1995 Merger On March 23, 1995, shareholders of American Premier
Underwriters, Inc. ("American Premier") approved the merger of American
Financial Corporation ("AFC") with a newly formed subsidiary of American
Premier Group, Inc. ("New American Premier"), another new company formed
to own 100% of the common stock of both AFC and American Premier. In the
transaction, Carl H. Lindner and members of his family, who own 100% of
the Common Stock of AFC, will exchange their AFC Common Stock for
approximately 55% of New American Premier voting common stock.
Shareholders of American Premier, including AFC and its subsidiaries,
will receive shares of New American Premier stock on a one-for-one basis.
No gain or loss will be recorded on the exchange of shares.
AFC will continue to be a separate SEC reporting company with publicly
traded debentures and preferred stock. Holders of AFC Series F and G
Preferred Stock will be granted voting rights equal to approximately 21%
of the total voting power of AFC shareholders immediately prior to the
merger. AFC and New American Premier have stated that they will likely
redeem substantial amounts of the debt of American Premier, AFC and AFC's
wholly-owned subsidiaries.
B. Accounting Policies
Basis of Presentation The consolidated financial statements include the
accounts of AFC and its subsidiaries. Changes in ownership levels of
subsidiaries and investees have resulted in certain differences in the
financial statements and have affected comparability between years.
Certain reclassifications have been made to prior years to conform to the
current year's presentation. All significant intercompany balances and
transactions have been eliminated. All acquisitions have been treated as
purchases. The results of operations of companies since their formation
or acquisition are included in the consolidated financial statements.
F-8
<PAGE> 58
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
AFC's ownership of subsidiaries and significant investees with publicly
traded shares at December 31, was as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
American Annuity Group, Inc. ("AAG") 80% 80% 82%
American Financial Enterprises, Inc. ("AFEI") 83% 83% 83%
American Premier Underwriters, Inc. 42% 41% 51%
Chiquita Brands International, Inc. 46% 46% 46%
Citicasters Inc. (formerly Great American 37% 20% 40%
Communications Company - "GACC")
General Cable Corporation (a) 45% 45%
Spelling Entertainment Group Inc. ("Spelling") - (b) 48%
</TABLE>
(a) Sold in June 1994.
(b) Sold in March 1993.
Investments AFC implemented Statement of Financial Accounting Standards
("SFAS") No. 115, "Accounting for Certain Investments in Debt and Equity
Securities," beginning December 31, 1993. This standard requires (i)
debt securities be classified as "held to maturity" and reported at
amortized cost if AFC has the positive intent and ability to hold them to
maturity, (ii) debt and equity securities be classified as "trading" and
reported at fair value, with unrealized gains and losses included in
earnings, if they are bought and held principally for selling in the near
term and (iii) debt and equity securities not classified as held to
maturity or trading be classified as "available for sale" and reported at
fair value, with unrealized gains and losses reported as a separate
component of shareholders' equity. Only in certain limited
circumstances, such as significant issuer credit deterioration or if
required by insurance or other regulators, may a company change its
intent to hold a certain security to maturity without calling into
question its intent to hold other debt securities to maturity in the
future. Implementation of SFAS No. 115 had no effect on net earnings.
Premiums and discounts on mortgage-backed securities are amortized over
their expected average lives using the interest method. Gains or losses
on sales of securities are recognized at the time of disposition with the
amount of gain or loss determined on the specific identification basis.
When a decline in the value of a specific investment is considered to be
other than temporary, a provision for impairment is charged to earnings
and the carrying value of that investment is reduced.
Short-term investments are carried at cost; loans receivable are stated
primarily at the aggregate unpaid balance.
Investment in Investee Corporations Investments in securities of 20%- to
50%-owned companies are carried at cost, adjusted for AFC's proportionate
share of their undistributed earnings or losses. Investments in less
than 20%-owned companies are accounted for by the equity method when, in
the opinion of management, AFC can exercise significant influence over
operating and financial policies of the investee.
Due to financial difficulties experienced by GACC, AFC ceased accounting
for it as an investee, transferred all GACC securities and loans to the
investee account and reduced the carrying value of the aggregate
investment to estimated net realizable value ($35 million) at the end of
1992. AFC resumed equity accounting for its investment in GACC following
GACC's reorganization at the end of 1993.
F-9
<PAGE> 59
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Cost in Excess of Net Assets Acquired The excess of cost of subsidiaries
and investees (purchased subsequent to October 1970) over AFC's equity in
the underlying net assets ("goodwill") is being amortized over 40 years.
The excess of AFC's equity in the net assets of other subsidiaries and
investees over its cost of acquiring these companies ("negative
goodwill") has been allocated to AFC's basis in these companies' fixed
assets, goodwill and other long-term assets and is amortized on a 10- to
40-year basis.
Insurance As discussed under "Reinsurance" below, unpaid losses and loss
adjustment expenses and unearned premiums have not been reduced for
reinsurance recoverable.
Reinsurance In the normal course of business, AFC's insurance
subsidiaries cede reinsurance to other companies to diversify risk and
limit maximum loss arising from large claims. To the extent that any
reinsuring companies are unable to meet obligations under the agreements
covering reinsurance ceded, AFC's insurance subsidiaries would remain
liable. Amounts recoverable from reinsurers are estimated in a manner
consistent with the claim liability associated with the reinsurance
policies. AFC's insurance subsidiaries report as assets (a) the
estimated reinsurance recoverable on unpaid losses, including an estimate
for losses incurred but not reported, and (b) amounts paid to reinsurers
applicable to the unexpired terms of policies in force. AFC's insurance
subsidiaries also assume reinsurance from other companies. Income on
reinsurance assumed is recognized based on reports received from ceding
reinsurers.
Deferred Policy Acquisition Costs Policy acquisition costs (principally
commissions, premium taxes and other underwriting expenses) related to
the production of new business are deferred and included in "Prepaid
expenses, deferred charges and other assets". For the property and
casualty companies, the deferral of acquisition costs is limited based
upon their recoverability without any consideration for anticipated
investment income. Deferred policy acquisition costs ("DPAC") are
charged against income ratably over the terms of the related policies.
For the annuity company, DPAC is amortized, with interest, in relation to
the present value of expected gross profits on the policies.
Unpaid Losses and Loss Adjustment Expenses The net liabilities stated
for unpaid claims and for expenses of investigation and adjustment of
unpaid claims are based upon (a) the accumulation of case estimates for
losses reported prior to the close of the accounting period on the direct
business written; (b) estimates received from ceding reinsurers and
insurance pools and associations; (c) estimates of unreported losses
based on past experience and (d) estimates based on experience of
expenses for investigating and adjusting claims. These liabilities are
subject to the impact of changes in claim amounts and frequency and other
factors. In spite of the variability inherent in such estimates,
management believes that the liabilities for unpaid losses and loss
adjustment expenses are adequate. Changes in estimates of the
liabilities for losses and loss adjustment expenses are reflected in the
Statement of Operations in the period in which determined.
Premium Recognition Premiums are earned over the terms of the policies
on a pro rata basis. Unearned premiums represent that portion of
premiums written
F-10
<PAGE> 60
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
which is applicable to the unexpired terms of policies in force. On
reinsurance assumed from other insurance companies or written through
various underwriting organizations, unearned premiums are based on
reports received from such companies and organizations.
Annuity Policyholders' Funds Accumulated Annuity receipts and benefit
payments are generally recorded as increases or decreases in "annuity
policyholders' funds accumulated" rather than as revenue and expense.
Increases in this liability for interest credited are charged to expense
and decreases for surrender charges are credited to other income.
Income Taxes AFC files consolidated federal income tax returns which
include all 80%-owned U.S. subsidiaries. Effective January 1, 1992, AFC
implemented SFAS No. 109, "Accounting for Income Taxes". Under SFAS No.
109, deferred income tax assets and liabilities are determined based on
differences between financial reporting and tax bases and are measured
using enacted tax rates. Deferred tax assets are recognized if it is
more likely than not that a benefit will be realized.
Benefit Plans AFC's Employee Stock Ownership Retirement Plan ("ESORP")
is a noncontributory, trusteed plan which invests in securities of AFC
and affiliates for the benefit of the employees of AFC and certain of its
subsidiaries. The ESORP covers all employees of participating companies
who are qualified as to age and length of service. Contributions are
discretionary by the directors of participating companies and are charged
against earnings in the year for which they are declared.
Under AFC's Book Value Incentive Plan, units were granted at initial
values between 80% and 120% of "book value" to key employees. Units were
exercisable at any time, to the extent vested. Prior to 1995, (i)
payments were made to the holder 50% in cash and the remainder in
installments over a ten-year period with an assumed interest factor of
12% per annum and (ii) the value of the units (the excess of the current
book value of a share of AFC Common Stock, as defined, over the initial
value of the units at the date of grant) was being accrued over the
vesting period (five years). In connection with the 1995 merger, full
vesting will be granted and the plan terminated. Cash payments to be
made to holders of the units were accrued at December 31, 1994.
AFC and many of its subsidiaries provide health care and life insurance
benefits to eligible retirees. The projected future cost of providing
these benefits is expensed over the period the employees qualify for such
benefits.
Effective January 1, 1994, AFC implemented SFAS No. 112, "Employers'
Accounting for Postemployment Benefits" which covers benefits provided to
former or inactive employees (primarily those on disability) who were not
deemed retired under other company plans. This standard requires
companies to accrue the projected future cost of providing postemployment
benefits instead of recognizing an expense for these benefits when paid.
The implementation of SFAS No. 112 did not have a material effect on
AFC's financial position or results of operations.
F-11
<PAGE> 61
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Debt Discount Debt discount and expenses are being amortized over the
lives of respective borrowings, generally on the interest method.
Unamortized balances are charged off in the event of early retirement of
the related debt.
Statement of Cash Flows For cash flow purposes, "investing activities"
are defined as making and collecting loans and acquiring and disposing of
debt or equity instruments and property and equipment. "Financing
activities" include obtaining resources from owners and providing them
with a return on their investments, borrowing money and repaying amounts
borrowed. Annuity receipts, benefits and withdrawals are also reflected
as financing activities. All other activities are considered
"operating". Short-term investments having original maturities of three
months or less when purchased are considered to be cash equivalents for
purposes of the financial statements.
Fair Value of Financial Instruments Methods and assumptions used in
estimating fair values are described in Note R to the financial
statements. These fair values represent point-in-time estimates of value
that might not be particularly relevant in predicting AFC's future
earnings or cash flows.
C. Acquisitions and Sales of Subsidiaries and Investees
General Cable In June 1994, AFC sold its investment in General Cable
common stock to an unaffiliated company for $27.6 million in cash. AFC
realized a $1.7 million pretax gain on the sale (excluding its share of
American Premier's loss on its sale of General Cable notes).
American Business Insurance In October 1993, AFC sold its insurance
brokerage operation, American Business Insurance, Inc., to Acordia, Inc.,
an Indianapolis-based insurance broker. AFC received approximately $50
million in cash, 800,000 shares of Acordia common stock and warrants to
purchase an additional 1.5 million Acordia shares at $25 per share. AFC
recognized a pretax gain of approximately $44 million on the sale.
American Premier In August 1993, AFEI, whose assets consisted primarily
of investments in American Premier, General Cable and AAG, sold 4.5
million shares of American Premier common stock in a secondary public
offering. AFEI used the net proceeds of approximately $151 million to
retire most of its debt. AFC recognized a pretax gain of $28.3 million,
before minority interest, on the sale, including recognition of a portion
of previously deferred gains related to sales of assets to American
Premier from AFC subsidiaries. In anticipation of the reduction of AFC's
ownership of American Premier below 50%, AFC ceased accounting for it as
a subsidiary and began accounting for it as an investee in April 1993.
In December 1993, American Premier paid AFC $52.8 million (including
$12.8 million in interest) representing an adjustment on the 1990 sale of
AFC's non-standard automobile group to American Premier. AFC recorded an
additional pretax gain of $31.4 million on this transaction after
deferring $21.4 million based on its ownership of American Premier.
F-12
<PAGE> 62
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Citicasters In connection with the completion of GACC's plan of
reorganization in December 1993, AFC received 2.3 million shares of new
common stock in exchange for its previous holdings of GACC stock and
debt. In connection with the plan, AFC also invested an additional $7.5
million in GACC common stock and debt securities.
In June 1994, AFEI purchased 1.2 million shares of Citicasters common
stock for $23.9 million in cash.
Great American Life Insurance Company In December 1992, AFC sold Great
American Life Insurance Company ("GALIC") to American Annuity Group for
$468 million in cash. In connection with the sale, AFC purchased 5.1
million shares of AAG's common stock pursuant to a tender offer and an
additional 17.1 million newly issued shares, increasing AFC's ownership
from 39% to approximately 82%. No gain or loss was recorded on the sale
of GALIC. Following the transaction, AFC began accounting for AAG as a
subsidiary.
Spelling In 1992, AFC's ownership of Spelling decreased below 50% and,
accordingly, AFC ceased accounting for Spelling as a subsidiary and began
accounting for it as an investee. In March 1993, AFC sold its common
stock investment in Spelling to Blockbuster Entertainment in exchange for
Blockbuster common stock and warrants. AFC realized a $52 million pretax
gain on the sale.
Kings Island Theme Park In 1992, AFC sold Kings Island to an
unaffiliated party for approximately $210 million in cash. AFC realized
a $64.5 million pretax gain on the transaction.
D. Segments of Operations Through subsidiaries, AFC is engaged in several
financial businesses, including property and casualty insurance,
annuities and portfolio investing. AFC also owns significant portions of
the voting equity securities of certain companies (investee corporations
- see Note F).
The following tables (in thousands) show AFC's assets, revenues and
operating profit (loss) by significant business segment. Capital
expenditures, depreciation and amortization are not significant.
Operating profit (loss) represents total revenues less operating
expenses. Goodwill and its amortization have been allocated to the
various segments to which they apply. General corporate assets and
expenses have not been identified or allocated by segment since they are
not material.
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Assets
Property and casualty insurance (a) $ 4,576,591 $ 4,192,908 $ 5,881,464
Annuities 5,078,928 4,898,419 4,434,865
Other (b) 61,895 86,361 1,504,269
----------- ----------- -----------
9,717,414 9,177,688 11,820,598
Investment in investee corporations 832,637 899,800 568,207
----------- ----------- -----------
$10,550,051 $10,077,488 $12,388,805
=========== =========== ===========
</TABLE>
F-13
<PAGE> 63
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Revenues (c)
Property and casualty insurance:
Underwriting:
Auto liability and physical
damage $ 435,609 $ 571,084 $ 984,722
Property and multiple peril 381,765 338,555 343,966
Workers' compensation and other
liability 375,323 418,328 679,217
All other 185,931 166,829 143,495
---------- ---------- ----------
1,378,628 1,494,796 2,151,400
Investment and other income 314,731 481,548 568,184
---------- ---------- ----------
1,693,359 1,976,344 2,719,584
Annuities (d) 378,010 395,871 356,265
Other (b) 47,984 278,626 1,191,711
---------- ---------- ----------
2,119,353 2,650,841 4,267,560
Equity in net earnings (losses)
of investee corporations (16,573) 69,862 (338,710)
---------- ---------- ----------
$2,102,780 $2,720,703 $3,928,850
========== ========== ==========
Operating Profit (Loss)
Property and casualty insurance:
Underwriting:
Auto liability and physical
damage ($ 13,734) ($ 8,453) $ 2,819
Property and multiple peril (41,006) (8,529) (62,785)
Workers' compensation and other
liability 39,495 (24,700) 27,248
All other (18,260) 7,581 7,540
---------- ---------- ----------
(33,505) (34,101) (25,178)
Investment and other income 199,292 321,701 317,184
---------- ---------- ----------
165,787 287,600 292,006
Annuities 58,748 63,388 65,480
Other (b)(e) (164,394) (158,865) (163,630)
---------- ---------- ----------
60,141 192,123 193,856
Equity in net earnings (losses) of
investee corporations (16,573) 69,862 (338,710)
---------- ---------- ----------
$ 43,568 $ 261,985 ($ 144,854)
========== ========== ==========
</TABLE>
(a) Not allocable to lines of insurance.
(b) Includes American Premier's non-insurance operations and Spelling
for the periods they were accounted for as consolidated
subsidiaries.
(c) Revenues include sales of products and services as well as other
income earned by the respective segments.
(d) Represents primarily investment income and realized gains.
(e) Includes holding company expenses.
F-14
<PAGE> 64
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
E. Investments Bonds, redeemable preferred stocks and other stocks at
December 31, consisted of the following (in millions):
<TABLE>
<CAPTION>
1994
- -----------------------------------------------------------------------------------------------------------------------------------
Held to Maturity Available for Sale
-----------------------------------------------------------------------------------------------------
Amortized Market Gross Unrealized Amortized Market Gross Unrealized
---------------- ----------------
Cost Value Gains Losses Cost Value Gains Losses
----------- ------- ----- ------ ----------- ------- ----- ------
<S> <C> <C> <C> <C>
Bonds and redeemable
preferred stocks:
United States Government
and government agencies
and authorities $ - $ - $ - $ - $ 306.9 $ 293.0 $ .4 ($14.3)
States, municipalities and
political subdivisions 23.4 23.2 .7 (.9) 36.8 36.3 1.4 (1.9)
Foreign government 16.0 14.0 - (2.0) 44.0 42.4 .1 (1.7)
Public utilities 688.3 635.2 1.1 (54.2) 84.1 79.3 .2 (5.0)
Mortgage-backed securities 952.7 872.3 .1 (80.5) 721.4 671.5 .6 (50.5)
All other corporate 2,844.3 2.692.8 5.4 (156.9) 745.7 740.2 2.9 (8.4)
Redeemable preferred stocks104.9 99.2 .4 (6.1) - - - -
----- ---------- ------------ ---------------------- ------- -------
$4,629.6 $4,336.7 $7.7($300.6) $1,938.9 $1,862.7 $ 5.6 ($81.8)
======== ======== ==== ====== ======== ======== ====== =====
Other stocks $ 137.1 $ 208.7 $72.0($ .4)
========= ========= ===== ======
</TABLE>
<TABLE>
<CAPTION>
1993
- -----------------------------------------------------------------------------------------------------------------------------------
Held to Maturity Available for Sale
--------------------------------------------------------- --------------------------------------------
Amortized Market Gross Unrealized Amortized Market Gross Unrealized
---------------- ----------------
Cost Value Gains Losses Cost Value Gains Losses
----------- ------- ----- ------ ------------ -------- ----- ------
<S> <C> <C> <C> <C>
Bonds and redeemable
preferred stocks:
United States Government
and government agencies
and authorities $ - $ - $ - $ - $ 208.0 $ 217.1 $ 9.1 $ -
States, municipalities and
political subdivisions 26.9 28.8 1.9 - 35.0 37.3 2.3 -
Foreign government 6.0 5.0 - (1.0) 15.7 15.7 - -
Public utilities 642.2 661.8 25.0 (5.4) 135.9 141.2 5.3 -
Mortgage-backed securities 703.5 717.7 18.4 (4.2) 1,129.0 1,183.3 54.3 -
All other corporate 2,314.5 2,447.8 141.0 (7.7) 692.7 754.9 62.2 -
Redeemable preferred stocks 95.6 98.3 2.9 (.2) - - - -
----- ---------- ---------------- -------------------------------- -----
$3,788.7 $3,959.4 $189.2 ($18.5) $2,216.3 $2,349.5 $133.2 $ -
======== ======== ====== ===== ======== ======== ====== ====
Other stocks $ 207.1 $ 339.2 $137.2 ($5.1)
========= ========= ====== ====
</TABLE>
The table below sets forth the scheduled maturities of bonds and
redeemable preferred stocks based on carrying value as of December 31,
1994. Data based on market value is generally the same. Mortgage-backed
securities had an average life of approximately 8 years at December 31,
1994.
<TABLE>
<CAPTION>
Held to Available
Maturity Maturity for Sale
-------------------- -------- ---------
<S> <C> <C>
One year or less *% 2%
After one year through five years 20 15
After five years through ten years 50 30
After ten years 9 17
--- ---
79 64
Mortgage-backed securities 21 36
--- ---
100% 100%
=== ===
</TABLE>
________________
(*) less than 1%
F-15
<PAGE> 65
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Realized gains (losses) and changes in unrealized appreciation
(depreciation) on fixed maturity and equity security investments are
summarized as follows (in thousands):
<TABLE>
<CAPTION>
Fixed Equity Tax
Maturities Securities Effects Total
---------- ---------- -------- -------
<S> <C> <C> <C> <C>
1994
----
Realized ($ 1,107) (*) $49,449 ($ 16,920) $ 31,422
Change in Unrealized (673,001) (60,500) 256,725 (476,776)
1993
----
Realized 52,915 (*) 29,350 (28,793) 53,472
Change in Unrealized 125,112 83,700 (73,084) 135,728
1992
----
Realized 80,503 (*) 20,971 (34,501) 66,973
Change in Unrealized (78,293) 44,300 11,558 (22,435)
</TABLE>
(*) Gross gains of $12.7 million, $69.4 million and $85.2 million
and gross losses of $13.8 million, $16.5 million and $4.7
million were realized on sales of fixed maturity investments
during 1994, 1993 and 1992, respectively.
As of February 28, 1995, the pretax unrealized losses on AFC's "available
for sale" portfolio and "held to maturity" portfolio had decreased
approximately $60 million and $180 million, respectively.
Transactions in fixed maturity investments included in the Statement of
Cash Flows for 1994 consisted of the following (in thousands):
<TABLE>
<CAPTION>
Held to Available
Maturity for Sale Total
-------- --------- ----------
<S> <C> <C> <C>
Purchases $1,089,978 $636,340 $1,726,318
Maturities and redemptions 216,013 204,932 420,945
Sales 8,017(a) 686,930(b) 694,947
</TABLE>
(a) Securities classified as "held to maturity" having an amortized
cost of $8.7 million were sold for a loss of $712,000 in 1994 due
to significant deterioration in the issuer's creditworthiness.
(b) Gross gains of $9.4 million and gross losses of $11.2 million
were realized on sales of fixed maturity securities classified as
"available for sale".
F-16
<PAGE> 66
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
F. Investment in Investee Corporations Investment in investee corporations
represents AFC's ownership of securities of certain companies. All of
the companies named in the following table are subject to the rules and
regulations of the SEC. Market value of the investments was
approximately $890 million and $940 million at December 31, 1994 and
1993, respectively.
AFC's investment (and common stock ownership percentage) and equity in
net earnings and losses of investees are stated below (dollars in
thousands):
<TABLE>
<CAPTION>
Investment (Ownership %) Equity in Net Earnings (Losses)
------------------------------------- -----------------------------------------
12/31/94 12/31/93 1994 1993 1992
-------- -------- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
American Premier(a) $525,927 (42%) $559,116 (41%) $ 1,147 $ 91,700 $ -
Chiquita (b) 237,015 (46%) 277,854 (46%) (26,670) (24,038) (132,256)
Citicasters 69,695 (37%) 36,892 (20%) 8,950 - (186,972)
General Cable(c) - 25,938 (45%) - (1,682) (17,630)
Other - - - 3,882 (1,852)
-------- -------- -------- -------- --------
$832,637 $899,800 ($ 16,573) $ 69,862 ($338,710)
======== ======== ======== ======== ========
</TABLE>
(a) Accounted for as an investee beginning April 1, 1993.
(b) AFC's equity in Chiquita's 1994 net loss excludes AFC's share
of Chiquita's extraordinary loss on prepayment of debt.
(c) Spun-off from American Premier in July 1992. Sold in June 1994.
American Premier is a property and casualty insurance company. Chiquita
is a leading international marketer, processor and producer of quality
food products. Citicasters owns and operates television and radio
stations. In May 1994, Citicasters changed its name from Great American
Communications Company to reflect its identity as a pure broadcaster
focused on metropolitan markets.
Due to financial difficulties experienced by GACC, AFC transferred all
GACC securities and loans to the investee account and reduced the
carrying value of that investment to estimated net realizable value ($35
million) at the end of 1992. AFC resumed equity accounting for its
investment in GACC following GACC's reorganization at the end of 1993.
Included in AFC's consolidated retained earnings at December 31, 1994,
was approximately $290 million applicable to equity in undistributed net
earnings of investees.
F-17
<PAGE> 67
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Summarized financial information for AFC's investees at December 31,
1994, is shown below (in millions). See "Investee Corporations" in
Management's Discussion and Analysis.
<TABLE>
<CAPTION>
American Premier Underwriters, Inc.
---------------------------------------
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Cash and Investments $2,721 $2,579
Other Assets 1,473 1,471
Insurance Claims and Reserves 1,674 1,426
Debt 507 523
Minority Interest 6 15
Shareholders' Equity 1,549 1,722
Revenues of Continuing Operations $1,767 $1,763 $1,425
Income from Continuing Operations 1 243 51
Discontinued Operations (1) (11) 1
Cumulative Effect of Accounting Change - - 253
Net Income - 232 305
</TABLE>
<TABLE>
<CAPTION>
Chiquita Brands International, Inc.(*)
---------------------------------------
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Current Assets $ 918 $ 886
Non-current Assets 1,984 2,003
Current Liabilities 654 612
Non-current Liabilities 1,603 1,693
Shareholders' Equity 645 584
Net Sales $3,962 $4,083 $4,468
Operating Income (Loss) 110 110 (154)
Loss before Extraordinary Item (49) (51) (284)
Extraordinary Item (23) - -
Net Loss (72) (51) (284)
</TABLE>
(*) Amounts for 1993 and 1992 were reclassified by Chiquita in 1994 to
reflect the reconsolidation of its Meat Division.
<TABLE>
<CAPTION>
Citicasters Inc.
-------------------------------------
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Contracts, Broadcasting Licenses
and Other Intangibles $275 $575
Other Assets 128 145
Long-term Debt 122 433
Shareholders' Equity 151 139
Net Revenues of Continuing Operations $197 $205 $211
Operating Income (Loss) 52 40 (642)
Earnings (Loss) from Continuing Operations 63 (67) (613)
Discontinued Operations - - 11
Extraordinary Items - 408 5
Net Earnings (Loss) 63 341 (597)
</TABLE>
F-18
<PAGE> 68
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
G. Cost in Excess of Net Assets Acquired At December 31, 1994 and 1993,
accumulated amortization of the excess of cost over net assets of
purchased subsidiaries amounted to approximately $100 million and $94
million, respectively. Amortization expense was $6.1 million in 1994,
$15.0 million in 1993 and $25.0 million in 1992.
H. Long-Term Debt Long-term debt consisted of the following at December 31,
(in thousands):
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
American Financial Corporation (Parent Company):
9-3/4% Debentures due April 2004 $203,759 $ -
12% Debentures (including Series A and B) due
September 1999 120,463 189,099
10% Debentures (including Series A) due October 1999 89,620 150,017
12-1/4% Debentures due September 2003 51,556 128,294
13-1/2% Debentures (including Series A) due
September 2004 - 73,546
Other, less discount of $456 and $554 24,667 30,918
-------- --------
$490,065 $571,874
======== ========
Subsidiaries:
Great American Holding Corporation ("GAHC"):
Notes payable to banks due in installments
to December 2000 $160,000 $ -
11% Notes due August 1998, less discount of $737
and $894 (imputed interest rate - 11.2%) 149,263 149,106
Floating Rate Notes due September 1995, less
discount of $78 and $175 49,922 49,825
American Annuity Group, Inc.:
11-1/8% Senior Subordinated Notes due February 2003 103,868 125,000
9-1/2% Senior Notes due August 2001 43,990 100,000
Notes payable to banks due December 1998 30,000 -
American Financial Enterprises, Inc.:
Notes payable to banks due December 1997 16,000 15,000
Other 63,639 43,201
-------- --------
$616,682 $482,132
======== ========
</TABLE>
See Note A - 1995 Merger. At December 31, 1994, sinking fund and other
scheduled principal payments on debt for the subsequent five years were
as follows (in thousands):
<TABLE>
<CAPTION>
Parent
Company Subsidiaries Total
------- ------------ --------
<S> <C> <C> <C>
1995 $ 261 $ 61,639 $ 61,900
1996 261 1,600 1,861
1997 5,857 49,446 55,303
1998 261 213,615 213,876
1999 225,827 33,697 259,524
</TABLE>
F-19
<PAGE> 69
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Debentures purchased in excess of scheduled payments may be applied to
satisfy any sinking fund requirement. The scheduled principal payments
shown above assume that debentures purchased are applied to the earliest
scheduled retirements.
In February 1994, AFC commenced an offer to issue new 9-3/4% Debentures
due April 20, 2004 and cash in exchange for its publicly traded
debentures. In anticipation of the offer, in December 1993, AFC wrote
off $24.3 million in unamortized original issue discount and debt issue
costs related to the debentures covered in the exchange offer.
In the exchange offer (completed in April 1994), AFC issued approximately
$203.8 million of the 9-3/4% Debentures. A cash premium of $6.5 million
on the debentures exchanged is included in Extraordinary Items in the
Statement of Operations. AFC also redeemed at par all 13-1/2% Debentures
not tendered in the exchange for approximately $63.2 million in cash.
GAHC has a revolving credit agreement with several banks under which it
can borrow up to $300 million. Borrowings bear interest at prime rate or
at LIBOR plus 1.375% and are collateralized by a pledge of 50% of the
stock of AFC's largest property and casualty insurance subsidiary. The
agreement converts to a four-year term loan in December 1996 and requires
annual facility fees and commitment fees based upon the unused portion of
the credit line. AFC guarantees amounts borrowed under the credit
agreement.
In 1994, AAG entered into a $50 million revolving credit agreement with
three banks. Loans under the credit agreement bear interest at floating
rates based on prime or Eurodollar rates and are collateralized by 20% of
the common stock of GALIC.
During 1994, AAG repurchased $21.1 million principal amount of its
11-1/8% Notes and $56.0 million principal amount of its 9-1/2% Notes in
exchange for approximately $69 million in cash and 810,000 shares of its
common stock. Included in Extraordinary Items is a loss of $1.3 million
(net of minority interest) realized as a result of the repurchases.
In connection with the acquisition of GALIC, AAG borrowed $180 million
under a bank term loan agreement and $50 million under a bridge loan. In
1993, AAG sold $225 million principal amount of Notes to the public and
used the proceeds to pay off the bank and bridge loan. Unamortized debt
issue costs of $4.6 million (net of minority interest) were written off
and are included in Extraordinary Items.
AFEI redeemed all $102.5 million of its 13-7/8% Notes and paid $40
million of bank debt with the proceeds from the sale of shares of
American Premier in August 1993. Subsequently, AFEI entered into a new
revolving credit agreement which enables it to borrow a maximum of $20
million through December 1997.
Cash interest payments of $115 million, $133 million and $206 million
were made on long-term debt in 1994, 1993 and 1992, respectively.
F-20
<PAGE> 70
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
I. Capital Subject to Mandatory Redemption Capital subject to mandatory
redemption includes AFC's Mandatory Redeemable Preferred Stock and, at
December 31, 1993, capital subject to a put option.
Mandatory Redeemable Preferred Stock At December 31, 1994, the
outstanding shares of Mandatory Redeemable Preferred Stock were
nonvoting, cumulative and consisted of the following:
Series E, $10.50 par value - authorized 2,725,000 shares; annual
dividends per share $1; to be retired at par in 1995; 274,242 shares
(stated value - $2.9 million) and 504,711 shares (stated value
- $5.3 million) outstanding at December 31, 1994 and 1993,
respectively.
Series I, $.01 par value - authorized 700,000 shares; annual dividends
per share $2.66; retired in 1994; 150,212 shares (stated value -
$4.2 million) outstanding at December 31, 1993.
During 1994, AFC redeemed the outstanding shares of Series I Preferred
Stock and 230,469 shares of Series E Preferred Stock for approximately
$6.6 million. During 1993, AFC purchased 75,106 shares of Series I
Preferred Stock for approximately $2.1 million. During 1992, AFC
purchased 680,369, 115,500 and 75,105 shares of Series D, Series E and
Series I Preferred Stock, respectively, for approximately $10.4 million.
Capital Subject to Put Option Under an agreement entered into in 1983,
certain members of the Lindner family (the "Group") were granted options
to purchase additional AFC Common shares. Holders had the right to "put"
to AFC any shares of AFC Common Stock or options at any time at a price
equal to AFC's book value per share, as defined. At December 31, 1994
and 1993, the Group owned 1,533,767 shares of AFC Common Stock and
options to purchase an additional 762,500 shares. Immediately prior to
consummation of the 1995 merger discussed in Note A, the AFC options will
be exercised at approximately $11.43 per share. The aggregate purchase
price for all shares covered by the put is included in "capital subject
to mandatory redemption" at December 31, 1993, and amounted to $40
million. Since the group's rights under the put agreement will be
extinguished in connection with the merger, the amount of capital equal
to the purchase price for shares covered by the put at December 31, 1994,
has been reclassified to Retained Earnings.
F-21
<PAGE> 71
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
J. Other Preferred Stock Under provisions of both the Nonvoting (55.8
million shares authorized, including the redeemable issues) and Voting
(3.5 million shares authorized, none outstanding) Cumulative Preferred
Stock, the Board of Directors is authorized to divide the authorized
stock into series and to set specific terms and conditions of each
series. In connection with the merger discussed in Note A, the aggregate
number of shares authorized will be reduced to 38.1 million and voting
rights will be granted to the Series F and G shares.
At December 31, 1994, the outstanding shares of other preferred stock
were nonvoting, cumulative and consisted of the following:
Series F, $1 par value - authorized 15,000,000 shares; annual
dividends per share $1.80; 10% annually may be retired at AFC's
option at $20 per share in 1995 and 1996; 13,744,754 shares
(stated value - $167.9 million) and 13,753,254 shares (stated
value - $168.0 million) outstanding at December 31, 1994 and
1993, respectively.
Series G, $1 par value - authorized 2,000,000 shares; annual
dividends per share $1.05; may be retired at AFC's option at
$10.50 per share; 364,158 shares (stated value - $600,000)
outstanding at December 31, 1994 and 1993.
In 1994, AFC purchased 8,500 shares of Series F Preferred Stock from a
subsidiary's profit sharing plan for $159,000. In 1992, AFC sold 1.0
million shares of Series F Preferred Stock to its ESORP for $15.0 million
in cash.
K. Common Stock At December 31, 1994, Carl H. Lindner and certain members
of the Lindner family owned all of the outstanding Common Stock of AFC
(18,971,217 shares, including 1,533,767 shares subject to a put option as
described in Note I). Of the 32,300,000 authorized shares of Common
Stock at December 31, 1994, 762,500 shares were reserved for issuance
upon exercise of options. In connection with the merger discussed in
Note A, AFC will increase the number of authorized common shares to 53.5
million.
F-22
<PAGE> 72
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
L. Income Taxes The following is a reconciliation of income taxes at the
statutory rate of 35% in 1994 and 1993 and 34% in 1992 and income taxes
as shown in the Statement of Operations (in thousands):
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C> <C>
Earnings (loss) before income taxes
and extraordinary items $43,568 $261,985 ($144,854)
Extraordinary items (17,192) (4,559) -
------- -------- --------
Adjusted earnings (loss) before
income taxes $26,376 $257,426 ($144,854)
======= ======== ========
Income taxes at statutory rate $ 9,232 $ 90,099 ($ 49,250)
Effect of:
Losses (utilized) not utilized 19,267 (59,141) 54,100
Dividends received deduction (8,528) (8,336) (8,774)
Minority interest 2,998 12,082 13,289
Amortization of intangibles 1,987 2,658 4,223
Tax exempt interest (689) (659) (628)
State income taxes 149 820 4,170
Foreign income taxes 6 76 992
Other (146) (303) (676)
------- -------- --------
Total provision 24,276 37,296 17,446
Less amounts applicable to
extraordinary items 374 - -
------- -------- --------
Provision for income taxes as shown
on the Statement of Operations $24,650 $ 37,296 $ 17,446
======= ======== ========
</TABLE>
Adjusted earnings (loss) before income taxes consisted of the following
<TABLE>
<CAPTION>
(in thousands):
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Subject to tax in:
United States $28,422 $255,682 ($144,854)
Foreign jurisdictions (2,046) 1,744 -
------- -------- --------
$26,376 $257,426 ($144,854)
======= ======== ========
</TABLE>
The total income tax provision consists of (in thousands):
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Current taxes:
Federal $21,028 $43,592 $39,791
Foreign - 503 1,172
State 226 1,843 4,736
Deferred taxes (credits):
Federal 3,012 (8,256) (28,926)
Foreign 10 (386) 673
------- ------- -------
$24,276 $37,296 $17,446
======= ======= =======
</TABLE>
F-23
<PAGE> 73
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The 1993 provision for income tax includes a $15 million first quarter
benefit due to American Premier's revision of estimated future taxable
income likely to be generated during the company's tax loss carryforward
period.
For income tax purposes, certain members of the AFC consolidated tax
group had approximately $229 million of operating loss carryforwards
available at December 31, 1994. The carryforwards are scheduled to
expire as follows: $6 million in 1995, $10 million in 1996 through 2000,
$176 million in 2001 through 2005 and $37 million in 2006 through 2009.
The cumulative effect of implementing SFAS No. 109 in 1992, which
resulted from giving recognition to previously unrecognized tax benefits,
was income of $85.4 million. This income consisted of a charge of $40
million related to members of the AFC tax group and a benefit of $125.4
million for AFC's share of American Premier's accounting change.
Deferred income taxes reflect the impact of temporary differences between
the carrying amounts of assets and liabilities recognized for financial
reporting purposes and the amounts recognized for tax purposes. The
significant components of deferred tax assets and liabilities for AFC's
tax group included in the Balance Sheet at December 31, were as follows
(in millions):
<TABLE>
<CAPTION>
1994 1993
------ ------
<S> <C> <C>
Deferred tax assets:
Net operating loss carryforwards $ 80.0 $ 63.0
Insurance claims and reserves 202.1 194.3
Other, net 53.5 39.3
------ ------
335.6 296.6
Valuation allowance for deferred
tax assets (111.1) (87.6)
------ ------
224.5 209.0
Deferred tax liabilities:
Deferred acquisition costs (78.3) (60.3)
Investment securities (103.6) (186.7)
------ ------
(181.9) (247.0)
------ ------
Net deferred tax asset (liability) $ 42.6 ($ 38.0)
====== ======
</TABLE>
The gross deferred tax asset was reduced by a valuation allowance based
on an analysis of the likelihood of realization. Factors considered in
assessing the need for a valuation allowance include: (i) recent tax
returns, which show neither a history of large amounts of taxable income
nor cumulative losses in recent years, (ii) opportunities to generate
taxable income from sales of appreciated assets, and (iii) the likelihood
of generating larger amounts of taxable income in the future. The
likelihood of realizing this asset will be reviewed periodically; any
adjustments required to the valuation allowance will be made in the
period in which the developments on which they are based become known.
Cash payments for income taxes, net of refunds, were $30.0 million, $49.6
million and $9.6 million for 1994, 1993 and 1992, respectively.
F-24
<PAGE> 74
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
M. Extraordinary Items Extraordinary items consisted of the following (in
thousands):
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Premium paid on AFC debentures retired
in exchange offer ($ 6,454) $ -
Loss on subsidiary's prepayment of debt
(net of minority interest of $199 and $681) (1,328) (4,559)
Share of loss on investee's prepayment of debt
(net of income tax benefit of $374) (9,036) -
------- ------
($16,818) ($4,559)
======= ======
</TABLE>
N. Pending Legal Proceedings Counsel has advised AFC that there is little
likelihood of any substantial liability being incurred from any
litigation pending against AFC and subsidiaries.
O. Benefit Plans AFC expensed ESORP contributions of $6.2 million in 1994,
$9.4 million in 1993 and $7.4 million in 1992.
In 1993, AFC began accruing postretirement benefits over the period
employees qualify for such benefits. Expense for 1994 and 1993 was $2.4
million and $3.1 million, respectively. Prior to this change, costs were
charged to expense as incurred.
P. Transactions With Affiliates Various business has been transacted among
AFC and its subsidiaries over the past several years, including rentals,
data processing services, accounting services, investment management
services, loans, leases, insurance, advertising and sales of assets.
Unless otherwise disclosed, none of these transactions had a material
effect on the net earnings or equity of AFC. Aggregate charges for these
services within AFC and its subsidiaries have been insignificant in
relation to consolidated revenues.
In addition, AFC and its subsidiaries have had certain of the above types
of transactions with certain of AFC's officers and directors and with
business entities owned by them. Charges for such services have been
less than one percent of consolidated revenues in 1994, 1993 and 1992.
In 1993, AFC sold stock of an affiliate to certain of its officers and
employees for $1.8 million in cash and $270,000 in 5.25% unsecured notes
due in five equal annual installments beginning in 1996.
At December 31, 1993, an AFC resort real estate subsidiary owed $452,000
to The Provident Bank under a loan purchased by Provident in 1991 from an
unrelated bank. The loan was repaid in 1994. Members of the Lindner
family are majority owners of Provident's parent.
Except as noted otherwise, all of the above transactions have taken place
at approximate market rates or values and, in the opinion of management,
all amounts are fully collectible.
F-25
<PAGE> 75
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Q. Quarterly Operating Results (Unaudited) The operations of certain of
AFC's business segments are seasonal in nature. While insurance premiums
are recognized on a relatively level basis, claim losses related to
adverse weather (snow, hail, hurricanes, tornados, etc.) may be seasonal.
Quarterly results necessarily rely heavily on estimates. These estimates
and certain other factors, such as the nature of investees' operations
and discretionary sales of assets, cause the quarterly results not to be
necessarily indicative of results for longer periods of time. See Note C
for changes in ownership of companies whose revenues are included in the
consolidated operating results and for the effects of gains on sales of
subsidiaries and investees in individual quarters. The following are
quarterly results of consolidated operations for the two years ended
December 31, 1994 (in millions).
<TABLE>
<CAPTION>
1st 2nd 3rd 4th Total
Quarter Quarter Quarter Quarter Year
------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
1994
----
Revenues $523.6 $508.0 $537.5 $533.7 $2,102.8
Earnings (loss) before
extraordinary items 26.7 23.2 7.5 (38.5) 18.9
Extraordinary items (15.7) (.7) (.5) .1 (16.8)
Net earnings (loss) 11.0 22.5 7.0 (38.4) 2.1
1993
----
Revenues $1,024.7 $557.0 $555.7 $583.3 $2,720.7
Earnings before
extraordinary items 88.6 18.1 75.3 42.7 224.7
Extraordinary items - - (4.6) - (4.6)
Net earnings 88.6 18.1 70.7 42.7 220.1
</TABLE>
Results for 1994 included credits of $3.9 million and $5.3 million in the
second and third quarters and a fourth quarter charge of $43.9 million
for units outstanding under AFC's Book Value Incentive Plan.
Realized gains on sales of securities for the respective quarters
amounted to (in millions):
<TABLE>
<CAPTION>
1st 2nd 3rd 4th Total
Quarter Quarter Quarter Quarter Year
------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
Realized gains:
1994 $14.9 $ 8.2 $20.0 $ 5.2 $48.3
1993 17.4 23.6 17.7 23.6 82.3
</TABLE>
R. Additional Information Total rental expense for various leases of
railroad rolling stock, office space and data processing equipment was
$22 million, $24 million and $52 million for 1994, 1993 and 1992,
respectively. Sublease rental income related to these leases totaled
$6.4 million in 1994, $6.6 million in 1993 and $8.2 million in 1992.
Future minimum rentals, related principally to office space and railroad
rolling stock, required under operating leases having initial or
remaining noncancelable lease terms in excess of one year at December 31,
1994, were as follows: 1995 - $32 million, 1996 - $27 million, 1997 -
$20 million, 1998 - $14 million; 1999 - $9 million and $20 million
thereafter. At December 31, 1994, minimum sublease rentals to be
received through the expiration of the leases aggregated $32 million.
F-26
<PAGE> 76
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Other operating and general expenses included charges (credits) for
possible losses on agents' balances, reinsurance recoverables and other
receivables in the following amounts: 1994 - $18 million, 1993 - $10
million and 1992 - ($3 million). The aggregate allowance for such losses
amounted to approximately $109 million and $91 million at December 31,
1994 and 1993, respectively.
Insurance Securities owned by insurance subsidiaries having a carrying
value of approximately $424 million at December 31, 1994, were on deposit
as required by regulatory authorities. Included in "Prepaid expenses,
deferred charges and other assets" at December 31, 1994 and 1993 were
$231 million and $176 million, respectively, of insurance company
deferred policy acquisition costs.
The following table shows (in millions) investment income earned and
investment expenses incurred by AFC's insurance companies.
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Insurance group investment income:
Fixed maturities $560.6 $566.2 $615.8
Equity securities 8.3 9.9 16.9
Other 6.7 4.7 3.2
------ ------ ------
575.6 580.8 635.9
Insurance group investment expenses (*) (32.0) (38.9) (41.1)
------ ------ ------
$543.6 $541.9 $594.8
====== ====== ======
</TABLE>
(*) Included in "Other operating and general expenses" in the
Statement of Operations.
AFC's insurance subsidiaries are required to file financial statements
with state insurance regulatory authorities prepared on an accounting
basis prescribed or permitted by such authorities (statutory basis). Net
earnings and policyholders' surplus on a statutory basis for the
insurance subsidiaries were as follows (in millions):
<TABLE>
<CAPTION>
Policyholders'
Net Earnings Surplus
----------------------------- -------------------
1994 1993 1992 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Property and casualty
companies $63 $179 $200 $943 $887
Life insurance companies 54 44 59 256 251
</TABLE>
During the third quarter of 1994, the California Supreme Court upheld
Proposition 103, an insurance reform measure passed by California voters
in 1988. In addition to increasing rate regulation, Proposition 103
gives the California insurance commissioner power to mandate rate
rollbacks for most lines of property and casualty insurance. GAI
recorded a charge of $26 million (included in "Other Operating and
General Expenses") in the third quarter of 1994 in response to the
California court decision. This charge was revised at December 31, 1994
to reflect a settlement agreement signed in March 1995 setting GAI's
refund obligation at $19 million. The agreement is expected to become
final in April 1995 following a required waiting period.
F-27
<PAGE> 77
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
In the normal course of business, AFC's insurance subsidiaries assume and
cede reinsurance with other insurance companies. The following table
shows (in millions) (i) amounts deducted from property and casualty
premium income accounts in connection with reinsurance ceded, (ii)
amounts included in income for reinsurance assumed and (iii) reinsurance
recoveries deducted from losses and loss adjustment expenses.
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Reinsurance ceded to:
Non-affiliates $402 $333 $278
Affiliates 161 89 -
Reinsurance assumed - primarily
non-voluntary pools and associations 83 61 117
Reinsurance recoveries 429 343 151
</TABLE>
Fair Value of Financial Instruments The following table presents (in
millions) the carrying value and estimated fair value of AFC's financial
instruments at December 31.
<TABLE>
<CAPTION>
1994 1993
------------------------ ---------------------
Carrying Fair Carrying Fair
Value Value Value Value
--------- ------ -------- ------
<S> <C> <C> <C> <C>
Assets:
Bonds and redeemable
preferred stocks $6,492 $6,199 $6,138 $6,309
Other stocks 209 209 339 339
Liabilities:
Annuity policyholders'
funds accumulated $4,618 $4,510 $4,257 $4,164
Long-term debt:
Parent company 490 473 572 576
Subsidiaries 617 618 482 501
</TABLE>
When available, fair values are based on prices quoted in the most active
market for each security. If quoted prices are not available, fair value
is estimated based on present values, discounted cash flows, fair value
of comparable securities, or similar methods. The fair value of the
liability for annuities in the payout phase is assumed to be the present
value of the anticipated cash flows, discounted at current interest
rates. Fair value of annuities in the accumulation phase is assumed to
be the policyholders' cash surrender amount.
Financial Instruments with Off-Balance-Sheet Risk On occasion, AFC and
its subsidiaries have entered into financial instrument transactions
which may present off-balance-sheet risks of both credit and market risk
nature. These transactions include commitments to fund loans, loan
guarantees and commitments to purchase and sell securities or loans. At
December 31, 1994, AFC and its subsidiaries had commitments to fund
credit facilities and contribute limited partnership capital totalling
$12 million.
F-28
<PAGE> 78
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
S. Restrictions on Transfer of Funds and Assets of Subsidiaries Payments of
dividends, loans and advances by AFC's subsidiaries are subject to
various state laws, federal regulations and debt covenants which limit
the amount of dividends, loans and advances that can be paid. The
maximum amount of dividends payable (without prior approval from state
insurance regulators) in 1995 from GAI based on 10% of its policyholders'
surplus is approximately $95 million. Total "restrictions" on
intercompany transfers from AFC's subsidiaries cannot be quantified due
to the discretionary nature of the restrictions.
F-29
<PAGE> 79
PART IV
ITEM 14
Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) Documents filed as part of this Report:
1. Financial Statements are included in Part II, Item 8.
2. Financial Statement Schedules:
A. Selected Quarterly Financial Data is included in Note Q to
the Consolidated Financial Statements.
B. Schedules filed herewith for 1994, 1993 and 1992: Page
I - Condensed Financial Information of Registrant S-2
V - Supplemental Information Concerning S-4
Property-Casualty Insurance Operations
All other schedules for which provisions are made in the
applicable regulation of the Securities and Exchange
Commission have been omitted as they are not applicable, not
required, or the information required thereby is set forth in
the Financial Statements or the notes thereto.
3. Exhibits - see Exhibit Index on page E-1.
(b) Reports on Form 8-K:
Date of Report Item Reported
December 9, 1994 Proposed merger
between AFC and
American Premier
S-1
<PAGE> 80
AMERICAN FINANCIAL CORPORATION - PARENT ONLY
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(In Thousands)
________________________________________________________________________________
Condensed Balance Sheet
<TABLE>
<CAPTION>
December 31,
----------------------------------
<S> <C> <C>
Assets: 1994 1993
---- ----
Cash and short-term investments $ 4,896 $ 2,681
Investment in securities 1,786 12,217
Receivables from affiliates 288,271 460,915
Investment in subsidiaries 976,151 1,051,028
Investment in investee corporations 233,908 267,219
Other assets 49,747 41,919
---------- ----------
$1,554,759 $1,835,979
========== ==========
Liabilities and Capital:
Accounts payable, accrued expenses and other
liabilities $ 83,783 $ 46,840
Payable to affiliates 582,048 630,795
Long-term debt 490,065 571,874
Capital subject to mandatory redemption 2,880 49,232
Other capital 395,983 537,238
---------- ----------
$1,554,759 $1,835,979
========== ==========
</TABLE>
Condensed Statement of Operations
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------------------------
Income: 1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Dividends from:
Subsidiaries $ 25,571 $248,168 $185,471
Investees 3,514 4,035 11,498
-------- -------- --------
29,085 252,203 196,969
Equity in undistributed earnings (losses)
of subsidiaries and investees 113,631 65,435 (309,970)
Realized gains (losses) on sales of:
Securities 7,477 (1,743) (2,476)
Investees (5,555) 59,182 1,772
Subsidiaries - - 64,483
Investment and other income 26,546 21,370 4,097
-------- -------- --------
171,184 396,447 (45,125)
Costs and Expenses:
Interest charges on intercompany borrowings 3,494 3,736 5,632
Interest charges on other borrowings 56,945 71,057 70,619
Book Value Incentive Plan 44,166 596 (5,915)
Other operating and general expenses 23,011 59,073 29,393
-------- -------- --------
127,616 134,462 99,729
-------- -------- --------
Earnings (loss) before income taxes,
extraordinary items and cumulative effect
of accounting change 43,568 261,985 (144,854)
Provision for income taxes 24,650 37,296 17,446
-------- -------- --------
Earnings (loss) before extraordinary items
and cumulative effect of accounting change 18,918 224,689 (162,300)
Extraordinary items, net of income taxes (16,818) (4,559) -
Cumulative effect of accounting change - - 85,400
-------- -------- --------
Net Earnings (Loss) $ 2,100 $220,130 ($ 76,900)
======== ======== ========
</TABLE>
S-2
<PAGE> 81
AMERICAN FINANCIAL CORPORATION - PARENT ONLY
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CONTINUED
(In Thousands)
________________________________________________________________________________
_
Condensed Statement of Cash Flows
<TABLE>
<CAPTION>
Year ended December 31,
-------------------------------------------
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Operating Activities:
Net earnings (loss) $ 2,100 $220,130 ($ 76,900)
Adjustments:
Extraordinary losses from retirement
of debt 16,818 4,559 -
Cumulative effect of accounting change - - (85,400)
Equity in earnings of subsidiaries (88,060) (172,803) (49,407)
Equity in net losses (earnings) of
investees (2,872) (1,963) 222,545
Depreciation and amortization 612 3,778 4,019
Realized gains on sales of
subsidiaries and investments (1,929) (57,421) (64,581)
Writeoff of debt discount and issue costs - 24,814 -
Change in receivables and payable
from affiliates, net 125,427 (196,338) (108,462)
Increase (decrease) in payables 37,051 (13,146) (17,931)
Dividends from subsidiaries and investees 20,504 131,914 72,651
Other (2,194) (16,943) (18,419)
-------- -------- --------
107,457 (73,419) (121,885)
Investing Activities:
Purchases of subsidiaries and other
investments - (29,501) (42,690)
Sales of subsidiaries and other investments 20,975 126,196 167,663
Other, net (788) 344 35
-------- -------- --------
20,187 97,039 125,008
Financing Activities:
Additional long-term borrowings 732 9,984 786
Reductions of long-term debt (89,901) (9,062) (17,516)
Issuance of capital stock - - 15,000
Repurchases of capital stock (6,738) (2,643) (10,549)
Cash dividends paid (29,522) (28,034) (29,001)
-------- -------- --------
(125,429) (29,755) (41,280)
Net Increase (Decrease) in Cash and Short-term Investments 2,215 (6,135) (38,157)
Cash and short-term investments at beginning
of period 2,681 8,816 46,973
-------- -------- --------
Cash and short-term investments at end
of period $ 4,896 $ 2,681 $ 8,816
======== ======== ========
</TABLE>
S-3
<PAGE> 82
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
SCHEDULE V - SUPPLEMENTAL INFORMATION CONCERNING
PROPERTY-CASUALTY INSURANCE OPERATIONS
THREE YEARS ENDED DECEMBER 31, 1994
(IN MILLIONS)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN G COLUMN H
- ------------------------------------------------------------------------------------------------------------------
(a) CLAIMS AND CLAIM
DEFERRED RESERVES FOR (b) ADJUSTMENT EXPENSES
AFFILIATION POLICY UNPAID CLAIMS DISCOUNT (c) NET INCURRED RELATED TO
WITH ACQUISITION AND CLAIMS DEDUCTED IN UNEARNED EARNED INVESTMENT ------------------------
REGISTRANT COSTS ADJUSTMENT COLUMN C PREMIUMS PREMIUMS INCOME CURRENT PRIOR
EXPENSES YEAR YEARS
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CONSOLIDATED PROPERTY-CASUALTY ENTITIES
- ---------------------------------------
1994 $166 $2,917 $71 $825 $1,379 $177 $1,027 ($40)
==== ====== === ==== ====== ==== ====== ===
1993 $137 $2,724 $56 $675 $1,495(d) $206(d) $1,103(d) ($39)(d)
==== ====== === ==== ====== ==== ====== ===
1992(e) $2,151 $301 $1,589 ($34)
====== ==== ====== ===
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------
COLUMN I COLUMN J COLUMN K
- ------------------------------------
AMORTIZATION PAID
OF DEFERRED CLAIMS
POLICY CLAIM
ACQUISITION ADJUSTMENT PREMIUMS
COSTS EXPENSES WRITTEN
- ------------------------------------
<S> <C> <C>
$329 $ 913 $1,481
==== ====== ======
$345(d) $1,052(d) $1,587(d)
==== ====== ======
$494 $1,461 $2,222
==== ====== ======
- ------------------------------------
<FN>
(a) Grossed up for reinsurance recoverables of $730 and $611 at December 31, 1994 and 1993, respectively.
(b) Discounted at rates ranging from 4% to 8%.
(c) Grossed up for prepaid reinsurance premiums of $172 and $122 at December 31, 1994 and 1993, respectively.
(d) Includes American Premier's Insurance Group through March 31, 1993.
(e) Includes American Premier's Insurance Group.
</TABLE>
AMERICAN PREMIER INSURANCE GROUP
Information for American Premier is not included since that company files such
information with the Commission as a registrant in its own right.
<PAGE> 83
Signatures
Pursuant to the requirements of Section 13 of the Securities Exchange
Act of 1934, American Financial Corporation has duly caused this Report to be
signed on its behalf by the undersigned, duly authorized.
American Financial Corporation
Signed: March 29, 1995 BY:/s/CARL H. LINDNER
Carl H. Lindner
Chairman of the Board and
Chief Executive Officer
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
Registrant and in the capacities and on the dates indicated:
<TABLE>
<CAPTION>
Signature Capacity Date
--------- -------- ----
<S> <C> <C>
s/CARL H. LINDNER Chairman of the Board March 29, 1995
- ----------------------- of Directors
Carl H. Lindner
s/RICHARD E. LINDNER Director March 29, 1995
- -----------------------
Richard E. Lindner
s/RONALD F. WALKER Director* March 29, 1995
- -----------------------
Ronald F. Walker
s/FRED J. RUNK Vice President and March 29, 1995
- ----------------------- Treasurer (principal
Fred J. Runk financial and accounting
officer)
</TABLE>
* Member of the Audit Committee
<PAGE> 84
INDEX TO EXHIBITS
AMERICAN FINANCIAL CORPORATION
<TABLE>
<CAPTION>
Number Exhibit Description
- ------ -------------------
<S> <C> <C>
3 Articles of Incorporation and Code
of Regulations.
-----
4 Instruments defining the The rights of holders of
rights of security holders. Registrant's Preferred Stock are
defined in the Articles of Incor-
poration. Registrant has no out-
standing debt issues exceeding
10% of the assets of Registrant
and consolidated subsidiaries.
Management Contracts:
10.1 Book Value Incentive Plan.
-----
10.2 Option Agreement.
-----
10.3 Nonqualified ESORP Plan.
-----
12 Computation of ratios of earnings
to fixed charges and fixed charges
and preferred dividends.
-----
21 Subsidiaries of the Registrant.
-----
27 Financial data schedule (*)
28 Information from reports furnished to
state insurance regulatory authorities.
-----
</TABLE>
(*) Copy included in Report filed electronically with the Securities and
Exchange
Commission.
E-1
<PAGE> 1
CERTIFICATE OF AMENDMENT
TO
AMERICAN FINANCIAL CORPORATION
Carl H. Lindner, who is President and James E. Evans, who is Secretary of the
above named Ohio corporation for profit with its principal location at 1 East
Fourth Street, Cincinnati, Ohio do hereby certify that in a writing signed by
all of the Directors pursuant to Section 1701.54 of the Revised Code, the
following resolution was adopted pursuant to Section 1701.72(B) of the Revised
Code:
RESOLVED: That pursuant to Ohio General Corporation Law, Section
1701.72(B), the Company's Consolidated Articles of Incorporation be,
and the same are hereby, amended to consolidate and amend the
previously Consolidated Articles of Incorporation and all previously
adopted amendments to the Consolidated Articles of Incorporation now
in force and to supersede and take the place of the existing
Consolidated Articles of Incorporation and all amendments thereto.
(Consolidated Articles of Incorporation attached)
IN WITNESS WHEREOF, the above named officers acting for and on behalf of the
corporation, have hereunto subscribed their names this 28th day of October
1981.
By: /s/ Carl H. Lindner
-------------------------------
Carl H. Lindner, President
By: /s/ James E. Evans
-------------------------------
James E. Evans, Secretary
<PAGE> 2
CONSOLIDATED
ARTICLES OF INCORPORATION
OF
AMERICAN FINANCIAL CORPORATION
AS AMENDED THROUGH OCTOBER 28, 1981
-----------------------------------
FIRST
-----
The name of said corporation shall be AMERICAN FINANCIAL CORPORATION.
SECOND
------
The place in Ohio where its principal office is to be located is One East
Fourth Street, Cincinnati, Ohio.
THIRD
-----
The purpose or purposes for which it is formed are:
(1) To buy, lease acquire, own, hold, exchange, sell, trade, mortgage or
encumber, maintain and repair and to do all things necessary,
incidental or related to the owning and operating of a real estate
business.
(2) To invest in, hold, sell, underwrite, pledge and otherwise deal with
stock, shares, bonds, debentures and securities of any corporation,
public or private, any sovereign government, state government,
governmental agency or municipality; or obligations of any trust,
syndicates, partnerships or individuals, to make advances upon, hold
in trust, issue on commission, sell or dispose of any of the
investments aforesaid.
(3) To manufacture, grow, raise, purchase or otherwise acquire, hold, own,
sell, assign, transfer, lease, exchange, invest in, mortgage, pledge,
or otherwise encumber or dispose of and generally to deal and trade
in, goods, wares, merchandise, crops, livestock, and property of every
kind, nature and description.
(4) To conduct a general agency business for the writing, procuring and
solicitation of insurance, to contract with insurers and insurance
companies, and to act for them as general or special agents or in any
other capacity, excepting life insurance in which life insurance
business this company shall not in any way be authorized to act; to
contract with banks, trust companies and other fiduciaries as to all
relations incident to the business herein specified; and in general to
day any and all acts and business in any way
- 2 -
<PAGE> 3
connected with or incident to the relations herein set forth.
(5) To carry on the business of insurance agents and brokers for and in
any and all classes and species of insurance including theft, marine,
fire, life, accident, indemnity, guaranty, fidelity, casualty,
windstorm, and workmen's compensation insurance, excepting life
insurance, and to act as agent, manager, representative and
attorney-in-fact for underwriters and insurance companies in the
issuance of any such insurance, to carry on a general insurance agency
business, to carry on the business of adjusters in all its branches,
and to act as agent and representative for any persons, firms,
associations and corporations in connection with any matter of
salvage, including the adjustment, settlement, payment and collection
of salvage claims. Provided, however, nothing in this paragraph shall
authorize the company to conduct any activity in the sale of life
insurance or to in any way act with respect to the sale of life
insurance.
(6) To transact and carry on all or any other business which may be
necessary, incidental, related or proper to the exercise of any or all
of the aforesaid purposes and powers.
(7) Generally, and without in any manner limiting or restricting any of
the independent powers herein above enumerated, to do such acts and
things and to exercise any and all powers to the same extent as a
natural person might or could lawfully do to the extent allowed by
law. In the execution of the foregoing purposes and powers and in the
attainment of the objectives of the corporation, it shall have and
possess all powers granted to it by the statutes under which it is
being organized, including the power --
(a) To purchase, receive, lease as lessee, take by gift, devise or
bequest, or otherwise acquire, and to hold, use, lease as
lessor, encumber, sell, transfer and dispose of property, real
and personal, tangible, and intangible, within or without the
state.
(b) To make contracts and incur liabilities.
(c) To acquire, hold, encumber, transfer, guarantee and dispose of
shares, bonds, and other evidences of indebtedness,
securities, and contracts of other persons, associations and
corporations, domestic or foreign, and to form or acquire the
control of other corporations.
(d) To conduct business in this state and elsewhere.
(e) To borrow money, and to issue, sell and pledge its bonds,
notes and other evidences of indebtedness, and to secure any
of its obligations by mortgage, pledge or deed of trust of all
or any of its property.
- 3 -
<PAGE> 4
(f) To purchase, own and hold, and to sell and transfer (but not
to vote) shares of its own capital stock if and when the
capital of the corporation is not thereby impaired.
(g) To take licenses in respect of, use and operate or manufacture
under any letters patent of the United States of America or
any other country or government, any applications therefor and
any and all rights and privileges connected therewith or any
unpatented processes therewith or any unpatented processes,
formulae or inventions, or any copyrights granted by the
United States of America or any other country or government,
or any trade-marks, trade names, trade symbols, or other
indications of origin and ownership granted by, or recognized
under the laws of the United States of America or any other
country or government.
FOURTH
------
I. AUTHORIZED CAPITAL. The Company is authorized to issue shares of
Capital Stock designated, described and limited as follows:
A. COMMON STOCK WITHOUT PAR VALUE - 32.3 MILLION SHARES AUTHORIZED
B. PREFERRED STOCK
(1) $1 PAR, VOTING CUMULATIVE PREFERRED STOCK -- 3.5
MILLION SHARES AUTHORIZED, NONE OF WHICH IS SERIALLY
DESIGNATED.
(2) $1 PAR, NONVOTING CUMULATIVE PREFERRED STOCK -- 10
MILLION SHARES AUTHORIZED, CONSISTING OF THE
FOLLOWING DESIGNATED SERIES:
SERIES F - 8,000,000
SERIES G - 2,000,000
----------
TOTAL 10,000,000
==========
(3) $10.50 PAR, NONVOTING CUMULATIVE PREFERRED STOCK --
11.1 MILLION SHARES AUTHORIZED, CONSISTING OF THE
FOLLOWING DESIGNATED SERIES:
SERIES D - 8,375,000
SERIES E - 2,725,000
---------
TOTAL 11,100,000
==========
(4) $1.50 PAR, NONVOTING CUMULATIVE PREFERRED STOCK --
7.7 MILLION AUTHORIZED, CONSISTING OF THE FOLLOWING
DESIGNATED SERIES:
- 4 -
<PAGE> 5
SERIES H - 7,700,000
II. General Provisions.
------------------
A. PRE-EMPTIVE RIGHTS. No holder of any shares of the Company,
whether Common or Cumulative Preferred, shall have any pre-
emptive rights to subscribe for or to purchase any shares of
the Company of any class whether such shares or such class be
now or hereafter authorized or to purchase or subscribe for
securities convertible into or exchangeable for shares of any
class or to which shall be attached or appertain any warrants
or rights entitling the holder thereof to purchase or
subscribe for shares of any class.
B. DIVIDEND RIGHTS. The holders of the Cumulative Preferred
Stock shall be entitled to receive dividends out of any funds
of the Company at the time legally available for dividends
when and as declared by the Board of Directors at such rate
per share per annum as shall be fixed by the Board of
Directors for such series as hereinafter provided before any
sum shall be set apart or applied to the redemption or
purchase of or any dividends shall be declared or paid upon or
set apart for the Common Stock. In the event of any
liquidation, dissolution or winding up of the Company, the
holders of Cumulative Preferred Stock shall be entitled to
receive out of the assets of the Company payment of an amount
per share as determined by the Board of Directors as a
liquidation price as hereinafter provided (including accrued
dividends, if any) before any distribution of assets shall be
made to the holders of the Common Stock.
C. VOTING RIGHTS. The voting power of the Company shall reside
in the Common Stock except as set forth hereafter with respect
to the Cumulative Preferred Stock.
Each share of Voting Cumulative Preferred Stock shall have the
same voting rights as each share of Common Stock of the
Company.
The following provisions apply to the accrual and termination
of voting rights with respect to Nonvoting Cumulative
Preferred Stock.
(1) Holders of $1 PAR NONVOTING CUMULATIVE PREFERRED
STOCK shall have no voting rights except that if and
whenever the Company shall be in arrears on the
declaration of payment of dividends on the
outstanding $1 Par Nonvoting Cumulative Preferred
Stock in an amount equivalent to Six (6) full
quarterly dividends thereon, the holders of the $1
- 5 -
<PAGE> 6
Par Nonvoting cumulative Preferred Stock, voting
separately as a class, shall be entitled to elect two
Directors out of the then number of Directors of the
Company, such rights shall continue until full
cumulative dividends for all past dividend periods
and the dividend for the current dividend period on
the $1 Par Nonvoting Cumulative Preferred Stock shall
have been declared and paid or provided for.
(2) Holders of the $10.50 PAR NONVOTING CUMULATIVE
PREFERRED STOCK shall have no voting rights except
that if and whenever the Company shall be in arrears
on the declaration of payment of dividends on said
Stock as hereinafter provided, or be in default of
its obligation to redeem said Stock in holders of all
of the $10.50 Par Shares, voting separately as a
class, shall be entitled to elect, at any one time,
the highest number of Directors of the Company that
results from applying the two following formulae:
During any time in which the following number
of semi-annual installments of dividends
whether or not consecutive have not been paid
in whole or in part when due, and as long as
the same remain unpaid in whole or in part,
or in which the following number of
redemption payments, whether or not
consecutive, have not been made when due, and
as long as they are not made in whole or in
part:
<TABLE>
<CAPTION>
Number of Number of Authorized
Semi-Annual Annual Number of
Dividend Redemption AFC
Installments Payments Directors
------------ ---------- -----------
<S> <C> <C>
2 1 Smallest number
constituting at
least 25%
4 2 Smallest number
constituting at
least 40%
6 3 Smallest Number
constituting a majority
</TABLE>
(3) In the event voting rights accrue to the holders of
Nonvoting cumulative Preferred Stock as described in
(1) and/or (2) above, then holders of the Voting
- 6 -
<PAGE> 7
Stock of the Company, voting separately as a class,
shall be entitled to elect the remainder of the Board
of Directors.
III. Preferred Stock Series Designations.
-----------------------------------
The Board of Directors shall have the right to adopt amendments to the
Articles with respect to any unissued or treasury shares of Cumulative
Preferred Stock and thereby to fix or change: the division of such
shares into series and the designation and authorized number of shares
of each series; the dividend rate; the dates of payment of dividends;
the dates from which dividends are cumulative; liquidation price;
redemption rights and price; sinking fund requirement; conversion
rights; and restrictions on the issuance of shares of any class or
series.
The specific series of Cumulative Preferred Stock designated are as
follows:
SERIES D
--------
8,375,000 shares of the $10.50 Par, Nonvoting Cumulative Preferred
Stock shall be designated as Series D (hereinafter referred to as
"Share" or "Shares") and shall be issuable upon the following terms
and conditions:
A. DIVIDEND. Each of said Shares shall have an annual dividend
rate of $1.00 and no more. Said annual dividend shall be
payable in equal semi-annual installments on the 3rd day of
June and December in each year to holders of record as of the
15th day of the preceding month commencing June, 1974. Should
any semi-annual installment not be declared and paid in full
on the 3rd day of June or December, as the case may be, there
shall be payable with respect to each said installment an
additional dividend which accrues at the rate of $.04 annually
until paid. Such additional dividend shall be paid together
with the installment to which it relates. The holders of said
Shares shall be entitled to receive dividends out of any funds
of the Company which at the time are legally available for
dividends before any sum shall be set apart or applied to (i)
the redemption or purchase of or any dividends shall be
declared or paid upon or set apart for the Common Stock, or
(ii) the purchase of any shares.
B. DIVIDEND ACCRUAL. For all purposes set forth in this
amendment other than the annual dividend rate of $1.00 in
paragraph A, dividends shall be deemed to accrue on a daily
basis regardless of whether such dividends have been declared.
- 7 -
<PAGE> 8
C. REDEMPTION. None of said Shares shall be redeemed before
1983. In each of the years 1983 to 1992, inclusive, the
Company shall be obligated to redeem on December 3, 10% of the
total number of said Shares originally issued at the par value
of $10.50 for each of said Shares redeemed, plus any accrued
but unpaid dividends. This obligation is subject to credits
at the Company's option for the number of said Shares
purchased or redeemed by the Company otherwise than pursuant
to this requirement, and not theretofore made the basis of any
reduction in the aforesaid obligation. In addition to the
aforesaid obligation to redeem said Shares, the Company may,
at its option, redeem an additional 10% of said Shares
originally issued in each of the years 1983 to 1992,
inclusive, at the par value of $10.50 per share, plus any
accrued but unpaid dividends, such optional right of
redemption being cumulative. Any shares redeemed pursuant to
this paragraph C or which are made the basis for any reduction
in the obligation to redeem pursuant to paragraph C shall
promptly be cancelled and shall not thereafter be reissued.
With respect to the Shares to be redeemed in any year, the
Company shall select by lot those Shares which are to be
redeemed.
D. LIQUIDATION. Upon any dissolution, liquidation or winding up
of the Company, the holders of each of said Shares shall be
entitled to receive, before any payment to holders of Common
Shares, all accrued but unpaid dividends, plus the par value
of $10.50 per share and no more. The consolidation or merger
of the Company, at any time, with another corporation, or a
sale of substantially all of the assets of the Company, shall
not be construed as a dissolution, liquidation or winding up
of the Company within the meaning hereof.
E. PRE-EMPTIVE RIGHTS. No holder of any of the Shares shall have
any pre-emptive rights to subscribe for or to purchase any
shares of the Company of any class whether such shares or such
class be now or hereafter authorized, or to purchase or
subscribe for securities convertible into or exchangeable for
shares of any class or to which shall be attached or appertain
any warrants or rights entitling the holder thereof to
purchase or subscribe for shares of any class.
F. AMENDMENT TO ARTICLES. The Company shall not, except upon the
affirmative vote of the holders of a majority of the Shares
outstanding at the time, amend these Articles of Incorporation
in any manner that would result in said Shares being
subordinate in terms of preference as to payments of dividends
or payments on liquidation to any other Preferred Stock of the
Company.
- 8 -
<PAGE> 9
G. GOVERNING TERMS. In the event that the expressed terms of
this amendment are inconsistent with other provisions of
Article Fourth with respect to the terms of the Shares, then
such terms as are expressed in this amendment shall prevail.
SERIES E
--------
2,725,000 Shares of the $10.50 Par, Nonvoting Cumulative
Preferred Stock shall be designated as Series E (hereinafter
referred to as "Share" or "Shares") and shall be issuable upon
the following terms and conditions.:
A. DIVIDEND. Each of said Shares shall have an annual dividend
rate of $1 and no more. Said annual dividend shall be payable
in equal semi-annual installments on the third day of June and
December in each year to holders of record as of the 15th day
of the preceding month, commencing June, 1976. The holders of
said Shares shall be entitled to receive dividends out of any
funds of the Company which at the time are legally available
for dividends before any sum shall be set apart or applied to
(i) the redemption or purchase of or any dividends shall be
declared or paid upon or set apart for the Common Stock, or
(ii) the purchase of any Shares.
B. REDEMPTION. None of said Shares shall be redeemed before
1986. In each of the years 1986 to 1995, inclusive, the
Company shall be obligated to redeem on December 3, 10% of the
total number of said Shares originally issued at the par value
of $10.50 for each of said Shares so redeemed, plus any
accrued but unpaid dividends. This obligation is subject to
credits at the Company's option for the number of said Shares
purchased or redeemed by the Company otherwise than pursuant
to this requirement, and not theretofore made the basis of any
reduction in the aforesaid obligation. In addition to the
aforesaid obligation to redeem said Shares, the Company may,
at its option, redeem an additional 10% of said Shares
originally issued in each of the years 1986 to 1995,
inclusive, at the par value of $10.50 per share, plus any
accrued but unpaid dividends, such optional right of
redemption being cumulative. Any Shares redeemed pursuant to
subparagraph B or which are made the basis for any reduction
in the obligation pursuant to subparagraph B shall promptly be
cancelled and shall not thereafter be reissued. With respect
to the Shares to be redeemed in any year, the Company shall
select by lot those Shares which are to be redeemed.
- 9 -
<PAGE> 10
C. LIQUIDATION. Upon any dissolution, liquidation or winding up
of the Company, the holders of each of said shares shall be
entitled to receive, before any payment to holders of Common
Shares, all accrued but unpaid dividends, plus the par value
of $10.50 per share and no more. The consolidation or merger
of the Company, at any time, with another corporation, or a
sale of substantially all of the assets of the Company, shall
not be construed as a dissolution, liquidation or winding up
of the Company within the meaning hereof.
D. VOTING. Notwithstanding anything to the contrary contained in
this Article Fourth, holders of said Shares shall have no
voting rights except that if and whenever the Company shall be
in arrears on the declaration of payment of two or more semi-
annual dividends, or be in default of its obligation to redeem
said shares, as provided in subparagraph B above, the holders
of all of said Shares, voting separately as a class, shall be
entitled to elect two directors of the Company.
E. PRE-EMPTIVE RIGHTS. No holder of any of the Shares shall have
any preemptive rights to subscribe for or to purchase any
shares of the Company of any class whether such shares or such
class be now or hereafter authorized or to purchase or
subscribe for securities convertible into or exchangeable for
shares of any class or to which shall be attached or appertain
any warrants or rights entitling the holder thereof to
purchase or subscribe for shares of any class.
F. AMENDMENT TO ARTICLES. The Company shall not, except upon the
affirmative vote of the holders of a majority of the Shares
outstanding at the time, amend these Articles of Incorporation
in any manner that would result in said Shares being
subordinate in terms or preference as to payments of dividends
or payments on liquidation to any other Preferred Stock of the
Company.
G. GOVERNING TERMS. In the event that the expressed terms of
this amendment are inconsistent with other provisions of
Article Fourth with respect to the terms of the Shares, then
such terms as are expressed in this amendment shall prevail.
SERIES F
--------
8,000,000 shares of the $1 Par, Nonvoting Cumulative Preferred Stock
shall be designated as Series F (hereinafter referred to as "Share" or
"Shares") and shall be issuable upon the following terms and
conditions:
- 10 -
<PAGE> 11
A. DIVIDEND. Each of said Shares shall have an annual dividend
rate of $1.80 and no more. Said annual dividend shall be
payable in equal semi-annual installments on the 3rd day of
June and December in each year to holders of record as of the
15th day of the preceding month, commencing June 3, 1978. The
holders of said Shares shall be entitled to receive dividends
out of any funds of the Company which at the time are legally
available for dividends before any sum shall be set apart or
applied to (i) the redemption or purchase of or any dividends
shall be declared or paid upon or set apart for the Common
Stock, or (ii) the purchase of any shares.
B. REDEMPTION. None of said Shares shall be redeemed before
1987. In each of the years 1987 to 1996, inclusive, the
Company may redeem on December 3, up to 10% of the total
number of said Shares originally issued at $20 for each of
said Shares so redeemed, plus any accrued but unpaid
dividends. Any Shares redeemed pursuant to Subparagraph B
shall promptly be cancelled and shall not thereafter be
reissued as Series F Nonvoting Cumulative Preferred Stock, but
shall be restored to the status of authorized Nonvoting $1
Par, Cumulative Preferred Stock. With respect to the Shares
to be redeemed in any year, the Company shall select by lot
those Shares which are to be redeemed.
C. LIQUIDATION. Upon any dissolution, liquidation or winding up
of the Company, the holders of each of said Shares shall be
entitled to receive, before any payment to holders of Common
Shares, all accrued but unpaid dividends, plus a liquidation
value of $20 per share and no more. The consolidation or
merger of the Company, at any time, with another corporation,
or a sale of substantially all of the assets of the Company,
shall not be construed as a dissolution, liquidation or
winding up of the Company within the meaning hereof.
D. AMENDMENT TO ARTICLES. The Company shall not, except upon the
affirmative vote of the holders of a majority of the Shares
outstanding at the time, amend these Articles of Incorporation
in any manner that would result in said Shares being
subordinate in terms of preference as to payments of dividends
or payments on liquidation to any other Preferred Stock of the
Company.
E. PRE-EMPTIVE RIGHTS. No holder of any of the Shares shall have
any pre-emptive rights to subscribe for or to purchase any
shares of the Company of any class whether such shares or such
class be now or hereafter authorized or to purchase or
subscribe for securities convertible into or exchangeable for
shares of any class or to which
- 11 -
<PAGE> 12
shall be attached or appertain any warrants or rights
entitling the holder thereof to purchase or subscribe for
shares of any class.
F. GOVERNING TERMS. In the event that the expressed terms of
this amendment are inconsistent with other provisions of
Article Fourth with respect to the terms of the Shares, then
such terms as are expressed in this amendment shall prevail.
SERIES G
--------
2,000,000 shares of the $1 Par, Nonvoting Cumulative Preferred Stock
shall be designated as Series G (hereinafter referred to as "Share" or
"Shares"), and shall be issuable upon the following terms and
conditions:
A. DIVIDEND. Each of the Shares shall have an annual dividend
rate of $1.05 and no more. Said annual dividend shall be
payable in equal semi-annual installments on the third day of
March and September in each year to holders of record as of
the 15th day of the preceding month, commencing March 3, 1980.
The holder of Shares shall be entitled to receive dividends
out of any funds of the Company, which at the time are legally
available for dividends before any sum shall be set apart or
applied to (i) the redemption or purchase of or any dividend
shall be declared or paid upon or set apart for the common
stock, or (ii) the purchase of any Shares.
B. REDEMPTION. None of the Shares shall be redeemed before March
3, 1985. At any time or from time to time after March 2,
1985, the Company may redeem all or any part of the Shares at
a redemption price of $10.50 per share plus any accrued or
declared but unpaid dividends. Any shares redeemed pursuant
to this subparagraph B shall promptly be cancelled and shall
not be thereafter reissued as Series G Nonvoting Cumulative
Preferred Stock, but shall be restored to the status of
authorized $1 Par, Non-voting Cumulative Preferred Stock.
With respect to the Shares to be redeemed, the Company shall
select by lot those shares which are to be redeemed.
C. LIQUIDATION. Upon any dissolution, liquidation or winding up
of the Company, the holders of the Shares shall be entitled to
receive, before any payment to holders of common shares, all
accrued or declared but unpaid dividends, plus a liquidation
price of $10.50 per Share and no more. The consolidation or
merger of the Company, at any time, with another corporation,
or a sale of substantially all of these assets of the Company,
shall not be construed as a dissolution, liquidation or
- 12 -
<PAGE> 13
winding up of the Company within the meaning hereof.
D. AMENDMENT TO ARTICLES. The Company shall not, except upon the
affirmative vote of the holders of a majority of the Shares
outstanding, at the time, amend these Articles of
Incorporation in any manner that would result in the Shares
being subordinate in terms of preference as to payment of
dividends or payments on liquidation to any other preferred
stock of the Company.
E. PRE-EMPTIVE RIGHTS. No holder of any of the Shares shall have
any pre-emptive rights to subscribe for or to purchase any
shares of the Company or any class whether such shares or such
class be now or hereafter authorized to purchase or subscribe
for securities convertible into or exercisable for shares of
any class or to which shall be attached or appertain any
warrants or rights entitled the holder thereof to purchase or
subscribe for any shares of any class.
F. GOVERNING TERMS. In the event that the express terms of this
amendment are inconsistent with other provisions of Article
Fourth with respect to the terms of the Shares, then such
terms as are expressed in this amendment shall prevail.
SERIES H
--------
All 7,700,000 Shares of the $1.50 par, Nonvoting Cumulative Preferred
Stock shall be designated as Series H ("Series H Shares" or "Shares")
and shall be issuable upon the following terms and conditions:
A. DIVIDEND. Each Share shall have an annual dividend rate of
$3.95 and no more. The annual dividend shall be cumulative
and shall be payable in equal semi-annual installments on the
31st day of January and July in each year to holders of record
as of the 15th day of that month, commencing with the July
31st or January 31st next following the original issuance of
Series H shares. The holders of Series H Shares shall be
entitled to receive dividends out of any funds of the Company
which at the time are legally available for dividends before
any sum shall be set apart or applied to (i) the redemption or
purchase of or any dividends upon the Common Stock or (ii) the
purchase of any Series H Shares.
B. REDEMPTION. None of the Series H Shares shall be redeemed
before 1987. In each of the years 1987 to 1991, inclusive,
the Company shall redeem on July 31 20% of the total number of
Series H Shares originally issued, subject to credit for
purchases or retirements other than
- 13 -
<PAGE> 14
pursuant to redemption provisions. The redemption price shall
be $28 per Share plus any accumulated or declared but unpaid
dividends. All Shares redeemed pursuant to this paragraph
shall promptly be cancelled and shall not be reissued. Shares
to be redeemed in any give year shall be selected by the
Company by lot.
C. LIQUIDATION. Upon dissolution, liquidation or winding up of
the Company, each holder of Series H shares shall be entitled
to receive, before any payment to holders of Common Shares,
all accumulated or declared but unpaid dividends, plus a
liquidation price of $28 per share and no more. The
consolidation or merger of the Company at any time with
another corporation or a sale of substantially all of the
assets of the Company shall not be construed as a dissolution,
liquidation or winding up of the Company for purposes of this
paragraph.
D. VOTING. Notwithstanding anything to the contrary in this
Article Fourth, holders of the Series H Shares shall have no
voting rights except as provided by law and except that if at
any time the Company fails to make four consecutive dividend
payments then the number of directors constituting its Board
of Directors will be increased by two and the holders of the
shares, voting as a class with each Share having one vote,
will be entitled to elect two directors to the Board as long
as any arrearages in dividend payments remain outstanding.
Upon payment by the Company of all such dividend arrearages,
the two directors selected pursuant to this provision will
cease to be directors and the holders of Shares will have no
further right to elect directors on account of such
arrearages.
E. PRE-EMPTIVE RIGHTS. No holder of Series H Shares will have
any pre-emptive rights to subscribe for or to purchase any
shares of the Company of any class whether such shares or such
class is now or hereafter authorized or to purchase or
subscribe for securities convertible into or exchangeable for
shares of any class or to which shall be attached any warrants
or rights entitling the holder thereof to purchase or
subscribe for shares of any class.
F. AMENDMENTS TO ARTICLES. The Company shall not, except upon
the affirmative vote of the holders of two-thirds of the
Series H Shares outstanding at the time, amend these Articles
of Incorporation in any manner that would result in the Series
H Shares being subordinate in terms or preference as to
payment of dividends or payments on liquidation to any other
Preferred Stock of the Company.
- 14 -
<PAGE> 15
G. GOVERNING TERMS. In the event that the expressed terms of
this Section IV are inconsistent with other provisions of
Article Fourth, then such terms as are expressed in this
Section IV shall prevail.
H. UNISSUED SHARES. Any unissued Series H Shares shall revert to
the status of authorized but unissued shares of $1.50 par
Nonvoting Cumulative Preferred Stock and the Board of
Directors shall have the right to adopt amendments to the
Articles to fix or change: the division of such shares into
series and designation and authorized number of shares of each
series; the dividend rate; the dates of payment of dividends;
the shares into series and the designation and authorized
number of shares of each series; the dividend rate; the dates
of payment of dividends; the dates from which they are
cumulative; liquidation price; redemption rights and price;
sinking fund requirements; conversion rights; and restrictions
on the issuance of shares of any class or series.
In Witness Whereof, Carl H. Lindner, President, and James E. Evans, Secretary,
of AMERICAN FINANCIAL CORPORATION, acting for and on behalf of said
Corporation, have hereunto subscribed their names, and caused the seal of said
Corporation to be hereunto affixed, this 28th day of October, 1981.
AMERICAN FINANCIAL CORPORATION
By: /s/ Carl H. Lindner
--------------------------
Carl H. Lindner
President
By: /s/ James E. Evans
-------------------------
James E. Evans
Secretary
- 15 -
<PAGE> 16
AMENDMENT TO THE
ARTICLES OF INCORPORATION
(MAY 29, 1985)
RESOLVED: That Article Fourth, Section I.B. (2) of the Company's Consolidated
Articles of Incorporation as amended through October 28, 1981, be amended to
read hereafter as follows:
"$1 Par, Non-Voting Cumulative Preferred Stock--17 million
shares authorized, consisting of the following designated
series:
Series F - 15,000,000
Series G 2,000,000
----------
TOTAL 17,000,000"; and
==========
FURTHER RESOLVED: That Article Fourth, Section III, Series F be amended to
state that 15,000,000 shares of the $1 Par, Nonvoting Cumulative Preferred
Stock shall be designated as Series F.
- 16 -
<PAGE> 17
CERTIFICATE OF AMENDMENT
TO
THE CONSOLIDATED ARTICLES OF INCORPORATION
OF
AMERICAN FINANCIAL CORPORATION
AMERICAN FINANCIAL CORPORATION, a Corporation organized under the laws
of the State of Ohio (the "Company"), hereby certifies:
1. That in an Action in Writing signed by all the members of the
Board of Directors of the Company dated June 19, 1988, the Board of Directors
adopted the resolution attached hereto as Exhibit A proposing and declaring
advisable a certain amendment to the Consolidated Articles of Incorporation.
2. That such amendment was adopted in a writing signed by all of
the shareholders of the Company as of June 20, 1988.
IN WITNESS WHEREOF, American Financial Corporation has caused this
Certificate of Amendment to be executed on behalf of the Company by its
Chairman of the Board and its Secretary as of this 30th day of June 1988.
AMERICAN FINANCIAL CORPORATION
By: /s/ Carl H. Lindner
-----------------------------
Carl H. Lindner, Chairman of
the Board and Chief Executive
Officer
Attest:
/s/ James C. Kennedy
- -----------------------------
James C. Kennedy, Secretary
- 17 -
<PAGE> 18
Exhibit A
RESOLVED THAT: Section I.B. of Article Fourth of the Company's Consolidated
Articles of Incorporation as amended through october 28, 1981 and subsequently
amended on May 29, 1985, is hereby amended by adding at the end thereof the
following paragraph:
(5) $.01 Par, Nonvoting cumulative Preferred Stock -- 20 million
authorized, which, pursuant to a majority vote of all of its members,
the Board of Directors shall have the right, with respect to any
unissued or treasury shares of $.01 Par, Nonvoting Cumulative
Preferred Stock and thereby to fix or change:
(1) the division of such shares into series and the designation
and authorized number of shares of each series and
(2) to provide for each such series:
(a) the dividend rates, dates of payment of dividends,
the dates from which dividends are cumulative;
(b) the amount payable in the event of involuntary or
voluntary liquidation;
(c) redemption rights and terms and prices;
(d) sinking fund provisions;
(e) conversion terms and conditions for the conversion of
shares into the same or a different number of shares of any
other class or any series of the same or any other class;
(f) voting rights in the event of dividend arrearages;
(g) restrictions on the issuance of shares of any class
or series; and
(h) such other designations, preferences and relative
participating options or other special rights and
qualifications, powers, limitations or restrictions thereon as
may be determined by the Board of Directors; all of the
foregoing to the extent authorized from time to time by the
laws of Ohio concerning stock corporations;
All of the foregoing to the extent authorized from time to time by the laws of
Ohio concerning stock corporations.
- 18 -
<PAGE> 19
CERTIFICATE OF AMENDMENT
TO
AMERICAN FINANCIAL CORPORATION
CERTIFICATE OF DESIGNATION, PREFERENCE AND
RIGHTS OF SERIES I PREFERRED STOCK
Certificate of Designation, Preferences and Rights of Preferred Stock
by Resolution of The Board of Directors Providing for an issue of 8,000,000
shares from a class of preferred stock, par value $.01 per share, such series
designated "Series I Preferred Stock", pursuant to Section 1701.70(B)(1) of the
Ohio Revised Code.
__________________________________________________________________
We, Ronald F. Walker, President, and James C. Kennedy, Secretary of
American Financial Corporation (hereinafter referred to as the "Company"), a
corporation organized and existing under the Laws of the State of Ohio, in
accordance with the provisions of Section 1701.70(B)(1) thereof, do HEREBY
CERTIFY:
That pursuant to authority conferred upon the Board of Directors by
the Articles of Incorporation of the Company, as amended, as in effect on the
date thereof, said Board of Directors in an action taken in writing dated June
21, 1988 adopted resolutions providing for the issuance of 700,000 shares from
a class of Preferred Stock to be designated "Series I Preferred Stock", which
resolutions are as follows:
RESOLVED, that pursuant to the authority vested in the Board of
Directors of the Company by the Articles of Incorporation the Board of
Directors does hereby provide for the issue of a series of Preferred Stock of
the Company from the Company's class of 20,000,000 shares of $.01 par value
non-voting preferred shares, to be designated "Series I Preferred Stock"
("Series I Preferred Stock"), such issue to consist of 700,000 shares, which
number of shares may be increased or decreased (but not below the number of
shares thereof then outstanding) from time to time by the Board of Directors,
and to the extent that the voting rights, designations, powers, preferences and
relative participating, optional or other special rights and the
qualifications, limitations or restrictions of the Series I Preferred Stock are
not stated and expressed in the Articles of Incorporation, does hereby fix and
herein state and express the voting rights, designations, powers, preferences
and relative participating, optional or other special rights and the
qualifications, limitations or restrictions thereof, as follows (all terms used
herein which are defined in the Articles of Incorporation shall be deemed to
have the meanings provided therein):
1. DIVIDENDS. The holders of the Series I Preferred Stock
- 19 -
<PAGE> 20
shall be entitled to receive, when, as, and if declared by the Board of
Directors and out of the assets of the Company which are by law available for
the payment of dividends, cumulative preferential dividends in the manner and
at the rates set forth below. For the initial dividend payment to be made on
December 3, 1988, dividends shall accrue and be cumulative from the date of
original issue of the then outstanding shares, and for all subsequent dividend
payments, dividends shall accrue from the next preceding date on which
dividends have been paid. Dividends shall be payable semi-annually on June 3,
and December 3 of each year to holders of record as of the preceding May 15 and
November 15.
<TABLE>
<CAPTION>
Semi-Annual Date Semi-Annual
Date Dividend Paid Rate Per Share Dividend Paid Rate Per Share
- ------------------ -------------- ------------- --------------
<S> <C> <C> <C>
December 3, 1988 June 3, 1996 $1.68
thru and including December 3, 1996 $1.82
June 3, 1993 $1.26 June 3, 1997 $1.86
December 3, 1993 $1.40 December 3, 1997 $1.96
and thereafter
June 3, 1994 $1.40
December 3, 1994 $1.54
June 3, 1995 $1.54
December 3, 1995 $1.68
</TABLE>
Dividends on shares of Series I Preferred Stock shall be paid in cash.
No dividend or other distribution whatsoever shall be declared or paid
upon or set apart for any class of stock or series thereof ranking junior to
the Series I Preferred Stock in the payment of dividends, nor shall any shares
of any class of stock or series thereof ranking junior to the Series I
Preferred Stock in payment of dividends be redeemed or purchased by the Company
or any subsidiary thereof, nor shall any moneys be paid to or made available
for a sinking fund for the redemption or purchase of any shares of any class of
stock or series thereof ranking junior to the Series I Preferred Stock in
payment of dividends, unless in each instance, full dividends on all
outstanding shares of Series I Preferred Stock for all past dividend periods
shall have been paid at the rate fixed therefor and all payments theretofore.
Cash dividends upon shares of the Series I Preferred Stock shall be
payable by check to the registered holders of Series I Preferred Stock at the
address set forth in the books and records of the Company or any transfer agent
and/or registrar appointed for the Series I Preferred Stock and shall commence
to accrue and be cumulative from their respective dates of issuance.
2. PREFERENCE ON LIQUIDATION. The amount of which the holders of
the Series I Preferred Stock shall be entitled to receive in the event of any
voluntary and involuntary liquidation
- 20 -
<PAGE> 21
or dissolution of the Company shall be $28 per share, plus accrued but unpaid
dividends thereon to the date fixed for payment of Series I Preferred Stock.
Such amount shall be paid to the holders of the Series I Preferred Stock prior
to any distribution or payment to the holders of any class of stock or series
thereof ranking junior to the Series I Preferred Stock in the payment of
dividends or distributions of assets on liquidation.
3. REDEMPTION.
A. OPTIONAL REDEMPTION. The Company shall not have the
right to redeem any shares of Series I Preferred Stock until December 3, 1993.
Thereafter, the Company shall have the right, at its option and by resolution
of its Board of Directors, to redeem the Series I Preferred Stock out of funds
legally available therefor, as a whole or in part, at any time or from time to
time, upon payment in cash of $28 per share, plus all dividends accrued thereon
in and unpaid to the date fixed for redemption, against receipt of certificates
evidencing the shares redeemed.
B. NOTICE OF REDEMPTION. Notice of any redemption
specifying the date fixed for said redemption shall be mailed, postage prepaid,
at least 30 days but not more than 60 days prior to said redemption date to the
holders of record of the Series I Preferred Stock to be redeemed at their
respective addresses as the same shall appear on the books and records of the
Company or any transfer agent and/or registrar for the Series I Preferred
Stock. If such notice of redemption shall have been so mailed, and if on or
before the redemption date specified in such notice all funds necessary for
such redemption shall have been set aside by the Company separate and apart
from its other funds, in trust for the account of the holders of the shares so
to be redeemed, so as to be and continue to be available therefor, then, on and
after said redemption date, notwithstanding that any certificate for shares of
the Series I Preferred Stock so called for redemption shall not have been
surrendered for cancellation, the shares represented thereby so called for
redemption shall be deemed to be no longer outstanding, the right to receive
dividends thereon shall cease to accrue, and all rights with respect to such
shares of the Series I Preferred Stock so called for redemption shall forthwith
cease and terminate, except only the right of the holders thereof to receive
out of the funds so set aside in trust the amount payable upon redemption
thereof, but without interest.
4. VOTING RIGHTS. The only voting rights of the holders of
Series I Preferred Stock shall be as set forth below:
A. If at any time an amount equal to the full accrued dividends
for any four or more consecutive semi-annul dividends payable on the Series I
Preferred Stock pursuant to paragraph 1 hereof shall not be paid when payable,
then the number of directors constituting the Board of Directors of the Company
shall be
- 21 -
<PAGE> 22
increased by three and the holders of the Series I Preferred Stock shall have
the right, voting as one class, to elect the directors to fill such newly
created directorships. This right shall remain vested until all dividends in
arrears on any Series I Preferred Stock have been paid, or declared and set
apart for payment, at which time (i) the right to so elect directors shall
terminate (subject to revesting in the case of any subsequent default of the
kind described above); (ii) the term of the directors then in office elected by
such holders shall terminate; and (iii) the number of directors constituting
the Board of Directors of the Company shall be reduced by the number of
directors by which it was increased pursuant to this subparagraph.
Whenever such right shall vest, it may be exercised initially
either at a special meeting of holders of such class of preferred stock or at
any annual stockholders' meeting, but thereafter it may be exercised at
stockholders' meetings called for the purpose of electing directors. A special
meeting for the exercise of such right shall be called by the Secretary of the
Company as promptly as possible, and in any event within 10 days after receipt
of a written request signed by the holders of record of at least 25% of the
outstanding shares of holders of such class of preferred stock.
Notwithstanding the provisions of this subparagraph 4A, no such special meeting
shall be held during the 90-day period preceding the date regularly fixed for
the annual meeting of stockholders.
Any director who shall have been elected by the holders of
such class of preferred stock shall hold office for a term expiring (subject to
the earlier termination of the arrearage in dividends) at the next annual
meeting of stockholders, and during such term may be removed at any time,
without cause, by, and only by, the affirmative votes of the holders of record
of a majority of the outstanding shares of preferred stock given at a special
meeting of such stockholders called for the purpose, except as otherwise
provided by Ohio law with respect to cumulative voting rights, and any vacancy
created by such removal may also be filled at such meeting. A meeting for the
removal of a director elected by the holders of Series I Preferred Stock and
the filling of the vacancy created thereby shall be called by the Secretary of
the Company within 10 days after receipt of a written request signed by the
holders of record of at least 25% of the outstanding shares of such class of
preferred stock.
Any vacancy caused by the death or resignation of a director
who shall have been elected by the holders of such class of preferred stock may
be filled only by the holders of such class at a meeting called for such
purpose. Such meeting shall be called by the Secretary of the Company at the
earliest practicable date after any such death or resignation and in any event
within 10 days after receipt of a written request signed by the holders of
record of at least 25% of the outstanding shares of the documents of
- 22 -
<PAGE> 23
preferred stock.
At such meeting, the presence in person or by proxy of the
holders of a majority of the outstanding shares of such class of preferred
stock, as the case may be, shall be required to constitute a quorum; in the
absence of a quorum, a majority of the holders present in person or by proxy
shall have the power to adjourn the meeting from time to time without notice,
other than announcement at the meeting, until a quorum shall be present.
B. So long as any shares of Series I Preferred Stock are
outstanding, the Company shall not, without the written consent or the
affirmative vote at a meeting called for that purpose of holders of a majority
of the shares of Series I Preferred Stock then outstanding, voting separately
as a class, in any manner, whether by amendment to the Certificate of
Incorporation or By-Laws of the Company, by resolution, by merger (whether or
not the Company is a surviving corporation in such merger), by consolidation,
or otherwise:
(1) modify or adversely affect the relative rights,
preferences or limitations of the Series I Preferred Stock;
(2) authorize or issue, or increase the authorized or
outstanding amount of any class or series of stock ranking prior to the Series
I Preferred Stock in the payment of dividends or the preferential distribution
of assets.
Signed this 24th day of June, 1988.
/s/ Ronald F. Walker
---------------------------------
Ronald F. Walker, President
/s/ James E. Kennedy
--------------------------------
James E. Kennedy, Secretary
- 23 -
<PAGE> 24
AMERICAN FINANCIAL CORPORATION
CERTIFICATE OF AMENDMENT
TO ARTICLES OF INCORPORATION
James E. Evans, Vice President, and James C. Kennedy, Secretary of
American Financial Corporation, an Ohio corporation (the "Corporation") do
hereby certify that a meeting of the shareholders was duly called and held on
the 8th day of December, 1994, at which meeting a quorum of the shareholders
was present in person or by proxy, and by the affirmative vote of the holders
of shares entitling them to exercise 100% of the voting power of the
Corporation, the following resolution was adopted to amend the Corporation's
Articles of Incorporation:
RESOLVED, that the Corporation's Articles of Incorporation be amended
to eliminate cumulative voting, specifically, to add a new Section
II.D to Article Fourth to read in its entirety as follows:
D. CUMULATIVE RIGHTS. No holder of any shares of the
Corporation, whether now in existence or hereafter
created, whether Common or Cumulative Preferred,
shall have any right to vote cumulatively in the
election of directors.
IN WITNESS WHEREOF, the above named officers, acting for and on behalf
of the Corporation, have hereunto subscribed their names this 23rd day of
January, 1995.
/s/ James E. Evans
-----------------------------------
James E. Evans
Vice President
/s/ James C. Kennedy
---------------------------------
James C. Kennedy
Secretary
- 24 -
<PAGE> 25
CERTIFICATE OF AMENDMENT TO
ARTICLES OF INCORPORATION
OF AMERICAN FINANCIAL CORPORATION
James E. Evans, Vice President, and James C. Kennedy, Secretary of
AMERICAN FINANCIAL CORPORATION, an Ohio corporation (the "Company"), do hereby
certify that, by unanimous written consent of the shareholders of the Company
effective as of March 22, 1995, the shareholders of the Company adopted the
following resolutions:
RESOLVED, that Article Fourth of the Articles of Incorporation of the
Company be amended and restated in its entirety as follows:
FOURTH
------
I. AUTHORIZED CAPITAL. The Company is authorized to issue shares
of Capital Stock designated, described and limited as follows:
A. COMMON STOCK WITHOUT PAR VALUE - 53.5 MILLION SHARES
AUTHORIZED
B. PREFERRED STOCK
1. $1 Par, Nonvoting Cumulative Preferred Stock
-- 17 Million Shares Authorized, Consisting
of The Following Designated Series:
SERIES F - 15,000,000
SERIES G - 2,000,000
---------
TOTAL 17,000,000
==========
2. $10.50 Par, Nonvoting Cumulative Preferred
Stock -- 11.1 Million Shares Authorized,
Consisting of the Following Designated
Series:
Not Serially Designated - 8,375,000
SERIES E - 2,725,000
---------
TOTAL 11,100,000
==========
3. $.01 Par, Nonvoting cumulative Preferred
Stock -- 10 million authorized, which,
pursuant to a majority vote of all of its
members, the Board of Directors shall have
the right, with respect to any unissued or
treasury shares of $.01 Par, Nonvoting
Cumulative Preferred Stock and thereby to fix
or change:
- 25 -
<PAGE> 26
a. the division of such shares into
series and the designation and
authorized number of shares of each
series, and
b. to provide for each such series:
(1) the dividend rates, dates of
payment of dividends, the
dates from which dividends
are cumulative;
(2) the amount payable in the
event of involuntary or
voluntary liquidation;
(3) redemption rights and terms
and prices;
(4) sinking fund provisions;
(5) conversion terms and
conditions for the
conversion of shares into
the same or a different
number of shares of any other
class or any series of the
same or any other class;
(6) voting rights in the event
of dividend arrearages;
(7) restrictions on the issuance
of shares of any class or
series; and
(8) such other designations,
preferences and relative
participating options or
other special rights and
qualifications, powers,
limitations or restrictions
thereon as may be determined
by the Board of Directors;
all of the foregoing to the
extent authorized from time
to time by the laws of Ohio
concerning stock
corporations;
All of the foregoing to the extent authorized from time to time by the
laws of Ohio concerning stock corporations.
II. General Provisions.
------------------
A. PRE-EMPTIVE RIGHTS. No holder of any shares of the
Company, whether Common or Cumulative Preferred,
shall have any pre-emptive rights to subscribe for or
to purchase any shares of the Company of any class
whether such shares or such class be now or
- 26 -
<PAGE> 27
hereafter authorized or to purchase or subscribe for
securities convertible into or exchangeable for
shares of any class or to which shall be attached or
appertain any warrants or rights entitling the holder
thereof to purchase or subscribe for shares of any
class.
B. DIVIDEND RIGHTS. The holders of the Cumulative
Preferred Stock shall be entitled to receive
dividends out of any funds of the Company at the time
legally available for dividends when and as declared
by the Board of Directors at such rate per share per
annum as shall be fixed by the Board of Directors for
such series as hereinafter provided before any sum
shall be set apart or applied to the redemption or
purchase of or any dividends shall be declared or
paid upon or set apart for the Common Stock. In the
event of any liquidation, dissolution or winding up
of the Company, the holders of Cumulative Preferred
Stock shall be entitled to receive out of the assets
of the Company payment of an amount per share as
determined by the Board of Directors as a liquidation
price as hereinafter provided (including accrued
dividends, if any) before any distribution of assets
shall be made to the holders of the Common Stock.
C. VOTING RIGHTS. The voting power of the Company shall
reside in the Common Stock except as set forth
hereafter with respect to the Cumulative Preferred
Stock.
Each share of Voting Cumulative Preferred Stock shall
have the same voting rights as each share of Common
Stock of the Company.
The following provisions apply to the accrual and
termination of voting rights with respect to
Nonvoting Cumulative Preferred Stock.
1. Holders of $1 PAR NONVOTING CUMULATIVE
PREFERRED STOCK shall have no voting rights
except that if and whenever the Company shall
be in arrears on the declaration of payment
of dividends on the outstanding $1 Par
Nonvoting Cumulative Preferred Stock in an
amount equivalent to Six (6) full quarterly
dividends thereon, the holders of the $1 Par
Nonvoting cumulative Preferred Stock, voting
separately as a class, shall be entitled to
elect two Directors out of the then number of
Directors
- 27 -
<PAGE> 28
of the Company, such rights shall continue
until full cumulative dividends for all past
dividend periods and the dividend for the
current dividend period on the $1 Par
Nonvoting Cumulative Preferred Stock shall
have been declared and paid or provided for.
2. Holders of the $10.50 PAR NONVOTING
CUMULATIVE PREFERRED STOCK shall have no
voting rights except that if and whenever the
Company shall be in arrears on the
declaration of payment of dividends on said
Stock as hereinafter provided, or be in
default of its obligation to redeem said
Stock in holders of all of the $10.50 Par
Shares, voting separately as a class, shall
be entitled to elect, at any one time, the
highest number of Directors of the Company
that results from applying the two following
formulae:
During any time in which the following number
of semi-annual installments of dividends
whether or not consecutive have not been paid
in whole or in part when due, and as long as
the same remain unpaid in whole or in part,
or in which the following number of
redemption payments, whether or not
consecutive, have not been made when due, and
as long as they are not made in whole or in
part:
<TABLE>
<CAPTION>
Number of Number of Authorized
Semi-Annual Annual Number of
Dividend Redemption AFC
Installments Payments Directors
------------ ---------- -----------
<S> <C> <C>
2 1 Smallest number
constituting at
least 25%
4 2 Smallest number
constituting at
least 40%
6 3 Smallest Number
constituting a
majority
</TABLE>
3. In the event voting rights accrue to the
holders of Nonvoting cumulative Preferred
Stock as described in (1) and/or (2) above,
then holders of the Voting Stock of the
Company, voting separately as a class, shall
- 28 -
<PAGE> 29
be entitled to elect the remainder of the Board
of Directors.
D. CUMULATIVE RIGHTS. No holder of any shares of the
Corporation, whether now in existence or hereafter
created, whether Common or Cumulative Preferred,
shall have any right to vote cumulatively in the
election of directors.The voting power of the Company
shall reside in the Common Stock except as set forth
hereafter with respect to the Cumulative Preferred
Stock.
III. Preferred Stock Series Designations.
-----------------------------------
The Board of Directors shall have the right to adopt
amendments to the Articles with respect to any unissued or
treasury shares of Cumulative Preferred Stock and thereby to
fix or change: the division of such shares into series and
the designation and authorized number of shares of each
series; the dividend rate; the dates of payment of dividends;
the dates from which dividends are cumulative; liquidation
price; redemption rights and price; sinking fund requirement;
conversion rights; and restrictions on the issuance of shares
of any class or series.
The specific series of Cumulative Preferred Stock designated
are as follows:
SERIES E
--------
2,725,000 Shares of the $10.50 Par, Nonvoting Cumulative
Preferred Stock shall be designated as Series E (hereinafter
referred to as "Share" or "Shares") and shall be issuable upon
the following terms and conditions.:
A. DIVIDEND. Each of said Shares shall have an annual
dividend rate of $1 and no more. Said annual
dividend shall be payable in equal semi-annual
installments on the third day of June and December in
each year to holders of record as of the 15th day of
the preceding month, commencing June, 1976. The
holders of said Shares shall be entitled to receive
dividends out of any funds of the Company which at
the time are legally available for dividends before
any sum shall be set apart or applied to (i) the
redemption or purchase of or any dividends shall be
declared or paid upon or set apart for the Common
Stock, or (ii) the purchase of any Shares.
- 29 -
<PAGE> 30
B. REDEMPTION. None of said Shares shall be redeemed
before 1986. In each of the years 1986 to 1995,
inclusive, the Company shall be obligated to redeem
on December 3, 10% of the total number of said Shares
originally issued at the par value of $10.50 for each
of said Shares so redeemed, plus any accrued but
unpaid dividends. This obligation is subject to
credits at the Company's option for the number of
said Shares purchased or redeemed by the Company
otherwise than pursuant to this requirement, and not
theretofore made the basis of any reduction in the
aforesaid obligation. In addition to the aforesaid
obligation to redeem said Shares, the Company may, at
its option, redeem an additional 10% of said Shares
originally issued in each of the years 1986 to 1995,
inclusive, at the par value of $10.50 per share, plus
any accrued but unpaid dividends, such optional right
of redemption being cumulative. Any Shares redeemed
pursuant to subparagraph B or which are made the
basis for any reduction in the obligation pursuant to
subparagraph B shall promptly be cancelled and shall
not thereafter be reissued. With respect to the
Shares to be redeemed in any year, the Company shall
select by lot those Shares which are to be redeemed.
C. LIQUIDATION. Upon any dissolution, liquidation or
winding up of the Company, the holders of each of
said shares shall be entitled to receive, before any
payment to holders of Common Shares, all accrued but
unpaid dividends, plus the par value of $10.50 per
share and no more. The consolidation or merger of
the Company, at any time, with another corporation,
or a sale of substantially all of the assets of the
Company, shall not be construed as a dissolution,
liquidation or winding up of the Company within the
meaning hereof.
D. VOTING. Notwithstanding anything to the contrary
contained in this Article Fourth, holders of said
Shares shall have no voting rights except that if and
whenever the Company shall be in arrears on the
declaration of payment of two or more semi-annual
dividends, or be in default of its obligation to
redeem said shares, as provided in subparagraph B
above, the holders of all of said Shares, voting
separately as a class, shall be entitled to elect two
directors of the Company.
E. PRE-EMPTIVE RIGHTS. No holder of any of the Shares
shall have any preemptive rights to subscribe for
- 30 -
<PAGE> 31
or to purchase any shares of the Company of any class
whether such shares or such class be now or hereafter
authorized or to purchase or subscribe for securities
convertible into or exchangeable for shares of any
class or to which shall be attached or appertain any
warrants or rights entitling the holder thereof to
purchase or subscribe for shares of any class.
F. AMENDMENT TO ARTICLES. The Company shall not, except
upon the affirmative vote of the holders of a
majority of the Shares outstanding at the time, amend
these Articles of Incorporation in any manner that
would result in said Shares being subordinate in
terms or preference as to payments of dividends or
payments on liquidation to any other Preferred Stock
of the Company.
G. GOVERNING TERMS. In the event that the expressed
terms of this amendment are inconsistent with other
provisions of Article Fourth with respect to the
terms of the Shares, then such terms as are expressed
in this amendment shall prevail.
SERIES F
--------
15,000,000 shares of the $1 Par, Nonvoting Cumulative
Preferred Stock shall be designated as Series F (hereinafter
referred to as "Share" or "Shares") and shall be issuable upon
the following terms and conditions:
A. DIVIDEND. Each of said Shares shall have an annual
dividend rate of $1.80 and no more. Said annual
dividend shall be payable in equal semi-annual
installments on the 3rd day of June and December in
each year to holders of record as of the 15th day of
the preceding month, commencing June 3, 1978. The
holders of said Shares shall be entitled to receive
dividends out of any funds of the Company which at
the time are legally available for dividends before
any sum shall be set apart or applied to (i) the
redemption or purchase of or any dividends shall be
declared or paid upon or set apart for the Common
Stock, or (ii) the purchase of any shares.
B. REDEMPTION. None of said Shares shall be redeemed
before 1987. In each of the years 1987 to 1996,
inclusive, the Company may redeem on December 3, up
to 10% of the total number of said Shares originally
issued at $20 for each of said Shares so
- 31 -
<PAGE> 32
redeemed, plus any accrued but unpaid dividends. Any
Shares redeemed pursuant to Subparagraph B shall
promptly be cancelled and shall not thereafter be
reissued as Series F Nonvoting Cumulative Preferred
Stock, but shall be restored to the status of
authorized Nonvoting $1 Par, Cumulative Preferred
Stock. With respect to the Shares to be redeemed in
any year, the Company shall select by lot those
Shares which are to be redeemed.
C. LIQUIDATION. Upon any dissolution, liquidation or
winding up of the Company, the holders of each of
said Shares shall be entitled to receive, before any
payment to holders of Common Shares, all accrued but
unpaid dividends, plus a liquidation value of $20 per
share and no more. The consolidation or merger of
the Company, at any time, with another corporation,
or a sale of substantially all of the assets of the
Company, shall not be construed as a dissolution,
liquidation or winding up of the Company within the
meaning hereof.
D. AMENDMENT TO ARTICLES. The Company shall not, except
upon the affirmative vote of the holders of a
majority of the Shares outstanding at the time, amend
these Articles of Incorporation in any manner that
would result in said Shares being subordinate in
terms of preference as to payments of dividends or
payments on liquidation to any other Preferred Stock
of the Company.
E. PRE-EMPTIVE RIGHTS. No holder of any of the Shares
shall have any pre-emptive rights to subscribe for or
to purchase any shares of the Company of any class
whether such shares or such class be now or hereafter
authorized or to purchase or subscribe for securities
convertible into or exchangeable for shares of any
class or to which shall be attached or appertain any
warrants or rights entitling the holder thereof to
purchase or subscribe for shares of any class.
F. GOVERNING TERMS. In the event that the expressed
terms of this amendment are inconsistent with other
provisions of Article Fourth with respect to the
terms of the Shares, then such terms as are expressed
in this amendment shall prevail.
- 32 -
<PAGE> 33
SERIES G
--------
2,000,000 shares of the $1 Par, Nonvoting Cumulative Preferred
Stock shall be designated as Series G (hereinafter referred to
as "Share" or "Shares"), and shall be issuable upon the
following terms and conditions:
A. DIVIDEND. Each of the Shares shall have an annual
dividend rate of $1.05 and no more. Said annual
dividend shall be payable in equal semi-annual
installments on the third day of March and September
in each year to holders of record as of the 15th day
of the preceding month, commencing March 3, 1980.
The holder of Shares shall be entitled to receive
dividends out of any funds of the Company, which at
the time are legally available for dividends before
any sum shall be set apart or applied to (i) the
redemption or purchase of or any dividend shall be
declared or paid upon or set apart for the common
stock, or (ii) the purchase of any Shares.
B. REDEMPTION. None of the Shares shall be redeemed
before March 3, 1985. At any time or from time to
time after March 2, 1985, the Company may redeem all
or any part of the Shares at a redemption price of
$10.50 per share plus any accrued or declared but
unpaid dividends. Any shares redeemed pursuant to
this subparagraph B shall promptly be cancelled and
shall not be thereafter reissued as Series G
Nonvoting Cumulative Preferred Stock, but shall be
restored to the status of authorized $1 Par,
Non-voting Cumulative Preferred Stock. With respect
to the Shares to be redeemed, the Company shall
select by lot those shares which are to be redeemed.
C. LIQUIDATION. Upon any dissolution, liquidation or
winding up of the Company, the holders of the Shares
shall be entitled to receive, before any payment to
holders of common shares, all accrued or declared but
unpaid dividends, plus a liquidation price of $10.50
per Share and no more. The consolidation or merger
of the Company, at any time, with another
corporation, or a sale of substantially all of these
assets of the Company, shall not be construed as a
dissolution, liquidation or winding up of the Company
within the meaning hereof.
D. AMENDMENT TO ARTICLES. The Company shall not, except
upon the affirmative vote of the holders of
- 33 -
<PAGE> 34
a majority of the Shares outstanding, at the time,
amend these Articles of Incorporation in any manner
that would result in the Shares being subordinate in
terms of preference as to payment of dividends or
payments on liquidation to any other preferred stock
of the Company.
E. PRE-EMPTIVE RIGHTS. No holder of any of the Shares
shall have any pre-emptive rights to subscribe for or
to purchase any shares of the Company or any class
whether such shares or such class be now or hereafter
authorized to purchase or subscribe for securities
convertible into or exercisable for shares of any
class or to which shall be attached or appertain any
warrants or rights entitled the holder thereof to
purchase or subscribe for any shares of any class.
F. GOVERNING TERMS. In the event that the express terms
of this amendment are inconsistent with other
provisions of Article Fourth with respect to the
terms of the Shares, then such terms as are expressed
in this amendment shall prevail.
RESOLVED, that a new Article Sixth be added to the Articles of
Incorporation to read as follows:
SIXTH
-----
The provisions of Ohio Revised Code Section 1701.831 or any
successor provisions relating to control share acquisitions
shall not be applicable to this Corporation.
- 34 -
<PAGE> 35
IN WITNESS WHEREOF, the undersigned have hereunto set their respective
hands on behalf of the Company this 31st day of March, 1995.
AMERICAN FINANCIAL CORPORATION
By:/s/ James E. Evans
-------------------------------
James E. Evans, Vice President
By:/s/ James C. Kennedy
--------------------------------
James C. Kennedy, Secretary
- 35 -
<PAGE> 36
CODE OF REGULATIONS
OF
AMERICAN FINANCIAL CORPORATION
(An Ohio Corporation)
As amended to April 20, 1988
CODE OF REGULATIONS
OF
AMERICAN FINANCIAL CORPORATION
ARTICLE I
MEETING OF SHAREHOLDERS
SECTION 1. PLACE OF MEETINGS. All meetings of the
shareholders of AMERICAN FINANCIAL CORPORATION (hereinafter called the Company)
shall be held at the office of the Company in the City of Cincinnati, in the
State of Ohio, or at such other places, either within or without the State of
Ohio, as may from time to time be fixed by the Board of Directors of the
Company (hereinafter called the Board) or as specified in the notice calling
any such meeting.
SECTION 2. ANNUAL MEETING. The regular Annual Meeting of the
Shareholders having voting power shall be held at the hour of 2:00 p.m. on the
fourth Tuesday in May of each year, or such other day or time in May as fixed
by the Board of Directors. At such Meeting the Shareholders shall elect
Directors and transact such other business as may properly be brought before
the Meeting. If the election of Directors shall not be held on the date
designated herein for the Annual Meeting, the Board shall cause the elections
to be held as soon as practicable thereafter. At any such Meeting the
Shareholders may elect Directors in the manner hereinafter provided and
transact other business with the same force and effect as if at any Annual
Meeting duly called and held.
SECTION 3. SPECIAL MEETINGS. Special meetings of the
shareholders for any purpose or purposes may be called by the President, any
Vice President, the Board of Directors, or at the request of the holders of not
less than one-tenth (1/10) of all of the shares entitled to vote at the
meeting. Such request shall state the purpose or purposes of the proposed
meeting.
SECTION 4. NOTICE OF MEETING. Notices of meetings of
shareholders shall be given as required by the statutes of the State of Ohio.
Notice need not be given to any shareholder who shall in writing waive notice
of any meeting, whether before, at or after the meeting. Notice of any
adjourned meeting need not be given, except where expressly required by law.
SECTION 5. QUORUM AND ADJOURNMENT. At any meeting of
shareholders, the holders of a majority of the stock issued and outstanding and
entitled to vote thereat, present in person or represented by proxy, shall
constitute a quorum for the transaction of any business, except as otherwise
provided by law
<PAGE> 37
or by the Articles of Incorporation. In the absence of a
quorum at any such meeting or any adjournment thereof, a majority in interest
of those shareholders present in person or represented by proxy and entitled to
vote thereat, or, in the absence therefrom of all the shareholders, any officer
entitled to preside at, or to act as secretary of, such meeting, may adjourn
such meeting from time to time until a quorum shall be present, provided that
no one adjournment shall be for a period in excess of 60 days. At any such
adjourned meeting in which a quorum shall be present, any business may be
transacted which might have been transacted at the meeting as originally
called.
SECTION 6. VOTING. At each meeting of shareholders, each
shareholder of the Company shall be entitled to one vote in person or by proxy
appointed by an instrument in writing subscribed by such shareholder or by his
duly authorized attorney-in-fact and bearing a date not more than eleven months
prior to such meeting, unless said instrument expressly provides for a longer
period, for each share of the capital stock of the Company held by him and
registered in his name on the books of the Company at the date fixed as the
record date for the determination of shareholders entitled to notice of and to
vote at such meeting, or as the date for closing the stock transfer books of
the Company, or if no such dates shall have been so fixed, at such other record
date as may be prescribed by law. At all meetings of shareholders at which a
quorum is present all matters shall be decided by a vote of the majority in
interest of the shares of stock present in person or represented by proxy and
entitled to vote thereat, except as otherwise provided by law, the Articles of
Incorporation or this Code of Regulations. Unless required by law, or unless
demanded by a shareholder present in person or represented by proxy and
entitled to vote at any meeting of shareholder, or unless directed by the
chairman of the meeting, the vote on any matter need not be by ballot. Upon a
demand by any such shareholder for a vote by ballot on any matter, or at the
direction of such chairman that a vote by ballot be taken on any matter, such
vote shall be taken by ballot.
SECTION 7. CONDUCT OF MEETINGS. Each meeting of shareholders
shall be presided over by the President, or if the President shall not be
present, by the Vice President. In the absence of both of these officers, a
chairman shall be chosen by a vote of a majority in voting interest of those
shareholders present in person or represented by proxy. The Secretary of the
Company, if present, shall act as Secretary of each meeting of shareholders, or
if he shall not be present, the Assistant Secretary shall so act. If neither
the Secretary nor the Assistant Secretary shall be present, a secretary shall
be appointed by the chairman of such meeting.
ARTICLE II
BOARD OF DIRECTORS
<PAGE> 38
SECTION 1. POWERS; NUMBER; TERM; ELECTION. The property,
affairs and business of the Company shall be managed by the Board of Directors,
and in addition to the powers expressly conferred upon it by this Code of
Regulations, the Board may exercise all such other powers as are not by statute
or by the Articles of Incorporation or by this Code of Regulations required to
be exercised by the shareholders. Directors need not be residents of this
state or shareholders of the Company. The Board shall consist of the number of
Directors as shall be fixed by the Shareholders which shall not be less than
three nor more than fifteen.
Each shareholder entitled to vote shall have the right to nominate
persons to be voted upon. A shareholder may cast all of his votes for one
Director or may divide them among several Directors in such manner as he
desires. At all meetings of shareholders for the election of Directors at
which a quorum shall be present, the persons receiving the highest number of
votes in consecutive order shall be elected Directors.
The term of office of each Director shall be from the time of his
election and qualification until his successor shall have been duly elected and
shall qualify, or until his death, or until he shall resign, or until he shall
have been removed in the manner hereinafter provided. The entire membership or
the Board of Directors shall be elected at each Annual Meeting of Shareholders.
SECTION 2. ORGANIZATION. The Board may, in its own
discretion, elect a Chairman of the Board for such term and with such duties as
the Board may by resolution prescribe. If there be a Chairman of the Board, he
shall preside at each meeting of the Board. If there be no Chairman of the
Board or in his absence, those members who are present shall by majority vote
designate one of their number to preside. The Secretary, or in his absence the
Assistant Secretary, or in the absence of both the Secretary and the Assistant
Secretary, any person appointed by the Chairman of the meeting, shall act as
Secretary of the meeting.
SECTION 3. RESIGNATIONS. Any Director of the Company may
resign at any time by giving written notice to the Board of Directors or to the
President or to the Secretary of the Company. Such resignation shall take
effect at the date of the receipt of such notice or at any later time specified
therein, and, unless otherwise specified therein, the acceptance of such
resignation shall not be necessary to make it effective.
SECTION 4. REMOVAL. At a meeting called expressly for that
purpose, the entire Board or any lesser number may be removed, with or without
cause, by a vote of the shareholders. The entire Board may be removed in a
single ballot if the holders of a
4
<PAGE> 39
majority of the shares entitled to vote, vote for such removal. A new Board
will then be elected. One or more of the members of the Board which has just
been removed, if the shareholders so desire, may be re-elected to membership on
the new Board. If the removal of less than the entire Board is in question,
then the removal of each director whose continuance in office is under dispute
shall be voted upon separately, and his removal shall be effected only if the
fraction of votes cast against his removal is not more than the fraction
computed by dividing the number of Directors fixed by the Code of Regulations
into one.
SECTION 5. VACANCIES. Any vacancy occurring in the Board by
reason of death, resignation, disqualification or any other cause, may be
filled by the affirmative vote of a majority of the remaining Directors even
though a quorum may not exist. A Director elected to fill a vacancy shall hold
office until his successor shall have been elected and shall qualify. Any
directorship to be filled by reason of an increase in the number of Directors
shall be filled by an election at an annual meeting of shareholders or at a
special meeting of shareholders called for that purpose. At any such meeting,
the entire Board shall stand for election, in order that the privilege of
cumulative voting shall not be impaired.
SECTION 6. PLACE OF MEETINGS. The Board may hold its
meetings at such place or places, either within or without the State of Ohio,
as it may from time to time by resolution determine or as shall be specified or
fixed in the respective notices or waivers of notice thereof.
SECTION 7. FIRST MEETING; REGULAR MEETINGS. After each
election of Directors and after the meeting of shareholders at which such
election shall be held, and as soon thereafter as practical, the newly elected
Board shall meet for the purpose of organization, the election of officers of
the Company and the transaction of other business. Notice of such meeting need
not be given if held on the same day as the shareholders' meeting at which the
Directors were elected. If not held on the day of the meeting of shareholders
at which the Directors were elected, notice of the first meeting of Directors
shall be given in accordance with the provisions of Section 8 of this Article
II below. Regular meetings of the Board may be held at such time and place as
may from time to time be specified in a resolution adopted by the Board and at
the time in effect and, unless otherwise required by such resolution or by law,
notice of any such regular meeting need not be given.
SECTION 8. SPECIAL MEETINGS. Special meetings of the Board
shall be held whenever called by the Chairman of the Board if such there be,
the President, or by the Secretary at the request of any two Directors. Notice
of each such meeting shall be mailed to each Director, addressed to him at his
residence or
5
<PAGE> 40
usual place of business, at least 3 days before the day on which the meeting is
to be held, or shall be sent to him at such place by telegraph, cable or radio,
or be delivered personally or by telephone, at least 2 days before the day on
which the meeting is to be held. Every such notice shall state the time and
place, but need not state the purpose, of the meeting. Notice of any such
meeting need not be given to any Director, however, if waived by him in writing
or by telegraph, cable or radio, whether before, at or after such meeting is
held, or if he shall attend such meeting in person, or if he shall sign the
minutes thereof, and any meeting of the Board, whether regular or special,
shall be a legal meeting without any notice thereof having been given if all of
the Directors shall be present thereat or shall sign the minutes thereof.
SECTION 9. QUORUM AND MANNER OF ACTING. A majority of the
number of Directors fixed by this Code of Regulations at the time of any
regular or special meeting of the Board of Directors shall constitute a quorum
for the transaction of business at such meeting, and the act of a majority of
the Directors present at any meeting at which a quorum is present shall be the
act of the Board of Directors. In the absence of a quorum, a majority of the
Directors present may, without notice other than announcement at the meeting,
adjourn the meeting from time to time until a quorum be had.
SECTION 10. COMPENSATION. The Board may by resolution
provide that the Company shall allow a fixed sum and reimbursement of expenses
for attendance at meetings of the Board and at meetings of the Executive
Committee. Nothing herein contained shall preclude any Director from serving
the Company in any other capacity and receiving compensation therefor.
SECTION 11. INDEMNIFICATION OF DIRECTORS. Each Director and
officer or former Director or officer of the Company, or any person who may
have served at its request as a Director or officer of another corporation in
which this Company owns shares of stock or of which it is a creditor, and the
personal representatives of all such persons, shall be indemnified by the
Company against all expenses and liabilities, including attorneys' fees,
reasonably incurred by or imposed upon him in connection with any claim,
demand, action or proceeding to which he may be made a party, or in which he
may become involved, or in connection with any settlement thereof, by reason of
his being or having been such a Director or officer of such Company, except in
cases where he shall be finally adjudged in such action or proceeding to be
liable for gross negligence or willful misconduct in the performance of his
duties as such Director or officer. The right of indemnification herein
provided shall be in addition to, and not exclusive of, all other rights to
which such Director or officer may be entitled by law, vote of the
shareholders, or otherwise. It is provided, however, that such
6
<PAGE> 41
Director or officer shall not be so indemnified in the event of a settlement of
any such action, suit or proceeding unless (1) such settlement shall be
approved by the court having jurisdiction of such action, suit or proceeding,
or (2) such settlement shall have been made upon the written opinion of
independent legal counsel, selected by or in a manner determined by the Board
of Director; to the effect that there is no reasonable ground of liability for
gross negligence or willful misconduct on the part of such Director or officer.
ARTICLE III
EXECUTIVE COMMITTEE
SECTION 1. DESIGNATION. The Board may, by resolution
adopted by a majority of the number of Directors fixed by this Code of
Regulations, designate three or more members of the Board to constitute an
Executive Committee of the Board, and may designate a Chairman of the Executive
Committee who, if present, shall preside at meetings of the Executive
Committee. In the event of the absence of the designated Chairman at any
meeting of the Executive Committee or in the event the Board has not designated
a Chairman, the members thereof present shall designate one of their number to
preside at such meeting. The Secretary of the Company, or such other person as
the Executive Committee shall from time to time determine shall act as
Secretary of the Executive Committee. The Board, in like manner, shall fill
vacancies in the Executive Committee. Each member of the Executive Committee
shall continue to be a member thereof only during the pleasure of a majority of
the number of directors fixed by this Code of Regulations.
SECTION 2. POWERS. Except as otherwise expressly provided
in the Certificate of Incorporation or in this Code of Regulations or by law,
at all times when the Board is not in session, the Executive Committee shall
have and may exercise all the powers of the Board in the direction and
management of the property, business and affairs of the Company in such manner
as the Executive Committee shall deem for the best interest of the Company, in
all cases in which specific directions shall not have been given by the Board.
SECTION 3. MEETINGS. The Executive Committee shall hold
meetings at such times and at such places as may be provided by resolution of
the Executive Committee. Special meetings of the Executive Committee may be
called at any time by the Chairman or by any two members thereof. Notice of
each such meeting shall be mailed to each member of the Executive Committee,
addressed to him at his residence or usual place of business, so as to be
received not less than 24 hours before the meeting, or shall be sent to him at
such place by telegraph, cable or radio, or be
7
<PAGE> 42
delivered personally or by telephone not less than 24 hours before such
meeting. Every such notice shall state the time and place, but need not state
the purpose of the meeting. Notice of any such meeting need not be given to
any member, however, if waived by him in writing or by telegraph, cable or
radio, whether before, at or after such meeting is held, or if he shall attend
such meeting in person, or if he shall sign the minutes thereof, and any
meeting of the Executive Committee, whether regular or special, shall be legal
meeting without any notice thereof having been given if all of the member of
the Executive Committee shall be present thereat and shall sign the minutes
thereof.
SECTION 4. QUORUM PROCEDURE. At every meeting of the
Executive Committee, a majority of the members of the Executive Committee in
office at the time of such meeting shall constitute a quorum for the
transaction of business. Any act of a majority of the members present at a
meeting in which a quorum shall be present shall be the act of the Executive
Committee. The Executive Committee shall keep a record of its proceedings and
report them to the Board at the next meeting thereof after such proceeding
shall have been taken.
ARTICLE IV
AUDIT COMMITTEE
SECTION 1. DESIGNATION. The Company may, by resolution
adopted by its Directors designate three or more members of the Board of
Directors to constitute an Audit Committee and may designate a Chairman of the
Audit Committee who, if present, shall preside at meetings of the Audit
Committee. Each member of the Audit Committee shall serve at the pleasure of
the Board. The Board shall fill vacancies in the Audit Committee.
SECTION 2. DUTIES, POWERS AND FUNCTIONS. The Audit
Committee may undertake the following duties, powers and functions:
(a) To review the financial and accounting policies, procedures and
controls of the Company and its subsidiaries (hereinafter collectively referred
to as the "Company" in this Article unless otherwise stated) and recommend, as
the Audit Committee deems necessary or appropriate, changes and improvements
thereto designed to, among other things:
(i) assure accountability for the assets of the Company and
appropriate controls regarding the use of such assets by any officer or
Director of the Company, or any relative of any of them, and
(ii) provide appropriate controls for direct or indirect loans,
extensions of credit, contracts, commitments,
8
<PAGE> 43
arrangements or understandings between the Company and any officer or Director
of the Company, or any relative of any of them.
For the purposes of this Article, the term "relative" shall mean any spouse,
parent, child, brother, sister, or the spouse of any such person.
(b) To review annual and quarterly financial statements issued or
filed by the Company with the Securities and Exchange Commission.
(c) To meet with the Company's independent auditors from time to
time and review the nature, scope and findings of the audit of the Company's
financial statements.
(d) To make recommendations to the Board of the Company (parent
company only) with respect to any disagreement or controversy between the
independent auditors and the management of the company which has been brought
to the Audit Committee's attention.
(e) To recommend to the Board of the Company (parent company only)
the selection, retention or discharge of the Company's independent auditors.
(f) To meet with the internal auditors of the Company from time to
time and review the findings of the internal auditors. The internal auditors
may submit a written statement to the Audit Committee each calendar quarter
regarding the work performed by the internal auditors during the relevant
period.
(g) To initially approve or disapprove in writing, and thereafter
review any loan or extension of credit in excess of $50,000, except mortgage
loans extended for the purpose of acquiring real property and secured by such
property, and, as the Audit Committee in its discretion deems necessary or
appropriate, any other business transaction, commitment or arrangement, entered
into by the Company directly or indirectly with, to or for the benefit of any
officer or Director of the Company (parent company only), or any relative of
any of them. In connection with its review of such loans and extension of
credit, the Audit Committee shall consider whether any such loans or extension
of credit are adequately documented, and are on similar terms, considering
interest rates, collateral, repayment schedule, amount, purpose of loan or
extension of credit, and current financial statements and condition of the
borrower, as similar transactions with unrelated parties. The Audit Committee
may make a written report of its findings to the board of the Company (parent
company only), and may recommend to such Board whatever action, if any, it
considers necessary or appropriate.
9
<PAGE> 44
(h) To request subsidiaries of the Company to report in writing to
the Audit Committee all terms (including, but not limited to, interest rates,
collateral, repayment schedule, amount, purpose of loan or extension of credit,
financial condition of the borrower, endorsements, guarantees, and financial
condition of endorsers and guarantors) of all loans and other extensions of
credit in excess of $100,000, except mortgage loans extended for the purpose of
acquiring real property and secured by such property, and, as the Audit
Committee, in its discretion deems necessary or appropriate, any other business
transaction, commitment or arrangement between any subsidiary of the Company
and any officer or Director of such subsidiary, or any relative of any of them,
to determine whether, in the discretion of the Audit Committee, any further
review or examination of any such matters shall be conducted. In connection
with its review of such loans and other extensions of credit, the Audit
Committee shall consider whether any such loans or extensions of credit are
adequately documented, and are on similar terms, considering interest rate,
collateral, repayment schedule, amount, purpose of loan or extension of credit,
and financial statement and condition of the borrower, as similar transactions
with unrelated parties. The Audit Committee may make a written report of its
findings to the Board of the Company (parent company only) and may recommend to
the Board whatever action, if any, it considers necessary or appropriate.
SECTION 3. MEETINGS. The Audit Committee may hold meetings
at such times, upon such notice and at such places as it may determine. Notice
of any meeting need not be given to any member, if waived by him in writing or
by telegraph, cable or radio, whether before, at or after such meeting is held,
or if he shall attend such meeting in person, or if he shall sign the minutes
thereof.
SECTION 4. QUORUM PROCEDURE. At every meeting of the Audit
Committee, a majority of the members of the Committee in office at the time of
such meeting shall constitute a quorum for the transaction business. Any act
of a majority of the members present at a meeting in which a quorum shall be
present shall be the act of the Audit Committee.
ARTICLE V
OFFICERS
SECTION 1. NUMBER. The officers of the Company shall be a
President, one or more Vice Presidents, a Secretary, a Treasurer and such other
officers as may be appointed in accordance with the provisions of Section 3 of
this Article IV. One person may hold the office and perform the duties of any
two of the said officers except those of President and Vice President,
President and Secretary, Secretary and Assistant Secretary, and Treasurer
10
<PAGE> 45
and Assistant Treasurer.
SECTION 2. ELECTION; TERM OF OFFICE; QUALIFICATION. The
officers of the Company shall be elected annually by the Board. Each officer,
except such officers as may be appointed in accordance with the provisions of
Section 3 of this Article IV, shall continue in office until his successor
shall have been duly elected and qualified in his stead, or until his death, or
until he shall have resigned and his resignation shall have become effective,
or until he shall have been removed in the manner hereinafter provided.
SECTION 3. SUBORDINATE OFFICERS. The Board may appoint
such other officers, committees and agents as it may deem necessary, including
one or more Assistant Treasurers and one or more Assistant Secretaries, each of
whom shall hold office for such period, have such authority and perform such
duties as are provided in this Code of Regulations or as the Board may from
time to time determine. The Board my delegate to any officer or committee the
power to appoint, and to prescribe the authority and duties of, any such
subordinate officers, committees or agents.
SECTION 4. REMOVAL. Any officer may be removed by the
Board or by the Executive Committee at any regular or special meeting thereof,
with or without cause, whenever in its judgment the best interests of the
Company will be served thereby, but such removal shall be without prejudice to
the contract rights, if any, of the person so removed.
SECTION 5. RESIGNATIONS. Any officer may resign at any
time by giving written notice to the Board or to the President or to the
Secretary of the Company. Such resignation shall take effect at the date of
the receipt of such notice or at any later time specified therein, and, unless
otherwise specified therein, the acceptance of such resignation shall not be
necessary to make it effective.
SECTION 6. VACANCIES. A vacancy in any office because of
death, resignation, removal, disqualification or any other cause shall be
filled for the unexpired portion of the term in the manner prescribed in this
Code of Regulations for regular appointments or elections to such office.
SECTION 7. SALARIES. The salaries of the officers shall be
fixed from time to time by the Board, and no officer shall be prevented from
receiving such salary by reason of the fact that he is also a Director of the
Company.
SECTION 8. THE CHIEF EXECUTIVE OFFICER. The Chief
Executive Officer shall be the primary executive officer of the Company. He
shall have plenary power over the business and
11
<PAGE> 46
activities of the Company, subject to control of the Board.
SECTION 9. THE PRESIDENT. The President shall supervise
the business of the Company and its several officers, subject to the control of
the Board. In general, he shall perform all duties incident to the office of
President and such other duties as may from time to time be assigned to him by
the Board.
SECTION 10. THE CHIEF OPERATING OFFICER. The Chief
Operating Officer shall participate in the supervision of the business and
activities of the Company and participate in supervision of its several
officers, subject to control of the Board. The Chief Operating Officer shall
perform such other duties, consistent with his office, as from time to time may
be assigned to him by the Board, the Chief Executive Officer or the President.
SECTION 11. THE VICE PRESIDENT. At the request of the
President or in case of the absence or inability to act of the President, one
of the Vice Presidents who shall be designated for that purpose by the Board
shall perform the duties of the President and when so acting shall have all the
powers of, and be subject to all the restrictions upon, the President. Each
Vice President shall have such powers and perform such other duties as may from
time to time be assigned to him by the Board or by the President.
SECTION 12. THE SECRETARY. The Secretary shall:
(a) Keep the minutes of the meetings of the shareholders and of the
Board in books provided for that purpose.
(b) See that all notices are duly given in accordance with the
provisions of this Code of Regulations and as required by law.
(c) Be custodian of the records and of the seal of the Company and
see that the seal is affixed to all documents, the execution of which on behalf
of the Company under its seal is duly authorized in accordance with the
provisions of this Code of Regulations.
(d) Cause to be kept a register of the post office address of each
shareholder, and cause to be made all proper changes in such register.
(e) In general, perform all duties incident to the office of
Secretary and such other duties as may from time to time be assigned to him by
the Board or by the President.
SECTION 13. THE ASSISTANT SECRETARY. At the request of the
12
<PAGE> 47
Secretary, or in his absence or disability, an Assistant Secretary shall
perform all of the duties of the Secretary, and when so acting he shall have
all of the powers of, and be subject to all of the restrictions upon, the
Secretary. He shall perform such other duties as may from time to time be
assigned to him by the Board, by the President or by the Secretary.
SECTION 14. THE TREASURER. The Treasurer shall give bond
for the faithful discharge of his duties in such sum and with such sureties as
the Board shall require. He shall:
(a) Have the charge and custody of, and be responsible for, all
funds and securities of the Company, and deposit all such funds in the name of
the Company in such banks, trust companies or other depositaries as shall be
selected in accordance with the provisions of this Code of Regulations.
(b) At all reasonable times exhibit to the Board his books of
account and records, and cause to be exhibited the books of account and records
of any corporation a majority of whose stock is owned by this Company, where
such books and records are kept.
(c) Render a statement of the condition of finances of the Company
at all regular meetings of the Board and a full financial report at the annual
meeting of the shareholders, if called upon to do so.
(d) Receive, and give receipt for, moneys due and payable to the Company
from any source whatsoever.
(e) In general, perform all of the duties incident to the office of
Treasurer and such other duties as may from time to time be assigned to him by
the Board or by the President.
SECTION 15. THE ASSISTANT TREASURER. At the request of the
Treasurer, or in his absence or disability, an Assistant Treasurer shall
perform all of the duties of the Treasurer, and, when so acting, he shall have
all of the powers of, and be subject to all of the restrictions upon, the
Treasurer. He shall perform such other duties as may from time to time be
assigned to him by the Board, by the President or by the Treasurer, and shall
have a bond for the faithful discharge of his duties, in such sum and with such
sureties as the Board shall require.
ARTICLE VI
CONTRACTS; LOANS; CHECKS; DRAFTS; DEPOSITS; PROXIES
SECTION 1. EXECUTION OF CONTRACTS. Except as otherwise
provided by law or this Code of Regulations, the Board may authorized any
officer or agent of the Company to enter into any
13
<PAGE> 48
contract or execute and deliver any instrument in the name and on behalf of the
Company, and such authority may be general or confined to specific instances;
and, unless so authorized by the Board or this Code of Regulations, no officer,
agent or employee shall have any power or authority to bind the Company by any
contract or engagement, to pledge its credit, or to render it pecuniarily
liable for any purpose or to any amount except as may be necessary to enable
the Company to carry on its business in the ordinary course thereof.
No contract or other transaction between the Company and one or more of
its Directors or officers shall be invalid or otherwise affected by the fact
that any Director or officer has a pecuniary or other interest in such contract
or transaction; and any such Director may be counted in determining the
existence of a quorum at any meeting of the Board of Directors for the purpose
of authorizing or ratifying such contract or transaction with like force and
effect as if he were not so interested. No contract or other transaction
between this corporation and any other corporation, firm or person shall be
affected by the fact that any Director or officer of this corporation is a
Director or officer of such other corporation or is otherwise connected with
such other corporation, firm or person or is otherwise interested in such
contract or transaction; and any such Director may be counted in determining a
quorum and may vote to authorize or ratify such contract or transaction with
like force and effect as if he were not so interested.
SECTION 2. LOANS. No loans shall be contracted on behalf
of the Company and no negotiable paper shall be issued in its name unless
authorized by the Board. When so authorized, any officer or agent of the
Company may effect loans and advances at any time for the Company from any
bank, trust company or other institution, or from any firm, corporation or
individual, and for such loans and advances may make, execute and delivery
promissory notes or other evidences of indebtedness of the Company and, when
authorized as aforesaid, as security for the payment of any and all loans,
advances, indebtedness and liabilities of the Company may mortgage, pledge,
hypothecate or transfer any real or personal property at any time held by the
Company and to that end execute instruments of mortgage or pledge or otherwise
transfer said property. Such authority may be general or confined to specific
instances.
SECTION 3. CHECKS, DRAFTS, ETC. All checks, drafts or
other orders for the payment of money, notes or other evidences of indebtedness
issued in the name of the Company shall be signed by such person or persons and
in such manner as shall from time to time be determined by the Board.
SECTION 4. DEPOSITS. All funds of the Company shall be
deposited to the credit of the Company under such conditions and
14
<PAGE> 49
in such banks, trust companies or other depositaries as the Board may designate
or as may be designated by any officer or officers or agent or agents of the
Company to whom such power may from time to time be delegated by the Board, and
for the purposes of such deposit any person or persons to whom such power is so
delegated may endorse, assign and deliver checks, drafts and other orders for
the payment of moneys which are payable to the order of the Company.
SECTION 5. PROXIES. Unless otherwise provided by the
Board, the President may from time to time appoint any attorney or attorneys or
agent or agents of the Company in the name and on behalf of the Company to cast
the votes which the Company may be entitled to cast as a shareholder or
otherwise in any other corporation any of whose stock or other securities are
held by the Company at meetings of the holders of the stock or other securities
of such other corporation, or to consent in writing to any action by such other
corporation, and may instruct the person or persons so appointed as to the
manner of casting such votes or giving such consent, and may execute or cause
to be executed in the name and on behalf of the Company and under its seal such
written proxies or other instruments as he may deem necessary or proper in the
premises.
ARTICLE VII
SHARES; EXAMINATION OF BOOKS
SECTION 1. CERTIFICATES OF STOCK. Every shareholder shall
be entitled to a certificate or certificates in such form as shall be approved
by the Board. Such certificates shall be numbered in the order of their issue
and shall be signed by the President or a Vice President and by the Secretary
or an Assistant Secretary. The signatures of the President or Vice President
and the Secretary or Assistant Secretary upon a certificate may be facsimiles
if the certificate is countersigned by a transfer agent or registered by a
registrar, other than the Company itself or an employee of the Company. In
case any such officer who shall have signed, or whose facsimile signature shall
have been placed upon, such certificate shall have ceased to be such officer
before such certificates is issued, it may be issued by the Company with the
same force and effect as if such officer had not ceased to be such at the date
of its issue. Every certificate exchanged or returned to the Company shall be
marked "Cancelled" with the date of cancellation.
SECTION 2. TRANSFER OF STOCK. Except as otherwise provided
by law or as hereinafter provided in the case of the loss, destruction or
mutilation of certificates, no transfer of stock shall be entered upon the
stock books of the Company until the previous certificate, if any, given for
the same shall have been surrendered and cancelled. A person in whose name
shares of
15
<PAGE> 50
stock stand on the books of the Company shall be deemed the owner thereof as
regards the Company for all purposes. The Board may also make such additional
rules and regulations as it may deem expedient concerning the issue, transfer
and registration of certificates for shares of the capital stock of the Company
as is permitted by law.
SECTION 3. LOST, DESTROYED OR MUTILATED CERTIFICATES. The
holder of any stock of the Company shall immediately notify the Company of any
loss, destruction or mutilation of the certificate therefor, and the Board may,
in its discretion, cause a new certificate or certificates to be issued to him
upon the surrender of the mutilated certificate or, in case of the loss or
destruction of the certificate, upon satisfactory proof of such loss or
destruction, and if the Board shall so determine, upon the deposit of a bond in
such form and amount (not exceeding double the value of the stock represented
by such certificate) and with such surety or sureties as the Board may require.
ARTICLE VIII
DIVIDENDS
Subject to the provisions of the Articles of Incorporation and the laws
of the State of Ohio, the Board may declare dividends whenever, and in such
amounts as, in its opinion, the condition of the affairs of the Company shall
render advisable. The Board, in its discretion, may use and apply any of the
surplus or net profits as a reserve fund to meet contingencies or for the
purpose of maintaining or increasing the property or business of the Company or
for any other purposes which it may think conducive to the best interest of the
Company.
ARTICLE IX
SEAL
The Board shall provide a seal for the Company which shall be in such form as
the Board shall provide.
ARTICLE X
AMENDMENTS
Except as otherwise provided by the Articles of Incorporation or the
laws of the State of Ohio, the Board shall have power to make, alter, amend or
repeal this Code of Regulations by a vote of the majority of the Directors then
in office at any regular
16
<PAGE> 51
meeting or at any special meeting thereof, if notice of intention to make,
alter, amend or repeal such Code of Regulations, in whole or in part, or to
adopt a new Code of Regulations, shall have been given in the notice calling
such meeting, provided, however, that notice is not required if all members of
the Board unanimously vote for such change.
17
<PAGE> 1
THE AMERICAN FINANCIAL CORPORATION
BOOK VALUE INCENTIVE PLAN
SECTION 1. PURPOSE
The purpose of this Plan is to enable American Financial Corporation
and its subsidiaries to retain and attract personnel of the highest caliber who
by their position, ability and diligence are able to make important
contributions to the success of American Financial Corporation.
SECTION 2. CERTAIN DEFINITIONS
(a) "Adjusted Initial Value" shall mean the Initial Value of a
grantee's account as most recently adjusted to reflect changes
in the book value and number of outstanding shares of Common
Stock in accordance with Sections 7 and 13 hereof.
(b) "Board" or "Board of Directors" shall mean the Board of
Directors of American Financial Corporation.
(c) "Book Value" shall mean the equity attributable to Common
Stock determined in accordance with generally accepted
accounting principles as adjusted in accordance with Section
7.5 hereof.
(d) "Book Value Incentive Unit" or "Unit" shall mean the standard
of measurement used to determine the value credited to a
grantee's account in accordance with the Plan.
(e) "Committee" shall mean the Executive Committee of the Board of
Directors.
(f) "Common Stock" shall mean the Common Stock of American
Financial Corporation.
(g) "Company" shall mean American Financial Corporation or its
successors or assigns.
(h) "Dividend Units" shall mean an amount equal to the sum of all
cash, stock (other than Common Stock) or other property
distributed with respect to Common Stock to which the grantee
would have been entitled had he or she owned the number of
shares of Common Stock equal to the number of Book Value
Incentive Units then credited to the grantee's account or
accounts.
(i) "Initial Value" shall mean the value of the Book Value
Incentive Units when granted as determined in accordance with
Section 7.2 hereof.
<PAGE> 2
(j) "Maturity Value" shall mean the value of the Book Value
Incentive Units credited to the account of a grantee computed
in accordance with Section 7.4 hereof.
(k) "Plan" shall mean The American Financial Corporation Book Value
Incentive Plan.
(l) "Total Disability" shall mean the inability to perform the
duties of the grantee's occupation as defined in the Company's
Long-Term Disability Insurance Plan.
(m) "Valuation Date" shall mean the last day of each calendar
quarter or of the Company's fiscal quarter, if different.
SECTION 3. ADMINISTRATION OF THE PLAN
The Plan shall be administered by the Executive Committee of the Board
of Directors. Such Committee is authorized to interpret the terms and
provisions of the Plan and to adopt such rules and regulations of the Plan as
it may deem advisable. Subject to the terms, provisions and conditions of the
Plan, the Committee, in its sole discretion, is hereby authorized to (a) select
the employees to be granted Book Value Incentive Units (it being understood
that more than one award may be granted to the same person), (b) determine the
number of Units covered by each grant, (c) determine the time or times when
Book Value Incentive Units will be granted, (d) determine the time or times
when, and the conditions under which, amounts may become payable with respect
to Book Value Incentive Units or Dividend Units within the limits stated in
this Plan, (e) determine the form of payment as authorized in this Plan, and
(f) prescribe the form, which shall be consistent with this Plan, of the
instruments evidencing any Book Value Incentive Units granted under this Plan.
SECTION 4. ELIGIBILITY
Book Value Incentive Units may be granted only to persons who, at the
date of grant are officers, directors and/or employees (collectively referred
to hereinafter as "employees") of the Company or a subsidiary. While all
employees are eligible to be considered for the award of Units, it is
contemplated that generally only those employees who perform services of
special importance to the Company in the management, operation and development
of business will be awarded Book Value Incentive Units.
SECTION 5. LIMITATION ON GRANT OF UNITS AND DURATION OF THE PLAN
5.1 The number of Units which may be granted under this Plan shall
be limited to two million (2,000,000) Units. For purposes of this limitation,
however, any Units which are forfeited by the grantee, shall thereafter again
by available for grant.
<PAGE> 3
5.2 Unless previously terminated by the Board of Directors
pursuant to Section 15 hereof or unless extended by a majority vote of
shareholders voting at a regularly scheduled meeting of the shareholders, the
Plan shall, for purposes of new grants, automatically terminate on December 31,
1989. Notwithstanding any termination of the Plan, the terms and conditions of
the Plan shall remain in full force and effect with respect to any grants made
prior to the termination of the Plan.
SECTION 6. ACCOUNTING FOR BOOK VALUE INCENTIVE UNITS AND DIVIDEND UNITS
6.1 The Company shall record in an account with respect to each
grantee the number of Units awarded to such grantee and the Initial Value
thereof. A separate account shall be maintained with respect to each award of
Book Value Incentive Units to each grantee. The Company shall adjust the
Initial Value included in each such account to reflect Changes in Outstanding
Stock as provided in Section 13 hereof upon the happening of such a change.
The Company shall make available to each grantee and to the Committee a report
disclosing the Adjusted Initial Value, Maturity Value and the value of Dividend
Units of each such grantee account as of the next proceeding Valuation Date.
6.2 Whenever the Company shall pay any dividend (other than in
Common Stock) or make any distribution with respect to or upon issued and
outstanding Common Stock, there shall be credited to the account or accounts of
each grantee such number of Dividend Units as shall be allocable to such
grantee's account or accounts pursuant to Section 14 hereof.
6.3 Except as might otherwise be specifically provided in the
Plan, nothing contained in the Plan shall be construed as a requirement that
the Company shall fund, set aside or escrow funds and/or stock or other
property for the payment of any amounts with respect to any grantee's account
or accounts.
SECTION 7. VALUATION OF UNITS
<PAGE> 4
7.1 The amount payable to the grantee with respect to any account
established in his or her name under this Plan (the Maturity Value) shall be
determined i) as of the next succeeding Valuation Date if the grantee elects to
receive payment during the last two months of any fiscal quarter, or ii) as of
the next preceding Valuation Date if such election is made during the first
month of the fiscal quarter. Provided, however, that a grantee who gives
notice of his or her intention to elect to receive payment during the last two
months of any fiscal quarter, shall not be deemed to have made an election to
receive payment until such time, but in no event later than the end of such
fiscal quarter, he or she notifies the Committee in writing of his or her
irrevocable election to receive payment under the Plan. Such amount shall be
calculated only with respect to vested Book Value Incentive Units credited to
such account, and shall consist of the excess, if any, of the Maturity Value
over the Adjusted Initial Value of the Units credited to each such account,
less any amount which the Company is required to withhold with respect to such
payment under the applicable provisions of the Internal Revenue Code or state
or local income tax laws. Payment of such amounts shall be made in accordance
with Sections 9 and 10 hereof.
7.2 The Initial Value per Unit of the Units awarded to the grantee
shall generally be the Book Value per share of the Common Stock on the
Valuation Date next preceding the date on which the Book Value Incentive Units
are granted. However, the Committee may, in its sole discretion, reduce or
increase such Initial Value by as much as twenty percent (20%). Provided,
however, that at any time prior to December 31, 1983, the Committee may set as
the Initial Value the amount of $6.00 per unit, that amount the Committee
considers to be the fair value per share at the time of the Company's April 6,
1981 merger (as adjusted for the 5-for-1 split of December 1981).
7.3 The Adjusted Initial Value of the Units credited to the
grantee's account shall be the Initial Value as adjusted for Changes in
Outstanding Stock as provided in Section 13 hereof.
7.4 The Maturity Value per Unit of the Units credited to the
grantee's account shall be the Book Value per share of the Common Stock as
determined in accordance with Section 7.1 hereof. In the event no election is
made, the Maturity Value of the Units shall be computed as of the Valuation
Date next succeeding the tenth anniversary of the date of grant.
7.5 For purposes of this Section, Book Value shall mean the book
value of the Common Stock as determined in accordance with generally accepted
accounting principles except that such book value shall reflect all marketable
equity securities (including those categorized by the Company as "investees")
owned by the Company and/or its subsidiaries at market prices.
Appropriate adjustments shall be made to reflect accounting changes
which affect the reported book value of the Company by more than ten cents per
share in any fiscal year.
SECTION 8. VESTING
<PAGE> 5
8.1 One-fifth of each grant of Book Value Incentive Units shall
become vested on the first anniversary date of the grant of such Units and an
additional one-tenth shall vest at the end of each six month interval
thereafter until fully vested. Any Dividend Units credited to the account of
the grantee with respect to such Book Value Incentive Units shall be vested to
the same extent as such Units. Thus, Book Value Incentive Units and the
Dividend Units credited with respect thereto shall become vested in accordance
with the following schedule:
<TABLE>
<CAPTION>
Date Vested Percentage
<S> <C>
One Year after Grant 20%
One and One-Half Years after Grant 30%
Two Years after Grant 40%
Two and One-Half Years after Grant 50%
Three Years after Grant 60%
Three and One-Half Years after Grant 70%
Four Years after Grant 80%
Four and One-Half Years after Grant 90%
Five Years after Grant 100%
</TABLE>
8.2 Vesting shall occur only if the grantee, on the date of
vesting, has continuously been an employee of the Company or a subsidiary of
the Company since the date of grant, unless otherwise determined by the
Committee. A leave of absence, unless otherwise determined by the Committee,
shall not constitute a cessation of employment.
8.3 Except as provided in Section 8.4 hereof, any Book Value
Incentive Units and Dividend Units credited to the account or accounts of a
grantee shall, to the extent not previously vested in accordance with this
Section 8, be fully cancelled with respect to such grantee as of the date he or
she ceases to be an employee of the Company or its subsidiaries.
8.4.1 In the event of the death or Total Disability of a grantee,
the account or accounts of such grantee shall become fully vested. The value
of the such account or accounts shall be determined as of the Valuation Date
coinciding with or next preceding his or her death, or the date he or she
ceases to be an employee as a result of Total Disability.
8.4.2 The Committee may, in its sole discretion, accelerate vesting,
entirely or partially, with respect to any grantee.
SECTION 9. PAYMENT OF VESTED ACCOUNT VALUE
9.1 A grantee may, no more than twice during each calendar year,
elect to receive payment in respect of all or any portion of the vested Book
Value Incentive Units and/or Dividend Units credited to his or her account.
Upon receipt of the grantee's written election to receive payment and, where
applicable, after the expiration of the period of time, if applicable, during
which a tentative election can be revoked, the Committee shall authorize the
payment of such amount in accordance with Section 9.3 hereof.
9.2 In the event the grantee does not so elect before the tenth
anniversary of the date of grant, or in the event the grantee
<PAGE> 6
ceases to be an employee of the Company or any of its subsidiaries, payments
in respect of vested Book Value Incentive Units and Dividend Units in such
account shall be made by the Company in accordance with Section 9.3 hereof.
9.3 As soon as practicable, but in any event not more than ninety
days after the Valuation Date used to determine the amount payable in
accordance with Section 7.1 hereof, the Company shall make the initial payment
in respect of such election. The initial payments shall be fifty percent (50%)
of the Maturity Value, less applicable taxes required to be withheld. On the
date corresponding to the date of the initial payment in each of the next
succeeding ten (10) years, deferred payments shall be made in accordance with
the following schedule:
<TABLE>
<CAPTION>
Percentage of Maturity
Value Payable (before
Payment Date withholding taxes)
<S> <C>
One Year after Initial Payment 5.600%
Two Years after Initial Payment 6.272%
Three Years after Initial Payment 7.025%
Four Years after Initial Payment 7.868%
Five Years after Initial Payment 8.812%
Six Years after Initial Payment 9.869%
Seven Years after Initial Payment 11.053%
Eight Years after Initial Payment 12.380%
Nine Years after Initial Payment 13.865%
Ten Years after Initial Payment 15.529%
</TABLE>
If in its sole discretion the Committee should deem it appropriate, or
in the event of the death of the grantee, the Company shall accelerate the
payment in respect of such account in accordance with the following schedule:
<TABLE>
<CAPTION>
Payment as a Percentage
Accelerated of Maturity Value (before
Payment Date withholding taxes)
<S> <C>
Upon Election to Receive Payments 100.000%
One Year after Initial Payment 56.000%
Two Years after Initial Payment 56.448%
Three Years after Initial Payment 56.197%
Four Years after Initial Payment 55.073%
Five Years after Initial Payment 52.870%
Six Years after Initial Payment 49.346%
Seven Years after Initial Payment 44.214%
Eight Years after Initial Payment 37.139%
Nine Years after Initial Payment 27.731%
Ten Years after Initial Payment 15.529%
</TABLE>
<PAGE> 7
Should it become necessary or, in the sole discretion of the
Committee, appropriate to make acceleration payments before the next applicable
annual accelerated payment date, the Company shall discount such payment at the
rate of twelve percent (12%) per annum.
SECTION 10. DEATH OF THE GRANTEE
10.1 In the event of the death of the grantee, the Maturity Value
of the Book Value Incentive Units and Dividend Units credited to the grantee's
account or accounts shall be paid (i) to such beneficiary which shall have been
designated in a written designation of the grantee delivered to the Company, or
(ii) in the absence of any such designation that is in effect at the time of
the death of the grantee, then to the executors or administrators of the
grantee's estate. Each grantee shall have the right, at any time, to designate
a beneficiary to receive the Maturity Value of Book Value Incentive Units and
Dividend Units credited to the account or accounts of such grantee, with such
designation to be on such form or forms as may be provided by the Company and
signed by such grantee. Any grantee may, in the same manner, revoke any such
designation previously made by such grantee and designate another beneficiary.
The last such designation received by the Company, in order of time (but prior
to the death of grantee), shall revoke all prior designations. Such payment of
the amount constituting the Maturity Value of Book Value Incentive Units and
Dividend Units credited to the grantee's account or accounts shall be made as
soon as practicable after the date of death of such grantee.
10.2 Within twelve months of the date that a grantee ceases to be
an employee as a result of Total Disability, the Committee shall determine the
extent, if any, to which vesting will be accelerated pursuant to Section 8.4.2
hereof and will authorize commencement of payments on such amount in accordance
with Section 9.3 hereof.
SECTION 11. RIGHT OF COMPANY TO TERMINATE EMPLOYMENT
Nothing contained in this Plan or in any grant pursuant to the Plan
shall interfere in any way with the right of the Company or a subsidiary to
terminate the employment of the grantee at any time for any reason.
SECTION 12. NON-TRANSFERABILITY
Neither the Book Value Incentive Units nor the Dividend Units granted
under this Plan nor any amounts payable under this Plan shall be transferable
by the grantee otherwise than by will or the laws of descent and distribution.
Furthermore, during the lifetime of a grantee, only such grantee shall be
entitled to elect to receive payments with respect to Units or Dividend Units
granted under this Plan.
<PAGE> 8
SECTION 13. CHANGES IN OUTSTANDING STOCK
In the event that i) the number of outstanding shares of Common Stock
shall be changed by reason of split-ups, combinations or shares,
recapitalizations, stock dividends, stock splits or otherwise, or ii) the
Common Stock is converted into or exchanged for other shares or other property
as a result of any merger of consolidation (including a sale of assets) or
other reorganization, the number of Units then credited to the account or
accounts of any grantee and the Initial Value (or Adjusted Initial Value) of
all Book Value Incentive Units credited thereto shall be appropriately adjusted
so as to reflect such changes.
SECTION 14. DIVIDENDS AND OTHER DISTRIBUTIONS
14.1 The Company shall credit to each grantee's account or accounts
the appropriate dollar amount, in the case of cash dividends, and in the sole
discretion of the Committee i) the appropriate number of shares of stock or
interest in other property, or ii) the appropriate dollar amount equivalent to
the value of such stock or property, as determined in the Committee's sole
discretion, distributed with respect to Common Stock (whether by dividend in
kind, spin-off, or otherwise). Such amounts credited to each grantee's account
or accounts shall correspond to the cash, shares of stock, or other property
which the grantee would have received had he or she been the owner of the
number of shares of Common Stock equal to the number of Units then credited to
the grantee's account or accounts.
14.2 With respect to a credit to a grantee's account or accounts
resulting from a distribution of stock or other property on Common Stock, any
dividends paid on or amounts earned with respect to such stock or other
property shall likewise be credited to the grantee's account or accounts.
14.3 The Company shall retain stock or other property, in the event
of such a distribution with respect to Common Stock equal to the credit to the
account or accounts of the grantees.
14.4 Any forfeitures of such amounts credited to the grantees'
accounts shall revert to the Company.
14.5 All property rights, including voting rights, with respect to
such stock or other property held by the Company, the value of which is
credited to the grantees' accounts, shall be exercised by, and in the sole
discretion of, the Committee.
SECTION 15. AMENDMENTS TO THE PLAN
<PAGE> 9
The Board of Directors may at any time terminate or from time to time
amend, modify or suspend this Plan. Provided, however, that the Board may not,
without shareholder approval, i) increase the limitation on the number of Units
which may be granted under this Plan, ii) extend the termination date of this
Plan, or iii) modify the Plan with respect to limitations on Initial Value as
set forth in Section 7.2 hereof.
SECTION 16. EXCLUSION FROM PENSION COMPUTATION
16.1 By acceptance of a grant under this Plan, each grantee shall
be deemed to agree that it is special incentive compensation and that it will
not be taken into account as "wages", "salary" or "covered compensation" in
determining the amount of any Company contribution to any pension, retirement
or deferred profit sharing plan or any other employee benefit plan of the
Company with respect to such grantee.
16.2 In addition, each beneficiary of a deceased grantee shall be
deemed to agree that such award will not affect the amount of any life
insurance coverage available to such beneficiary under any life insurance plan
covering employees of the Company or any subsidiary.
SECTION 17. GOVERNING LAW
This Plan shall be governed and construed in accordance with the laws
of the State of Ohio.
SECTION 18. EFFECTIVE DATE OF THE PLAN
This Plan shall be submitted to the stockholders of the Company at its
annual meeting in 1980 and, if approved by a majority of the stockholders
voting at such meeting, shall become effective retroactively to January 1,
1980.
(NK2-BVIP)
<PAGE> 1
AGREEMENT
BETWEEN
AMERICAN FINANCIAL CORPORATION ("AFC")
and
THE ROBERT D. LINDNER GROUP
REGARDING AFC COMMON STOCK ("AGREEMENT")
APRIL 15, 1983
A. OPTION: AFC grants to the Robert D. Lindner Group an option to purchase up
to 1,225,000 shares of AFC Common Stock (such number of shares to subject to
adjustment in the event of stock-splits, stock dividends, combinations of
shares or recapitalizations, or in the event AFC Common Stock is converted
or exchanged for other shares or other property as a result of a merger,
consolidation or sale of assets) on the following terms ("Option"):
1) DURATION OF OPTION TO PURCHASE SHARES OF AFC COMMON STOCK: Lifetime of
Robert D. Lindner, Sr. plus two (2) years.
2) EXERCISE PRICE OF OPTION STOCK: $6.65 per share plus $.40 per year from
the date hereof for each full year, plus a prorated portion of the $.40
for a partial year.
3) METHOD OF PAYMENT FOR OPTION STOCK: At the option of the Robert D.
Lindner Group, cash and/or AFC Series H Preferred Stock at face value.
B. PUT: The Robert D. Lindner Group shall have the right to require AFC to
purchase the Option and/or any or all AFC Common Stock owned by any of them
at any time, whether such stock was acquired pursuant to this Agreement or
otherwise ("Put"); provided, however, that during the lifetime of Robert D.
Lindner, Sr., no member of the Robert D. Lindner Group may exercise the Put
without the express written consent of Robert D. Lindner, Sr.
1) DURATION OF PUT: The Put shall commence with the date of this Agreement
and continue in perpetuity thereafter. The number of shares put shall be
at the election of the Robert D. Lindner Group.
2) PURCHASE PRICE OF PUT STOCK OR OPTION: The purchase price of such AFC
Common Stock shall be the book value of AFC Common Stock (as of the end of
the latest fiscal quarter of AFC) as determined in accordance with
generally accepted accounting principles, except that such book value
shall be adjusted to reflect all marketable equity securities (including
those categorized by AFC as "investees") owned by AFC and/or its
<PAGE> 2
subsidiaries at market prices. The intent herein is to use the AFC Book Value
Incentive Plan computation in existence at this time to determine the adjusted
value per share of AFC for the purpose of determining the price of the Put
Stock. The purchase price of such Option shall be the book value as calculated
above less the exercise price as defined in A.2 above.
3) METHOD OF PAYMENT FOR PUT STOCK OR OPTION: AFC shall pay for any such
stock or Option 33% in cash and 67% in a five (5) year not secured by the
Put stock or Option. Interest on such note shall be at the then current
market rate. Market rate is defined as the rate for five (5) year U.S.
Treasury Note rate plus three hundred basis points. Such note shall be
paid in five (5) equal annual installments of principal, together with
quarterly payments of interest on the unpaid principal balance.
C. CALL: AFC shall have the right to purchase any and all AFC Common Stock
owned at anytime by any member of the Robert D. Lindner Group on the
following terms ("Call"):
1) DURATION OF CALL: The Call shall commence with the death of Robert D.
Lindner, Sr. and continue in perpetuity thereafter, but in no event shall
the Call commence prior to July 1, 1988.
2) PURCHASE PRICE OF CALL STOCK: The purchase price of such AFC Common Stock
shall be the book value of AFC Common Stock (as of the end of the latest
fiscal quarter of AFC) as determined in accordance with generally accepted
accounting principles, except that such book value shall be adjusted to
reflect all marketable equity securities (including those categorized by
AFC as "investees") owned by AFC and/or its subsidiaries at market prices.
The intent herein is to use the AFC Book Value Incentive Plan computation
in existence at this time to determine the adjusted value per share of AFC
for the purpose of determining the price of the Call Stock. For a period
not to exceed two years beyond the death of Robert D. Lindner, Sr., there
shall be a floor in the purchase price of the Call equal to $6.65 per
share plus 10% per year compounded annually from the date hereof.
3) METHOD OF PAYMENT FOR CALLED STOCK: AFC shall pay for any such stock 33%
in cash and 67% in a five (5) year note secured by the Call stock.
Interest on such note shall be at the then current market rate. Market
rate is defined as the five (5) year U.S. Treasury Note rate plus three
hundred basis points. Such note shall be paid in five (5) equal annual
installments of principal, together with quarterly payments of interest on
the unpaid principal balance.
<PAGE> 3
D. RIGHT OF FIRST REFUSAL: Upon the execution of this Agreement and for
perpetuity thereafter, AFC shall have a right of first refusal on any and
all AFC Common Stock owned by any member of the Robert D. Lindner Group in
the event any such member desires to sell such shares. In the event that
such right is exercised, AFC at its sole election, shall pay for such shares
either the price set forth in Section C(2) and on the terms set forth in
Section C(3) of this Agreement or at the same price and on same terms and
conditions as the offer received by such member of the Robert D. Lindner
Group. any proposed sale of AFC Common Stock by any such member shall be
pursuant to a bona fide written offer delivered to AFC thirty (30) days
prior to the proposed sale. AFC must exercise its right of first refusal at
anytime prior to the fifth day preceding the date of such proposed sale.
In the event AFC does not exercise its right of first refusal, such proposed
sale may take place only with respect to such shares, pursuant to the price,
terms and conditions, and only to such party or parties specified in such
written offer delivered to AFC.
E. THE ROBERT D. LINDNER GROUP: The Robert D. Lindner Group consists of the
undersigned and the transferees permitted under Section F hereof; all stock
certificates representing AFC Common Stock owned by the undersigned or any
such transferees shall bear a legend referencing this Agreement.
F. TRANSFERABILITY OF AFC COMMON STOCK OWNED BY THE ROBERT D. LINDNER GROUP:
Each member of the Robert D. Lindner Group agrees that there shall be no
transfer (including a transfer resulting from death or by gift) of any AFC
Common Stock owned by any of them except pursuant to and subject to the
terms and conditions of this Agreement and upon the condition that any
transferee shall accept and agree, in writing, to be bound by the terms and
conditions of this Agreement. Each member of the Robert D. Lindner Group
further agrees that there shall be no transfer by gift or donation of any
AFC Common Stock at anytime, except to a current member of such Group (the
undersigned) or the direct lineal descendants of any of them who accepts and
agrees in writing to be bound by the terms and conditions of this Agreement.
The Option granted pursuant to this Agreement is not transferable or
assignable, except to current members of the Robert D. Lindner Group (the
undersigned) or the direct lineal descendants of any of them, or otherwise
in accordance with the laws of descent and distribution subject to the
condition that such transferee or assignee is bound by the terms and
conditions of this Agreement.
G. CONSIDERATION AND BOARD OF DIRECTORS' APPROVAL: The Robert D. Lindner Group
and AFC acknowledge that each has received valid
- 3 -
<PAGE> 4
and sufficient consideration for entering into this Agreement, including
payment by the Robert D. Lindner Group of $100,000 to AFC, receipt of which is
hereby acknowledged; and AFC has obtained approval of this Agreement by its
Board of Directors, and a certification of AFC's Board action has been
delivered to the Robert D. Lindner Group, receipt of which is hereby
acknowledged.
<TABLE>
<CAPTION>
THIS AGREEMENT shall be binding upon and inure to the benefit of the respective
successors and assigns and heirs and representatives of the undersigned parties
hereto.
<S> <C>
WITNESSES: AMERICAN FINANCIAL CORPORATION
_______________________ By:_________________________________________________________
_______________________ Carl H. Lindner, President
_______________________
_______________________ _____________________________________
Robert D. Lindner, Sr.
_______________________
_______________________ _____________________________________
Betty Lindner for David C. Lindner
_______________________
_______________________ _____________________________________
David C. Lindner
_______________________
_______________________ _____________________________________
Robert D. Lindner, Jr.
_______________________
_______________________ _____________________________________
Paula D. Lindner
_______________________
_______________________ _____________________________________
Jeffrey S. Lindner
_______________________
_______________________ _____________________________________
Alan Bradford Lindner
</TABLE>
(NK2-OPT.AGR)
<PAGE> 1
=================================================================
AMERICAN FINANCIAL CORPORATION
DEFERRED COMPENSATION PLAN
=================================================================
<PAGE> 2
AMERICAN FINANCIAL CORPORATION
DEFERRED COMPENSATION PLAN
As of January 1, 1989
<TABLE>
<CAPTION>
Page
----
<S> <C> <C>
ARTICLE I. ESTABLISHMENT AND PURPOSE 1
ARTICLE II. PARTICIPATION 1
2.1 Eligibility 1
2.2 Participation in the Plan 1
2.3 Vesting 2
ARTICLE III. COMPENSATION ALLOCATED 3
3.1 Deferred Compensation Account 3
3.2 Amount Allocated 3
3.3 Term of Deferral 4
3.4 Investment Performance 4
3.5 Statement of Account 4
ARTICLE IV. PAYMENT OF DEFERRED COMPENSATION 4
4.1 Payment After the Expiration Date 4
4.2 Hardship Distribution 6
4.3 Beneficiary Designation and Payment 6
ARTICLE V. GENERAL PROVISIONS 6
5.1 Employees' Rights Unsecured 6
5.2 Non-Assignability 7
5.3 Administration 7
5.4 Amendment and Termination 7
5.5 Construction 7
5.6 Limitations 7
5.7 Subsidiaries 7
</TABLE>
<PAGE> 3
AMERICAN FINANCIAL CORPORATION
DEFERRED COMPENSATION PLAN
As of January 1, 1989
ARTICLE I. ESTABLISHMENT AND PURPOSE
- ---------- -------------------------
The American Financial Corporation Deferred
Compensation Plan ("Plan") was established as of
January 1, 1989. The purpose of the Plan is to
enable eligible employees of American Financial
Corporation ("AFC"), and certain of its subsidiaries
and affiliates (collectively "Employers" and
singularly "Employer"), who participate in the AFC
Employee Stock Ownership/Retirement Plan ("ESORP") to
have an alternative to the ESORP.
The Plan is being established by AFC and the other
Employers for the benefit of their respective
employees. With respect to employees not directly
employed by AFC, AFC's role under the Plan is
administrative and the Account (defined in Section
3.1) of each employee is the obligation of the direct
Employer.
ARTICLE II. PARTICIPATION
- ----------- -------------
2.1 ELIGIBILITY. The individuals who are eligible to
participate in the Plan ("Employees" and singularly
"Employee") are those officers and other key
employees of an Employer who are authorized by the
President of AFC to participate in the Plan or have
been specifically authorized to participate in the
Plan by an employment agreement approved by the
President of AFC.
2.2 PARTICIPATION IN THE PLAN. An eligible Employee
elects, subject to the provisions of the Plan, to
participate in the Plan by delivering before
September 30 of the current Plan year a properly
executed Deferred Compensation Agreement (Appendix I)
to the person or committee appointed by the President
of AFC who shall be responsible for those functions
described in the Plan (the "Administrator"). The
Deferred Compensation Agreement shall conform to the
terms and conditions of the Plan and shall include an
election not to participate in the ESORP. An
Employee's election to participate in the Plan may
not be revoked during the Plan year.
<PAGE> 4
- 2 -
2.3 VESTING.
(a) A participant's interest in his Account
(defined in Section 3.1) shall become vested
and nonforfeitable to the extent of the
following percentages based upon full Years
of Service with an Employer:
<TABLE>
<CAPTION>
Percentage Percentage
Year of Service Vested Forfeited
<S> <C> <C>
Fewer than five years 0% 100%
At least five years 100% 0%
</TABLE>
An Employee forfeits all non-vested rights to
an Account after the Plan year in which a one
year break in service has occurred.
(b) For purposes of vesting, a Year of Service
shall be credited for each Plan year during
which an Employee completes at least 1,000
hours of service. In addition, each Employee
participating in the Plan shall be credited,
for Service purposes, for his employment with
any subsidiary or affiliate of AFC.
(c) In computing full Years of Service hereunder,
any Employee who has a one year break in
service shall not receive credit for Years of
Service prior to such break until one full
Year of Service has been completed after
return to service. In addition, Years of
Service by any Employee after any five
consecutive one year breaks in service shall
not be taken into account for purposes of
determining the nonforfeitable percentage of
an Employee's interest derived for
compensation deferred by the Employee which
accrued before such five consecutive one year
breaks in service.
Further, when computing full years of service
hereunder, the Employer shall establish and
maintain a separate account for each Employee
who has incurred a One Year Break in Service
and has subsequently returned to the
employment of an Employer. The purpose of
maintaining such separate accounts will be to
insure that allocations to any Employee are
properly made to determine the nonforfeitable
percentage of accrued interest in accordance
with the above.
<PAGE> 5
- 3 -
(d) Participation in the Plan will continue until
an Employee terminates his employment as
provided for in Section 3.3 or for as long as
he has an interest in the Plan that has not
been distributed to him or for his benefit.
ARTICLE III. COMPENSATION ALLOCATED
- ------------ ----------------------
3.1 DEFERRED COMPENSATION ACCOUNT. A Deferred
Compensation Account ("Account") will be established
for each Employee who elects to participate in the
Plan. The Account will be maintained by the
Administrator. All allocations on behalf of an
Employee shall be deferred and all increases or
decreases in the Account due to investment
performance of the ESORP (see section 3.4), all
distributions to the Employee or beneficiary or
estate, and any other interest earned on the balance
thereof, shall be reflected in the Account.
3.2 AMOUNT OF ALLOCATION.
(a) The amount allocated to an Employee's Account
shall be deferred and shall be the same
percentage of an Employee's gross income (as
defined in section 61(a) of the Code) paid by
any Employer as would have been allocated to
an Employee's ESORP account up to a maximum
of $30,000, which amount shall be increased
(but not decreased) with respect to
adjustments allowed by Section 415 of the
Internal Revenue Code of 1986 ("Code").
Provided, however, that (i) for the persons
participating in the Plan at its inception,
the initial amount of compensation allocated
and deferred shall include an amount
equivalent to the amount that was allocated
to an Employee's ESORP account for 1987 (as
well as 1988 earnings on that amount) or (ii)
the initial amount of compensation allocated
and deferred shall include an amount
equivalent to the amount that would have been
allocated in an Employee's ESORP account for
the Plan Year prior to participation in this
Plan but for limitations and rules existing
in the Code as of the date hereof.
(b) Allocations under this Plan for any Plan Year
shall be credited to an Employee's Account as
of December 31 of such Plan year.
<PAGE> 6
- 4 -
3.3 TERM OF DEFERRAL. The Deferred Compensation
Agreement shall provide that all amounts posted to
the Account shall be paid upon the earlier of (1)
retirement or termination of employment at age 60 or
over, (2) death, (3) Total Disability or (4)
incurrance of five consecutive one year breaks in
service (each referred to hereafter as the
"Expiration Date"). Commencing in the first quarter
of the year following an Expiration Date, payments
from the Account shall be made in accordance with the
provisions specified in Section 4.1(a) hereof.
3.4 INVESTMENT PERFORMANCE. Each December 31 prior to
the Expiration Date, the Employee's Account shall be
credited (or charged) with interest at a rate
determined by the Treasurer of AFC to be the same
rate as earned on accounts under the ESORP
(investment income plus or minus "investment
performance" under the ESORP) and such determination
shall be final, binding and conclusive on all
parties.
3.5 STATEMENT OF ACCOUNT. A statement of account will be
sent to each Employee annually no later than February
28 until the complete distribution of the Employee's
Account.
ARTICLE IV. PAYMENT OF DEFERRED COMPENSATION
- ----------- --------------------------------
4.1 PAYMENT AFTER THE EXPIRATION DATE
(a) Within 90 days following the Expiration Date,
the Employer shall choose payment or
distribution of the Account under one of the
following payment options:
(1) The Account may be applied to the
purchase of an immediate or deferred
life annuity contract, on the sole
life of the Employee, or jointly on
the lives of the Employee and a
beneficiary named by the Employee.
The annuity contract shall be
purchased from an insurance company
to be determined at the sole
discretion of the Company provided
that such insurance company shall
have a current rating of A+
(Superior) from Bests' Insurance
Reports.
(2) The Account may be paid out as if
the Employer purchased an immediate
or deferred life annuity contract,
on the
<PAGE> 7
- 5 -
sole life of the Employee, or jointly
on the lives of the Employee and the
beneficiary named by the Employee.
Such payment of the Account shall be
as if the Employer purchased an
annuity contract from an insurance
company to be determined at the sole
discretion of the Employer provided
that such insurance company shall
have a rating of A+ (Superior) from
Bests' Insurance Reports and using
as the interest rate assumption, the
same interest rate as such insurance
company would provide.
(3) The Account may be paid forthwith
in lump sum.
The Employer may take into consideration, but
is not bound by, the Employee's preference as
to the payment options.
The annuity contract provided for in
paragraph 4.1(a)(1) shall provide for, and
payments provided for in paragraph 4.1(a)(2)
shall be made in, equal installments over the
expected life span of Employee which shall be
determined by standard actuarial tables then
in existence.
(b) Within 30 days of the Employer's choice of
payment option, the Employer will purchase
such annuity, begin to make payments or make
the lump sum payment.
(c) Notwithstanding the payment option chosen by
the Employer, after the commencement of
payments from the Account, the Administrator,
at his sole discretion, may accelerate
payment of any amount remaining in the
Account to the extent that the amounts being
paid are not sufficiently large to warrant
the administrative expense then being
incurred to administer such payments.
(d) Any applicable federal, state and local taxes
will be withheld from the gross amounts paid.
Neither the Employee nor any designated
beneficiary shall have any right, directly or
indirectly, to alienate, assign, pledge or in
any way encumber any amount that is payable
from the Account.
<PAGE> 8
- 6 -
4.2 HARDSHIP DISTRIBUTION. Distribution of payments from
an Employee's Account prior to the Expiration Date
shall be made only if the Administrator, after
consideration of an application by the Employee,
determines that the Employee has sustained financial
hardship caused by events beyond the Employee's
control. In such event, the Administrator may, at
his sole discretion, direct that all or a portion of
the Account be paid to the Employee in such manner,
and at such times as determined by the Administrator.
4.3 BENEFICIARY DESIGNATION AND PAYMENT.
(a) The Employee shall have the right to
designate a beneficiary hereunder and to
change any beneficiary previously designated.
Such designation shall be made by the
Employee delivering to the Administrator a
writing setting forth the name and address of
the person or persons so designated with a
statement by the Employee of the intention
that the person or persons so designated be
the beneficiary or beneficiaries hereunder.
The last-dated and filed beneficiary
designation shall cancel all earlier filed
designations (Appendix II)
(b) In the event of the Employee's death before
or after the commencement of payments from
the Account, then the amount otherwise
payable to the Employee shall be paid to the
designated beneficiary or, if none, to the
estate, which beneficiary or estate shall
have all the rights conferred by Section 4.1
above.
ARTICLE V. GENERAL PROVISIONS
- ---------- ------------------
5.1 EMPLOYEE'S RIGHTS UNSECURED. The right of any
Employee to receive payments under the provisions of
the Plan shall be an unsecured claim against the
general assets of the Employers. It is not required
or intended that the amounts credited to the
Employee's Account be segregated on the books of the
Company or be held by the Employers in trust for the
Employee. All credits to the Account are for
bookkeeping purposes only.
5.2 NON-ASSIGNABILITY. The right to receive
paymentshereunder shall not be transferable or
assignable by an Employee, except by will or by the
laws of descent and distribution. Any other
attempted
<PAGE> 9
- 7 -
assignment or alienation of payments hereunder shall
be void and of no force or effect.
5.3 ADMINISTRATION. The Administrator shall have the
authority to adopt rules, regulations and interpret,
construe and implement the provisions of the Plan
according to the laws of the State of Ohio.
5.4 AMENDMENT AND TERMINATION. The Plan may at any time
or from time to time be amended or terminated by the
Company. No amendment, modification or termination
shall adversely affect the Employee's rights under
the Plan.
5.5 CONSTRUCTION. The masculine gender, where appearing
in this Plan, shall be deemed to also include the
feminine and neuter genders. The singular shall also
include the plural where appropriate.
5.6 LIMITATIONS. The Plan does not constitute a contract
of employment, and participation in the Plan will not
give any Employee the right to be retained in the
employ of and Employer or any right or claim to any
benefit under the terms of the Plan, unless such
right or claim has specifically accrued pursuant to
the provisions of his Deferred Compensation Agreement
with the Employer. This Plan does not confer the
right for an Employee to receive a bonus.
5.7 SUBSIDIARIES. Each subsidiary of AFC who employs an
Employee shall be obligated to make payments out of
an Account in the proportion that such subsidiary's
compensation paid to an Employee bears to an
Employee's gross income determined under Section
3.2(a). In the event that the any significant
subsidiary (as that term is defined in Rule 12b-2 of
the Securities Exchange Act of 1934) is disposed of
by AFC or any of AFC's direct or indirect
subsidiaries in any manner, other than liquidation or
dissolution, then, at the time of disposition, such
significant subsidiary will guarantee payment of each
Employee's Account in the same percentage of each
Employee's Account as such significant subsidiary's
total assets are to AFC's total assets on a
consolidated basis. The guarantee shall remain in
effect as long as any Account outstanding at the time
of such disposition remains outstanding.
<PAGE> 10
APPENDIX I
----------
PARTICIPATION AGREEMENT
-----------------------
American Financial Corporation
One East Fourth Street
Cincinnati, Ohio 45202
Attention: Secretary
Gentlemen:
I am in receipt of the American Financial Corporation Deferred
Compensation Plan (the "Plan"), as adopted by the Board of Directors of
American Financial Corporation. I have read and reviewed the Plan, and I
hereby elect to participate in the Plan and agree to be bound by and fully
comply with the terms and conditions of the Plan. I acknowledge that my
election to participate in the Plan means that I am not going to participate,
beginning January 1, 1989 and forward, in the American Financial Corporation
Employee Stock Ownership/Retirement Plan.
I acknowledge that it is my obligation to notify the Plan
Administrator in writing by December 1 of any year in the event I wish to
terminate participation in the Plan for the following Plan Year and re-activate
participation in the American Financial Corporation Employee Stock
Ownership/Retirement Plan.
I hereby acknowledge that I am not relying on any tax advice given to
me by American Financial Corporation or by any affiliate, employee, contractee,
agent, director or officer thereof regarding federal or state income or estate
tax consequences arising to me or my estate, heirs or devisees as a result of
my participation in the Plan. I further hereby acknowledge that I have been
advised to consult with my own tax advisors regarding any such tax consequences
to me.
Very truly yours,
Employee Spouse
- --------------------------------- --------------------------------
Signature Signature
- --------------------------------- -------------------------------
Name typed or printed Name typed or printed
S.S. No. S.S. No.
------------------------- -----------------------
Date: Date:
---------------------------- --------------------------
<PAGE> 11
APPENDIX II
-----------
DESIGNATION OF BENEFICIARY
TO DEFERRED COMPENSATION PLAN
-----------------------------
TO: The Board of Directors
American Financial Corporation
I hereby direct that upon my death any payments remaining to be paid
in accordance with the Deferred Compensation Plan between the undersigned and
American Financial Corporation shall be paid to the following person(s):
(A) PRIMARY BENEFICIARY
Name:
------------------------------------------
Address:
------------------------------------------
------------------------------------------
Date of Birth:
------------------------------------------
Telephone Number:
------------------------------------------
Relationship:
------------------------------------------
Social Security #:
------------------------------------------
(B) Alternative Beneficiary (in the event of the death or
non-existence of the Primary Beneficiary listed above):
Name:
------------------------------------------
Address:
------------------------------------------
------------------------------------------
Date of Birth:
------------------------------------------
Telephone Number:
------------------------------------------
Relationship:
------------------------------------------
Social Security #:
------------------------------------------
The undersigned hereby reserves the right to change the beneficiary or
beneficiaries designated herein at any time by filing in writing a new
Designation of Beneficiary form with the Board of Directors of the Company.
WITNESS:
- ------------------------------ --------------------------------
Employee
Date:
--------------------------
ACKNOWLEDGEMENT
---------------
AMERICAN FINANCIAL CORPORATION
Date: By:
-------------------------- -----------------------------
<PAGE> 1
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in Thousands)
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Pretax income (loss) excluding discontinued operations $ 26,376 $257,426 ($144,854) $118,710 $ 77,450
Minority interest in subsidiaries having fixed charges(*) 8,565 34,800 37,685 44,369 15,779
Less undistributed equity in losses
(earnings) of investees 49,010 (25,067) 376,020 5,817 (28,362)
Fixed charges:
Interest expense 114,803 153,836 212,150 245,757 353,220
Debt discount and expense 1,240 5,273 4,698 6,961 9,273
One-third of rentals 5,119 5,801 16,341 45,286 74,166
-------- -------- -------- -------- --------
EARNINGS $205,113 $432,069 $502,040 $466,900 $501,526
======== ======== ======== ======== ========
Fixed charges:
Interest expense $114,803 $153,836 $212,150 $245,757 $353,220
Debt discount and expense 1,240 5,273 4,698 6,961 9,273
One-third of rentals 5,119 5,801 16,341 45,286 74,166
Pretax preferred dividend requirements of subsidiaries - - - 598 2,913
Capitalized interest - - - 5,495 8,423
-------- -------- -------- -------- --------
FIXED CHARGES $121,162 $164,910 $233,189 $304,097 $447,995
======== ======== ======== ======== ========
Fixed charges and preferred dividends:
Fixed charges - per above $121,162 $164,910 $233,189 $304,097 $447,995
Preferred dividends 25,709 26,122 26,218 24,899 24,180
-------- -------- -------- -------- --------
FIXED CHARGES AND PREFERRED DIVIDENDS $146,871 $191,032 $259,407 $328,996 $472,175
======== ======== ======== ======== ========
Ratio of Earnings to Fixed Charges 1.69 2.62 2.15 1.54 1.12
==== ==== ==== ==== ====
Earnings in excess of Fixed Charges $ 83,951 $267,159 $268,851 $162,803 $ 53,531
======== ======== ======== ======== ========
Ratio of Earnings to Fixed
Charges and Preferred Dividends 1.40 2.26 1.94 1.42 1.06
==== ==== ==== ==== ====
Earnings in excess of Fixed
Charges and Preferred Dividends $ 58,242 $241,037 $242,633 $137,904 $ 29,351
======== ======== ======== ======== ========
</TABLE>
(*) Amounts include preferred dividends of subsidiaries.
E-2
<PAGE> 1
AMERICAN FINANCIAL CORPORATION
EXHIBIT 21 - SUBSIDIARIES OF THE REGISTRANT
The following is a list of subsidiaries of AFC at December 31, 1994. All
corporations are subsidiaries of AFC and, if indented, subsidiaries of the
company under which they are listed.
<TABLE>
<CAPTION>
Percentage of
State of Common Equity
Name of Company Incorporation Ownership
- --------------- ------------- -------------
<S> <C> <C>
American Financial Enterprises, Inc. Connecticut 83%
Great American Holding Corporation Ohio 100
Great American Insurance Company Ohio 100
American Annuity Group, Inc. Delaware 80
Great American Life Insurance Company Ohio 100
American Empire Surplus Lines Insurance
Company Delaware 100
American National Fire Insurance Company New York 100
Great American Management Services, Inc. Ohio 100
Mid-Continent Casualty Company Oklahoma 100
Stonewall Insurance Company Alabama 100
Transport Insurance Company Ohio 100
</TABLE>
The names of certain subsidiaries are omitted, as such subsidiaries in
the aggregate would not constitute a significant subsidiary.
See Part I, Item 1 of this Report for a description of certain companies
in which AFC owns a significant portion and accounts for under the equity
method.
E-3
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERICAN
FINANCIAL CORPORATION 10-K FOR DECEMBER 31, 1994 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<CASH> 171,335
<SECURITIES> 7,533,629<F1>
<RECEIVABLES> 363,156
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,550,051
<CURRENT-LIABILITIES> 0
<BONDS> 1,106,747
<COMMON> 904
2,880
168,484
<OTHER-SE> 226,595
<TOTAL-LIABILITY-AND-EQUITY> 10,550,051
<SALES> 0
<TOTAL-REVENUES> 2,102,780
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 251,913
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 115,162
<INCOME-PRETAX> 43,568
<INCOME-TAX> 24,650
<INCOME-CONTINUING> 18,918
<DISCONTINUED> 0
<EXTRAORDINARY> (16,818)
<CHANGES> 0
<NET-INCOME> 2,100
<EPS-PRIMARY> 0<F2>
<EPS-DILUTED> 0<F2>
<FN>
<F1>Includes an investment in investees of $833 million.
<F2>Not applicable since all common shares are privately owned.
</FN>
</TABLE>
<PAGE> 1
AMERICAN FINANCIAL CORPORATION
EXHIBIT 28 - INFORMATION FROM REPORTS FURNISHED
TO STATE INSURANCE REGULATORY AUTHORITIES
Schedule P of Annual Statements
A. CONSOLIDATED PROPERTY AND CASUALTY ENTITIES - See Attached Schedules
Schedule P (prepared in accordance with the rules prescribed by the
National Association of Insurance Commissioners) includes the
reserves of AFC's consolidated property and casualty subsidiaries.
The following is a summary of Schedule P reserves (in millions):
Schedule P - Part 1 Summary - col. 33 $1,843
------
- col. 34 363
Statutory Loss and Loss Adjustment Expense Reserves $2,206
======
B. UNCONSOLIDATED SUBSIDIARIES
None
C. 50% OR LESS OWNED PROPERTY AND CASUALTY INVESTEES
Not Included
Information for American Premier Underwriters, Inc. for 1994 is not
included since that company files such information with the
Commission as a registrant in its own right.
E-4
<PAGE> 2
GREAT AMERICAN INSURANCE COMPANY AND AFFILIATES
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.
SCHEDULE P INTERROGATORIES.
2. LINES OF BUSINESS A THROUGH M, R & S ARE GROUPINGS OF THE LINES OF BUSINESS
USED ON PAGE 14, 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 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 79,346 40,330 21,505
02 1985 1,509,839 224,578 1,285,261 1,166,797 253,039 99,316
03 1986 1,888,343 378,875 1,509,468 855,987 156,875 78,935
04 1987 1,768,580 331,483 1,437,096 790,962 144,953 75,887
05 1988 1,656,831 275,788 1,381,043 820,536 138,153 65,585
06 1989 1,500,634 230,748 1,269,892 818,139 125,513 61,971
07 1990 1,575,065 236,407 1,338,657 849,155 151,617 60,895
08 1991 1,526,793 298,154 1,228,639 700,731 137,660 53,005
09 1992 1,580,180 359,693 1,220,486 723,601 185,827 44,507
10 1993 1,729,300 486,861 1,242,439 591,389 165,626 31,133
11 1994 2,080,910 704,623 1,376,287 545,706 216,157 19,712
12 TOTAL XXX XXX XXX 7,942,349 1,715,759 612,452
SCHEDULE P - PART 1 - SUMMARY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 9,130 445 2,022 53,412 XXX 329,679
02 1985 28,806 32,459 77,349 1,061,624 XXX 34,894
03 1986 18,232 24,477 68,120 827,948 XXX 20,844
04 1987 20,521 24,475 64,487 765,862 XXX 35,236
05 1988 7,703 26,293 64,142 804,413 XXX 75,044
06 1989 7,215 23,521 66,834 814,205 XXX 43,331
07 1990 4,097 23,194 63,755 818,092 XXX 67,272
08 1991 8,437 17,328 54,427 662,069 XXX 71,917
09 1992 10,446 16,990 55,649 627,476 XXX 112,537
10 1993 8,196 15,428 48,862 497,570 XXX 174,512
11 1994 8,837 8,399 40,277 380,693 XXX 384,377
12 TOTAL 131,614 213,014 605,931 7,313,359 XXX 1,349,634
<PAGE> 3
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 126,135 234,610 127,256 27,075 9,369 28,079
02 1985 18,412 20,715 6,574 3,123 1,027 4,164
03 1986 4,489 20,304 5,518 2,379 345 3,831
04 1987 16,961 25,072 16,329 3,718 1,613 2,969
05 1988 30,360 33,901 9,841 7,657 272 8,963
06 1989 4,992 43,410 13,655 6,115 592 8,971
07 1990 15,049 77,091 20,992 12,049 2,151 15,483
08 1991 10,643 103,549 23,334 12,693 1,871 18,229
09 1992 29,273 167,375 39,200 19,126 4,190 20,665
10 1993 38,507 263,404 74,281 27,243 5,209 30,867
11 1994 142,735 388,085 93,497 54,693 19,269 50,856
12 TOTAL 437,550 1,377,513 430,464 175,869 45,916 193,067
SCHEDULE P - PART 1 - SUMMARY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 10,787 0 15,342 361,237 XXX XXX
02 1985 1,427 0 2,663 38,118 XXX 1,411,841
03 1986 1,443 0 2,844 38,407 XXX 1,055,965
04 1987 1,384 626 1,562 32,261 XXX 1,002,131
05 1988 3,159 1,869 2,023 83,954 XXX 1,083,750
06 1989 3,666 2,460 3,852 82,766 XXX 1,056,441
07 1990 5,457 3,637 6,879 135,125 XXX 1,157,302
08 1991 6,902 4,224 8,653 172,299 XXX 1,028,621
09 1992 8,026 6,203 12,082 251,088 XXX 1,163,079
10 1993 11,629 8,165 17,128 383,535 XXX 1,193,303
11 1994 12,677 15,686 34,001 643,826 XXX 1,526,352
12 TOTAL 66,564 42,870 107,036 2,222,624 XXX XXX
SCHEDULE P - PART 1 - SUMMARY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 16,325
02 1985 312,101 1,099,740 93.509 138.972 85.565 0
03 1986 189,611 866,354 55.920 50.046 57.395 0
04 1987 204,007 798,124 56.663 61.544 55.537 0
05 1988 195,384 888,366 65.411 70.846 64.326 0
06 1989 159,471 896,970 70.400 69.110 70.634 0
07 1990 204,086 953,216 73.476 86.328 71.207 0
08 1991 194,258 834,363 67.371 65.154 67.910 0
09 1992 284,514 878,565 73.604 79.099 71.985 0
10 1993 312,191 881,112 69.005 64.123 70.918 0
11 1994 501,834 1,024,518 73.350 71.220 74.441 0
12 TOTAL XXX XXX XXX XXX XXX 16,325
<PAGE> 4
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 294,581 50,339
02 1985 0 .000 30,629 7,489
03 1986 0 .000 31,140 7,266
04 1987 0 .000 27,018 5,244
05 1988 0 .000 68,742 15,162
06 1989 0 .000 68,086 14,722
07 1990 0 .000 108,322 26,810
08 1991 0 .000 141,498 30,801
09 1992 0 .000 211,438 39,650
10 1993 0 .000 325,128 58,407
11 1994 0 .000 536,223 107,603
12 TOTAL 0 XXX 1,842,805 363,493
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 24 -5 5
02 1985 111,576 3,143 108,433 74,472 1,797 2,211
03 1986 97,549 4,075 93,474 51,294 867 1,582
04 1987 82,482 3,756 78,726 41,005 1,096 1,149
05 1988 81,107 3,461 77,646 44,615 1,120 960
06 1989 85,239 3,338 81,901 65,603 6,352 1,954
07 1990 94,463 3,379 91,084 53,777 1,480 3,158
08 1991 101,629 4,040 97,589 61,699 1,751 3,008
09 1992 96,387 5,042 91,345 50,318 1,968 2,154
10 1993 91,769 6,576 85,193 52,591 3,034 1,647
11 1994 98,865 14,070 84,795 46,930 4,578 832
12 TOTAL XXX XXX XXX 542,328 24,038 18,660
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 5 1 35 XXX 1,324
02 1985 118 853 5,326 80,094 44,004 38
03 1986 54 1,024 4,494 56,449 30,344 0
04 1987 34 659 4,113 45,137 21,682 57
05 1988 15 606 3,166 47,606 20,523 234
06 1989 23 680 4,071 65,253 28,589 234
07 1990 0 1,360 3,032 58,487 23,068 425
08 1991 0 908 3,210 66,166 26,545 1,093
09 1992 3 370 3,807 54,308 20,572 2,294
10 1993 47 234 4,997 56,154 22,315 2,964
11 1994 59 227 4,105 47,230 26,644 7,181
12 TOTAL 353 6,926 40,322 576,919 XXX 15,844
<PAGE> 5
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 35 243 5 1 0 0
02 1985 0 8 0 8 0 0
03 1986 0 12 0 0 0 0
04 1987 0 -4 0 3 0 0
05 1988 0 -8 -1 26 0 0
06 1989 0 -34 -2 28 0 0
07 1990 0 -123 -6 45 0 0
08 1991 0 -152 -6 122 0 0
09 1992 73 -134 2 297 0 0
10 1993 5 722 72 349 0 120
11 1994 281 9,975 737 875 33 1,090
12 TOTAL 394 10,505 801 1,754 33 1,210
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 22 1,549 23 XXX
02 1985 0 0 1 56 2 82,150
03 1986 0 0 0 12 0 57,472
04 1987 0 4 8 65 2 46,407
05 1988 0 9 19 270 6 49,062
06 1989 0 33 16 245 12 71,968
07 1990 0 119 28 383 20 60,492
08 1991 0 149 75 1,145 56 69,199
09 1992 0 203 128 2,515 75 59,032
10 1993 11 280 266 4,331 147 63,872
11 1994 62 465 1,278 19,286 1,715 72,628
12 TOTAL 73 1,262 1,841 29,857 2,058 XXX
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 584
02 1985 2,001 80,149 73.626 63.665 73.915 0
03 1986 1,011 56,461 58.916 24.809 60.402 0
04 1987 1,205 45,202 56.263 32.082 57.416 0
05 1988 1,187 47,875 60.490 34.296 61.658 0
06 1989 6,468 65,500 84.430 193.768 79.974 0
07 1990 1,632 58,860 64.037 48.298 64.621 0
08 1991 1,888 67,311 68.089 46.732 68.973 0
09 1992 2,209 56,823 61.244 43.811 62.207 0
10 1993 3,394 60,478 69.600 51.611 70.989 0
11 1994 6,113 66,515 73.461 43.447 78.442 0
12 TOTAL XXX XXX XXX XXX XXX 584
<PAGE> 6
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 943 23
02 1985 0 .000 46 9
03 1986 0 .000 12 0
04 1987 0 .000 54 11
05 1988 0 .000 226 44
06 1989 0 .000 202 43
07 1990 0 .000 308 73
08 1991 0 .000 948 198
09 1992 0 .000 2,083 425
10 1993 0 .000 3,609 729
11 1994 0 .000 16,138 3,148
12 TOTAL 0 XXX 24,569 4,703
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 868 161 11
02 1985 172,418 6,217 166,201 157,338 6,469 7,329
03 1986 173,992 8,428 165,564 130,305 6,836 5,911
04 1987 148,109 13,393 134,716 103,435 5,857 4,169
05 1988 157,205 13,338 143,867 116,533 13,923 4,570
06 1989 163,451 6,208 157,243 118,495 6,010 5,213
07 1990 195,604 6,178 189,426 138,855 6,118 8,057
08 1991 175,298 41,974 133,324 104,934 22,187 4,180
09 1992 209,845 45,450 164,395 110,681 20,613 3,455
10 1993 256,546 75,492 181,054 112,303 34,551 3,523
11 1994 366,877 170,599 196,278 117,356 69,041 4,189
12 TOTAL XXX XXX XXX 1,211,108 191,769 50,608
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 2 3 27 745 XXX 3,656
02 1985 327 2,664 10,030 167,901 73,368 328
03 1986 244 1,971 9,643 138,779 60,262 112
04 1987 90 1,711 9,897 111,554 53,355 465
05 1988 342 2,094 10,288 117,126 42,545 263
06 1989 77 2,261 11,124 128,745 48,695 1,419
07 1990 451 2,387 12,716 153,059 53,333 3,184
08 1991 1,257 1,968 6,415 92,085 37,298 3,730
09 1992 1,378 2,344 7,612 99,757 37,311 9,391
10 1993 2,038 1,956 9,794 89,031 43,748 23,072
11 1994 3,605 1,009 7,896 56,795 51,559 85,373
12 TOTAL 9,813 20,360 95,448 1,155,581 XXX 131,001
<PAGE> 7
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 297 838 0 36 26 0
02 1985 281 1 0 65 63 0
03 1986 25 -560 0 5 1 0
04 1987 4 -113 0 56 0 0
05 1988 5 -166 -1 9 2 0
06 1989 50 -93 -1 61 7 5
07 1990 155 4,075 -1 257 45 11
08 1991 225 1,630 186 273 60 220
09 1992 296 8,860 926 595 40 874
10 1993 2,028 18,208 1,183 1,636 253 775
11 1994 40,225 52,416 16,564 11,594 8,106 2,138
12 TOTAL 43,597 85,089 18,856 14,594 8,605 4,023
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 31 4,232 27 XXX
02 1985 0 0 2 53 5 175,755
03 1986 0 0 0 -462 7 146,148
04 1987 0 9 17 421 9 118,565
05 1988 0 20 3 102 8 132,149
06 1989 0 54 49 1,385 41 137,123
07 1990 0 102 175 7,503 102 168,083
08 1991 11 247 425 5,796 203 122,574
09 1992 57 637 1,464 19,872 469 143,412
10 1993 115 1,442 1,815 41,922 2,118 171,609
11 1994 237 2,530 5,790 92,172 9,359 287,796
12 TOTAL 419 5,049 9,778 173,002 12,348 XXX
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 1,150
02 1985 7,801 167,954 101.935 125.478 101.054 0
03 1986 7,832 138,316 83.996 92.928 83.542 0
04 1987 6,607 111,958 80.052 49.331 83.106 0
05 1988 14,900 117,249 84.061 111.710 81.498 0
06 1989 6,993 130,130 83.892 112.644 82.757 0
07 1990 7,536 160,547 85.930 121.981 84.754 0
08 1991 24,688 97,886 69.923 58.817 73.419 0
09 1992 23,792 119,620 68.341 52.347 72.763 0
10 1993 40,664 130,945 66.892 53.865 72.323 0
11 1994 138,817 148,979 78.444 81.370 75.902 0
12 TOTAL XXX XXX XXX XXX XXX 1,150
<PAGE> 8
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 3,040 41
02 1985 0 .000 47 4
03 1986 0 .000 -465 3
04 1987 0 .000 347 74
05 1988 0 .000 92 9
06 1989 0 .000 1,277 108
07 1990 0 .000 7,105 398
08 1991 0 .000 4,949 854
09 1992 0 .000 17,029 2,843
10 1993 0 .000 38,069 3,860
11 1994 0 .000 80,993 11,178
12 TOTAL 0 XXX 152,483 19,372
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX -237 790 279
02 1985 134,204 21,351 112,854 118,234 23,185 9,713
03 1986 195,936 44,713 151,217 101,087 14,339 8,618
04 1987 184,858 32,154 152,703 94,014 8,777 6,506
05 1988 168,550 17,643 150,901 100,752 11,298 11,249
06 1989 162,200 14,008 148,192 112,074 16,054 12,324
07 1990 160,763 25,728 135,027 96,390 16,271 9,869
08 1991 144,347 27,913 116,435 64,085 10,582 6,338
09 1992 168,696 58,675 110,020 64,210 21,600 7,353
10 1993 180,224 62,671 117,554 42,910 14,118 5,168
11 1994 190,522 67,646 122,876 19,579 4,986 2,053
12 TOTAL XXX XXX XXX 813,098 141,993 79,471
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 171 3 66 -847 XXX 11,284
02 1985 1,103 616 7,380 111,033 30,133 408
03 1986 1,017 543 8,743 103,092 20,272 468
04 1987 774 533 9,530 100,505 19,433 449
05 1988 1,736 1,254 10,204 109,164 20,678 2,469
06 1989 2,125 713 10,657 116,875 20,496 2,274
07 1990 1,742 723 9,558 97,802 17,793 8,754
08 1991 1,040 465 7,164 65,959 15,316 11,546
09 1992 3,204 430 6,526 53,292 15,015 21,487
10 1993 2,090 313 4,918 36,787 19,193 43,892
11 1994 859 180 3,565 19,358 19,204 57,489
12 TOTAL 15,870 5,780 78,307 813,014 XXX 160,526
<PAGE> 9
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 2,009 1,022 548 80 35 139
02 1985 195 298 179 7 1 215
03 1986 173 2,076 655 73 7 312
04 1987 21 976 590 65 4 343
05 1988 1,162 988 844 376 52 187
06 1989 622 3,875 2,028 1,066 130 740
07 1990 4,508 9,193 4,259 1,674 324 1,390
08 1991 4,446 18,638 5,246 2,167 771 2,996
09 1992 8,757 30,518 11,386 2,521 819 3,900
10 1993 15,708 36,645 11,863 5,174 1,464 3,658
11 1994 26,384 47,607 15,212 5,973 2,059 5,737
12 TOTAL 63,978 151,841 52,805 19,176 5,673 19,619
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 85 0 107 9,954 69 XXX
02 1985 184 0 -7 363 5 136,359
03 1986 236 0 12 1,878 2 121,519
04 1987 222 2 8 1,004 10 112,078
05 1988 123 9 82 1,922 32 126,539
06 1989 383 86 293 5,083 62 143,667
07 1990 821 104 706 11,812 119 137,959
08 1991 1,781 111 868 23,964 276 114,228
09 1992 1,727 129 1,702 37,438 553 139,105
10 1993 1,956 209 2,167 60,552 1,685 145,217
11 1994 2,192 338 4,398 75,357 4,624 147,127
12 TOTAL 9,708 994 10,342 229,336 7,437 XXX
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 5,021
02 1985 24,964 111,395 101.606 116.922 98.707 0
03 1986 16,557 104,962 62.020 37.029 69.412 0
04 1987 10,570 101,508 60.629 32.873 66.474 0
05 1988 15,447 111,092 75.075 87.553 73.619 0
06 1989 21,709 121,958 88.574 154.976 82.297 0
07 1990 28,343 109,616 85.815 110.164 81.181 0
08 1991 24,305 89,923 79.134 87.074 77.230 0
09 1992 48,375 90,730 82.459 82.446 82.467 0
10 1993 47,874 97,343 80.576 76.389 82.807 0
11 1994 52,412 94,715 77.223 77.480 77.082 0
12 TOTAL XXX XXX XXX XXX XXX 5,021
<PAGE> 10
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 4,726 207
02 1985 0 .000 333 30
03 1986 0 .000 1,716 154
04 1987 0 .000 813 191
05 1988 0 .000 1,451 471
06 1989 0 .000 3,498 1,586
07 1990 0 .000 9,187 2,626
08 1991 0 .000 20,491 3,473
09 1992 0 .000 31,861 5,576
10 1993 0 .000 52,973 7,579
11 1994 0 .000 63,500 11,857
12 TOTAL 0 XXX 190,549 33,750
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 22,981 9,532 2,284
02 1985 244,146 14,019 230,127 219,420 9,656 8,054
03 1986 237,728 16,309 221,419 160,372 6,573 5,865
04 1987 199,228 15,758 183,463 145,059 7,046 5,050
05 1988 248,331 30,466 217,865 165,145 9,190 6,264
06 1989 198,860 14,017 184,836 144,066 9,896 5,821
07 1990 178,732 17,915 160,817 130,700 14,767 5,450
08 1991 181,465 34,577 146,888 102,326 15,028 4,954
09 1992 176,694 42,915 133,778 81,080 18,411 4,125
10 1993 154,386 43,651 110,735 43,045 12,879 1,863
11 1994 151,189 30,794 120,395 14,676 4,111 332
12 TOTAL XXX XXX XXX 1,228,868 117,090 50,074
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 1,389 130 1,293 15,632 XXX 145,276
02 1985 595 4,183 16,715 233,931 71,344 11,132
03 1986 494 3,287 13,127 172,296 48,919 9,117
04 1987 397 3,403 10,825 153,491 44,015 8,941
05 1988 425 3,396 11,465 173,259 43,898 61,422
06 1989 629 2,509 10,049 149,411 32,694 20,809
07 1990 848 2,508 7,914 128,454 28,292 17,373
08 1991 1,363 1,064 9,361 100,257 23,368 21,723
09 1992 1,545 538 8,972 74,220 21,281 24,348
10 1993 666 78 7,435 38,799 16,522 24,670
11 1994 76 6 4,233 15,054 12,053 17,698
12 TOTAL 8,433 21,108 101,390 1,254,811 XXX 362,507
<PAGE> 11
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 65,829 27,312 10,894 5,351 2,602 29
02 1985 1,623 1,786 81 462 84 70
03 1986 776 1,763 81 383 38 37
04 1987 385 2,627 -35 464 29 0
05 1988 27,070 2,717 20 4,780 81 78
06 1989 909 6,284 621 860 64 70
07 1990 2,322 8,077 911 978 156 292
08 1991 3,106 13,682 2,756 1,100 233 501
09 1992 6,567 22,236 6,647 1,339 499 247
10 1993 5,854 30,954 9,500 1,185 449 1,407
11 1994 3,735 59,195 6,337 1,178 286 6,551
12 TOTAL 118,170 176,624 37,821 18,085 4,535 9,296
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 27 0 3,401 102,010 1,989 XXX
02 1985 65 0 1,008 12,612 162 259,036
03 1986 34 0 934 11,304 118 192,007
04 1987 0 448 412 12,064 140 173,718
05 1988 9 833 578 42,387 230 257,155
06 1989 46 1,113 1,453 27,841 264 189,861
07 1990 104 1,968 1,929 25,157 383 173,239
08 1991 255 1,750 2,072 32,727 539 156,668
09 1992 577 1,796 3,065 36,943 784 147,115
10 1993 785 1,185 4,278 45,908 937 116,859
11 1994 559 1,758 4,164 77,876 1,434 109,344
12 TOTAL 2,454 10,851 23,302 426,836 7,019 XXX
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 567
02 1985 12,493 246,543 106.099 89.115 107.133 0
03 1986 8,406 183,601 80.768 51.542 82.920 0
04 1987 8,165 165,553 87.196 51.815 90.238 0
05 1988 41,501 215,654 103.553 136.221 98.985 0
06 1989 12,610 177,251 95.475 89.962 95.896 0
07 1990 19,627 153,612 96.927 109.556 95.520 0
08 1991 23,690 132,978 86.335 68.514 90.530 0
09 1992 35,951 111,164 83.260 83.773 83.096 0
10 1993 32,154 84,705 75.693 73.662 76.493 0
11 1994 16,415 92,929 72.323 53.306 77.187 0
12 TOTAL XXX XXX XXX XXX XXX 567
<PAGE> 12
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 95,299 6,144
02 1985 0 .000 11,214 1,399
03 1986 0 .000 10,022 1,289
04 1987 0 .000 11,209 854
05 1988 0 .000 37,040 5,346
06 1989 0 .000 25,570 2,272
07 1990 0 .000 22,225 2,940
08 1991 0 .000 29,543 3,184
09 1992 0 .000 33,368 3,574
10 1993 0 .000 40,271 5,644
11 1994 0 .000 66,821 11,055
12 TOTAL 0 XXX 382,582 43,701
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 3,376 872 1,418
02 1985 241,638 19,954 221,684 148,480 13,647 20,974
03 1986 240,615 29,956 210,659 76,087 6,427 16,766
04 1987 245,686 27,956 217,730 87,338 9,072 14,501
05 1988 244,677 22,603 222,066 101,712 7,620 16,338
06 1989 227,933 21,835 206,098 107,201 12,854 15,453
07 1990 242,665 20,707 221,958 109,806 7,746 16,353
08 1991 234,914 21,560 213,354 111,797 11,751 15,269
09 1992 211,141 23,519 187,622 103,117 16,125 10,687
10 1993 196,490 25,468 171,022 56,519 6,511 5,565
11 1994 223,458 37,281 186,177 49,953 5,885 2,869
12 TOTAL XXX XXX XXX 955,394 98,518 136,200
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 172 56 78 3,834 XXX 4,875
02 1985 2,700 5,947 13,083 166,190 24,542 1,063
03 1986 1,772 2,344 7,582 92,236 14,827 1,783
04 1987 1,027 1,877 7,545 99,285 13,433 1,510
05 1988 858 5,783 7,826 117,391 14,869 4,593
06 1989 1,316 3,670 7,562 116,046 16,705 7,589
07 1990 990 2,515 8,117 125,540 16,872 9,977
08 1991 1,353 1,942 9,708 123,670 16,276 12,692
09 1992 651 1,924 9,417 106,445 14,718 21,864
10 1993 399 745 7,351 62,525 14,083 20,242
11 1994 277 208 4,518 51,178 12,765 35,083
12 TOTAL 11,509 27,004 82,787 1,064,347 XXX 121,271
<PAGE> 13
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 102 7,106 140 1,161 25 2,133
02 1985 25 2,618 233 347 8 215
03 1986 36 912 29 587 12 158
04 1987 2 303 -4 492 1 107
05 1988 -368 17 -152 1,511 4 332
06 1989 75 1,453 49 2,489 25 785
07 1990 489 10,052 874 3,274 164 3,643
08 1991 441 13,871 1,528 4,170 145 5,004
09 1992 2,321 14,450 1,510 7,131 704 5,582
10 1993 2,124 26,843 3,587 6,623 697 9,454
11 1994 4,818 32,963 3,030 11,130 1,351 11,330
12 TOTAL 10,065 110,588 10,824 38,915 3,136 38,743
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 53 0 948 15,904 131 XXX
02 1985 65 0 153 4,072 52 187,395
03 1986 9 0 163 3,516 48 104,250
04 1987 6 57 129 2,543 40 111,844
05 1988 37 791 389 7,321 71 132,269
06 1989 84 764 716 12,799 171 142,957
07 1990 358 813 1,770 26,824 232 163,044
08 1991 609 1,048 2,351 35,364 451 174,900
09 1992 714 1,896 2,980 46,772 694 175,609
10 1993 1,315 1,546 4,105 59,542 1,153 137,533
11 1994 1,019 1,852 5,739 86,033 2,634 155,093
12 TOTAL 4,269 8,767 19,443 300,690 5,677 XXX
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 468
02 1985 17,133 170,262 77.551 85.862 76.803 0
03 1986 8,507 95,743 43.326 28.398 45.449 0
04 1987 10,015 101,829 45.523 35.824 46.768 0
05 1988 7,558 124,711 54.059 33.438 56.159 0
06 1989 14,118 128,839 62.718 64.657 62.513 0
07 1990 10,681 152,363 67.188 51.581 68.644 0
08 1991 15,859 159,041 74.452 73.557 74.543 0
09 1992 22,393 153,216 83.171 95.212 81.662 0
10 1993 15,460 122,073 69.994 60.703 71.378 0
11 1994 17,883 137,210 69.405 47.968 73.698 0
12 TOTAL XXX XXX XXX XXX XXX 468
<PAGE> 14
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 11,270 4,166
02 1985 0 .000 3,424 648
03 1986 0 .000 2,629 887
04 1987 0 .000 1,816 727
05 1988 0 .000 5,129 2,192
06 1989 0 .000 8,918 3,881
07 1990 0 .000 18,667 8,157
08 1991 0 .000 24,594 10,777
09 1992 0 .000 32,483 14,283
10 1993 0 .000 41,373 18,169
11 1994 0 .000 60,198 25,835
12 TOTAL 0 XXX 210,501 89,722
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 268 66 0
02 1985 107 78 29 0 -1 0
03 1986 8 0 8 0 0 0
04 1987 0 0 0 0 13 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 1 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 0 1 0
10 1993 0 0 0 0 0 0
11 1994 0 0 0 0 0 0
12 TOTAL XXX XXX XXX 268 80 0
<PAGE> 15
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 -4 198 XXX 2,361
02 1985 0 0 1 2 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 -13 0 0
05 1988 0 0 1 0 0 0
06 1989 0 0 5 5 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 -1 0 0
10 1993 0 0 0 0 0 0
11 1994 0 0 -4 -4 0 0
12 TOTAL 0 0 0 188 XXX 2,361
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 1 1,385 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 0 0 0
10 1993 0 0 0 0 0 0
11 1994 0 0 0 0 0 0
12 TOTAL 1 1,385 0 0 0 0
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 3,751 3 XXX
02 1985 0 0 0 0 0 1
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 1
06 1989 0 0 0 0 0 5
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 0 0 0
10 1993 0 0 0 0 0 0
11 1994 0 0 0 0 0 0
12 TOTAL 0 0 0 3,751 3 XXX
<PAGE> 16
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1985 -1 2 .935 -1.282 6.897 0
03 1986 0 0 .000 .000 .000 0
04 1987 13 -13 .000 .000 .000 0
05 1988 0 1 .000 .000 .000 0
06 1989 0 5 .000 .000 .000 0
07 1990 1 -1 .000 .000 .000 0
08 1991 0 0 .000 .000 .000 0
09 1992 1 -1 .000 .000 .000 0
10 1993 0 0 .000 .000 .000 0
11 1994 4 -4 .000 .000 .000 0
12 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 3,751 0
02 1985 0 .000 0 0
03 1986 0 .000 0 0
04 1987 0 .000 0 0
05 1988 0 .000 0 0
06 1989 0 .000 0 0
07 1990 0 .000 0 0
08 1991 0 .000 0 0
09 1992 0 .000 0 0
10 1993 0 .000 0 0
11 1994 0 .000 0 0
12 TOTAL 0 XXX 3,751 0
SCHEDULE P - PART 2 - SUMMARY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 786,325 936,136 994,697 1,077,786 1,132,348 1,174,752
02 1985 978,828 958,815 983,449 1,000,355 1,025,162 1,019,315
03 1986 XXX 996,961 940,712 914,288 855,986 839,789
04 1987 XXX XXX 897,815 865,405 834,349 807,816
05 1988 XXX XXX XXX 888,742 871,868 882,353
06 1989 XXX XXX XXX XXX 847,729 866,093
07 1990 XXX XXX XXX XXX XXX 902,268
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2 - SUMMARY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 1,188,544 1,248,107 1,307,369 1,399,108 91,739 150,995
02 1985 1,014,524 1,011,562 1,015,868 1,019,732 3,857 8,170
03 1986 821,392 807,885 790,558 795,393 4,836 -12,492
04 1987 779,164 767,031 737,699 732,075 -5,625 -34,963
05 1988 879,174 861,280 850,661 822,193 -28,461 -39,080
06 1989 851,276 858,972 847,131 826,288 -20,843 -32,683
07 1990 901,393 907,737 907,942 882,582 -25,360 -25,148
08 1991 823,181 826,474 820,581 771,281 -49,300 -55,193
09 1992 XXX 824,910 825,227 810,834 -14,393 -14,076
10 1993 XXX XXX 825,818 815,112 -10,713 XXX
11 1994 XXX XXX XXX 950,252 XXX XXX
12 TOTAL -54,269 -54,472
<PAGE> 17
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 224,567 452,071 609,596 721,206 826,128
02 1985 390,951 609,720 736,163 814,048 877,849 921,877
03 1986 XXX 267,319 457,757 555,987 635,066 685,447
04 1987 XXX XXX 229,945 419,822 527,277 595,997
05 1988 XXX XXX XXX 243,631 444,827 548,827
06 1989 XXX XXX XXX XXX 266,124 489,981
07 1990 XXX XXX XXX XXX XXX 328,470
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3 - SUMMARY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 897,980 952,338 1,000,999 1,052,403 XXX XXX
02 1985 944,548 964,153 976,765 984,277 XXX XXX
03 1986 717,642 736,799 749,898 759,819 XXX XXX
04 1987 638,084 665,729 689,556 701,377 XXX XXX
05 1988 619,362 670,910 703,271 740,270 XXX XXX
06 1989 595,030 665,580 716,617 747,373 XXX XXX
07 1990 517,420 637,192 702,927 754,339 XXX XXX
08 1991 260,999 454,330 545,628 607,632 XXX XXX
09 1992 XXX 273,120 474,103 571,827 XXX XXX
10 1993 XXX XXX 281,008 448,706 XXX XXX
11 1994 XXX XXX XXX 340,424 XXX XXX
SCHEDULE P - PART 4 - SUMMARY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 178,079 121,196 85,179 84,433 102,317 72,035
02 1985 313,064 127,504 90,198 62,562 64,042 40,242
03 1986 XXX 481,888 312,798 227,845 132,027 92,238
04 1987 XXX XXX 439,696 271,081 190,612 128,180
05 1988 XXX XXX XXX 372,294 221,771 172,155
06 1989 XXX XXX XXX XXX 315,475 170,743
07 1990 XXX XXX XXX XXX XXX 321,746
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 18
SCHEDULE P - PART 4 - SUMMARY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 68,492 70,481 66,421 124,646
02 1985 28,867 13,465 13,038 16,878
03 1986 60,389 37,334 16,329 17,176
04 1987 84,307 56,329 22,490 10,328
05 1988 139,151 95,472 72,855 29,864
06 1989 115,864 85,153 62,290 35,062
07 1990 182,772 132,267 96,343 66,125
08 1991 362,767 210,166 162,509 91,543
09 1992 XXX 334,567 190,535 140,815
10 1993 XXX XXX 363,753 208,361
11 1994 XXX XXX XXX 332,758
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 0 0 0
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 0 0 0
10 1993 0 0 0 0 0 0
11 1994 775 177 598 0 0 9
12 TOTAL XXX XXX XXX 0 0 9
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 0 0 XXX 0
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 0 0 0
10 1993 0 0 9 9 0 0
11 1994 0 0 185 194 2 529
12 TOTAL 0 0 194 203 XXX 529
<PAGE> 19
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 0 0 0
10 1993 0 0 0 0 0 0
11 1994 99 0 0 40 5 0
12 TOTAL 99 0 0 40 5 0
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 XXX
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 0 0 0
10 1993 0 0 0 0 0 9
11 1994 0 0 15 473 2 778
12 TOTAL 0 0 15 473 2 XXX
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1985 0 0 .000 .000 .000 0
03 1986 0 0 .000 .000 .000 0
04 1987 0 0 .000 .000 .000 0
05 1988 0 0 .000 .000 .000 0
06 1989 0 0 .000 .000 .000 0
07 1990 0 0 .000 .000 .000 0
08 1991 0 0 .000 .000 .000 0
09 1992 0 0 .000 .000 .000 0
10 1993 0 9 .000 .000 .000 0
11 1994 104 674 100.387 58.757 112.709 0
12 TOTAL XXX XXX XXX XXX XXX 0
<PAGE> 20
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 0 0
02 1985 0 .000 0 0
03 1986 0 .000 0 0
04 1987 0 .000 0 0
05 1988 0 .000 0 0
06 1989 0 .000 0 0
07 1990 0 .000 0 0
08 1991 0 .000 0 0
09 1992 0 .000 0 0
10 1993 0 .000 0 0
11 1994 0 .000 422 52
12 TOTAL 0 XXX 422 52
SCHEDULE P - PART 1G - SPECIAL LIABILITY
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 622 189 2
02 1985 24,498 8,106 16,385 11,261 2,966 1,139
03 1986 26,847 9,795 17,050 10,816 2,972 1,169
04 1987 27,164 10,334 16,830 14,644 5,997 1,168
05 1988 26,953 9,996 16,957 13,972 4,043 1,371
06 1989 26,822 9,541 17,281 18,023 6,930 1,490
07 1990 32,948 10,990 21,957 26,402 10,614 2,039
08 1991 40,572 13,499 27,073 25,388 8,827 2,098
09 1992 55,685 17,701 37,982 47,652 24,767 2,460
10 1993 73,083 24,753 48,329 37,698 12,182 2,292
11 1994 78,394 25,100 53,287 15,016 2,268 822
12 TOTAL XXX XXX XXX 221,485 81,755 16,056
SCHEDULE P - PART 1G - SPECIAL LIABILITY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 2 2 36 468 XXX 1,749
02 1985 270 1,313 677 9,840 XXX 53
03 1986 169 1,478 560 9,396 XXX 132
04 1987 310 1,849 675 10,174 XXX 134
05 1988 385 1,086 906 11,821 XXX 307
06 1989 277 1,795 948 13,252 XXX 681
07 1990 414 1,603 1,006 18,410 XXX 623
08 1991 414 1,320 934 19,171 XXX 779
09 1992 664 1,981 1,426 26,113 XXX 3,074
10 1993 426 2,417 2,012 29,396 XXX 8,124
11 1994 102 276 1,442 14,917 XXX 23,718
12 TOTAL 3,449 15,127 10,616 162,954 XXX 39,367
<PAGE> 21
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 364 980 85 154 29 0
02 1985 4 369 0 5 0 0
03 1986 3 10 0 6 0 0
04 1987 11 14 -4 4 0 1
05 1988 19 87 0 13 1 7
06 1989 33 46 -11 66 2 4
07 1990 192 150 -4 34 18 5
08 1991 115 270 43 135 11 25
09 1992 640 -557 -123 464 58 6
10 1993 2,921 -1,778 -172 1,165 407 78
11 1994 4,777 494 580 1,986 572 661
12 TOTAL 9,092 93 393 4,038 1,100 795
SCHEDULE P - PART 1G - SPECIAL LIABILITY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 49 2,456 44 XXX
02 1985 0 0 2 424 0 13,546
03 1986 0 0 2 147 1 12,721
04 1987 0 17 2 149 0 16,666
05 1988 1 23 7 402 1 16,715
06 1989 0 59 21 794 5 21,324
07 1990 0 45 12 618 17 30,337
08 1991 15 126 36 1,060 45 29,734
09 1992 0 545 82 2,494 99 54,748
10 1993 56 1,727 200 4,570 395 50,039
11 1994 196 2,925 529 21,262 863 44,908
12 TOTAL 268 5,460 943 34,384 1,486 XXX
SCHEDULE P - PART 1G - SPECIAL LIABILITY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 201
02 1985 3,281 10,265 55.294 40.476 62.649 0
03 1986 3,177 9,544 47.383 32.435 55.977 0
04 1987 6,335 10,331 61.353 61.302 61.384 0
05 1988 4,486 12,229 62.015 44.878 72.118 0
06 1989 7,278 14,046 79.502 76.281 81.280 0
07 1990 11,308 19,029 92.075 102.894 86.665 0
08 1991 9,503 20,231 73.287 70.398 74.728 0
09 1992 26,140 28,608 98.317 147.675 75.320 0
10 1993 16,073 33,966 68.469 64.934 70.281 0
11 1994 8,729 36,179 57.285 34.777 67.895 0
12 TOTAL XXX XXX XXX XXX XXX 201
<PAGE> 22
SCHEDULE P - PART 1G - SPECIAL LIABILITY
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 2,073 176
02 1985 0 .000 418 6
03 1986 0 .000 139 8
04 1987 0 .000 141 7
05 1988 0 .000 375 27
06 1989 0 .000 706 88
07 1990 0 .000 584 34
08 1991 0 .000 892 169
09 1992 0 .000 2,000 494
10 1993 0 .000 3,591 979
11 1994 0 .000 18,856 2,407
12 TOTAL 0 XXX 29,775 4,395
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 34,012 11,938 17,383
02 1985 183,184 77,303 105,875 183,335 119,416 38,225
03 1986 394,860 141,140 253,720 132,167 64,439 27,106
04 1987 330,281 101,880 228,401 95,345 32,372 17,469
05 1988 248,863 76,379 172,484 88,375 26,574 14,697
06 1989 191,026 69,811 121,215 42,880 8,924 7,065
07 1990 195,495 61,527 133,968 38,665 14,536 5,942
08 1991 186,526 49,655 136,871 37,841 9,083 5,410
09 1992 181,617 61,782 119,835 30,401 9,681 4,331
10 1993 219,054 103,711 115,343 18,756 10,935 2,738
11 1994 240,443 115,502 124,941 6,942 6,878 535
12 TOTAL XXX XXX XXX 708,719 314,776 140,901
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 4,766 1 575 35,272 XXX 112,534
02 1985 19,474 628 5,558 88,226 13,078 20,568
03 1986 10,126 633 5,471 90,179 11,474 4,618
04 1987 2,631 577 5,232 83,043 8,703 5,111
05 1988 1,283 1,880 6,872 82,087 6,749 2,374
06 1989 -1,263 138 5,501 47,779 5,482 4,756
07 1990 -2,224 796 4,053 36,348 4,976 6,395
08 1991 598 207 3,640 37,210 4,719 11,149
09 1992 995 61 3,078 27,134 5,868 15,079
10 1993 598 27 2,886 12,847 4,882 21,502
11 1994 95 7 2,427 2,931 3,650 18,727
12 TOTAL 37,079 4,955 45,293 543,058 XXX 222,813
<PAGE> 23
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 28,429 120,591 59,908 14,279 3,547 16,779
02 1985 15,885 8,351 2,380 1,600 624 2,451
03 1986 1,946 9,121 2,394 779 183 2,155
04 1987 2,193 6,850 2,632 685 77 1,867
05 1988 622 24,755 7,489 624 55 6,763
06 1989 1,551 25,590 9,109 510 74 5,719
07 1990 1,817 34,058 11,571 1,390 396 8,112
08 1991 1,989 39,034 10,476 2,872 517 7,528
09 1992 4,653 52,955 12,563 4,067 1,098 8,441
10 1993 5,685 94,273 40,188 5,621 1,649 12,794
11 1994 8,881 103,768 36,590 4,763 1,870 17,660
12 TOTAL 73,651 519,346 195,300 37,190 10,090 90,269
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 5,817 0 7,890 174,373 1,912 XXX
02 1985 870 0 1,053 14,265 259 261,807
03 1986 717 0 1,346 12,779 159 183,489
04 1987 830 44 792 9,575 120 133,761
05 1988 2,497 91 455 24,315 105 145,485
06 1989 2,576 28 848 24,113 144 93,701
07 1990 3,528 100 1,175 33,811 250 100,947
08 1991 3,434 26 1,808 45,975 299 110,492
09 1992 4,134 8 1,951 60,044 407 121,732
10 1993 6,131 7 2,725 83,261 671 163,490
11 1994 6,162 18 6,194 97,618 999 162,701
12 TOTAL 36,696 322 26,237 580,129 5,325 XXX
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 8,223
02 1985 159,323 102,484 142.920 206.102 96.797 0
03 1986 80,531 102,958 46.469 57.057 40.579 0
04 1987 41,137 92,624 40.499 40.377 40.553 0
05 1988 39,074 106,411 58.459 51.158 61.693 0
06 1989 21,808 71,893 49.051 31.239 59.310 0
07 1990 30,766 70,181 51.636 50.004 52.386 0
08 1991 27,308 83,184 59.236 54.995 60.775 0
09 1992 34,550 87,182 67.026 55.922 72.751 0
10 1993 67,382 96,108 74.634 64.970 83.323 0
11 1994 62,144 100,557 67.667 53.803 80.483 0
12 TOTAL XXX XXX XXX XXX XXX 8,223
<PAGE> 24
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 136,565 29,583
02 1985 0 .000 10,654 3,610
03 1986 0 .000 9,399 3,380
04 1987 0 .000 7,137 2,437
05 1988 0 .000 19,026 5,288
06 1989 0 .000 19,693 4,421
07 1990 0 .000 27,065 6,754
08 1991 0 .000 37,725 8,250
09 1992 0 .000 50,817 9,226
10 1993 0 .000 69,909 13,359
11 1994 0 .000 77,033 20,591
12 TOTAL 0 XXX 465,023 106,899
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 0 0 0
02 1985 8,242 5,981 2,261 199 125 77
03 1986 28,619 13,637 14,982 2,093 1,005 601
04 1987 78,099 26,911 51,188 13,642 7,259 2,265
05 1988 78,766 22,134 56,632 8,306 2,623 1,830
06 1989 65,766 13,191 52,575 18,675 8,439 3,873
07 1990 73,175 15,049 58,126 38,097 7,941 1,997
08 1991 78,659 10,224 68,435 6,341 1,597 1,838
09 1992 93,711 11,248 82,463 17,407 2,917 1,904
10 1993 109,153 9,591 99,562 3,202 78 1,978
11 1994 129,443 12,185 117,258 3,033 261 653
12 TOTAL XXX XXX XXX 110,995 32,245 17,016
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 0 0 XXX 0
02 1985 48 0 0 103 31 0
03 1986 245 0 0 1,444 104 0
04 1987 769 5 716 8,595 460 532
05 1988 485 3 379 7,407 298 202
06 1989 1,722 4 988 13,375 287 3,564
07 1990 383 4 2,056 33,826 350 18,617
08 1991 169 0 1,244 7,657 476 8,178
09 1992 454 0 1,923 17,863 426 7,477
10 1993 93 46 1,315 6,324 548 19,934
11 1994 5 0 873 4,293 660 33,795
12 TOTAL 4,373 62 9,494 100,887 XXX 92,299
<PAGE> 25
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 0 0 0 60 8 0
04 1987 300 10 0 136 75 2
05 1988 79 10 0 72 20 2
06 1989 934 24 3 872 230 4
07 1990 4,425 135 19 4,206 969 16
08 1991 445 6,295 270 1,612 50 41
09 1992 1,668 27,916 106 1,479 409 83
10 1993 597 40,272 371 4,772 130 169
11 1994 168 45,408 906 8,250 12 397
12 TOTAL 8,616 120,070 1,675 21,459 1,903 714
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 XXX
02 1985 0 0 0 0 0 276
03 1986 0 0 0 52 1 2,754
04 1987 0 0 17 315 3 17,325
05 1988 0 0 6 194 6 10,818
06 1989 1 0 113 3,403 13 28,151
07 1990 4 0 610 18,167 55 65,880
08 1991 16 0 451 15,799 97 26,007
09 1992 29 0 285 35,042 148 58,549
10 1993 59 0 1,017 65,006 247 72,683
11 1994 136 0 1,848 88,474 588 94,263
12 TOTAL 245 0 4,347 226,452 1,158 XXX
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1985 173 103 3.348 2.892 4.555 0
03 1986 1,258 1,496 9.622 9.224 9.985 0
04 1987 8,413 8,912 22.183 31.262 17.410 0
05 1988 3,216 7,602 13.734 14.529 13.423 0
06 1989 11,365 16,786 42.804 86.157 31.927 0
07 1990 13,895 51,985 90.030 92.331 89.435 0
08 1991 2,552 23,455 33.062 24.960 34.273 0
09 1992 5,650 52,899 62.478 50.231 64.148 0
10 1993 1,351 71,332 66.588 14.086 71.645 0
11 1994 1,500 92,763 72.822 12.310 79.110 0
12 TOTAL XXX XXX XXX XXX XXX 0
<PAGE> 26
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 0 0
02 1985 0 .000 0 0
03 1986 0 .000 0 52
04 1987 0 .000 234 81
05 1988 0 .000 133 61
06 1989 0 .000 2,651 759
07 1990 0 .000 14,308 3,860
08 1991 0 .000 13,759 2,040
09 1992 0 .000 33,626 1,409
10 1993 0 .000 59,238 5,769
11 1994 0 .000 78,128 10,346
12 TOTAL 0 XXX 202,077 24,369
SCHEDULE P - PART 1I - SPECIAL PROPERTY
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 16,159 4,148 2,280
02 1993 220,566 60,345 160,224 123,933 40,375 3,115
03 1994 309,664 106,953 202,712 144,871 54,513 3,413
04 TOTAL XXX XXX XXX 284,962 99,036 8,808
SCHEDULE P - PART 1I - SPECIAL PROPERTY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 540 811 213 13,961 XXX 5,118
02 1993 839 837 2,675 88,510 XXX 12,495
03 1994 722 506 4,128 97,177 XXX 92,516
04 TOTAL 2,102 2,154 7,017 199,648 XXX 110,130
<PAGE> 27
SCHEDULE P - PART 1I - SPECIAL PROPERTY
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 1,825 5,605 1,714 312 150 507
02 1993 5,324 3,854 780 1,032 418 323
03 1994 47,862 11,054 2,841 7,158 3,777 1,230
04 TOTAL 55,012 20,521 5,334 8,509 4,351 2,067
SCHEDULE P - PART 1I - SPECIAL PROPERTY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 235 552 154 7,787 50 XXX
02 1993 130 404 259 11,310 121 149,065
03 1994 359 857 1,217 58,339 1,000 266,238
04 TOTAL 731 1,813 1,630 77,438 1,180 XXX
SCHEDULE P - PART 1I - SPECIAL PROPERTY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 60
02 1993 49,245 99,820 67.583 81.606 62.300 0
03 1994 110,721 155,517 85.976 103.523 76.718 0
04 TOTAL XXX XXX XXX XXX XXX 60
<PAGE> 28
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 7,131 597
02 1993 0 .000 10,245 1,065
03 1994 0 .000 52,869 5,470
04 TOTAL 0 XXX 70,252 7,132
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 209 152 506
02 1993 157,065 52,479 104,587 83,742 24,616 1,940
03 1994 220,419 103,150 117,270 124,718 62,749 3,717
04 TOTAL XXX XXX XXX 208,663 87,517 6,162
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 120 692 208 650 XXX 1,590
02 1993 610 7,210 4,021 64,478 53,090 263
03 1994 2,884 5,300 5,528 68,324 60,234 8,922
04 TOTAL 3,614 13,210 9,757 133,452 XXX 10,776
<PAGE> 29
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 10 5,391 4,242 64 0 22
02 1993 8 3,467 2,607 48 13 43
03 1994 4,562 5,801 2,677 1,215 1,053 286
04 TOTAL 4,580 14,666 9,527 1,327 1,066 351
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 3 882 175 2,985 18 XXX
02 1993 4 791 136 1,333 476 93,992
03 1994 21 4,483 854 8,758 2,870 151,377
04 TOTAL 29 6,156 1,164 13,084 3,367 XXX
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1993 28,182 65,810 59.843 53.701 62.924 0
03 1994 74,297 77,080 68.677 72.028 65.729 0
04 TOTAL XXX XXX XXX XXX XXX 0
<PAGE> 30
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 2,730 257
02 1993 0 .000 1,123 209
03 1994 0 .000 7,481 1,275
04 TOTAL 0 XXX 11,336 1,741
SCHEDULE P - PART 1K - FIDELITY, SURETY
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 1,872 605 1,308
02 1993 39,048 7,875 31,174 13,705 4,334 971
03 1994 40,234 8,177 32,058 2,040 478 149
04 TOTAL XXX XXX XXX 17,609 5,415 2,428
<PAGE> 31
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 419 727 145 2,302 XXX -257
02 1993 230 18 1,071 11,176 XXX -4,889
03 1994 33 0 749 2,419 XXX 2,165
04 TOTAL 689 744 1,966 15,898 XXX -2,980
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR -626 4,816 671 -173 -140 731
02 1993 -2,243 755 104 -695 -317 123
03 1994 383 3,706 565 301 50 535
04 TOTAL -2,486 9,270 1,333 -565 -406 1,381
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 101 358 632 5,746 229 XXX
02 1993 18 103 -227 -2,494 136 10,778
03 1994 80 22 644 6,264 270 10,408
04 TOTAL 198 483 1,041 9,515 638 XXX
<PAGE> 32
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1993 2,091 8,687 27.602 26.552 27.866 0
03 1994 1,724 8,684 25.869 21.084 27.088 0
04 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 4,516 1,222
02 1993 0 .000 -1,995 -493
03 1994 0 .000 4,922 1,342
04 TOTAL 0 XXX 7,443 2,073
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX -258 -183 0
02 1993 8,387 3,299 5,088 1,615 689 0
03 1994 12,039 4,995 7,044 193 129 0
04 TOTAL XXX XXX XXX 1,550 634 0
<PAGE> 33
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 -5 -80 XXX 0
02 1993 0 0 67 994 XXX 750
03 1994 0 0 51 115 XXX 273
04 TOTAL 0 0 112 1,029 XXX 1,024
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 582 323 0 0 0
02 1993 283 1,607 465 0 0 0
03 1994 121 3,152 1,125 0 0 0
04 TOTAL 403 5,334 1,920 0 0 0
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 253 0 XXX
02 1993 0 0 0 1,603 0 4,035
03 1994 0 0 0 2,179 0 3,677
04 TOTAL 0 0 0 4,035 0 XXX
<PAGE> 34
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1993 1,437 2,598 48.110 43.559 51.061 0
03 1994 1,375 2,302 30.542 27.528 32.680 0
04 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 253 0
02 1993 0 .000 1,603 0
03 1994 0 .000 2,179 0
04 TOTAL 0 XXX 4,035 0
SCHEDULE P - PART 1M - INTERNATIONAL
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 122 54 0
02 1985 -97 -21 -76 0 0 0
03 1986 -222 -9 -213 0 0 0
04 1987 154 3 151 0 0 0
05 1988 159 8 151 0 0 0
06 1989 -12 -1 -11 0 0 0
07 1990 -13 -1 -12 0 0 0
08 1991 2 0 2 0 0 0
09 1992 16 1 15 0 0 0
10 1993 3 0 3 0 0 0
11 1994 0 0 0 0 0 0
12 TOTAL XXX XXX XXX 122 54 0
<PAGE> 35
SCHEDULE P - PART 1M - INTERNATIONAL
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 7 75 XXX 3,595
02 1985 0 0 0 0 XXX 0
03 1986 0 0 0 0 XXX 0
04 1987 0 0 0 0 XXX 0
05 1988 0 0 0 0 XXX 0
06 1989 0 0 0 0 XXX 0
07 1990 0 0 0 0 XXX 0
08 1991 0 0 0 0 XXX 0
09 1992 0 0 0 0 XXX 0
10 1993 0 0 0 0 XXX 0
11 1994 0 0 0 0 XXX 0
12 TOTAL 0 0 7 75 XXX 3,595
SCHEDULE P - PART 1M - INTERNATIONAL
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 835 1,406 72 0 0 0
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 0 0 0
10 1993 0 0 0 0 0 0
11 1994 0 0 0 0 0 0
12 TOTAL 835 1,406 72 0 0 0
SCHEDULE P - PART 1M - INTERNATIONAL
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 367 4,461 300 XXX
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 0 0 0 0 0 0
10 1993 0 0 0 0 0 0
11 1994 0 0 0 0 0 0
12 TOTAL 0 0 367 4,461 300 XXX
<PAGE> 36
SCHEDULE P - PART 1M - INTERNATIONAL
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1985 0 0 .000 .000 .000 0
03 1986 0 0 .000 .000 .000 0
04 1987 0 0 .000 .000 .000 0
05 1988 0 0 .000 .000 .000 0
06 1989 0 0 .000 .000 .000 0
07 1990 0 0 .000 .000 .000 0
08 1991 0 0 .000 .000 .000 0
09 1992 0 0 .000 .000 .000 0
10 1993 0 0 .000 .000 .000 0
11 1994 0 0 .000 .000 .000 0
12 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1M - INTERNATIONAL
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 4,094 367
02 1985 0 .000 0 0
03 1986 0 .000 0 0
04 1987 0 .000 0 0
05 1988 0 .000 0 0
06 1989 0 .000 0 0
07 1990 0 .000 0 0
08 1991 0 .000 0 0
09 1992 0 .000 0 0
10 1993 0 .000 0 0
11 1994 0 .000 0 0
12 TOTAL 0 XXX 4,094 367
SCHEDULE P - PART 1N - REINSURANCE A
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 61 2 59 0 0 0
07 1994 215 11 204 0 0 0
08 TOTAL XXX XXX XXX 0 0 0
<PAGE> 37
SCHEDULE P - PART 1N - REINSURANCE A
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 TOTAL 0 0 0 0 XXX 0
SCHEDULE P - PART 1N - REINSURANCE A
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 0 0 0 0 0 0
07 1994 0 0 0 0 0 0
08 TOTAL 0 0 0 0 0 0
SCHEDULE P - PART 1N - REINSURANCE A
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 TOTAL 0 0 0 0 XXX XXX
<PAGE> 38
SCHEDULE P - PART 1N - REINSURANCE A
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 1988 0 0 .000 .000 .000 0
02 1989 0 0 .000 .000 .000 0
03 1990 0 0 .000 .000 .000 0
04 1991 0 0 .000 .000 .000 0
05 1992 0 0 .000 .000 .000 0
06 1993 0 0 .000 .000 .000 0
07 1994 0 0 .000 .000 .000 0
08 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1N - REINSURANCE A
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 1988 0 .000 0 0
02 1989 0 .000 0 0
03 1990 0 .000 0 0
04 1991 0 .000 0 0
05 1992 0 .000 0 0
06 1993 0 .000 0 0
07 1994 0 .000 0 0
08 TOTAL 0 XXX 0 0
SCHEDULE P - PART 1O - REINSURANCE B
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 1988 1,990 0 1,990 0 0 0
02 1989 612 1,823 -1,211 0 0 0
03 1990 231 7 224 0 0 0
04 1991 -326 -8 -318 0 0 0
05 1992 134 0 134 0 0 0
06 1993 516 0 516 0 0 0
07 1994 0 0 0 0 0 0
08 TOTAL XXX XXX XXX 0 0 0
<PAGE> 39
SCHEDULE P - PART 1O - REINSURANCE B
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 TOTAL 0 0 0 0 XXX 0
SCHEDULE P - PART 1O - REINSURANCE B
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 0 0 0 0 0 0
07 1994 0 0 0 0 0 0
08 TOTAL 0 0 0 0 0 0
SCHEDULE P - PART 1O - REINSURANCE B
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 TOTAL 0 0 0 0 XXX XXX
<PAGE> 40
SCHEDULE P - PART 1O - REINSURANCE B
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 1988 0 0 .000 .000 .000 0
02 1989 0 0 .000 .000 .000 0
03 1990 0 0 .000 .000 .000 0
04 1991 0 0 .000 .000 .000 0
05 1992 0 0 .000 .000 .000 0
06 1993 0 0 .000 .000 .000 0
07 1994 0 0 .000 .000 .000 0
08 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1O - REINSURANCE B
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 1988 0 .000 0 0
02 1989 0 .000 0 0
03 1990 0 .000 0 0
04 1991 0 .000 0 0
05 1992 0 .000 0 0
06 1993 0 .000 0 0
07 1994 0 .000 0 0
08 TOTAL 0 XXX 0 0
SCHEDULE P - PART 1P - REINSURANCE C
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 0 0 0 0 0 0
07 1994 0 0 0 0 0 0
08 TOTAL XXX XXX XXX 0 0 0
<PAGE> 41
SCHEDULE P - PART 1P - REINSURANCE C
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 TOTAL 0 0 0 0 XXX 0
SCHEDULE P - PART 1P - REINSURANCE C
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 0 0 0 0 0 0
07 1994 0 0 0 0 0 0
08 TOTAL 0 0 0 0 0 0
SCHEDULE P - PART 1P - REINSURANCE C
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 TOTAL 0 0 0 0 XXX XXX
<PAGE> 42
SCHEDULE P - PART 1P - REINSURANCE C
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 1988 0 0 .000 .000 .000 0
02 1989 0 0 .000 .000 .000 0
03 1990 0 0 .000 .000 .000 0
04 1991 0 0 .000 .000 .000 0
05 1992 0 0 .000 .000 .000 0
06 1993 0 0 .000 .000 .000 0
07 1994 0 0 .000 .000 .000 0
08 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1P - REINSURANCE C
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 1988 0 .000 0 0
02 1989 0 .000 0 0
03 1990 0 .000 0 0
04 1991 0 .000 0 0
05 1992 0 .000 0 0
06 1993 0 .000 0 0
07 1994 0 .000 0 0
08 TOTAL 0 XXX 0 0
SCHEDULE P - PART 1Q - REINSURANCE D
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 232 0 10
02 1985 1,104 0 1,104 1,820 104 15
03 1986 1,995 0 1,995 1,797 224 13
04 1987 7,255 3,615 3,640 34,247 27,680 16,189
05 TOTAL XXX XXX XXX 38,096 28,008 16,227
<PAGE> 43
SCHEDULE P - PART 1Q - REINSURANCE D
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 11 253 XXX 2,267
02 1985 0 0 0 1,731 XXX 0
03 1986 0 0 0 1,586 XXX 296
04 1987 13,597 2,447 411 9,570 XXX 14,951
05 TOTAL 13,597 2,447 422 13,140 XXX 17,514
SCHEDULE P - PART 1Q - REINSURANCE D
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 732 0 31 0 17
02 1985 0 0 0 0 0 0
03 1986 0 1,498 0 0 0 0
04 1987 13,675 11,950 11,950 1,315 1,299 0
05 TOTAL 13,675 14,180 11,950 1,346 1,299 17
SCHEDULE P - PART 1Q - REINSURANCE D
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 67 3,114 XXX XXX
02 1985 0 0 0 0 XXX 1,835
03 1986 0 0 0 1,794 XXX 3,604
04 1987 0 0 0 1,292 XXX 79,063
05 TOTAL 0 0 67 6,200 XXX XXX
<PAGE> 44
SCHEDULE P - PART 1Q - REINSURANCE D
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1985 104 1,731 166.214 .000 156.793 0
03 1986 224 3,380 180.652 .000 169.424 0
04 1987 68,201 10,862 1,089.773 1,886.611 298.407 0
05 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1Q - REINSURANCE D
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 2,999 115
02 1985 0 .000 0 0
03 1986 0 .000 1,794 0
04 1987 0 .000 1,276 16
05 TOTAL 0 XXX 6,069 131
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 17,482 16,781 -105
02 1985 35,993 20,751 15,242 26,534 18,632 7,135
03 1986 113,264 52,166 61,098 35,039 21,348 7,127
04 1987 108,076 37,962 70,114 13,830 7,909 2,729
05 1988 63,564 26,786 36,778 14,135 11,669 3,542
06 1989 39,864 19,537 20,327 8,217 5,283 1,635
07 1990 33,232 16,590 16,642 3,809 3,263 1,039
08 1991 24,228 14,296 9,930 1,788 1,325 1,765
09 1992 11,502 2,383 9,119 1,198 499 335
10 1993 19,070 8,227 10,842 1,293 1,308 195
11 1994 13,551 5,013 8,538 272 157 45
12 TOTAL XXX XXX XXX 123,599 88,182 25,440
<PAGE> 45
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 2,363 3 -71 -1,843 XXX 37,604
02 1985 3,319 52 795 12,513 1,377 1,252
03 1986 2,588 107 1,733 19,963 1,108 4,293
04 1987 496 145 166 8,320 710 2,167
05 1988 924 123 -2,090 2,994 397 2,492
06 1989 939 237 481 4,111 468 1,284
07 1990 495 752 380 1,470 497 3,050
08 1991 1,045 1,719 953 2,128 533 211
09 1992 54 1,916 588 1,568 487 3,423
10 1993 145 1,542 243 279 490 487
11 1994 18 672 345 487 240 525
12 TOTAL 12,386 7,262 3,525 51,995 XXX 56,788
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 27,541 70,765 55,113 5,886 3,055 9,480
02 1985 386 7,000 3,696 618 243 716
03 1986 1,527 5,028 2,356 481 93 1,137
04 1987 19 2,480 1,205 253 20 648
05 1988 1,380 4,904 1,545 143 9 1,507
06 1989 710 4,501 1,204 99 53 1,338
07 1990 1,655 8,274 1,919 347 144 1,699
08 1991 58 7,414 2,276 151 91 1,470
09 1992 2,454 5,542 2,392 1,062 498 1,318
10 1993 201 7,284 3,628 230 33 1,867
11 1994 307 11,620 5,942 139 75 3,147
12 TOTAL 36,238 134,812 81,276 9,409 4,314 24,327
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 4,799 0 2,366 35,606 861 XXX
02 1985 242 0 422 5,442 133 44,544
03 1986 443 0 393 6,913 95 55,296
04 1987 327 7 156 4,133 76 22,402
05 1988 473 6 382 6,021 42 23,967
06 1989 436 94 247 5,065 27 17,975
07 1990 542 104 361 9,469 56 19,011
08 1991 695 257 135 6,261 42 14,239
09 1992 756 337 193 5,439 62 14,085
10 1993 1,025 461 366 5,355 62 12,364
11 1994 1,590 434 1,274 8,782 74 18,023
12 TOTAL 11,328 1,700 6,295 98,486 1,530 XXX
<PAGE> 46
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 50
02 1985 26,585 17,959 123.757 128.114 117.825 0
03 1986 28,415 26,881 48.820 54.470 43.996 0
04 1987 9,955 12,447 20.728 26.223 17.752 0
05 1988 14,949 9,018 37.705 55.809 24.520 0
06 1989 8,800 9,175 45.090 45.042 45.137 0
07 1990 8,080 10,931 57.206 48.704 65.683 0
08 1991 5,849 8,390 58.771 40.914 84.491 0
09 1992 7,071 7,014 122.456 296.726 76.916 0
10 1993 6,732 5,632 64.835 81.828 51.946 0
11 1994 8,747 9,276 133.001 174.486 108.643 0
12 TOTAL XXX XXX XXX XXX XXX 50
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 25,671 9,885
02 1985 0 .000 4,171 1,271
03 1986 0 .000 5,438 1,475
04 1987 0 .000 3,424 709
05 1988 0 .000 4,471 1,501
06 1989 0 .000 3,871 1,244
07 1990 0 .000 7,747 1,722
08 1991 0 .000 5,291 970
09 1992 0 .000 4,127 1,312
10 1993 0 .000 3,942 1,411
11 1994 0 .000 5,895 2,887
12 TOTAL 0 XXX 74,062 24,380
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 0 0 0
02 1985 814 589 225 0 0 0
03 1986 6,129 2,629 3,500 5 1 4
04 1987 14,442 3,545 10,897 2,045 258 1,679
05 1988 13,132 3,126 10,006 1,183 121 664
06 1989 10,083 2,163 7,927 1,274 379 586
07 1990 7,977 1,480 6,497 3,647 1,486 755
08 1991 9,569 2,043 7,526 943 670 222
09 1992 7,471 3,221 4,250 842 332 617
10 1993 3,863 2,707 1,156 88 9 131
11 1994 4,823 2,970 1,853 124 124 94
12 TOTAL XXX XXX XXX 10,158 3,378 4,750
<PAGE> 47
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 0 0 XXX 0
02 1985 0 0 0 0 0 0
03 1986 1 0 0 7 13 0
04 1987 62 0 275 3,678 135 906
05 1988 84 0 95 1,737 124 24
06 1989 17 0 166 1,628 177 0
07 1990 237 0 329 3,008 88 50
08 1991 136 0 110 469 388 546
09 1992 285 0 21 865 88 1,350
10 1993 5 0 74 279 75 999
11 1994 92 0 221 223 64 375
12 TOTAL 928 0 1,299 11,901 XXX 4,250
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 504 0 0 223 123 0
05 1988 9 0 0 9 4 0
06 1989 0 10 3 0 0 2
07 1990 50 33 8 4 4 8
08 1991 165 370 50 87 41 60
09 1992 778 129 40 52 1 30
10 1993 10 291 100 97 2 47
11 1994 127 922 384 85 28 94
12 TOTAL 1,643 1,755 585 557 203 241
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 XXX
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 9
04 1987 0 0 26 536 3 5,174
05 1988 0 0 1 21 2 1,974
06 1989 1 0 0 8 2 2,038
07 1990 2 0 2 33 1 4,828
08 1991 5 0 26 828 20 2,372
09 1992 11 0 59 789 8 3,101
10 1993 24 0 23 1,322 16 1,760
11 1994 64 0 61 934 30 1,996
12 TOTAL 107 0 198 4,471 82 XXX
<PAGE> 48
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1985 0 0 .000 .000 .000 0
03 1986 2 7 .146 .076 .200 0
04 1987 967 4,207 35.826 27.278 38.607 0
05 1988 218 1,756 15.031 6.973 17.549 0
06 1989 401 1,637 20.212 18.539 20.651 0
07 1990 1,787 3,041 60.524 120.743 46.806 0
08 1991 1,073 1,299 24.788 52.520 17.260 0
09 1992 1,447 1,654 41.507 44.924 38.918 0
10 1993 152 1,608 45.560 5.615 139.100 0
11 1994 838 1,158 41.385 28.215 62.493 0
12 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 0 0
02 1985 0 .000 0 0
03 1986 0 .000 0 0
04 1987 0 .000 403 126
05 1988 0 .000 14 5
06 1989 0 .000 7 2
07 1990 0 .000 25 8
08 1991 0 .000 702 127
09 1992 0 .000 653 129
10 1993 0 .000 1,181 141
11 1994 0 .000 786 148
12 TOTAL 0 XXX 3,771 692
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
(000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 0 0 0
02 1993 0 0 0 0 0 0
03 1994 0 0 0 0 0 0
04 TOTAL XXX XXX XXX 0 0 0
<PAGE> 49
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 0 0 XXX 0
02 1993 0 0 0 0 XXX 0
03 1994 0 0 0 0 XXX 0
04 TOTAL 0 0 0 0 XXX 0
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 0
02 1993 0 0 0 0 0 0
03 1994 0 0 0 0 0 0
04 TOTAL 0 0 0 0 0 0
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 XXX
02 1993 0 0 0 0 0 0
03 1994 0 0 0 0 0 0
04 TOTAL 0 0 0 0 0 XXX
<PAGE> 50
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1993 0 0 .000 .000 .000 0
03 1994 0 0 .000 .000 .000 0
04 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 0 0
02 1993 0 .000 0 0
03 1994 0 .000 0 0
04 TOTAL 0 XXX 0 0
SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 15,867 18,097 19,022 18,398 18,611 19,645
02 1985 75,268 73,229 74,512 74,449 75,017 75,132
03 1986 XXX 55,180 53,748 53,362 52,185 52,093
04 1987 XXX XXX 40,595 42,420 41,320 41,546
05 1988 XXX XXX XXX 40,465 44,334 44,728
06 1989 XXX XXX XXX XXX 57,862 62,009
07 1990 XXX XXX XXX XXX XXX 51,815
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
<PAGE> 51
SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 19,282 19,063 18,875 18,762 -114 -294
02 1985 75,116 74,787 74,808 74,822 14 35
03 1986 52,167 51,848 51,893 51,967 75 121
04 1987 41,740 41,297 41,165 41,081 -84 -216
05 1988 45,019 44,482 44,590 44,692 102 202
06 1989 61,867 61,173 61,171 61,405 233 232
07 1990 57,281 54,705 55,390 55,809 411 1,102
08 1991 59,715 61,866 63,053 64,025 972 2,159
09 1992 XXX 53,304 52,280 52,889 608 -415
10 1993 XXX XXX 56,932 55,215 -1,717 XXX
11 1994 XXX XXX XXX 61,133 XXX XXX
12 TOTAL 510 2,927
SCHEDULE P - PART 2B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 54,747 61,058 66,789 69,444 69,656 69,896
02 1985 147,309 151,193 154,967 158,142 159,511 158,535
03 1986 XXX 141,719 138,109 132,741 129,760 129,296
04 1987 XXX XXX 112,119 104,001 102,789 103,468
05 1988 XXX XXX XXX 113,416 107,302 108,531
06 1989 XXX XXX XXX XXX 125,171 120,343
07 1990 XXX XXX XXX XXX XXX 147,262
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 70,057 69,186 71,115 71,360 244 2,173
02 1985 158,236 157,922 157,907 157,921 13 -1
03 1986 130,086 129,458 128,123 128,673 550 -785
04 1987 102,205 101,458 101,961 102,061 100 603
05 1988 106,695 106,458 107,402 106,943 -459 485
06 1989 114,748 116,450 118,294 118,962 669 2,507
07 1990 144,975 144,549 146,029 147,664 1,643 3,116
08 1991 96,513 96,886 92,694 91,047 -1,648 -5,847
09 1992 XXX 123,754 112,473 110,544 -1,929 -13,217
10 1993 XXX XXX 116,974 119,343 2,376 XXX
11 1994 XXX XXX XXX 135,279 XXX XXX
12 TOTAL 1,545 -10,951
<PAGE> 52
SCHEDULE P - PART 2C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 97,753 121,136 126,446 140,508 140,311 141,227
02 1985 104,903 96,883 97,236 103,087 104,809 105,284
03 1986 XXX 105,164 105,670 100,336 98,666 98,247
04 1987 XXX XXX 98,554 96,446 95,535 97,952
05 1988 XXX XXX XXX 95,919 96,840 101,268
06 1989 XXX XXX XXX XXX 106,540 112,581
07 1990 XXX XXX XXX XXX XXX 97,760
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 140,308 138,522 135,287 134,421 -859 -4,094
02 1985 105,065 104,292 104,114 104,027 -87 -265
03 1986 96,935 96,418 95,817 96,207 397 -210
04 1987 94,309 94,098 92,405 91,970 -434 -2,126
05 1988 99,097 102,966 101,559 100,807 -759 -2,160
06 1989 104,042 113,265 114,302 111,007 -3,302 -2,265
07 1990 90,188 101,701 97,378 99,348 1,970 -2,353
08 1991 81,753 79,412 85,046 81,901 -3,146 2,488
09 1992 XXX 71,561 80,766 82,506 1,739 10,944
10 1993 XXX XXX 95,283 90,257 -5,026 XXX
11 1994 XXX XXX XXX 86,747 XXX XXX
12 TOTAL -9,506 -47
SCHEDULE P - PART 2D - WORKERS' COMPENSATION
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 262,721 305,632 324,173 347,981 361,137 363,352
02 1985 182,078 212,875 226,627 235,385 237,374 237,668
03 1986 XXX 166,728 169,048 173,142 173,103 174,601
04 1987 XXX XXX 132,984 148,475 151,317 156,839
05 1988 XXX XXX XXX 196,390 208,653 209,494
06 1989 XXX XXX XXX XXX 140,851 159,822
07 1990 XXX XXX XXX XXX XXX 142,346
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
<PAGE> 53
SCHEDULE P - PART 2D - WORKERS' COMPENSATION
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 368,782 375,354 382,291 384,954 2,670 9,599
02 1985 237,988 231,107 231,342 228,813 -2,529 -2,294
03 1986 177,736 176,215 170,441 169,540 -901 -6,675
04 1987 159,869 162,479 156,145 154,317 -1,828 -8,162
05 1988 216,127 218,608 214,325 203,606 -10,719 -14,995
06 1989 165,859 169,452 166,834 165,748 -1,092 -3,710
07 1990 152,210 151,640 147,641 143,776 -3,864 -7,862
08 1991 115,502 134,914 126,373 121,547 -4,826 -13,360
09 1992 XXX 101,474 105,111 99,128 -5,983 -2,339
10 1993 XXX XXX 74,235 72,993 -1,236 XXX
11 1994 XXX XXX XXX 84,526 XXX XXX
12 TOTAL -30,300 -49,797
SCHEDULE P - PART 2E - COMMERICAL MULTIPLE PERIL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 122,293 155,185 176,106 189,711 198,595 198,343
02 1985 154,450 138,049 147,720 152,886 161,817 156,960
03 1986 XXX 118,705 102,761 92,242 91,215 88,952
04 1987 XXX XXX 112,925 98,809 94,736 93,109
05 1988 XXX XXX XXX 127,648 113,098 112,456
06 1989 XXX XXX XXX XXX 128,411 125,324
07 1990 XXX XXX XXX XXX XXX 155,371
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2E - COMMERICAL MULTIPLE PERIL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 201,782 204,729 207,939 217,641 9,702 12,906
02 1985 157,088 156,514 156,671 157,027 349 513
03 1986 87,062 87,015 85,898 88,007 2,108 992
04 1987 96,574 97,854 95,415 94,155 -1,260 -3,698
05 1988 116,128 116,443 119,940 116,497 -3,437 54
06 1989 118,908 121,606 121,295 120,567 -727 -1,038
07 1990 143,015 143,270 142,966 142,475 -484 -795
08 1991 162,856 145,588 142,906 146,982 4,076 1,387
09 1992 XXX 160,642 138,997 140,812 1,814 -19,829
10 1993 XXX XXX 115,044 110,619 -4,426 XXX
11 1994 XXX XXX XXX 126,947 XXX XXX
12 TOTAL 7,711 -9,510
<PAGE> 54
SCHEDULE P - PART 2F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 1,489 1,627 1,822 2,118 2,150 2,177
02 1985 21 22 24 35 1 1
03 1986 XXX 7 6 6 0 0
04 1987 XXX XXX 12 0 1 1
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 2,159 2,253 2,226 4,132 1,905 1,878
02 1985 1 1 1 1 0 0
03 1986 0 0 0 0 0 0
04 1987 1 1 1 -13 -13 -13
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 -1 -1 -1
08 1991 0 0 0 0 0 0
09 1992 XXX 0 -1 -1 0 -1
10 1993 XXX XXX 0 0 0 XXX
11 1994 XXX XXX XXX 0 XXX XXX
12 TOTAL 1,891 1,863
SCHEDULE P - PART 2F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
<PAGE> 55
SCHEDULE P - PART 2F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 XXX 0 0 0 0 0
10 1993 XXX XXX 0 0 0 XXX
11 1994 XXX XXX XXX 467 XXX XXX
12 TOTAL 0 0
SCHEDULE P - PART 2G - SPECIAL LIABILITY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 11,579 12,375 12,207 11,368 12,095 12,578
02 1985 9,622 9,795 9,835 9,938 9,807 9,729
03 1986 XXX 9,160 10,190 9,588 8,999 9,121
04 1987 XXX XXX 8,544 10,081 9,963 9,570
05 1988 XXX XXX XXX 8,957 9,755 11,097
06 1989 XXX XXX XXX XXX 10,123 11,734
07 1990 XXX XXX XXX XXX XXX 12,059
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2G - SPECIAL LIABILITY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 11,894 11,575 11,355 11,249 -107 -327
02 1985 9,769 9,680 9,781 9,593 -190 -88
03 1986 8,976 8,935 9,043 8,988 -55 53
04 1987 9,815 9,593 9,757 9,653 -104 59
05 1988 11,247 11,001 11,306 11,309 3 308
06 1989 12,243 12,328 12,774 13,078 297 750
07 1990 16,720 17,029 17,867 18,012 144 983
08 1991 14,655 19,393 19,122 19,261 141 -132
09 1992 XXX 21,453 27,308 27,096 -212 5,643
10 1993 XXX XXX 26,967 31,754 4,787 XXX
11 1994 XXX XXX XXX 34,208 XXX XXX
12 TOTAL 4,706 7,250
<PAGE> 56
SCHEDULE P - PART 2H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 184,547 220,454 222,758 243,880 281,061 320,018
02 1985 80,814 89,890 84,361 77,591 87,334 88,727
03 1986 XXX 193,279 172,744 171,414 128,094 124,410
04 1987 XXX XXX 163,498 148,117 135,486 122,304
05 1988 XXX XXX XXX 103,556 115,913 115,632
06 1989 XXX XXX XXX XXX 77,884 82,225
07 1990 XXX XXX XXX XXX XXX 78,898
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 319,931 369,481 409,578 480,977 71,418 111,500
02 1985 82,566 88,617 92,694 95,875 3,181 7,259
03 1986 109,531 102,047 94,844 96,133 1,289 -5,908
04 1987 105,285 100,526 88,015 86,597 -1,425 -13,928
05 1988 108,454 116,774 112,005 99,078 -12,927 -17,688
06 1989 77,219 77,245 72,807 65,546 -7,260 -11,699
07 1990 83,250 76,878 81,138 64,946 -16,192 -11,932
08 1991 98,602 91,112 99,587 77,734 -21,860 -13,379
09 1992 XXX 76,583 92,564 82,156 -10,414 5,573
10 1993 XXX XXX 95,960 90,496 -5,464 XXX
11 1994 XXX XXX XXX 91,935 XXX XXX
12 TOTAL 376 49,825
SCHEDULE P - PART 2H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 1,911 1,015 660 141 306 241
03 1986 XXX 10,441 7,154 6,777 4,409 3,323
04 1987 XXX XXX 38,067 41,765 29,596 18,316
05 1988 XXX XXX XXX 46,121 33,159 31,539
06 1989 XXX XXX XXX XXX 38,939 33,781
07 1990 XXX XXX XXX XXX XXX 54,594
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
<PAGE> 57
SCHEDULE P - PART 2H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 166 141 103 103 0 -38
03 1986 2,204 1,766 1,494 1,496 2 -270
04 1987 13,441 10,860 9,288 8,178 -1,110 -2,682
05 1988 28,778 9,476 8,080 7,218 -863 -2,259
06 1989 34,685 30,466 23,537 15,678 -7,859 -14,779
07 1990 50,313 54,907 56,358 49,326 -7,032 -5,588
08 1991 47,267 46,879 44,143 21,752 -22,390 -25,120
09 1992 XXX 56,648 51,749 50,690 -1,060 -5,959
10 1993 XXX XXX 68,578 68,999 421 XXX
11 1994 XXX XXX XXX 90,048 XXX XXX
12 TOTAL -39,890 -56,703
SCHEDULE P - PART 2I - SPECIAL PROPERTY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
04 TOTAL
SCHEDULE P - PART 2I - SPECIAL PROPERTY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 50,798 44,692 46,360 1,668 -4,438
02 1993 XXX XXX 98,250 96,887 -1,363 XXX
03 1994 XXX XXX XXX 150,170 XXX XXX
04 TOTAL 304 -4,438
<PAGE> 58
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
04 TOTAL
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 10,757 8,748 10,231 1,482 -533
02 1993 XXX XXX 60,973 61,652 679 XXX
03 1994 XXX XXX XXX 70,706 XXX XXX
04 TOTAL 2,161 -533
SCHEDULE P - PART 2K - FIDELITY, SURETY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
04 TOTAL
<PAGE> 59
SCHEDULE P - PART 2K - FIDELITY, SURETY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 1,809 6,911 12,110 5,199 10,302
02 1993 XXX XXX 8,233 7,845 -388 XXX
03 1994 XXX XXX XXX 7,300 XXX XXX
04 TOTAL 4,811 10,302
SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
04 TOTAL
SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 1 -217 -238 -22 -239
02 1993 XXX XXX 2,254 2,530 269 XXX
03 1994 XXX XXX XXX 2,244 XXX XXX
04 TOTAL 247 -239
<PAGE> 60
SCHEDULE P - PART 2M - INTERNATIONAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 2,293 2,335 2,498 3,017 3,404 3,522
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2M - INTERNATIONAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 3,727 4,842 5,665 4,162 -1,503 -680
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 XXX 0 0 0 0 0
10 1993 XXX XXX 0 0 0 XXX
11 1994 XXX XXX XXX 0 XXX XXX
12 TOTAL -1,503 -680
SCHEDULE P - PART 2N - REINSURANCE A
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 TOTAL
<PAGE> 61
SCHEDULE P - PART 2N - REINSURANCE A
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 XXX 0 0 0 0 0
06 1993 XXX XXX 0 0 0 XXX
07 1994 XXX XXX XXX 0 XXX XXX
08 TOTAL 0 0
SCHEDULE P - PART 2O - REINSURANCE B
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 TOTAL
SCHEDULE P - PART 2O - REINSURANCE B
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 XXX 0 0 0 0 0
06 1993 XXX XXX 0 0 0 XXX
07 1994 XXX XXX XXX 0 XXX XXX
08 TOTAL 0 0
<PAGE> 62
SCHEDULE P - PART 2P - REINSURANCE C
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 TOTAL
SCHEDULE P - PART 2P - REINSURANCE C
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 XXX 0 0 0 0 0
06 1993 XXX XXX 0 0 0 XXX
07 1994 XXX XXX XXX 0 XXX XXX
08 TOTAL 0 0
SCHEDULE P - PART 2Q - REINSURANCE D
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 473 459 1,131 1,172 1,690 2,411
02 1985 1,050 1,049 1,198 1,737 2,123 2,154
03 1986 XXX 1,896 1,791 2,629 2,822 2,930
04 1987 XXX XXX 6,560 10,174 10,460 10,521
05 TOTAL
<PAGE> 63
SCHEDULE P - PART 2Q - REINSURANCE D
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 2,833 3,486 3,556 4,196 640 710
02 1985 2,023 2,210 2,065 1,730 -335 -480
03 1986 2,880 2,779 3,378 3,378 0 599
04 1987 10,452 10,453 10,453 10,451 -2 -2
05 TOTAL 303 827
SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 21,020 24,835 28,537 36,982 35,830 33,284
02 1985 10,850 11,449 12,574 13,518 14,769 12,106
03 1986 XXX 46,602 45,032 43,208 38,709 29,606
04 1987 XXX XXX 39,907 36,240 35,765 26,565
05 1988 XXX XXX XXX 27,173 17,153 20,887
06 1989 XXX XXX XXX XXX 13,522 10,585
07 1990 XXX XXX XXX XXX XXX 10,761
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 40,111 42,448 54,554 62,357 7,803 19,915
02 1985 13,421 13,118 13,368 16,741 3,373 3,616
03 1986 27,200 25,310 23,758 24,755 998 -553
04 1987 17,751 12,273 11,468 12,125 655 -149
05 1988 20,622 8,955 10,189 10,726 538 1,771
06 1989 12,367 8,682 10,361 8,448 -1,913 -234
07 1990 13,868 11,288 13,375 10,192 -3,183 -1,096
08 1991 8,390 6,221 9,424 7,300 -2,123 1,079
09 1992 XXX 3,117 6,747 6,225 -515 3,108
10 1993 XXX XXX 4,242 5,016 781 XXX
11 1994 XXX XXX XXX 7,659 XXX XXX
12 TOTAL 6,415 27,458
<PAGE> 64
SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 117 145 102 111 21 13
03 1986 XXX 2,528 2,161 1,609 1,281 788
04 1987 XXX XXX 10,677 7,794 10,524 10,663
05 1988 XXX XXX XXX 6,162 8,022 8,587
06 1989 XXX XXX XXX XXX 6,118 5,609
07 1990 XXX XXX XXX XXX XXX 4,194
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 5 3 0 0 0 -3
03 1986 365 203 7 7 0 -196
04 1987 10,108 8,510 4,028 3,905 -123 -4,604
05 1988 7,992 7,636 2,721 1,654 -1,067 -5,975
06 1989 5,669 5,539 2,562 1,463 -1,090 -4,074
07 1990 3,990 4,190 3,314 2,709 -605 -1,481
08 1991 5,012 5,529 1,853 1,162 -689 -4,367
09 1992 XXX 3,452 2,471 1,573 -904 -1,879
10 1993 XXX XXX 1,905 1,504 -393 XXX
11 1994 XXX XXX XXX 876 XXX XXX
12 TOTAL -4,872 -22,581
SCHEDULE P - PART 2S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
04 TOTAL
<PAGE> 65
SCHEDULE P - PART 2S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 0 0 0 0 0
02 1993 XXX XXX 0 0 0 XXX
03 1994 XXX XXX XXX 0 XXX XXX
04 TOTAL 0 0
SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 6,921 10,510 13,309 14,880 16,081
02 1985 50,439 66,668 70,370 73,057 74,116 74,442
03 1986 XXX 34,602 46,881 49,439 50,820 51,336
04 1987 XXX XXX 25,633 36,694 39,173 40,522
05 1988 XXX XXX XXX 27,919 40,313 42,722
06 1989 XXX XXX XXX XXX 40,467 56,104
07 1990 XXX XXX XXX XXX XXX 35,264
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 16,644 17,127 17,199 17,234 386 57
02 1985 74,865 74,640 74,735 74,767 43,373 629
03 1986 51,566 51,721 51,829 51,956 29,872 472
04 1987 41,004 41,101 41,043 41,024 21,379 301
05 1988 43,517 43,989 44,302 44,432 20,198 319
06 1989 58,397 59,563 60,236 61,175 28,053 524
07 1990 51,194 53,133 54,398 55,447 22,592 456
08 1991 41,867 56,862 61,522 62,955 25,979 510
09 1992 XXX 33,297 47,791 50,502 20,073 424
10 1993 XXX XXX 38,614 51,150 20,099 2,069
11 1994 XXX XXX XXX 43,125 20,616 4,313
<PAGE> 66
SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 35,908 52,370 60,295 63,480 65,687
02 1985 58,002 113,366 138,211 148,473 154,904 157,255
03 1986 XXX 51,792 99,252 114,779 122,944 126,805
04 1987 XXX XXX 38,885 75,105 88,905 97,093
05 1988 XXX XXX XXX 40,440 77,364 95,336
06 1989 XXX XXX XXX XXX 43,192 92,435
07 1990 XXX XXX XXX XXX XXX 83,750
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 66,102 66,477 66,443 67,160 2,856 1,058
02 1985 157,574 157,744 157,836 157,870 54,358 19,005
03 1986 127,637 128,119 128,685 129,142 40,714 19,541
04 1987 99,765 100,774 101,410 101,656 33,774 19,572
05 1988 101,687 104,679 106,157 106,843 33,922 8,615
06 1989 104,211 111,159 115,580 117,621 38,625 10,029
07 1990 110,885 125,906 134,051 140,342 40,979 12,252
08 1991 28,672 57,808 76,964 85,676 31,383 5,712
09 1992 XXX 33,170 72,434 92,137 31,433 5,409
10 1993 XXX XXX 38,275 79,236 33,532 8,098
11 1994 XXX XXX XXX 48,897 30,862 11,338
SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 61,280 91,093 108,843 119,371 122,825
02 1985 20,141 52,297 71,539 83,267 95,532 101,085
03 1986 XXX 16,158 43,861 61,554 78,428 87,203
04 1987 XXX XXX 15,017 40,859 60,389 76,438
05 1988 XXX XXX XXX 16,988 44,620 66,685
06 1989 XXX XXX XXX XXX 21,040 49,807
07 1990 XXX XXX XXX XXX XXX 16,622
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 67
SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 124,107 124,818 125,070 124,159 100,139 63,437
02 1985 102,933 103,495 103,659 103,658 24,723 5,405
03 1986 91,544 92,874 93,901 94,347 16,504 3,766
04 1987 83,200 88,362 90,141 90,976 15,804 3,619
05 1988 80,155 92,268 96,704 98,960 16,457 4,189
06 1989 75,919 90,958 101,975 106,212 15,986 4,448
07 1990 43,142 68,197 82,804 88,245 14,027 3,647
08 1991 14,968 37,916 50,284 58,793 11,862 3,178
09 1992 XXX 12,500 32,033 46,768 11,116 3,346
10 1993 XXX XXX 13,373 31,868 12,482 5,026
11 1994 XXX XXX XXX 15,787 9,994 4,586
SCHEDULE P - PART 3D - WORKERS' COMPENSATION
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 -6,294 81,902 139,871 185,206 214,990
02 1985 46,509 100,918 139,716 167,694 186,078 197,478
03 1986 XXX 33,621 80,120 111,074 130,152 141,682
04 1987 XXX XXX 27,524 74,064 101,778 117,903
05 1988 XXX XXX XXX 32,982 83,576 115,373
06 1989 XXX XXX XXX XXX 29,200 75,078
07 1990 XXX XXX XXX XXX XXX 28,733
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 68
SCHEDULE P - PART 3D - WORKERS' COMPENSATION
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 242,123 259,238 269,514 283,859 212,921 27,121
02 1985 206,497 211,494 214,652 217,214 68,334 4,122
03 1986 149,892 154,177 157,031 159,169 46,102 2,699
04 1987 128,790 135,530 139,943 142,665 40,906 2,969
05 1988 133,924 144,644 150,326 161,794 41,434 2,234
06 1989 106,275 123,247 132,965 139,362 31,475 955
07 1990 73,670 99,643 112,998 120,540 27,126 783
08 1991 23,237 58,913 79,877 90,890 22,064 765
09 1992 XXX 18,460 47,927 65,247 19,901 596
10 1993 XXX XXX 12,174 31,362 15,184 401
11 1994 XXX XXX XXX 10,821 10,235 384
SCHEDULE P - PART 3E - COMMERICAL MULTIPLE PERIL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 55,654 98,786 132,300 161,696 181,128
02 1985 47,540 82,675 103,775 116,845 129,566 139,802
03 1986 XXX 20,742 38,482 49,596 61,798 70,448
04 1987 XXX XXX 23,354 46,705 59,012 69,554
05 1988 XXX XXX XXX 29,671 57,416 69,755
06 1989 XXX XXX XXX XXX 30,117 62,076
07 1990 XXX XXX XXX XXX XXX 38,153
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3E - COMMERICAL MULTIPLE PERIL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 191,174 196,490 198,930 202,679 3,371 224
02 1985 145,534 148,763 150,891 153,108 21,720 2,770
03 1986 76,289 80,181 82,195 84,660 12,751 2,028
04 1987 78,852 86,374 89,327 91,741 11,572 1,821
05 1988 83,124 90,106 100,913 109,565 12,671 2,127
06 1989 79,167 89,731 99,518 108,486 14,339 2,195
07 1990 71,907 92,158 104,897 117,422 14,119 2,521
08 1991 47,163 83,700 100,648 113,968 13,309 2,516
09 1992 XXX 44,118 82,138 97,021 11,262 2,762
10 1993 XXX XXX 33,199 55,174 10,169 2,761
11 1994 XXX XXX XXX 46,653 8,431 1,700
<PAGE> 69
SCHEDULE P - PART 3F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 6 57 87 135 177
02 1985 0 0 0 0 1 1
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 1 1
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 177 176 178 380 0 0
02 1985 1 1 1 1 0 1
03 1986 0 0 0 0 0 0
04 1987 1 1 1 -13 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 -1 0 0
08 1991 0 0 0 0 0 0
09 1992 XXX 0 -1 -1 0 0
10 1993 XXX XXX 0 0 0 0
11 1994 XXX XXX XXX 0 0 0
SCHEDULE P - PART 3F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 70
SCHEDULE P - PART 3F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 0 0 0 0 0 0
04 1987 0 0 0 0 0 0
05 1988 0 0 0 0 0 0
06 1989 0 0 0 0 0 0
07 1990 0 0 0 0 0 0
08 1991 0 0 0 0 0 0
09 1992 XXX 0 0 0 0 0
10 1993 XXX XXX 0 0 0 0
11 1994 XXX XXX XXX 9 0 0
SCHEDULE P - PART 3G - SPECIAL LIABILITY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 3,771 5,581 6,291 7,486 8,262
02 1985 3,693 7,175 8,229 8,639 8,869 8,955
03 1986 XXX 3,613 7,732 8,206 8,518 8,709
04 1987 XXX XXX 3,913 7,735 8,736 9,106
05 1988 XXX XXX XXX 3,491 8,225 9,524
06 1989 XXX XXX XXX XXX 4,024 10,791
07 1990 XXX XXX XXX XXX XXX 5,610
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3G - SPECIAL LIABILITY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 8,339 8,491 8,406 8,839 XXX XXX
02 1985 8,983 9,024 9,124 9,163 XXX XXX
03 1986 8,727 8,805 8,897 8,843 XXX XXX
04 1987 9,533 9,476 9,580 9,500 XXX XXX
05 1988 9,896 10,216 10,341 10,915 XXX XXX
06 1989 11,089 11,766 12,147 12,305 XXX XXX
07 1990 13,775 15,369 16,770 17,405 XXX XXX
08 1991 7,593 16,284 17,630 18,237 XXX XXX
09 1992 XXX 13,463 23,401 24,679 XXX XXX
10 1993 XXX XXX 17,720 27,383 XXX XXX
11 1994 XXX XXX XXX 13,467 XXX XXX
<PAGE> 71
SCHEDULE P - PART 3H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 54,612 93,896 124,123 148,398 191,268
02 1985 3,821 12,542 25,868 39,366 51,974 62,727
03 1986 XXX 3,519 14,769 32,008 48,902 61,597
04 1987 XXX XXX 3,675 15,093 35,198 47,992
05 1988 XXX XXX XXX 1,736 17,060 27,804
06 1989 XXX XXX XXX XXX 1,165 8,678
07 1990 XXX XXX XXX XXX XXX 1,121
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 219,213 244,859 279,623 314,133 2,738 3,616
02 1985 65,478 74,366 80,601 82,661 7,951 4,868
03 1986 69,972 76,633 80,807 84,707 6,760 4,555
04 1987 54,656 63,963 73,893 77,808 5,565 3,018
05 1988 40,636 60,092 66,967 75,217 4,543 2,101
06 1989 11,417 26,524 37,383 42,273 3,692 1,646
07 1990 4,013 16,591 26,595 32,300 3,159 1,567
08 1991 -4,800 11,305 21,572 33,568 2,991 1,429
09 1992 XXX 5,172 11,868 24,062 4,080 1,381
10 1993 XXX XXX 3,241 9,960 2,916 1,295
11 1994 XXX XXX XXX 512 1,534 1,117
SCHEDULE P - PART 3H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 4 31 35 59 89 102
03 1986 XXX 88 323 720 1,280 1,342
04 1987 XXX XXX 189 3,460 3,630 5,595
05 1988 XXX XXX XXX 1,598 2,228 2,993
06 1989 XXX XXX XXX XXX 728 2,497
07 1990 XXX XXX XXX XXX XXX 521
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 72
SCHEDULE P - PART 3H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 0 0 0 0 0 0
02 1985 102 102 103 103 12 19
03 1986 1,408 1,426 1,431 1,444 42 61
04 1987 6,734 6,583 7,817 7,880 249 208
05 1988 3,717 5,669 6,604 7,030 140 152
06 1989 5,667 7,681 9,727 12,389 113 161
07 1990 5,681 18,452 21,607 31,769 86 209
08 1991 1,827 3,095 5,488 6,412 105 274
09 1992 XXX 785 9,817 15,933 64 214
10 1993 XXX XXX 159 5,010 63 238
11 1994 XXX XXX XXX 3,414 38 34
SCHEDULE P - PART 3I - SPECIAL PROPERTY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3I - SPECIAL PROPERTY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 24,964 38,711 XXX XXX
02 1993 XXX XXX 62,235 85,833 XXX XXX
03 1994 XXX XXX XXX 93,049 XXX XXX
<PAGE> 73
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 7,451 7,410 59,142 18,362
02 1993 XXX XXX 54,800 60,457 42,480 5,645
03 1994 XXX XXX XXX 62,797 48,138 8,570
SCHEDULE P - PART 3K - FIDELITY, SURETY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 74
SCHEDULE P - PART 3K - FIDELITY, SURETY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 4,840 6,996 XXX XXX
02 1993 XXX XXX 6,959 10,106 XXX XXX
03 1994 XXX XXX XXX 1,671 XXX XXX
SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 -416 -491 XXX XXX
02 1993 XXX XXX 199 927 XXX XXX
03 1994 XXX XXX XXX 65 XXX XXX
<PAGE> 75
SCHEDULE P - PART 3M - INTERNATIONAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 798 865 1,257 1,680 1,680
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3M - INTERNATIONAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 1,835 2,186 2,301 68 XXX XXX
02 1985 0 0 0 0 XXX XXX
03 1986 0 0 0 0 XXX XXX
04 1987 0 0 0 0 XXX XXX
05 1988 0 0 0 0 XXX XXX
06 1989 0 0 0 0 XXX XXX
07 1990 0 0 0 0 XXX XXX
08 1991 0 0 0 0 XXX XXX
09 1992 XXX 0 0 0 XXX XXX
10 1993 XXX XXX 0 0 XXX XXX
11 1994 XXX XXX XXX 0 XXX XXX
SCHEDULE P - PART 3N - REINSURANCE A
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 76
SCHEDULE P - PART 3N - REINSURANCE A
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 1988 0 0 0 0 XXX XXX
02 1989 0 0 0 0 XXX XXX
03 1990 0 0 0 0 XXX XXX
04 1991 0 0 0 0 XXX XXX
05 1992 XXX 0 0 0 XXX XXX
06 1993 XXX XXX 0 0 XXX XXX
07 1994 XXX XXX XXX 0 XXX XXX
SCHEDULE P - PART 3O - REINSURANCE B
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3O - REINSURANCE B
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 1988 0 0 0 0 XXX XXX
02 1989 0 0 0 0 XXX XXX
03 1990 0 0 0 0 XXX XXX
04 1991 0 0 0 0 XXX XXX
05 1992 XXX 0 0 0 XXX XXX
06 1993 XXX XXX 0 0 XXX XXX
07 1994 XXX XXX XXX 0 XXX XXX
<PAGE> 77
SCHEDULE P - PART 3P - REINSURANCE C
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3P - REINSURANCE C
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 1988 0 0 0 0 XXX XXX
02 1989 0 0 0 0 XXX XXX
03 1990 0 0 0 0 XXX XXX
04 1991 0 0 0 0 XXX XXX
05 1992 XXX 0 0 0 XXX XXX
06 1993 XXX XXX 0 0 XXX XXX
07 1994 XXX XXX XXX 0 XXX XXX
SCHEDULE P - PART 3Q - REINSURANCE D
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 57 100 116 -948 -426
02 1985 0 185 457 623 807 1,122
03 1986 XXX 0 288 437 629 710
04 1987 XXX XXX -127 3,519 10,460 9,591
<PAGE> 78
SCHEDULE P - PART 3Q - REINSURANCE D
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR -30 447 1,034 1,276 XXX XXX
02 1985 1,103 1,732 1,731 1,731 XXX XXX
03 1986 731 1,480 1,481 1,586 XXX XXX
04 1987 10,390 8,386 9,318 9,160 XXX XXX
SCHEDULE P - PART 3R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 6,983 13,103 17,236 19,108 22,788
02 1985 138 236 1,519 3,014 3,673 6,736
03 1986 XXX 201 1,028 3,178 6,207 10,434
04 1987 XXX XXX 199 908 2,103 2,640
05 1988 XXX XXX XXX 1,243 1,462 2,799
06 1989 XXX XXX XXX XXX 50 730
07 1990 XXX XXX XXX XXX XXX 314
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 25,379 28,883 30,891 29,125 173 535
02 1985 9,169 10,336 11,084 11,714 456 788
03 1986 13,870 15,703 17,891 18,235 384 629
04 1987 4,537 4,488 6,199 8,146 227 407
05 1988 5,944 2,089 3,305 5,088 185 170
06 1989 930 2,097 3,196 3,629 109 332
07 1990 -320 -696 817 1,083 171 270
08 1991 -111 -869 426 1,175 144 347
09 1992 XXX -98 290 980 141 284
10 1993 XXX XXX -64 34 163 265
11 1994 XXX XXX XXX 144 89 77
<PAGE> 79
SCHEDULE P - PART 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 6 7 7 9
04 1987 XXX XXX 47 883 1,836 2,433
05 1988 XXX XXX XXX 168 425 835
06 1989 XXX XXX XXX XXX 41 188
07 1990 XXX XXX XXX XXX XXX 44
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 9 9 7 7 2 11
04 1987 3,321 3,321 3,403 3,403 83 49
05 1988 1,370 1,523 1,628 1,634 71 51
06 1989 1,174 1,455 1,467 1,455 98 77
07 1990 915 2,113 2,108 2,678 58 29
08 1991 100 1,066 144 360 300 68
09 1992 XXX 160 672 842 38 42
10 1993 XXX XXX 69 205 21 38
11 1994 XXX XXX XXX 2 15 19
SCHEDULE P - PART 3S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 80
SCHEDULE P - PART 3S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 0 0 XXX XXX
02 1993 XXX XXX 0 0 XXX XXX
03 1994 XXX XXX XXX 0 XXX XXX
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 2,816 1,513 720 523 566 538
02 1985 12,340 1,579 591 468 662 374
03 1986 XXX 9,976 2,680 1,559 451 421
04 1987 XXX XXX 4,326 2,098 397 399
05 1988 XXX XXX XXX 4,019 1,278 749
06 1989 XXX XXX XXX XXX 11,084 1,847
07 1990 XXX XXX XXX XXX XXX 7,350
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 350 345 324 238
02 1985 227 10 10 8
03 1986 312 13 17 12
04 1987 404 66 72 -4
05 1988 727 -57 9 -8
06 1989 1,014 -86 -96 -32
07 1990 2,022 -648 -17 -117
08 1991 7,032 601 220 -145
09 1992 XXX 12,777 516 -137
10 1993 XXX XXX 9,775 758
11 1994 XXX XXX XXX 10,266
<PAGE> 81
SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 8,745 2,521 966 447 108 375
02 1985 29,364 7,508 3,532 2,409 1,870 718
03 1986 XXX 33,749 16,229 7,699 2,812 672
04 1987 XXX XXX 26,545 9,109 3,645 1,749
05 1988 XXX XXX XXX 27,932 9,756 3,912
06 1989 XXX XXX XXX XXX 31,287 8,771
07 1990 XXX XXX XXX XXX XXX 28,937
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 5 1 765 838
02 1985 386 3 4 1
03 1986 1,412 743 -942 -560
04 1987 609 -130 -104 -113
05 1988 291 -268 457 -166
06 1989 -53 -1,017 -168 -88
07 1990 11,706 5,705 4,244 4,088
08 1991 36,595 18,906 6,533 1,653
09 1992 XXX 49,630 17,707 8,751
10 1993 XXX XXX 36,118 17,687
11 1994 XXX XXX XXX 37,745
SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 20,079 10,115 6,933 5,781 4,365 2,658
02 1985 45,191 11,350 5,505 3,878 2,524 1,411
03 1986 XXX 40,550 26,924 14,253 8,841 3,632
04 1987 XXX XXX 41,817 24,445 15,037 9,560
05 1988 XXX XXX XXX 35,847 18,718 11,126
06 1989 XXX XXX XXX XXX 34,652 19,949
07 1990 XXX XXX XXX XXX XXX 37,564
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 82
SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 2,259 2,087 337 527
02 1985 973 340 168 149
03 1986 3,042 2,263 1,459 1,497
04 1987 4,553 2,562 1,008 506
05 1988 4,847 3,871 2,015 209
06 1989 6,184 8,590 5,910 2,211
07 1990 15,456 14,452 4,643 5,497
08 1991 40,301 20,993 18,699 14,613
09 1992 XXX 30,573 25,542 21,313
10 1993 XXX XXX 50,909 26,483
11 1994 XXX XXX XXX 35,934
SCHEDULE P - PART 4D - WORKERS' COMPENSATION
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 49,356 36,190 25,428 26,339 31,137 21,262
02 1985 66,237 27,241 21,317 14,096 14,902 10,433
03 1986 XXX 75,366 38,208 22,256 14,745 11,732
04 1987 XXX XXX 56,621 25,243 15,872 13,018
05 1988 XXX XXX XXX 72,604 33,848 22,745
06 1989 XXX XXX XXX XXX 59,318 29,917
07 1990 XXX XXX XXX XXX XXX 61,945
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4D - WORKERS' COMPENSATION
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 15,242 17,399 14,724 16,421
02 1985 9,380 1,626 1,734 1,710
03 1986 10,360 7,485 1,810 1,684
04 1987 12,116 11,137 4,605 2,662
05 1988 22,978 21,841 16,685 2,767
06 1989 19,921 16,582 10,233 5,688
07 1990 34,559 21,512 12,614 7,356
08 1991 52,901 34,474 19,763 11,172
09 1992 XXX 50,748 29,031 15,264
10 1993 XXX XXX 46,697 22,075
11 1994 XXX XXX XXX 58,857
<PAGE> 83
SCHEDULE P - PART 4E - COMMERICAL MULTIPLE PERIL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 23,774 19,908 17,179 12,987 12,549 2,874
02 1985 64,828 18,538 13,331 12,668 17,179 8,755
03 1986 XXX 71,661 42,254 22,244 12,664 7,658
04 1987 XXX XXX 67,563 31,523 16,269 7,660
05 1988 XXX XXX XXX 63,356 33,308 18,108
06 1989 XXX XXX XXX XXX 56,360 28,134
07 1990 XXX XXX XXX XXX XXX 73,887
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4E - COMMERICAL MULTIPLE PERIL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 195 166 152 9,046
02 1985 5,481 2,810 2,668 2,542
03 1986 4,504 1,306 593 1,031
04 1987 5,778 4,544 2,362 408
05 1988 14,148 9,236 6,477 464
06 1989 14,465 7,889 6,233 2,105
07 1990 29,172 21,781 16,364 12,456
08 1991 71,469 29,894 19,723 16,738
09 1992 XXX 64,303 26,029 17,815
10 1993 XXX XXX 57,408 31,395
11 1994 XXX XXX XXX 40,250
SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 1,355 1,435 1,354 1,364 1,409 1,409
02 1985 21 20 24 35 0 0
03 1986 XXX 7 6 6 0 0
04 1987 XXX XXX 12 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 84
SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 1,395 1,395 1,392 1,385
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 0
SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 0
<PAGE> 85
SCHEDULE P - PART 4G - SPECIAL LIABILITY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 2,796 2,603 2,286 2,209 1,971 1,984
02 1985 1,492 340 417 493 510 567
03 1986 XXX 1,376 717 430 -63 110
04 1987 XXX XXX 1,029 235 -35 54
05 1988 XXX XXX XXX 1,220 146 573
06 1989 XXX XXX XXX XXX 744 -27
07 1990 XXX XXX XXX XXX XXX 116
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4G - SPECIAL LIABILITY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 1,472 1,342 941 896
02 1985 582 536 511 369
03 1986 71 4 11 10
04 1987 75 30 21 20
05 1988 614 459 595 92
06 1989 39 -49 65 62
07 1990 77 -179 82 159
08 1991 326 15 106 238
09 1992 XXX 1,002 -464 -421
10 1993 XXX XXX 110 -1,583
11 1994 XXX XXX XXX 379
SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 60,238 41,462 21,989 24,362 39,173 35,652
02 1985 60,725 51,264 35,352 20,941 18,872 14,634
03 1986 XXX 166,956 129,846 115,171 60,578 48,669
04 1987 XXX XXX 142,927 109,434 78,828 55,378
05 1988 XXX XXX XXX 91,590 79,395 70,470
06 1989 XXX XXX XXX XXX 66,105 55,326
07 1990 XXX XXX XXX XXX XXX 71,965
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 86
SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 39,715 38,723 35,473 71,645
02 1985 9,106 5,860 5,860 7,551
03 1986 28,957 17,480 8,297 8,166
04 1987 38,547 25,444 9,192 5,255
05 1988 56,065 46,024 39,645 21,531
06 1989 48,969 38,405 32,548 19,623
07 1990 68,818 45,389 45,240 27,073
08 1991 95,796 60,425 58,819 32,652
09 1992 XXX 61,088 57,085 44,699
10 1993 XXX XXX 84,775 60,749
11 1994 XXX XXX XXX 78,678
SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 1,902 959 545 45 212 139
03 1986 XXX 10,098 6,305 5,546 3,013 1,839
04 1987 XXX XXX 31,352 26,847 22,540 12,377
05 1988 XXX XXX XXX 33,022 23,518 22,443
06 1989 XXX XXX XXX XXX 20,724 17,445
07 1990 XXX XXX XXX XXX XXX 12,289
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0
02 1985 64 39 0 0
03 1986 787 340 0 0
04 1987 6,499 2,736 1,444 12
05 1988 20,773 1,703 307 12
06 1989 12,521 6,013 967 24
07 1990 6,732 11,731 2,355 128
08 1991 30,773 32,824 29,764 6,051
09 1992 XXX 41,301 28,740 27,864
10 1993 XXX XXX 51,077 40,011
11 1994 XXX XXX XXX 44,762
<PAGE> 87
SCHEDULE P - PART 4I - SPECIAL PROPERTY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4I - SPECIAL PROPERTY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR XXX 16,664 4,125 4,171
02 1993 XXX XXX 15,702 3,267
03 1994 XXX XXX XXX 9,087
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 88
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR XXX 6,236 112 1,170
02 1993 XXX XXX 2,622 906
03 1994 XXX XXX XXX 3,385
SCHEDULE P - PART 4K - FIDELITY, SURETY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4K - FIDELITY, SURETY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR XXX 1,419 -106 4,776
02 1993 XXX XXX 2,207 756
03 1994 XXX XXX XXX 3,595
<PAGE> 89
SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR XXX 1 175 253
02 1993 XXX XXX 1,131 1,135
03 1994 XXX XXX XXX 2,027
SCHEDULE P - PART 4M - INTERNATIONAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 356 144 24 29 31 44
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 90
SCHEDULE P - PART 4M - INTERNATIONAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 50 456 852 1,334
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 0
SCHEDULE P - PART 4N - REINSURANCE A
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4N - REINSURANCE A
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 XXX 0 0 0
06 1993 XXX XXX 0 0
07 1994 XXX XXX XXX 0
<PAGE> 91
SCHEDULE P - PART 4O - REINSURANCE B
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4O - REINSURANCE B
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 XXX 0 0 0
06 1993 XXX XXX 0 0
07 1994 XXX XXX XXX 0
SCHEDULE P - PART 4P - REINSURANCE C
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 92
SCHEDULE P - PART 4P - REINSURANCE C
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 XXX 0 0 0
06 1993 XXX XXX 0 0
07 1994 XXX XXX XXX 0
SCHEDULE P - PART 4Q - REINSURANCE D
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 538 1,729
02 1985 861 154 0 0 0 0
03 1986 XXX 1,505 2,519 2,670 961 1,045
04 1987 XXX XXX 0 0 0 0
SCHEDULE P - PART 4Q - REINSURANCE D
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 540 539 539 749
02 1985 0 0 0 0
03 1986 1,071 1,002 1,498 1,498
04 1987 0 0 0 0
<PAGE> 93
SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 7,184 4,263 5,657 8,148 7,386 1,760
02 1985 9,054 8,298 8,703 7,530 7,179 2,685
03 1986 XXX 44,852 41,971 36,272 27,042 15,634
04 1987 XXX XXX 38,622 34,068 32,082 22,054
05 1988 XXX XXX XXX 24,862 14,390 14,927
06 1989 XXX XXX XXX XXX 12,882 8,765
07 1990 XXX XXX XXX XXX XXX 9,729
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 4,195 5,042 8,499 20,333
02 1985 2,246 1,634 1,506 3,778
03 1986 9,568 6,498 3,492 3,366
04 1987 11,003 5,532 3,692 1,596
05 1988 10,648 4,921 4,153 4,393
06 1989 8,598 5,187 5,585 4,198
07 1990 12,355 10,206 10,268 7,511
08 1991 8,057 6,787 7,490 5,913
09 1992 XXX 3,278 5,249 3,713
10 1993 XXX XXX 4,397 4,497
11 1994 XXX XXX XXX 7,234
SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1985 117 145 102 6 21 13
03 1986 XXX 2,528 2,155 1,486 1,267 775
04 1987 XXX XXX 10,458 6,147 6,541 6,777
05 1988 XXX XXX XXX 5,831 6,512 6,247
06 1989 XXX XXX XXX XXX 5,449 4,539
07 1990 XXX XXX XXX XXX XXX 3,652
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 94
SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0
02 1985 5 3 0 0
03 1986 356 194 0 0
04 1987 4,837 4,457 321 0
05 1988 6,059 5,874 1,065 0
06 1989 3,615 3,770 1,036 8
07 1990 1,549 1,552 502 31
08 1991 4,740 3,922 1,414 376
09 1992 XXX 2,768 1,056 108
10 1993 XXX XXX 827 216
11 1994 XXX XXX XXX 560
SCHEDULE P - PART 4S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1993 XXX XXX XXX XXX XXX XXX
03 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END (000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1991 1992 1993 1994
LOSSES WERE
INCURRED
01 PRIOR XXX 0 0 0
02 1993 XXX XXX 0 0
03 1994 XXX XXX XXX 0
<PAGE> 95
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 381 383
02 1985 36,046 42,803 43,152 43,259 43,309 43,326
03 1986 XXX 25,316 29,541 29,747 29,814 29,843
04 1987 XXX XXX 17,304 21,148 21,294 21,356
05 1988 XXX XXX XXX 15,928 19,958 20,113
06 1989 XXX XXX XXX XXX 22,062 27,691
07 1990 XXX XXX XXX XXX XXX 17,222
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 385 385 385 386
02 1985 43,331 43,332 43,373 43,373
03 1986 29,855 29,863 29,868 29,872
04 1987 21,376 21,378 21,385 21,379
05 1988 20,157 20,176 20,190 20,198
06 1989 27,943 28,006 28,034 28,053
07 1990 22,247 22,477 22,561 22,592
08 1991 21,317 25,718 25,917 25,979
09 1992 XXX 15,906 19,869 20,073
10 1993 XXX XXX 17,252 20,099
11 1994 XXX XXX XXX 20,616
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 302 176 94 66 47
02 1985 965 268 107 40 15 5
03 1986 XXX 616 210 103 56 29
04 1987 XXX XXX 481 124 62 27
05 1988 XXX XXX XXX 488 114 67
06 1989 XXX XXX XXX XXX 581 183
07 1990 XXX XXX XXX XXX XXX 660
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 96
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 29 13 12 23
02 1985 1 2 2 2
03 1986 13 8 5 0
04 1987 13 5 3 2
05 1988 35 22 9 6
06 1989 77 59 31 12
07 1990 210 108 47 20
08 1991 513 173 95 56
09 1992 XXX 391 184 75
10 1993 XXX XXX 1,643 147
11 1994 XXX XXX XXX 1,715
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 37,282 43,622 43,863 43,928 43,959 43,969
03 1986 XXX 26,165 30,143 30,290 30,328 30,347
04 1987 XXX XXX 17,926 21,541 21,648 21,682
05 1988 XXX XXX XXX 16,609 20,362 20,477
06 1989 XXX XXX XXX XXX 22,837 28,262
07 1990 XXX XXX XXX XXX XXX 18,029
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 43,970 43,978 44,017 44,004
03 1986 30,354 30,361 30,365 30,344
04 1987 21,693 21,696 21,700 21,682
05 1988 20,507 20,528 20,533 20,523
06 1989 28,449 28,528 28,582 28,589
07 1990 22,819 23,006 23,050 23,068
08 1991 22,048 26,329 26,503 26,545
09 1992 XXX 16,480 20,398 20,572
10 1993 XXX XXX 20,181 22,315
11 1994 XXX XXX XXX 26,644
<PAGE> 97
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 2,802 2,833
02 1985 35,650 48,846 50,855 51,441 51,661 51,750
03 1986 XXX 27,211 36,398 37,656 38,058 38,203
04 1987 XXX XXX 22,271 29,859 30,917 31,232
05 1988 XXX XXX XXX 22,870 30,303 31,257
06 1989 XXX XXX XXX XXX 25,411 34,715
07 1990 XXX XXX XXX XXX XXX 28,746
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 2,841 2,848 2,857 2,856
02 1985 52,024 53,937 53,946 54,358
03 1986 38,472 40,277 40,292 40,714
04 1987 31,547 33,211 33,223 33,774
05 1988 31,674 33,270 33,329 33,922
06 1989 36,156 37,850 37,997 38,625
07 1990 37,072 39,550 40,009 40,979
08 1991 19,839 29,128 30,554 31,383
09 1992 XXX 21,343 30,634 31,433
10 1993 XXX XXX 26,007 33,532
11 1994 XXX XXX XXX 30,862
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 1,722 814 501 313 252
02 1985 10,822 2,705 865 360 132 45
03 1986 XXX 8,395 1,812 625 213 91
04 1987 XXX XXX 7,109 1,577 548 210
05 1988 XXX XXX XXX 6,935 1,488 517
06 1989 XXX XXX XXX XXX 6,867 1,534
07 1990 XXX XXX XXX XXX XXX 6,273
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 98
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 52 45 31 27
02 1985 23 15 11 5
03 1986 36 28 16 7
04 1987 79 42 24 9
05 1988 221 105 50 8
06 1989 493 273 129 41
07 1990 1,699 685 294 102
08 1991 5,432 1,660 555 203
09 1992 XXX 5,883 1,635 469
10 1993 XXX XXX 9,388 2,118
11 1994 XXX XXX XXX 9,359
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 57,804 67,653 68,389 68,624 68,728 70,433
03 1986 XXX 46,685 53,054 53,584 53,790 57,688
04 1987 XXX XXX 40,205 45,676 46,450 50,398
05 1988 XXX XXX XXX 32,459 39,366 39,637
06 1989 XXX XXX XXX XXX 39,567 45,512
07 1990 XXX XXX XXX XXX XXX 44,737
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 70,572 72,762 72,764 73,368
03 1986 57,568 59,616 59,620 60,262
04 1987 50,661 52,499 52,533 53,355
05 1988 39,931 43,650 41,659 42,545
06 1989 46,068 47,756 47,838 48,695
07 1990 50,131 51,957 52,082 53,333
08 1991 28,995 36,024 36,527 37,298
09 1992 XXX 30,815 37,364 37,311
10 1993 XXX XXX 41,057 43,748
11 1994 XXX XXX XXX 51,559
<PAGE> 99
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 100,069 100,084
02 1985 17,040 21,293 21,972 22,202 21,708 21,790
03 1986 XXX 9,793 12,723 13,203 13,503 13,629
04 1987 XXX XXX 8,335 11,317 11,926 12,156
05 1988 XXX XXX XXX 8,659 12,326 12,980
06 1989 XXX XXX XXX XXX 9,811 13,126
07 1990 XXX XXX XXX XXX XXX 8,258
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 100,110 100,129 100,136 100,139
02 1985 22,197 22,579 22,589 24,723
03 1986 14,632 15,208 15,216 16,504
04 1987 13,468 14,143 14,252 15,804
05 1988 14,135 14,803 14,909 16,457
06 1989 14,391 15,220 15,410 15,986
07 1990 11,393 13,056 13,401 14,027
08 1991 6,858 10,158 10,741 11,862
09 1992 XXX 6,762 9,578 11,116
10 1993 XXX XXX 7,822 12,482
11 1994 XXX XXX XXX 9,994
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 1,699 1,000 506 514 196
02 1985 4,049 1,369 782 425 172 86
03 1986 XXX 2,794 1,054 604 258 102
04 1987 XXX XXX 2,469 927 408 206
05 1988 XXX XXX XXX 3,128 1,022 446
06 1989 XXX XXX XXX XXX 2,760 1,079
07 1990 XXX XXX XXX XXX XXX 2,652
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 100
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 111 83 73 69
02 1985 34 16 4 5
03 1986 55 26 12 2
04 1987 129 57 25 10
05 1988 284 114 52 32
06 1989 654 297 129 62
07 1990 1,542 723 271 119
08 1991 2,931 1,382 566 276
09 1992 XXX 3,218 1,096 553
10 1993 XXX XXX 3,739 1,685
11 1994 XXX XXX XXX 4,624
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 23,612 27,207 27,507 27,595 27,671 28,196
03 1986 XXX 14,724 17,102 17,369 17,479 17,503
04 1987 XXX XXX 13,000 15,504 15,808 15,887
05 1988 XXX XXX XXX 14,744 17,236 17,506
06 1989 XXX XXX XXX XXX 15,225 17,625
07 1990 XXX XXX XXX XXX XXX 12,844
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 28,704 29,121 29,123 30,133
03 1986 18,965 19,608 19,615 20,272
04 1987 17,733 18,453 18,474 19,433
05 1988 19,046 19,684 19,701 20,678
06 1989 19,060 19,661 19,713 20,496
07 1990 16,284 17,392 17,345 17,793
08 1991 11,379 13,988 13,882 15,316
09 1992 XXX 11,660 13,269 15,015
10 1993 XXX XXX 14,378 19,193
11 1994 XXX XXX XXX 19,204
<PAGE> 101
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 210,710 210,987
02 1985 49,828 62,399 63,651 64,293 64,740 64,962
03 1986 XXX 31,779 41,441 42,454 43,054 43,352
04 1987 XXX XXX 25,727 35,835 36,984 37,426
05 1988 XXX XXX XXX 26,809 35,308 36,268
06 1989 XXX XXX XXX XXX 22,652 29,616
07 1990 XXX XXX XXX XXX XXX 19,227
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 212,214 212,483 212,706 212,921
02 1985 65,124 65,138 65,196 68,334
03 1986 43,488 43,544 43,587 46,102
04 1987 37,661 37,762 37,842 40,906
05 1988 36,698 36,932 37,059 41,434
06 1989 30,529 31,054 31,312 31,475
07 1990 25,404 26,433 26,894 27,126
08 1991 15,376 20,682 21,582 22,064
09 1992 XXX 13,957 19,031 19,901
10 1993 XXX XXX 12,004 15,184
11 1994 XXX XXX XXX 10,235
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 5,540 4,248 3,713 3,236 2,983
02 1985 6,667 2,870 1,847 1,198 679 450
03 1986 XXX 5,052 2,319 1,393 766 462
04 1987 XXX XXX 4,811 2,356 1,255 770
05 1988 XXX XXX XXX 5,752 2,374 1,432
06 1989 XXX XXX XXX XXX 3,905 2,013
07 1990 XXX XXX XXX XXX XXX 4,048
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 102
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 2,637 2,349 2,218 1,989
02 1985 302 250 203 162
03 1986 276 195 147 118
04 1987 445 275 192 140
05 1988 826 497 358 230
06 1989 1,087 635 398 264
07 1990 1,748 980 579 383
08 1991 3,208 1,710 932 539
09 1992 XXX 2,722 1,409 784
10 1993 XXX XXX 1,971 937
11 1994 XXX XXX XXX 1,434
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 59,334 70,434 70,892 71,137 71,204 71,263
03 1986 XXX 39,767 48,229 48,664 48,800 48,866
04 1987 XXX XXX 33,394 43,352 43,833 43,955
05 1988 XXX XXX XXX 36,313 43,354 43,728
06 1989 XXX XXX XXX XXX 26,936 32,241
07 1990 XXX XXX XXX XXX XXX 23,652
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 103
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 71,316 71,221 71,247 71,344
03 1986 48,899 48,833 48,844 48,919
04 1987 43,996 43,911 43,925 44,015
05 1988 43,827 43,815 43,837 43,898
06 1989 32,522 32,585 32,629 32,694
07 1990 27,826 28,126 28,214 28,292
08 1991 18,991 22,993 23,241 23,368
09 1992 XXX 16,992 20,957 21,281
10 1993 XXX XXX 14,222 16,522
11 1994 XXX XXX XXX 12,053
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 2,893 3,100
02 1985 14,216 19,108 19,925 20,319 20,552 20,681
03 1986 XXX 7,892 10,941 11,498 11,834 12,004
04 1987 XXX XXX 6,662 9,932 10,502 10,758
05 1988 XXX XXX XXX 7,745 11,116 11,671
06 1989 XXX XXX XXX XXX 8,379 12,527
07 1990 XXX XXX XXX XXX XXX 8,650
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 3,201 3,294 3,335 3,371
02 1985 20,770 20,824 20,855 21,720
03 1986 12,098 12,158 12,196 12,751
04 1987 10,937 11,049 11,092 11,572
05 1988 11,928 12,090 12,190 12,671
06 1989 13,117 13,421 13,589 14,339
07 1990 12,604 13,216 13,513 14,119
08 1991 8,593 11,972 12,591 13,309
09 1992 XXX 7,080 10,403 11,262
10 1993 XXX XXX 7,225 10,169
11 1994 XXX XXX XXX 8,431
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 2,166 1,242 811 536 322
02 1985 2,212 1,207 761 474 341 224
03 1986 XXX 1,580 876 601 378 226
04 1987 XXX XXX 1,385 805 541 365
05 1988 XXX XXX XXX 1,587 780 554
06 1989 XXX XXX XXX XXX 1,521 968
07 1990 XXX XXX XXX XXX XXX 1,974
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 104
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 265 176 149 131
02 1985 151 117 71 52
03 1986 135 90 66 48
04 1987 201 108 71 40
05 1988 389 245 141 71
06 1989 638 442 299 171
07 1990 1,055 682 420 232
08 1991 1,711 1,113 704 451
09 1992 XXX 1,626 1,036 694
10 1993 XXX XXX 1,859 1,153
11 1994 XXX XXX XXX 2,634
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 17,169 21,998 22,641 22,935 23,170 23,335
03 1986 XXX 10,100 13,190 13,692 13,933 14,055
04 1987 XXX XXX 8,562 11,932 12,453 12,365
05 1988 XXX XXX XXX 10,075 13,441 13,945
06 1989 XXX XXX XXX XXX 10,628 15,022
07 1990 XXX XXX XXX XXX XXX 11,401
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 23,450 23,541 23,601 24,542
03 1986 14,117 14,168 14,223 14,827
04 1987 12,775 12,845 12,893 13,433
05 1988 14,188 14,290 14,360 14,869
06 1989 15,572 15,844 15,958 16,705
07 1990 15,431 16,064 16,281 16,872
08 1991 11,079 15,042 15,597 16,276
09 1992 XXX 9,743 13,825 14,718
10 1993 XXX XXX 10,337 14,083
11 1994 XXX XXX XXX 12,765
<PAGE> 105
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 0
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 106
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 0
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 2 2 6 6 5
02 1985 0 0 0 1 1 1
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 5 3 3 3
02 1985 1 0 0 1
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 0
<PAGE> 107
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 2
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 1 1 1 1 1 1
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 108
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 1 1 1 1
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 0
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 2
<PAGE> 109
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 2,853 3,023
02 1985 3,571 6,337 7,057 7,425 7,634 7,784
03 1986 XXX 3,301 5,249 5,932 6,309 6,492
04 1987 XXX XXX 2,613 4,311 4,830 5,154
05 1988 XXX XXX XXX 2,180 3,263 3,630
06 1989 XXX XXX XXX XXX 2,104 3,079
07 1990 XXX XXX XXX XXX XXX 1,597
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 3,162 3,248 3,329 2,738
02 1985 7,851 7,909 7,934 7,951
03 1986 6,608 6,672 6,702 6,760
04 1987 5,195 5,279 5,408 5,565
05 1988 3,799 3,920 4,035 4,543
06 1989 3,304 3,491 3,634 3,692
07 1990 2,613 2,849 3,046 3,159
08 1991 1,434 2,395 2,810 2,991
09 1992 XXX 2,232 3,742 4,080
10 1993 XXX XXX 1,860 2,916
11 1994 XXX XXX XXX 1,534
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 2 6 6 9 11 12
03 1986 XXX 5 20 31 37 38
04 1987 XXX XXX 36 64 89 99
05 1988 XXX XXX XXX 46 80 90
06 1989 XXX XXX XXX XXX 39 53
07 1990 XXX XXX XXX XXX XXX 32
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 110
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 12 12 12 12
03 1986 40 42 42 42
04 1987 177 172 174 249
05 1988 129 125 126 140
06 1989 82 84 89 113
07 1990 49 69 77 86
08 1991 52 121 144 105
09 1992 XXX 109 38 64
10 1993 XXX XXX 14 63
11 1994 XXX XXX XXX 38
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 2,425 1,837 1,709 1,399 1,306
02 1985 2,091 1,550 984 799 470 326
03 1986 XXX 2,126 1,283 734 611 407
04 1987 XXX XXX 1,475 1,010 702 481
05 1988 XXX XXX XXX 1,050 705 582
06 1989 XXX XXX XXX XXX 826 618
07 1990 XXX XXX XXX XXX XXX 692
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 1,351 1,622 1,742 1,912
02 1985 260 233 230 259
03 1986 233 197 158 159
04 1987 298 204 148 120
05 1988 400 255 143 105
06 1989 535 374 221 144
07 1990 569 445 313 250
08 1991 560 529 450 299
09 1992 XXX 674 553 407
10 1993 XXX XXX 992 671
11 1994 XXX XXX XXX 999
<PAGE> 111
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 3 3 4 3 1 0
03 1986 XXX 39 21 3 8 4
04 1987 XXX XXX 134 73 32 18
05 1988 XXX XXX XXX 111 55 46
06 1989 XXX XXX XXX XXX 148 94
07 1990 XXX XXX XXX XXX XXX 202
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 2 0 1 1
04 1987 12 9 4 3
05 1988 29 15 9 6
06 1989 58 21 12 13
07 1990 144 111 88 55
08 1991 337 175 119 97
09 1992 XXX 222 211 148
10 1993 XXX XXX 277 247
11 1994 XXX XXX XXX 588
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 7,200 10,829 11,652 12,147 12,202 13,107
03 1986 XXX 7,056 9,814 10,571 10,851 11,401
04 1987 XXX XXX 5,205 7,281 7,811 8,307
05 1988 XXX XXX XXX 4,218 5,616 6,162
06 1989 XXX XXX XXX XXX 3,373 4,676
07 1990 XXX XXX XXX XXX XXX 2,725
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 112
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 12,866 12,944 13,036 13,078
03 1986 11,383 11,425 11,485 11,474
04 1987 8,270 8,343 8,537 8,703
05 1988 6,330 6,435 6,565 6,749
06 1989 4,994 5,186 5,306 5,482
07 1990 4,030 4,384 4,637 4,976
08 1991 2,384 3,684 4,287 4,719
09 1992 XXX 3,146 5,176 5,868
10 1993 XXX XXX 3,001 4,882
11 1994 XXX XXX XXX 3,650
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 9 29 31 31 31 31
03 1986 XXX 62 91 95 99 100
04 1987 XXX XXX 182 232 247 251
05 1988 XXX XXX XXX 172 224 236
06 1989 XXX XXX XXX XXX 191 238
07 1990 XXX XXX XXX XXX XXX 245
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 31 31 31 31
03 1986 100 101 102 104
04 1987 347 327 327 460
05 1988 296 278 278 298
06 1989 272 238 238 287
07 1990 343 345 353 350
08 1991 426 507 516 476
09 1992 XXX 582 642 426
10 1993 XXX XXX 326 548
11 1994 XXX XXX XXX 660
<PAGE> 113
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 36 67
02 1985 135 226 295 375 392 413
03 1986 XXX 140 241 280 295 330
04 1987 XXX XXX 98 161 189 154
05 1988 XXX XXX XXX 51 77 40
06 1989 XXX XXX XXX XXX 36 20
07 1990 XXX XXX XXX XXX XXX 44
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 94 131 153 173
02 1985 457 471 446 456
03 1986 373 390 377 384
04 1987 226 227 234 227
05 1988 110 136 133 185
06 1989 74 77 87 109
07 1990 107 119 130 171
08 1991 61 100 121 144
09 1992 XXX 75 118 141
10 1993 XXX XXX 111 163
11 1994 XXX XXX XXX 89
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 2 2 2 2
04 1987 XXX XXX 29 32 45 57
05 1988 XXX XXX XXX 23 38 59
06 1989 XXX XXX XXX XXX 42 61
07 1990 XXX XXX XXX XXX XXX 21
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 114
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 2 2 2 2
04 1987 59 77 80 83
05 1988 68 62 68 71
06 1989 66 91 92 98
07 1990 33 57 61 58
08 1991 26 263 271 300
09 1992 XXX 25 33 38
10 1993 XXX XXX 19 21
11 1994 XXX XXX XXX 15
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 339 207 144 824 841
02 1985 107 182 134 83 221 161
03 1986 XXX 153 123 66 125 94
04 1987 XXX XXX 74 52 67 62
05 1988 XXX XXX XXX 10 54 49
06 1989 XXX XXX XXX XXX 39 45
07 1990 XXX XXX XXX XXX XXX 38
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 975 975 904 861
02 1985 164 161 139 133
03 1986 164 150 97 95
04 1987 104 92 60 76
05 1988 93 74 44 42
06 1989 63 65 29 27
07 1990 86 94 54 56
08 1991 42 49 39 42
09 1992 XXX 25 43 62
10 1993 XXX XXX 29 62
11 1994 XXX XXX XXX 74
<PAGE> 115
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 3 2 0 1 1
04 1987 XXX XXX 12 29 21 13
05 1988 XXX XXX XXX 18 42 28
06 1989 XXX XXX XXX XXX 28 17
07 1990 XXX XXX XXX XXX XXX 17
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 11 10 4 3
05 1988 19 8 2 2
06 1989 25 2 1 2
07 1990 29 11 4 1
08 1991 30 58 40 20
09 1992 XXX 30 16 8
10 1993 XXX XXX 34 16
11 1994 XXX XXX XXX 30
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 293 532 656 726 788 814
03 1986 XXX 375 606 663 754 794
04 1987 XXX XXX 258 387 479 404
05 1988 XXX XXX XXX 128 207 150
06 1989 XXX XXX XXX XXX 133 70
07 1990 XXX XXX XXX XXX XXX 98
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 116
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 1,330 1,366 1,306 1,377
03 1986 1,327 1,371 1,043 1,108
04 1987 794 819 626 710
05 1988 446 469 324 397
06 1989 276 258 218 468
07 1990 287 332 267 497
08 1991 124 209 228 533
09 1992 XXX 118 198 487
10 1993 XXX XXX 167 490
11 1994 XXX XXX XXX 240
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 3 11 11 12 12
04 1987 XXX XXX 45 84 108 127
05 1988 XXX XXX XXX 45 100 117
06 1989 XXX XXX XXX XXX 76 119
07 1990 XXX XXX XXX XXX XXX 41
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 12 12 12 13
04 1987 130 133 134 135
05 1988 125 122 123 124
06 1989 131 169 169 177
07 1990 99 96 96 88
08 1991 62 372 372 388
09 1992 XXX 73 77 88
10 1993 XXX XXX 66 75
11 1994 XXX XXX XXX 64
<PAGE> 117
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 157,546 177,162
11 1994 XXX XXX XXX 166,527
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 118
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 58,106 68,091
11 1994 XXX XXX XXX 57,735
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 136,518 144,639
11 1994 XXX XXX XXX 144,300
<PAGE> 119
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 32,189 42,149
11 1994 XXX XXX XXX 25,847
SCHEDULE P - PART 6E - COMMERICAL MULTIPLE PERIL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 120
SCHEDULE P - PART 6E - COMMERICAL MULTIPLE PERIL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 191,501 195,744
11 1994 XXX XXX XXX 213,494
SCHEDULE P - PART 6E - COMMERICAL MULTIPLE PERIL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6E - COMMERICAL MULTIPLE PERIL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 20,088 28,083
11 1994 XXX XXX XXX 29,117
<PAGE> 121
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 205,776 234,739
11 1994 XXX XXX XXX 225,758
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 122
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 88,905 92,678
11 1994 XXX XXX XXX 97,424
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 2A
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 2A
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 92,175 109,596
11 1994 XXX XXX XXX 97,880
<PAGE> 123
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS MADE
SECTION 2B
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS MADE
SECTION 2B
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 5,235 6,564
11 1994 XXX XXX XXX 6,288
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 124
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 0
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 0 0
11 1994 XXX XXX XXX 0
<PAGE> 125
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 XXX 0 0 0
06 1993 XXX XXX 0 0
07 1994 XXX XXX XXX 0
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 126
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 XXX 0 0 0
06 1993 XXX XXX 0 0
07 1994 XXX XXX XXX 0
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 XXX 0 0 0
06 1993 XXX XXX 0 0
07 1994 XXX XXX XXX 0
<PAGE> 127
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 1988 XXX XXX XXX 0 0 0
02 1989 XXX XXX XXX XXX 0 0
03 1990 XXX XXX XXX XXX XXX 0
04 1991 XXX XXX XXX XXX XXX XXX
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 XXX 0 0 0
06 1993 XXX XXX 0 0
07 1994 XXX XXX XXX 0
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
<PAGE> 128
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 11,571 15,800
11 1994 XXX XXX XXX 11,774
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 2,210 2,305
11 1994 XXX XXX XXX 2,078
<PAGE> 129
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 2A
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 2A
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 4,930 7,005
11 1994 XXX XXX XXX 3,910
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 2B
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1985 1986 1987 1988 1989 1990
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1985 0 0 0 0 0 0
03 1986 XXX 0 0 0 0 0
04 1987 XXX XXX 0 0 0 0
05 1988 XXX XXX XXX 0 0 0
06 1989 XXX XXX XXX XXX 0 0
07 1990 XXX XXX XXX XXX XXX 0
08 1991 XXX XXX XXX XXX XXX XXX
09 1992 XXX XXX XXX XXX XXX XXX
10 1993 XXX XXX XXX XXX XXX XXX
11 1994 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 2B
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1991 1992 1993 1994
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1985 0 0 0 0
03 1986 0 0 0 0
04 1987 0 0 0 0
05 1988 0 0 0 0
06 1989 0 0 0 0
07 1990 0 0 0 0
08 1991 0 0 0 0
09 1992 XXX 0 0 0
10 1993 XXX XXX 1,528 1,558
11 1994 XXX XXX XXX 1,915
