<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 1995 Commission File No. 0-3681
MERCURY GENERAL CORPORATION
(Exact name of registrant as specified in its charter)
California 95-221-1612
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
4484 Wilshire Boulevard, Los Angeles California 90010
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (213) 937-1060
Securities registered pursuant to Section 12(b) of the Act
NONE
Securities registered pursuant to Section 12(g) of the Act
Common Stock
(Title of Class)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
----- -----
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of 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. [ ]
The aggregate market value of the Registrant's voting stock held by non-
affiliates of the Registrant at March 22, 1996, was approximately $567,702,856
(based upon the closing sales price of such date, as reported by the Wall Street
Journal).
At March 22, 1996, the Registrant had issued and outstanding an aggregate of
27,463,475 shares of its Common Stock.
Documents Incorporated by Reference
Proxy statement for the Annual Meeting of Stockholders of Registrant to be held
on May 29, 1996 (only portions of which are incorporated by reference).
<PAGE>
PART I
Item 1. Business
--------
General
The Company is engaged primarily in writing all risk classifications of
automobile insurance in California, which in 1995 accounted for approximately
98% of the Company's direct premiums written. In 1990, the Company commenced
writing small amounts of automobile insurance in Georgia and Illinois. During
1995, private passenger automobile insurance and commercial automobile insurance
accounted for 93.1% and 4.5%, respectively, of the Company's direct premiums
written. The Company also writes homeowners insurance, commercial and dwelling
fire insurance and commercial property insurance. In 1995, the non-automobile
lines of insurance accounted for 2.4% of direct premiums written, of which
approximately 55% was in commercial lines.
The Company offers automobile policyholders the following types of
coverage: bodily injury liability coverage, including underinsured and
uninsured motorist coverage, property damage liability coverage and physical
damage coverage, including fire, theft, collision and other hazards specified in
the policy. The Company's published maximum limits of liability for bodily
injury are $250,000 per person injured, $500,000 per accident and, for property
damage, $250,000 per accident. Subject to special underwriting approval, the
combined policy limits may be as high as $1,000,000 for vehicles written under
the Company's commercial automobile plan. Under the majority of the Company's
automobile policies, however, the limits of liability are less than $100,000 per
person injured, $300,000 per accident and $50,000 for property damage.
In 1995, A.M. Best & Co. rated Mercury Casualty Company and Mercury
Insurance Company, the Company's chief operating subsidiaries, A+ (Superior).
This is the second highest of the fifteen rating categories in the A.M. Best
rating system, which range from A++ (Superior) to F (In Liquidation).
The principal executive offices of Mercury General Corporation are located
in Los Angeles, California. The home office of its California insurance
subsidiaries and the Company's computer and operations center is located in
Brea, California. The Company maintains branch offices in a number of locations
in California, in Vernon Hills, Illinois and in Atlanta, Georgia. The Company
has approximately 1400 employees.
Organization
Mercury General Corporation ("Mercury General"), an insurance holding
company, is the parent of Mercury Casualty Company, a California automobile
insurer founded in 1961 by George Joseph, its Chief Executive Officer. Its
insurance operations in California are conducted through three California
insurance company subsidiaries, Mercury Casualty Company ("Mercury Casualty"),
Mercury Insurance Company ("Mercury Insurance"), and California Automobile
Insurance Company. Two subsidiaries, Mercury Insurance Company of Georgia and
Mercury Insurance Company of Illinois, received authority in late 1989 to write
1
<PAGE>
automobile insurance in those two states. In 1992, Mercury Indemnity Company of
Georgia and Mercury Indemnity Company of Illinois were formed to write preferred
risk automobile insurance in those two states.
Mercury General furnishes management services to its insurance company
subsidiaries. Mercury General and its insurance company subsidiaries are
referred to as the "Company" unless the context indicates otherwise, and Mercury
General Corporation individually is referred to as "Mercury General."
Underwriting
The Company sets its own automobile insurance premium rates, subject to
rating factor regulations issued by the California Department of Insurance
(DOI). Automobile insurance rates on voluntary business in California have been
subject to approval by the DOI since November 1989 pursuant to regulations
required by an initiative known as Proposition 103, which was passed by
California voters in November, 1988. Judicial proceedings and administrative
hearings delayed implementation of prior approval proceedings until after July
1990, when the Insurance Commissioner then in office issued initial prior
approval regulations and rating factor regulations. The Company submitted a new
classification and rating plan in accordance with the new regulations, which the
DOI approved for implementation in February of 1991. The Company uses its own
extensive data base to establish its classification and rating factor plans. In
January 1991, a new, elected Insurance Commissioner rescinded the prior approval
regulations of his predecessor. No prior approval regulations are currently in
effect, but the DOI continues to process rate applications. The regulations
pertaining to the rating factor criteria were left intact and remain in effect
as of this date. The present Insurance Commissioner took office in January
1995. After conducting hearings in April 1995 and December 1995, the
Commissioner issued proposed rating factor regulations in March 1996. See
"Regulation - Automobile Insurance Rating Factor Regulations."
On February 25, 1994, the DOI approved a revised rating plan and rates for
the Company which became effective on May 1, 1994. These rates were designed to
improve the Company's competitive position for new insureds and included a
modest overall rate reduction. Further rate modifications were approved and
made effective on October 15, 1995. See "Management's Discussion and Analysis
of Financial Condition and Results of Operations - Overview."
Approximately 80% of the Company's new applications for automobile
insurance during 1995 were placed in the lowest risk classifications, known as
"good drivers" (as defined by the California Insurance Code), while
approximately 20% of new applications were accepted in higher risk
classifications at increased rate levels. Policies are reclassified at the time
of renewal and may be changed to a higher or lower risk classification.
At December 31, 1995, "good drivers" accounted for approximately 78% of all
voluntary private passenger automobile policies in force, while the higher risk
categories accounted for 22%. The Company's renewal rate (the rate of
acceptance of offers to renew) averages approximately 93%.
2
<PAGE>
Production and Servicing of Business
The Company sells its policies through 910 independent agents located in
California, Georgia and Illinois, of which 780 are located in California.
Approximately half of the agents have represented the Company for more than ten
years. These agents, most of whom also represent one or more competing
insurance companies, are independent contractors selected and appointed by the
Company.
One agency produced direct premiums written of approximately 15%, 13% and
12% during 1995, 1994 and 1993, respectively, of the Company's total direct
premiums. No other agent accounted for more than 2% of direct premiums written.
The Company believes that its agents' compensation is higher than the
industry average. During 1995 total commissions and bonuses incurred averaged
15.8% of direct premiums written. The Company is not responsible for any of
its agents' expenses.
Traditionally, any advertising done has been handled by the individual
agents. During the fourth quarter of 1995, the Company began its first
advertising program in major newspapers in Southern California. While the
Company plans, coordinates and executes the program, the agents are responsible
for the cost of the advertisements. The program has been satisfactory and was
expanded to Northern California in early 1996.
Claims
Claims operations are supervised by the Company's Vice President and Chief
Claims Officer. The claims staff administers all claims and directs all legal
and adjustment aspects of the claims process. The Company adjusts most claims
without the assistance of outside adjusters.
Loss and Loss Adjustment Expense Reserves
The Company maintains reserves for the payment of losses and loss
adjustment expenses for both reported and unreported claims. Loss reserves are
estimated based upon a case-by-case evaluation of the type of claim involved and
the expected development of such claim. The amount of loss reserves and loss
adjustment expense reserves for unreported claims are determined on the basis of
historical information by line of insurance. Inflation is reflected in the
reserving process through analysis of cost trends and reviews of historical
reserving results.
Ultimate liability may be greater or lower than stated loss reserves.
Reserves are closely monitored and are analyzed quarterly by the Company's
actuarial consultant using new information on reported claims and a variety of
statistical techniques. The Company does not discount to a present value that
portion of its loss reserves expected to be paid in future periods. The Tax
Reform Act of 1986 does, however, require the Company to discount loss reserves
for Federal income tax purposes.
3
<PAGE>
The following table sets forth a reconciliation of beginning and ending
reserves for losses and loss adjustment expenses, net of reinsurance deductions,
as shown on the Company's consolidated financial statements for the periods
indicated.
<TABLE>
<CAPTION>
Year ended December 31,
----------------------------
1995 1994 1993
-------- -------- --------
(Amounts in thousands)
<S> <C> <C> <C>
Net reserves for losses and loss adjustment
expenses, beginning of year.............................. $223,392 $214,525 $239,203
Incurred losses and loss adjustment expenses:
Provision for insured events of the
current year.................................... 423,264 370,631 323,932
Decrease in provision for insured events
of prior years.................................. (6,708) (10,074) (34,724)
-------- -------- --------
Total incurred losses and loss adjustment
expenses...................................... 416,556 360,557 289,208
-------- -------- --------
Payments:
Losses and loss adjustment expenses attribu-
table to insured events of the current
year............................................ 243,294 208,418 178,698
Losses and loss adjustment expenses attribu-
table to insured events of prior years.......... 145,664 143,272 135,188
-------- -------- --------
Total payments.................................. 388,958 351,690 313,886
-------- -------- --------
Net reserves for losses and loss adjustment
expenses at the end of the period......................... 250,990 223,392 214,525
Reinsurance recoverable.................................... 2,556 4,107 776
-------- -------- --------
Gross liability at end of year............................. $253,546 $227,499 $215,301
======== ======== ========
</TABLE>
The difference between the reserves reported in the Company's consolidated
financial statements prepared in accordance with generally accepted accounting
principles (GAAP) and those reported in the statements filed with the DOI in
accordance with statutory accounting principles (SAP) is as follows:
<TABLE>
<CAPTION>
December 31,
---------------------------
1995 1994 1993
---- ---- ----
(Amounts in thousands)
<S> <C> <C> <C>
Reserves reported on a SAP basis....................... $250,990 $223,392 $214,525
Reinsurance recoverable................................ 2,556 $ 4,107 776
-------- -------- --------
Reserves reported on a GAAP basis...................... $253,546 $227,499 $215,301
======== ======== ========
</TABLE>
The following table represents the development of loss reserves for the
period 1986 through 1995. The top line of the table shows the reserves at the
balance sheet date net of reinsurance recoverable for each of the indicated
years. This represents the estimated amount of losses and loss adjustment
expenses for claims arising in all prior years that are unpaid at the balance
sheet date, including losses that had been incurred but not yet reported to the
Company. The upper portion of the table shows the cumulative amounts paid as of
successive years with respect to that reserve liability. The lower portion of
the table shows the re-estimated amount of the previously recorded reserves
based on experience as of the end of each succeeding year, including cumulative
payments made since the end of the respective year. The estimate changes as
more
4
<PAGE>
information becomes known about the frequency and severity of claims for
individual years. A redundancy (deficiency) exists when the original reserve
estimate is greater (less) than the re-estimated reserves at December 31, 1995.
In evaluating the information in the table, it should be noted that each
amount includes the effects of all changes in amounts for prior periods. This
table does not present accident or policy year development data. Conditions and
trends that have affected development of the liability in the past may not
necessarily occur in the future. Accordingly, it may not be appropriate to
extrapolate future redundancies or deficiencies based on this table.
<TABLE>
<CAPTION>
As of December 31,
-------------------------------------------------------------------------------------------------
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
(Amounts in thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net reserves for
losses and loss
adjustment
expenses................. $114,158 $178,605 $241,037 $291,408 $301,354 $280,157 $239,203 $214,525 $223,392 $250,990
Paid (cumulative)
as of:
One year later.......... 78,469 112,099 139,874 167,850 181,781 151,866 135,188 143,272 145,664
Two years later......... 106,461 147,641 195,453 227,503 238,030 197,640 184,119 187,641
Three years later....... 117,118 166,477 218,335 249,371 254,884 213,824 197,371
Four years later........ 123,105 175,232 226,384 256,659 261,058 218,067
Five years later........ 125,040 177,328 229,168 259,147 263,011
Six years later......... 125,661 177,938 229,773 259,781
Seven years later....... 125,757 178,178 229,815
Eight years later....... 125,939 178,215
Nine years later........ 126,018
Net reserves re-estimated
as of:
One year later.......... 124,818 173,325 230,249 269,934 285,212 230,991 204,479 204,451 216,684
Two years later......... 125,549 175,876 233,607 269,652 265,618 218,404 204,999 207,089
Three years later....... 126,938 179,157 234,757 259,635 259,624 220,620 203,452
Four years later........ 126,276 180,084 228,909 256,694 264,259 221,118
Five years later........ 126,137 177,591 228,326 260,365 264,127
Six years later......... 125,479 177,335 230,102 260,402
Seven years later....... 125,340 178,364 229,998
Eight years later....... 125,994 178,303
Nine years later........ 126,035
Net Cumulative Redundancy
(deficiency)............. (11,877) 302 11,039 31,006 37,227 59,039 35,751 7,436 6,708
Gross liability - end of year 240,183 215,30 227,499 253,546
Reinsurance recoverable (980) (776) (4,107) (2,556)
-------- -------- -------- --------
Net liability - end of year 239,203 214,525 223,392 250,990
======== ======== ======== ========
Gross re-estimated liability - latest 206,821 209,427 222,953
Re-estimated recoverable - latest (3,369) (2,338) (6,269)
-------- -------- --------
Net re-estimated liability - latest 203,452 207,089 216,684
======== ======== ========
Gross cumulative redundancy 38,140 8,998 8,870
======== ======== ========
</TABLE>
The deficiency in calendar year loss reserves for the year 1986 was
experienced during a period of rapidly escalating premium growth for the
Company. The Company attributes this change to greater than anticipated
inflation in California private passenger automobile claims costs and expenses
experienced generally by California insurers during the mid-1980's and, to a
lesser extent, to the addition and training of claims adjusters and
supervisorial claims personnel to deal with the expanded claims volume resulting
from the Company's significant premium growth. These factors stabilized in
1987. For the calendar years 1988 through 1994, the Company's previously
estimated loss reserves produced redundancies. The Company attributes this
favorable loss development to several factors. First, the Company had completed
its development of a full
5
<PAGE>
complement of claims personnel. Second, during 1988, the California Supreme
Court reversed what was known as the "Royal Globe" doctrine, which, since 1978,
had permitted third party plaintiffs to sue insurers for alleged "bad faith" in
resolving claims, even when the plaintiff had voluntarily agreed to a
settlement. This doctrine had placed undue pressures on claims representatives
to settle legitimate disputes at unfairly high settlement amounts. After the
reversal of Royal Globe, the Company believes that it has been able to achieve
fairer settlements, because both parties are in a more equal bargaining
position. Third, during the years 1988 through 1990, the volume of business
written in the Assigned Risk Program expanded substantially as rates were
suppressed at grossly inadequate levels. Following the Insurance Commissioner's
approval of an 85% temporary rate increase in September 1990, the volume of
assigned risk business has declined by nearly 80%. Many of the claims
associated with the high volume of assigned risk business in the 1988-1990
period were later found to be fraudulent or grossly exaggerated and were settled
in subsequent periods for substantially less than had been initially reserved.
Fourth, a number of factors have combined to produce favorable frequency and
severity trends in recent years, and actuarial assumptions based on historical
trends have proved to be conservative.
Operating Ratios
Loss and Expense Ratios
-----------------------
Loss and underwriting expense ratios are used to interpret the underwriting
experience of property and casualty insurance companies. Losses and loss
adjustment expenses, on a statutory basis, are stated as a percentage of
premiums earned because losses occur over the life of a policy. Underwriting
expenses on a statutory basis are stated as a percentage of premiums written
rather than premiums earned because most underwriting expenses are incurred when
policies are written and are not spread over the policy period. The statutory
underwriting profit margin is the extent to which the combined loss and
underwriting expense ratios are less than 100%. The Company's loss ratio,
expense ratio and combined ratio, and the private passenger automobile industry
combined ratio, on a statutory basis, are shown in the following table. The
1992 ratios exclude the effect of the Proposition 103 settlement. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations." The Company's ratios include lines of insurance other than private
passenger automobile. Since these other lines represent only a small percentage
of premiums written, the Company believes its ratios can be compared to the
industry ratios included in the table.
<TABLE>
<CAPTION>
Year ended December 31,
---------------------------------------------
1995 1994 1993 1992 1991
-------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Loss Ratio.......................... 67.8% 68.4% 61.3% 60.8% 69.8%
Expense Ratio....................... 24.0 24.6 24.8 24.2 24.2
---- ---- ---- ---- ----
Combined Ratio...................... 91.8% 93.0% 86.1% 85.0% 94.0%
==== ==== ==== ==== ====
Industry combined ratio (all
writers) (1)...................... 102.3%(2) 101.3% 101.7% 102.0% 104.7%
Industry combined ratio (excluding
direct writers) (1)............... N.A. 102.5% 103.1% 104.9% 107.2%
</TABLE>
- - --------------------
6
<PAGE>
(1) Source: A.M. Best, Aggregates & Averages (1995), for all property and
casualty insurance companies (private passenger automobile line only, after
policyholder dividends).
(2) Source: A.M. Best, "Best's Review, January 1996," "Review and Preview."
(N.A.) Not available.
Premiums to Surplus Ratio
-------------------------
The following table shows, for the periods indicated, the insurance
companies' statutory ratios of net premiums written to policyholders' surplus.
While there is no statutory requirement applicable to the Company which
establishes a permissible net premium writings to surplus ratio, widely
recognized guidelines established by the National Association of Insurance
Commissioners (NAIC) indicate that this ratio should be no greater than 3 to 1.
<TABLE>
<CAPTION>
Year ended December 31,
-----------------------------------------------
1994 1993 1992 1991 1995
---- ---- ---- ---- ----
(Amounts in thousands, except ratios)
<S> <C> <C> <C> <C> <C>
Net premiums written (1)........... $636,590 $550,838 $484,097 $455,685 $467,523
Policyholders' surplus............. $479,114 $411,898 $314,136 $294,374 $236,140
Ratio.............................. 1.3 to 1 1.3 to 1 1.5 to 1 1.6 to 1 2.0 to 1
</TABLE>
(1) The 1992 amounts exclude the effect of the Proposition 103 settlement.
Risk-Based Capital Requirements
- - -------------------------------
In December 1993, the NAIC adopted a risk-based capital formula for
casualty insurance companies which establishes recommended minimum capital
requirements for casualty companies. The formula has been designed to capture
the widely varying elements of risks undertaken by writers of different lines of
insurance having differing risk characteristics, as well as writers of similar
lines where differences in risk may be related to corporate structure,
investment policies, reinsurance arrangements and a number of other factors.
Based on the formula adopted by the NAIC, the Company has estimated the Risk-
Based Capital Requirements of each of its insurance subsidiaries as of December
31, 1995. Each of the companies exceeded the highest level of recommended
capital requirements.
Investments and Investment Results
The investments of the Company are made by the Company's Chief Financial
Officer under the supervision of the Company's Board of Directors. The Company
follows an investment policy which is regularly reviewed and revised. The
Company's policy emphasizes investment grade, fixed income securities and
maximization of after-tax yields. The Company does not invest with a view to
achieving realized gains, and does not maintain a trading account. However,
sales of securities are undertaken, with resulting gains or losses, in order to
enhance after-tax yield and keep its portfolio in line with current market
7
<PAGE>
conditions. Tax considerations are important in portfolio management, and have
been made more so since 1986 when the alternative minimum tax was imposed on
casualty companies. Changes in loss experience, growth rates and profitability
produce significant changes in the Company's exposure to alternative minimum tax
liability, requiring appropriate shifts in the investment asset mix between
taxable bonds, tax-exempt bonds and equities in order to maximize after-tax
yield. The optimum asset mix is subject to continuous review. At year-end,
approximately 72% of the Company's portfolio, at market values, was invested in
medium to long term, investment grade tax-exempt revenue and municipal bonds.
The average Standard & Poor's rating of the Company's bond holdings was A at
December 31, 1995.
The nominal average maturity of the bond portfolio was 14.0 years at
December 31, 1995, but the call-adjusted average maturity of the portfolio is
shorter, approximately 7.2 years, because holdings are heavily weighted with
high coupon issues which are expected to be called prior to maturity. The
modified duration of the bond portfolio reflecting anticipated early calls was
5.8 years at December 31, 1995. Duration is a measure of how long it takes, on
average, to receive all the cash flows produced by a bond, including
reinvestment of interest. Because of its sensitivity to interest rates, it is a
proxy for a bond's price volatility. The longer the duration, the greater the
price volatility in relation to changes in interest rates.
Holdings of lower than investment grade bonds constitute less than 2% of
total investments. All but $2.7 million of such holdings were downgraded to
their current ratings subsequent to purchase. Equity holdings consist primarily
of perpetual preferred stocks and relatively high yielding electric utility
common stocks on which dividend income is partially tax-sheltered by the 70%
corporate dividend exclusion.
The following table summarizes the investment results of the Company for
the five years ended December 31, 1995.
<TABLE>
<CAPTION>
Year ended December 31,
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
(Amounts in thousands)
<S> <C> <C> <C> <C> <C>
Averaged invested assets (includes
short-term cash investments)(1)....... $827,861 $727,866 $683,874 $649,001 $628,441
Net investment income:
Before income taxes........... 62,964 54,586 54,121 52,994 53,670
After income taxes............ 57,035 49,787 48,223 46,376 46,005
Average annual return on investments:
Before income taxes........... 7.6% 7.5% 7.9% 8.2% 8.5%
After income taxes............ 6.9% 6.8% 7.1% 7.2% 7.3%
Net realized investment gains
(losses) after income taxes........... $ 681 $ (6,485) $ 1,954 $ 3,415 $ 730
Net increase (decrease) in un-
realized gains on all invest-
ments after income taxes......... $ 37,960 $(36,503) $ 556 $ (2,501) $ 20,747
</TABLE>
(1) Fixed maturities at cost, equities at market.
8
<PAGE>
The following table sets forth the composition of the investment portfolio
of the Company at the dates indicated.
<TABLE>
<CAPTION>
December 31,
-----------------------------------------------------------------
1995 1994 1993
---------------- ---------------- ----------------
Amortized Market Amortized Market Amortized Market
Cost Value Cost Value Cost Value
---- ----- ---- ----- ---- -----
(Amounts in thousands)
<C> <C> <C> <C> <C> <C>
Taxable Bonds................... $ 21,518 $ 22,539 $ 18,332 $ 18,128 $ 22,590 $ 24,387
Tax-Exempt State and
Municipal Bonds................ 630,811 663,163 529,592 520,748 455,516 483,022
Sinking Fund Preferred
Stocks......................... 90,080 94,081 108,858 105,421 110,647 117,732
-------- -------- -------- -------- -------- --------
Total Fixed Maturity
Investments.................. 742,409 779,783 656,782 644,297 588,753 625,141
Equity Investments incl.
Perpetual Preferred
Stocks......................... 113,478 114,915 91,726 84,622 85,417 85,598
Short-term Cash Invest-
ments.......................... 28,496 28,496 22,695 22,695 29,741 29,741
-------- -------- -------- -------- -------- --------
Total Investments............... $884,383 $923,194 $771,203 $751,614 $703,911 $740,480
======== ======== ======== ======== ======== ========
</TABLE>
At December 31, 1995, the Company had a net unrealized gain on all investments
of $38,811,000 before income taxes.
Competitive Conditions
The property and casualty insurance industry is highly competitive. The
insurance industry consists of a large number of companies, many of which
operate in more than one state, offering automobile, homeowners and commercial
property insurance, as well as insurance coverage in other lines. Many of the
Company's competitors have larger volumes of business and greater financial
resources than the Company. Based on regularly published statistical
compilations concerning insurance company operations, the Company in 1995 was
the seventh largest writer of private passenger automobile insurance in
California. All of the insurance companies having greater shares of the
California market sell insurance either directly or through exclusive agents to
policyholders, rather than through independent agents.
The property and casualty insurance industry is highly cyclical, character-
ized by periods of high premium rates and shortages of underwriting capacity
followed by periods of severe price competition and excess capacity. In the
Company's view, competitive pressures have become more pronounced in the last
several years. The current level of profits makes the market attractive for new
companies, although some of the small companies who entered the California
private passenger automobile market in recent years have already experienced
unsatisfactory results.
Price and reputation for service are the principal means by which the
Company competes with other automobile insurers. The Company believes that it
has a good reputation for service, and it has, historically, been among the
9
<PAGE>
lowest-priced insurers doing business in California according to surveys
conducted by the California Department of Insurance. In the most recent survey
conducted in 1995, the Company's rates for most classes of insureds were among
the lowest available in most territories throughout the state. In addition to
good service and competitive pricing, for those insurers dealing through
independent agents, as the Company does, the marketing efforts of agents is a
means of competition.
The current and future competitive climate for private passenger automobile
insurance in California remains uncertain. All rates charged by private
passenger automobile insurers are subject to the prior approval of the
California Insurance Commissioner. Newly proposed revised rating factor
regulations have recently been issued but have not yet been approved, and a bill
has been introduced in the California legislature which would codify the rating
factors currently in effect. See "Underwriting" and "Regulation - Automobile
Insurance Rating Factor Regulations."
Reinsurance
The Company no longer maintains reinsurance for its liability coverages.
Effective January 1, 1994, the Company terminated its liability reinsurance
coverage with Employers Reinsurance Corporation (ERC) because of rising premiums
and underutilization of such coverage. The Company regularly evaluates the need
for liability reinsurance.
The Company maintains property reinsurance under a treaty which was
effective April 1, 1995 with National Reinsurance Corporation, which is rated A+
by A.M. Best & Co. The treaty provides $900,000 coverage in excess of $100,000
for each risk subject to a maximum of $2,700,000 for any one occurrence. A
second layer of coverage provides an additional $1,000,000 in excess of the
first $1,000,000 per risk subject to a maximum of $2,000,000 for any one
occurrence.
Prior to February 1, 1995, ERC provided catastrophe reinsurance for
property and auto physical damage business. Under the treaty, ERC agreed to pay
95% of $9,000,000 in excess of $1,000,000 for any single occurrence and 95% of
$18,000,000 for all occurrences in one calendar year. Effective February 1,
1995, the treaty with ERC was amended to provide coverage for 95% of $7,500,000
in excess of $5,000,000 each occurrence subject to an aggregate limit of 95% of
$15,000,000 for all occurrences. Effective April 1, 1995 this treaty was
replaced with a new catastrophe treaty covering all physical damage and property
lines with several reinsurers arranged through E.W. Blanch Company, a
reinsurance intermediary. The main reinsurers are rated A or better by A.M.
Best. Under the new treaty, the first layer of protection is 95% of $7,500,000
in excess of $10,000,000, for a single occurrence, with a second layer providing
95% of $12,500,000 in excess of $17,500,000.
If the reinsurers were unable to perform their obligations under the
reinsurance treaty, the Company would be required, as primary insurer, to
discharge all obligations to its insureds in their entirety.
10
<PAGE>
Regulation
The Company's business in California is subject to regulation and
supervision by the DOI, which has broad regulatory, supervisory and
administrative powers.
The powers of the DOI primarily include the prior approval of insurance
rates and rating factors; the standards of solvency which must be met and
maintained; the licensing of insurers and their agents; the nature of and
limitation of insurers' investments; the issuance of securities by insurers;
periodic examinations of the affairs of insurers; the annual and other reports
required to be filed on the financial condition of such insurers or for other
purposes; and the establishment of reserves required to be maintained for
unearned premiums, losses, and other purposes. The regulation and supervision
by the DOI are designed principally for the benefit of policyholders and not for
insurance company shareholders. The DOI conducts periodic examinations of the
Company's insurance subsidiaries. The DOI recently conducted an examination of
the California insurance subsidiaries as of December 31, 1994. The reports on
the results of that examination have not yet been issued, but the drafts
recently submitted to the Company recommend no adjustments to the statutory
financial statements as filed by the Company.
The Georgia and Illinois insurance subsidiaries are subject to the
regulatory powers of the insurance departments of those two states. Those
powers are similar to the regulatory powers in California enumerated above.
Generally, the regulations relate primarily to standards of solvency and are
designed for the benefit of policyholders and not for insurance company
shareholders. The Georgia DOI recently conducted an examination of Mercury
Insurance Company of Georgia and Mercury Indemnity Company of Georgia as of
December 31, 1994. The reports on that audit have not been issued but the
auditors have indicated there will be no changes recommended to the statutory
financial statements as filed. The DOI of Illinois has just begun an
examination of Mercury Insurance Company of Illinois and Mercury Indemnity
Company of Illinois as of December 31, 1995.
In California, insurance rates have required prior approval since November
1989. Georgia is also a prior approval state, while Illinois only requires that
rates be filed with the Department of Insurance prior to their use. In each
state, the insurance code provides that rates must not be "excessive, inadequate
or unfairly discriminatory."
The operations of the Company are dependent on the laws of the States of
California, Georgia and Illinois, and changes in those laws can materially
affect the revenue and expenses of the Company. The Company retains its own
legislative advocates in California. The Company also makes financial
contributions to officeholders and candidates. In 1995 and 1994, those
contributions amounted to $209,000 and $434,000, respectively. The Company
believes in supporting the political process and intends to continue to make
such contributions in amounts which it determines are appropriate.
11
<PAGE>
Insurance Guarantee Association
-------------------------------
In 1969, the California Insurance Guarantee Association (the "Association")
was created pursuant to California law to provide for payment of claims for
which insolvent insurers of most casualty lines are liable but which cannot be
paid out of such insurers' assets. The Company is subject to assessment by the
Association for its pro-rata share of such claims based on premiums written in
the particular line in the year preceding the assessment by insurers writing
that line of insurance in California. Such assessments are based upon estimates
of losses to be incurred in liquidating an insolvent insurer. In a particular
year, the Company cannot be assessed an amount greater than 1% of its premiums
written in the preceding year. The only assessment imposed during the past five
years was an immaterial amount in 1994. Assessments are recouped through a
mandated surcharge to policyholders the year after the assessment. Insurance
subsidiaries in Illinois and Georgia are subject to the provisions of similar
insurance guaranty associations.
Holding Company Act
-------------------
The Company's California subsidiaries are subject to regulation by the DOI
pursuant to the provisions of the California Insurance Holding Company System
Regulatory Act (the "Holding Company Act"). Pursuant to the Holding Company
Act, the DOI may examine the affairs of each company at any time. The Holding
Company Act requires disclosure of any material transactions by or among the
companies. Certain transactions defined to be of an "extraordinary" type may
not be effected without the prior approval of the DOI. Such transactions
include, but are not limited to, sales, purchases, exchanges, loans and
extensions of credit, and investments made within the immediately preceding 12
months involving, in the net aggregate, more than the lesser of 5% of the
company's admitted assets or 25% of surplus as to policyholders, as of the
preceding December 31. An extraordinary transaction also includes a dividend
which, together with other dividends or distributions made within the preceding
12 months, exceeds the greater of 10% of the insurance company's policyholders'
surplus as of the preceding December 31 or the insurance company's net income
for the preceding calendar year. An insurance company is also required to
notify the DOI of any dividend after declaration, but prior to payment.
The Holding Company Act also provides that the acquisition or change of
"control" of a California domiciled insurance company or of any person who
controls such an insurance company cannot be consummated without the prior
approval of the Insurance Commissioner. In general, a presumption of "control"
arises from the ownership of voting securities and securities that are
convertible into voting securities, which in the aggregate constitute 10% or
more of the voting securities of a California insurance company or of a person
that controls a California insurance company, such as Mercury General. A person
seeking to acquire "control," directly or indirectly, of the Company must
generally file with the Commissioner an application for change of control
containing certain information required by statute and published regulations and
provide a copy of the application to the Company. The Holding Company Act also
effectively restricts the Company from consummating certain reorganizations or
mergers without prior regulatory approval. The insurance subsidiaries in
Georgia and Illinois are subject to holding company acts in those states, the
provisions of which are substantially similar to those of California.
12
<PAGE>
Assigned Risks
--------------
Automobile liability insurers in California are required to sell bodily
injury liability, property damage liability, medical expense and uninsured
motorist coverage to a proportionate number (based on the insurer's share of the
California automobile casualty insurance market) of those drivers applying to
the DOI for placement as "assigned risks." Drivers seek placement as assigned
risks because their driving records or other relevant characteristics make them
difficult to insure in the voluntary market. During the last five years,
approximately 1.2% of the direct automobile insurance premium written was for
assigned risk business. In 1995, assigned risks represented 0.8% of total
automobile direct premiums written and earned. Premium rates for assigned risk
business are set by the DOI. In October, 1990 more stringent rules for gaining
entry into the plan were approved, resulting in a substantial reduction in the
number of assigned risks insured by the Company since 1991. Effective January
1, 1994, the Insurance Code requires that rates established for the Plan be
adequate to support the Plan's losses and expenses. The last rate increase
approved by the Commissioner approximated 4.8% and became effective June 1,
1995.
No-Fault Automobile Insurance Initiative/Legislation
----------------------------------------------------
A proposed No-Fault automobile insurance measure, Proposition 200, has been
qualified and is on the ballot to be voted on in California's primary elections
on March 26, 1996. Entitled the "Pure No-Fault Insurance Act," the measure
would radically change the reparations system for bodily injury, removing most
bodily injury claims from the judiciary/tort system. Instead of requiring
insurance coverage for injuries caused to others as a result of the insured's
negligence or fault, automobile insurers would be required to offer, and all
motor vehicle owners would be required to obtain, a Personal Injury Protection
Policy (PIP) which would cover the bodily injury losses of all occupants of a
vehicle involved in an accident, irrespective of who is at fault for the
accident. The present tort system for dealing with property damage liability
would not be changed.
All automobile insurers would be required to offer PIP coverage ranging
from a minimum of $50,000 to $1,000,000 for each occupant of the insured
vehicle. Insurers, such as the Company, who write over $100 million of
automobile insurance premiums in the state of California would be required to
offer up to $5.0 million of coverage for each occupant of the insured vehicle.
Required benefits would cover all medical and rehabilitation costs, death
benefits up to a maximum of $200,000 and lost wage benefits up to a maximum of
$2500 per month.
All vehicle owners would be required to offer proof of insurance annually
to the Department of Motor Vehicles in order to register or reregister a
vehicle.
The right to sue to recover damages for bodily injury or death would no
longer be allowed, except for accidents caused by drunk drivers or drivers
committing a felony. Unlike damages sought and paid under the tort system,
where the injured person recovers his losses from the insurer of the at-fault
driver and, in addition, is typically compensated for pain and suffering as
well, under the "Pure No-Fault" law, the injured person would recover only his
actual economic losses, including lost wages, from his own insurer under the PIP
13
<PAGE>
coverage and would receive no compensation for pain and suffering. Insurers
would, however, be required to offer up to $250,000 of coverage for pain and
suffering resulting from a permanent and serious injury.
While fault would no longer be a factor in determining responsibility for
injuries and losses, a determination of fault would still be required to settle
property damage claims and to classify drivers for the establishment of
appropriate premiums.
The initiative has received little, if any, support from the insurance
industry, and the Company has not supported it. Contrary to the stated
expectation of the Proposition's backers that enactment of the measure would
reduce losses and, therefore, premium rates, the Company is uncertain that such
a reduction in loss costs and rates would materialize. The proposition makes no
provision for a reduction in automobile insurance premium rates.
The opponents have mounted a well-financed media campaign opposing the no-
fault proposition. An earlier no-fault proposition was on the California ballot
in November 1988 and was defeated. No-fault legislation has been frequently
introduced in the California legislature, but all such proposals have met
serious opposition and have been defeated.
If the no-fault initiative passes, and is not nullified by an initiative
planned by the trial lawyers to be on the November 1996 general election ballot,
it would become effective on July 1, 1997. Passage would require substantial
changes in the Company's loss settlement procedures, and the Company cannot
predict the effect such changes would have on future loss experience, rates and
profitability.
Automobile Insurance Rating Factor Regulations
----------------------------------------------
Commencing November 8, 1989, Proposition 103 required that property and
casualty insurance rates must be approved by the Commissioner prior to their
use, and that no rate shall be approved which is excessive, inadequate, unfairly
discriminatory or otherwise in violation of the provisions of the initiative.
The proposition specified three statutory factors required to be applied in
"decreasing order of importance" in determining rates for private passenger
automobile insurance: (1) the insured's driving safety record, (2) the number
of miles the insured drives annually, and (3) the number of years of driving
experience of the insured. The new law also gave the Commissioner discretion to
adopt other factors by regulation that have a substantial relationship to risk
of loss. The new statute further provided that insurers are required to give a
20% discount to "good drivers," as defined, from rates that would otherwise be
charged to such drivers and that no insurer may refuse to insure a "good
driver."
The Company, and most other insurers, historically charged different rates
for residents of different geographical areas within California. The rates for
urban areas, particularly in Los Angeles, have been generally substantially
higher than for suburban and rural areas. The Company's geographical rate
differentials have been derived by actuarial analysis of the claims costs in a
given area.
14
<PAGE>
On July 26, 1990, the DOI promulgated interim cost-based rating factor
regulations which are still in effect. These regulations include both the three
mandatory rating factors and a number of optional rating factors that are
applied on a sequentially weighted basis. Pursuant to those regulations, all
writers of private passenger automobile insurance, including the Company, were
required to submit new rating classification plans in October 1990. In October
1990 the Company filed its new rating plan, which was approved on December 21,
1990.
The present Commissioner, who took office in January 1995, conducted
hearings in April 1995 to consider the appropriate methodology and weighting of
the mandated and optional rating factors. In September 1995, he issued for
comment newly proposed rating factor regulations which had the effect of
tempering certain factors, particularly loss experience by territory, thus
narrowing geographical rating differentials. Further hearings were conducted in
December 1995. The Company and other insurers submitted comments and testimony
at those hearings which, in general, argued that the tempering of the weight
given to differences in geographical loss experience would result in rates which
would lead to dislocations in the automobile insurance market-place and would be
unlawfully discriminatory. On March 7, 1996, the Commissioner issued revised
rating factor regulations which are substantially unchanged from those proposed
in September 1995. Following a fifteen day comment period, the regulations will
be submitted to the Office of Administrative law, and, if approved and formally
promulgated, would require the filing by automobile insurers of new rating plans
unless legal action is undertaken to restrain their enforcement. The impact of
the new regulations, if approved, is not determinable at this time.
In the meantime, a bill has been introduced in the California legislature
which would codify the present cost-based rating factor regulations which have
been applied with minimal disruption and dislocation since they were first
promulgated in July 1990.
Under the Company's prior rating plan as well as the new plans approved in
1994 and 1995, the weights applied to the various rating factors conform to
present regulations and are cost-based as determined by the mandated sequential
regression analysis, and are not artificially "tempered." Since this
methodology captures the widely varying loss experience of different areas,
urban, suburban and rural, the historically wide geographical rate differentials
remain substantially unchanged.
Item 2. Properties
----------
The home office of the California insurance subsidiaries and the Company's
computer facilities are located in Brea, California in an 80,000 sq.ft. office
building owned by the Company.
Since December 1986, Mercury General's executive offices are located in a
40,000 sq. ft. office building owned by Mercury Casualty Company. The Company
occupies approximately 95% of the building and leases the remaining office space
to others.
In October 1992, the Company purchased a 158,000 square foot office
building in Brea, California. The Company occupies approximately 37% of the
15
<PAGE>
facility and leases the remaining office space to others.
The Company leases most of its other California offices under short-term
leases. Office location is not material to the Company's operations, and the
Company anticipates no difficulty in extending these leases or obtaining
comparable office space.
Item 3. Legal Proceedings
-----------------
The Company is from time to time named as a defendant in various lawsuits
incidental to its insurance business. In most of these actions, plaintiffs
assert claims for punitive damages which are not insurable under California
judicial decisions. The Company vigorously defends these actions, unless a
reasonable settlement appears appropriate. The Company believes that adverse
results, if any, in the actions currently pending should not have a material
effect on the Company's operations or financial position.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
No matters were submitted to a vote of security holders by the Company
during the fourth quarter of the fiscal year covered by this report.
EXECUTIVE OFFICERS OF THE COMPANY
The following table sets certain information concerning the executive
officers of the Company as of March 25, 1996:
<TABLE>
<CAPTION>
Name Age Position
- - ---- --- --------
<S> <C> <C>
George Joseph 74 Chairman of the Board and Chief
Executive Officer
Michael D. Curtius 46 President and Chief Operating Officer
Cooper Blanton, Jr. 69 Executive Vice President
Keith L. Parker 68 Vice President and Chief Financial Officer
Bruce E. Norman 47 Vice President in charge of Marketing
Joanna Y. Moore 40 Vice President and Chief Claims Officer
Kenneth G. Kitzmiller 49 Vice President in charge of Underwriting
Donna J. Moore 40 Vice President and Controller
Judy A. Walters 49 Secretary
</TABLE>
Mr. Joseph, Chief Executive Officer of the Company and Chairman of its
Board of Directors, has served in those capacities since 1961. Mr. Joseph has
more than 40 years experience in all phases of the property and casualty
insurance business.
Mr. Curtius, President and Chief Operating Officer, has been employed by
the Company since 1977. In October 1987, Mr. Curtius was named Vice President
and Chief Claims Officer, and in August 1991 he was appointed Executive Vice
President. He was elected President and Chief Operating Officer of Mercury
General and its four California insurance company subsidiaries in May 1995. Mr.
Curtius has over 20 years of experience in the insurance industry.
16
<PAGE>
Mr. Blanton, Executive Vice President, joined the Company in 1966 and
supervised its underwriting activities from 1967 until September 1995. He was
appointed Executive Vice President of Mercury Casualty and Mercury Insurance in
1983 and was named Executive Vice President of Mercury General in 1985. In May
of 1995 he was named President of the Georgia and Illinois insurance company
subsidiaries. Mr. Blanton has over 30 years of experience in underwriting and
other aspects of the property and casualty insurance business.
Mr. Parker, Vice President and Chief Financial Officer, has been employed
by the Company or its subsidiaries since 1970 and has held his present position
since October 1985. Mr. Parker has over 40 years of investment management
experience and has been primarily responsible for management of the Company's
investment portfolio since 1972.
Mr. Norman, Vice President in charge of Marketing, has been employed by the
Company since 1971. Mr. Norman was named to this position in October 1985, and
has been a Vice President of Mercury Casualty since 1983. Mr. Norman has
supervised the selection and training of agents and managed relations between
agents and the Company since 1977.
Ms. Joanna Moore, Vice President & Chief Claims Officer, joined the Company
in the claims department in March 1981. She was named Vice President of Claims
of Mercury General in August 1991 and has held her present position since July
1995.
Mr. Kitzmiller, Vice President in charge of Underwriting, has been employed
by the Company in the underwriting department since 1972. In August 1991 he
was appointed Vice President of Underwriting of Mercury General and has
supervised the underwriting activities of the Company since early 1996.
Ms. Donna Moore, Vice President and Controller, joined the Company in June
1983 as its Controller. She was appointed Vice President in October 1985. Ms.
Moore has over 15 years of experience in the insurance industry and is a
Certified Public Accountant in the state of California.
Ms. Walters has been employed by the Company since 1967, and has served as
its Secretary since 1982.
17
<PAGE>
PART II
Item 5. Market for the Registrant's Common Equity and Related Security Holder
---------------------------------------------------------------------
Matters
-------
Price Range of Common Stock
The following table shows the price range per share in each quarter as
reported on the Nasdaq National Market. These quotations do not include
adjustments for retail mark-ups, mark-downs or commissions.
<TABLE>
<CAPTION>
1994 High Low
------- -------
<S> <C> <C>
1st Quarter......................... $31.500 $26.750
2nd Quarter......................... $30.750 $25.500
3rd Quarter......................... $30.000 $26.750
4th Quarter......................... $30.500 $27.000
<CAPTION>
1995 High Low
------- -------
<S> <C> <C>
1st Quarter......................... $34.250 $28.250
2nd Quarter......................... $35.000 $28.750
3rd Quarter......................... $39.000 $31.750
4th Quarter......................... $49.750 $37.750
<CAPTION>
1996
<S> <C> <C>
1st Quarter (January 1 - March 22).. $52.000 $41.625
</TABLE>
Dividends
Following the public offering of its Common Stock in November 1985, the
Company has paid regular quarterly dividends on its common stock. On February
2, 1996, the Directors declared a $0.24 quarterly dividend ($.96 annually)
payable on March 28, 1996 to stockholders of record on March 15, 1996. The
dividend rate has been increased twelve times since dividends were initiated in
January, 1986, at an annual rate of $0.10, adjusted for the two-for-one stock
split in September 1992. For financial statement purposes, the Company records
dividends on the declaration date. The Company expects to continue the payment
of quarterly dividends. The continued payment and amount of cash dividends will
depend upon, among other factors, the Company's operating results, overall
financial condition, capital requirements and general business conditions.
As a holding company, Mercury General is largely dependent upon dividends
from its subsidiaries to pay dividends to its shareholders. These subsidiaries
are subject to state laws that restrict their ability to distribute dividends.
California law permits a casualty insurance company to pay dividends and
advances within any 12-month period, without any prior regulatory approval, in
an amount up to the greater of ten percent of statutory surplus at the preceding
December 31 or net income for the calendar year preceding the date the dividend
is paid. Under this test, Mercury Casualty and California Automobile Insurance
Company,
18
<PAGE>
the direct California insurance subsidiaries of the Company, are entitled to pay
dividends to Mercury General during 1996 of up to approximately $50.9 million.
See Note 8 of Notes to Consolidated Financial Statements and "Business --
Regulation -- Holding Company Act."
Shareholders of Record
The approximate number of holders of record of the Company's Common Stock
as of March 1, 1996 was 218. The approximate number of beneficial holders as of
March 21, 1996 was 4,618 according to U.S. Stock Transfer Corporation, the
Company's transfer agent.
19
<PAGE>
Item 6. Selected Consolidated Financial Data
------------------------------------
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------------------------------
1995 1994 1993 1992 1991
-------- --------- -------- -------- ---------
(Amounts in thousands, except per share data)
<S> <C> <C> <C> <C> <C>
Income Data:
Premiums earned.......................... $616,326 $529,390 $474,093 $455,508 $473,532
Net investment income.................... 62,964 54,586 54,121 52,994 53,670
Premium finance fees..................... 1,840 1,947 1,828 1,438 1,138
Realized investment gains(losses)........ 1,048 (9,853) 3,006 5,174 1,106
Other.................................... 1,501 1,176 716 168 49
-------- -------- -------- -------- --------
Total Revenues.................... 683,679 577,246 533,764 515,282 529,495
-------- -------- -------- -------- --------
Losses and loss adjustment
expenses............................... 416,556 360,557 289,208 276,088 328,615
Policy acquisition costs................. 128,743 112,682 99,738 94,672 98,943
Other operating expenses................. 22,017 20,566 18,564 16,688 16,046
Impact of rate refund.................... -- -- -- 18,621 2,102
Interest................................. 2,040 1,025 793 1,192 1,577
-------- -------- -------- -------- --------
Total Expenses.................... 569,356 494,830 408,303 407,261 447,283
-------- -------- -------- -------- --------
Income before income taxes............... 114,323 82,416 125,461 108,021 82,212
Income taxes............................. 24,022 16,121 29,252 24,695 16,719
-------- -------- -------- -------- --------
Net Income........................ $ 90,301 $ 66,295 $ 96,209 $ 83,326 $ 65,493
======== ======== ======== ======== ========
Per Share Data:
Net income per share..................... $ 3.31 $ 2.43 $ 3.52 $ 3.06 $ 2.42
======== ======== ======== ======== ========
Dividends paid $ .80 $ .70 $ .60 $ .50 $ .40
======== ======== ======== ======== ========
<CAPTION>
December 31,
------------------------------------------------------
1995 1994 1993 1992 1991
---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Balance Sheet Data:
Total investments........................ $ 923,194 $751,614 $740,480 $661,672 $640,981
Premiums receivable...................... 58,902 48,741 38,227 35,454 37,649
Total assets............................. 1,081,656 911,693 863,962 775,402 765,867
Unpaid losses and loss adjust-
ment expenses........................... 253,546 227,499 215,301 240,183 280,933
Unearned premiums........................ 168,404 148,654 128,828 117,524 117,417
Notes payable............................ 25,000 25,000 15,000 15,000 16,500
Deferred income tax liability
(asset)................................ 10,158 (10,190) 8,758 466 (13,969)
Shareholders' equity..................... 565,188 457,161 450,275 353,704 277,209
Book value per share..................... 20.67 16.75 16.44 12.95 10.20
</TABLE>
__________________
20
<PAGE>
Item 7. Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations
---------------------
Overview
- - --------
The operating results of property and casualty insurance companies are
subject to significant fluctuations from quarter-to-quarter and from year-to-
year due to the effect of competition on pricing, the frequency and severity of
losses, including the effect of natural disasters on losses, general economic
conditions, the general regulatory environment in those states in which an
insurer operates, state regulation of premium rates and other factors such as
changes in tax laws. The property and casualty industry has been highly
cyclical, with periods of high premium rates and shortages of underwriting
capacity followed by periods of severe price competition and excess capacity.
The Company did business only in the state of California until 1990, when
it began operations in Georgia and Illinois. During 1995, approximately 98% of
its direct premiums written were in California. Since November 1988, the
Company's California insurance operations have been subject to the provisions of
Proposition 103, a state-wide initiative passed by the California voters. The
provision of Proposition 103 that has the most significant current impact on the
Company is a requirement that no rate may be used by a property and casualty
insurer in California after November 8, 1989 that has not been approved by the
California Insurance Commissioner (the "Commissioner").
In February 1994, the Commissioner approved new rates which were designed
to improve the Company's competitive position for new insureds. These rate
changes, which became effective on May 1, 1994, provided for decreases in
premium rates for insureds new to the Company or its agents. Further rate
modifications were approved and made effective on October 15, 1995. The 1994
and 1995 rate changes have resulted in a substantial increase in new business
being submitted to the Company. Automobile policies in force in California have
increased by approximately 87,000 to 391,898 since the new rates were first
established, an annual rate of increase of over 18%, compared with an annualized
growth rate of 9.1% over the prior eighteen month period. Net premiums written
since July 1, 1994 have increased at a compounded rate of 15.6%, compared with
average annual premium growth of 3.7% over the preceding five and one-half years
following passage of Proposition 103 in 1988.
Results of Operations
Year Ended December 31, 1995 Compared to Year Ended December 31, 1994
---------------------------------------------------------------------
Premiums earned in 1995 increased 16.4%, primarily reflecting unit growth.
Average premium per policy for the year was substantially unchanged. Net
premiums written in 1995 increased 15.6% over a year earlier, continuing a
growth trend which began in the second quarter of 1993.
The loss ratio in 1995 (loss and loss adjustment expenses related to
premiums earned) was 67.6%, compared with 68.1% in 1994. In contrast to the
previous several years, the 1995 and 1994 loss ratios reflect smaller
contributions from favorable loss reserve development from prior periods.
21
<PAGE>
The expense ratio (policy acquisition costs and other operating expenses
related to premiums earned) was 24.4%, compared with 25.2% in 1994. The
improvement reflects both economies related to greater premium volume and
smaller provisions for agent and employee incentive bonuses in 1995.
Total losses and expenses, excluding interest expense of $2.0 million, were
$567.4 million, resulting in an underwriting gain for the period of $49.0
million, compared with an underwriting gain of $35.6 million in 1994.
Investment income in 1995 was $63.0 million, compared with $54.6 million in
1994. The after-tax yield on average investments of $827.9 million (fixed
maturities at cost, equities at market) was 6.89%, compared with 6.84% on
average investments of $727.9 million in 1994. The effective tax rate on
investment income was 9.4% in 1995, compared with 8.8% in 1994. The slightly
higher tax rate reflects an increase in the proportion of investment income
derived from dividend income on equities, principally perpetual preferred
stocks, compared to tax-exempt income. The maintenance of above-average yields
during a period of declining interest rates is, in part, the result of the bond
restructuring program undertaken in 1994 when bonds acquired in lower interest
rate environments were sold with proceeds reinvested at significantly higher
rates. The redemption of bonds acquired during higher interest periods has been
a negative influence on realized yields which will continue in 1996 and 1997.
Bonds matured and called in 1995 totaled $71.0 million, compared with $53.4
million in 1994, and approximately $83.1 million of calls and maturities are
expected in 1996. Average yields being obtained during the first quarter of
1996 on new investments are some 50-75 basis points lower than the average 1995
portfolio yield.
Realized investment gains in 1995 were $1.0 million, compared with realized
losses of $9.9 million in 1994. The 1994 losses reflect principally yield-
enhancing swaps of both fixed maturities and equity securities, including
perpetual preferred stocks, undertaken to recapture capital gains taxes paid in
prior years. The 1995 gains arose in part from the early redemption of fixed-
maturity investments.
The income tax provision of $24.0 million in 1995 represented an effective
tax rate of 21.0%, compared with an effective rate of 19.6%, in 1994. The
increase in the rate is attributable principally to the realization of capital
gains in 1995, in contrast to the realization of losses in 1994.
Net income in 1995 was $90.3 million, or $3.31 per share, compared with
$66.3 million, or $2.43 per share, in 1994. Per share results are based on 27.3
million average shares in both years.
Year Ended December 31, 1994 Compared to Year Ended December 31, 1993
---------------------------------------------------------------------
Premiums earned in 1994 increased 11.7%, reflecting unit growth. Average
premium per policy was substantially unchanged by the May 1, 1994 rate
revisions. Direct premiums written in the first half of 1994 increased 10.7%
over a year earlier, continuing the growth trend which began in the second
quarter of 1993. During the last half of 1994, this increase accelerated to
14.1% over the prior year as a result of the May 1, 1994 rate revisions.
22
<PAGE>
The loss ratio in 1994 was 68.1%, compared with 61.0% in 1993. The higher
loss ratio in 1994 reflects a much smaller contribution from favorable loss
reserve development from prior periods and a reduction in the estimate of
salvage and subrogation recoverable for prior accident years. The major
earthquake which struck Southern California on January 17, 1994 resulted in net
loss claims, after reinsurance recoveries, of approximately $1.2 million, which
added less than 0.25% to the 1994 loss ratio. Earthquake losses were immaterial
as the Company writes only a small amount of homeowners' insurance.
Approximately one half of the net earthquake losses incurred were related to the
Company's principal line, automobile insurance, while the other half was related
to the homeowners' line.
The expense ratio (policy acquisition costs and other expenses related to
premiums earned) was 25.2%, compared with 25.0% in 1993.
Total losses and expenses, excluding interest expense of $1,025,000, were
$493.8 million, resulting in an underwriting gain for the period of $35.6
million, compared with an underwriting gain of $66.6 million in 1993.
Investment income in 1994 was $54.6 million, compared with $54.1 million in
1993. The after-tax yield on average investments of $727.9 million (fixed
maturities at cost, equities at market) was 6.84%, compared with 7.05% on
average investments of $683.9 million in 1993. The effective tax rate on
investment income was 8.8% in 1994, compared with 10.9% in 1993, reflecting an
increase in the proportion of tax-exempt interest income. The decline in
realized investment yields reflects principally the redemption and maturity of
bonds and preferred stocks acquired in higher interest rate environments.
Realized investment losses in 1994 were $9.9 million, compared with
realized gains of $3.0 million in 1993. The losses reflect principally yield-
enhancing swaps of both fixed maturities and equity securities, including
perpetual preferred stocks. The 1993 gains arose in significant part from the
redemption of fixed-maturity investments. The realized capital losses were
undertaken to recapture capital gains taxes paid in prior years.
The income tax provision of $16.1 million in 1994 represented an effective
tax rate of 19.6%, compared with an effective rate of 23.3%, in 1993. The
decrease in the rate is attributable principally to the decrease in fully
taxable underwriting income, and the resulting higher proportion of tax exempt
investment income.
Net income in 1994 was $66.3 million, or $2.43 per share, compared with
$96.2 million, or $3.52 per share, in 1993. Per share results are based on 27.3
million average shares in 1994 and 27.4 million average shares in 1993.
Year Ended December 31, 1993 Compared to Year Ended December 31, 1992
---------------------------------------------------------------------
Premiums earned in 1993 increased 4.1%. The year-to-year increase in the
final quarter was 8.4%, following sequential quarterly increases (decreases) of
(0.4%), 2.7% and 5.7%. Premiums written in 1993 increased 6.2%, with the
quarterly pattern increasing sequentially throughout the year. This improvement
largely reflects new business submitted by newly appointed agents who had
previously represented other insurers which had withdrawn from the California
23
<PAGE>
market. Premium rates were unchanged from a year earlier.
The loss ratio in 1993 was 61.0%, compared with 60.6% in 1992. The 1992
ratio was computed without adjustment for the impact of the Proposition 103 rate
refund provision. The historically low loss ratios in both years reflect,
principally, the seasoned characteristics of the Company's existing book of
business and the continued favorable loss severity trends in the automobile
bodily injury line in California. Reduced exposure to unprofitable assigned
risk business contributed to the improvement, as did continued favorable loss
reserve development. The more competitive rates which will apply to new
business effective on May 1, 1994 are expected to produce an increase in the
proportion of new, unseasoned risks insured by the Company. Loss experience on
new business is characteristically less favorable than that of seasoned
business.
The expense ratio (policy acquisition costs and other expenses related to
premiums earned) was 25.0% in 1993, compared with 24.5% in 1992. The expense
ratio has remained at or below 25% in each of the last five years.
Total losses and expenses, excluding interest expense of $793,000, were
$407.5 million, resulting in an underwriting gain for the year of $66.6 million,
or 14.0% of premiums earned, compared with an underwriting gain of $68.1 million
in 1992, or 14.9% of premiums earned in 1992. The latter result excludes a
provision of $18.6 million for rate refunds relating to the Proposition 103 rate
rollback mandate. The rollback issue was resolved in May 1992 by a negotiated
settlement reached with the California Department of Insurance (DOI). Refunds
were completed in August 1992, fully extinguishing the Company's Proposition 103
rollback liability.
Net investment income in 1993 was $54.1 million, compared with $53.0
million in 1992. Average invested assets in 1993 (fixed maturities at
cost/equities at market) were $683.9 million, a year-to-year increase of 5.4%.
Reflecting the declining trends in interest rates in 1993, the average pre-tax
yield for the period was 7.9% in 1993 and 8.2% in 1992. The effective tax rate
on investment income was 10.9% in 1993 and 12.5% in 1992. The year-to-year
decrease of approximately 25 basis points in the overall portfolio yield was
significantly related to the maturity and call of approximately $134.4 million
of relatively high coupon fixed maturity investments acquired in prior higher
interest rate environments.
Realized investment gains were $3.0 million in 1993 and $5.2 million in
1992. The 1993 gains arose in significant part from calls of fixed-maturity
investments. Sales of equity securities in 1993, particularly in the fourth
quarter, produced losses of $1.7 million, partially offsetting the taxable gains
generated by the early call of fixed maturity investments.
Income before taxes was $125.5 million, compared with $108.0 million in
1992. The provision for final settlement of the Proposition 103 refund
obligation in 1992 reduced income before income taxes by $18.6 million.
The income tax provision in 1993 was $29.3 million, an effective tax rate
of 23.3%, compared with a tax provision of $24.7 million, an effective rate of
22.9%, in the corresponding 1992 period. Excluding the impact of the rate
refund
24
<PAGE>
in 1992, the effective tax rate in 1992 was 24.5%. The effective tax rate is
lower than the statutory corporate rate, 35% in 1993 and 34% in 1992, because a
substantial part of net investment income is derived from tax-exempt bonds and
dividends entitled to the corporate dividend exclusion. Except for the increase
in the corporate statutory tax rate to 35% from 34%, effective as of January 1,
1993, the impact of the Omnibus Tax Reconciliation Act of 1993 was
insignificant.
Net income in 1993 was $96.2 million, or $3.52 per share, compared with
$83.3 million, or $3.06 per share, in 1992. Per share results are based on 27.4
million average shares in 1993 and 27.2 million shares in 1992. The provision
for final settlement of rate refunds in the 1992 period reduced net income by
$12.3 million, or $.45 per share.
Liquidity and Capital Resources
Net cash provided from operating activities in 1995 was $136.6 million,
while funds derived from the sale, redemption or maturity of investments was
$484.5 million, of which approximately 75% was represented by the sale of equity
securities. The amortized cost of fixed-maturity investments increased by $85.6
million during the year. Equity investments, including perpetual preferred
stocks, increased by $21.8 million at cost, and short-term cash investments
increased by $5.8 million. The amortized cost of fixed-maturities available for
sale that were sold, called or matured during the year was $118.8 million.
The market value of all investments (fixed-maturities and equity
securities) held at market as "Available for Sale" exceeded the amortized cost
of $855.9 million at December 31, 1995 by $38.8 million. That unrealized gain,
reflected in shareholders' equity net of applicable tax effects, was $25.2
million at December 31, 1995 compared with an unrealized loss of $12.7 million
at December 31, 1994. The increase in market values since December 31, 1994
reflects principally the substantial decline in intermediate and long term
interest rates which occurred during the period.
The Company's cash and short term investments totaled $31.4 million at
December 31, 1995. Together with funds generated internally, such liquid assets
are more than adequate to pay claims without the sale of investments.
Traditionally, it has been the Company's policy not to invest in high yield
or "junk" bonds. In 1995, the Company adopted a policy to place a small
proportion of its investments in the taxable sector in bonds rated lower than
investment grade, but not lower than Ba by Moody's or BB by Standard & Poor's.
At December 31, 1995 bond holdings rated below investment grade totaled $16.4
million at market (cost $16.0 million), or 1.8% of total investments. All but
$2.7 million of such holdings were downgraded to their current ratings
subsequent to purchase. The average rating of the $652 million bond portfolio
(at amortized cost) was A, while the average effective maturity, giving effect
to anticipated early call, approximates 7.2 years. The modified duration of the
bond portfolio at year-end was 5.8 years, reflecting the heavy weighting of high
coupon issues, including housing issues subject to sinking funds and other
issues which are pre-refunded or are expected to be called prior to their
maturities. Duration measures the length of time it takes to receive all the
cash flows produced by a bond, including reinvestment of interest. Because it
measures four factors
25
<PAGE>
(maturity, coupon rate, yield and call terms) which determine sensitivity to
changes in interest rates, modified duration is a much better indicator of price
volatility than simple maturity alone. Bond holdings are broadly diversified
geographically, and, within the tax-exempt sector, consist largely of high
coupon revenue issues, many of which have been pre-refunded and escrowed with
U.S. Treasuries. General obligation bonds of the large eastern cities have
generally been avoided.
The Company holds no direct obligations of Orange County, California, which
has filed for protection under the bankruptcy laws. The Company does, however,
hold $8.8 million principal amount of bonds issued by entities within Orange
County, some of which may be affected by losses arising from participation in
the Orange County investment pool. Exclusive of those bonds that have been
either insured or pre-refunded with U.S. Treasuries, the Company's total
holdings of issues affected by investments in the Orange County pool
approximates $7.7 million based on market value at December 31, 1995. The
Company has reviewed those holdings and believes that it will incur no losses as
a result of the Orange County bankruptcy filing.
Holdings in the taxable sector consist principally of senior public utility
issues. Fixed-maturity investments of $742.4 million (at amortized cost)
include $90.1 million of sinking fund preferreds, principally utility issues.
Included in the sinking fund preferred holdings are two investment grade utility
issues which are held in trust and structured as "inverse floaters," dividends
on which vary inversely to short term interest rates. The aggregate market
value and cost of those holdings was $4.4 million and $4.2 million,
respectively, at December 31, 1995. The year-end yield at market on those
holdings approximated 8.8%. The only other securities which may be considered
derivatives are a small amount of adjustable rate preferred stocks.
Except for Company-occupied buildings, the Company has no direct
investments in real estate and no holdings of mortgages secured by commercial
real estate.
Equity holdings of $114.9 million at market (cost $113.5 million),
including perpetual preferred issues, are largely confined to the public utility
and banking sectors and represent about 20.3% of total shareholders' equity.
The only significant debt of the Company at December 31, 1995, was a three
year revolving credit agreement covering two bank loans totalling $25,000,000
dated December 20, 1994. The proceeds of the loans were used to repay a prior
$15,000,000 loan, and to contribute $10,000,000 to the Company's insurance
subsidiaries. The agreement renews annually, at which time it may be extended
for an additional year to maintain the three year maturity date. The interest
cost of the loans is variable and related to LIBOR (London Interbank Rate).
Based on the rate effective March 19 through September 16, 1996, the net
interest cost of the loans approximates 6.09%. The Company expects that the
revolving loans will be renewed and extended to 1998 with no difficulty. The
loans may be repaid in whole or in part with no penalty. The source of any
repayments are expected to be derived from dividends from the Company's
insurance subsidiaries or other external financing.
26
<PAGE>
In March 1994, the Company's Employee Stock Ownership Plan (the Plan)
purchased 161,000 shares of Mercury's common stock in the open market at a price
of $29.75 per share. The purchases were funded by a $5.0 million bank loan to
the Plan which is guaranteed by the Company. The shares are being allocated to
employees over a five year period, with the initial allocation made in December
1994, and the debt is being retired by Company contributions to the Plan over
the same time period. Since dividends on unallocated shares held by the Plan
are tax deductible if they are used for debt service, as are Company
contributions to the Plan, the net, after-tax interest cost to the Company for
the borrowed funds used for the Plan stock purchase is less than the nominal
6.98% fixed rate of interest on the loan.
In December 1993, the NAIC adopted a risk-based capital formula for
casualty insurance companies which establishes recommended minimum capital
requirements for casualty companies. The formula has been designed to capture
the widely varying elements of risks undertaken by writers of different lines of
insurance having differing risk characteristics, as well as writers of similar
lines where differences in risk may be related to corporate structure,
investment policies, reinsurance arrangements and a number of other factors.
The Company has estimated the Risk-Based Capital Requirements of each of its
insurance subsidiaries as of December 31, 1995. Each of the companies'
policyholders' surplus exceeded the highest level of recommended capital
requirements.
As of December 31, 1995, the Company had no commitments for capital
expenditures.
Industry and regulatory guidelines suggest that the ratio of a property and
casualty insurer's annual net premiums written to statutory policyholders'
surplus should not exceed 3.0 to 1. Based on the combined surplus of all of the
licensed insurance subsidiaries of $479.1 million at December 31, 1995, and net
written premiums for the twelve months ended on that date of $636.6 million, the
ratio of writings to surplus was approximately 1.3 to 1.
Supplementary Data
Summarized quarterly financial data for 1995 and 1994 is as follows (in
thousands except per share data):
<TABLE>
<CAPTION>
Quarter Ended
--------------------------------------
March 31 June 30 Sept. 30 Dec. 31
-------- -------- -------- --------
<S> <C> <C> <C> <C>
1995
- - ----
Earned premiums................................ $144,676 $151,732 $157,179 $162,739
Income before income taxes .................... $ 22,449 $ 28,679 $ 32,305 $ 30,890
Net income..................................... $ 18,500 $ 22,407 $ 25,157 $ 24,237
Earnings per share............................. $ .68 $ .82 $ .92 $ .89
Dividends declared per share................... $ .20 $ .20 $ .20 $ .20
1994
- - ----
Earned premiums................................ $126,918 $127,635 $134,022 $140,815
Income before income taxes..................... $ 22,043 $ 21,420 $ 20,432 $ 18,521
Net income..................................... $ 17,766 $ 17,366 $ 16,272 $ 14,891
Earnings per share............................. $ .65 $ .64 $ .60 $ .55
Dividends declared per share................... $ .175 $ .175 $ .175 $ .175
</TABLE>
27
<PAGE>
Item 8. Financial Statements
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
Page
<S> <C>
Independent Auditors' Report........................................... 29
Consolidated Financial Statements:
Consolidated Balance Sheets as of December 31, 1995 and 1994...... 30
Consolidated Statements of Income for Each of the Years in the
Three-Year Period Ended December 31, 1995........................ 31
Consolidated Statements of Shareholders' Equity for Each of the
Years in the Three-Year Period Ended December 31, 1995........... 32
Consolidated Statements of Cash Flows for Each of the Years in
the Three-Year Period Ended December 31, 1995.................... 33
Notes to Consolidated Financial Statements........................ 35
</TABLE>
28
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Mercury General Corporation:
We have audited the accompanying consolidated balance sheets of
Mercury General Corporation and subsidiaries as of December 31, 1995 and 1994,
and the related consolidated statements of income, shareholders' equity and cash
flows for each of the years in the three-year period ended December 31, 1995.
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the financial position of
Mercury General Corporation and subsidiaries as of December 31, 1995 and 1994,
and the results of their operations and their cash flows for each of the years
in the three-year period ended December 31, 1995, in conformity with generally
accepted accounting principles.
KPMG PEAT MARWICK LLP
Los Angeles, California
March 22, 1996
29
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
AMOUNTS EXPRESSED IN THOUSANDS, except share amounts
A S S E T S
<TABLE>
<CAPTION>
1995 1994
---------- --------
<S> <C> <C>
Investments:
Fixed maturities available for sale (amortized cost
$742,409 in 1995 and $656,782 in 1994).......................... $ 779,783 $644,297
Equity securities available for sale (cost $113,478 in
1995 and $91,726 in 1994)....................................... 114,915 84,622
Short-term cash investments, at cost, which approxi-
mates market.................................................... 28,496 22,695
---------- --------
Total investments............................................. 923,194 751,614
Cash.............................................................. 2,872 3,344
Receivables:
Premiums receivable.............................................. 58,902 48,741
Premium notes.................................................... 11,728 11,562
Accrued investment income........................................ 15,870 14,642
Other............................................................ 6,108 7,795
---------- --------
92,608 82,740
Deferred policy acquisition costs................................. 33,809 30,068
Fixed assets, net................................................. 27,464 27,579
Current income taxes.............................................. -- 4,699
Deferred income taxes............................................. -- 10,190
Other assets...................................................... 1,709 1,459
---------- --------
$1,081,656 $911,693
========== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Losses and loss adjustment expenses............................... $ 253,546 $227,499
Unearned premiums................................................. 168,404 148,654
Notes payable..................................................... 25,000 25,000
Loss drafts payable............................................... 20,071 17,779
Accounts payable and accrued expenses............................. 25,412 21,925
Current income taxes.............................................. 388 --
Deferred income taxes............................................. 10,158 --
Other liabilities................................................. 13,489 13,675
---------- --------
Total liabilities............................................. 516,468 454,532
---------- --------
Shareholders' equity:
Common stock without par value or stated value.
Authorized 30,000,000 shares; issued and outstanding
27,442,675 shares in 1995 and 27,415,275 in 1994............... 40,895 40,250
Net unrealized investment gains (losses)......................... 25,227 (12,733)
Unearned ESOP compensation....................................... (3,084) (4,042)
Retained earnings................................................ 502,150 433,686
---------- --------
Total shareholders' equity.................................... 565,188 457,161
---------- --------
Commitments and contingencies.................................... $1,081,656 $911,693
========== ========
</TABLE>
See accompanying notes to consolidated financial statements.
30
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three years ended December 31, 1995
Amounts expressed in thousands, except per share data
<TABLE>
<CAPTION>
1995 1994 1993
-------- -------- --------
<S> <C> <C> <C>
Revenues:
Earned premiums.......................................... $616,326 $529,390 $474,093
Net investment income ................................... 62,964 54,586 54,121
Premium finance fees..................................... 1,840 1,947 1,828
Net realized investment gains (losses)(note 2) 1,048 (9,853) 3,006
Other.................................................... 1,501 1,176 716
-------- -------- --------
Total revenues.......................................... 683,679 577,246 533,764
-------- -------- --------
Expenses:
Losses and loss adjustment expenses...................... 416,556 360,557 289,208
Policy acquisition costs ................................ 128,743 112,682 99,738
Other operating expenses................................. 22,017 20,566 18,564
Interest................................................. 2,040 1,025 793
-------- -------- --------
Total expenses.......................................... 569,356 494,830 408,303
-------- -------- --------
Income before income taxes............................... 114,323 82,416 125,461
Income taxes ............................................. 24,022 16,121 29,252
-------- -------- --------
Net income............................................... $ 90,301 $ 66,295 $ 96,209
======== ======== ========
Earnings per share ....................................... $ 3.31 $ 2.43 $ 3.52
======== ======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
31
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Three years ended December 31, 1995
Amounts expressed in thousands
<TABLE>
<CAPTION>
1995 1994 1993
-------- -------- --------
<S> <C> <C> <C>
Common stock, beginning of year................................................ $ 40,250 $ 40,014 $ 39,389
Proceeds of stock options exercised............................................ 384 206 436
Tax benefit on sales of incentive stock
options....................................................................... 74 69 189
Release of common stock by the ESOP............................................ 187 (39) --
-------- -------- --------
Common stock, end of year...................................................... 40,895 40,250 40,014
-------- -------- --------
Net unrealized investment gains (losses) on
securities, beginning of year................................................. (12,733) 23,770 7,610
Net increase (decrease) in unrealized invest-
ment gains (losses) on securities............................................. 37,960 (36,503) 16,160
-------- -------- --------
Net unrealized investment gains (losses) on
securities, end of year....................................................... 25,227 (12,733) 23,770
-------- -------- --------
Unearned ESOP compensation relating to common
stock purchases by ESOP....................................................... (4,042) (5,000) --
Amortization of unearned ESOP compensation..................................... 958 958 --
-------- -------- --------
Unearned ESOP compensation, end of year........................................ (3,084) (4,042) --
-------- -------- --------
Retained earnings, beginning of year........................................... 433,686 386,491 306,705
Net income..................................................................... 90,301 66,295 96,209
Dividends paid to shareholders................................................. (21,837) (19,100) (16,423)
-------- -------- --------
Retained earnings, end of year................................................. 502,150 433,686 386,491
-------- -------- --------
Total shareholders' equity................................................... $565,188 $457,161 $450,275
======== ======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
32
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE YEARS ENDED DECEMBER 31, 1995
Amounts expressed in thousands
<TABLE>
<CAPTION>
1995 1994 1993
--------- --------- ---------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $ 90,301 $ 66,295 $ 96,209
Adjustments to reconcile net income to net cash
provided from operating activities:
Increase (decrease) in unpaid losses and loss
adjustment expenses 26,047 12,198 (24,882)
Increase in unearned premiums 19,750 19,826 11,304
Increase in premium notes receivable (166) (1,618) (778)
Increase in premiums receivable (10,161) (10,514) (2,773)
Increase in deferred policy acquisition costs (3,741) (4,345) (2,763)
Increase (decrease) in loss drafts payable 2,292 3,018 (3,661)
Increase (decrease) in accrued income taxes,
excluding deferred tax on change in unrealized
gain 4,995 (3,260) (5,664)
Increase (decrease) in accounts payable and accrued
expenses 3,487 (2,698) 5,001
Depreciation 3,736 3,486 2,661
Net realized investment (gains) losses (1,048) 9,853 (3,006)
Bond amortization (accretion), net (103) 1,466 3,052
Other, net 1,169 (1,523) (1,940)
--------- --------- ---------
Net cash provided from operating activities 136,558 92,184 72,760
Cash flows from investing activities:
Fixed maturities, at amortized cost:
Purchases -- -- (19,201)
Transfer from fixed maturities available for sale -- -- (2,238)
Sales -- -- 740
Calls or maturities -- -- 101,355
Transfer to fixed maturities, available for sale -- -- 281,937
Fixed maturities available for sale:
Purchases (204,360) (239,193) (146,233)
Transfer from fixed maturities, at amortized cost -- -- (281,937)
Sales 47,824 111,773 23,664
Calls or maturities 70,954 53,351 37,393
Transfer to fixed maturities, at amortized cost -- -- 2,238
Equity securities available for sale:
Purchases (386,343) (120,537) (308,127)
Sales 365,696 108,949 269,457
Decrease (increase) in short-term cash investments,
net (5,801) 7,046 (12,863)
Purchase of fixed assets (4,115) (3,711) (7,139)
Sale of fixed assets 494 268 434
--------- --------- ---------
Net cash used in investing activities $(115,651) $ (82,054) $ (60,520)
</TABLE>
(Continued)
33
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
<TABLE>
<CAPTION>
1995 1994 1993
--------- --------- ---------
<S> <C> <C> <C>
Cash flows from financing activities:
Additions to notes payable $ -- $ 25,000 $ --
Principal payments on notes payable -- (15,000) --
Dividends paid to shareholders (21,837) (19,100) (16,423)
Proceeds from stock options exercised 458 275 625
--------- --------- ---------
Net cash used in financing activities (21,379) (8,825) (15,798)
--------- --------- ---------
Net increase (decrease) in cash (472) 1,305 (3,558)
Cash:
Beginning of the year 3,344 2,039 5,597
--------- --------- ---------
End of the year $ 2,872 $ 3,344 $ 2,039
========= ========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
34
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1995 and 1994
(1) Significant Accounting Policies
Principles of Consolidation and Presentation
The Company is primarily engaged in the underwriting of private
passenger automobile insurance in the state of California.
The consolidated financial statements include the accounts of Mercury
General Corporation (the Company) and its wholly-owned subsidiaries, Mercury
Casualty Company, Mercury Insurance Company, California Automobile Insurance
Company, California General Underwriters Insurance Company, Inc., Mercury
Insurance Company of Georgia, Mercury Insurance Company of Illinois, Mercury
Indemnity Company of Georgia and Mercury Indemnity Company of Illinois.
Collectively, the subsidiaries are referred to as the Insurance Companies. The
consolidated financial statements have been prepared in conformity with
generally accepted accounting principles (GAAP) which differ in some respects
from those filed in reports to insurance regulatory authorities. All
significant intercompany balances and transactions have been eliminated.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
Investments
The Company adopted Statement of Financial Accounting Standards No.
115 ("SFAS No. 115"), "Accounting for Certain Investments in Debt and Equity
Securities" on December 31, 1993. The Company transferred all $281,937,000 of
Fixed Maturities, at amortized cost on that date to Fixed Maturities Available
for Sale. Fixed maturities available for sale include those securities that
management intends to hold for indefinite periods, but which may be sold in
response to changes in interest rates, tax planning considerations or other
aspects of asset/liability management. Short-term investments are carried at
cost, which approximates market. Investments in equity securities, which
include common stocks and non-redeemable preferred stocks, are carried at
market.
35
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(1) Significant Accounting Policies (Continued)
In most cases, the market valuations were drawn from standard trade
data sources. In no case were any valuations made by the Company's management.
Equity holdings, including non sinking fund preferred stocks, are, with minor
exceptions, actively traded on national exchanges, and were valued at the last
transaction price.
Temporary unrealized investment gains and losses on securities
available for sale are credited or charged directly to shareholders' equity, net
of applicable tax effects. When a decline in value of fixed maturities or
equity securities is considered other than temporary, a loss is recognized in
the consolidated statement of income. Realized gains and losses are included in
the consolidated statements of income based upon the specific identification
method.
Fair Value of Financial Instruments
Statement of Financial Accounting Standards No. 107, "Disclosures
about Fair Value of Financial Instruments", and Statement of Financial
Accounting Standards No. 119, "Disclosure about Derivative Financial Instruments
and Fair Value of Financial Instruments", require disclosure of estimated fair
value information about financial instruments, for which it is practicable to
estimate that value. Under SFAS No. 115, the Company categorizes all of its
investments in debt and equity securities as available for sale. Accordingly,
all investments, including cash and short term cash investments, are carried on
the balance sheet at their fair value. The carrying amounts and fair values for
investment securities are disclosed in Note 2 and were drawn from standard trade
data sources such as market and broker quotes. The estimated fair value of
notes payable equals their carrying value, which was based on borrowing rates
currently available to the Company for bank loans with similar terms and
maturities. The terms of the notes are discussed in Note 5.
Premium Income Recognition
Insurance premiums are recognized as income ratably over the term of
the policies. Unearned premiums are computed on the monthly pro rata basis.
The liability is stated gross of reinsurance deductions, with the reinsurance
deduction recorded in other assets.
Net premiums written during 1995, 1994 and 1993 were $636,590,000,
$550,838,000 and $484,097,000, respectively.
One agent produced direct premiums written of approximately 15%, 13%
and 12% of the Company's total direct premiums written during 1995, 1994 and
1993, respectively.
36
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(1) Significant Accounting Policies (Continued)
Premium Notes and Premium Finance Fees
Premium notes receivable represent the balance due to the Company from
policyholders who elect to finance their premiums over the policy term. The
Company requires both a downpayment and monthly payments as part of its
financing program. Premium finance fees are charged to policyholders who elect
to finance premiums. The fees are charged at rates that vary with the amount
of premium financed. Premium finance fees are recognized over the term of the
premium note based upon the effective yield.
Deferred Policy Acquisition Costs
Acquisition costs related to unearned premiums, which consist of
commissions, premium taxes and certain other underwriting costs, which vary
directly with and are directly related to, the production of business, are
deferred and amortized to income ratably over the terms of the policies.
Deferred acquisition costs are limited to the amount which will remain after
deducting from unearned premiums and anticipated investment income, the
estimated losses and loss adjustment expenses and the servicing costs that will
be incurred as the premiums are earned.
Losses and Loss Adjustment Expenses
The liability for losses and loss adjustment expenses is based upon
the accumulation of individual case estimates for losses reported prior to the
close of the accounting period, plus estimates, based upon past experience, of
ultimate developed costs which may differ from case estimates and of unreported
claims. The liability is stated net of anticipated salvage and subrogation
recoveries. The amount of reinsurance recoverable is included in other
receivables. Management believes that the liability for losses and loss
adjustment expenses is adequate to cover the ultimate net cost of losses and
loss adjustment expenses incurred to date. Since the provisions are necessarily
based upon estimates, the ultimate liability may be more or less than such
provisions.
Depreciation
Buildings and furniture and equipment are depreciated over 30-year and
5-year to 10-year periods, respectively, on a combination of straight-line and
accelerated methods. Automobiles are depreciated over 5 years, using an
accelerated method.
37
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(1) Significant Accounting Policies (Continued)
Earnings per Share
Earnings per share are computed by dividing earnings by the weighted
average number of common shares outstanding of 27,311,707 for 1995, 27,273,192
for 1994 and 27,361,831 for 1993.
Income Taxes
Effective January 1, 1993, the Company provides for income taxes in
accordance with Statement of Financial Accounting Standards No. 109 ("SFAS No.
109") "Accounting for Income Taxes." Deferred income taxes result from
temporary differences in the recognition of income and expense for tax and
financial reporting purposes. The adoption of SFAS No. 109 on January 1, 1993
did not have a material effect on the Company's financial condition or its
results of operations. The recoverability of the deferred tax asset is
demonstrated by the recoverability of taxes paid in previous years and the
availability of tax planning strategies.
Reinsurance
In December 1992 the Financial Accounting Standards Board issued SFAS
No. 113, "Accounting and Reporting for Reinsurance of Short-Duration and Long-
Duration Contracts." Among other provisions, SFAS No. 113 requires a balance
sheet gross up of reinsurance accounts and increases the degree of analysis
required to assess risk transfer. SFAS No. 113 was adopted by the Company on
January 1, 1993. The impact of the adoption of SFAS No. 113 was not material to
the consolidated financial statements.
In accordance with SFAS No. 113, the liabilities for unearned premiums
and unpaid losses are stated in the accompanying consolidated financial
statements before deductions for ceded reinsurance. The ceded amounts are
immaterial and are carried in other assets and other receivables. Earned
premiums are stated net of deductions for ceded reinsurance.
The Insurance Companies, as primary insurers, would be required to pay
losses in their entirety in the event that the reinsurers were unable to
discharge their obligations under the reinsurance agreements.
38
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(1) Significant Accounting Policies (Continued)
Statements of Cash Flows
Interest paid during 1995, 1994, and 1993 was $1,970,000, $1,001,000,
and $791,000 respectively. Income taxes paid were $18,954,000 in 1995,
$19,315,000 in 1994, and $34,679,000 in 1993.
Stock-Based Compensation
During October 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation" ("SFAS No. 123"), which is effective for fiscal years beginning
after December 15, 1995. Presently, management expects to continue use of the
accounting methods prescribed by Accounting Principles Board Opinion No. 25 and
expand its disclosure of stock-based compensation as permitted by SFAS No. 123.
Accordingly, adoption of this pronouncement is not expected to have a material
effect on the financial statements of the Company.
(2) Investments and Investment Income
A summary of net investment income is shown in the following table:
<TABLE>
<CAPTION>
Year ended December 31,
(Amounts in thousands)
---------------------------
1995 1994 1993
------- ------- -------
<S> <C> <C> <C>
Interest and dividends on fixed maturities............. $50,099 $46,636 $45,645
Dividends on equity securities......................... 11,855 7,483 8,154
Interest on short-term cash investments................ 1,456 894 742
------- ------- -------
Total investment income.............................. 63,410 55,013 54,541
Investment expense..................................... 446 427 420
------- ------- -------
Net investment income................................ $62,964 $54,586 $54,121
======= ======= =======
</TABLE>
A summary of net realized investment gains (losses) is as follows:
<TABLE>
<CAPTION>
Year ended December 31,
(Amounts in thousands)
---------------------------
1995 1994 1993
------- ------- -------
<S> <C> <C> <C>
Net realized investment gains (losses):
Fixed maturities..................................... $ (57) $(4,574) $ 4,332
Equity securities.................................... 1,105 (5,279) (1,326)
------- ------- -------
$ 1,048 $(9,853) $ 3,006
======= ======= =======
</TABLE>
39
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(2) Investments and Investment Income (Continued)
Gross gains and losses realized on the sales of investments (excluding
calls) are shown below:
<TABLE>
<CAPTION>
Year ended December 31,
(Amounts in thousands)
----------------------------
1995 1994 1993
------- ------- -------
<S> <C> <C> <C>
Fixed maturities, at amortized cost:
Gross realized gains............... $ -- $ -- $ 37
Gross realized losses.............. -- -- --
------- ------- -------
Net.............................. $ -- $ -- $ 37
======= ======= =======
Fixed maturities available for sale:
Gross realized gains............... $ 346 $ 718 $ 152
Gross realized losses.............. (822) (5,633) (106)
------- ------- -------
Net.............................. $ (476) $(4,915) $ 46
======= ======= =======
Equity securities available for sale:
Gross realized gains............... $ 5,154 $ 472 $ 3,382
Gross realized losses.............. (4,049) (5,751) (4,708)
------- ------- -------
Net.............................. $ 1,105 $(5,279) $(1,326)
======= ======= =======
</TABLE>
A summary of the net increase (decrease) in unrealized investment
gains (losses) less applicable income tax expense (benefit), is as follows:
<TABLE>
<CAPTION>
Year ended December 31,
(Amounts in thousands)
-----------------------------
1995 1994 1993
------- -------- --------
<S> <C> <C> <C>
Net increase (decrease) in net unrealized
investment gains (losses):
Fixed maturities, at amortized cost..... $ -- $ -- $(23,642)
Income tax (benefit).................... -- -- (8,038)
------- -------- --------
$ -- $ -- $(15,604)
======= ======== ========
Fixed maturities available for sale..... $49,859 $(48,873) $ 26,627
Income tax expense (benefit)............ 17,451 (17,106) 9,417
------- -------- --------
$32,408 $(31,767) $ 17,210
======= ======== ========
Equity securities....................... $ 8,541 $ (7,285) $ (1,588)
Income tax expense (benefit)............ 2,989 (2,549) (538)
------- -------- --------
$ 5,552 $ (4,736) $ (1,050)
======= ======== ========
</TABLE>
40
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(2) Investments and Investment Income (Continued)
Accumulated unrealized gains and losses on securities available for sale
follows:
<TABLE>
<CAPTION>
December 31,
(Amounts in thousands)
----------------------
1995 1994
-------- --------
<S> <C> <C>
Fixed maturities available for sale:
Unrealized gains................................. $ 41,326 $ 10,757
Unrealized losses................................ (3,952) (23,242)
Tax effect....................................... (13,081) 4,370
-------- --------
24,293 (8,115)
-------- --------
Equity securities available for sale:
Unrealized gains................................. $ 3,135 948
Unrealized losses................................ (1,698) (8,052)
Tax effect....................................... (503) 2,486
-------- --------
934 (4,618)
-------- --------
Net unrealized investment gains (losses)........... $ 25,227 $(12,733)
======== ========
</TABLE>
The amortized cost and estimated market values of investments in fixed
maturities available for sale as of December 31, 1995 are as follows:
<TABLE>
<CAPTION>
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
--------- ---------- ---------- ---------
(Amounts in thousands)
<S> <C> <C> <C> <C>
U.S. Treasury securities and
obligations of U.S. government
corporations and agencies.................... $ 3,659 $ 82 $ 3 $ 3,738
Obligations of states and political
subdivisions................................. 630,811 34,197 1,845 663,163
Public utilities.............................. 10,177 783 2 10,958
Corporate securities.......................... 7,682 242 81 7,843
Redeemable preferred stock.................... 90,080 6,022 2,021 94,081
-------- ------- ------ --------
Totals.................................... $742,409 $41,326 $3,952 $779,783
======== ======= ====== ========
</TABLE>
41
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(2) Investments and Investment Income (Continued)
The amortized cost and estimated market values of investments in fixed
maturities available for sale as of December 31, 1994 are as follows:
<TABLE>
<CAPTION>
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
--------- ---------- ---------- ---------
(Amounts in thousands)
<S> <C> <C> <C> <C>
U.S. Treasury securities and
obligations of U.S. government
corporations and agencies.................... $ 3,515 $ 5 $ 348 $ 3,172
Obligations of states and political
subdivisions................................. 529,592 8,657 17,501 520,748
Public utilities.............................. 8,521 164 10 8,675
Corporate securities.......................... 6,296 31 46 6,281
Redeemable preferred stock.................... 108,858 1,900 5,337 105,421
-------- ------- ------- --------
Totals.................................... $656,782 $10,757 $23,242 $644,297
======== ======= ======= ========
</TABLE>
Traditionally, it has been the Company's policy not to invest in high yield or
non-investment grade bonds. In 1995, the Company adopted a policy allowing a
small percentage of its investments to be placed in bonds rated lower than
investment grade, but not lower than Ba by Moody's or BB by Standard & Poor's.
At December 31, 1995 bond holdings rated below investment grade totaled
approximately 1.7% of total investments. All but $2.7 million of such holdings
were downgraded subsequent to purchase. The average Standard and Poor's rating
of the bond portfolio is A.
The amortized cost and estimated market value of fixed maturities available for
sale at December 31, 1995, by contractual maturity, are shown below. Expected
maturities will differ from contractual maturities because borrowers may have
the right to call or prepay obligations with or without call or prepayment
penalties.
<TABLE>
<CAPTION>
Estimated
Amortized Market
Cost Value
--------- ---------
<S> <C> <C>
(Amounts in thousands)
----------------------
Fixed maturities available for sale:
Due in one year or less................. $ 80,872 $ 83,137
Due after one year through five years... 154,953 163,235
Due after five years through ten years.. 311,125 323,117
Due after ten years..................... 195,459 210,294
-------- --------
$742,409 $779,783
======== ========
</TABLE>
42
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(3) Fixed Assets
A summary of fixed assets follows:
<TABLE>
<CAPTION>
December 31,
(Amounts in thousands)
----------------------
1995 1994
-------- --------
<S> <C> <C>
Land............................ $ 6,084 $ 6,084
Buildings....................... 20,432 20,271
Furniture and equipment......... 18,410 15,943
Leasehold improvements.......... 1,128 1,085
-------- --------
46,054 43,383
Less accumulated depreciation.... (18,590) (15,804)
-------- --------
Net fixed assets............... $ 27,464 $ 27,579
======== ========
</TABLE>
(4) Deferred Policy Acquisition Costs
Policy acquisition costs incurred and amortized to income are as follows:
<TABLE>
<CAPTION>
Years ended December 31,
(Amounts in thousands)
--------------------------------
1995 1994 1993
--------- --------- --------
<S> <C> <C> <C>
Balance, beginning of year................... $ 30,068 $ 25,723 $ 22,960
Costs deferred during the year............... 132,484 117,027 102,501
Amortization charged to expense.............. (128,743) (112,682) (99,738)
--------- --------- --------
Balance, end of year......................... $ 33,809 $ 30,068 $ 25,723
========= ========= ========
</TABLE>
(5) Notes Payable
Notes payable at December 31, 1995 consists of two unsecured notes
payable dated December 20, 1994. The combined principal amount on the notes of
$25,000,000 is payable on December 20, 1997. The interest cost of the loans is
variable and related to the London Interbank Rate (LIBOR). Based on the rate
effective through March 19, 1996, the net interest cost on the loans at December
31, 1995 is 6.4%.
The terms of the debt agreement include certain affirmative covenants, all
of which are met by the Company at December 31, 1995.
43
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(6) Income Taxes
The Company and its subsidiaries file a consolidated Federal income tax
return.
The provision for income tax expense (benefit) consists of the following
components:
<TABLE>
<CAPTION>
Year ended December 31,
(Amounts in thousands)
---------------------------
1995 1994 1993
------- ------- -------
<S> <C> <C> <C>
Federal
Current....................... $24,016 $15,318 $29,669
Deferred...................... (92) 707 (523)
------- ------- -------
$23,924 $16,025 $29,146
======= ======= =======
State
Current....................... $ 98 $ 96 $ 153
Deferred...................... -- -- (47)
------- ------- -------
$ 98 $ 96 $ 106
======= ======= =======
Total
Current....................... $24,114 $15,414 $29,822
Deferred...................... (92) 707 (570)
------- ------- -------
Total.............................. $24,022 $16,121 $29,252
======= ======= =======
</TABLE>
The income tax provision reflected in the consolidated statements of
income is less than the expected federal income tax on income before income
taxes as shown in the table below:
<TABLE>
<CAPTION>
Year ended December 31,
(Amounts in thousands)
------------------------------
1995 1994 1993
-------- -------- --------
<S> <C> <C> <C>
Computed tax expense at 35% ............................. $ 40,013 $ 28,846 $ 43,911
Tax-exempt interest income............................... (13,718) (12,216) (10,436)
Dividends received deduction............................. (4,936) (4,253) (4,751)
Reduction of losses incurred deduction for 15% of
income on securities purchased after August 7, 1986 2,546 2,220 1,877
Other, net............................................... 117 1,524 (1,349)
-------- -------- --------
Income tax expense .................................. $ 24,022 $ 16,121 $ 29,252
======== ======== ========
</TABLE>
44
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(6) Income Taxes (Continued)
The Omnibus Budget Reconciliation Act of 1993 increased the corporate
tax rate from 34% to 35% effective January 1, 1993. Under SFAS No. 109, the
effects of the higher corporate tax rate are recognized in determining tax on
deferred items in the period that includes the date of enactment. The effect of
the tax rate change on the deferred liability was not material to the
consolidated financial position of the Company.
The "temporary differences" that give rise to a significant portion of
the deferred tax asset (liability) relate to the following:
<TABLE>
<CAPTION>
December 31,
(Amounts in thousands)
------------------------------
1995 1994 1993
-------- -------- --------
<S> <C> <C> <C>
Deferred tax assets
Discounting of loss reserves and salvage
and subrogation recoverable for tax
purposes................................... $ 5,030 $ 5,030 $ 5,631
Tax benefit on net unrealized loss on
securities carried at market value......... -- 6,856 --
Other deferred tax assets................... 638 534 534
-------- -------- --------
Total gross deferred tax assets.......... 5,668 12,420 6,165
Less valuation allowance............... -- -- --
-------- -------- --------
Net deferred tax assets................ 5,668 12,420 6,165
-------- -------- --------
Deferred tax liabilities
Tax liability on net unrealized gain on
securities carried at market value......... (13,584) -- (12,799)
Tax depreciation in excess of book
depreciation............................... (1,184) (1,192) (1,149)
Accretion on bonds.......................... (742) (574) (549)
Other deferred tax liabilities.............. (316) (464) (426)
-------- -------- --------
Total gross deferred tax liabilities... (15,826) (2,230) (14,923)
-------- -------- --------
Net deferred tax assets (liabilities).. $(10,158) $ 10,190 $ (8,758)
======== ======== ========
</TABLE>
45
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(7) Reserves for Losses and Loss Adjustment Expenses
Activity in the reserves for losses and loss adjustment expenses is
summarized as follows:
<TABLE>
<CAPTION>
Year ended December 31,
(Amounts in thousands)
------------------------------
1995 1994 1993
-------- -------- --------
<S> <C> <C> <C>
Gross reserves for losses and loss
adjustment expenses at beginning of year..... $227,499 $215,301 $240,183
Less reinsurance recoverable............... (4,107) (776) (980)
-------- -------- --------
Net reserves, beginning of year............... 223,392 214,525 239,203
Incurred losses and loss adjustment expenses
related to:
Current year............................... 423,264 370,631 323,932
Prior years................................ (6,708) (10,074) (34,724)
-------- -------- --------
Total incurred losses and loss adjustment
expenses.................................... 416,556 360,557 289,208
-------- -------- --------
Loss and loss adjustment expense payments
related to:
Current year............................... 243,294 208,418 178,698
Prior years................................ 145,664 143,272 135,188
-------- -------- --------
Total payments................................ 388,958 351,690 313,886
-------- -------- --------
Net reserves for losses and loss adjustment
expenses at end of year...................... 250,990 223,392 214,525
Reinsurance recoverable....................... 2,556 4,107 776
-------- -------- --------
Gross reserves, end of year................... $253,546 $227,499 $215,301
======== ======== ========
</TABLE>
Decreases in incurred losses relating to prior years reflects the favorable loss
experience during these years attributable to a number of combined factors which
have produced favorable frequency and severity trends in recent years. In
addition, actuarial assumptions based on historical trends have proved to be
conservative.
46
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(8) Dividend Restrictions
The Insurance Companies are subject to the financial capacity
guidelines established by the Office of the Commissioner of Insurance of their
domicile states. The payment of dividends from statutory unassigned surplus of
the Insurance Companies is restricted, subject to certain statutory limitations.
For the year 1996, Mercury Casualty Company and California Automobile Insurance
Company are permitted to pay approximately $50,869,000 in dividends to the
Company without the prior approval of the California Commissioner of Insurance.
The above statutory regulations may have the effect of indirectly limiting the
ability of the Company to pay dividends.
(9) Statutory Balances and Accounting Practices
The Insurance Companies prepare their statutory financial statements
in accordance with accounting practices prescribed or permitted by the various
state insurance departments. Prescribed statutory accounting practices include
a variety of publications of the National Association of Insurance Commissioners
(NAIC), as well as state laws, regulations, and general administrative rules.
Permitted statutory accounting practices encompass all accounting practices not
so prescribed. As of December 31, 1995, there were no material permitted
statutory accounting practices utilized by the Insurance Companies. The NAIC is
working on a project to codify statutory accounting practices, the result of
which is expected to constitute the only source of "prescribed" statutory
accounting practices. When complete, that project will most likely change the
definition of prescribed versus permitted statutory accounting practices and may
result in changes to the accounting policies that insurance enterprises use to
prepare their statutory financial statements.
The Insurance Companies' statutory net income, as reported to
regulatory authorities, was $86,210,000, $62,861,000 and $93,877,000 for the
years ended December 31, 1995, 1994 and 1993, respectively. The statutory
policyholders' surplus of the Insurance Companies, as reported to regulatory
authorities, as of December 31, 1995 and 1994 was $479,114,000 and $411,898,000,
respectively.
The Company has estimated the Risk-Based Capital Requirements of each
of its insurance subsidiaries as of December 31, 1995 according to the formula
issued by the NAIC. Each of the companies' policyholders' surplus exceeded the
highest level of recommended capital requirements.
47
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(10) Commitments and Contingencies
The Company is obligated under several noncancellable lease agreements
providing for office space that expire at various dates through the year 2000.
Total rent expense under these lease agreements, all of which are operating
leases, was $1,461,000, $1,492,000 and $1,653,000 for the years ended December
31, 1995, 1994 and 1993, respectively. Mercury Casualty Company will receive
minimum future rentals on various noncancellable operating leases on a building
purchased in Brea in October 1992. The annual rental commitments, expressed in
thousands, are as follows:
<TABLE>
<CAPTION>
Rent Rent
Year Expense Income
---- ------- --------
<S> <C> <C>
1996.............. $1,401 $(1,016)
1997.............. $ 828 $ (830)
1998.............. $ 735 $ (488)
1999.............. $ 538 $ (35)
2000.............. $ 129 $ --
Thereafter........ $ -- $ --
</TABLE>
The Company and its subsidiaries are defendants in various lawsuits
generally incidental to their business. In most of these actions, plaintiffs
assert claims for exemplary and punitive damages which are not insurable under
California judicial decisions. The Company vigorously defends these actions,
unless a reasonable settlement appears appropriate. Management does not expect
the ultimate disposition of these lawsuits to have a material effect on the
Company's consolidated operations or financial position.
(11) Profit Sharing Plan
The Company, at the option of the Board of Directors, may make annual
contributions to an employee profit sharing plan. The contributions are not to
exceed the greater of the Company's net income for the plan year or its retained
earnings at that date. In addition, the annual contributions may not exceed an
amount equal to 15% of the compensation paid or accrued during the year to all
participants under the plan. The annual contribution was $1,000,000, $1,000,000
and $2,000,000 for the plan years ended December 31, 1995, 1994 and 1993.
The Profit Sharing Plan also includes an option for employees to make
salary deferrals under Section 401(k) of the Internal Revenue Code. Company
matching contributions, at a rate set by the Board of Directors, totaled
$773,000, $762,000 and $593,000 for the plan years ended December 31, 1995, 1994
and 1993.
48
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(11) Profit Sharing Plan (Continued)
Effective March 11, 1994 the Profit Sharing Plan also includes a
leveraged employee stock ownership plan (ESOP) that covers substantially all
employees. The Company makes annual contributions to the ESOP equal to the
ESOP's debt service less dividends received by the ESOP. Dividends received by
the ESOP on unallocated shares are used to pay debt service and the ESOP shares
serve as collateral for its debt. As the debt is repaid, shares are released
from collateral and allocated to employees, based on the proportion of debt
service paid in the year. The Company accounts for its ESOP in accordance with
Statement of Position 93-6. Accordingly, the debt of the ESOP, which was
$4,000,000 and $5,000,000 at December 31, 1995 and 1994, respectively, is
recorded in the balance sheet as other liabilities. The shares pledged as
collateral are reported as unearned ESOP compensation in the shareholders'
equity section of the balance sheet. As shares are committed to be released
from collateral, the Company reports compensation expense equal to the current
market price of the shares, and reduces unearned ESOP compensation by the
original cost of the shares. The difference between the market price and cost
of the shares is charged to common stock. As shares are committed to be
released from collateral, the shares become outstanding for earnings-per-share
computations. Dividends on allocated ESOP shares are recorded as a reduction of
retained earnings; dividends on unallocated ESOP shares are recorded as a
reduction of accrued interest. ESOP compensation expense was $1,145,000 and
$919,000 in 1995 and 1994, respectively. The ESOP shares as of December 31 were
as follows:
<TABLE>
<CAPTION>
1995 1994
---------- ----------
<S> <C> <C>
Allocated shares 32,200 --
Shares committed-to-be released 32,200 32,200
Unreleased shares 96,600 128,800
---------- ----------
Total ESOP shares 161,000 161,000
========== ==========
Market value of unreleased shares at
December 31, $4,613,000 $3,703,000
========== ==========
</TABLE>
(12) Common Stock
The Company adopted a stock option plan in October 1985 (the "1985
Plan") under which 2,700,000 shares were reserved for issuance. Options granted
during 1985 were exercisable immediately. Subsequent options granted become
exercisable 20% per year beginning one year from the date granted. All options
were granted at the market price on the date of the grant.
49
<PAGE>
MERCURY GENERAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1995 and 1994
(12) Common Stock (Continued)
In May 1995 the Company adopted The 1995 Equity Participation Plan
(the "1995 Plan") which succeeds the Company's 1985 Plan. Under the 1995 Plan,
2,700,000 shares of Common Stock are authorized for issuance upon exercise of
options, stock appreciation rights and other awards, or upon vesting of
restricted or deferred stock awards. During 1995, the Company granted incentive
stock options under the 1994 and 1995 Plans. The options granted during 1995
become exercisable 20% per year beginning one year from the date granted and
were granted at the market price on the date of the grant.
Activity pursuant to the plans, was as follows:
<TABLE>
<CAPTION>
Total Exercisable
Shares Shares Option Price
---------- ------------ -------------
<S> <C> <C> <C>
Outstanding December 31, 1992............ 220,200 188,200 $5.00 - 8.00
=======
Granted in 1993........................ 115,000 30.125
Exercised in 1993...................... (70,460) 5.00 - 8.00
------- ------------
Outstanding December 31, 1993............ 264,740 135,940 $5.00-30.125
=======
Granted in 1994........................ 4,000 27.00
Exercised in 1994...................... (27,815) 5.00 - 8.00
Cancelled or expired in 1994........... (3,000) 30.125
------- ------------
Outstanding December 31, 1994............ 237,925 142,725 $5.00-30.125
=======
Granted in 1995........................ 155,000 30.00-31.875
Exercised in 1995...................... (27,600) 5.00-30.125
------- ------------
Outstanding December 31, 1995............ 365,325 141,725 $6.75-31.875
======= ======= ============
</TABLE>
50
<PAGE>
Item 9. Changes in and Disagreements with Accountants on Accounting and
---------------------------------------------------------------
Financial Disclosure
--------------------
None.
PART III
Item 10. Directors and Executive Officers of the Registrant
--------------------------------------------------
Section 16(a) of the Securities Exchange Act of 1934 requires the
directors, officers and certain other employees of the registrant, and
persons who own more than ten percent of a registered class of the
registrant's equity securities, ("Reporting Persons") to file with the
Securities and Exchange Commission initial reports of ownership and
reports of changes in ownership of Common Stock of the registrant.
Due dates for these reports have been established and the registrant
is required to disclose any failure to file by these dates during
1995. To the registrant's knowledge, all of these requirements were
satisfied.
Item 11. Executive Compensation
----------------------
Item 12. Security ownership of Certain Beneficial Owners and Management
--------------------------------------------------------------
Item 13. Certain Relationships and Related Transactions
----------------------------------------------
Information regarding executive officers of the Company is included in Part
I. For this and other information called for by Items 10, 11, 12 and 13,
reference is made to the Company's definitive proxy statement for its Annual
Meeting of Shareholders, to be held on May 29, 1996, which will be filed with
the Securities and Exchange Commission within 120 days after December 31, 1995,
and which is incorporated herein by reference.
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
---------------------------------------------------------------
(a) The following documents are filed as a part of this report:
1. Financial Statements: The Consolidated Financial Statements for the
year ended December 31, 1995 are contained herein as listed in the Index to
Consolidated Financial Statements on page 28.
2. Financial Statement Schedules:
Title
-----
Auditors' Report on Financial Statement Schedules
Schedule I -- Summary of Investments -- Other than Investments in
Related Parties
Schedule II -- Condensed Financial Information of Registrant
51
<PAGE>
Schedule IV -- Reinsurance
All other schedules are omitted as the required information is inapplicable
or the information is presented in the Consolidated Financial Statements or
Notes thereto.
3. Exhibits:
3.1** Articles of Incorporation of the Company, as amended to
date.
3.2 By-laws of the Company, as amended to date.
4.1* Shareholders' Agreement dated as of October 7, 1985 among
the Company, George Joseph and Gloria Joseph.
10.1* Form of Agency Contract.
10.2# Management Agreement, as amended, effective July 1, 1992,
among the Company, Mercury Casualty Company, Mercury
Insurance Company and California Automobile Insurance
Company.
10.3## Profit Sharing Plan, as Amended and Restated as of March 11,
1994.
10.4## ESOP Feature Trust Agreement between the Company and Wells
Fargo Bank, N.A., as Trustee, effective March 1, 1994.
10.5## ESOP Loan Agreement between Union Bank and Wells Fargo Bank,
N.A., as Trustee, of the Mercury General Corporation ESOP
Feature Trust dated as of March 11, 1994.
10.6## Continuing Guaranty, dated as of March 11, 1994, executed by
Mercury General Corporation in favor of Union Bank.
10.7** Amendment 1994-I to the Mercury General Corporation Profit
Sharing Plan.
10.8** Amendment 1994-II to the Mercury General Corporation Profit
Sharing Plan.
10.9** Revolving Credit Agreement by and among Mercury General
Corporation, the Lenders Party Hereto and The Bank of New
York, as Agent.
10.10** Property Per Risk Excess of Loss Reinsurance Agreement
between National Reinsurance Corporation and Mercury
Casualty Company, effective April 1, 1995.
10.11** Endorsement No. 1 to the Property Per Risk Excess of Loss
Agreement effective April 1, 1995.
10.12 Endorsement No. 2 to the Property Per Risk Excess of Loss
Agreement effective April 1, 1995.
10.13 Endorsement No. 3 to the Property Per Risk Excess of Loss
Agreement effective April 1, 1995.
10.14 Management Agreement effective January 1, 1995 between the
Company and Mercury Insurance Company of Illinois.
10.15 Management Agreement effective January 1, 1995 between the
Company and Mercury Indemnity Company of Illinois.
10.16 Management Agreement effective January 1, 1995 between the
Company and Mercury Insurance Company of Georgia.
52
<PAGE>
10.17 Management Agreement effective January 1, 1995 between the
Company and Mercury Indemnity Company of Georgia.
10.18 Draft, Second and Third Excess Property Catastrophe
Reinsurance Contract Effective April 1, 1995 issued to
Mercury Casualty Company, Mercury Insurance Company,
California Automobile Insurance Company and California
General Underwriters Insurance Company, Inc.
10.19@ The 1995 Equity Participation Plan.
21.1## Subsidiaries of the Company.
23.1 Accountants' Consent.
27.1 Financial Data Schedule
28.1 Consolidated Schedule P of the Annual Statement provided to
----
state insurance regulatory authorities for the year ended
December 31, 1995.
* This document was filed as an exhibit to Registrant's Registration
Statement on Form S-1, File No. 33-899, and is incorporated herein by this
reference.
# This document was filed as an exhibit to Registrant's Form 10-K for the
fiscal year ended December 31, 1992, and is incorporated herein by this
reference.
## This document was filed as an exhibit to Registrant's Form 10-K for the
fiscal year ended December 31, 1993, and is incorporated herein by this
reference.
** This document was filed as an exhibit to Registrant's Form 10-K for the
fiscal year ended December 31, 1994, and is incorporated herein by this
reference.
@ This document was filed as an exhibit to Registrant's Form S-8 filed on
March 8, 1996 and is incorporated herein by this reference.
(b) Reports on Form 8-K:
None
53
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
MERCURY GENERAL CORPORATION
By GEORGE JOSEPH
-------------------------------------
George Joseph
Chief Executive Officer and
Chairman of the Board
March 22, 1996
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.
Signature Title Date
--------- ----- ----
Chief Executive Officer
and
Chairman of the Board
GEORGE JOSEPH (Principal Executive Officer) March 22, 1996
- - --------------------------
George Joseph
Chief Financial Officer
KEITH L. PARKER (Principal Financial Officer) March 22, 1996
- - --------------------------
Keith L. Parker
Vice President and Controller
DONNA J. MOORE (Principal Accounting Officer) March 22, 1996
- - --------------------------
Donna J. Moore
NATHAN BESSIN Director March 22, 1996
- - --------------------------
Nathan Bessin
BRUCE A. BUNNER Director March 22, 1996
- - --------------------------
Bruce A. Bunner
RICHARD E. GRAYSON Director March 22, 1996
- - --------------------------
Richard E. Grayson
54
<PAGE>
Signature Title Date
--------- ----- ----
GLORIA JOSEPH Director March 22, 1996
- - --------------------------
Gloria Joseph
CHARLES MCCLUNG Director March 22, 1996
- - ---------------------------
Charles McClung
DONALD P. NEWELL Director March 22, 1996
- - ---------------------------
Donald P. Newell
DONALD R. SPUEHLER Director March 22, 1996
- - ---------------------------
Donald R. Spuehler
55
<PAGE>
AUDITORS' REPORT ON FINANCIAL STATEMENT SCHEDULES
The Board of Directors
Mercury General Corporation:
Under date of March 22, 1996, we reported on the consolidated balance
sheets of Mercury General Corporation and subsidiaries as of December 31, 1995
and 1994, and the related consolidated statements of income, shareholders'
equity and cash flows for each of the years in the three-year period ended
December 31, 1995, as contained in the annual report on Form 10-K for the year
1995. In connection with our audits of the aforementioned consolidated
financial statements, we also have audited the related financial statement
schedules as listed under Item 14(a)2. These financial statement schedules are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statement schedules based on our audits.
In our opinion, the related 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 set forth therein.
KPMG PEAT MARWICK LLP
Los Angeles, California
March 22, 1996
S-1
<PAGE>
SCHEDULE I
MERCURY GENERAL CORPORATION
SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES
December 31, 1995
Amounts in Thousands
<TABLE>
<CAPTION>
Amount at
which shown
in the
Type of Investment Cost Value balance sheet
- - ------------------ -------- -------- -------------
<S> <C> <C> <C>
Fixed maturities available for sale
Bonds:
U.S. Government................................ $ 3,659 $ 3,738 $ 3,738
States, Municipalities......................... 630,811 663,163 663,163
Public utilities............................... 10,177 10,958 10,958
All other corporate bonds...................... 7,682 7,843 7,843
Redeemable preferred stock....................... 90,080 94,081 94,081
-------- -------- --------
Total fixed maturities available for
sale.......................................... 742,409 779,783 779,783
-------- -------- --------
Equity securities:
Common stocks:
Public utilities............................... 18,787 19,714 19,714
Banks, trust and insurance companies........... 535 469 469
Industrial, Miscellaneous and
all other..................................... 1,133 1,524 1,524
Nonredeemable preferred stocks................... 93,023 93,208 93,208
-------- -------- --------
Total equity securities available for
sale.......................................... 113,478 114,915 114,915
-------- -------- --------
Short-term investments.................................... 28,496 28,496
-------- --------
Total investments.............................. $884,383 $923,194
======== ========
</TABLE>
S-2
<PAGE>
SCHEDULE I, Continued
MERCURY GENERAL CORPORATION
SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES
December 31, 1994
Amounts in Thousands
<TABLE>
<CAPTION>
Amount at
which shown
in the
Type of Investment Cost Value balance sheet
- - ------------------ -------- -------- -------------
<S> <C> <C> <C>
Fixed maturities available for sale
Bonds:
U.S. Government................................ $ 3,515 $ 3,172 $ 3,172
States, Municipalities......................... 529,592 520,748 520,748
Public utilities............................... 8,521 8,675 8,675
All other corporate bonds...................... 6,296 6,281 6,281
Redeemable preferred stock....................... 108,858 105,421 105,421
-------- -------- --------
Total fixed maturities available for
sale.......................................... 656,782 644,297 644,297
-------- -------- --------
Equity securities:
Common stocks:
Public utilities............................... 16,890 15,577 15,577
Banks, trust and insurance companies........... 535 431 431
Industrial, Miscellaneous and
all other..................................... 1,038 1,197 1,197
Nonredeemable preferred stocks................... 73,263 67,417 67,417
-------- -------- --------
Total equity securities available for
sale.......................................... 91,726 84,622 84,622
-------- -------- --------
Short-term investments.................................... 22,695 22,695
-------- --------
Total investments.............................. $771,203 $751,614
======== ========
</TABLE>
S-3
<PAGE>
SCHEDULE II
MERCURY GENERAL CORPORATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
BALANCE SHEETS
December 31, 1995 and 1994
Amounts in thousands
ASSETS
<TABLE>
<CAPTION>
1995 1994
-------- --------
<S> <C> <C>
Investments:
Fixed maturities available for sale (amortized
cost $3,771 in 1995 and $3,456 in 1994)............................ $ 3,770 $ 3,377
Equity securities, available for sale (cost
$12,943 in 1995 and $12,126 in 1994)............................... 12,841 11,297
Short-term cash investments......................................... 4,746 2,038
Investment in subsidiaries.......................................... 574,224 470,746
-------- --------
Total investments.............................................. 595,581 487,458
Amounts due from affiliates............................................... 3,834 4,795
Income taxes.............................................................. 2,615 1,637
Other assets.............................................................. 2,110 1,905
-------- --------
$604,140 $495,795
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable............................................................. $ 25,000 $ 25,000
Accounts payable and accrued expenses..................................... 8,611 7,433
Other liabilities......................................................... 5,341 6,201
-------- --------
Total liabilities.................................................... 38,952 38,634
-------- --------
Shareholders' equity:
Common stock......................................................... 40,895 40,250
Net unrealized investment gains (losses)............................. 25,227 (12,733)
Unearned ESOP compensation........................................... (3,084) (4,042)
Retained earnings.................................................... 502,150 433,686
-------- --------
Total shareholders' equity..................................... 565,188 457,161
-------- --------
$604,140 $495,795
======== ========
</TABLE>
See notes to condensed financial information
S-4
<PAGE>
SCHEDULE II, Continued
MERCURY GENERAL CORPORATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF INCOME
Three years ended December 31, 1995
Amounts in thousands
<TABLE>
<CAPTION>
1995 1994 1993
-------- -------- -------
<S> <C> <C> <C>
Revenues:
Net investment income............................................... $ 1,824 $ 1,389 $ 1,300
Management fee income from subsidiaries............................. 101,823 101,858 87,376
Other............................................................... 27 (704) 107
-------- -------- -------
Total revenues................................................... 103,674 102,543 88,783
-------- -------- -------
Expenses:
Loss adjustment expenses............................................ 68,048 68,771 59,851
Policy acquisition costs............................................ 17,087 17,953 15,174
Other operating expenses............................................ 16,627 15,544 12,832
Interest............................................................ 2,040 1,025 793
-------- -------- -------
Total expenses................................................... 103,802 103,293 88,650
-------- -------- -------
Income (loss) before income taxes and equity
in net income of subsidiaries...................................... (128) (750) 133
Income tax benefit.................................................... (386) (506) (350)
-------- -------- -------
Income (loss) before equity in net income
of subsidiaries.................................................... 258 (244) 483
Equity in net income of subsidiaries.................................. 90,043 66,539 95,726
-------- -------- -------
Net income....................................................... $ 90,301 $ 66,295 $96,209
======== ======== =======
</TABLE>
See notes to condensed financial information.
S-5
<PAGE>
SCHEDULE II, Continued
MERCURY GENERAL CORPORATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF CASH FLOWS
Three Years ended December 31, 1995
Amounts in thousands
<TABLE>
<CAPTION>
1995 1994 1993
-------- -------- --------
<S> <C> <C> <C>
Cash flows from operating activities:
Net cash provided from operating activities......................... $ 25,526 $ 20,367 $ 24,039
Cash flows from investing activities:
Capital contribution to subsidiaries................................ (500) (10,000) (6,000)
Fixed maturities, at amortized cost:
Calls or maturities............................................... -- -- 44
Transfer to fixed maturities, at market........................... -- -- 3,113
Fixed maturities, at market:
Transfer from fixed maturities, at amortized
cost............................................................. -- -- (3,113)
Purchases......................................................... (1,051) (547)
Sales............................................................. 335 -- --
Calls or maturities............................................... 349 2,632 2,243
Equity securities:
Purchases......................................................... (49,390) (20,105) (25,219)
Sales............................................................. 48,675 16,461 21,376
Increase in short term cash investments, net........................ (2,708) (365) (1,490)
Other, net.......................................................... -- 31 259
-------- -------- --------
Net cash used in investing activities........................ (4,290) (11,893) (8,787)
Cash flows from financing activities:
Additions to notes payable.......................................... -- 25,000 --
Principal payments on notes payable................................. -- (15,000) --
Dividends paid to shareholders...................................... (21,837) (19,100) (16,423)
Stock options exercised............................................. 458 275 625
-------- -------- --------
Net cash used in financing activities........................ (21,379) (8,825) (15,798)
Net decrease in cash.................................................. (143) (351) (546)
Cash:
Beginning of the year............................................... (1,197) (846) (300)
-------- -------- --------
End of the year..................................................... $ (1,340) $ (1,197) $ (846)
======== ======== ========
</TABLE>
See notes to condensed financial information.
S-6
<PAGE>
SCHEDULE II, Continued
MERCURY GENERAL CORPORATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
NOTES TO CONDENSED FINANCIAL INFORMATION
December 31, 1995 and 1994
The accompanying condensed financial information should be read in
conjunction with the consolidated financial statements and notes included in
this statement.
Management Fee Income
Under a management agreement, the Company performs management services for
its subsidiaries which include all underwriting and claims servicing functions.
The Company is compensated by monthly reimbursement of expenses paid.
Dividends Received From Subsidiaries
Dividends of $24,500,000, $20,000,000, and $26,700,000 were received by the
Company from its wholly-owned subsidiaries in 1995, 1994 and 1993, respectively
and are recorded as a reduction to Investment in Subsidiaries.
Cash Overdraft
At December 31, 1995 and 1994, the Company had cash overdrafts of
$1,340,000 and $1,197,000, respectively which are classified in "other
liabilities" in the accompanying condensed balance sheet.
S-7
<PAGE>
SCHEDULE IV
MERCURY GENERAL CORPORATION
REINSURANCE
Three years ended December 31, 1995
Amounts in thousands
<TABLE>
<CAPTION>
Ceded to
Gross other Net
amount companies Assumed amount
-------- --------- ------- --------
<S> <C> <C> <C> <C>
Property and Liability insurance
1995......................... $619,404 $3,444 $366 $616,326
1994......................... $530,224 $1,321 $487 $529,390
1993......................... $477,737 $4,229 $585 $474,093
</TABLE>
S-8
<PAGE>
EXHIBIT INDEX
3.1** Articles of Incorporation of the Company, as amended to date.
3.2 By-laws of the Company, as amended to date.
4.1* Shareholders' Agreement dated as of October 7, 1985 among the Company,
George Joseph and Gloria Joseph.
10.1* Form of Agency Contract.
10.2# Management Agreement, as amended, effective July 1, 1992, among the
Company, Mercury Casualty Company, Mercury Insurance Company and
California Automobile Insurance Company.
10.3## Profit Sharing Plan, as Amended and Restated as of March 11, 1994.
10.4## ESOP Feature Trust Agreement between the Company and Wells Fargo Bank,
N.A., as Trustee, effective March 1, 1994.
10.5## ESOP Loan Agreement between Union Bank and Wells Fargo Bank, N.A., as
Trustee, of the Mercury General Corporation ESOP Feature Trust dated
as of March 11, 1994.
10.6## Continuing Guaranty, dated as of March 11, 1994, executed by Mercury
General Corporation in favor of Union Bank.
10.7** Amendment 1994-I to the Mercury General Corporation Profit Sharing
Plan.
10.8** Amendment 1994-II to the Mercury General Corporation Profit Sharing
Plan.
10.9** Revolving Credit Agreement by and among Mercury General Corporation,
the Lenders Party Hereto and The Bank of New York, as Agent.
10.10** Property Per Risk Excess of Loss Reinsurance Agreement between
National Reinsurance Corporation and Mercury Casualty Company,
effective April 1, 1995.
10.11** Endorsement No. 1 to the Property Per Risk Excess of Loss Agreement
effective April 1, 1995.
10.12 Endorsement No. 2 to the Property Per Risk Excess of Loss Agreement
effective April 1, 1995.
10.13 Endorsement No. 3 to the Property Per Risk Excess of Loss Agreement
effective April 1, 1995.
10.14 Management Agreement effective January 1, 1995 between the Company and
Mercury Insurance Company of Illinois.
10.15 Management Agreement effective January 1, 1995 between the Company and
Mercury Indemnity Company of Illinois.
10.16 Management Agreement effective January 1, 1995 between the Company and
Mercury Insurance Company of Georgia.
10.17 Management Agreement effective January 1, 1995 between the Company and
Mercury Indemnity Company of Georgia.
10.18 Draft, Second and Third Excess Property Catastrophe Reinsurance
Contract Effective April 1, 1995 issued to Mercury Casualty Company,
Mercury Insurance Company, California Automobile Insurance Company and
California General Underwriters, Inc.
10.19@ The 1995 Equity Participation Plan.
21.1## Subsidiaries of the Company.
23.1 Accountants' Consent.
27.1 Financial Data Schedule.
28.1 Consolidated Schedule P of the Annual Statement provided to state
- - ----
insurance regulatory authorities for the year ended December 31, 1995.
<PAGE>
* This document was filed as an exhibit to Registrant's Registration
Statement on Form S-1, File No. 33-899, and is incorporated herein by this
reference.
# This document was filed as an exhibit to Registrant's Form 10-K for the
fiscal year ended December 31, 1992, and is incorporated herein by this
reference.
## This document was filed as an exhibit to Registrant's Form 10-K for the
fiscal year ended December 31, 1993, and is incorporated herein by this
reference.
** This document was filed as an exhibit to Registrant's Form 10-K for the
fiscal year ended December 31, 1994, and is incorporated herein by this
reference.
@ This document was filed as an exhibit to Registrant's Form S-8 filed on
March 8, 1996 and is incorporated herein by this reference.
(b) Reports on Form 8-K:
None
<PAGE>
Exhibit 3.2
BYLAWS
OF
MERCURY GENERAL CORPORATION
<PAGE>
TABLE OF CONTENTS
-----------------
<TABLE>
<CAPTION>
Page
----
<S> <C> <C>
ARTICLE I - OFFICES....................................................................... 1
Section 1. PRINCIPAL OFFICES....................................................... 1
Section 2. OTHER OFFICES........................................................... 1
ARTICLE II - MEETINGS OF SHAREHOLDERS..................................................... 1
Section 1. PLACE OF MEETINGS....................................................... 1
Section 2. ANNUAL MEETINGS OF SHAREHOLDERS......................................... 1
Section 3. SPECIAL MEETINGS........................................................ 1
Section 4. NOTICE OF SHAREHOLDERS' MEETINGS........................................ 2
Section 5. MANNER OF GIVING NOTICE; AFFIDAVIT OF NOTICE............................ 2
Section 6. QUORUM.................................................................. 3
Section 7. ADJOURNED MEETING AND NOTICE THEREOF.................................... 3
Section 8. VOTING.................................................................. 3
Section 9. WAIVER OF NOTICE OR CONSENT BY ABSENT SHAREHOLDERS...................... 4
Section 10. SHAREHOLDER ACTION BY WRITTEN CONSENT WITHOUT A MEETING................. 4
Section 11. RECORD DATE FOR SHAREHOLDER NOTICE, VOTING, AND GIVING CONSENTS......... 5
Section 12. PROXIES................................................................. 5
Section 13. INSPECTORS OF ELECTION.................................................. 6
ARTICLE III - DIRECTORS................................................................... 7
Section 1. POWERS.................................................................. 7
Section 2. NUMBER AND QUALIFICATION OF DIRECTORS................................... 7
Section 3. ELECTION AND TERM OF OFFICE OF DIRECTORS................................ 7
Section 4. VACANCIES............................................................... 7
Section 5. PLACE OF MEETINGS AND TELEPHONIC MEETINGS............................... 8
Section 6. ANNUAL MEETINGS......................................................... 8
Section 7. OTHER REGULAR MEETINGS.................................................. 8
Section 8. SPECIAL MEETINGS........................................................ 8
Section 9. DISPENSING WITH NOTICE.................................................. 9
Section 10. QUORUM.................................................................. 9
Section 11. ADJOURNMENT............................................................. 9
Section 12. NOTICE OF ADJOURNMENT................................................... 9
Section 13. ACTION WITHOUT MEETING.................................................. 9
Section 14. FEES AND COMPENSATION OF DIRECTORS...................................... 9
</TABLE>
i
<PAGE>
<TABLE>
<S> <C> <C>
ARTICLE IV - COMMITTEES................................................................... 10
Section 1. COMMITTEES OF DIRECTORS................................................. 10
Section 2. MEETINGS AND ACTION OF COMMITTEES....................................... 10
ARTICLE V - OFFICERS...................................................................... 11
Section 1. OFFICERS................................................................ 11
Section 2. ELECTION OF OFFICERS.................................................... 11
Section 3. SUBORDINATE OFFICERS, ETC............................................... 11
Section 4. REMOVAL AND RESIGNATION OF OFFICERS..................................... 11
Section 5. VACANCIES IN OFFICES.................................................... 11
Section 6. CHAIRMAN OF THE BOARD................................................... 11
Section 7. PRESIDENT............................................................... 12
Section 8. VICE PRESIDENTS......................................................... 12
Section 9. SECRETARY............................................................... 12
Section 10. CHIEF FINANCIAL OFFICER................................................. 12
ARTICLE VI - INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES AND OTHER AGENTS............ 13
Section 1. SCOPE OF INDEMNIFICATION................................................ 13
Section 2. NON-EXCLUSITIVITY OF RIGHTS............................................. 14
Section 3. TERM AND HEIRS.......................................................... 14
Section 4. SEVERABILITY............................................................ 14
Section 5. AMENDMENTS.............................................................. 14
ARTICLE VII - RECORDS AND REPORTS......................................................... 14
Section 1. MAINTENANCE AND INSPECTION OF SHARE REGISTER............................ 14
Section 2. MAINTENANCE AND INSPECTION OF BYLAWS.................................... 15
Section 3. MAINTENANCE AND INSPECTION OF OTHER CORPORATE RECORDS................... 15
Section 4. INSPECTION BY DIRECTORS................................................. 15
Section 5. ANNUAL REPORT TO SHAREHOLDERS........................................... 15
Section 6. FINANCIAL STATEMENTS.................................................... 16
ARTICLE VIII - GENERAL CORPORATE MATTERS.................................................. 16
Section 1. RECORD DATE FOR PURPOSES OTHER THAN NOTICE AND VOTING................... 16
Section 2. CHECKS, DRAFTS, EVIDENCES OF INDEBTEDNESS............................... 17
Section 3. CORPORATE CONTRACTS AND INSTRUMENTS; HOW EXECUTED....................... 17
Section 4. CERTIFICATES FOR SHARES................................................. 17
Section 5. LOST CERTIFICATES....................................................... 17
Section 6. REPRESENTATION OF SHARES OF OTHER CORPORATIONS.......................... 17
</TABLE>
ii
<PAGE>
<TABLE>
<CAPTION>
Page
----
<S> <C> <C>
ARTICLE IX - AMENDMENTS................................................................... 18
Section 1. AMENDMENT BY SHAREHOLDERS............................................... 18
Section 2. AMENDMENT BY DIRECTORS.................................................. 18
ARTICLE X - GENERAL....................................................................... 18
Section 1. GOVERNING LAW........................................................... 18
Section 2. CONSTRUCTION AND DEFINITIONS............................................ 18
</TABLE>
iii
<PAGE>
BYLAWS
OF
MERCURY GENERAL CORPORATION
ARTICLE I
OFFICES
Section 1. PRINCIPAL OFFICES. The Board of Directors shall fix the
location of the principal executive office of the corporation at any place
within or outside the State of California. If the principal executive office is
located outside this state, and the corporation has one or more business offices
in this state, the Board of Directors shall likewise fix and designate a
principal business office in the State of California.
Section 2. OTHER OFFICES. The Board of Directors may at any time
establish branch or subordinate offices at any place or places where the
corporation is qualified to do business.
ARTICLE II
MEETINGS OF SHAREHOLDERS
Section 1. PLACE OF MEETINGS. Meetings of shareholders shall be held at
any place within or outside the State of California designated by the Board of
Directors. In the absence of any such designation, shareholders' meetings shall
be held at the principal executive office of the corporation.
Section 2. ANNUAL MEETINGS OF SHAREHOLDERS. The annual meeting of
shareholders shall be held each year on a date and at a time designated by the
Board of Directors. At each annual meeting directors shall be elected and any
other proper business may be transacted.
Section 3. SPECIAL MEETINGS. A special meeting of the shareholders may be
called at any time by the Board of Directors, or by the Chairman of the Board,
or by the President, or by one or more shareholders holding shares in the
aggregate entitled to cast not less than 10% of the votes at any such meeting.
If a special meeting is called by any person or persons other than the
Board of Directors, the request shall be in writing, specifying the time of such
meeting and the general nature of the business proposed to be transacted, and
shall be delivered personally or sent by registered mail or by telegraphic or
other facsimile transmission to the Chairman of the Board, the President, any
Vice President or the Secretary of the corporation. The officer receiving such
request forthwith shall cause notice to be given to the shareholders entitled to
vote, in accordance with the provisions of Sections 4 and 5 of this Article II,
that a meeting will be held at the time requested by the person or persons
calling the meeting, not less than thirty-five (35) nor more than
sixty (60) days after the
<PAGE>
receipt of the request. If the notice is not given within twenty (20) days after
receipt of the request, the person or persons requesting the meeting may give
the notice. Nothing contained in this paragraph of this Section 3 shall be
construed as limiting, fixing or affecting the time when a meeting of
shareholders called by action of the Board of Directors may be held.
Section 4. NOTICE OF SHAREHOLDERS' MEETINGS. All notices of meetings of
shareholders shall be sent or otherwise given in accordance with Section 5 of
this Article II not less than ten (10) nor more than sixty (60) days before the
date of the meeting being noticed. The notice shall specify the place, date and
hour of the meeting and (i) in the case of a special meeting, the general nature
of the business to be transacted, or (ii) in the case of the annual meeting
those matters which the Board of Directors, at the time of giving the notice,
intends to present for action by the shareholders. The notice of any meeting at
which directors are to be elected shall include the name of any nominee or
nominees which, at the time of the notice, management intends to present for
election.
If action is proposed to be taken at any meeting for approval of (i) a
contract or transaction in which a director has a direct or indirect financial
interest, pursuant to Section 310 of the Corporations Code of California, (ii)
an amendment of the articles of incorporation, pursuant to Section 902 of such
Code, (iii) a reorganization of the corporation, pursuant to Section 1201 of
such Code, (iv) a voluntary dissolution of the corporation, pursuant to Section
1900 of such Code, or (v) a distribution in dissolution other than in accordance
with the rights of outstanding preferred shares pursuant to Section 2007 of such
Code, the notice shall also state the general nature of such proposal.
Section 5. MANNER OF GIVING NOTICE; AFFIDAVIT OF NOTICE. Notice of any
meeting of shareholders shall be given either personally or by first-class mail
or telegraphic or other written communication, charges prepaid, addressed to the
shareholder at the address of such shareholder appearing on the books of the
corporation or given by the shareholder to the corporation for the purpose of
notice. If no such address appears on the corporation's books or has been so
given, notice shall be deemed to have been given if sent by first-class mail or
telegraphic or other written communication to the corporation's principal
executive office, or if published at least once in a newspaper of general
circulation in the county where such office is located. Notice shall be deemed
to have been given at the time when delivered personally or deposited in the
mail or sent by telegram or other means of written communication.
If any notice addressed to a shareholder at the address of such shareholder
appearing on the books of the corporation is returned to the corporation by the
United States Postal Service marked to indicate that the United States Postal
Service is unable to deliver the notice to the shareholder at such address, all
future notices or reports shall be deemed to have been duly given without
further mailing if the same shall be available to the shareholder upon written
demand of the shareholder at the principal executive office of the corporation
for a period of one year from the date of the giving of such notice.
An affidavit of the mailing or other means of giving any notice of any
shareholders' meeting shall be executed by the Secretary, Assistant Secretary or
any transfer agent of the corporation giving such notice, and shall be filed and
maintained in the minute book of the corporation.
2
<PAGE>
Section 6. QUORUM. The presence in person or by proxy of the holders of a
majority of the shares entitled to vote at any meeting of shareholders shall
constitute a quorum for the transaction of business. The shareholders present
at a duly called or held meeting at which a quorum is present may continue to do
business until adjournment, notwithstanding the withdrawal of enough
shareholders to leave less than a quorum, if any action taken (other than
adjournment) is approved by at least a majority of the shares required to
constitute a quorum.
Section 7. ADJOURNED MEETING AND NOTICE THEREOF. Any shareholders'
meeting, annual or special, whether or not a quorum is present, may be adjourned
from time to time by the vote of the majority of the shares represented at such
meeting, either in person or by proxy, but in the absence of a quorum, no other
business may be transacted at such meeting, except as provided in Section 6 of
this Article II.
When any meeting of shareholders, either annual or special, is adjourned to
another time or place, notice need not be given of the adjourned meeting if the
time and place thereof are announced at the meeting at which the adjournment is
taken, unless a new record date for the adjourned meeting is fixed, or unless
the adjournment is for more than forty-five (45) days from the date set for the
original meeting, in which case the Board of Directors shall set a new record
date. Notice of any such adjourned meeting, if required, shall be given to each
shareholder of record entitled to vote at the adjourned meeting in accordance
with the provisions of Sections 4 and 5 of this Article II. At any adjourned
meeting the corporation may transact any business which might have been
transacted at the original meeting.
Section 8. VOTING. The shareholders entitled to vote at any meeting of
shareholders shall be determined in accordance with the provisions of Section 11
of this Article II, subject to the provisions of Sections 702 to 704, inclusive,
of the Corporations Code of California (relating to voting shares held by a
fiduciary, in the name of a corporation or in joint ownership). Such vote may
be by voice vote or by ballot; provided, however, that all elections for
directors must be by ballot upon demand by a shareholder at any election and
before the voting begins. Any shareholder entitled to vote on any matter (other
than the election of directors) may vote part of the shares in favor of the
proposal and refrain from voting the remaining shares or vote them against the
proposal, but, if the shareholder fails to specify the number of shares such
shareholder is voting affirmatively, it will be conclusively presumed that the
shareholder's approving vote is with respect to all shares such shareholder is
entitled to vote. If a quorum is present, the affirmative vote of the majority
of the shares represented at the meeting and voting on any matter (other than
the election of directors), provided that the shares voting affirmatively must
also constitute at least a majority of the required quorum, shall be the act of
the shareholders, unless the vote of a greater number or voting by classes is
required by the California General Corporation Law or the articles of
incorporation.
At a shareholders' meeting involving the election of directors, no
shareholder shall be entitled to cumulate votes (i.e., cast for any candidate a
number of votes greater than the number of the shareholder's shares) unless such
candidate or candidates' names have been placed in nomination prior to
commencement of the voting and a shareholder has given notice prior to
commencement of the voting of the shareholder's intention to cumulate votes. If
any shareholder has given such notice, then every shareholder entitled to vote
may cumulate such shareholder's votes for candidates in nomination and give one
candidate a number of votes equal to the number of directors to be elected
multiplied by the number of votes to which such shareholder's shares are
3
<PAGE>
entitled, or distribute the shareholder's votes on the same principle among any
or all of the candidates, as the shareholder thinks fit. The candidates
receiving the highest number of votes, up to the number of directors to be
elected, shall be elected.
Section 9. WAIVER OF NOTICE OR CONSENT BY ABSENT SHAREHOLDERS. The
transactions of any meeting of shareholders, either annual or special, however
called and noticed, and wherever held, shall be as valid as though had at a
meeting duly held after regular call and notice, if a quorum be present either
in person or by proxy, and if, either before or after the meeting, each person
entitled to vote, not present in person or by proxy, signs a written waiver of
notice or a consent to the holding of the meeting, or an approval of the minutes
thereof. The waiver of notice or consent need not specify either the business
to be transacted or the purpose of any annual or special meeting of
shareholders, except that if action is taken or proposed to be taken for
approval of any of those matters specified in the second paragraph of Section 4
of this Article II, the waiver of notice or consent shall state the general
nature of such proposal. All such waivers, consents or approvals shall be filed
with the corporate records or made a part of the minutes of the meeting.
Attendance of a person at a meeting shall also constitute a waiver of
notice of such meeting, except when the person objects, at the beginning of the
meeting, to the transaction of any business because the meeting is not lawfully
called or convened, and except that attendance at a meeting is not a waiver of
any right to object to the consideration of matters not included in the notice
of the meeting if such objection is expressly made at the meeting.
Section 10. SHAREHOLDER ACTION BY WRITTEN CONSENT WITHOUT A MEETING. Any
action which may be taken at any annual or special meeting of shareholders may
be taken without a meeting and without prior notice, if a consent in writing,
setting forth the action so taken, is signed by the holders of outstanding
shares having not less than the minimum number of votes that would be necessary
to authorize or take such action at a meeting at which all shares entitled to
vote thereon were present and voted. In the case of election of directors, such
consent shall be effective only if signed by the holders of all outstanding
shares entitled to vote for the election of directors; provided, however, that a
director may be elected at any time to fill a vacancy not created by removal and
not filled by the directors by the written consent of the holders of a majority
of the outstanding shares entitled to vote for the election of directors. All
such consents shall be filed with the Secretary of the corporation and shall be
maintained in the corporate records. Any shareholder giving a written consent,
or the shareholder's proxy holders, or a transferee of the shares or a personal
representative of the shareholder or their respective proxy holder, may revoke
the consent by a writing received by the Secretary of the corporation prior to
the time that written consents of the number of shares required to authorize the
proposed action have been filed with the Secretary.
Unless the consents of all shareholders entitled to vote have been
solicited in writing, the Secretary shall give prompt notice of any corporate
action approved by the shareholders without a meeting by less than unanimous
consent, to those shareholders entitled to vote who have not consented in
writing. Such notice shall be given in the manner specified in Section 5 of
this Article II. In the case of approval of (i) contracts or transactions in
which a director has a direct or indirect financial interest, pursuant to
Section 310 of the Corporations Code of California, (ii) indemnification of
agents of the corporation, pursuant to Section 317 of such Code, (iii) a
reorganization of the corporation, pursuant to Section 1201 of such Code, or
(iv) a distribution in dissolution other than
4
<PAGE>
in accordance with the rights of outstanding preferred shares pursuant to
Section 2007 of such Code, such notice shall be given at least ten (10) days
before the consummation of any such action authorized by any such approval.
Section 11. RECORD DATE FOR SHAREHOLDER NOTICE, VOTING, AND GIVING
CONSENTS. For purposes of determining the shareholders entitled to notice of
any meeting or to vote or entitled to give consent to corporate action without a
meeting, the Board of Directors may fix, in advance, a record date, which shall
not be more than sixty (60) days nor less than ten (10) days prior to the date
of any such meeting nor more than sixty (60) days prior to such action without a
meeting, and in such case only shareholders of record at the close of business
on the date so fixed are entitled to notice and to vote or to give consents, as
the case may be, notwithstanding any transfer of any shares on the books of the
corporation after the record date fixed as aforesaid, except as otherwise
provided in the California General Corporation Law.
If the Board of Directors does not so fix a record date:
(a) The record date for determining shareholders entitled to
notice of or to vote at a meeting of shareholders shall be at the close of
business on the business day next preceding the day on which notice if
given or, if notice is waived, at the close of business on the business day
next preceding the day on which the meeting is held.
(b) The record date for determining shareholders entitled to give
consent to corporate action in writing without a meeting, (i) when no prior
action by the Board has been taken, shall be the day on which the first
written consent is given, or (ii) when prior action of the Board has been
taken, shall be at the close of business on the day on which the Board
adopts the resolution relating thereto, or the sixtieth (60th) day prior to
the date of such other action, whichever is later.
Section 12. PROXIES. Every person entitled to vote for directors or
on any other matter shall have the right to do so either in person or by one or
more agents authorized by a written proxy signed by the person and filed with
the Secretary of the corporation. A proxy shall be deemed signed if the
shareholder's name is placed on the proxy (whether by manual signature,
typewriting, telegraphic transmission or otherwise) by the shareholder or the
shareholder's attorney in fact. A validly executed proxy which does not state
that it is irrevocable shall continue in full force and effect unless (i)
revoked by the person executing it, prior to the vote pursuant thereto, by a
writing delivered to the corporation stating that the proxy is revoked or by a
subsequent proxy presented to the meeting and executed by, or attendance at the
meeting and voting in person by, the person executing the proxy; or (ii) written
notice of the death or incapacity of the maker of such proxy is received by the
corporation before the vote pursuant thereto is counted; provided, however, that
no such proxy shall be valid after the expiration of eleven (11) months from the
date of such proxy, unless otherwise provided in the proxy. The revocability of
a proxy that states on its face that it is irrevocable shall be governed by the
provisions of Section 705(e) and (f) of the Corporations Code of California.
5
<PAGE>
Section 13. INSPECTORS OF ELECTION. Before any meeting of
shareholders, the Board of Directors may appoint any persons other than nominees
for office to act as inspectors of election at the meeting or its adjournment.
If no inspectors of election are so appointed, the chairman of the meeting may,
and on the request of any shareholder or a shareholder's proxy shall, appoint
inspectors of election at the meeting. The number of inspectors shall be either
one (l) or three (3). If inspectors are appointed at a meeting on the request
of one or more shareholders or proxies, the holders of a majority of shares or
their proxies present at the meeting shall determine whether one (l) or three
(3) inspectors are to be appointed. If any person appointed as inspector fails
to appear or fails or refuses to act, the chairman of the meeting may, and upon
the request of any shareholder or a shareholder's proxy shall, appoint a person
to fill such vacancy.
The duties of these inspectors shall be as follows:
(a) Determine the number of shares outstanding and the voting
power of each, the shares represented at the meeting, the existence of a
quorum, and the authenticity, validity and effect of proxies;
(b) Receive votes, ballots or consents;
(c) Hear and determine all challenges and questions in any way
arising in connection with the right to vote;
(d) Count and tabulate all votes or consents;
(e) Determine when the polls shall close;
(f) Determine the result; and
(g) Do any other acts that may be proper to conduct the election
or vote with fairness to all shareholders.
ARTICLE III
DIRECTORS
Section 1. POWERS. Subject to the provisions of the California
General Corporation Law and any limitations in the articles of incorporation and
these bylaws relating to action required to be approved by the shareholders or
by the outstanding shares, the business and affairs of the corporation shall be
managed and all corporate powers shall be exercised by or under the direction of
the Board of Directors.
Without prejudice to such general powers, but subject to the same
limitations, it is hereby expressly declared that the directors shall have the
power and authority to:
(a) Select and remove all officers, agents, and employees of the
corporation, prescribe such powers and duties for them as may not be
inconsistent with law, the articles of incorporation or these bylaws, fix
their compensation, and require from them security for faithful service.
6
<PAGE>
(b) Change the principal executive office or the principal
business office in the State of California from one location to another;
cause the corporation to be qualified to do business in any other state,
territory, dependency, or foreign country and conduct business within or
outside the State of California; designate any place within or without the
State for the holding of any shareholders' meeting or meetings, including
annual meetings; adopt, make and use a corporate seal, and prescribe the
forms of certificates of stock, and alter the form of such seal and of such
certificates from time to time as in their judgment they may deem best,
provided that such forms shall at all times comply with the provisions of
law.
(c) Authorize the issuance of shares of stock of the corporation
from time to time, upon such terms as may be lawful, in consideration of
money paid, labor done or services actually rendered, debts or securities
cancelled or tangible or intangible property actually received.
(d) Borrow money and incur indebtedness for the purposes of the
corporation, and cause to be executed and delivered therefor, in the
corporate name, promissory notes, bonds, debentures, deeds of trust,
mortgages, pledges, hypothecations, or other evidences of debt and
securities therefor.
Section 2. NUMBER AND QUALIFICATION OF DIRECTORS. The number of
directors of the corporation shall be not less than five (5) nor more than nine
(9). The exact number of directors shall be nine (9) until changed, within the
limits specified above, by a bylaw amending this Section 2, duly adopted by the
Board of Directors or by the shareholders. Such indefinite number of directors
may be changed, or a definite number fixed without provision for an indefinite
number, by a duly adopted amendment to the Articles of Incorporation or by an
amendment to this bylaw duly adopted by the vote or written consent of holders
of a majority of the outstanding shares entitled to vote; provided, however,
that an amendment reducing the number or the minimum number of directors to a
number less than five cannot be adopted if the votes cast against its adoption
at a meeting of the shareholders, or the shares not consenting in the case of
action by written consent, are equal to more than 16-2/3% of the outstanding
shares entitled to vote. No amendment may change the stated maximum number of
authorized directors to a number greater than two times the stated minimum
number of directors minus one.
Section 3. ELECTION AND TERM OF OFFICE OF DIRECTORS. Directors shall
be elected at each annual meeting of the shareholders to hold office until the
next annual meeting. Each director, including a director elected to fill a
vacancy, shall hold office until the expiration of the term for which elected
and until a successor has been elected and qualified.
Section 4. VACANCIES. Vacancies in the Board of Directors may be
filled by a majority of the remaining directors, though less than a quorum, or
by a sole remaining director, except that a vacancy created by the removal of a
director by the vote or written consent of the shareholders or by court order
may be filled only by the vote of a majority of the shares represented and
voting at a duly held meeting at which a quorum is present, or by the written
consent of holders of all outstanding shares entitled to vote. Each director so
elected shall hold office until the next annual meeting of the shareholders and
until a successor has been elected and qualified.
7
<PAGE>
A vacancy or vacancies in the Board of Directors shall be deemed to
exist in the case of the death, resignation or removal of any director, or if
the Board of Directors by resolution declares vacant the office of a director
who has been declared of unsound mind by an order of court or convicted of a
felony, or if the authorized number of directors be increased, or if the
shareholders fail, at any meeting of shareholders at which any director or
directors are elected, to elect the full authorized number of directors to be
voted for at that meeting.
The shareholders may elect a director or directors at any time to fill
any vacancy or vacancies not filled by the directors, but any such election by
written consent, other than to fill a vacancy created by removal, shall require
the consent of a majority of the outstanding shares entitled to vote.
Any director may resign upon giving written notice to the Chairman of
the Board, the President, the Secretary or the Board of Directors. A
resignation shall be effective upon the giving of the notice, unless the notice
specifies a later time for its effectiveness. If the resignation of a director
is effective at a future time, the Board of Directors may elect a successor to
take office when the resignation becomes effective.
No reduction of the authorized number of directors shall have the
effect of removing any director prior to the expiration of his term of office.
Section 5. PLACE OF MEETINGS AND TELEPHONIC MEETINGS. Regular
meetings of the Board of Directors may be held at any place within or without
the State that has been designated from time to time by resolution of the board.
In the absence of such designation, regular meetings shall be held at the
principal executive office of the corporation. Special meetings of the board
shall be held at any place within or without the State that has been designated
in the notice of the meeting or, if not stated in the notice or there is no
notice, at the principal executive office of the corporation. Any meeting,
regular or special, may be held by conference telephone or similar communication
equipment, so long as all directors participating in such meeting can hear one
another, and all such directors shall be deemed to be present in person at such
meeting.
Section 6. ANNUAL MEETINGS. Immediately following each annual
meeting of shareholders, the Board of Directors shall hold a regular meeting for
the purpose of organization, any desired election of officers and the
transaction of other business. Notice of this meeting shall not be required.
Section 7. OTHER REGULAR MEETINGS. Other regular meetings of the
Board of Directors shall be held without call at such time as shall from time to
time be fixed by the Board of Directors. Such regular meetings may be held
without notice.
Section 8. SPECIAL MEETINGS. Special meetings of the Board of
Directors for any purpose or purposes may be called at any time by the Chairman
of the Board or the President or any Vice President or the Secretary or any two
directors.
Notice of the time and place of special meetings shall be delivered
personally or by telephone to each director or sent by first-class mail or
telegram, charges prepaid, addressed to each director at his or her address as
it is shown upon the records of the corporation. In case such notice is mailed,
it shall be deposited in the United States mail at least four (4) days prior to
the time of the
8
<PAGE>
holding of the meeting. In case such notice is delivered personally, or by
telephone or telegram, it shall be delivered personally or by telephone or to
the telegraph company at least forty-eight (48) hours prior to the time of the
holding of the meeting. Any oral notice given personally or by telephone may be
communicated to either the director or to a person at the office of the director
who the person giving the notice has reason to believe will promptly communicate
it to the director. The notice need not specify the purpose of the meeting nor
the place if the meeting is to be held at the principal executive office of the
corporation.
Section 9. DISPENSING WITH NOTICE. The transactions of any meeting
of the Board of Directors, however called and noticed or wherever held, shall be
as valid as though had at a meeting duly held after regular call and notice if a
quorum be present and if, either before or after the meeting, each of the
directors not present signs a written waiver of notice, a consent to holding the
meeting or an approval of the minutes thereof. The waiver of notice or consent
need not specify the purpose of the meeting. All such waivers, consents and
approvals shall be filed with the corporate records or made a part of the
minutes of the meeting. Notice of a meeting need not be given to any director
who attends the meeting without protesting, prior thereto or at its
commencement, the lack of notice to such director.
Section 10. QUORUM. A majority of the authorized number of directors
shall constitute a quorum for the transaction of business, except to adjourn as
hereinafter provided. Every act or decision done or made by a majority of the
directors present at a meeting duly held at which a quorum is present shall be
regarded as the act of the Board of Directors, subject to the provisions of
Section 310 of the Corporations Code of California (approval of contracts or
transactions in which a director has a direct or indirect material financial
interest), Section 311 (appointment of committees), and Section 317 (e)
(indemnification of directors). A meeting at which a quorum is initially
present may continue to transact business notwithstanding the withdrawal of
directors, if any action taken is approved by at least a majority of the
required quorum for such meeting.
Section 11. ADJOURNMENT. A majority of the directors present,
whether or not constituting a quorum, may adjourn any meeting to another time
and place.
Section 12. NOTICE OF ADJOURNMENT. Notice of the time and place of
holding an adjourned meeting need not be given, unless the meeting is adjourned
for more than twenty-four (24) hours, in which case notice of such time and
place shall be given prior to the time of the adjourned meeting, in the manner
specified in Section 8 of this Article III, to the directors who were not
present at the time of the adjournment.
Section 13. ACTION WITHOUT MEETING. Any action required or permitted
to be taken by the Board of Directors may be taken without a meeting, if all
members of the board shall individually or collectively consent in writing to
such action. Such action by written consent shall have the same force and
effect as a unanimous vote of the Board of Directors. Such written consent or
consents shall be filed with the minutes of the proceedings of the board.
Section 14. FEES AND COMPENSATION OF DIRECTORS. Directors and
members of committees may receive such compensation, if any, for their services,
and such reimbursement of expenses, as may be fixed or determined by resolution
of the Board of Directors. Nothing herein contained shall be construed to
preclude any director from serving the corporation
9
<PAGE>
in any other capacity as an officer, agent, employee, or otherwise, and
receiving compensation for such services.
ARTICLE IV
COMMITTEES
Section 1. COMMITTEES OF DIRECTORS. The Board of Directors may, by
resolution adopted by a majority of the authorized number of directors,
designate one or more committees, each consisting of two or more directors, to
serve at the pleasure of the board. The board may designate one or more
directors as alternate members of any committee, who may replace any absent
member at any meeting of the committee. Any such committee, to the extent
provided in the resolution of the board, shall have all the authority of the
board, except with respect to:
(a) the approval of any action which, under the General
Corporation Law of California, also requires shareholders' approval or
approval of the outstanding shares;
(b) the filling of vacancies on the Board of Directors or in any
committee;
(c) the fixing of compensation of the directors for serving on
the board or on any committee;
(d) the amendment or repeal of bylaws or the adoption of new
bylaws;
(e) the amendment or repeal of any resolution of the Board of
Directors which by its express terms is not so amendable or repealable;
(f) a distribution to the shareholders of the corporation, except
at a rate or in a periodic amount or within a price range determined by the
Board of Directors; or
(g) the appointment of any other committees of the Board of
Directors or the members thereof.
Section 2. MEETINGS AND ACTION OF COMMITTEES. Meetings and action of
committees shall be governed by, and held and taken in accordance with, the
provisions of Article III of these bylaws, Sections 5 (place of meetings), 7
(regular meetings), 8 (special meetings and notice), 9 (dispensing with notice),
10 (quorum), 11 (adjournment), 12 (notice of adjournment) and 13 (action without
meeting), with such changes in the context of those bylaws as are necessary to
substitute the committee and its members for the Board of Directors and its
members, except that the time of regular meetings of committees may be
determined by resolution of the Board of Directors as well as the committee,
special meetings of committees may also be called by resolution of the Board of
Directors and notice of special meetings of committees shall also be given to
all alternate members, who shall have the right to attend all meetings of the
committee. The Board of
10
<PAGE>
Directors may adopt rules for the government of any committee not inconsistent
with the provisions of these bylaws.
ARTICLE V
OFFICERS
Section 1. OFFICERS. The officers of the corporation shall be a
Chief Executive Officer, a President, a Secretary and a Chief Financial Officer.
The corporation may also have, at the discretion of the Board of Directors, a
Chairman of the Board, one or more Vice Presidents, one or more Assistant
Secretaries, one or more Assistant Treasurers, and such other officers as may be
appointed in accordance with the provisions of Section 3 of this Article V. Any
number of offices may be held by the same person.
Section 2. ELECTION OF OFFICERS. The officers of the corporation,
except such officers as may be appointed in accordance with the provisions of
Section 3 of this Article V, shall be chosen by the Board of Directors, and each
shall serve at the pleasure of the Board, subject to the rights, if any, of an
officer under any contract of employment.
Section 3. SUBORDINATE OFFICERS, ETC. The Board of Directors may
empower the Chief Executive Officer to appoint all officers, other than the
President, as the business of the corporation may require, each of whom shall
hold office for such period, have such authority and perform such duties as are
provided in the Bylaws or as the Board of Directors or the Chief Executive
Officer, as the case may be, may from time to time determine.
Section 4. REMOVAL AND RESIGNATION OF OFFICERS. Subject to the
rights, of any, of an officer under any contract of employment, any officer may
be removed, either with or without cause, by the Board of Directors, at any
regular or special meeting thereof, or, except in case of an officer chosen by
the Board of Directors, by any officer upon whom such power of removal may be
conferred by the Board of Directors.
Any officer may resign at any time by giving written notice to the
corporation. Any 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. Any such resignation is without prejudice to the rights, if
any, of the corporation under any contract to which the officer is a party.
Section 5. VACANCIES IN OFFICE. A vacancy in any office because of
death, resignation, removal, disqualification or any other cause shall be filled
in the manner prescribed in these Bylaws for regular appointments to such
office.
Section 6. CHAIRMAN OF THE BOARD. The Chairman of the Board, if such
officer be elected, shall, if present, preside at all meetings of the Board of
Directors and exercise and perform such other powers and duties as may be from
time to time assigned to him by the Board of Directors or prescribed by the
Bylaws. If there is no Chief Executive Officer, the Chairman of the Board shall
in addition be the Chief Executive Officer of the corporation and shall have the
powers and duties prescribed in Section 7 of this Article V.
11
<PAGE>
Section 7. CHIEF EXECUTIVE OFFICER. The Board of Directors shall
appoint a Chief Executive Officer. In the absence of such appointment, the
Chairman of the Board shall be the Chief Executive Officer of the Corporation.
The Chief Executive Officer shall have the general responsibility for
implementation of the policies of the Corporation, as determined by the Board of
Directors, and for the management of the business and affairs of the
Corporation. He shall preside at all meetings of the shareholders and, in the
absence of the Chairman of the Board, or if there be none, at all meetings of
the Board of Directors.
Section 8. PRESIDENT. Subject to such supervisory powers, if any, as
may be given by the Board of Directors to the Chairman of the Board or the Chief
Executive Officer, the President shall be the chief operating officer of the
corporation and shall, subject to the control of the Board of Directors, have
general supervision, direction and control of the operations and the officers of
the corporation. He shall have the general powers and duties of management
usually vested in the office of President of a corporation, and shall have such
other powers and duties as may be prescribed by the Board of Directors or the
Bylaws.
Section 9. VICE PRESIDENTS. In the absence or disability of the
President, the Vice Presidents, if any, in order of their rank as fixed by the
Board of Directors or, if not ranked, a Vice President designated by the Board
of Directors, shall perform all 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. The Vice President shall have such other powers and perform such
other duties as from time to time may be prescribed for them respectively by the
Board of Directors or the Bylaws, the President or the Chairman of the Board if
there is no President.
Section 10. SECRETARY. The Secretary shall keep or cause to be kept,
at the principal executive officer or such other place as the Board of Directors
may order, a book of minutes of all meetings and actions of directors,
committees of directors and shareholders, with the time and place of holding,
whether regular or special, and, if special, how authorized, the notice thereof
given, the names of those present at directors' and committee meetings, the
number of shares present or represented at shareholders' meetings, and the
proceedings thereof.
The Secretary shall keep, or cause to be kept, at the principal
executive office or at the office of the corporation's transfer agent or
registrar, as determined by resolution of the Board of Directors, a share
register, or a duplicate share register, showing the names of all shareholders
and their addresses, the number and classes of shares held by each, the number
and date of certificates issued for the same, and the number and date of
cancellation of every certificate surrendered for cancellation.
The Secretary shall give, or cause to be given, notice of all meetings
of the shareholders and of the Board of Directors required by the Bylaws or by
law to be given, and he shall keep the seal of the corporation, if one be
adopted, in safe custody, and shall have such other powers and perform such
other duties as may be prescribed by the Board of Directors or by the Bylaws.
Section 10. CHIEF FINANCIAL OFFICER. The Chief Financial Officer shall
keep and maintain, or cause to be kept and maintained, adequate and correct
books and records of accounts of the properties and business transactions of the
corporation, including accounts of its
12
<PAGE>
assets, liabilities, receipts, disbursements, gains, losses, capital,
retained earnings and shares. The books of account shall be open at all
reasonable times to inspection by any director.
The Chief Financial Officer shall deposit all moneys and other values
in the name and to the credit of the corporation with such depositaries as may
be designated by the Board of Directors. He shall disburse the funds of the
corporation as may be ordered by the Board of Directors, shall render to the
President and directors, whenever they request it, an account of all of his
transactions as Chief Financial Officer and of the financial condition of the
corporation, and shall have other powers and perform such other duties as may be
prescribed by the Board of Directors or the Bylaws.
ARTICLE VI
INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES
AND OTHER AGENTS
Section 1. SCOPE OF INDEMNIFICATION.
a. The corporation shall, to the broadest and maximum extent
permitted by law, indemnify each person who was or is a party or is threatened
to be made a party to any proceeding by reason of the fact that such person is
or was a director of the corporation, or is or was serving at the request of the
corporation as a director of another corporation or other enterprise, against
expenses (including attorneys' fees), judgments, fines, settlements and other
amounts actually and reasonably incurred in connection with such proceeding. In
addition, the corporation shall, to the broadest and maximum extent permitted by
law, promptly upon demand pay to such person any and all expenses (including
attorneys' fees) incurred in defending or settling any such proceeding in
advance of the final disposition of such proceeding upon receipt of an
undertaking by or on behalf of the director to repay such amount if it shall
ultimately be determined by a final judgment or other final adjudication that
such person is not entitled to be indemnified by the corporation as authorized
as this Section 1.
b. If a claim under paragraph a. of this Section 1 is not paid in
full by the corporation within 45 days after a written claim has been received
by the corporation, the claimant may at any time thereafter bring suit against
the corporation to recover the unpaid amount of the claim and, if successful in
whole or in part, the claimant shall also be entitled to be paid the expenses of
prosecuting such claim, including attorneys' fees. It shall be a defense to any
such action (other than an action brought to enforce a claim for expenses
incurred in defending any proceeding in advance of its final disposition where
the required undertaking has been tendered to the corporation) that the claimant
has not met the standards of conduct which make it permissible under the
California Corporations Code for the corporation to indemnify the claimant for
the amount claimed, but the burden or proving such defense by clear and
convincing evidence shall be on the corporation.
c. The Board of Directors may in its discretion provide by resolution
for such indemnification of, or advance of expenses to, officers, employees or
agents of the corporation, and
13
<PAGE>
likewise may refuse to provide for such indemnification or advance of
expenses except to the extent such indemnification is mandatory under the
California General Corporation Law.
Section 2. NON-EXCLUSIVITY OF RIGHTS. The rights to indemnification and
to the advancement of expenses conferred in this Article VI shall not be
exclusive of any other right which any person may have or hereafter acquire
under any statute, the corporation's articles of incorporation or any bylaw,
agreement, vote of shareholders or disinterested directors or otherwise.
Section 3. TERM AND HEIRS. The rights to indemnification and advancement
of expenses conferred in this Article VI shall continue as to any person who has
ceased to be a director with respect to any acts or omissions that occurred
during the time such person was a director and shall inure to the benefit of the
heirs, executors and administrators of each such person.
Section 4. SEVERABILITY. If any provision of this Article VI shall be
found, in any proceeding or appeal therefrom or in any other circumstances or as
to any person entitled to indemnification hereunder to be unenforceable,
ineffective or invalid for any reason, the enforceability, effect and validity
of the remaining parts or of such parts in other circumstances shall not be
affected, except as otherwise required by applicable law.
Section 5. AMENDMENTS. The provisions of this Article VI shall be deemed
to constitute an agreement between the corporation and each of the persons
entitled to indemnification hereunder, for as long as such provisions remain in
effect. Any amendment to the provisions of this Article VI which limits or
otherwise adversely affects the scope of indemnification or rights of any such
persons hereunder shall, as to such persons, apply only to claims or causes of
action based on actions or events occurring after such amendment and delivery of
notice of such amendment is given to the person or persons so affected. Until
notice of such amendment is given to the person or persons whose rights
hereunder are affected, such amendment shall have no effect on such rights of
such persons hereunder. Any person entitled to indemnification under the
provisions of this Article VI shall as to any act or omission occurring prior to
the date of receipt of such notice, be entitled to indemnification to the same
extent as had such provisions continued as Bylaws of the corporation without
such amendment."
ARTICLE VII
RECORDS AND REPORTS
Section 1. MAINTENANCE AND INSPECTION OF SHARE REGISTER. The
corporation shall keep at its principal executive office, or at the office of
its transfer agent or registrar, if either be appointed and as determined by
resolution of the Board of Directors, a record of its shareholders, giving the
names and addresses of all shareholders and the number and class of shares held
by each shareholder.
A shareholder or shareholders of the corporation holding at least five
percent (5%) in the aggregate of the outstanding voting shares of the
corporation may (i) inspect and copy the records of shareholders' names and
addresses and shareholdings during usual business hours upon five (5) business
days prior written demand upon the corporation, and/or (ii) obtain from the
transfer agent of the corporation, upon written demand and upon the tender of
such transfer agent's usual charges for such list, a list of the shareholders'
names and addresses, who are entitled to vote for
14
<PAGE>
the election of directors, and their shareholdings, as of the most recent record
date for which such list has been compiled or as of a date specified by the
shareholder subsequent to the date of demand. Such list shall be made available
to such shareholder or shareholders by the transfer agent on or before the later
of five (5) business days after the demand is received or the date specified
therein as the date as of which the list is to be compiled. The record of
shareholders shall also be open to inspection upon the written demand of any
shareholder or holder of a voting trust certificate, at any time during usual
business hours, for a purpose reasonably related to such holder's interests as a
shareholder or as the holder of a voting trust certificate. Any inspection and
copying under this Section l may be made in person or by an agent or attorney of
the shareholder or holder of a voting trust certificate making such demand.
Section 2. MAINTENANCE AND INSPECTION OF BYLAWS. The corporation
shall keep at its principal executive office, or if its principal executive
office is not in the State of California at its principal business office in
this state, the original or a copy of the bylaws as amended to date, which shall
be open to inspection by the shareholders at all reasonable times during office
hours. If the principal executive office of the corporation is outside this
state and the corporation has no principal business office in this state, the
Secretary shall, upon the written request of any shareholder, furnish to such
shareholder a copy of the bylaws as amended to date.
Section 3. MAINTENANCE AND INSPECTION OF OTHER CORPORATE RECORDS.
The accounting books and records and minutes of proceedings of the shareholders
and the Board of Directors and any committee or committees of the Board of
Directors shall be kept at such place or places designated by the Board of
Directors, or, in the absence of such designation, at the principal executive
office of the corporation. The minutes shall be kept in written form and the
accounting books and records shall be kept either in written form or in any
other form capable of being converted into written form. Such minutes and
accounting books and records shall be open to inspection upon the written demand
of any shareholder or holder of a voting trust certificate, at any reasonable
time during usual business hours, for a purpose reasonably related to such
holder's interests as a shareholder or as the holder of a voting trust
certificate. Such inspection may be made in person or by an agent or attorney,
and shall include the right to copy and make extracts. The foregoing rights of
inspection shall extend to the records of each subsidiary corporation of the
corporation.
Section 4. INSPECTION BY DIRECTORS. Every director shall have the
absolute right at any reasonable time to inspect all books, records and
documents of every kind and the physical properties of the corporation and each
of its subsidiary corporations. Such inspection by a director may be made in
person or by agent or attorney and the right of inspection includes the right to
copy and make extracts.
Section 5. ANNUAL REPORT TO SHAREHOLDERS. The Board of Directors
shall cause an annual report to be sent to the shareholders not later than one
hundred twenty days (120) after the close of the fiscal year adopted by the
corporation. The annual report shall contain a balance sheet as of the end of
such fiscal year and an income statement and statement of changes in financial
position for such fiscal year, accompanied by any report thereon of independent
accountants or, if there is no such report, the certificate of an authorized
officer of the corporation that such statements were prepared without audit from
the books and records of the corporation. Such report shall be sent at least
fifteen (15) days prior to the annual meeting of shareholders to be
15
<PAGE>
held during the next fiscal year and in the manner specified in Section 5 of
Article II of these bylaws for giving notice to shareholders of the corporation.
Section 6. FINANCIAL STATEMENTS. A copy of any annual financial
statement and any income statement of the corporation for each quarterly period
of each fiscal year, and any accompanying balance sheet of the corporation as of
the end of each such period, that has been prepared by the corporation shall be
kept on file in the principal executive office of the corporation for twelve
(12) months and each such statement shall be exhibited at all reasonable times
to any shareholder demanding an examination of any such statement or a copy
shall be mailed to any such shareholder.
If the corporation has not sent to the shareholders an annual report
for the last fiscal year, a balance sheet as of the end of such fiscal year and
an income statement and statement of changes in financial position for such
fiscal year shall, upon the written request of any shareholder made more than
one hundred twenty (120) days after the close of such fiscal year, be delivered
or mailed to such shareholder within thirty (30) days after such request.
If a shareholder or shareholders holding at least five percent (5%) of
the outstanding shares of any class of stock of the corporation make a written
request to the corporation for an income statement of the corporation for the
three-month, six-month or nine-month period of the current fiscal year ended
more than thirty (30) days prior to the date of the request, and a balance sheet
of the corporation as of the end of such period, the Chief Financial Officer
shall cause such statement to be prepared, if not already prepared, and shall
deliver personally or mail such statement or statements to the person making the
request within thirty (30) days after the receipt of such request.
The corporation also shall, upon the written request of any
shareholder, mail to the shareholder a copy of the last annual, semi-annual or
quarterly income statement which it has prepared and a balance sheet as of the
end of such period.
The quarterly income statements and balance sheets referred to in this
section shall be accompanied by the report thereon, if any, of any independent
accountants engaged by the corporation or the certificate of an authorized
officer of the corporation that such financial statements were prepared without
audit from the books and records of the corporation.
ARTICLE VIII
GENERAL CORPORATE MATTERS
Section 1. RECORD DATE FOR PURPOSES OTHER THAN NOTICE AND VOTING.
For purposes of determining the shareholders entitled to receive payment of any
dividend or other distribution or allotment of any rights or entitled to
exercise any rights in respect of any other lawful action, (other than action by
shareholders by written consent without a meeting) the Board of Directors may
fix, in advance, a record date, which shall not be more than sixty (60) days
prior to any such action, and in such case only shareholders of record on the
date so fixed are entitled to receive the dividend, distribution or allotment of
rights or to exercise the rights, as the case may be, notwithstanding any
transfer of any shares on the books of the corporation after the
16
<PAGE>
record date fixed as aforesaid, except as otherwise provided in the California
General Corporation Law.
If the Board of Directors does not so fix a record date, the record
date for determining shareholders for any such purpose shall be at the close of
business on the day on which the board adopts the resolution relating thereto,
or the sixtieth (60th) day prior to the date of such action, whichever is later.
Section 2. CHECKS, DRAFTS, EVIDENCES OF INDEBTEDNESS. All checks,
drafts or other orders for payment of money, notes or other evidences of
indebtedness, issued in the name of or payable to the corporation, shall be
signed or endorsed by such person or persons and in such manner as, from time to
time, shall be determined by resolution of the Board of Directors.
Section 3. CORPORATE CONTRACTS AND INSTRUMENTS; HOW EXECUTED. The
Board of Directors, except as otherwise provided in these bylaws, may authorize
any officer or officers, agent or agents, to enter into any contract or execute
any instrument in the name of and on behalf of the corporation, and such
authority may be general or confined to specific instances; and, unless so
authorized or ratified by the Board of Directors or within the agency power of
an officer, no officer, agent or employee shall have any power or authority to
bind the corporation by any contract or engagement or to pledge its credit or to
render it liable for any purpose or to any amount.
Section 4. CERTIFICATES FOR SHARES. A certificate or certificates
for shares of the capital stock of the corporation shall be issued to each
shareholder when any such shares are fully paid, and the Board of Directors may
authorize the issuance of certificates or shares as partly paid provided that
such certificates shall state the amount of the consideration to be paid
therefor and the amount paid thereon. All certificates shall be signed in the
name of the corporation by the Chairman of the Board or Vice Chairman of the
Board or the President or Vice President and by the Chief Financial Officer or
an Assistant Treasurer or the Secretary or any Assistant Secretary, certifying
the number of shares and the class or series of shares owned by the shareholder.
Any or all of the signatures on the certificate may be facsimile. In case any
officer, transfer agent or registrar who has signed or whose facsimile signature
has been placed upon a certificate shall have ceased to be such officer,
transfer agent or registrar before such certificate is issued, it may be issued
by the corporation with the same effect as if such person were an officer,
transfer agent or registrar at the date of issue.
Section 5. LOST CERTIFICATES. Except as hereinafter in this Section
5 provided, no new certificates for shares shall be issued in lieu of an old
certificate unless the latter is surrendered to the corporation and cancelled at
the same time. The Board of Directors may in case any share certificate or
certificate for any other security is lost, stolen or destroyed, authorize the
issuance of a new certificate in lieu thereof, upon such terms and conditions as
the board may require, including provision for indemnification of the
corporation secured by a bond or other adequate security sufficient to protect
the corporation against any claim that may be made against it, including any
expense or liability, on account of the alleged loss, theft or destruction of
such certificate or the issuance of such new certificate.
Section 6. REPRESENTATION OF SHARES OF OTHER CORPORATIONS. The
Chairman of the Board, the President, or any Vice President, or any other person
authorized
17
<PAGE>
by resolution of the Board of Directors by any of the foregoing designated
officers, is authorized to vote on behalf of the corporation any and all shares
of any other corporation or corporations, foreign or domestic, standing in the
name of the corporation. The authority herein granted to said officers to vote
or represent on behalf of the corporation any and all shares held by the
corporation in any other corporation or corporations may be exercised by any
such officer in person or by any person authorized to do so by proxy duly
executed by said officer.
ARTICLE IX
AMENDMENTS
Section 1. AMENDMENT BY SHAREHOLDERS. New bylaws may be adopted or
these bylaws may be amended or repealed by the vote or written consent of
holders of two-thirds of the outstanding shares entitled to vote.
Section 2. AMENDMENT BY DIRECTORS. Subject to the rights of the
shareholders as provided in Section 1 of this Article IX, to adopt, amend or
repeal bylaws, bylaws may be adopted, amended or repealed by the Board of
Directors; provided, however, that the Board of Directors may adopt a bylaw or
amendment thereof changing the authorized number of directors only for the
purpose of fixing the exact number of directors within the limits specified in
the Articles of Incorporation or Section 2 of Article III of these bylaws.
ARTICLE X
GENERAL
Section 1. GOVERNING LAW. This corporation is organized under the
provisions of the California General Corporation Law (Corporations Code Sections
100-2319) as in effect on the date of filing of its original articles of
incorporation, namely January 20, 1961. Upon such filing the California
Secretary of State assigned the following corporation number to this
corporation: 408367. The corporate affairs of this corporation shall be
governed by and conducted in accordance with the provisions of the California
General Corporation Law, as the same presently exist and are from time to time
hereafter amended or superseded, except in those instances where the articles of
incorporation or bylaws of this corporation, now or through amendment hereafter,
may adopt alternative rules which are permissible under the California General
Corporation Law. Any provision (or portion thereof) in these bylaws which is
not permissible under the California General Corporation Law or is inconsistent
with the articles of incorporation of this corporation (as they may from time to
time be amended and supplemented) is void, but the balance of these bylaws shall
nevertheless be valid and effective.
Section 2. CONSTRUCTION AND DEFINITIONS. Unless the context requires
otherwise, the general provisions, rules of construction, and definitions in the
California General Corporation Law shall govern the construction of these
bylaws. Without limiting the generality of the foregoing, the singular number
includes the plural, the plural number includes the singular, and the term
"person" includes both a corporation and a natural person.
18
<PAGE>
CERTIFICATE OF SECRETARY
I, the undersigned, do hereby certify:
(1) That I am duly elected and acting Secretary of Mercury General
Corporation, a California corporation; and
(2) That the foregoing bylaws constitute the bylaws of said
corporation as duly adopted and restated by the board of directors of said
corporation as of November 3, 1995.
IN WITNESS WHEREOF, I have hereunto subscribed my name this day of
----
February, 1996.
---------------------------------
Judy Walters, Secretary
19
<PAGE>
Exhibit 10.12
ENDORSEMENT NO. 2
Attached to and made a part of the
PROPERTY PER RISK EXCESS OF LOSS
REINSURANCE AGREEMENT NO. 5320-01A/01B
between
NATIONAL REINSURANCE CORPORATION
Stamford, Connecticut
(hereinafter referred to as the "REINSURER")
and
MERCURY CASUALTY COMPANY
Los Angeles, California
(hereinafter referred to as the "COMPANY")
<PAGE>
IT IS MUTUALLY AGREED that effective from the inception of this Agreement (i.e.,
12: 01 a.m., April 1, 1995), all references in the Agreement and in Endorsement
No. 1 to "MERCURY CASUALTY INSURANCE COMPANY" are corrected to read "MERCURY
CASUALTY COMPANY."
All other terms and conditions remain unchanged.
IN WITNESS WHEREOF, the parties hereto have caused this Endorsement No. 2 to be
executed in Los Angeles, California, in duplicate this day of
, 1995.
MERCURY CASUALTY COMPANY
________________________
ATTEST:______________________
And in Stamford, Connecticut, this day of , 1995.
NATIONAL REINSURANCE CORPORATION
________________________________
Second Vice President
ATTEST:______________________
<PAGE>
Exhibit 10.13
ENDORSEMENT NO. 3
Attached to and made a part of the
PROPERTY PER RISK EXCESS OF LOSS
REINSURANCE AGREEMENT NO. 5320-01A/01B
between
NATIONAL REINSURANCE CORPORATION
Stamford, Connecticut
(hereinafter referred to as the "REINSURER")
and
MERCURY CASUALTY COMPANY
Los Angeles, California
(hereinafter referred to as the "COMPANY")
<PAGE>
2
IT IS MUTUALLY AGREED that effective at 12:01 a.m., April 1, 1995, Exclusion
10.b., appearing, in ADDENDUM A - EXCLUSIONS, is deleted and replaced by the
following:
b. The peril of earthquake, when written as such;
All other terms and conditions remain unchanged.
IN WITNESS WHEREOF, the parties hereto have caused this Endorsement No. 3
to be executed in Los Angeles, California, in duplicate this day
of , 1995.
MERCURY CASUALTY COMPANY
________________________
ATTEST:
_______________________________________
And in Stamford, Connecticut, this day of , 1995.
NATIONAL REINSURANCE CORPORATION
________________________________
Second Vice President
ATTEST:
_______________________________________
<PAGE>
Exhibit 10.14
MANAGEMENT AGREEMENT
--------------------
This Agreement is entered into by and between Mercury Insurance
Company of Illinois, hereinafter referred to as Insurer, and Mercury General
Corporation, hereinafter referred to as Manager.
In consideration of the promises, conditions and covenants herein
contained, the parties agree as follows:
SECTION I
FILING WITH THE ILLINOIS DEPARTMENT OF INSURANCE
------------------------------------------------
This Agreement shall be submitted to the Illinois Department of
Insurance prior to the effective date hereof pursuant to the requirements of the
Illinois Insurance Code.
SECTION II
EFFECTIVE DATE
--------------
This Agreement shall become effective January 1, 1995 and will
continue through December 31, 1999.
SECTION III
CONDITIONS OF EFFECTIVENESS
---------------------------
The Agreement or any amendment thereto shall become effective only if
the following shall have first occurred:
A. The Illinois Department of Insurance, if required, shall have approved
of and/or acknowledged in writing this Agreement or any amendment thereto;
and
B. The boards of directors of the Manager and the Insurer shall have
approved this Agreement by a majority vote.
SECTION IV
SERVICES AND FACILITIES
-----------------------
A. Commencing on the Effective Date and until the termination of this
Agreement, Manager shall provide the services and facilities as are
described hereunder to the Insurer. Such services and facilities as are
provided hereunder shall be subject to the control and approval of the
board of directors of the Insurer, and shall be performed in the manner and
for the consideration set forth herein by Manager, and such services shall
be performed in accordance with applicable laws and regulations in all of
the jurisdictions in which the Insurer conducts business. It is recognized
that the Insurer may be governed by laws and regulations which are
particularly applicable to its business and this Manager, by virtue of this
Agreement, recognizes its responsibility to perform in accordance with any
such laws or regulations including, but not limited to, compliance with any
order or orders issued by any governmental agency affecting the Insurer;
and Manager hereby acknowledges that in such case it will immediately
conform to same in the performance of its services as hereinafter set
forth. The board of directors of the Insurer shall retain responsibility
for the performance of services provided pursuant to this Agreement by
Manager and, in connection therewith, shall require Manager to perform in
accordance with the standards of performance set forth herein.
B. The Manager promises to manage the Insurer, and to conduct on its
behalf any and all duties of
1
<PAGE>
management as shall be necessary for the complete operation of the Insurer.
C. The Insurer hereby delegates to the Manager all of the duties of
management which it is allowed to so delegate by the laws of the State of
Illinois, including but not limited to the following duties: to issue and
underwrite insurance policies, which the Insurer may be so authorized to do
by law, in accordance with the rules and regulations as delineated in the
underwriting manuals of the Insurer, settle and adjust any and all losses
and claims, defend lawsuits, establish premium rates, establish and choose
sales agents and brokers, determine agents' and brokers' commissions,
prepare the records necessary for the conduct of the insurance business,
furnish all forms, supplies and agents' manuals necessary for the conduct
of the insurance business.
D. The Manager promises to perform all of the operating functions on
behalf of Insurer, including but not be limited to the following:
1. To acquire, license and appoint sales agents and brokers for the
production of the insurance business of and for the Insurer, provided
that the Insurer shall retain the right to refuse the appointment of
any agent or broker and the right to terminate any agent or broker.
2. To issue and underwrite policies on behalf of the Insurer and to
choose and obtain the necessary applications and policy forms.
3. To furnish for the Insurer all of the operating forms, printing
supplies, agents' manuals and any other related items which may become
necessary for the operation of the insurance business.
4. To provide all personnel reasonably required by the Insurer and to
fill all such positions in the Insurer with the advice and consent of
the board of directors of the Insurer, all of which personnel shall be
compensated exclusively by the Manager.
5. To provide all facilities necessary for the conduct of the
Insurer's business, including but not limited to real estate, office
space and personal property, including furniture, fixtures and
equipment. The office space, furniture, fixtures and equipment
utilized by the Insurer in the conduct of its business may be owned or
leased by the Manager or the Insurer.
6. To pay on behalf of the Insurer all of its operating expenses,
including but not limited to rent, supplies, salaries of all
personnel, telephone, advertising costs, costs of settling and
adjusting all insurance claims, legal defense costs, court costs,
costs of loss analysis, accounting costs (other than auditing), and
premium collection costs; provided, however, that the Insurer shall
pay, and be responsible for, the costs of management fees, premium
taxes, losses, reserves for unpaid losses, reserves for unpaid loss
adjustment expense, audit fees, assigned risk or similar assessments,
bureau fees, Fair Plan or similar assessments, directors' fees,
agents' commissions, reinsurance premiums, outside investment counsel
fees, assessments by the Illinois Insurance Guaranty Fund or similar
state guaranty funds, membership fees in trade associations, any
assessments by such associations, political contributions (to the
extent not prohibited by applicable law), premiums paid for insurance
policies in which the Insurer is the beneficiary and owner, such as
fidelity bonds, taxes of all types and costs which may be levied on
insurance companies by the governmental authorities having
jurisdiction over the same, and agents' bonuses (contingency
commissions).
E. Without limiting the generality of the foregoing provisions regarding
the duties of the Manager, the Manager hereby expressly agrees to take all
steps necessary to preserve the Insurer's exemption from the privilege tax
imposed by Section 409 of the Illinois Insurance Code, including but not
limited to:
1. Maintaining the Insurer's principal place of business within the
State of Illinois;
2
<PAGE>
2. Maintaining within the State of Illinois officers and personnel
knowledgeable of and responsible for the Insurer's operation, books,
records, administration, and annual statement;
3. Conducting within the State of Illinois substantially all
underwriting, policy issuing, and servicing operations relating to the
Insurer's Illinois policyholders; and
4. Complying with the provisions of Section 133(2) of the Illinois
Insurance Code.
F. This Agreement is not intended to supersede or replace the policy
making decisions of or the supervisory responsibilities of the board of
directors of the Insurer. Nor is it intended that substantial control of
the Insurer or of any of the powers vested in the board of directors
thereof are to be transferred to the Manager as a result of this Agreement.
Said board of directors, a committee thereof or agents appointed by said
board of directors, shall have the right, at all times, to cause the books
and records of the Manager to be inspected and/or audited as they relate to
the business of the Insurer.
SECTION V
INVESTMENT ADVISORY SERVICES
----------------------------
The Manager agrees to act as investment advisor to the Insurer with respect
to the investment of the Insurer's assets, and, in general, to supervise the
investment and reinvestment of cash, securities or other property comprising the
assets of the Insurer, subject at all times to the direction and control of the
board of directors (or responsible committee thereof) of the Insurer, all as
more fully set forth herein.
In connection with the Manager's performance of investment advisory
services for the Insurer, the following provisions shall apply:
A. The Insurer shall at all times maintain a custodian (referred to
hereinafter as the "Custodian") for its securities and appropriate bank or
custodial accounts for the purpose of handling cash involved in the
Insurer's investment transactions.
B. The Manager shall obtain and evaluate pertinent information about
significant economic developments and gather statistical and financial data
affecting the investments of the Insurer and such investments which the
Manager considers may be suitable for inclusion in the Insurer's investment
portfolio.
C. At mutually agreeable intervals, the Manager shall furnish reports to
the Investment Committee of the Insurer setting forth (i) a list of the
Insurer's securities, showing the cost, market value, maturity date and
other pertinent information regarding each such security, (ii) a summary of
the investment transactions effected on behalf of the Insurer since the
closing date of the preceding report, and (iii) the Manager's
recommendations as to what securities should be acquired or sold in light
of prevailing economic and securities market conditions.
D. After reviewing the Manager's periodic investment reports, the
Investment Committee of the Insurer will advise the Manager which of the
Manager's investment recommendations it has accepted or rejected. If the
Manager is notified in writing of the Insurer's acceptance of the Manager's
recommendations, such notification shall constitute authorization to the
Manager to effect the recommended investment transactions.
E. All investment transactions authorized by the Insurer's Investment
Committee shall be carried out by the Manager through the Custodian,
but the Manager may designate a broker or brokers to carry out said
transactions. All instructions or directions of the Manager to the
Custodian shall, unless otherwise agreed to by the Manager and the
Custodian, be made in writing, or orally and confirmed in writing as
soon as
3
<PAGE>
practicable thereafter, and the Manager shall instruct all brokers,
dealers or other persons executing investment orders to forward to the
Custodian copies of all brokerage or dealer confirmations promptly after
execution of all transactions.
F. The Manager is authorized to enter into an agreement with the Custodian
to use the Depository Trust Company's Institutional Delivery System for
trade confirmation and settlements.
G. The Insurer shall notify its Custodian of the appointment of the
Manager as investment advisor by delivering a copy of this Agreement to its
Custodian.
H. It is understood and agreed that the Manager's services in recommending
investments shall be advisory only, and shall not in any way be deemed a
delegation by the Insurer or its board of directors of their fiduciary
powers, discretion or judgment in the selection, retention or disposition
of any investments.
I. The investment advisory services provided by the Manager under this
Section, and all actions taken hereunder by it, shall at all times conform
to the requirements imposed by the insurance laws and regulations of the
State of Illinois.
SECTION VI
COMPENSATION
------------
In consideration of the services to be provided by the Manager under this
Agreement, the Insurer agrees to pay the Manager compensation in the amount and
manner set forth below:
A. Manager shall be reimbursed monthly for all expenses incurred on behalf
of the Insurer in providing personnel, facilities and services contemplated
by this Agreement.
B. In addition to the reimbursement of its expenses as provided in
Paragraph A above, the Manager shall also receive for its services
hereunder a management fee from the Insurer in an amount equal to one
percent (1%) of the gross premiums written by the Insurer. Such fee shall
be payable quarterly within 45 days of the end after each calendar quarter.
SECTION VII
OWNERSHIP OF RECORDS
--------------------
The ownership and legal title to the insurance policies, insurance policy
records, data processing tapes, disks, programs and documentation, and
account records of the Insurer, compiled on behalf of the Insurer by the
Manager, shall remain in and with the Insurer. However, the Manager shall
have joint custody with the Insurer of said records.
SECTION VIII
TERM OF AGREEMENT
-----------------
A. This Agreement shall be continuous from the Effective Date hereof to
and including December 31, 1999; provided, however, that this Agreement may
be terminated earlier by either party upon 120 days prior written notice.
4
<PAGE>
B. The Insurer may terminate its participation under this Agreement
immediately in the event that:
(1) The Manager shall have defaulted in the performance of any
obligation under this Agreement and shall have failed to remedy
such default within 30 days of receipt of written notice thereof
from the Insurer asserting such default as grounds for
termination of this Agreement; or
C. The Manager may terminate its obligations to the Insurer under this
Agreement immediately in the event that:
(1) The Insurer shall have defaulted in the performance of any
obligation under this Agreement and shall have failed to remedy
such default within 30 days of receipt of written notice thereof
from the Manager asserting such default as grounds for
termination of this Agreement; or
(2) The Insurer is dissolved or determined insolvent.
IN WITNESS WHEREOF, we have set our hands and seals this 3rd day of
January, 1995.
MERCURY INSURANCE COMPANY MERCURY GENERAL CORPORATION
OF ILLINOIS
________________________________ __________________________________
By: George Joseph, President By: George Joseph, President
________________________________ __________________________________
By: Judy Walters, Secretary By: Judy Walters, Secretary
5
<PAGE>
Exhibit 10.15
MANAGEMENT AGREEMENT
--------------------
This Agreement is entered into by and between Mercury Indemnity
Company of Illinois, hereinafter referred to as Insurer, and Mercury General
Corporation, hereinafter referred to as Manager.
In consideration of the promises, conditions and covenants herein
contained, the parties agree as follows:
SECTION I
EFFECTIVE DATE
--------------
This Agreement shall become effective on January 1, 1995 subject to
the conditions set forth in Section II.
SECTION II
CONDITIONS OF EFFECTIVENESS
---------------------------
The Agreement or any amendment thereto shall become effective only if:
A. The Illinois Department of Insurance, if required, shall have
approved of and/or acknowledged in writing this Agreement or any
amendment thereto; and
B. The boards of directors of the Manager and the Insurer shall have
approved this Agreement by a majority vote.
SECTION III
SERVICES AND FACILITIES
-----------------------
A. Commencing on the Effective Date and until the termination of this
Agreement, Manager shall provide the services and facilities as are
described hereunder to the Insurer. Such services and facilities as
are provided hereunder shall be subject to the control and approval of
the board of directors of the Insurer, and shall be performed in the
manner and for the consideration set forth herein by manager, and such
services shall be performed in accordance with applicable laws and
regulations in all of the jurisdictions in which the Insurer conducts
business. It is recognized that the Insurer may be governed by laws
and regulations which are particularly applicable to its business and
thus Manager, by virtue of this Agreement, recognizes its
responsibility to perform in accordance with any such laws or
regulations including, but not limited to, compliance with any order
or orders issued by any governmental agency affecting the Insurer; and
Manager hereby acknowledges that in such case it will immediately
conform to same in the performance of its services as hereinafter set
forth. The board of directors of the Insurer shall retain
responsibility for the performance of services provided pursuant to
this Agreement by Manager and, in connection therewith, shall require
Manager to perform in accordance with the standards of performance set
forth herein.
B. The Manager promises to manage the Insurer, and to conduct on its
behalf any and all duties of management as shall be necessary for the
complete operation of the Insurer.
C. The Insurer hereby delegates to the Manager all of the duties of
management which it is allowed to so delegate by the laws of the State
of Illinois, including but not limited to the following duties: to
issue
1
<PAGE>
and underwrite insurance policies, which the Insurer may be so
authorized to do by law, in accordance with the rules and regulations
as delineated in the underwriting manuals of the Insurer, settle and
adjust any and all losses and claims, defend lawsuits, establish
premium rates, establish and choose sales agents and brokers,
determine agents' and brokers' commissions, prepare the records
necessary for the conduct of the insurance business, furnish all
forms, supplies and agents' manuals necessary for the conduct of the
insurance business.
D. The Manager promises to perform all of the operating functions on
behalf of Insurer, including but not be limited to the following:
1. To acquire, license and appoint sales agents and brokers for the
production of the insurance business of and for the Insurer,
provided that the Insurer shall retain the right to refuse the
appointment of any agent or broker and the right to terminate any
agent or broker.
2. To issue and underwrite policies on behalf of the Insurer and to
choose and obtain the necessary applications and policy forms.
3. To furnish for the Insurer all of the operating forms, printing
supplies, agents' manuals and any other related items which may
become necessary for the operation of the insurance business.
4. To provide all personnel reasonably required by the Insurer and
to fill all such positions in the Insurer with the advice and
consent of the board of directors of the Insurer, all of which
personnel shall be compensated exclusively by the Manager.
5. To provide all facilities necessary for the conduct of the
Insurer's business, including but not limited to real estate,
office space and personal property, including furniture, fixtures
and equipment. The office space, furniture, fixtures and equipment
utilized by the Insurer in the conduct of its business may be owned
or leased by the Manager or the Insurer.
6. To pay on behalf of the Insurer all of its operating expenses,
including but not limited to rent, supplies, salaries of all
personnel, telephone, advertising costs, costs of settling and
adjusting all insurance claims, legal defense costs, court costs,
costs of loss analysis, accounting costs (other than auditing), and
premium collection costs; provided, however, that the Insurer shall
pay, and be responsible for, the costs of management fees, premium
taxes, losses, reserves for unpaid losses, reserves for unpaid loss
adjustment expense, audit fees, assigned risk or similar
assessments, bureau fees, Fair Plan or similar assessments,
directors' fees, agents' commissions, reinsurance premiums, outside
investment counsel fees, assessments by the Illinois Insurance
Guaranty Fund or similar state guaranty funds, membership fees in
trade associations, any assessments by such associations, political
contributions (to the extent not prohibited by applicable law),
premiums paid for insurance policies in which the Insurer is the
beneficiary and owner, such as fidelity bonds, taxes of all types
and costs which may be levied on insurance companies by the
governmental authorities having jurisdiction over the same, and
agents' bonuses (contingency commissions).
E. This Agreement is not intended to supersede or replace the policy
making decisions of or the supervisory responsibilities of the board of
directors of the Insurer. Nor is it intended that substantial control of
the Insurer or of any of the powers vested in the board of directors
thereof are to be transferred to the Manager as a result of this Agreement.
Said board of directors, a committee thereof or agents appointed by said
board of directors, shall have the right, at all times, to cause the books
and records of the Manager to be inspected and/or audited as they relate to
the business of the Insurer.
2
<PAGE>
SECTION IV
INVESTMENT ADVISORY SERVICES
----------------------------
The Manager agrees to act as investment advisor to the Insurer with respect
to the investment of the Insurer's assets, and, in general, to supervise the
investment and reinvestment of cash, securities or other property comprising the
assets of the Insurer, subject at all times to the direction and control of the
board of directors (or responsible committee thereof) of the Insurer, all as
more fully set forth herein.
In connection with the Manager's performance of investment advisory
services for the Insurer, the following provisions shall apply:
A. The Insurer shall at all times maintain a custodian (referred to
hereinafter as the "Custodian") for its securities and appropriate bank or
custodial accounts for the purpose of handling cash involved in the
insurer's investment transactions.
B. The Manager shall obtain and evaluate pertinent information about
significant economic developments and gather statistical and financial data
affecting the investments of the Insurer and such investments which the
Manager considers may be suitable for inclusion in the Insurer's investment
portfolio.
C. At mutually agreeable intervals, the Manager shall furnish reports to
the Investment Committee of the Insurer setting forth (i) a list of the
Insurer's securities, showing the cost, market value, maturity date and
other pertinent information regarding each such security, (ii) a summary of
the investment transactions effected on behalf of the Insurer since the
closing date of the preceding report, and (iii) the Manager's
recommendations as to what securities should be acquired or sold in light
of prevailing economic and securities market conditions.
D. After reviewing the Manager's periodic investment reports, the
Investment Committee of the Insurer will advise the Manager which of the
Manager's investment recommendations it has accepted or rejected. If the
Manager is notified in writing of the Insurer's acceptance of the Manager's
recommendations, such notification shall constitute authorization to the
Manager to effect the recommended investment transactions.
E. All investment transactions authorized by the Insurer's Investment
Committee shall be carried out by the Manager through the Custodian, but
the Manager may designate a broker or brokers to carry out said
transactions. All instructions or directions of the Manager to the
Custodian shall, unless otherwise agreed to by the Manager and the
Custodian, be made in writing, or orally and confirmed in writing as soon
as practicable thereafter, and the Manager shall instruct all brokers,
dealers or other persons executing investment orders to forward to the
Custodian copies of all brokerage or dealer confirmations promptly after
execution of all transactions.
F. The Manager is authorized to enter into an agreement with the Custodian
to use the Depository Trust Company's Institutional Delivery System for
trade confirmation and settlements.
G. The Insurer shall notify its Custodian of the appointment of the
Manager as investment advisor by delivering a copy of this Agreement to its
Custodian.
H. It is understood and agreed that the Manager's services in recommending
investments shall be advisory only, and shall not in any way be deemed a
delegation by the Insurer or its board of directors of their fiduciary
powers, discretion or judgment in the selection, retention or disposition
of any investments.
3
<PAGE>
I. The investment advisory services provided by the Manager under this
Section, and all actions taken hereunder by it, shall at all times conform
to the requirements imposed by the insurance laws and regulations of the
State of Illinois.
SECTION V
COMPENSATION
------------
In consideration of the services to be provided by the Manager under this
Agreement, the Insurer agrees to pay the Manager compensation in the amount and
manner set forth below:
A. Manager shall be reimbursed monthly for all expenses incurred on behalf
of the Insurer in providing personnel, facilities and services contemplated
by this Agreement.
B. In addition to the reimbursement of its expenses as provided in
Paragraph A above, the Manager shall also receive for its services
hereunder a management fee from the Insurer in an amount equal to one
percent (1%) of the gross premiums written by the Insurer. Such fee shall
be payable quarterly within 45 days of the end after each calendar quarter.
SECTION VI
OWNERSHIP OF RECORDS
--------------------
The ownership and legal title to the insurance policies, insurance policy
records, data processing tapes, disks, programs and documentation, and account
records of the Insurer, compiled on behalf of the Insurer by the Manager, shall
remain in and with the Insurer. However, the Manager shall have joint custody
with the Insurer of said records.
SECTION VII
TERM OF AGREEMENT
-----------------
A. This Agreement shall be continuous from the Effective Date hereof to
and including December 31, 1999; provided, however, that this Agreement may
be terminated earlier by either party upon 120 days prior written notice.
B. The Insurer may terminate its participation under this Agreement
immediately in the event that:
(1) The Manager shall have defaulted in the performance of any
obligation under this Agreement and shall have failed to remedy
such default within 30 days of receipt of written notice thereof
from the Insurer asserting such default as grounds for
termination of this Agreement; or
(2) The Manager is dissolved or determined insolvent.
C. The Manager may terminate its obligations to the Insurer under this
Agreement immediately in the event that:
(1) The Insurer shall have defaulted in the performance of any
obligation under this Agreement and shall have failed to remedy
such default within 30 days of receipt of written notice thereof
from the Manager asserting such default as grounds for
termination of this Agreement; or
4
<PAGE>
(2) The Insurer is dissolved or determined insolvent.
IN WITNESS WHEREOF, we have set our hands and seals this third day of
January, 1995.
MERCURY INDEMNITY COMPANY MERCURY GENERAL CORPORATION
OF ILLINOIS
- - --------------------------------- ----------------------------------
By: George Joseph, President By: George Joseph, President
- - --------------------------------- ----------------------------------
By: Judy Walters, Secretary By: Judy Walters, Secretary
5
<PAGE>
Exhibit 10.16
MANAGEMENT AGREEMENT
This Agreement is effective as of the 1st day of January 1996, by
Mercury Insurance Company of Georgia (formerly known as Georgia Automobile
Insurance Company) (hereinafter referred to as Insurer) and Mercury General
Corporation, hereinafter referred to as Manager.
In consideration of the promises, conditions and covenants herein
contained, the parties agreed as follows:
1. The Manager promises to manage the Insurer, and to conduct on its'
behalf any and all duties of management as shall be necessary for the complete
operation of the Insurer.
2. That Insurer promises and hereby delegates to the Manager all of
the duties of management which they are allowed to so delegate by the laws of
the State of Georgia, including but not limited to the following duties: to
issue and underwrite insurance policies, which the Insurer may be so authorized
to do by law, in accordance with the rules and regulations as delineated in the
underwriting manuals of the Insurer, settle and adjust any and all losses and
claims, defend lawsuits, establish premium rates, establish and choose sales
agents and brokers, determine agents' and brokers' commissions, prepare the
records necessary for the conduct of the insurance business, furnish all forms,
supplies and agents' manuals necessary for the conduct of the insurance
business.
3. That Manager promises to perform all of the operating functions on
behalf of the Insurer including but not be limited to the following:
A. To acquire, license and appoint sales agents and brokers for
the production of the insurance business of and for the Insurer,
provided that the Insurer shall retain the right to refuse the
appointment of any agent or broker and the right to terminate any
agent or broker.
B. To issue and underwrite policies on behalf of the Insurer and
to choose and obtain the necessary application and policy forms.
C. To furnish for Insurer all of the operating forms, printing
supplies, agents' manuals and any other related items which may
become necessary for the operation of the insurance business.
D. To pay on behalf of the Insurer all of their operating
expenses, including but not limited to rent, supplies, salaries of
all personnel, telephone, advertising costs, costs of settling and
adjusting all insurance claims, legal defense costs, court costs,
costs of loss analysis, accounting costs (other than auditing),
premium collection costs; provided, however, Insurer shall pay,
and be responsible for, the costs of management fees, premium
taxes, losses, reserves for unpaid losses, reserves for unpaid
loss adjustment expense, audit fees, assigned risk or similar
assessments, bureau fees, Fair Plan or similar assessments,
directors' fees, agents' commissions, reinsurance premiums,
investment counsel fees, assessments by the applicable Insurance
Guarantee Association, membership fees in insurance trade
association of insurance companies, premiums paid for insurance
policies in which the Insurer is the beneficiary and owner, such
as fidelity bonds, taxes of all types and costs which may be
levied on insurance companies by the governmental authorities
having jurisdiction over the same and agents' bonuses (contingency
commissions).
4. Manager shall be reimbursed monthly for all expenses incurred on
behalf of the Insurers.
5. Manager shall receive as the sole compensation for its services
hereunder a management fee from the Insurer in an amount equal to one percent
(1%) of the gross premiums written by the Insurer. Such fee shall be payable
quarterly within 45 days of the end of each calendar quarter.
1
<PAGE>
6. The ownership and legal title to the insurance policies,
insurance policy records, data processing tapes, disks, programs and
documentation, and account records of the Insurer, compiled on behalf of the
Insurer by manager, shall remain in and with Insurer, however, Manager shall
have joint custody with Insurer of said records.
7. The manager shall, within 90 days after expiration of each
calendar year, furnish the insurer's board of directors a written statement of
amounts received under or on account of the contract and amounts expended under
or on account of the contract during the calendar year, including the emoluments
received therefrom by the respective directors, officers, and other principal
management personnel of the manager or producer, with such classification of
items and further detail as the insurer's board of directors may reasonably
require.
8. The term of this agreement shall commence January 1, 1996 and
shall terminate December 31, 1999.
IN WITNESS WHEREOF, we have set our hands and seals this 1st day of
January, 1996.
MERCURY INSURANCE COMPANY MERCURY GENERAL CORPORATION
OF GEORGIA
______________________________ _____________________________________
By: Cooper Blanton, President By: Michael Curtius, President
______________________________ _____________________________________
By: Judy Walters, Secretary By: Judy Walters, Secretary
2
<PAGE>
Exhibit 10.17
MANAGEMENT AGREEMENT
This Agreement is effective as of the 1st day of January 1996, by
Mercury Indemnity Company of Georgia (hereinafter referred to as Insurer) and
Mercury General Corporation, hereinafter referred to as Manager.
In consideration of the promises, conditions and covenants herein
contained, the parties agreed as follows:
1. The Manager promises to manage the Insurer, and to conduct on its'
behalf any and all duties of management as shall be necessary for the complete
operation of the Insurer.
2. That Insurer promises and hereby delegates to the Manager all of
the duties of management which they are allowed to so delegate by the laws of
the State of Georgia, including but not limited to the following duties: to
issue and underwrite insurance policies, which the Insurer may be so authorized
to do by law, in accordance with the rules and regulations as delineated in the
underwriting manuals of the Insurer, settle and adjust any and all losses and
claims, defend lawsuits, establish premium rates, establish and choose sales
agents and brokers, determine agents' and brokers' commissions, prepare the
records necessary for the conduct of the insurance business, furnish all forms,
supplies and agents' manuals necessary for the conduct of the insurance
business.
3. That Manager promises to perform all of the operating functions on
behalf of the Insurer including but not be limited to the following:
A. To acquire, license and appoint sales agents and brokers for
the production of the insurance business of and for the Insurer,
provided that the Insurer shall retain the right to refuse the
appointment of any agent or broker and the right to terminate any
agent or broker.
B. To issue and underwrite policies on behalf of the Insurer and
to choose and obtain the necessary application and policy forms.
C. To furnish for Insurer all of the operating forms, printing
supplies, agents' manuals and any other related items which may become
necessary for the operation of the insurance business.
D. To pay on behalf of the Insurer all of their operating
expenses, including but not limited to rent, supplies, salaries of all
personnel, telephone, advertising costs, costs of settling and
adjusting all insurance claims, legal defense costs, court costs,
costs of loss analysis, accounting costs (other than auditing),
premium collection costs; provided, however, Insurer shall pay, and be
responsible for, the costs of management fees, premium taxes, losses,
reserves for unpaid losses, reserves for unpaid loss adjustment
expense, audit fees, assigned risk or similar assessments, bureau
fees, Fair Plan or similar assessments, directors' fees, agents'
commissions, reinsurance premiums, investment counsel fees,
assessments by the applicable Insurance Guarantee Association,
membership fees in insurance trade association of insurance companies,
premiums paid for insurance policies in which the Insurer is the
beneficiary and owner, such as fidelity bonds, taxes of all types and
costs which may be levied on insurance companies by the governmental
authorities having jurisdiction over the same and agents' bonuses
(contingency commissions).
1
<PAGE>
4. Manager shall be reimbursed monthly for all expenses incurred on
behalf of the Insurers.
5. Manager shall receive as the sole compensation for its services
hereunder a management fee from the Insurer in an amount equal to one percent
(1%) of the gross premiums written by the Insurer. Such fee shall be payable
quarterly within 45 days of the end of each calendar quarter.
6. The ownership and legal title to the insurance policies, insurance
policy records, data processing tapes, disks, programs and documentation, and
account records of the Insurer, compiled on behalf of the Insurer by manager,
shall remain in and with Insurer, however, Manager shall have joint custody with
Insurer of said records.
7. The manager shall, within 90 days after expiration of each
calendar year, furnish the insurer's board of directors a written statement of
amounts received under or on account of the contract and amounts expended under
or on account of the contract during the calendar year, including the emoluments
received therefrom by the respective directors, officers, and other principal
management personnel of the manager or producer, with such classification of
items and further detail as the insurer's board of directors may reasonably
require.
8. The term of this agreement shall commence January 1, 1996 and
shall terminate December 31, 1999.
IN WITNESS WHEREOF, we have set our hands and seals this 1st day of
January 1996.
MERCURY INDEMNITY COMPANY MERCURY GENERAL CORPORATION
OF GEORGIA
_____________________________ _______________________________________
By: Cooper Blanton, President By: Michael Curtius, President
_____________________________ _______________________________________
By: Judy Walters, Secretary By: Judy Walters, Secretary
2
<PAGE>
Exhibit 10.18
================================================================================
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
(hereinafter collectively referred to as the "Company")
Article I - Classes of Business Reinsured
By this Contract the Reinsurer agrees to reinsure the excess liability which may
accrue to the Company under its policies, contracts and binders of insurance or
reinsurance (hereinafter called "policies") in force at the effective date
hereof or issued or renewed on or after that date, and classified by the Company
as Homeowners (Section I), Fire, Allied Lines, Commercial Multiple Peril
(Section I), Automobile Physical Damage, Earthquake and Inland Marine, subject
to the terms, conditions and limitations set forth herein and in Schedule A
attached to and forming part of this Contract.
Article II - Term
A. This Contract shall become effective on April 1, 1995, with respect to losses
arising out of loss occurrences commencing on or after that date, and shall
remain in force until March 31, 1996, both days inclusive. However, if the
Reinsurer sustains no loss hereunder from loss occurrences commencing on or
prior to December 31, 1995, this Contract shall, upon notice from the Company
prior to December 31, 1995, expire on December 31, 1995.
B. If this Contract expires while a loss occurrence covered hereunder is in
progress, the Reinsurer's liability hereunder shall, subject to the other
terms and conditions of this Contract, be determined as if the entire loss
occurrence had occurred prior to the expiration of this Contract, provided
that no part of such loss occurrence is claimed against any renewal or
replacement of this Contract.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1
<PAGE>
================================================================================
Article III - Territory
This Contract shall apply to the territorial limits set forth in the Company's
policies reinsured hereunder.
Article IV - Exclusions
This Contract does not apply to and specifically excludes the following:
1. All lines of business not included in Article I.
2. All excess of loss reinsurance assumed by the Company.
3. Reinsurance assumed by the Company under obligatory reinsurance
agreements, except agency reinsurance where the policies involved are to
be reunderwritten in accordance with the underwriting standards of the
Company and reissued as Company policies at the next anniversary or
expiration date.
4. Financial guarantee and insolvency.
5. All Accident and Health, Fidelity and Surety, Boiler and Machinery, Ocean
Marine, Workers' Compensation and Credit business when written as such.
6. Flood and/or earthquake when written as such.
7. Mortgage Impairment insurances and similar kinds of insurances, however
styled.
8. Nuclear risks as defined in the "Nuclear Incident Exclusion Clause -
Physical Damage - Reinsurance" attached to and forming part of this
Contract.
9. Risks excluded under the provisions of the "Total Insured Value Exclusion
Clause" attached to and forming part of this Contract.
10. Loss or damage caused by or resulting from war, invasion, hostilities,
acts of foreign enemies, civil war, rebellion, insurrection, military or
usurped power, or martial law or confiscation by order of any government
or public authority, but this exclusion shall not apply to loss or damage
covered under a standard policy with a standard War Exclusion Clause.
11. All liability of the Company arising by contract, operation of law, or
otherwise, from its participation or membership, whether voluntary or
involuntary, in any insolvency fund. "Insolvency fund" includes any
guaranty fund, insolvency fund, plan, pool,
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2
<PAGE>
================================================================================
association, fund or other arrangement, however denominated, established
or governed, which provides for any assessment of or payment or
assumption by the Company of part or all of any claim, debt, charge, fee
or other obligation of an insurer, or its successors or assigns, which
has been declared by any competent authority to be insolvent, or which is
otherwise deemed unable to meet any claim, debt, charge, fee or other
obligation in whole or in part.
12. Liability as a member, subscriber or reinsurer of any Pool, Syndicate or
Association; and any combination of insurers or reinsurers formed for the
purpose of covering specific perils, specific classes of business or for
the purpose of insuring risks located in specific geographic areas; but
this exclusion shall not apply to FAIR Plans or to Coastal Pools, Beach
Plans or similar plans, however styled. It is understood and agreed,
however, that this reinsurance does not include any increase in liability
to the Company resulting from (a) the inability of any other participant
in a FAIR Plan, Coastal Pool, Beach Plan or similar plan to meet its
liability, or (b) any claim against such a FAIR Plan, Coastal Pool, Beach
Plan or similar plan, or any participant therein, including the Company,
whether by way of subrogation or otherwise, brought by or on behalf of
any insolvency fund.
Article V - Retention and Limit
A. As respects each excess layer of reinsurance coverage provided by this
Contract, the Company shall retain and be liable for the first amount of
ultimate net loss, shown as "Company's retention" for that excess layer in
Schedule A attached hereto, arising out of each loss occurrence. The
Reinsurer shall then be liable, as respects each excess layer, for the amount
by which such ultimate net loss exceeds the Company's applicable retention,
but the liability of the Reinsurer under each excess layer shall not exceed
the amount, shown as "Reinsurer's Per Occurrence Limit" for that excess layer
in Schedule A attached hereto, as respects any one loss occurrence.
B. The Company shall retain, in addition to its initial retention on each loss
occurrence, 5.0% of the excess ultimate net loss to which the excess layer
applies.
C. The Company shall be permitted to carry excess per risk reinsurance,
recoveries under which shall inure to the benefit of this Contract.
Article VI - Reinstatement
A. In the event all or any portion of the reinsurance coverage provided by this
Contract is exhausted by loss, the amount so exhausted shall be reinstated
immediately from the time the loss occurrence commences hereon. For each
amount so reinstated the Company agrees to pay additional premium equal to
the product of the following:
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 3
<PAGE>
================================================================================
1. The percentage of the occurrence limit for the excess layer reinstated
(based on the loss paid by the Reinsurer under that excess layer); times
2. The earned reinsurance premium for the excess layer reinstated for the
term of this Contract (exclusive of reinstatement premium).
B. Whenever the Company requests payment by the Reinsurer of any loss under any
excess layer hereunder, the Company shall submit a statement to the Reinsurer
of reinstatement premium due the Reinsurer for that excess layer. If the
earned reinsurance premium for any excess layer for the term of this Contract
has not been finally determined as of the date of any such statement, the
calculation of reinstatement premium due for that excess layer shall be based
on the annual deposit premium for that excess layer and shall be readjusted
when the earned reinsurance premium for that excess layer for the term of
this Contract has been finally determined. Any reinstatement premium shown
to be due the Reinsurer for any excess layer as reflected by any such
statement (less prior payments, if any, for that excess layer) shall be
payable by the Company concurrently with payment by the Reinsurer of the
requested loss for that excess layer. Any return reinstatement premium shown
to be due the Company shall be remitted by the Reinsurer within 60 days after
receipt and verification of the Company's statement.
C. Notwithstanding anything stated herein, the liability of the Reinsurer
provided by this Contract shall not exceed either of the following:
1. The amount, shown as "Reinsurer's Annual Limit" for that excess layer in
Schedule A attached hereto, as respects loss or losses arising out of any
one loss occurrence; or
2. The amount, shown as "Reinsurer's Annual Limit" for that excess layer in
Schedule A attached hereto, in all during the term of this Contract.
Article VII - Loss Occurrence (BRMA 27A)
A. The term "loss occurrence" shall mean the sum of all individual losses
directly occasioned by any one disaster, accident or loss or series of
disasters, accidents or losses arising out of one event which occurs within
the area of one state of the United States or province of Canada and states
or provinces contiguous thereto and to one another. However, the duration
and extent of any one "loss occurrence" shall be limited to all individual
losses sustained by the Company occurring during any period of 168
consecutive hours arising out of and directly occasioned by the same event,
except that the term "loss occurrence" shall be further defined as follows:
1. As regards windstorm, hail, tornado, hurricane, cyclone, including
ensuing collapse and water damage, all individual losses sustained by the
Company occurring during any period of 72 consecutive hours arising out
of and directly occasioned by the same
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 4
<PAGE>
================================================================================
event. However, the event need not be limited to one state or province or
states or provinces contiguous thereto.
2. As regards riot, riot attending a strike, civil commotion, vandalism and
malicious mischief, all individual losses sustained by the Company
occurring during any period of 72 consecutive hours within the area of
one municipality or county and the municipalities or counties contiguous
thereto arising out of and directly occasioned by the same event. The
maximum duration of 72 consecutive hours may be extended in respect of
individual losses which occur beyond such 72 consecutive hours during the
continued occupation of an assured's premises by strikers, provided such
occupation commenced during the aforesaid period.
3. As regards earthquake (the epicentre of which need not necessarily be
within the territorial confines referred to in paragraph A of this
Article) and fire following directly occasioned by the earthquake, only
those individual fire losses which commence during the period of 168
consecutive hours may be included in the Company's "loss occurrence."
4. As regards "freeze," only individual losses directly occasioned by
collapse, breakage of glass and water damage (caused by bursting frozen
pipes and tanks) may be included in the Company's "loss occurrence."
B. Except for those "loss occurrences" referred to in subparagraphs 1 and 2 of
paragraph A above, the Company may choose the date and time when any such
period of consecutive hours commences, provided that it is not earlier than
the date and time of the occurrence of the first recorded individual loss
sustained by the Company arising out of that disaster, accident or loss, and
provided that only one such period of 168 consecutive hours shall apply with
respect to one event.
C. However, as respects those "loss occurrences" referred to in subparagraphs 1
and 2 of paragraph A above, if the disaster, accident or loss occasioned by
the event is of greater duration than 72 consecutive hours, then the Company
may divide that disaster, accident or loss into two or more "loss
occurrences," provided that no two periods overlap and no individual loss is
included in more than one such period, and provided that no period commences
earlier than the date and time of the occurrence of the first recorded
individual loss sustained by the Company arising out of that disaster,
accident or loss.
D. No individual losses occasioned by an event that would be covered by 72 hours
clauses may be included in any "loss occurrence" claimed under the 168 hours
provision.
Article VIII - Definitions
A. "Ultimate net loss" as used herein is defined as the sum or sums (including
interest on judgments, extra contractual obligations, loss resulting from the
reformation or liberalization
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 5
<PAGE>
================================================================================
of policies, litigation expenses and all other loss adjustment expense,
except office expenses and salaries of the Company's regular employees) paid
or payable by the Company in settlement of claims and in satisfaction of
judgments rendered on account of such claims, after deduction of all salvage,
all recoveries and all claims on inuring insurance or reinsurance, whether
collectible or not. Nothing herein shall be construed to mean that losses
under this Contract are not recoverable until the Company's ultimate net loss
has been ascertained.
B. "Extra contractual obligations" as used herein shall mean 90.0% of any
punitive, exemplary, compensatory or consequential damages paid or payable by
the Company as a result of an action against it by its insured or its
insured's assignee, which action alleges negligence or bad faith on the part
of the Company in handling a claim under a policy subject to this Contract.
An extra contractual obligation shall be deemed to have occurred on the same
date as the loss covered or alleged to be covered under the policy.
Notwithstanding anything stated herein, this Contract shall not apply to any
extra contractual obligation incurred by the Company as a result of any
fraudulent and/or criminal act by any officer or director of the Company
acting individually or collectively or in collusion with any individual or
corporation or any other organization or party involved in the presentation,
defense or settlement of any claim covered hereunder.
C. As respects amounts paid by the Company subject to this Contract for debris
removal, including cleanup of pollutants, as respects business classified as
commercial property, "loss" shall mean an amount not to exceed 30.0% of the
direct physical loss or damage paid by the Company, for any one loss, any one
location, any one insured. "Loss" is further restricted to include only such
claims for debris removal, including cleanup of pollutants, reported to the
Company not more than 180 days immediately following the direct physical loss
or damage.
D. "Pollutant" as used herein shall mean any solid liquid, gaseous, or thermal
irritant or contaminant, including, but not limited to smoke, vapor, soot,
fumes, acids, alkalis, chemicals and waste. Waste includes materials to be
recycled, reconditioned or reclaimed.
Article IX - Loss Notices and Settlements
A. Whenever a loss sustained by the Company appears likely to result in a claim
hereunder, the Company shall notify the Reinsurer, and the Reinsurer shall
have the right to participate in the adjustment of the loss at its own
expense.
B. All loss settlements made by the Company, provided they are within the terms
of this Contract, and either under the strict conditions of the Company's
policies or by way of compromise, shall be unconditionally binding upon the
Reinsurer, and the Reinsurer agrees to pay all amounts for which it may be
liable upon receipt of reasonable evidence of the amount paid (or scheduled
to be paid) by the Company.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 6
<PAGE>
================================================================================
C. All salvage and recoveries received subsequent to a loss settlement under
this Contract shall be applied as if received prior to said loss settlement,
and all necessary adjustment shall be made between the Company and the
Reinsurer immediately following receipt by the Company of such salvage or
recoveries.
Article X - Salvage and Subrogation
The Reinsurer shall be credited with salvage (i.e., reimbursement obtained or
recovery made by the Company, less the actual cost, excluding salaries of
officials and employees of the Company and sums paid to attorneys as retainer,
of obtaining such reimbursement or making such recovery) on account of claims
and settlements involving reinsurance hereunder. Salvage thereon shall always
be used to reimburse the excess carriers in the reverse order of their priority
according to their participation before being used in any way to reimburse the
Company for its primary loss. The Company hereby agrees to enforce its rights
to salvage or subrogation relating to any loss, a part of which loss was
sustained by the Reinsurer, and to prosecute all claims arising out of such
rights.
Article XI - Reinsurance Premium
A. As premium for each excess layer of reinsurance coverage provided by this
Contract, the Company shall pay the Reinsurer the greater of the following:
1. The amount, shown as "Annual Minimum Premium" for that excess layer in
Schedule A attached hereto; or, in the event the early termination
provision outlined in paragraph A of Article II is exercised by the
Company, the amount shown as "Early Expiration Minimum Premium" for that
excess layer in Schedule A attached hereto.
2. The percentage, shown as "Premium Rate" for that excess layer in Schedule
A attached hereto, of the Company's net earned premium for the term of
this Contract.
B. The Company shall pay the Reinsurer an annual deposit premium for each excess
layer of an amount, shown as "Annual Deposit Premium" for that excess layer
in Schedule A attached hereto, in four equal installments of an amount, shown
as "Quarterly Deposit Premium" for that excess layer in Schedule A attached
hereto, on April 1, July 1 and October 1 of 1995, and January 1, 1996.
However, in the event that the Company elects to terminate this contract in
accordance with the early expiration provision outlined in paragraph A of
Article II, the Company shall not be required to pay the deposit due January
1, 1996.
C. Within 60 days after the expiration of this Contract, the Company shall
provide a report to the Reinsurer setting forth the premium due hereunder for
each excess layer, computed in accordance with paragraph A, and any
additional premium due the Reinsurer or return premium due the Company for
each such excess layer shall be remitted promptly.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 7
<PAGE>
================================================================================
D. "Net earned premium" as used herein is defined as gross earned premium of the
Company for the classes of business reinsured hereunder, less the earned
portion of premiums ceded by the Company for reinsurance which inures to the
benefit of this Contract. For purposes of calculating net earned premium,
for multiple peril policies with indivisible premiums, if any, 80.0% of the
total Homeowners basic policy premium and 70.0% of the total basic Commercial
Multiple Peril policy premium shall be considered subject premium.
Article XII - Offset
The Company or the Reinsurer may offset any balance, whether on account of
premiums, commissions, loss or claim expenses due from one party to the other
under this Contract or under any other reinsurance contract heretofore or
hereafter entered into between the Company and the Reinsurer, whether acting as
assuming reinsurer or ceding company.
Article XIII - Inspection of Records
The Reinsurer may inspect the records of the Company pertaining to the risks
reinsured hereunder.
Article XIV - Net Retained Lines (BRMA 32B)
A. This Contract applies only to that portion of any policy which the Company
retains net for its own account, and in calculating the amount of any loss
hereunder and also in computing the amount or amounts in excess of which this
Contract attaches, only loss or losses in respect of that portion of any
policy which the Company retains net for its own account shall be included.
B. The amount of the Reinsurer's liability hereunder in respect of any loss or
losses shall not be increased by reason of the inability of the Company to
collect from any other reinsurer(s), whether specific or general, any amounts
which may have become due from such reinsurer(s), whether such inability
arises from the insolvency of such other reinsurer(s) or otherwise.
Article XV - Errors and Omissions (BRMA 14F)
Inadvertent delays, errors or omissions made in connection with this Contract or
any transaction hereunder shall not relieve either party from any liability
which would have attached had such delay, error or omission not occurred,
provided always that such error or omission is rectified as soon as possible
after discovery.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 8
<PAGE>
================================================================================
Article XVI - Currency (BRMA 12A)
A. Whenever the word "Dollars" or the "$" sign appears in this Contract, they
shall be construed to mean United States Dollars and all transactions under
this Contract shall be in United States Dollars.
B. Amounts paid or received by the Company in any other currency shall be
converted to United States Dollars at the rate of exchange at the date such
transaction is entered on the books of the Company.
Article XVII - Taxes (BRMA 50B)
In consideration of the terms under which this Contract is issued, the Company
will not claim a deduction in respect of the premium hereon when making tax
returns, other than income or profits tax returns, to any state or territory of
the United States of America or the District of Columbia.
Article XVIII - Federal Excise Tax (BRMA 17A)
(Applicable to those reinsurers, excepting Underwriters at Lloyd's London and
other reinsurers exempt from Federal Excise Tax, who are domiciled outside the
United States of America.)
A. The Reinsurer has agreed to allow for the purpose of paying the Federal
Excise Tax the applicable percentage of the premium payable hereon as imposed
under Section 4371 of the Internal Revenue Code to the extent such premium is
subject to the Federal Excise Tax.
B. In the event of any return premium becoming due hereunder the Reinsurer will
deduct the applicable percentage from the return premium payable hereon and
the Company or its agent should take steps to recover the tax from the United
States Government.
Article XIX - Unauthorized Reinsurers
A. If the Reinsurer is unauthorized in any state of the United States of America
or the District of Columbia, the Reinsurer agrees to fund its share of the
Company's ceded outstanding loss and loss adjustment expense reserves
(including incurred but not reported loss reserves) by:
1. Clean, irrevocable and unconditional letters of credit issued and
confirmed, if confirmation is required by the insurance regulatory
authorities involved, by a bank or banks meeting the NAIC Securities
Valuation Office credit standards for issuers of letters of credit and
acceptable to said insurance regulatory authorities; and/or
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 9
<PAGE>
================================================================================
2. Escrow accounts for the benefit of the Company; and/or
3. Cash advances;
if, without such funding, a penalty would accrue to the Company on any
financial statement it is required to file with the insurance regulatory
authorities involved. The Reinsurer, at its sole option, may fund in other
than cash if its method and form of funding are acceptable to the insurance
regulatory authorities involved.
B. With regard to funding in whole or in part by letters of credit, it is agreed
that each letter of credit will be in a form acceptable to insurance
regulatory authorities involved, will be issued for a term of at least one
year and will include an "evergreen clause," which automatically extends the
term for at least one additional year at each expiration date unless written
notice of non-renewal is given to the Company not less than 30 days prior to
said expiration date. The Company and the Reinsurer further agree,
notwithstanding anything to the contrary in this Contract, that said letters
of credit may be drawn upon by the Company or its successors in interest at
any time, without diminution because of the insolvency of the Company or the
Reinsurer, but only for one or more of the following purposes:
1. To reimburse itself for the Reinsurer's share of losses and/or loss
adjustment expense paid under the terms of policies reinsured hereunder,
unless paid in cash by the Reinsurer;
2. To reimburse itself for the Reinsurer's share of any other amounts
claimed to be due hereunder, unless paid in cash by the Reinsurer;
3. To fund a cash account in an amount equal to the Reinsurer's share of any
ceded outstanding loss and loss adjustment expense reserves (including
incurred but not reported loss reserves) funded by means of a letter of
credit which is under non-renewal notice, if said letter of credit has
not been renewed or replaced by the Reinsurer 10 days prior to its
expiration date;
4. To refund to the Reinsurer any sum in excess of the actual amount
required to fund the Reinsurer's share of the Company's ceded outstanding
loss and loss adjustment expense reserves (including incurred but not
reported loss reserves), if so requested by the Reinsurer.
In the event the amount drawn by the Company on any letter of credit is in
excess of the actual amount required for B(1) or B(3), or in the case of
B(2), the actual amount determined to be due, the Company shall promptly
return to the Reinsurer the excess amount so drawn.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 10
<PAGE>
================================================================================
Article XX - Insolvency
A. In the event of the insolvency of one or more of the reinsured companies,
this reinsurance shall be payable directly to the company or to its
liquidator, receiver, conservator or statutory successor immediately upon
demand, with reasonable provision for verification, on the basis of the
liability of the company without diminution because of the insolvency of the
company or because the liquidator, receiver, conservator or statutory
successor of the company has failed to pay all or a portion of any claim. It
is agreed, however, that the liquidator, receiver, conservator or statutory
successor of the company shall give written notice to the Reinsurer of the
pendency of a claim against the company indicating the policy or bond
reinsured which claim would involve a possible liability on the part of the
Reinsurer within a reasonable time after such claim is filed in the
conservation or liquidation proceeding or in the receivership, and that
during the pendency of such claim, the Reinsurer may investigate such claim
and interpose, at its own expense, in the proceeding where such claim is to
be adjudicated, any defense or defenses that it may deem available to the
company or its liquidator, receiver, conservator or statutory successor. The
expense thus incurred by the Reinsurer shall be chargeable, subject to the
approval of the Court, against the company as part of the expense of
conservation or liquidation to the extent of a pro rata share of the benefit
which may accrue to the company solely as a result of the defense undertaken
by the Reinsurer.
B. Where two or more reinsurers are involved in the same claim and a majority in
interest elect to interpose defense to such claim, the expense shall be
apportioned in accordance with the terms of this Contract as though such
expense had been incurred by the company.
C. It is further understood and agreed that, in the event of the insolvency of
one or more of the reinsured companies, the reinsurance under this Contract
shall be payable directly by the Reinsurer to the company or to its
liquidator, receiver or statutory successor, except as provided by Section
4118(a) of the New York Insurance Law or except (1) where this Contract
specifically provides another payee of such reinsurance in the event of the
insolvency of the company or (2) where the Reinsurer with the consent of the
direct insured or insureds has assumed such policy obligations of the company
as direct obligations of the Reinsurer to the payees under such policies and
in substitution for the obligations of the company to such payees.
Article XXI - Arbitration (BRMA 6J)
A. As a condition precedent to any right of action hereunder, in the event of
any dispute or difference of opinion hereafter arising with respect to this
Contract, it is hereby mutually agreed that such dispute or difference of
opinion shall be submitted to arbitration. One Arbiter shall be chosen by
the Company, the other by the Reinsurer, and an Umpire shall be chosen by the
two Arbiters before they enter upon arbitration, all of whom shall be active
or retired disinterested executive officers of insurance or reinsurance
companies or Lloyd's London Underwriters. In the event that either party
should fail to choose an Arbiter within
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 11
<PAGE>
================================================================================
30 days following a written request by the other party to do so, the
requesting party may choose two Arbiters who shall in turn choose an Umpire
before entering upon arbitration. If the two Arbiters fail to agree upon the
selection of an Umpire within 30 days following their appointment, each
Arbiter shall nominate three candidates within 10 days thereafter, two of
whom the other shall decline, and the decision shall be made by drawing lots.
B. Each party shall present its case to the Arbiters within 30 days following
the date of appointment of the Umpire. The Arbiters shall consider this
Contract as an honorable engagement rather than merely as a legal obligation
and they are relieved of all judicial formalities and may abstain from
following the strict rules of law. The decision of the Arbiters shall be
final and binding on both parties; but failing to agree, they shall call in
the Umpire and the decision of the majority shall be final and binding upon
both parties. Judgment upon the final decision of the Arbiters may be
entered in any court of competent jurisdiction.
C. If more than one reinsurer is involved in the same dispute, all such
reinsurers shall constitute and act as one party for purposes of this Article
and communications shall be made by the Company to each of the reinsurers
constituting one party, provided, however, that nothing herein shall impair
the rights of such reinsurers to assert several, rather than joint, defenses
or claims, nor be construed as changing the liability of the reinsurers
participating under the terms of this Contract from several to joint.
D. Each party shall bear the expense of its own Arbiter, and shall jointly and
equally bear with the other the expense of the Umpire and of the arbitration.
In the event that the two Arbiters are chosen by one party, as above
provided, the expense of the Arbiters, the Umpire and the arbitration shall
be equally divided between the two parties.
E. Any arbitration proceedings shall take place at a location mutually agreed
upon by the parties to this Contract, but notwithstanding the location of the
arbitration, all proceedings pursuant hereto shall be governed by the law of
the state in which the Company has its principal office.
Article XXII - Service of Suit (BRMA 49C)
(Applicable if the Reinsurer is not domiciled in the United States of America,
and/or is not authorized in any State, Territory or District of the United
States where authorization is required by insurance regulatory authorities)
A. It is agreed that in the event the Reinsurer fails to pay any amount claimed
to be due hereunder, the Reinsurer, at the request of the Company, will
submit to the jurisdiction of any court of competent jurisdiction within the
United States. Nothing in this Article constitutes or should be understood
to constitute a waiver of the Reinsurer's rights to commence an action in any
court of competent jurisdiction in the United States, to remove
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 12
<PAGE>
================================================================================
an action to a United States District Court, or to seek a transfer of a case
to another court as permitted by the laws of the United States or of any
state in the United States.
B. Further, pursuant to any statute of any state, territory or district of the
United States which makes provision therefor, the Reinsurer hereby designates
the party named in its Interests and Liabilities Agreement, or if no party is
named therein, the Superintendent, Commissioner or Director of Insurance or
other officer specified for that purpose in the statute, or his successor or
successors in office, as its true and lawful attorney upon whom may be served
any lawful process in any action, suit or proceeding instituted by or on
behalf of the Company or any beneficiary hereunder arising out of this
Contract.
Article XXIII - Assignments and Changes of Interest
No assignment or change of the Company's interest hereunder, whether voluntary
or involuntary and whether by merger or reinsurance of its entire business with
another company or otherwise, shall be binding upon the Reinsurer.
Article XXIV - Agency Agreement
If more than one reinsured company is named as a party to this Contract, the
first named company shall be deemed the agent of the other reinsured companies
for purposes of sending or receiving notices required by the terms and
conditions of this Contract, and for purposes of remitting or receiving any
monies due any party.
Article XXV - Intermediary (BRMA 23A)
E. W. Blanch Co. is hereby recognized as the Intermediary negotiating this
Contract for all business hereunder. All communications (including but not
limited to notices, statements, premium, return premium, commissions, taxes,
losses, loss adjustment expense, salvages and loss settlements) relating thereto
shall be transmitted to the Company or the Reinsurer through E. W. Blanch Co.,
Reinsurance Services, 3500 West 80th Street, Minneapolis, Minnesota 55431.
Payments by the Company to the Intermediary shall be deemed to constitute
payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall
be deemed to constitute payment to the Company only to the extent that such
payments are actually received by the Company.
In Witness Whereof, the Company by its duly authorized representative has
executed this Contract as of the date undermentioned at:
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 13
<PAGE>
================================================================================
Los Angeles, California, this day of 199 .
------- ------------------------- --
-------------------------------------------------------------
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
California General Underwriters Insurance Company, Inc.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 14
<PAGE>
================================================================================
Schedule A
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
all of Los Angeles, California
<TABLE>
<CAPTION>
Second Third
Excess Excess
<S> <C> <C>
Company's Retention $10,000,000 $17,500,000
Reinsurer's Per Occurrence Limit $ 7,500,000 $12,500,000
Reinsurer's Annual Limit $15,000,000 $25,000,000
Annual Minimum Premium $ 477,200 $ 557,133
Early Expiration Minimum Premium $ 357,900 $ 417,850
Premium Rate
Class of Business other than Auto Physical Damage 3.369% 3.733%
Auto Physical Damage 0.250% 0.350%
Annual Deposit Premium $ 596,500 $ 696,416
Quarterly Deposit Premium $ 149,125 $ 174,104
</TABLE>
E. W. BLANCH CO.
================================================================================
Reinsurance Services
<PAGE>
================================================================================
Table of Contents
Article Page
I Classes of Business Reinsured 1
II Term 1
III Territory 2
IV Exclusions 2
V Retention and Limit 3
VI Reinstatement 3
VII Loss Occurrence (BRMA 27A) 4
VIII Definitions 5
IX Loss Notices and Settlements 6
X Salvage and Subrogation 7
XI Reinsurance Premium 7
XII Offset 8
XIII Inspection of Records 8
XIV Net Retained Lines (BRMA 32B) 8
XV Errors and Omissions (BRMA 14F) 8
XVI Currency (BRMA 12A) 9
XVII Taxes (BRMA 50C) 9
XIII Federal Excise Tax (BRMA 17A) 9
XIX Unauthorized Reinsurers 9
XX Insolvency 11
XXI Arbitration (BRMA 6J) 11
XXII Service of Suit (BRMA 49C) 12
XXIII Assignments and Changes of Interest 13
XXIV Agency Agreement 13
E. W. BLANCH CO.
================================================================================
Reinsurance Services
<PAGE>
================================================================================
XXV Intermediary (BRMA 23A) 13
E. W. BLANCH CO.
================================================================================
Reinsurance Services
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Certain Underwriting Members of Lloyd's
shown in the Signing Schedule attached hereto
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
6.70% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, the Agreement shall, upon notice from the Company
prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
In any action, suit or proceeding to enforce the Subscribing Reinsurer's
obligations under the attached Contract, service of process may be made upon
Mendes & Mount, 750 Seventh Avenue, New York, New York 10019.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
<PAGE>
================================================================================
Signed for and on behalf of the Subscribing Reinsurer in the Signing Schedule
attached hereto.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Certain Insurance Companies
shown in the Signing Schedule(s) attached hereto
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
8.30% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.
In any action, suit or proceeding to enforce the Subscribing Reinsurer's
obligations under the attached Contract, service of process may be made upon
Mendes & Mount, 750 Seventh Avenue, New York, New York 10019.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
<PAGE>
================================================================================
Signed for and on behalf of the Subscribing Reinsurer in the Signing Schedule(s)
attached hereto.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Abeille Reassurances, U.S. Branch
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
4.00% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this day of 199 .
-------- ------------------------------- --
---------------------------------------------------------------
Abeille Reassurances, U.S. Branch
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Allmerica Re
A Division of
The Hanover Insurance Company
Bedford, New Hampshire
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
1.25% of the Second Excess Catastrophe Reinsurance
1.50% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Florham Park, New Jersey, this day of 199 .
------- -------------------------- --
---------------------------------------------------------------
Allmerica Re, A Division of The Hanover Insurance Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 3 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
AXA Reinsurance Company
Wilmington, Delaware
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
10.00% of the Second Excess Catastrophe Reinsurance
10.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this day of 199 .
------- -------------------------------- --
---------------------------------------------------------------
AXA Reinsurance Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
First Excess and Reinsurance Corporation
Overland Park, Kansas
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
9.00% of the Second Excess Catastrophe Reinsurance
10.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Overland Park, Kansas, this day of 199 .
------- ----------------------------- --
---------------------------------------------------------------
First Excess and Reinsurance Corporation
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Kemper Reinsurance Company
Long Grove, Illinois
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
6.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Long Grove, Illinois, this day of 199 .
------- ------------------------------ --
---------------------------------------------------------------
Kemper Reinsurance Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Nationwide Mutual Insurance Company
Columbus, Ohio
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
3.00% of the Second Excess Catastrophe Reinsurance
3.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Columbus, Ohio, this day of 199 .
------- ------------------------------------ ---
---------------------------------------------------------------
Nationwide Mutual Insurance Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Prudential Reinsurance Company
Dover, Delaware
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
13.00% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate in
the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Newark, New Jersey, this day of 199 .
------- -------------------------------- ---
---------------------------------------------------------------
Prudential Reinsurance Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
San Francisco Reinsurance Company
Novato, California
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
6.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Novato, California, this day of 199 .
------- -------------------------------- ---
---------------------------------------------------------------
San Francisco Reinsurance Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Security Reinsurance Company
Farmington, Connecticut
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0.50% of the Second Excess Catastrophe Reinsurance
0.50% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Farmington, Connecticut, this day of 199 .
------- --------------------------- ---
---------------------------------------------------------------
Security Reinsurance Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Signet Star Reinsurance Company
Wilmington, Delaware
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
2.00% of the Second Excess Catastrophe Reinsurance
3.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Florham Park, New Jersey, this day of 199 .
------- -------------------------- ---
---------------------------------------------------------------
Signet Star Reinsurance Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Sydney Reinsurance Corporation
Philadelphia, Pennsylvania
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
4.25% of the Second Excess Catastrophe Reinsurance
3.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this day of 199 .
------- -------------------------------- ---
---------------------------------------------------------------
Sydney Reinsurance Corporation
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
United Fire & Casualty Company
Cedar Rapids, Iowa
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
1.00% of the Second Excess Catastrophe Reinsurance
1.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Cedar Rapids, Iowa, this day of 199 .
------- -------------------------------- ---
---------------------------------------------------------------
United Fire & Casualty Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
USF RE Insurance Company
Boston, Massachusetts
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
2.00% of the Second Excess Catastrophe Reinsurance
0% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Costa Mesa, California, this day of 199 .
------- ---------------------------- ---
---------------------------------------------------------------
USF RE Insurance Company
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Vesta Fire Insurance Corporation
Birmingham, Alabama
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
40.00% of the Second Excess Catastrophe Reinsurance
25.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Birmingham, Alabama, this day of 199 .
------- ------------------------------- ---
---------------------------------------------------------------
Vesta Fire Insurance Corporation
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Winterthur Reinsurance Corporation of America
New York, New York
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
5.00% of the Second Excess Catastrophe Reinsurance
1.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
New York, New York, this day of 199 .
------- -------------------------------- ---
---------------------------------------------------------------
Winterthur Reinsurance Corporation of America
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Various Lloyd's Underwriters
through
Patriot Re Corporation
Princeton, New Jersey
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
1.50% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Princeton, New Jersey, this day of 199 .
------- ----------------------------- ---
---------------------------------------------------------------
Patriot Re Corporation
(for and on behalf of Underwriters at Lloyd's
as evidenced by the attached Contract)
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 3 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Renaissance Reinsurance Ltd.
Hamilton, Bermuda
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
6.50% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Hamilton, Bermuda, this day of 199 .
------- --------------------------------- ---
---------------------------------------------------------------
Renaissance Reinsurance Ltd.
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Interests and Liabilities Agreement
of
Europa Re
Cologne, Germany
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to and duly executed by
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
The Subscribing Reinsurer hereby accepts the following percentage shares in the
interests and liabilities of the "Reinsurer" as set forth in the attached
Contract captioned above:
0% of the Second Excess Catastrophe Reinsurance
2.00% of the Third Excess Catastrophe Reinsurance
This Agreement shall become effective on April 1, 1995, and shall continue in
force until March 31, 1996, both days inclusive. However, if the "Reinsurer"
under the attached Contract sustains no loss from loss occurrences commencing on
or prior to December 31, 1995, this Agreement shall, upon notice from the
Company prior to December 31, 1995, expire on December 31, 1995.
The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 1 of 2
<PAGE>
================================================================================
being understood that the Subscribing Reinsurer shall in no event participate
in the interests and liabilities of the other reinsurers.
In Witness Whereof, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:
Cologne, Germany, this day of 199 .
------- ---------------------------------- ---
---------------------------------------------------------------
Europa Re
E. W. BLANCH CO.
================================================================================
Reinsurance Services
Page 2 of 2
<PAGE>
================================================================================
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
E. W. Blanch Co.
Reinsurance Services
3500 West 80th Street
================================================================================
<PAGE>
================================================================================
Minneapolis, Minnesota 55431
================================================================================
<PAGE>
================================================================================
Second and Third
Property Excess Catastrophe
Reinsurance Contract
Effective: April 1, 1995
issued to
Mercury Casualty Company
Mercury Insurance Company
California Automobile Insurance Company
and
California General Underwriters Insurance Company, Inc.
All of Los Angeles, California
Second Excess Catastrophe Reinsurance
<TABLE>
<CAPTION>
Reinsurers Participations
<S> <C>
Abeille-Paix Management, Incorporated
(for Abeille Reassurances, U.S. Branch) 4.00%
Allmerica Re, A Division of The Hanover Insurance Company 1.25
AXA Reinsurance Company 10.00
First Excess and Reinsurance Corporation 9.00
Nationwide Mutual Insurance Company 3.00
Prudential Reinsurance Company 13.00
Security Reinsurance Company 0.50
Signet Star Reinsurance Company 2.00
Sydney Reinsurance Corporation 4.25
United Fire & Casualty Company 1.00
USF RE Insurance Company 2.00
Vesta Fire Insurance Corporation 40.00
Winterthur Reinsurance Corporation of America 5.00
Total 95.00% part of
100% share in
the interests and
liabilities of the
"Reinsurer"
</TABLE>
================================================================================
Page 1 of 2
<PAGE>
================================================================================
================================================================================
Page 2 of 2
<PAGE>
================================================================================
Third Excess Catastrophe Reinsurance
<TABLE>
<CAPTION>
Reinsurers Participations
<S> <C>
Allmerica Re, A Division of The Hanover Insurance Company 1.50%
AXA Reinsurance Company 10.00
First Excess and Reinsurance Corporation 10.00
Kemper Reinsurance Company 6.00
Nationwide Mutual Insurance Company 3.00
Patriot Re Corporation (for Various Lloyd's Underwriters) 1.50
Renaissance Reinsurance Ltd. 6.50
San Francisco Reinsurance Company 6.00
Security Reinsurance Company 0.50
Signet Star Reinsurance Company 3.00
Sydney Reinsurance Corporation 3.00
United Fire & Casualty Company 1.00
Vesta Fire Insurance Corporation 25.00
Winterthur Reinsurance Corporation of America 1.00
Through Swire Blanch Europe
Europa Re 2.00
Through Nelson Hurst Reinsurance Brokers Limited
Lloyd's Underwriters and Companies
Per Signing Schedule(s) 15.00
Total 95.00% part of
100% share in
the interests and
liabilities of the
"Reinsurer"
</TABLE>
E. W. Blanch Co.
Reinsurance Services
3500 West 80th Street
================================================================================
Page 3 of 2
<PAGE>
================================================================================
Minneapolis, Minnesota 55431
================================================================================
Page 4 of 2
<PAGE>
Exhibit 23.1
The Board of Directors
Mercury General Corporation
We consent to incorporation by reference in the registration statement No.
33-4461 on Form S-8 of Mercury General Corporation of our reports dated March
22, 1996, relating to the consolidated balance sheets of Mercury General
Corporation and subsidiaries as of December 31, 1995 and 1994, and the related
consolidated statements of income, shareholders' equity, and cash flows and
related schedules for each of the years in the three-year period ended December
31, 1995, which reports appear in the December 31, 1995 annual report on Form
10-K of Mercury General Corporation.
KPMG PEAT MARWICK LLP
Los Angeles, California
March 22, 1996
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM MERCURY GENERAL CORPORATION 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-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<DEBT-HELD-FOR-SALE> 779,783
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 114,915
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 923,194
<CASH> 2,872
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 33,809
<TOTAL-ASSETS> 1,081,656
<POLICY-LOSSES> 253,546
<UNEARNED-PREMIUMS> 168,404
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 25,000
0
0
<COMMON> 40,895
<OTHER-SE> 524,293
<TOTAL-LIABILITY-AND-EQUITY> 1,081,656
616,326
<INVESTMENT-INCOME> 62,964
<INVESTMENT-GAINS> 1,048
<OTHER-INCOME> 1,501
<BENEFITS> 416,556
<UNDERWRITING-AMORTIZATION> 128,743
<UNDERWRITING-OTHER> 22,017
<INCOME-PRETAX> 114,323
<INCOME-TAX> 24,022
<INCOME-CONTINUING> 90,301
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 90,301
<EPS-PRIMARY> 3.31
<EPS-DILUTED> 0
<RESERVE-OPEN> 223,392
<PROVISION-CURRENT> 423,264
<PROVISION-PRIOR> (6,708)
<PAYMENTS-CURRENT> 243,294
<PAYMENTS-PRIOR> 145,664
<RESERVE-CLOSE> 250,990
<CUMULATIVE-DEFICIENCY> 6,708
</TABLE>
<PAGE>
Exhibit 28.1
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES
Notes to Schedule P
<TABLE>
<S> <C>
(1) The Parts of Schedule P: (3) Reinsurance A, B, C, and D (lines N to Q) are:
Part 1 - detailed information on losses and loss expenses. Reinsurance A = nonproportional property (1988 and subsequent)
Part 2 - history of incurred losses and allocated expenses. Reinsurance B = nonproportional liability (1988 and subsequent)
Part 3 - history of loss and allocated expense payments. Reinsurance C = financial lines (1988 and subsequent)
Part 4 - history of bulk and incurred-but-not reported
reserves. Reinsurance D = old Schedule O line 30 (1987 and prior)
Part 5 - history of claims.
Part 6 - history of premiums earned.
Part 7 - history of loss sensitive contracts.
Schedule P Interrogatories
(2) Lines of business A through M, R, and S are groupings of the lines of business used on the state page.
</TABLE>
SCHEDULE P - PART 1 - SUMMARY
($000 omitted)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Premiums Earned Loss and Loss Expense Payments
1 ------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were ------------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior...... ..X X X... .....X X X... .....X X X... ............61 .............. ............49 ..............
2. 1986....... ...240,107 ........4,306 ......235,801 .......160,408 .........7,476 ........11,951 ............46
3. 1987....... ...339,461 ........3,035 ......336,426 .......218,463 ...........658 ........17,376 ...........234
4. 1988....... ...417,990 ........5,867 ......412,123 .......267,715 .........1,948 ........21,842 ...........297
5. 1989....... ...477,732 ........5,300 ......472,432 .......283,691 ...........669 ........22,399 ............59
6. 1990....... ...482,940 ........5,623 ......477,317 .......284,441 ...........285 ........22,547 ...........193
7. 1991....... ...477,041 ........3,509 ......473,532 .......255,178 ...........289 ........23,523 ...........371
8. 1992....... ...424,116 ........2,595 ......421,521 .......242,005 ...........761 ........23,732 ............23
9. 1993....... ...478,323 ........4,227 ......474,096 .......249,345 ...........768 ........21,801 ............65
10. 1994....... ...530,709 ........1,318 ......529,391 .......267,482 .........8,084 ........11,400 ............23
11. 1995....... ...619,770 ........3,444 ......616,326 .......211,586 .........3,371 .........2,968 ............86
--------------------------------------------------------------------------------------------------------------------
12. Totals..... ..X X X... .....X X X... .....X X X... .....2,440,376 ........24,309 .......179,588 .........1,397
--------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------
1 -------------------------------------------- 12
Years 9 10 11
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.... ...........15 ............(9)...........101 .....X X X.....
2. 1986..... .......13,763 ........11,817 .......176,654 .....X X X.....
3. 1987..... .......20,166 ........19,479 .......254,426 .....X X X.....
4. 1988..... .......25,714 ........26,684 .......313,996 .....X X X.....
5. 1989..... .......27,091 ........31,652 .......337,014 .....X X X.....
6. 1990..... .......28,084 ........35,981 .......342,491 .....X X X.....
7. 1991..... .......27,148 ........27,824 .......305,865 .....X X X.....
8. 1992..... .......28,000 ........32,196 .......297,149 .....X X X.....
9. 1993..... .......29,984 ........34,905 .......305,218 .....X X X.....
10. 1994..... .......33,999 ........40,806 .......311,581 .....X X X.....
11. 1995..... .......22,242 ........33,698 .......244,795 .....X X X.....
-------------------------------------------------------------------------
12. Totals... ......256,206 .......295,033 .....2,889,291 .....X X X.....
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ...........10 ............. ............. .............. .............. .............. .............. .............
2. 1986..... ............6 ............. ............. .............. .............. .............. .............. .............
3. 1987..... ...........40 ............. ............7 .............. ............22 .............. .............. .............
4. 1988..... ...........53 ............. ............4 .............. ............34 .............. .............. .............
5. 1989..... ..........303 ............. ...........12 .............. ...........105 .............. .............. .............
6. 1990..... ..........372 ...........91 ...........15 .............. ...........180 .............. .............. .............
7. 1991..... ........1,285 ...........25 ...........77 .............. ...........508 .............. ............10 .............
8. 1992..... ........1,769 ..........142 ..........111 .............. .........1,086 .............. ............41 .............
9. 1993..... ........8,007 ...........45 ..........188 .............. .........4,536 .............. ............59 .............
10. 1994..... .......34,479 ........1,474 ..........987 .............. ........14,969 .............. ...........131 .............
11. 1995..... ......111,015 ..........778 .......32,527 .............. ........19,331 .............. .........4,634 .............
- - ----------------------------------------------------------------------------------------------------------------------------------
12. Totals... ......157,339 ........2,555 .......33,928 .............. ........40,771 .............. .........4,875 .............
- - ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct
Anticipated Unpaid Unpaid and Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.... ............... .............1 ............11 ....X X X....
2. 1986..... ............... .............. ............ 6 ....X X X....
3. 1987..... ............... .............2 ............71 ....X X X....
4. 1988..... ............... .............4 ............95 ....X X X....
5. 1989..... ............... ............18 ...........438 ....X X X....
6. 1990..... ............... ............19 ...........495 ....X X X....
7. 1991..... ............... ............80 .........1,935 ....X X X....
8. 1992..... ............643 ...........165 .........3,030 ....X X X....
9. 1993..... ..........1,291 ...........622 ........13,367 ....X X X....
10. 1994..... ..........3,409 .........2,480 ........51,572 ....X X X....
11. 1995..... .........23,384 ........13,237 .......179,966 ....X X X....
-------------------------------------------------------------------------
12. Totals... .........28,727 ........16,628 .......250,986 ....X X X....
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
-------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
2. 1986..... ......184,182 ........7,522 ......176,660 ..........76.7 .........174.7 ..........74.9 .............. .............
3. 1987..... ......255,389 ..........892 ......254,497 ..........75.2 ..........29.4 ..........75.6 .............. .............
4. 1988..... ......316,336 ........2,245 ......314,091 ..........75.7 ..........38.3 ..........76.2 .............. .............
5. 1989..... ......338,180 ..........728 ......337,452 ..........70.8 ..........13.7 ..........71.4 .............. .............
6. 1990..... ......343,555 ..........569 ......342,986 ..........71.1 ..........10.1 ..........71.9 .............. .............
7. 1991..... ......308,485 ..........685 ......307,800 ..........64.7 ..........19.5 ..........65.0 .............. .............
8. 1992..... ......301,105 ..........926 ......300,179 ..........71.0 ..........35.7 ..........71.2 .............. .............
9. 1993..... ......319,463 ..........878 ......318,585 ..........66.8 ..........20.8 ..........67.2 .............. .............
10. 1994..... ......372,734 ........9,581 ......363,153 ..........70.2 .........726.8 ..........68.6 .............. .............
11. 1995..... ......428,996 ........4,235 ......424,761 ..........69.2 .........123.0 ..........68.9 .............. .............
---------------------------------------------------------------------------------------------------------------------------------
12. Totals... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
Inter-Company -----------------------------
Pooling 34 35
Participation Losses Loss Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. Prior.... ......X X X.... ............10 .............1
2. 1986..... ............... .............6 ..............
3. 1987..... ............... ............47 ............24
4. 1988..... ............... ............57 ............38
5. 1989..... ............... ...........315 ...........123
6. 1990..... ............... ...........296 ...........199
7. 1991..... ............... .........1,337 ...........598
8. 1992..... ............... .........1,738 ........ 1,292
9. 1993..... ............... .........8,150 ........ 5,217
10. 1994..... ............... ........33,992 ........17,580
11. 1995..... ............... .......142,764 ........37,202
-----------------------------------------------------------
12. Totals... .....X X X..... .......188,712 ........62,274
-----------------------------------------------------------
</TABLE>
74
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 2 - SUMMARY
<TABLE>
<CAPTION>
- - --------------------------------------------------------------------------------------------------------------------------------
1 Incurred Losses and Allocated Expenses Reported At Year End ($000 omitted)
Years in Which --------------------------------------------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7 8 9
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- - --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... .....26,451 .....30,841 .....31,800 .....32,890 .....32,373 .....31,760 .....31,010 ..... 31,021
2. 1986 .... ....166,524 ....167,942 ....166,459 ....166,514 ....165,173 ....165,175 ....164,598 ....164,466
3. 1987 .... ...X X X... ....249,267 ....234,490 ....234,213 ....236,678 ....236,909 ....234,832 ....234,724
4. 1988 .... ...X X X... ...X X X... ....316,583 ....293,200 ....290,989 ....291,523 ....286,996 ....286,686
5. 1989 .... ...X X X... ...X X X... ...X X X... ....349,929 ....313,602 ....311,801 ....306,010 ....303,732
6. 1990 .... ...X X X... ...X X X... ...X X X... ...X X X... ....346,720 ....320,972 ....308,956 ....306,110
7. 1991 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ....328,070 ....287,398 ....281,475
8. 1992 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ....291,957 ....270,877
9. 1993 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ....288,766
10. 1994 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X...
11. 1995 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X...
- - --------------------------------------------------------------------------------------------------------------------------------
12. Totals ...................................................................................................................
- - --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------------
1 Development
Years in Which ----------------------------------------------------
Losses Were 10 11 12 13
Incurred 1994 1995 One Year Two Year
- - ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... .....31,282 .....31,358 .........76 ........337
2. 1986 .... ....164,868 ....164,843 ........(25) ........377
3. 1987 .... ....235,115 ....235,016 ........(99) ........292
4. 1988 .... ....287,441 ....287,403 ........(38) ........717
5. 1989 .... ....305,644 ....305,782 ........138 ......2,050
6. 1990 .... ....307,134 ....306,986 .......(148) ........876
7. 1991 .... ....279,221 ....279,896 ........675 .....(1,579)
8. 1992 .... ....269,732 ....267,818 .....(1,913) .....(3,059)
9. 1993 .... ....278,565 ....283,058 ......4,493 .....(5,708)
10. 1994 .... ....327,465 ....319,867 .....(7,597) ...X X X...
11. 1995 .... ...X X X... ....377,825 ...X X X... ...X X X...
- - ------------------------------------------------------------------------
12. Totals .......................................(4,438) (5,696)
- - ------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3 - SUMMARY
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
1 Cumulative Paid Losses and Allocated Expenses At Year End ($000 omitted)
Years in Which ------------------------------------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7 8 9
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....000.... .....16,413 .....25,137 .....29,024 .....31,064 .....31,163 .....31,216 .....31,237
2. 1986 .... .....75,554 ....133,737 ....152,045 ....158,747 ....162,375 ....164,101 ....164,590 ....164,670
3. 1987 .... ...X X X... ....110,820 ....190,234 ....214,262 ....226,587 ....233,005 ....234,431 ....234,929
4. 1988 .... ...X X X... ...X X X... ....132,377 ....230,702 ....265,865 ....279,240 ....284,859 ....286,959
5. 1989 .... ...X X X... ...X X X... ...X X X... ....145,298 ....250,389 ....284,974 ....298,622 ....302,988
6. 1990 .... ...X X X... ...X X X... ...X X X... ...X X X... ....146,974 ....259,117 ....292,452 ....301,682
7. 1991 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ....148,021 ....238,353 ....266,220
8. 1992 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ....141,704 ....225,014
9. 1993 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ....153,951
10. 1994 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X...
11. 1995 .... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------------------
12 13
1 Number of Number of
Years in Which --------------------------- Claims Claims
Losses Were 10 11 Closed With Closed
Incurred 1994 1995 Loss Without Loss
Payment Payment
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... .....31,238 .....31,348 ...X X X... ...X X X...
2. 1986 .... ....164,859 ....164,837 ...X X X... ...X X X...
3. 1987 .... ....234,989 ....234,947 ...X X X... ...X X X...
4. 1988 .... ....287,306 ....287,312 ...X X X... ...X X X...
5. 1989 .... ....304,797 ....305,362 ...X X X... ...X X X...
6. 1990 .... ....305,240 ....306,510 ...X X X... ...X X X...
7. 1991 .... ....275,823 ....278,041 ...X X X... ...X X X...
8. 1992 .... ....256,290 ....264,953 ...X X X... ...X X X...
9. 1993 .... ....240,495 ....270,313 ...X X X... ...X X X...
10. 1994 .... ....177,134 ....270,775 ...X X X... ...X X X...
11. 1995 .... ...X X X... ....211,097 ...X X X... ...X X X...
--------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4 - SUMMARY
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
1 Bulk and Incurred But Not Reported Reserves on Losses and Allocated Expenses at Year End ($000 omitted)
Years in Which ---------------------------------------------------------------------------------------------------------------
Losses 2 3 4 5 6 7 8 9 10 11
Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .. ....4,393 ....3,260 ....1,410 ......956 ........2 .......1 .......1 ........ ........ .......
2. 1986 ... ...36,485 ....9,881 ....3,394 ....2,384 .......77 .......3 .......2 ........ ........ .......
3. 1987 ... ..X X X.. ...55,237 ...10,006 ....3,907 ....2,463 ...1,186 .......9 .......4 ......11 ......7
4. 1988 ... ..X X X.. ..X X X.. ...74,966 ...14,710 ....6,752 ...3,414 ......23 ......18 .......2 ......4
5. 1989 ... ..X X X.. ..X X X.. ..X X X.. ...79,435 ...15,048 ...4,908 .....457 ......32 ......17 .....12
6. 1990 ... ..X X X.. ..X X X.. ..X X X.. ..X X X.. ...63,399 ..11,203 ...2,240 .....276 .....116 .....15
7. 1991 ... ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..54,608 ...7,903 .....681 .....207 .....87
8. 1992 ... ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X. ..38,545 ...4,004 .....415 ....152
9. 1993 ... ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X. ..X X X. ..26,419 ...1,193 ....247
10. 1994 ... ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X. ..X X X. ..X X X. ..31,953 ..1,118
11. 1995 ... ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X. ..X X X. ..X X X. ..X X X. .37,161
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
75
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
($000 omitted)
- - ----------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were -----------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X 30 4
2. 1986 1,769 192 1,577 1,538 331 206
3. 1987 1,828 180 1,648 1,050 93 102
4. 1988 1,552 144 1,408 1,219 237 140
5. 1989 1,228 107 1,121 380 35 49
6. 1990 970 120 850 354 2 35
7. 1991 889 107 782 388 8 95
8. 1992 761 171 590 344 20 39
9. 1993 2,256 605 1,651 1,280 86 126 1
10. 1994 5,434 1,136 4,298 1,796 29 135 1
11. 1995 5,135 686 4,449 1,576 217 217 45
---------------------------------------------------------------------------------------------------------------------
12. Totals X X X X X X X X X 9,955 1,058 1,148 47
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - --------------------------------------------------------------------------
1
--------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior 2 36 X X X
2. 1986 25 34 1,447 523
3. 1987 48 107 1,166 479
4. 1988 15 103 1,225 450
5. 1989 87 481 181
6. 1990 85 472 163
7. 1991 2 40 515 200
8. 1992 93 456 161
9. 1993 16 267 1,586 468
10. 1994 23 337 2,238 986
11. 1995 11 216 1,747 1,351
-------------------------------------------------------------------------
12. Totals 140 1,371 11,369 X X X
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior
2. 1986
3. 1987
4. 1988 (3)
5. 1989
6. 1990
7. 1991 100 25 48 1 5
8. 1992
9. 1993 (1) 26 2
10. 1994 149 115 16 9
11. 1995 677 3 333 58 33
---------------------------------------------------------------------------------------------------------------------------------
12. Totals 922 54 496 77 47
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior
2. 1986
3. 1987
4. 1988 (3) 1
5. 1989
6. 1990
7. 1991 129 1
8. 1992 1
9. 1993 (25) 1
10. 1994 289 18
11. 1995 1,098 272
-------------------------------------------------------------------------
12. Totals 1,488 294
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X X X X X X X X X X
2. 1986 1,778 331 1,447 100.5 172.4 91.8
3. 1987 1,259 93 1,166 68.9 51.7 70.8
4. 1988 1,459 237 1,222 94.0 164.6 86.8
5. 1989 516 35 481 42.0 32.7 42.9
6. 1990 474 2 472 48.9 1.7 55.5
7. 1991 677 33 644 76.2 30.8 82.4
8. 1992 476 20 456 62.5 11.7 77.3
9. 1993 1,674 113 1,561 74.2 18.7 94.5
10. 1994 2,557 30 2,527 47.1 2.6 58.8
11. 1995 3,110 265 2,845 60.6 38.6 63.9
----------------------------------------------------------------------------------------------------------------------------------
12. Totals X X X X X X X X X X X X X X X X X X
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
-----------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X
2. 1986
3. 1987
4. 1988 (3)
5. 1989
6. 1990
7. 1991 123 6
8. 1992
9. 1993 (27) 2
10. 1994 264 25
11. 1995 1,007 91
-----------------------------------------------------------
12. Totals X X X 1,364 124
-----------------------------------------------------------
</TABLE>
76
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
<CAPTION>
($000 omitted)
- - -----------------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9 10
in Which Expense Payments
Premiums Were --------------------------------------------------- Salvage Unallocated
Earned and Direct Net 5 6 7 8 and Loss
Losses Were and Ceded (2 - 3) Direct Direct Subrogation Expense
Incurred Assumed and Assumed Ceded and Assumed Ceded Received Payments
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X... ...X X X... ...X X X... .......(11) ........... .........31 ............ ........15 ........(12)
2. 1986 .... .....131,964 ......2,713 ....129,251 ....99,891 ......4,781 ......9,434 ..........46 .....2,455 ......7,114
3. 1987 .... .....192,629 ......1,561 ....191,068 ..137,4161 ........151 .....13,523 .........158 .....3,840 .....11,329
4. 1988 .... .....256,356 ......4,210 ....252,146 ...171,788 .........60 .....18,087 ..........67 .....4,961 .....16,932
5. 1989 .... .....306,827 ......3,878 ....302,949 ....185.772 .........51 .....18,791 ..........26 .....4,617 .....19,880
6. 1990 .... .....315,974 ......4,098 ....311,876 ....193,732 ........190 .....20,404 .........150 .....4,887 .....24,955
7. 1991 .... .....323,054 ......1,821 ....321,233 ....168,655 ........214 .....21,271 .........358 .....4,294 .....17,935
8. 1992 .... .....295,654 ......1,116 ....294,538 ....154,641 ........163 .....21,420 ...........9 .....4,096 .....17,325
9. 1993 .... .....327,184 ......1,281 ....325,903 ....149,664 ........210 .....18,636 ..........33 .....3,913 .....20,061
10. 1994 .... .....353,422 .....(2.852) ....356,274 ....143,187 ........528 ......9,599 ...........1 .....3,262 .....22,295
11. 1995 .... .....402,702 ........308 ....402,394 .....73,681 .........24 ......1,713 ...........1 .......981 .....15,679
- - -----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X... ...X X X... ...X X X... ...1,478,461 ......6,372 ....152,909 .........849 ....37,321 ....173,493
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------------------
1
-------------------------
Years 11 12
in Which Number of
Premiums Were Total Claims
Earned and Net Paid Reported -
Losses Were (5 - 6 + 7 Direct and
Incurred - 8 + 10) Assumed
- - -----------------------------------------
<S> <C> <C>
1. Prior .... ...........8 .....X X X..
2. 1986 ..... .....111,612 ......28,387
3. 1987 ..... .....162,004 ......39,854
4. 1988 ..... .....206,680 ......44,888
5. 1989 ..... .....224,366 ......47,096
6. 1990 ..... .....238,751 ......46,596
7. 1991 ..... .....207,289 ......41,036
8. 1992 ..... .....193,214 ......40,168
9. 1993 ..... .....188,118 ......42,803
10. 1994 ..... .....174,552 ......49,454
11. 1995 ..... ......91,048 ......53,724
- - -----------------------------------------
12. Totals ... ...1,797,642 ....X X X...
- - -----------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------------------------------------------------------------
21
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------- Salvage
13 14 15 16 17 18 19 20 and
Direct Direct Direct Direct Subrogation
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded Anticipated
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ..........10 ............ ........... ........... ........... ........... ............ ........... ..........
2. 1986 .... ...........5 ............ ........... ........... ........... ........... ............ ........... ..........
3. 1987 .... ..........34 ............ ........... ........... .........22 ........... ............ ........... ..........
4. 1988 .... ..........49 ............ ........... ........... .........34 ........... ............ ........... ..........
5. 1989 .... .........280 ............ ........... ........... ........105 ........... ............ ........... ..........
6. 1990 .... .........290 ..........81 ........... ........... ........153 ........... ............ ........... ..........
7. 1991 .... .......1,116 ............ .........12 ........... ........491 ........... ...........5 ........... ..........
8. 1992 .... .......1,670 ..........65 .........85 ........... ......1,017 ........... ..........40 ........... .......412
9. 1993 .... .......7,574 ...........1 ........110 ........... ......4,180 ........... ..........54 ........... .......681
10. 1994 .... ......32,103 ..........84 ........198 ........... .....14,227 ........... ..........(5) ........... .....1,811
11. 1995 .... .....104,113 .........353 .....25,456 ........... .....18,350 ........... .......4,118 ........... .....4,856
- - -----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. .....147,244 .........584 .....25,861 ........... .....38,579 ........... .......4,212 ........... ......7,760
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
22 23 24
Number of
Unallocated Total Claims
Loss Net Losses Outstanding -
Expenses and Expenses Direct and
Unpaid Unpaid Assumed
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ........1 .........11 ..........3
2. 1986 ..... ......... ..........5 ..........2
3. 1987 ..... ........2 .........58 ..........3
4. 1988 ..... ........4 .........87 ..........6
5. 1989 ..... .......18 ........403 .........10
6. 1990 ..... .......15 ........377 .........25
7. 1991 ..... .......77 ......1,701 .........75
8. 1992 ..... ......155 ......2,902 ........167
9. 1993 ..... ......572 .....12,489 ........640
10. 1994 ..... ....2,297 .....48,736 ......3,279
11. 1995 ..... ...10,784 ....162,468 .....19,060
- - ------------------------------------------------------
12. Totals ... ....13,925 ....229,237 .....23,270
- - ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money 33
-------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32 Inter-Company
Pooling
Direct Direct Loss Participation
and Assumed Ceded Net and Assumed Ceded Net Loss Expense Percentage
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ........... ........... ...X X X...
2. 1986 .... ....116,444 ......4,827 ....111,617 .......88.2 ......177.9 .......86.4 ........... ........... ...........
3. 1987 .... ....162,371 ........309 ....162,062 .......84.3 .......19.8 .......84.8 ........... ........... ...........
4. 1988 .... ....206,894 ........127 ....206,767 .......80.7 ........3.0 .......82.0 ........... ........... ...........
5. 1989 .... ....224,846 .........77 ....224,769 .......73.3 ........2.0 .......74.2 ........... ........... ...........
6. 1990 .... ....239,549 ........421 ....239,128 .......75.8 .......10.3 .......76.7 ........... ........... ...........
7. 1991 .... ....209,562 ........572 ....208,990 .......64.9 .......31.4 .......65.1 ........... ........... ...........
8. 1992 .... ....196,353 ........237 ....196,116 .......66.4 .......21.2 .......66.6 ........... ........... ...........
9. 1993 .... ....200,851 ........244 ....200,607 .......61.4 .......19.0 .......61.6 ........... ........... ...........
10. 1994 .... ....223,901 ........613 ....223,288 .......63.4 ......(21.5) .......62.7 ........... ........... ...........
11. 1995 .... ....253,894 ........378 ....253,516 .......63.0 ......122.7 .......63.0 ........... ........... ...........
- - -----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ........... ........... ...X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------
Net Balance Sheet Reserves
After Discount
---------------------------
34 35
Loss
Losses Expenses
Unpaid Unpaid
- - -----------------------------------------
<S> <C> <C>
1. Prior .... .........10 ..........1
2. 1986 ..... ..........5 ...........
3. 1987 ..... .........34 .........24
4. 1988 ..... .........49 .........38
5. 1989 ..... ........280 ........123
6. 1990 ..... ........209 ........168
7. 1991 ..... ......1,128 ........573
8. 1992 ..... ......1,690 ......1,212
9. 1993 ..... ......7,683 ......4,806
10. 1994 ..... .....32,217 .....16,519
11. 1995 ..... ....129,216 .....33,252
- - -----------------------------------------
12. Totals ... ....172,521 .....56,716
- - -----------------------------------------
</TABLE>
77
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
<CAPTION>
($000 omitted)
-------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-----------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were -----------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ...X X X... ...X X X... ...X X X... ............ ............ ............ ...........
2. 1986..... .....14,312 ........262 .....14,050 ......10,164 .......1,575 .......1,030 ...........
3. 1987..... .....21,100 ........205 .....20,895 ......14,116 .........176 .......2,168 .........56
4. 1988..... .....23,777 ........354 .....23,423 ......18,062 .......1,360 .......2,573 ........225
5. 1989..... .....24,569 .........96 .....24,473 ......15,475 .........320 .......2,602 .........28
6. 1990..... .....21,747 ........102 .....21,645 ......11,094 ............ .......1,503 .........28
7. 1991..... .....20,339 .........91 .....20,248 .......9,318 ............ .......1,567 .........10
8. 1992..... .....16,507 .........40 .....16,467 .......8,124 ............ .......1,441 ..........3
9. 1993..... .....18,237 .........40 .....18,197 .......8,463 ............ .......1,491 ..........3
10. 1994..... .....20,437 ..........1 .....20,436 .......6,385 ............ .........571 ...........
11. 1995..... .....22,120 ........... .....22,120 .......2,488 ............ ..........82 ...........
-------------------------------------------------------------------------------------------------------------------
12. Totals ...X X X... ...X X X... ...X X X... .....103,689 .......3,431 ......15,028 ........353
-------------------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------
1
--------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior..... ........... ...........1 ...........1 ...X X X....
2. 1986...... ........198 .........555 ......10,174 .......2,127
3. 1987...... ........156 .........772 ......16,824 .......2,946
4. 1988...... ........214 .......1,024 ......20,074 .......3,165
5. 1989...... ........156 .........810 ......18,539 .......2,838
6. 1990...... ........133 .......1,135 ......13,704 .......2,404
7. 1991...... ........120 .........667 ......11,542 .......1,903
8. 1992...... ........155 .........703 ......10,265 .......1,797
9. 1993...... ........164 .......1,109 ......11,060 .......1,761
10. 1994...... ........118 .......1,181 .......8,137 .......2,010
11. 1995...... .........30 .........806 .......3,376 .......1,934
-------------------------------------------------------------------------
12. Totals.... ......1,444 .......8,763 .....123,696 ...X X X....
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ........... ........... ........... ........... ............. ........... ........... ...........
2. 1986..... ........... ........... ........... ........... ............. ........... ........... ...........
3. 1987..... ..........6 ........... ..........7 ........... ............. ........... ........... ...........
4. 1988..... ..........7 ........... ..........4 ........... ............. ........... ........... ...........
5. 1989..... .........21 ........... .........12 ........... ............. ........... ........... ...........
6. 1990..... .........82 .........10 .........15 ........... ...........27 ........... ........... ...........
7. 1991..... .........69 ........... .........17 ........... ...........16 ........... ........... ...........
8. 1992..... ........184 ........... .........26 ........... ...........64 ........... ..........1 ...........
9. 1993..... ........825 ........... .........16 ........... ..........335 ........... ........... ...........
10. 1994..... ......1,963 ........... ........250 ........... ..........680 ........... .........71 ...........
11. 1995..... ......4,800 ........... ......3,147 ........... ..........654 ........... ........406 ...........
---------------------------------------------------------------------------------------------------------------------------------
12. Totals... ......7,957 .........10 ......3,494 ........... ........1,776 ........... ........478 ...........
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior..... ............ ........... ............ ...........
2. 1986...... ............ ........... ............ ...........
3. 1987...... ............ ........... ..........13 ...........
4. 1988...... ............ ........... ..........11 ..........1
5. 1989...... ............ ........... ..........33 ...........
6. 1990...... ............ ..........4 .........118 ..........2
7. 1991...... ............ ..........3 .........105 ..........3
8. 1992...... ............ .........10 .........285 .........21
9. 1993...... ............ .........50 .......1,226 .........42
10. 1994...... ..........16 ........157 .......3,121 ........182
11. 1995...... .........100 ........744 .......9,751 ........745
---------------------------------------------------------------------------
12. Totals.... .........116 ........968 ......14,663 ........996
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
-------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..X X X... ...X X X... ...X X X... ...X X X.... ...X X X.... ...X X X.... ........... ...........
2. 1986...... ....11,749 ......1,575 .....10,174 ........82.1 .......601.1 ........72.4 ........... ...........
3. 1987...... ....17,069 ........232 .....16,837 ........80.9 .......113.2 ........80.6 ........... ...........
4. 1988...... ....21,670 ......1,585 .....20,085 ........91.1 .......447.7 ........85.7 ........... ...........
5. 1989...... ....18,920 ........348 .....18,572 ........77.0 .......362.5 ........75.9 ........... ...........
6. 1990...... ....13,860 .........38 .....13,822 ........63.7 ....... 37.3 ........63.9 ........... ...........
7. 1991...... ....11,657 .........10 .....11,647 ........57.3 ....... 11.0 ........57.5 ........... ...........
8. 1992...... ....10,553 ..........3 .....10,550 ........63.9 .........7.5 ........64.1 ........... ...........
9. 1993...... ....12,289 ..........3 .....12,286 ........67.4 .........7.5 ........67.5 ........... ...........
10. 1994...... ....11,258 ........... .....11,258 ........55.1 ............ ........55.1 ........... ...........
11. 1995...... ....13,127 ........... .....13,127 ........59.3 ............ ........59.3 ........... ...........
---------------------------------------------------------------------------------------------------------------------------------
12. Totals X X X X X X X X X X X X X X X X X X
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
-----------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
------------------------------------------------------------
<S> <C> <C> <C>
1. Prior.... ...X X X... ............ ...........
2. 1986..... ........... ............ ...........
3. 1987..... ........... ..........13 ...........
4. 1988..... ........... ..........11 ...........
5. 1989..... ........... ..........33 ...........
6. 1990..... ........... ..........87 .........31
7. 1991..... ........... ..........86 .........19
8. 1992..... ........... .........210 .........75
9. 1993..... ........... .........841 ........385
10. 1994..... ........... .......2,213 ........908
11. 1995..... ........... .......7,947 ......1,804
------------------------------------------------------------
12. Totals... ...X X X... ......11,441 ......3,222
------------------------------------------------------------
</TABLE>
78
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
<TABLE>
<CAPTION>
($000 omitted)
---------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were -------------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ....X X X ... ....X X X.... ....X X X.... ................ ............ .............. ...............
2. 1986..... ............. ............. ............. ................ ............ .............. ...............
3. 1987..... ............. ............. ............. ................ ............ .............. ...............
4. 1988..... ............. ............ ............. ................ ............ .............. ...............
5. 1989..... ............. ............. ............. ................ ............ .............. ...............
6. 1990..... ............. ............ ............. ................ ............ .............. ...............
7. 1991..... ............. ............. ............. ................ N O N E ...............
8. 1992..... ............. ............. ............. ................ ............ .............. ...............
9. 1993..... ............. ............. ............. ................ ............ .............. ...............
10. 1994..... ............. ............. ............. ................ ............ .............. ...............
11. 1995..... ............. ............. ............. ................ ............ .............. ...............
---------------------------------------------------------------------------------------------------------------------
12. Totals... ....X X X.... ....X X X.... ....X X X.... ................ ............ .............. ...............
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------------------------------
1
--------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.... ............. .............. ............... ....X X X.....
2. 1986..... ............. .............. ............... ..............
3. 1987..... ............. .............. ............... ..............
4. 1988..... ............. .............. ............... ..............
5. 1989..... ............. .............. ............... ..............
6. 1990..... ............. .............. ............... ..............
7. 1991..... ............. .............. ............... ..............
8. 1992..... ............. .............. ............... ..............
9. 1993..... ............. .............. ............... ..............
10. 1994..... ............. .............. ............... ..............
11. 1995..... ............. .............. ............... ..............
--------------------------------------------------------------------------
12. Totals... ............. .............. ............... ....X X X.....
--------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
--------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ............ ............ .............. ............. ............... ............... ............... .............
2. 1986..... ............ ............ .............. ............. ............... ............... ............... .............
3. 1987..... ............ ............ .............. ............. ............... ............... ............... .............
4. 1988..... ............ ............ .............. ............. ............... ............... ............... .............
5. 1989..... ............ ............ .............. ............. ............... ............... ............... .............
6. 1990..... ............ ............ .............. ............. N O N E ............... .............
7. 1991..... ............ ............ .............. ............. ............... ............... ............... .............
8. 1992..... ............ ............ .............. ............. ............... ............... ............... .............
9. 1993..... ............ ............ .............. ............. ............... ............... ............... .............
10. 1994..... ............ ............ .............. ............. ............... ............... ............... .............
11. 1995..... ............ ............ .............. ............. ............... ............... ............... .............
----------------------------------------------------------------------------------------------------------------------------------
12. Totals... ............ ............ .............. .............. .............. ............... ............... .............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.... ............. ............... .............. ..............
2. 1986..... ............. ............... .............. ..............
3. 1987..... ............. ............... .............. ..............
4. 1988..... ............. ............... .............. ..............
5. 1989..... ............. ............... .............. ..............
6. 1990..... ............. ............... .............. ..............
7. 1991..... ............. ............... .............. ..............
8. 1992..... ............. ............... .............. ..............
9. 1993..... ............. ............... .............. ..............
10. 1994..... ............. ............... .............. ..............
11. 1995..... ............. ............... .............. ..............
---------------------------------------------------------------------------
12. Totals... ............. ............... .............. ..............
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .....X X X..... ....X X X...... ............. ..............
2. 1986..... ............. ............. ............. ............. ............... ............... ............. ..............
3. 1987..... ............. ............. ............. ............. ............... ............... ............. ..............
4. 1988..... ............. ............. ............. ............. ............... ............... ............. ..............
. 5. 1989..... ............. ............. ............. ............. ............... ............... ............. ..............
6. 1990..... ............. ............. ............. N O N E ............... ............. ..............
7. 1991..... ............. ............. ............. ............. ............... ............... ............. ..............
8. 1992..... ............. ............. ............. ............. ............... ............... ............. ..............
9. 1993..... ............. ............. ............. ............. ............... ............... ............. ..............
10. 1994..... ............. ............. ............. ............. ............... ............... ............. ..............
11. 1995..... ............. ............. ............. ............. ............... ............... ............. ..............
----------------------------------------------------------------------------------------------------------------------------------
12. Totals... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .....X X X..... ....X X X...... ............. ..............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
-----------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
------------------------------------------------------------
<S> <C> <C> <C>
1. Prior.... ......X X X.... .............. ..............
2. 1986..... ............... .............. ..............
3. 1987..... ............... .............. ..............
4. 1988..... ............... .............. ..............
5. 1989..... ............... .............. ..............
6. 1990..... ............... .............. ..............
7. 1991..... ............... .............. ..............
8. 1992..... ............... .............. ..............
9. 1993..... ............... .............. ..............
10. 1994..... ............... .............. ..............
11. 1995..... ............... .............. ..............
------------------------------------------------------------
12. Totals... ......X X X.... .............. ..............
------------------------------------------------------------
</TABLE>
79
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1E - COMMERCIAL MULTIPLE PERIL
<TABLE>
<CAPTION>
($000 omitted)
--------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were -----------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior..... ..X X X... ..X X X... ..X X X... .......... ......... ........1 ..........
2. 1986...... .....2,285 .......747 .....1,538 .....1,330 ......771 ......183 ..........
3. 1987...... .....2,547 .......703 .....1,844 .......716 ......229 ......185 .........1
4. 1988...... .....2,774 .......732 .....2,042 .......562 ......201 ......126 .........9
5. 1989...... .....2,919 .......791 .....2,128 .......701 ......168 .......99 .........4
6. 1990...... .....2,984 .......883 .....2,101 .......417 .......93 .......89 ........15
7. 1991...... .....3,353 .....1,056 .....2,297 .......284 .......36 ......143 .........2
8. 1992...... .....3,443 .......849 .....2,594 .......859 ......263 ......143 ........10
9. 1993...... .....5,427 .....1,813 .....3,614 .....1,042 ......448 ......206 ........24
10. 1994...... .....6,976 .....2,253 .....4,723 .....1,495 ......643 ......131 ........19
11. 1995...... .....8,169 .....1,679 .....6,490 .....1,762 ......898 .......79 ........41
------------------------------------------------------------------------------------------------------------------
12. Totals.... ..X X X... ..X X X... ..X X X... .....9,168 ....3,750 ....1,385 .......125
-------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------------------
1
--------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior..... .......... ...........1 ...........2 ..X X X....
2. 1986...... .......... ..........99 .........841 ........158
3. 1987...... .........5 .........312 .........983 ........107
4. 1988...... .........3 .........207 .........685 ........ 89
5. 1989...... ........12 .........220 .........848 ........ 95
6. 1990...... .........3 .........232 .........630 ........100
7. 1991...... .........6 .........352 .........741 ........101
8. 1992...... .......... .........624 .......1,353 ........146
9. 1993...... ........89 .........814 .......1,590 ........200
10. 1994...... ........10 .........732 .......1,696 ........227
11. 1995...... .........4 .........807 .......1,709 ........253
------------------------------------------------------------------------
12. Totals.... .......132 .......4,400 ......11,078 ..X X X....
------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior..... .......... ........... .......... ........... ........... .......... ........... ...........
2. 1986...... .......... ........... .......... ........... ........... .......... ........... ...........
3. 1987...... .......... ........... .......... ........... ........... .......... ........... ...........
4. 1988...... .......... ........... .......... ........... ........... .......... ........... ...........
5. 1989...... .......... ........... .......... ........... ........... .......... ........... ...........
6. 1990...... .......... ........... .......... ........... ........... .......... ........... ...........
7. 1991...... .......... ........... .......... ........... ........... .......... ........... ...........
8. 1992...... .......125 .........75 .......... ........... ..........5 .......... ........... ...........
9. 1993...... .......208 .........25 ........55 ........... .........18 .......... ..........5 ...........
10. 1994...... .......170 .........45 .......109 ........... .........15 .......... ..........9 ...........
11. 1995...... .......781 ........416 .......383 ........... .........37 .......... .........38 ...........
---------------------------------------------------------------------------------------------------------------------------------
12. Totals.... .....1,286 ........561 .......547 ........... ..........75 .......... .........52 ...........
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - --------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior..... .......... ........... ........... ..........
2. 1986...... .......... ........... ........... ..........
3. 1987...... .......... ........... ........... ..........
4. 1988...... .......... ........... ........... ..........
5. 1989...... .......... ........... ........... .........1
6. 1990...... .......... ........... ........... ..........
7. 1991...... .......... ........... ........... ..........
8. 1992...... .......... ........... .........55 .........6
9. 1993...... .......... ........... ........261 .........9
10. 1994...... .......... ........... ........258 ........14
11. 1995...... .......... ........... ........823 ........69
-------------------------------------------------------------------------
12. Totals.... .......... ........... ........1,399 ........99
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior..... ..X X X... ...X X X... ...X X X... ...X X X.... ...X X X.... ...X X X.... ........... ...........
2. 1986...... .....1,612 ........771 ........841 ........70.5 .......103.2 ........54.7 ........... ...........
3. 1987...... .....1,213 ........230 ........983 ........47.6 ........32.7 ........53.3 ........... ...........
4. 1988...... .......895 ........210 ........685 ........32.3 ........28.7 ........33.5 ........... ...........
5. 1989...... .....1,022 ........172 ........850 ........35.0 ........21.7 ........39.9 ........... ...........
6. 1990...... .......738 ........108 ........630 ........24.7 ........12.2 ........30.0 ........... ...........
7. 1991...... .......779 .........38 ........741 ........23.2 .........3.6 ........32.3 ........... ...........
8. 1992...... .....1,756 ........348 ......1,408 ........51.0 ........41.0 ........54.3 ........... ...........
9. 1993...... .....2,348 ........497 ......1,851 ........43.3 ........27.4 ........51.2 ........... ...........
10. 1994...... .....2,661 ........707 ......1,954 ........38.1 ........31.4 ........41.4 ........... ...........
11. 1995...... .....3,887 ......1,355 ......2,532 ........47.6 ........80.7 ........39.0 ........... ...........
--------------------------------------------------------------------------------------------------------------------------------
12. Totals.... ..X X X... ...X X X... ...X X X... ...X X X.... ...X X X... ...X X X.... ........... ...........
--------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
-----------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-------------------------------------------------------------
<S> <C> <C> <C>
1. Prior..... ..X X X.... ........... ...........
2. 1986...... ........... ........... ...........
3. 1987...... ........... ........... ...........
4. 1988...... ........... ........... ...........
5. 1989...... ........... ........... ...........
6. 1990...... ........... ........... ...........
7. 1991...... ........... ........... ...........
8. 1992...... ........... .........50 ..........5
9. 1993...... ........... ........238 .........23
10. 1994...... ........... ........234 .........24
11. 1995...... ........... ........748 .........75
-------------------------------------------------------------
12. Totals.... ..X X X.... .....1,272 ........127
-------------------------------------------------------------
</TABLE>
80
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
($000 omitted)
- - --------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9
in Which Expense Payments
Premiums Were -------------------------------------------------------- Salvage
Earned and Direct Net 5 6 7 8 and
Losses Were and Ceded (2 - 3) Direct Direct Subrogation
Incurred Assumed and Assumed Ceded and Assumed Ceded Received
- - --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ..X X X.. ..X X X.. ..X X X.. ......... ......... ......... ......... .........
2. 1986 .. ......... ......... ......... ......... ......... ......... ......... .........
3. 1987 .. ......... ......... ......... ......... ......... .........
4. 1988 .. ......... ......... ......... ......... ......... .........
5. 1989 .. ......... ......... ......... ......... N O N E ......... .........
6. 1990 .. ......... ......... ......... ......... ......... .........
7. 1991 .. ......... ......... ......... ......... ......... .........
8. 1992 .. ......... ......... ......... ......... ......... .........
9. 1993 .. ......... ......... ......... ......... ......... ......... ......... .........
10. 1994 .. ......... ......... ......... ......... ......... ......... ......... .........
11. 1995 .. ......... ......... ......... ......... ......... ......... ......... .........
- - --------------------------------------------------------------------------------------------------------------------------
12. Totals.. ..X X X.. ..X X X.. ..X X X.. ......... ......... ......... ......... .........
- - --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - --------------------------------------------------------
1
----------------------------
Years 10 11 12
in Which Number of
Premiums Were Unallocated Total Claims
Earned and Loss Net Paid Reported -
Losses Were Expense (5 - 6 + 7 Direct and
Incurred Payments - 8 + 10) Assumed
- - --------------------------------------------------------
<S> <C> <C> <C>
1. Prior.. ......... ......... ..X X X..
2. 1986 .. ......... ......... .........
3. 1987 .. ......... ......... .........
4. 1988 .. ......... ......... .........
5. 1989 .. ......... ......... .........
6. 1990 .. ......... ......... .........
7. 1991 .. ......... ......... .........
8. 1992 .. ......... ......... .........
9. 1993 .. ......... ......... .........
10. 1994 .. ......... ......... .........
11. 1995 .. ......... ......... .........
- - --------------------------------------------------------
12. Totals.. ......... ......... ..X X X..
- - --------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ......... ......... ......... ......... ......... ......... ......... .........
2. 1986 .. ......... ......... ......... ......... ......... ......... ......... .........
3. 1987 .. ......... ......... ......... ......... ......... ......... ......... .........
4. 1988 .. ......... ......... ......... ......... ......... ......... ......... .........
5. 1989 .. ......... ......... ......... ......... ......... ......... ......... .........
6. 1990 .. ......... ......... ......... ......... ......... ......... ......... .........
7. 1991 .. ......... ......... ......... ......... ......... ......... ......... .........
8. 1992 .. ......... ......... ......... ......... ......... ......... ......... .........
9. 1993 .. ......... ......... ......... ......... ......... ......... ......... .........
10. 1994 .. ......... ......... ......... ......... ......... ......... ......... .........
11. 1995 .. ......... ......... ......... ......... ......... ......... ......... .........
--------------------------------------------------------------------------------------------------------------------------
12. Totals.. ......... ......... ......... ......... ......... ......... ......... .........
--------------------------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ......... ......... ......... .........
2. 1986 .. ......... ......... ......... .........
3. 1987 .. ......... ......... ......... .........
4. 1988 .. ......... ......... ......... .........
5. 1989 .. ......... ......... ......... .........
6. 1990 .. ......... ......... ......... .........
7. 1991 .. ......... ......... ......... .........
8. 1992 .. ......... ......... ......... .........
9. 1993 .. ......... ......... ......... .........
10. 1994 .. ......... ......... ......... .........
11. 1995 .. ......... ......... ......... .........
--------------------------------------------------------------------
12. Totals.. ......... ......... ......... .........
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
-------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ......... .........
2. 1986 .. ......... ......... ......... ......... ......... ......... ......... .........
3. 1987 .. ......... ......... ......... ......... ......... .........
4. 1988 .. ......... ......... ......... ......... ......... .........
5. 1989 .. ......... ......... ......... N O N E ......... ......... .........
6. 1990 .. ......... ......... ......... ......... ......... .........
7. 1991 .. ......... ......... ......... ......... ......... .........
8. 1992 .. ......... ......... ......... ......... ......... .........
9. 1993 .. ......... ......... ......... ......... ......... ......... ......... .........
10. 1994 .. ......... ......... ......... ......... ......... ......... ......... .........
11. 1995 .. ......... ......... ......... ......... ......... ......... ......... .........
--------------------------------------------------------------------------------------------------------------------------
12. Totals.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X..
--------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
---------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
------------------------------------------------------------
<S> <C> <C> <C>
1. Prior.. ..X X X.. ......... .........
2. 1986 .. ......... ......... .........
3. 1987 .. ......... ......... .........
4. 1988 .. ......... ......... .........
5. 1989 .. ......... ......... .........
6. 1990 .. ......... ......... .........
7. 1991 .. ......... ......... .........
8. 1992 .. ......... ......... .........
9. 1993 .. ......... ......... .........
10. 1994 .. ......... ......... .........
11. 1995 .. ......... ......... .........
------------------------------------------------------------
12. Totals.. ..X X X.. ......... .........
------------------------------------------------------------
</TABLE>
81
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<CAPTION>
($000 omitted)
-------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-----------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were -----------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ...X X X... ...X X X... ...X X X... ........... ............ ............ ............
2. 1986 .... ........... ........... ........... ........... ............ ............ ............
3. 1987 .... ........... ........... ........... ........... ............ ............ ............
4. 1988 .... ........... ........... ........... ........... ............
5. 1989 .... ........... ........... ........... ........... ............
6. 1990 .... ........... ........... ........... ........... N O N E ............
7. 1991 .... ........... ........... ........... ........... ............
8. 1992 .... ........... ........... ........... ........... ............ ............ ............
9. 1993 .... ........... ........... ........... ........... ............ ............ ............
10. 1994 .... ........... ........... ........... ........... ............ ............ ............
11. 1995 .... ........... ........... ........... ........... ............ ............ ............
-------------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X ........... ............ ............ ............
-------------------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------
1
--------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... ......... ......... ......... ..X X X..
2. 1986 .... ......... ......... ......... .........
3. 1987 .... ......... ......... ......... .........
4. 1988 .... ......... ......... ......... .........
5. 1989 .... ......... ......... ......... .........
6. 1990 .... ......... ......... ......... .........
7. 1991 .... ......... ......... ......... .........
8. 1992 .... ......... ......... ......... .........
9. 1993 .... ......... ......... ......... .........
10. 1994 .... ......... ......... ......... .........
11. 1995 .... ......... ......... ......... .........
-------------------------------------------------------------------------
12. Totals .. ......... ......... ......... X X X
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ......... ......... ......... ......... ......... ......... ......... .........
2. 1986 .... ......... ......... ......... ......... ......... ......... ......... .........
3. 1987 .... ......... ......... ......... ......... ......... ......... ......... .........
4. 1988 .... ......... ......... ......... ......... ......... ......... ......... .........
5. 1989 .... ......... ......... ......... ......... ......... .........
6. 1990 .... ......... ......... ......... N O N E ......... ......... .........
7. 1991 .... ......... ......... ......... ......... ......... .........
8. 1992 .... ......... ......... ......... ......... ......... ......... ......... .........
9. 1993 .... ......... ......... ......... ......... ......... ......... ......... .........
10. 1994 .... ......... ......... ......... ......... ......... ......... ......... .........
11. 1995 .... ......... ......... ......... ......... ......... ......... ......... .........
--------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ......... ......... ......... ......... ......... ......... ......... .........
--------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... ........... ........... ........... ...........
2. 1986 .... ........... ........... ........... ...........
3. 1996 .... ........... ........... ........... ...........
4. 1988 .... ........... ........... ........... ...........
5. 1989 .... ........... ........... ........... ...........
6. 1990 .... ........... ........... ........... ...........
7. 1991 .... ........... ........... ........... ...........
8. 1992 .... ........... ........... ........... ...........
9. 1993 .... ........... ........... ........... ...........
10. 1994 .... ........... ........... ........... ...........
11. 1995 .... ........... ........... ........... ...........
-------------------------------------------------------------------------
12. Totals .. ........... ........... ........... ...........
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
-------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X.... ............ ............
2. 1986 .... ........... ........... ........... ........... ........... ............ ............ ............
3. 1987 .... ........... ........... ........... ........... ........... ............ ............ ............
4. 1988 .... ........... ........... ........... ........... ........... ............ ............ ............
5. 1989 .... ........... ........... ........... ........... ............ ............
6. 1990 .... ........... ........... ........... ........... N O N E ............ ............
7. 1991 .... ........... ........... ........... ........... ........... ............ ............ ............
8. 1992 .... ........... ........... ........... ........... ........... ............ ............ ............
9. 1993 .... ........... ........... ........... ........... ........... ............ ............ ............
10. 1994 .... ........... ........... ........... ........... ........... ............ ............ ............
11. 1995 .... ........... ........... ........... ........... ........... ............ ............ ............
--------------------------------------------------------------------------------------------------------------------------------
12. Totals .. X X X X X X X X X ........... ........... ............ ............ ............
--------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
-----------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... ..X X X.. ............ ...........
2. 1986 .... .......... ............ ...........
3. 1987 .... .......... ............ ...........
4. 1988 .... .......... ............ ...........
5. 1989 .... .......... ............ ...........
6. 1990 .... .......... ............ ...........
7. 1991 .... .......... ............ ...........
8. 1992 .... .......... ............ ...........
9. 1993 .... .......... ............ ...........
10. 1994 .... .......... ............ ...........
11. 1995 .... .......... ............ ...........
-----------------------------------------------------------
12. Totals .. X X X ............ ...........
-----------------------------------------------------------
</TABLE>
82
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1G - SPECIAL LIABILITY (OCEAN MARINE,
AIRCRAFT (ALL PERILS), BOILER AND MACHINERY)
($000 omitted)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9 10
in Which Expense Payments
Premiums Were --------------------------------------------------- Salvage Unallocated
Earned and Direct Net 5 6 7 8 and Loss
Losses Were and Ceded (2 - 3) Direct Direct Subrogation Expense
Incurred Assumed and Assumed Ceded and Assumed Ceded Received Payments
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
2. 1986 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
5. 1989 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
6. 1990 .... ............ ............ ............ ............ N O N E ............ ............ ............
7. 1991 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
8. 1992 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
9. 1993 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
10. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
11. 1995 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------------------
1
-----------
Years 11 12
in Which Number of
Premiums Were Total Claims
Earned and Net Paid Reported -
Losses Were (5 - 6 + 7 Direct and
Incurred - 8 + 10) Assumed
- - -----------------------------------------
<S> <C> <C>
1. Prior .... ............ ....X X X...
2. 1986 ..... ............ ....X X X...
3. 1987 ..... ............ ....X X X...
4. 1988 ..... ............ ....X X X...
5. 1989 ..... ............ ....X X X...
6. 1990 ..... ............ ....X X X...
7. 1991 ..... ............ ....X X X...
8. 1992 ..... ............ ....X X X...
9. 1993 ..... ............ ....X X X...
10. 1994 ..... ............ ....X X X...
11. 1995 ..... ............ ....X X X...
- - -----------------------------------------
12. Totals ... ............ ....X X X...
- - -----------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
------------------------------------------------------------------------------------------------------
21
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------ Salvage
13 14 15 16 17 18 19 20 and
Direct Direct Direct Direct Subrogation
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded Anticipated
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
5. 1989 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
6. 1990 .... ............ ............ ............ ............ N O N E ............ ............ ............
7. 1991 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
8. 1992 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
9. 1993 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
10. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
11. 1995 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ............ ............ ............ ............ ............ ............ ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
22 23 24
Number of
Unallocated Total Claims
Loss Net Losses Outstanding -
Expenses and Expenses Direct and
Unpaid Unpaid Assumed
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
4. 1988 ..... ............ ............ ............
5. 1989 ..... ............ ............ ............
6. 1990 ..... ............ ............ ............
7. 1991 ..... ............ ............ ............
8. 1992 ..... ............ ............ ............
9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ............
11. 1995 ..... ............ ............ ............
- - ------------------------------------------------------
12. Totals ... ............ ............ ............
- - ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money 33
-------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32 Inter-Company
Pooling
Direct Direct Loss Participation
and Assumed Ceded Net and Assumed Ceded Net Loss Expense Percentage
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
2. 1986 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
5. 1989 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
6. 1990 .... ............ ............ ............ ............ ........N O N E.......... ............ ............ ............
7. 1991 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
8. 1992 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
9. 1993 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
10. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
11. 1995 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------
Net Balance Sheet Reserves
After Discount
---------------------------
34 35
Loss
Losses Expenses
Unpaid Unpaid
- - -----------------------------------------
<S> <C> <C>
1. Prior .... ............ ............
2. 1986 ..... ............ ............
3. 1987 ..... ............ ............
4. 1988 ..... ............ ............
5. 1989 ..... ............ ............
6. 1990 ..... ............ ............
7. 1991 ..... ............ ............
8. 1992 ..... ............ ............
9. 1993 ..... ............ ............
10. 1994 ..... ............ ............
11. 1995 ..... ............ ............
- - -----------------------------------------
12. Totals ... ............ ............
- - -----------------------------------------
</TABLE>
83
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
($000 omitted)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9 10
in Which Expense Payments
Premiums Were --------------------------------------------------- Salvage Unallocated
Earned and Direct Net 5 6 7 8 and Loss
Losses Were and Ceded (2 - 3) Direct Direct Subrogation Expense
Incurred Assumed and Assumed Ceded and Assumed Ceded Received Payments
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X... ....X X X... ....X X X... ........50.. ............ ........12.. ............ ............ ............
2. 1986 .... .......403.. .......116.. .......287.. ........67.. ............ ........67.. ............ ............ ........21..
3. 1987 .... .......301.. ........44.. .......257.. ........76.. ............ ........64.. ........20.. ............ ........43..
4. 1988 .... .......102.. ........36.. ........66.. ............ ............ ........49.. ........(4). ............ .........8..
5. 1989 .... ........77.. ........25.. ........52.. ............ ............ ........14.. .........1.. ............ ........10..
6. 1990 .... ........82.. ........34.. ........48.. ............ ............ .........9.. ............ ............ .........6..
7. 1991 .... .......153.. ........96.. ........57.. ........15.. ............ ............ ............ ............ ........33..
8. 1992 .... .......220.. .......152.. ........68.. ........20.. ............ .........2.. ............ ............ .........8..
9. 1993 .... .......293.. .......184.. .......109.. .........1.. ............ .........1.. ............ ............ .........1..
10. 1994 .... .......287.. ........14.. .......273.. ............ ............ ............ ............ ............ ............
11. 1995 .... .......109.. ............ .......109.. ............ ............ .........1.. ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X... ....X X X... ....X X X... .......229.. ............ .......219.. ........17.. ............ .......130..
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------------------
1
-------------------------
Years 11 12
in Which Number of
Premiums Were Total Claims
Earned and Net Paid Reported -
Losses Were (5 - 6 + 7 Direct and
Incurred - 8 + 10) Assumed
- - -----------------------------------------
<S> <C> <C>
1. Prior .... ........62.. ....X X X...
2. 1986 ..... .......155.. ........33..
3. 1987 ..... .......163.. ........23..
4. 1988 ..... ........61.. .........1..
5. 1989 ..... ........23.. .........1..
6. 1990 ..... ........15.. .........1..
7. 1991 ..... ........48.. .........2..
8. 1992 ..... ........30.. .........9..
9. 1993 ..... .........3.. .........2..
10. 1994 ..... ............ .........1..
11. 1995 ..... .........1.. .........1..
- - -----------------------------------------
12. Totals ... .......561.. ....X X X...
- - -----------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------------------------------------------------------------
21
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------- Salvage
13 14 15 16 17 18 19 20 and
Direct Direct Direct Direct Subrogation
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded Anticipated
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
5. 1989 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
6. 1990 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
7. 1991 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
8. 1992 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
9. 1993 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
10. 1994 .... ............ ............ ........10.. ............ ............ ............ ........32.. ............ ............
11. 1995 .... ............ ............ .........1.. ............ ............ ............ ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ............ ............ ........11.. ............ ............ ............ ........32.. ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
22 23 24
Number of
Unallocated Total Claims
Loss Net Losses Outstanding -
Expenses and Expenses Direct and
Unpaid Unpaid Assumed
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
4. 1988 ..... ............ ............ ............
5. 1989 ..... ............ ............ ............
6. 1990 ..... ............ ............ ............
7. 1991 ..... ............ ............ ............
8. 1992 ..... ............ ............ ............
9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ........42.. ............
11. 1995 ..... ............ .........1.. ............
- - ------------------------------------------------------
12. Totals ... ............ ........43.. ............
- - ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money 33
-------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32 Inter-Company
Pooling
Direct Direct Loss Participation
and Assumed Ceded Net and Assumed Ceded Net Loss Expense Percentage
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
2. 1986 .... .......155.. ............ .......155.. ......38.5.. ............ ......54.0.. ............ ............ ............
3. 1987 .... .......183.. ........20.. .......163.. ......60.8.. ......45.5.. ......63.4.. ............ ............ ............
4. 1988 .... ........57.. ........(4). ........61.. ......55.9.. .....(11.1). ......92.4.. ............ ............ ............
5. 1989 .... ........24.. .........1.. ........23.. ......31.2.. .......4.0.. ......44.2.. ............ ............ ............
6. 1990 .... ........15.. ............ ........15.. ......18.3.. ............ ......31.3.. ............ ............ ............
7. 1991 .... ........48.. ............ ........48.. ......31.4.. ............ ......84.2.. ............ ............ ............
8. 1992 .... ........30.. ............ ........30.. ......13.6.. ............ ......44.1.. ............ ............ ............
9. 1993 .... .........3.. ............ .........3.. .......1.0.. ............ .......2.8.. ............ ............ ............
10. 1994 .... ........42.. ............ ........42.. ......14.6.. ............ ......15.4.. ............ ............ ............
11. 1995 .... .........2.. ............ .........2.. .......1.8.. ............ .......1.8.. ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------
Net Balance Sheet Reserves
After Discount
---------------------------
34 35
Loss
Losses Expenses
Unpaid Unpaid
- - -----------------------------------------
<S> <C> <C>
1. Prior .... ............ ............
2. 1986 ..... ............ ............
3. 1987 ..... ............ ............
4. 1988 ..... ............ ............
5. 1989 ..... ............ ............
6. 1990 ..... ............ ............
7. 1991 ..... ............ ............
8. 1992 ..... ............ ............
9. 1993 ..... ............ ............
10. 1994 ..... ........10.. ........32..
11. 1995 ..... .........1.. ............
- - -----------------------------------------
12. Totals ... ........11.. ........32..
- - -----------------------------------------
</TABLE>
84
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
($000 omitted)
- - ------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-----------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were --------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior... ..X X X.. ..X X X.. ..X X X.. ......... ......... ......... .........
2. 1986 ... ......... ......... ......... ......... ......... ......... .........
3. 1987 ... ......... ......... ......... ......... .........
4. 1988 ... ......... ......... ......... ......... .........
5. 1989 ... ......... ......... ......... ......... N O N E .........
6. 1990 ... ......... ......... ......... ......... .........
7. 1991 ... ......... ......... ......... ......... .........
8. 1992 ... ......... ......... ......... ......... .........
9. 1993 ... ......... ......... ......... ......... ......... ......... .........
10. 1994 ... ......... ......... ......... ......... ......... ......... .........
11. 1995 ... ......... ......... ......... ......... ......... ......... .........
- - ------------------------------------------------------------------------------------------------------------
12. Totals.. ..X X X.. ..X X X.. ..X X X.. ......... ......... ......... .........
- - ------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -------------------------------------------------------------------------
1
--------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- - -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ......... ......... ......... ..X X X..
2. 1986 .. ......... ......... ......... .........
3. 1987 .. ......... ......... ......... .........
4. 1988 .. ......... ......... ......... .........
5. 1989 .. ......... ......... ......... .........
6. 1990 .. ......... ......... ......... .........
7. 1991 .. ......... ......... ......... .........
8. 1992 .. ......... ......... ......... .........
9. 1993 .. ......... ......... ......... .........
10. 1994 .. ......... ......... ......... .........
11. 1995 .. ......... ......... ......... .........
- - -------------------------------------------------------------------------
12. Totals.. ......... ......... ......... ..X X X..
- - -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-----------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ........ ........ ........ ........ ........ ........ ........ ........
2. 1986 .. ........ ........ ........ ........ ........ ........ ........ ........
3. 1987 .. ........ ........ ........ ........ ........ ........
4. 1988 .. ........ ........ ........ ........ ........ ........
5. 1989 .. ........ ........ ........ ........ N O N E ........ ........
6. 1990 .. ........ ........ ........ ........ ........ ........
7. 1991 .. ........ ........ ........ ........ ........ ........
8. 1992 .. ........ ........ ........ ........ ........ ........
9. 1993 .. ........ ........ ........ ........ ........ ........ ........ ........
10. 1994 .. ........ ........ ........ ........ ........ ........ ........ ........
11. 1995 .. ........ ........ ........ ........ ........ ........ ........ ........
-------------------------------------------------------------------------------------------------------------------------
12. Totals.. ........ ........ ........ ........ ........ ........ ........ ........
-------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ......... ......... ......... .........
2. 1986 .. ......... ......... ......... .........
3. 1987 .. ......... ......... ......... .........
4. 1988 .. ......... ......... ......... .........
5. 1989 .. ......... ......... ......... .........
6. 1990 .. ......... ......... ......... .........
7. 1991 .. ......... ......... ......... .........
8. 1992 .. ......... ......... ......... .........
9. 1993 .. ......... ......... ......... .........
10. 1994 .. ......... ......... ......... .........
11. 1995 .. ......... ......... ......... .........
------------------------------------------------------------------------
12. Totals.. ......... ......... ......... .........
------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ......... .........
2. 1986 .. ......... ......... ......... ......... ......... ......... ......... .........
3. 1987 .. ......... ......... ......... ......... ......... .........
4. 1988 .. ......... ......... ......... ......... ......... .........
5. 1989 .. ......... ......... ......... ......... N 0 N E ......... .........
6. 1990 .. ......... ......... ......... ......... ......... .........
7. 1991 .. ......... ......... ......... ......... ......... .........
8. 1992 .. ......... ......... ......... ......... ......... .........
9. 1993 .. ......... ......... ......... ......... ......... ......... ......... .........
10. 1994 .. ......... ......... ......... ......... ......... ......... ......... .........
11. 1995 .. ......... ......... ......... ......... ......... ......... ......... .........
- - ------------------------------------------------------------------------------------------------------------------------------
12. Totals.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ......... .........
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------
Net Balance Sheet Reserves
33 After Discount
-----------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
----------------------------------------------
<S> <C> <C> <C>
1. Prior.. ..X X X.. ......... .........
2. 1986 .. ......... ......... .........
3. 1987 .. ......... ......... .........
4. 1988 .. ......... ......... .........
5. 1989 .. ......... ......... .........
6. 1990 .. ......... ......... .........
7. 1991 .. ......... ......... .........
8. 1992 .. ......... ......... .........
9. 1993 .. ......... ......... .........
10. 1994 .. ......... ......... .........
11. 1995 .. ......... ......... .........
- - -----------------------------------------------------------
12. Totals.. ..X X X.. ......... .........
- - -----------------------------------------------------------
</TABLE>
85
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
($000 omitted)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-----------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were --------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ..X X X.... ..X X X.... ..X X X.... .........34 .........10 .........2 .........3
2. 1994 .. .....1,451. .......437. .....1,014. ......5,509 ......4,639 .......182 .........2
3. 1995 .. .....1,584. .......354. .....1,230. ........109 .........49 ........21 .........0
------------------------------------------------------------------------------------------------------------
4. Totals. ..X X X.... ..X X X.... ..X X X.... ......5,652 ......4,698 .......205 .........5
------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------------------
1
-------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ........... ..........4 .........27 ..X X X....
2. 1994 .. ..........4 ........106 ......1,156 ..X X X....
3. 1995 .. ........... .........19 ........100 ..X X X....
-------------------------------------------------------------------------------
4. Totals. ..........4 ........129 ......1,283 ..X X X....
-------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-----------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-----------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ........19 .......... .........7 ......... .........1 ......... ......... .........
2. 1994 .. .....1,596 .....1,338 .......135 ......... ........25 ......... ........1 .........
3. 1995 .. ........83 .........5 ........31 ......... .........9 ......... ........2 .........
- - -----------------------------------------------------------------------------------------------------------------------
4. Totals. .....1,698 .....1,343 .......173 ......... ........35 ......... ........3 .........
- - -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- - ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ........... ........... ........27 ..........
2. 1994 .. ........... ........... .......419 ........39
3. 1995 .. ........... ........... .......120 .........9
- - ----------------------------------------------------------------------
4. Totals. ........... ........... .......566 ........48
---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
- - --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ..X X X.... ..X X X.... ..X X X.... ..X X X..... ..X X X..... ..X X X..... .......... ..........
2. 1994 .. .....7,554. .....5,979. .....1,575. ......520.6. ....1,368.2. ......155.3. .......... ..........
3. 1995 .. .......274. ........54. .......220. .......17.3. .......15.3. .......17.9. .......... ..........
- - --------------------------------------------------------------------------------------------------------------------------
4. Totals. ..X X X.... ..X X X.... ..X X X.... ..X X X..... ..X X X..... ..X X X..... .......... ..........
- - --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - --------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
----------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
- - -------------------------------------------------------
<S> <C> <C> <C>
1. Prior.. ..X X X.... ....... 26 .........1
2. 1994 .. ........... ...... 393 ........26
3. 1995 .. ........... .......109 ........11
- - -------------------------------------------------------
4. Totals. ..X X X.... .......528 ........38
- - -------------------------------------------------------
</TABLE>
86
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
($000 omitted)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were --------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ..X X X.... ..X X X.... ..X X X.... ....(1,470) .......... ........18 .........1
2. 1994 .. ...142,700. .......329. ...142,371. ...109,110. .....2,245 ........782 ..........
3. 1995 .. ...179,952. .......415. ...179,537. ...131,970. .....2,183 ........856 ..........
- - -----------------------------------------------------------------------------------------------------------
4. Totals. ..X X X.... ..X X X.... ..X X X.... ...239,610. .....4,428 ......1,656 .........1
- - ------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------------------
1
-------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- - ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. .......1,668 .......(177) ....(1,630) ..X X X.....
2. 1994 .. ......30,582 .....16,155 ...123,802 .....73,750.
3. 1995 .. ......21,216 .....16,171 ...146,814 .....85,440.
- - ---------------------------------------------------------------------------
4. Totals. ......53,466 .....32,149 ...268,986 ..X X X.....
- - ---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
---------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
---------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
- - -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ......(822) ........... ........... ........... ........... ........... ........... ...........
2. 1994 .. ....(1,506) .........3. .......170. ........... .........6. ........... ........14. ...........
3. 1995 .. .......560 ........... .....3,176. ........... .......223. ........... ........37. ...........
- - ------------------------------------------------------------------------------------------------------------------------------
4. Totals. ....(1,768) .........3. .....3,346. ........... .......229. ........... ........51. ...........
- - ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
- - ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ........840 ............ ......(822) .......32.
2. 1994 .. ......1,582 .........26. ....(1,293) ......109.
3. 1995 .. .....18,428 ......1,709. .... 5,705. ...10,694.
- - ---------------------------------------------------------------------
4. Totals. .....20,850 ......1,735. .....3,590. ...10,835.
- - ---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
----------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ..X X X.... ..X X X.... ..X X X.... ..X X X..... ..X X X..... ..X X X..... ............ ............
2. 1994 .. ...124,757. .....2,248. ...122,509. .......87.4. ......683.3. .......86.0. ............ ............
3. 1995 .. ...154,702. .....2,183. ...152,519. .......86.0. ......526.0. .......85.0. ............ ............
- - ------------------------------------------------------------------------------------------------------------------------------
4. Totals. ..X X X.... ..X X X.... ..X X X.... ..X X X..... ..X X X..... ..X X X..... ............ ............
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. Prior.. ..X X X..... .......(822) ...........
2. 1994 .. ............ .....(1,339) ....... 46.
3. 1995 .. ............ ......3,736. .....1,969.
-----------------------------------------------------------
4. Totals. ..X X X..... ......1,575. .....2,015.
-----------------------------------------------------------
</TABLE>
87
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1K - FIDELITY/SURETY
($000 omitted)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
---------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were -----------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ ..............
2. 1994 .. ............ ............ ............ ............ ............ ............ ..............
3. 1995 .. ............ ............ ............ ............ N O N E ..............
- - -----------------------------------------------------------------------------------------------------------------
4. Totals.. ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ ..............
----------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------
1
------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ............ ............ ............ ...X X X....
2. 1994 .. ............ ............ ............ ...X X X...
3. 1995 .. ............ ............ ............ ...X X X...
- - -----------------------------------------------------------------------
4. Totals.. ............ ............ ............ ...X X X....
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
----------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
----------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ............ ............ ............ ............ ............ ............ ............ ............
2. 1994 .. ............ ............ ............ ............ ............ ............ ............ ............
3. 1995 .. ............ ............ ............ ............ N O N E ............ ............
- - ------------------------------------------------------------------------------------------------------------------------------------
4. Totals.. ............ ............ ............ ............ ............ ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ............ ............ ............ ............
2. 1994 .. ............ ............ ............ ............
3. 1995 .. ............ ............ ............ ............
- - ------------------------------------------------------------------------
4. Totals.. ............ ............ ............ ............
-----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
----------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ...X X X.... ...X X X.... ...X X X... ...X X X.... ...X X X.... ...X X X.... ............ ............
2. 1994 .. ............ ............ ............ ............ ............ ............ ............ ............
3. 1995 .. ............ ............ ............ ............ N O N E ............ ............
- - ------------------------------------------------------------------------------------------------------------------------------
4. Totals.. ...X X X.... ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
--------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
- - -----------------------------------------------------------
<S> <C> <C> <C>
1. Prior.. ...X X X.... ............ ............
2. 1994 .. ............ ............ ............
3. 1995 .. ............ ............ ............
- - -----------------------------------------------------------
4. Totals.. ...X X X.... ............ ............
- - -----------------------------------------------------------
</TABLE>
88
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
($000 omitted)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
---------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were -----------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ ............
2. 1994 .. ............ ............ ............ ............ ............
3. 1995 .. ............ ............ ............ ............ N O N E ............
- - ---------------------------------------------------------------------- -----------------
4. Totals.. ...X X X.... ...X X X.... ...X X X.... ............ ............
----------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------
1
------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
----------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior.. ............ ............ ............ ...X X X....
2. 1994 .. ............ ............ ............ ...X X X....
3. 1995 .. ............ ............ ............ ...X X X....
- - -----------------------------------------------------------------------
4. Totals.. ............ ............ ............ ...X X X....
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
----------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
----------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ............ ............ ............ ............ ............ ............ ............ ............
2. 1994 .. ............ ............ ............ ............ ............ ............
3. 1995 .. ............ ............ ............ ............ N O N E ............ ............
- - ------------------------------------------------------------------------- ---------------------------------
4. Totals.. ............ ............ ............ ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ............ ............ ............ ............
2. 1994 .. ............ ............ ............ ............
3. 1995 .. ............ ............ ............ ............
- - ------------------------------------------------------------------------
4. Totals.. ............ ............ ............ ............
-----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
---------------------------------------------------------------------------------------------------------------------------
<S>
1. Prior.. ...X X X.... ...X X X.... ...X X X... ...X X X.... ...X X X.... ...X X X.... ............ ............
2. 1994 .. ............ ............ ............ ............ ............ ............
3. 1995 .. ............ ............ ............ ............ N O N E ............ ............
- - ------------------------------------------------------------------ --------------------------------
4. Totals.. ...X X X.... ...X X X.... ...X X X.... ...X X X.... ............ ............
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
--------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
- - -----------------------------------------------------------
<S> <C> <C> <C>
1. Prior.. ...X X X.... ............ ............
2. 1994 .. ............ ............ ............
3. 1995 .. ............ ............ ............
- - -----------------------------------------------------------
4. Totals.. ...X X X.... ............ ............
- - -----------------------------------------------------------
</TABLE>
89
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1M - INTERNATIONAL
<TABLE>
<CAPTION>
($000 omitted)
----------------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
--------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9
in Which Expense Payments
Premiums Were ----------------------------------------------------------- Salvage
Earned and Direct Net 5 6 7 8 and
Losses Were and Ceded (2 - 3) Direct Direct Subrogation
Incurred Assumed and Assumed Ceded and Assumed Ceded Received
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X.... ....X X X.... ....X X X.... .............. ............. .............. ............... ..............
2. 1986 .... ............. ............. ............. .............. ............. .............. ............... ..............
3. 1987 .... ............. ............. ............. .............. ............. .............. ............... ..............
4. 1988 .... ............. ............. ............. .............. ............. .............. ............... ..............
5. 1989 .... ............. ............. ............. .............. ............. .............. ............... ..............
6. 1990 .... ............. ............. ............. ...N O N E...... .............. ............... ..............
7. 1991 .... ............. ............. ............. .............. ............. .............. ............... ..............
8. 1992 .... ............. ............. ............. .............. ............. .............. ............... ..............
9. 1993 .... ............. ............. ............. .............. ............. .............. ............... ..............
10. 1994 .... ............. ............. ............. .............. ............. .............. ............... ..............
11. 1995 .... ............. ............. ............. .............. ............. .............. ............... ..............
----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X.... ....X X X.... ....X X X.... .............. ............. .............. ............... ..............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
1
-----------------------------
Years 10 11 12
in Which Number of
Premiums Were Unallocated Total Claims
Earned and Loss Net Paid Reported -
Losses Were Expense (5 - 6 + 7 Direct and
Incurred Payments - 8 + 10) Assumed
-----------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... .............. .............. ....X X X.....
2. 1986 .... .............. .............. ....X X X.....
3. 1987 .... .............. .............. ....X X X.....
4. 1988 .... .............. .............. ....X X X.....
5. 1989 .... .............. .............. ....X X X.....
6. 1990 .... .............. .............. ....X X X.....
7. 1991 .... .............. .............. ....X X X.....
8. 1992 .... .............. .............. ....X X X.....
9. 1993 .... .............. .............. ....X X X.....
10. 1994 .... .............. .............. ....X X X.....
11. 1995 .... .............. .............. ....X X X.....
-----------------------------------------------------------
12. Totals .. .............. .............. ....X X X.....
-----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
--------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ............. ............. ............. .............. .............. .............. .............. ..............
2. 1986 .... ............. ............. ............. .............. .............. .............. .............. ..............
3. 1987 .... ............. ............. ............. .............. .............. .............. .............. ..............
4. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
5. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
6. 1990 .... ............. ............. ............. ...N O N E....... .............. .............. ..............
7. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
8. 1992 .... ............. ............. ............. .............. .............. .............. .............. ..............
9. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
10. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
11. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ............. ............. ............. .............. .............. .............. .............. ..............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... .............. .............. .............. .............
2. 1986 .... .............. .............. .............. .............
3. 1987 .... .............. .............. .............. .............
4. 1988 .... .............. .............. .............. .............
5. 1989 .... .............. .............. .............. .............
6. 1990 .... .............. .............. .............. .............
7. 1991 .... .............. .............. .............. .............
8. 1992 .... .............. .............. .............. .............
9. 1993 .... .............. .............. .............. .............
10. 1994 .... .............. .............. .............. .............
11. 1995 .... .............. .............. .............. .............
-------------------------------------------------------------------------
12. Totals .. .............. .............. .............. .............
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. ..............
2. 1986 .... ............. ............. ............. .............. .............. .............. .............. ..............
3. 1987 .... ............. ............. ............. .............. .............. .............. .............. ..............
4. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
5. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
6. 1990 .... ............. ............. ............. ...N O N E....... .............. .............. ..............
7. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
8. 1992 .... ............. ............. ............. .............. .............. .............. .............. ..............
9. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
10. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
11. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. ..............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... ....X X X..... .............. ..............
2. 1986 .... .............. .............. ..............
3. 1987 .... .............. .............. ..............
4. 1988 .... .............. .............. ..............
5. 1989 .... .............. .............. ..............
6. 1990 .... .............. .............. ..............
7. 1991 .... .............. .............. ..............
8. 1992 .... .............. .............. ..............
9. 1993 .... .............. .............. ..............
10. 1994 .... .............. .............. ..............
11. 1995 .... .............. .............. ..............
------------- -------------- -------------- --------------
12. Totals .. ....X X X..... .............. ..............
------------- -------------- -------------- --------------
</TABLE>
90
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1N - REINSURANCE A
<TABLE>
<CAPTION>
($000 omitted)
---------------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9
in Which Expense Payments
Premiums Were ----------------------------------------------------------- Salvage
Earned and Direct Net 5 6 7 8 and
Losses Were and Ceded (2 - 3) Direct Direct Subrogation
Incurred Assumed and Assumed Ceded and Assumed Ceded Received
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
2. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
3. 1990 .... ............. ............. ............. .............. .............. .............. .............. ..............
4. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
5. 1992 .... ............. ............. ............. .............. N O N E .............. ..............
6. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
7. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
8. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
----------------------------------------------------------------------------------------------------------------------------------
9. Totals .. ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. ..............
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
1
------------------------------
Years 10 11 12
in Which Number of
Premiums Were Unallocated Total Claims
Earned and Loss Net Paid Reported -
Losses Were Expense (5 - 6 + 7 Direct and
Incurred Payments - 8 + 10) Assumed
-----------------------------------------------------------
<S> <C> <C> <C>
1. 1988 .... .............. .............. ....X X X.....
2. 1989 .... .............. .............. ....X X X.....
3. 1990 .... .............. .............. ....X X X.....
4. 1991 .... .............. .............. ....X X X.....
5. 1992 .... .............. .............. ....X X X.....
6. 1993 .... .............. .............. ....X X X.....
7. 1994 .... .............. .............. ....X X X.....
8. 1995 .... .............. .............. ....X X X.....
-----------------------------------------------------------
9. Totals .. .............. .............. ....X X X.....
-----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
--------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
5. 1992 .... ............. ............. ............. .............. N O N E .............. .............
6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
9. Totals .. ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 .... .............. .............. .............. ....X X X....
2. 1989 .... .............. .............. .............. ....X X X....
3. 1990 .... .............. .............. .............. ....X X X....
4. 1991 .... .............. .............. .............. ....X X X....
5. 1992 .... .............. .............. .............. ....X X X....
6. 1993 .... .............. .............. .............. ....X X X....
7. 1994 .... .............. .............. .............. ....X X X....
8. 1995 .... .............. .............. .............. ....X X X....
-------------------------------------------------------------------------
9. Totals .. .............. .............. .............. ....X X X....
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
5. 1992 .... ............. ............. ............. .............. N O N E .............. .............
6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
9. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. 1988 .... .............. .............. ..............
2. 1989 .... .............. .............. ..............
3. 1990 .... .............. .............. ..............
4. 1991 .... .............. .............. ..............
5. 1992 .... .............. .............. ..............
6. 1993 .... .............. .............. ..............
7. 1994 .... .............. .............. ..............
8. 1995 .... .............. .............. ..............
-----------------------------------------------------------
9. Totals .. ....X X X..... .............. ..............
-----------------------------------------------------------
</TABLE>
91
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1O - REINSURANCE B
<TABLE>
<CAPTION>
($000 omitted)
---------------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9
in Which Expense Payments
Premiums Were ----------------------------------------------------------- Salvage
Earned and Direct Net 5 6 7 8 and
Losses Were and Ceded (2 - 3) Direct Direct Subrogation
Incurred Assumed and Assumed Ceded and Assumed Ceded Received
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
2. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
3. 1990 .... ............. ............. ............. .............. .............. .............. .............. ..............
4. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
5. 1992 .... ............. ............. ............. N O N E .............. .............. ..............
6. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
7. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
8. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
----------------------------------------------------------------------------------------------------------------------------------
9. Totals .. ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. ..............
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
1
-------------------------------
Years 10 11 12
in Which Number of
Premiums Were Unallocated Total Claims
Earned and Loss Net Paid Reported -
Losses Were Expense (5 - 6 + 7 Direct and
Incurred Payments - 8 + 10) Assumed
-----------------------------------------------------------
<S> <C> <C> <C>
1. 1988 .... .............. .............. ....X X X.....
2. 1989 .... .............. .............. ....X X X.....
3. 1990 .... .............. .............. ....X X X.....
4. 1991 .... .............. .............. ....X X X.....
5. 1992 .... ............. .............. ....X X X.....
6. 1993 .... .............. .............. ....X X X.....
7. 1994 .... .............. .............. ....X X X.....
8. 1995 .... .............. .............. ....X X X.....
-----------------------------------------------------------
9. Totals .. .............. .............. ....X X X.....
-----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
--------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
5. 1992 .... ............. ............. ............. N O N E .............. .............. .............
6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
9. Totals .. ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 .... .............. .............. .............. ....X X X....
2. 1989 .... .............. .............. .............. ....X X X....
3. 1990 .... .............. .............. .............. ....X X X....
4. 1991 .... .............. .............. .............. ....X X X....
5. 1992 .... .............. .............. .............. ....X X X....
6. 1993 .... .............. .............. .............. ....X X X....
7. 1994 .... .............. .............. .............. ....X X X....
8. 1995 .... .............. .............. .............. ....X X X....
-------------------------------------------------------------------------
9. Totals .. .............. .............. .............. ....X X X....
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
5. 1992 .... ............. ............. ............. .............. N O N E .............. .............
6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
9. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. 1988 .... .............. .............. ..............
2. 1989 .... .............. .............. ..............
3. 1990 .... .............. .............. ..............
4. 1991 .... .............. .............. ..............
5. 1992 .... .............. .............. ..............
6. 1993 .... .............. .............. ..............
7. 1994 .... .............. .............. ..............
8. 1995 .... .............. .............. ..............
-----------------------------------------------------------
9. Totals .. ....X X X..... .............. ..............
-----------------------------------------------------------
</TABLE>
92
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1P - REINSURANCE A
<TABLE>
<CAPTION>
($000 omitted)
---------------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9
in Which Expense Payments
Premiums Were ----------------------------------------------------------- Salvage
Earned and Direct Net 5 6 7 8 and
Losses Were and Ceded (2 - 3) Direct Direct Subrogation
Incurred Assumed and Assumed Ceded and Assumed Ceded Received
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
2. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
3. 1990 .... ............. ............. ............. .............. .............. .............. .............. ..............
4. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
5. 1992 .... ............. ............. ............. .............. N O N E .............. ..............
6. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
7. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
8. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
----------------------------------------------------------------------------------------------------------------------------------
9. Totals .. ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. ..............
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
1
-------------------------------
Years 10 11 12
in Which Number of
Premiums Were Unallocated Total Claims
Earned and Loss Net Paid Reported -
Losses Were Expense (5 - 6 + 7 Direct and
Incurred Payments - 8 + 10) Assumed
-----------------------------------------------------------
<S> <C> <C> <C>
1. 1988 .... .............. .............. ....X X X.....
2. 1989 .... .............. .............. ....X X X.....
3. 1990 .... .............. .............. ....X X X.....
4. 1991 .... .............. .............. ....X X X.....
5. 1992 .... .............. .............. ....X X X.....
6. 1993 .... .............. .............. ....X X X.....
7. 1994 .... .............. .............. ....X X X.....
8. 1995 .... .............. .............. ....X X X.....
-----------------------------------------------------------
9. Totals .. .............. .............. ....X X X.....
-----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
--------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
--------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
5. 1992 .... ............. ............. ............. .............. N O N E ............... .............
6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
9. Totals .. ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 .... .............. .............. .............. ....X X X....
2. 1989 .... .............. .............. .............. ....X X X....
3. 1990 .... .............. .............. .............. ....X X X....
4. 1991 .... .............. .............. .............. ....X X X....
5. 1992 .... .............. .............. .............. ....X X X....
6. 1993 .... .............. .............. .............. ....X X X....
7. 1994 .... .............. .............. .............. ....X X X....
8. 1995 .... .............. .............. .............. ....X X X....
-------------------------------------------------------------------------
9. Totals .. .............. .............. .............. ....X X X....
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
5. 1992 .... ............. ............. ............. .............. N O N E .............. .............
6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
9. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. 1988 .... .............. .............. ..............
2. 1989 .... .............. .............. ..............
3. 1990 .... .............. .............. ..............
4. 1991 .... .............. .............. ..............
5. 1992 .... .............. .............. ..............
6. 1993 .... .............. .............. ..............
7. 1994 .... .............. .............. ..............
8. 1995 .... .............. .............. ..............
-----------------------------------------------------------
9. Totals .. ....X X X..... .............. ..............
-----------------------------------------------------------
</TABLE>
93
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1Q - REINSURANCE D
<TABLE>
<CAPTION>
($000 omitted)
-------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-----------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were -----------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. .............
2. 1986 .... ............. ............. ............. ............. ............. ............. .............
3. 1987 .... ............. ............. ............. ............. ............. ............. .............
-------------------------------------------------------------------------------------------------------------------
4. Totals .. ....X X X.... ....X X X.... ....X X X.... ............. N O N E .............
-------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------
1
--------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- - --------------------------------------------------------------------------
1. Prior ... .............. .............. .............. ....X X X....
2. 1986 .... .............. .............. .............. ....X X X....
3. 1987 .... .............. .............. .............. ....X X X....
- - --------------------------------------------------------------------------
4. Totals .. .............. .............. .............. ....X X X....
- - --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - ---------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ............. ............. ............. ............. ............. ............. ............. ............
2. 1986 .... ............. ............. ............. ............. ............. ............. ............. ............
3. 1987 .... ............. ............. ............. ............. ............. ............. ............. ............
--------------------------------------------------------------------------------------------------------------------------------
4. Totals .. ............. ............. ............. ............. N O N E ............. .............
--------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ... .............. .............. .............. ....X X X....
2. 1986 .... .............. .............. .............. ....X X X....
3. 1987 .... .............. .............. .............. ....X X X....
-------------------------------------------------------------------------
4. Totals .. .............. .............. .............. ....X X X....
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
2. 1986 .... ............. ............. ............. ............. ............. ............. ............. .............
3. 1987 .... ............. ............. ............. ............. ............. ............. ............. ............
--------------------------------------------------------------------------------------------------------------------------------
4. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X..... N O N E .............. ............
--------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------
Net Balance Sheet Reserves
33 After Discount
------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. Prior ... ....X X X.... ............. .............
2. 1986 .... ............. ............. .............
3. 1987 .... ............. ............. .............
------------- -------------- ------------- -------------
4. Totals .. ....X X X..... ............. .............
------------- -------------- ------------- -------------
</TABLE>
94
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
($000 omitted)
---------------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
-------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9
in Which Expense Payments
Premiums Were ----------------------------------------------------------- Salvage
Earned and Direct Net 5 6 7 8 and
Losses Were and Ceded (2 - 3) Direct Direct Subrogation
Incurred Assumed and Assumed Ceded and Assumed Ceded Received
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. .............
2. 1986..... ............. ............. ............. .............. .............. .............. .............. .............
3. 1987..... ............. ............. ............. .............. N O N E .............. .............
4. 1988..... ............. ............. ............. .............. .............. .............. .............. .............
5. 1989..... ............. ............. ............. .............. .............. .............. .............. .............
6. 1990..... ............. ............. ............ .............. .............. .............. .............. .............
7. 1991..... ............. ............. ............. .............. .............. .............. .............. .............
8. 1992..... ............. ............. ............. .............. .............. .............. .............. .............
9. 1993..... ............. ............. ............. .............. .............. .............. .............. .............
10. 1994..... ............. ............. ............. .............. .............. .............. .............. .............
11. 1995..... ............. ............. ............. .............. .............. .............. .............. .............
------------- ------------- ------------- ---------------------------- -------------- -------------- -------------- -------------
12. Totals... ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. .............
------------- ------------- ------------- ---------------------------- -------------- -------------- -------------- -------------
<CAPTION>
----------------------------------------------------------
1
Years 10 11 12
in Which Number of
Premiums Were Unallocated Total Claims
Earned and Loss Net Paid Reported -
Losses Were Expense (5 - 6 + 7 Direct and
Incurred Payments - 8 + 10) Assumed
----------------------------------------------------------
<S> <C> <C> <C>
1. Prior.... .............. .............. ....X X X.....
2. 1986..... .............. .............. ..............
3. 1987..... .............. .............. ..............
4. 1988..... .............. .............. ..............
5. 1989..... .............. .............. ..............
6. 1990..... .............. .............. ..............
7. 1991..... .............. .............. ..............
8. 1992..... .............. .............. ..............
9. 1993..... .............. .............. ..............
10. 1994..... .............. .............. ..............
11. 1995..... .............. .............. ..............
----------------------------------------------------------
12. Totals... .............. .............. ....X X X.....
----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
-------------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ............. ............. ............. .............. .............. .............. .............. .............
2. 1986..... ............. ............. ............. .............. .............. .............. .............. .............
3. 1987..... ............. ............. ............. .............. .............. .............. .............. .............
4. 1988..... ............. ............. ............. .............. .............. .............. .............. .............
5. 1989..... ............. ............. ............. .............. .............. .............. .............. .............
6. 1990..... ............. ............. ............. .............. .............. .............. .............. .............
7. 1991..... ............. ............. ............. .............. N O N E .............. .............
8. 1992..... ............. ............. ............. .............. .............. .............. .............. .............
9. 1993..... ............. ............. ............. .............. .............. .............. .............. .............
10. 1994..... ............. ............. ............. .............. .............. .............. .............. .............
11. 1995..... ............. ............. ............. .............. .............. .............. .............. .............
---------------------------------------------------------------------------------------------------------------------------------
12. Totals... ............. ............. ............. .............. .............. .............. .............. .............
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.... .............. .............. .............. .............
2. 1986..... .............. .............. .............. .............
3. 1987..... .............. .............. .............. .............
4. 1988..... .............. .............. .............. .............
5. 1989..... .............. .............. .............. .............
6. 1990..... .............. .............. .............. .............
7. 1991..... .............. .............. .............. .............
8. 1992..... .............. .............. .............. .............
9. 1993..... .............. .............. .............. .............
10. 1994..... .............. .............. .............. .............
11. 1995..... .............. .............. .............. .............
------------------------------------------------------------------------
12. Totals... .............. .............. .............. .............
------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
--------------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
2. 1986..... ............. ............. ............. .............. .............. .............. .............. .............
3. 1987..... ............. ............. ............. .............. .............. .............. .............. .............
4. 1988..... ............. ............. ............. .............. .............. .............. .............. .............
5. 1989..... ............. ............. ............. .............. .............. .............. .............. .............
6. 1990..... ............. ............. ............. .............. N O N E .............. .............
7. 1991..... ............. ............. ............. .............. .............. .............. .............. .............
8. 1992..... ............. ............. ............. .............. .............. .............. .............. .............
9. 1993..... ............. ............. ............. .............. .............. .............. .............. .............
10. 1994..... ............. ............. ............. .............. .............. .............. .............. .............
11. 1995..... ............. ............. ............. .............. .............. .............. .............. .............
----------------------------------------------------------------------------------------------------------------------------------
12. Totals... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
Net Balance Sheet Reserves
33 After Discount
------------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....X X X..... .............. ..............
2. 1986 .............. .............. ..............
3. 1987 .............. .............. ..............
4. 1988 .............. .............. ..............
5. 1989 .............. .............. ..............
6. 1990 .............. .............. ..............
7. 1991 .............. .............. ..............
8. 1992 .............. .............. ..............
9. 1993 .............. .............. ..............
10. 1994 .............. .............. ..............
11. 1995 .............. .............. ..............
-----------------------------------------------------------
12. Totals ....X X X..... .............. ..............
-----------------------------------------------------------
</TABLE>
95
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY
AND ITS AFFILIATED COMPANIES
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
($000 omitted)
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
----------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss
in Which Expense Payments
Premiums Were --------------------------------------------------------
Earned and Direct Net 5 6 7 8
Losses Were and Ceded (2 - 3) Direct Direct
Incurred Assumed and Assumed Ceded and Assumed Ceded
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ..X X X.. ..X X X.. ..X X X.. ......... .......... .......... .........
2. 1986 .. ......... ......... ......... ......... .......... .......... .........
3. 1987 .. ......... ......... ......... ......... .......... .......... .........
4. 1988 .. ......... ......... ......... ......... .......... .......... .........
5. 1989 .. ......... ......... ......... ......... N O N E .........
6. 1990 .. ......... ......... ......... ......... .......... .......... .........
7. 1991 .. ......... ......... ......... ......... .......... .......... .........
8. 1992 .. ......... ......... ......... ......... .......... .......... .........
9. 1993 .. ......... ......... ......... ......... .......... .......... .........
10. 1994 .. ......... ......... ......... ......... .......... .......... .........
11. 1995 .. ......... ......... ......... ......... ......... .......... .........
- - ------------------------------------------------------------------------------------------------------------
12. Totals. ..X X X.. ..X X X.. ..X X X.. ......... ......... ......... .........
- - ------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -------------------------------------------------------------------------
1
--------------------------------------------
Years 9 10 11 12
in Which Number of
Premiums Were Salvage Unallocated Total Claims
Earned and and Loss Net Paid Reported -
Losses Were Subrogation Expense (5 - 6 + 7 Direct and
Incurred Received Payments - 8 + 10) Assumed
- - -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ......... ......... ......... ..X X X..
2. 1986 .. ......... ......... ......... .........
3. 1987 .. ......... ......... ......... .........
4. 1988 .. ......... ......... ......... .........
5. 1989 .. ......... ......... ......... .........
6. 1990 .. ......... ......... ......... .........
7. 1991 .. ......... ......... ......... .........
8. 1992 .. ......... ......... ......... .........
9. 1993 .. ......... ......... ......... .........
10. 1994 .. ......... ......... ......... .........
11. 1995 .. ......... ......... ......... .........
- - -------------------------------------------------------------------------
12. Totals. ......... ......... ......... ..X X X..
- - -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
------------------------------------------------------------------------------------------------------------
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------------
13 14 15 16 17 18 19 20
Direct Direct Direct Direct
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ........ .......... .......... .......... ........... .......... .......... .............
2. 1986 .. ........ .......... .......... .......... ........... .......... .......... .............
3. 1987 .. ........ .......... .......... .......... ........... .......... .......... .............
4. 1988 .. ........ .......... .......... .......... ........... .......... .......... .............
5. 1989 .. ........ .......... .......... .......... ........... .......... .......... .............
6. 1990 .. ........ .......... .......... .......... ..N O N E.. .......... .............
7. 1991 .. ........ .......... .......... .......... ........... .......... .......... .............
8. 1992 .. ........ .......... .......... .......... ........... .......... .......... .............
9. 1993 .. ........ .......... .......... .......... ........... .......... .......... .............
10. 1994 .. ........ .......... .......... .......... ........... .......... .......... .............
11. 1995 .. ........ .......... .......... .......... .......... .......... .......... .............
-------------------------------------------------------------------------------------------------------------------------
12. Totals. ........ .......... .......... .......... .......... .......... ........... .............
-------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
21 22 23 24
Number of
Salvage Unallocated Total Claims
and Loss Net Losses Outstanding -
Subrogation Expenses and Expenses Direct and
Anticipated Unpaid Unpaid Assumed
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior.. ......... ......... ......... .........
2. 1986 .. ......... ......... ......... .........
3. 1987 .. ......... ......... ......... .........
4. 1988 .. ......... ......... ......... .........
5. 1989 .. ......... ......... ......... .........
6. 1990 .. ......... ......... ......... .........
7. 1991 .. ......... ......... ......... .........
8. 1992 .. ......... ......... ......... .........
9. 1993 .. ......... ......... ......... .........
10. 1994 .. ......... ......... ......... .........
11. 1995 .. ......... ......... ......... .........
------------------------------------------------------------------------
12. Totals.. ......... ......... ......... .........
------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money
---------------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32
Direct Direct Loss
and Assumed Ceded Net and Assumed Ceded Net Loss Expense
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X... ............ .........
2. 1986 .. ......... ......... ......... ......... ......... .......... ............ .........
3. 1987 .. ......... ......... ......... ......... ......... .......... ............ .........
4. 1988 .. ......... ......... ......... ......... ......... .......... ............ .........
5. 1989 .. ......... ......... ......... ......... ......... .......... ............ .........
6. 1990 .. ......... ......... ......... ......... ......... .......... ............ .........
7. 1991 .. ......... ......... ......... ......... N O N E ............ .........
8. 1992 .. ......... ......... ......... ......... ......... .......... ............ .........
9. 1993 .. ......... ......... ......... ......... ......... .......... ............ .........
10. 1994 .. ......... ......... ......... ......... ......... .......... ............ .........
11. 1995 .. ......... ......... ......... ......... ......... .......... ............ .........
- - ------------------------------------------------------------------------------------------------------------------------------
12. Totals. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X.. ..X X X... ............ .........
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------
Net Balance Sheet Reserves
33 After Discount
-----------------------------
Inter-Company 34 35
Pooling Loss
Participation Losses Expenses
Percentage Unpaid Unpaid
-----------------------------------------------
<S> <C> <C> <C>
1. Prior.. ..X X X.. ......... .........
2. 1986 .. ......... ......... .........
3. 1987 .. ......... ......... .........
4. 1988 .. ......... ......... .........
5. 1989 .. ......... ......... .........
6. 1990 .. ......... ......... .........
7. 1991 .. ......... ......... .........
8. 1992 .. ......... ......... .........
9. 1993 .. ......... ......... .........
10. 1994 .. ......... ......... .........
11. 1995 .. ......... ......... .........
- - --------------------------------------------------------------
12. Totals. ..X X X.. ......... .........
- - --------------------------------------------------------------
</TABLE>
96
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
($000 omitted)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 Premiums Earned Loss and Loss Expense Payments
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 Loss Payments Allocated Loss 9 10
in Which Expense Payments
Premiums Were --------------------------------------------------- Salvage Unallocated
Earned and Direct Net 5 6 7 8 and Loss
Losses Were and Ceded (2 - 3) Direct Direct Subrogation Expense
Incurred Assumed and Assumed Ceded and Assumed Ceded Received Payments
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
2. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1995 .... ............ ............ ............ ............ ........N O N E.......... ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
4. Totals .. ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------------------
1
-------------
Years 11 12
in Which Number of
Premiums Were Total Claims
Earned and Net Paid Reported -
Losses Were (5 - 6 + 7 Direct and
Incurred - 8 + 10) Assumed
- - -----------------------------------------
<S> <C> <C>
1. Prior .... ............ ....X X X...
2. 1994 ..... ............ ....X X X...
3. 1995 ..... ............ ....X X X...
- - -----------------------------------------
4. Totals ... ............ ....X X X...
- - -----------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
-------------------------------------------------------------------------------------------------------
21
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
------------------------------------------------------------------------------------------------------- Salvage
13 14 15 16 17 18 19 20 and
Direct Direct Direct Direct Subrogation
and Assumed Ceded and Assumed Ceded and Assumed Ceded and Assumed Ceded Anticipated
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1995 .... ............ ............ ............ ............ ........N O N E.......... ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
4. Totals .. ............ ............ ............ ............ ............ ............ ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
22 23 24
Number of
Unallocated Total Claims
Loss Net Losses Outstanding -
Expenses and Expenses Direct and
Unpaid Unpaid Assumed
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ............ ............ ............
2. 1994 ..... ............ ............ ............
3. 1995 ..... ............ ............ ............
- - ------------------------------------------------------
4. Totals ... ............ ............ ............
- - ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money 33
-------------------------------------------------------------------------------------------------------
25 26 27 28 29 30 31 32 Inter-Company
Pooling
Direct Direct Loss Participation
and Assumed Ceded Net and Assumed Ceded Net Loss Expense Percentage
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
2. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1995 .... ............ ............ ............ ............ ........N O N E.......... ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
4. Totals .. ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------
Net Balance Sheet Reserves
After Discount
---------------------------
34 35
Loss
Losses Expenses
Unpaid Unpaid
- - -----------------------------------------
<S> <C> <C>
1. Prior .... ............ ............
2. 1994 ..... ............ ............
3. 1995 ..... ............ ............
- - -----------------------------------------
4. Totals ... ............ ............
- - -----------------------------------------
</TABLE>
97
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9 10
Losses Were 1986 1987 1988 1989 1990 1991 1992 1993 1994
Incurred
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ........80.. ........48.. .......234.. .......238.. .......258.. .......262.. .......262.. .......274.. .......265..
2. 1986 ..... .....1,199.. .....1,245.. .....1,365.. .....1,394.. .....1,407.. .....1,413.. .....1,413.. .....1,413.. .....1,413..
3. 1987 ..... ....X X X... .......793.. .....1,079.. .....1,036.. .....1,052.. .....1,059.. .....1,059.. .....1,059.. .....1,059..
4. 1988 ..... ....X X X... ....X X X... .....1,247.. .....1,136.. .....1,157.. .....1,119.. .....1,118.. .....1,118.. .....1,119..
5. 1989 ..... ....X X X... ....X X X... ....X X X... .......487.. .......409.. .......407.. .......402.. .......394.. .......394..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......325.. .......404.. .......394.. .......387.. .......387..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......579.. .......571.. .......587.. .......532..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......419.. .......399.. .......410..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,028.. .....1,241..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....2,408..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
1 Development
---------------------------------------
Years in Which 11 12 13
Losses Were 1995 One Year Two Year
Incurred
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... .......299.. ........34.. ........25..
2. 1986 ..... .....1,413.. ............ ............
3. 1987 ..... .....1,059.. ............ ............
4. 1988 ..... .....1,119.. ............ .........1..
5. 1989 ..... .......394.. ............ ............
6. 1990 ..... .......387.. ............ ............
7. 1991 ..... .......604.. ........72.. ........17..
8. 1992 ..... .......363.. .......(47). .......(36).
9. 1993 ..... .....1,294.. ........53.. .......266..
10. 1994 ..... .....2,190.. ......(218). ....X X X...
11. 1995 ..... .....2,629.. ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ......(106). .......273..
---------------------------
</TABLE>
SCHEDULE P - PART 2B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....22,513.. ....26,281.. ....26,355.. ....26,821.. ....26,227.. ....25,723.. ....25,272.. ....25,264.. ....25,396..
2. 1986 ..... ...100,491.. ...107,127.. ...105,761.. ...106,059.. ...104,577.. ...104,734.. ...104,343.. ...104,225.. ...104,511..
3. 1987 ..... ....X X X... ...157,264.. ...150,517.. ...150,383.. ...152,007.. ...152,215.. ...150,705.. ...150,657.. ...150,803..
4. 1988 ..... ....X X X... ....X X X... ...208,064.. ...194,616.. ...192,384.. ...193,782.. ...189,838.. ...189,443.. ...189,860..
5. 1989 ..... ....X X X... ....X X X... ....X X X... ...235,857.. ...210,048.. ...208,467.. ...204,740.. ...204,245.. ...204,686..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ...239,682.. ...225,667.. ...215,750.. ...213,599.. ...214,168..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...225,218.. ...196,986.. ...192,195.. ...190,560..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...200,292.. ...180,248.. ...179,945..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...185,646.. ...175,431..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...204,316..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ....25,409.. ........13.. .......145..
2. 1986 ..... ...104,503.. ........(8). .......278..
3. 1987 ..... ...150,731.. .......(72). ........74..
4. 1988 ..... ...189,831.. .......(29). .......388..
5. 1989 ..... ...204,871.. .......185.. .......626..
6. 1990 ..... ...214,158.. .......(10). .......579..
7. 1991 ..... ...190,978.. .......418.. ....(1,217).
8. 1992 ..... ...178,636.. ....(1,309). ....(1,612).
9. 1993 ..... ...179,974.. .....4,543.. ....(5,672).
10. 1994 ..... ...198,696.. ....(5,620). ....X X X...
11. 1995 ..... ...227,052.. ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ....(1,889). ....(6,411).
---------------------------
</TABLE>
SCHEDULE P - PART 2C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....2,411.. .....3,314.. .....3,833.. .....3,901.. .....3,801.. .....3,845.. .....3,653.. .....3,656.. .....3,658..
2. 1986 ..... .....8,190.. .....8,959.. .....9,650.. .....9,598.. .....9,702.. .....9,634.. .....9,643.. .....9,633.. .....9,624..
3. 1987 ..... ....X X X... ....13,437.. ....13,888.. ....14,847.. ....16,085.. ....16,279.. ....16,113.. ....16,058.. ....16,075..
4. 1988 ..... ....X X X... ....X X X... ....18,139.. ....18,445.. ....19,485.. ....19,064.. ....19,021.. ....19,105.. ....19,045..
5. 1989 ..... ....X X X... ....X X X... ....X X X... ....18,556.. ....19,029.. ....19,750.. ....18,296.. ....17,966.. ....17,792..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....16,257.. ....14,285.. ....13,362.. ....13,034.. ....12,768..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....13,737.. ....12,254.. ....11,512.. ....11,013..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....11,192.. ....10,811.. ....10,079..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....10,894.. ....11,280..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....11,703..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... .....3,654.. ........(4). ........(2).
2. 1986 ..... .....9,619.. ........(5). .......(14).
3. 1987 ..... ....16,065.. .......(10). .........7..
4. 1988 ..... ....19,061.. ........16.. .......(44).
5. 1989 ..... ....17,762.. .......(30). ......(204).
6. 1990 ..... ....12,683.. .......(85). ......(351).
7. 1991 ..... ....10,977.. .......(36). ......(535).
8. 1992 ..... .....9,837.. ......(242). ......(974).
9. 1993 ..... ....11,127.. ......(153). .......233..
10. 1994 ..... .....9,920.. ....(1,783). ....X X X...
11. 1995 ..... ....11,577.. ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ....(2,332). ....(1,884).
---------------------------
</TABLE>
SCHEDULE P - PART 2D - WORKERS' COMPENSATION
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ........N O N E.......... ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
4. 1988 ..... ............ ............ ............
5. 1989 ..... ............ ............ ............
6. 1990 ..... ............ ............ ............
7. 1991 ..... ............ ............ ............
8. 1992 ..... ............ ............ ............
9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ............ ............
---------------------------
</TABLE>
SCHEDULE P - PART 2-E - COMMERCIAL MULTIPLE PERIL
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .......512.. .......509.. .......6361. .......912.. .....1,029.. .......927.. .......923.. .......911.. .......910..
2. 1986 ..... .......625.. .......616.. .......716.. .......754.. .......799.. .......768.. .......743.. .......742.. .......742..
3. 1987 ..... ....X X X... .......441.. .......680.. .......673.. .......683.. .......678.. .......671.. .......671.. .......671..
4. 1988 ..... ....X X X... ....X X X... .......420.. .......320.. .......487.. .......463.. .......475.. .......476.. .......478..
5. 1989 ..... ....X X X... ....X X X... ....X X X... .......670.. .......648.. .......649.. .......614.. .......626.. .......628..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......458.. .......432.. .......420.. .......410.. .......398..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......448.. .......461.. .......422.. .......389..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,003.. .......745.. .......731..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......776.. .......917..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,199..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... .......911.. .........1.. ............
2. 1986 ..... .......742.. ............ ............
3. 1987 ..... .......671.. ............ ............
4. 1988 ..... .......478.. ............ .........2..
5. 1989 ..... .......630.. .........2.. .........4..
6. 1990 ..... .......398.. ............ .......(12).
7. 1991 ..... .......389.. ............ .......(33).
8. 1992 ..... .......784.. ........53.. ........39..
9. 1993 ..... .....1,037.. .......120.. .......261..
10. 1994 ..... .....1,222.. ........23.. ....X X X...
11. 1995 ..... .....1,725.. ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals .......199.. .......261..
---------------------------
</TABLE>
98
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 2F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9 10
Losses Were 1986 1987 1988 1989 1990 1991 1992 1993 1994
Incurred
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
1 Development
---------------------------------------
Years in Which 11 12 13
Losses Were 1995 One Year Two Year
Incurred
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
4. 1988 ..... ............ ............ ............
5. 1989 ..... ............ ............ ............
6. 1990 ..... ............ ............ ............
7. 1991 ..... ............ ............ ............
8. 1992 ..... ............ ............ ............
9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ............ ............
---------------------------
</TABLE>
SCHEDULE P - PART 2F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
4. 1988 ..... ............ ............ ............
5. 1989 ..... ............ ............ ............
6. 1990 ..... ............ ............ ............
7. 1991 ..... ............ ............ ............
8. 1992 ..... ............ ............ ............
9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ............ ............
---------------------------
</TABLE>
SCHEDULE P - PART 2G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
4. 1988 ..... ............ ............ ............
5. 1989 ..... ............ ............ ............
6. 1990 ..... ............ ............ ............
7. 1991 ..... ............ ............ ............
8. 1992 ..... ............ ............ ............
9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ............ ............
---------------------------
</TABLE>
SCHEDULE P - PART 2H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .......245.. .......354.. .......619.. .......750.. .......786.. .......831.. .......906.. .......925.. .......948..
2. 1986 ..... ........97.. ........85.. .......130.. .......116.. .......121.. .......118.. .......132.. .......132.. .......132..
3. 1987 ..... ....X X X... .......113.. .......140.. .......146.. .......150.. .......116.. .......117.. .......120.. .......120..
4. 1988 ..... ....X X X... ....X X X... ........25.. ........12.. ........53.. ........53.. ........63.. ........53.. ........53..
5. 1989 ..... ....X X X... ....X X X... ....X X X... ........13.. ........13.. ........13.. ........13.. ........13.. ........13..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........9.. .........8.. .........8.. .........8.. .........9..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........39.. ........15.. ........16.. ........15..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........41.. .........5.. ........23..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......357.. .........3..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........33..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... .......987.. ........39.. ........62..
2. 1986 ..... .......134.. .........2.. .........2..
3. 1987 ..... .......120.. ............ ............
4. 1988 ..... ........53.. ............ ............
5. 1989 ..... ........13.. ............ ............
6. 1990 ..... .........9.. ............ .........1..
7. 1991 ..... ........15.. ............ ........(1).
8. 1992 ..... ........22.. ........(1). ........17..
9. 1993 ..... .........2.. ........(1). ......(355).
10. 1994 ..... ........42.. .........9.. ....X X X...
11. 1995 ..... .........2.. ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ........48.. ......(274).
---------------------------
</TABLE>
SCHEDULE P - PART 2H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
4. 1988 ..... ............ ............ ............
5. 1989 ..... ............ ............ ............
6. 1990 ..... ............ ............ ............
7. 1991 ..... ............ ............ ............
8. 1992 ..... ............ ............ ............
9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ............ ............
---------------------------
</TABLE>
99
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9 10
Losses Were 1986 1987 1988 1989 1990 1991 1992 1993 1994
Incurred
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......138.. .......205..
2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......986..
3. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
1 Development
---------------------------------------
Years in Which 11 12 13
Losses Were 1995 One Year Two Year
Incurred
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... .......209.. .........4.. ........71..
2. 1994 ..... .....1,469.. .......483.. ....X X X...
3. 1995 ..... .......201.. ....X X X... ....X X X...
- - ------------------------------------------------------
4. Totals .......487.. ........71..
---------------------------
</TABLE>
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....(3,873). ....(1,250).
2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...106,815..
3. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ....(1,603). ......(353). .....2,270..
2. 1994 ..... ...106,328.. ......(487). ....X X X...
3. 1995 ..... ...134,639.. ....X X X... ....X X X...
- - ------------------------------------------------------
4. Totals ......(840). .....2,270..
---------------------------
</TABLE>
SCHEDULE P - PART 2K - FIDELITY/SURETY
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
3. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E...X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ............ ............ ............
2. 1994 ..... ............ ............ ....X X X...
3. 1995 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
4. Totals ............ ............
---------------------------
</TABLE>
SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
3. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E...X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... ............ ............ ............
2. 1994 ..... ............ ............ ....X X X...
3. 1995 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
4. Totals ............ ............
---------------------------
</TABLE>
SCHEDULE P - PART 2M - INTERNATIONAL
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
4. 1988 ..... ............ ............ ............
5. 1989 ..... ............ ............ ............
6. 1990 ..... ............ ............ ............
7. 1991 ..... ............ ............ ............
8. 1992 ..... ............ ............ ............
9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
12. Totals ............ ............
---------------------------
</TABLE>
100
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 2N - REINSURANCE A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9 10
Losses Were 1986 1987 1988 1989 1990 1991 1992 1993 1994
Incurred
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E .......... ............ ............
6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
1 Development
---------------------------------------
Years in Which 11 12 13
Losses Were 1995 One Year Two Year
Incurred
- - ------------------------------------------------------
<S> <C> <C> C>
1. 1986 ..... ............ ............ ............
2. 1987 ..... ............ ............ ............
3. 1988 ..... ............ ............ ............
4. 1989 ..... ............ ............ ............
5. 1990 ..... ............ ............ ............
6. 1991 ..... ............ ............ ............
7. 1992 ..... ............ ............ ....X X X...
8. 1993 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
9. Totals ............ ............
---------------------------
</TABLE>
SCHEDULE P - PART 2O - REINSURANCE B
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ............ ............ ............
6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. 1988 ..... ............ ............ ............
2. 1989 ..... ............ ............ ............
3. 1990 ..... ............ ............ ............
4. 1991 ..... ............ ............ ............
5. 1992 ..... ............ ............ ............
6. 1993 ..... ............ ............ ............
7. 1994 ..... ............ ............ ....X X X...
8. 1995 ..... ............ .....X X X.. ....X X X...
- - ------------------------------------------------------
9. Totals ............ ............
---------------------------
</TABLE>
SCHEDULE P - PART 2P - REINSURANCE C
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. 1988 ..... ............ ............ ............
2. 1989 ..... ............ ............ ............
3. 1990 ..... ............ ............ ............
4. 1991 ..... ............ ............ ............
5. 1992 ..... ............ ............ ............
6. 1993 ..... ............ ............ ............
7. 1994 ..... ............ ............ ....X X X...
8. 1995 ..... ............ ....X X X... ....X X X...
- - ------------------------------------------------------
9. Totals ............ ............
---------------------------
</TABLE>
SCHEDULE P - PART 2Q - REINSURANCE D
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ N O N E ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
- - ------------------------------------------------------
4. Totals ............ ............
---------------------------
</TABLE>
101
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9
Losses Were 1986 1987 1988 1989 1990 1991 1992 1993
Incurred
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior... ............... ............ ............. ........... ............. ............ .............. ...........
2. 1986.... ............... ............ ............. ........... ............. ............ .............. ...........
3. 1987.... .......X X X... ............ ............. ........... N O N E ...........
4. 1988.... .......X X X... ....X X X... ............. ........... ............. ............ .............. ...........
5. 1989.... .......X X X... ....X X X... ....X X X.... ........... ............. ............ .............. ...........
6. 1990.... .......X X X... ....X X X... ....X X X.... ...X X X... ............. ............ .............. ...........
7. 1991.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ............ .............. ...........
8. 1992.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ...X X X.... .............. ...........
9. 1993.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ...X X X.... ...X X X...... ...........
10. 1994.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ...X X X.... ...X X X...... ...X X X...
11. 1995.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ...X X X.... ...X X X...... ...X X X...
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------------------
1 Development
------------------------------------------------------
Years in Which 10 11 12 13
Losses Were 1994 1995 One Year Two Year
Incurred
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior.... ............... ............. ............ ............
2. 1986..... ............... ............. ............ ............
3. 1987..... ............... ............. ............ ............
4. 1988..... ............... ............. ............ ............
5. 1989..... ............... ............. ............ ............
6. 1990..... ............... ............. ............ ............
7. 1991..... ............... ............. ............ ............
8. 1992..... ............... ............. ............ ............
9. 1993..... ............... ............. ............ ............
10. 1994..... ............... ............. ............ ...X X X....
11. 1995..... .......X X X... ............. ...X X X.... ...X X X....
- - ------------------------------------------------------------------------
12. Totals ............ ............
--------------------------
</TABLE>
SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
--------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior... ........... ........... ........... ........... ........... ........... ........... ............
2. 1986.... ........... ........... ........... ........... ........... ........... ........... ............
3. 1987.... ..X X X.... ........... ........... ........... ........... ........... ........... ............
4. 1988.... ..X X X.... ..X X X.... ........... ........... ........... ........... ........... ............
5. 1989.... ..X X X.... ..X X X.... ..X X X.... ........... ........... ........... ........... ............
6. 1990.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ........... ........... ........... ............
7. 1991.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... N O N E ........... ............
8. 1992.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ........... ............
9. 1993.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ............
10. 1994.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.....
11. 1995.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X ... ..X X X.....
- - ---------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior... ........... .......... ........... .............
2. 1986.... ........... .......... ........... .............
3. 1987.... ........... .......... ........... .............
4. 1988.... ........... .......... ........... .............
5. 1989.... ........... .......... ........... .............
6. 1990.... ........... .......... ........... .............
7. 1991.... ........... .......... ........... .............
8. 1992.... ........... .......... ........... .............
9. 1993.... ........... .......... ........... .............
10. 1994.... ........... .......... ........... ...X X X.....
11. 1995.... ..X X X.... .......... ...X X X... ...X X X.....
- - ------------------------------------------------------------------
12. Totals ........... .............
---------------------------
</TABLE>
SCHEDULE P - PART 2S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
<TABLE>
- - -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior.... ......X X .... ............ ............ ............ ..N O N E....
2. 1994..... ......X X X.... ...X X X.... ...X X X.... ...X X X.... ...... ....
3. 1995..... ......X X X.... ...X X X.... ...X X X.... ...X X X.... ..... ....
- - -------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior..... .............. ........... ............. ............. ...........
2. 1994...... .....X X X.... ........... ............. ............. ...X X X...
3. 1995...... .....X X X.... ...X X X... ............. ...X X X..... ...X X X...
- - ------------------------------------------------------------------------------------
4. Totals ............. ............
--------------------------------
</TABLE>
102
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------------------
Years in Which
Losses Were 2 3 4 5 6 7 8 9 10
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... .......(19). .......109.. .......219.. .......250.. .......262.. .......262.. .......272.. .......265..
2. 1986 ..... .......765.. .....1,247.. .....1,327.. .....1,389.. .....1,402.. .....1,413.. .....1,413.. .....1,413.. .....1,413..
3. 1987 ..... ....X X X... .......795.. .....1,046.. .....1,036.. .....1,047.. .....1,059.. .....1,059.. .....1,059.. .....1,059..
4. 1988 ..... ....X X X... ....X X X... .......894.. .....1,080.. .....1,092.. .....1,118.. .....1,118.. .....1,121.. .....1,122..
5. 1989 ..... ....X X X... ....X X X... ....X X X... .......303.. .......375.. .......387.. .......391.. .......394.. .......394..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......225.. .......386.. .......386.. .......387.. .......387..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......369.. .......422.. .......433.. .......443..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......287.. .......358.. .......359..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......507.. .....1,078..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,409..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
1 12 13
Number of Number of
Years in Which Claims Claims
Losses Were 11 Closed Closed
Incurred 1995 With Loss Without
Payment Loss Payment
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... .......299.. .....9,014.. .....1,511..
2. 1986 ..... .....1,413.. .......493.. ........30..
3. 1987 ..... .....1,059.. .......458.. ........21..
4. 1988 ..... .....1,122.. .......433.. ........16..
5. 1989 ..... .......394.. .......175.. .........6..
6. 1990 ..... .......387.. .......153.. ........10..
7. 1991 ..... .......475.. .......183.. ........16..
8. 1992 ..... .......363.. .......139.. ........21..
9. 1993 ..... .....1,319.. .......367.. .......100..
10. 1994 ..... .....1,901.. .......733.. .......235..
11. 1995 ..... .....1,531.. .......815.. .......264..
- - ------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ....14,403.. ....21,069.. ....23,712.. ....25,325.. ....25,395.. ....25,400.. ....25,388.. ....23,379..
2. 1986 ..... ....27,897.. ....76,802.. ....93,204.. ....99,368.. ...102,322.. ...103,847.. ...104,202.. ...104,310.. ...104,506..
3. 1987 ..... ....X X X... ....42,920.. ...111,696.. ...133,395.. ...143,558.. ...148,867.. ...150,122.. ...150,635.. ...150,700..
4. 1988 ..... ....X X X... ....X X X... ....53,801.. ...140,501.. ...171,590.. ...183,114.. ...187,798.. ...189,378.. ...189,733..
5. 1989 ..... ....X X X... ....X X X... ....X X X... ....60,812.. ...155,385.. ...186,845.. ...198,596.. ...202,488.. ...204,006..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....65,344.. ...169,803.. ...200,631.. ...209,185.. ...212,503..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....67,539.. ...151,993.. ...178,215.. ...187,319..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....60,722.. ...138,083.. ...167,720..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....61,417.. ...140,034..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....67,635..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> <C>
1. Prior .... ....25,399.. ....82,682.. ....27,308..
2. 1986 ..... ...104,498.. ....21,010.. .....7,375..
3. 1987 ..... ...150,675.. ....26,478.. ....13,373..
4. 1988 ..... ...189,748.. ....31,636.. ....13,246..
5. 1989 ..... ...204,486.. ....33,435.. ....13,651..
6. 1990 ..... ...213,795.. ....33,132.. ....13,439..
7. 1991 ..... ...189,354.. ....29,662.. ....11,299..
8. 1992 ..... ...175,889.. ....29,165.. ....10,836..
9. 1993 ..... ...168,057.. ....30,512.. ....11,649..
10. 1994 ..... ...152,257.. ....32,679.. ....13,492..
11. 1995 ..... ....73,369.. ....22,823.. ....11,837..
- - ------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... .....1,650.. .....2,693.. .....3,542.. .....3,579.. .....3,616.. .....3,641.. .....3,651.. .....3,654..
2. 1986 ..... .....2,118.. .....5,765.. .....7,973.. .....8,604.. .....9,293.. .....9,491.. .....9,610.. .....9,611.. .....9,619..
3. 1987 ..... ....X X X... .....3,237.. .....8,935.. ....12,063.. ....14,523.. ....15,738.. ....15,985.. ....16,029.. ....16,052..
4. 1988 ..... ....X X X... ....X X X... .....3,671.. ....10,292.. ....15,340.. ....17,477.. ....18,474.. ....19,025.. ....19,034..
5. 1989 ..... ....X X X... ....X X X... ....X X X... .....3,923.. ....10,830.. ....14,787.. ....16,829.. ....17,316.. ....17,627..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .....2,789.. .....8,524.. ....11,381.. ....12,213.. ....12,542..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....3,143.. .....7,583.. .....9,904.. ....10,606..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....2,672.. .....6,508.. .....8,872..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....2,588.. .....7,506..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....3,120..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... .....3,654.. .....6,597.. .....1,669..
2. 1986 ..... .....9,619.. .....1,670.. .......457..
3. 1987 ..... ....16,052.. .....2,271.. .......675..
4. 1988 ..... ....19,050.. .....2,337.. .......827..
5. 1989 ..... ....17,729.. .....2,077.. .......761..
6. 1990 ..... ....12,569.. .....1,735.. .......667..
7. 1991 ..... ....10,875.. .....1,405.. .......495..
8. 1992 ..... .....9,562.. .....1,342.. .......434..
9. 1993 ..... .....9,951.. .....1,326.. .......393..
10. 1994 ..... .....9,956.. .....1,344.. .......484..
11. 1995 ..... .....2,570.. .......778.. .......411..
- - ------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3D - WORKERS' COMPENSATION
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... ............ ............ ............
2. 1986 ..... ............ ............ ............
3. 1987 ..... ............ ............ ............
4. 1988 ..... ............ ............ ............
5. 1989 ..... ............ ............ ............
6. 1990 ..... ............ ............ ............
7. 1991 ..... ............ ............ ............
8. 1992 ..... ............ ............ ............
9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ............
11. 1995 ..... ............ ............ ............
- - ------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... .......165.. .......469.. .......753.. .......977.. .......902.. .......903.. .......906.. .......910..
2. 1986 ..... .......325.. .......466.. .......607.. .......663.. .......704.. .......726.. .......741.. .......742.. .......742..
3. 1987 ..... ....X X X... .......209.. .......563.. .......652.. .......674.. .......676.. .......671.. .......671.. .......671..
4. 1988 ..... ....X X X... ....X X X... .......363.. .......421.. .......456.. .......458.. .......464.. .......476.. .......478..
5. 1989 ..... ....X X X... ....X X X... ....X X X... .......419.. .......409.. .......555.. .......614.. .......626.. .......628..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......267.. .......378.. .......397.. .......410.. .......398..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......208.. .......313.. .......374.. .......369..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......367.. .......575.. .......652..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......368.. .......766..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......509..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ------------------------------------------------------
<S> <C> <C> C>
1. Prior .... .......911.. .....2,921.. .......626..
2. 1986 ..... .......742.. .......130.. ........28..
3. 1987 ..... .......671.. ........90.. ........17..
4. 1988 ..... .......478.. ........77.. ........12..
5. 1989 ..... .......628.. ........86.. .........8..
6. 1990 ..... .......398.. ........84.. ........16..
7. 1991 ..... .......389.. ........71.. ........30..
8. 1992 ..... .......729.. .......106.. ........34..
9. 1993 ..... .......776.. .......127.. ........64..
10. 1994 ..... .......964.. .......144.. ........69..
11. 1995 ..... .......902.. .......122.. ........62..
- - ------------------------------------------------------
</TABLE>
103
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 3F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
--------------------------------------------------------------------------------------------------
Years in Which
Losses Were 2 3 4 5 6 7 8
Incurred 1986 1987 1988 1989 1990 1991 1992
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .....000..... ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... N O N E........ ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
-----------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------------------------------------
1 12 13
----------------------------------------- Number of Number of
Years in Which Claims Claims
Losses Were 9 10 11 Closed Closed
Incurred 1993 1994 1995 With Loss Without Loss
Payment Payment
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior ....... ............ ............. ............. ............. .............
2. 1986 ........ ............ ............. ............. ............. .............
3. 1987 ........ ............ ............. ............. ............. .............
4. 1988 ........ ............ ............. ............. ............. .............
5. 1989 ........ ............ ............. ............. ............. .............
6. 1990 ........ ............ ............. ............. ............. .............
7. 1991 ........ ............ ............. ............. ............. .............
8. 1992 ........ ............ ............. ............. ............. .............
9. 1993 ........ ............ ............. ............. ............. .............
10. 1994 ........ ...X X X.... ............. ............. ............. .............
11. 1995 ........ ...X X X.... ....X X X.... ............. ............. .............
------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .....000..... ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... .N O N E....... ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
-----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. .............
3. 1987 ........ ............. ............. ............. ............. .............
4. 1988 ........ ............. ............. ............. ............. .............
5. 1989 ........ ............. ............. ............. ............. .............
6. 1990 ........ ............. ............. ............. ............. .............
7. 1991 ........ ............. ............. ............. ............. .............
8. 1992 ........ ............. ............. ............. ............. .............
9. 1993 ........ ............. ............. ............. ............. .............
10. 1994 ........ ....X X X.... ............. ............. ............. .............
11. 1995 ........ ....X X X.... ....X X X.... ............. ............. .............
-------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<TABLE>
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .....000..... ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... N O N E........ ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
-----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ....X X X.... ....X X X....
2. 1986 ........ ............. ............. ............. ....X X X.... ....X X X....
3. 1987 ........ ............. ............. ............. ....X X X.... ....X X X....
4. 1988 ........ ............. ............. ............. ....X X X.... ....X X X....
5. 1989 ........ ............. ............. ............. ....X X X.... ....X X X....
6. 1990 ........ ............. ............. ............. ....X X X.... ....X X X....
7. 1991 ........ ............. ............. ............. ....X X X.... ....X X X....
8. 1992 ........ ............. ............. ............. ....X X X.... ....X X X....
9. 1993 ........ ............. ............. ............. ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ............. ............. ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ............. ....X X X.... ....X X X....
-------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<TABLE>
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .....000..... .........396. .........987. .........636. .........727. .........842. .........884.
2. 1986 ........ ...........7. ..........44. ..........79. ..........95. .........103. .........473. .........132.
3. 1987 ........ ....X X X.... ..........36. ......... 86. ..........83. .........120. .........117. .........116.
4. 1988 ........ ....X X X.... ....X X X.... ..........11. ..........12. ..........53. .........116. ..........53.
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... ...........4. ..........13. ..........53. ..........13.
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...........8. ..........13. ...........8.
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...........8. ..........15.
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...........2.
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior ....... .........915. .........925. .........987. .........346. .........210.
2. 1986 ........ .........132. .........132. .........134. ..........18. ..........15.
3. 1987 ........ .........120. .........120. .........120. ..........14. ...........9.
4. 1988 ........ ..........53. ..........53. ..........53. ............. ...........1.
5. 1989 ........ ..........13. ..........13. ..........13. ............. ...........1.
6. 1990 ........ .......... 8. ...........9. ...........9. ............. ...........1.
7. 1991 ........ ..........15. ..........15. ..........15. ...........1. ...........1.
8. 1992 ........ ...........2. ..........22. ..........22. ...........2. ...........7.
9. 1993 ........ ...........2. ...........2. ...........2. ...........1. ...........1.
10. 1994 ........ ....X X X.... ............. ............. ...........1. .............
11. 1995 ........ ....X X X.... ....X X X.... ...........1. ............. ...........1.
------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<TABLE>
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .....000..... ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... ..N O N E...... ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
-----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. .............
3. 1987 ........ ............. ............. ............. ............. .............
4. 1988 ........ ............. ............. ............. ............. .............
5. 1989 ........ ............. ............. ............. ............. .............
6. 1990 ........ ............. ............. ............. ............. .............
7. 1991 ........ ............. ............. ............. ............. .............
8. 1992 ........ ............. ............. ............. ............. .............
9. 1993 ........ ............. ............. ............. ............. .............
10. 1994 ........ ....X X X.... ............. ............. ............. .............
11. 1995 ........ ....X X X.... ....X X X.... ............. ............. .............
-------------------------------------------------------------------------------------------
</TABLE>
104
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 3I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
<TABLE>
<CAPTION>
- - ---------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000
-----------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7
Losses Were
Incurred 1986 1987 1988 1989 1990 1991
- - ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
2. 1994 .............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
3. 1995 .............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
- - ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------------
1 OMITTED) 12 13
---------------------------------------------------------- Number of Number of
Years in Which 8 9 10 11 Claims Claims
Losses Were Closed Closed
Incurred 1992 1993 1994 1995 With Loss Without Loss
Payment Payment
- - ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ............. ....X X X... ......000..... ...........159. .........182 .....X X X.... ....X X X....
2. 1994 .............. ....X X X... .....X X X.... ...........768. .......1,050 .....X X X.... ....X X X....
3. 1995 .............. ....X X X... .....X X X.... .....X X X..... ..........81 .....X X X.... ....X X X....
- - ------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
2. 1994 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............. .....X X X..... ......000...... ...........672. ..........(781) .......443,346. .......156,360.
2. 1994 ............... .....X X X..... .....X X X..... .......103,694. .......107,647. ........54,050. ........22,817.
3. 1995 ............... .....X X X..... .....X X X..... ......X X X.... .......130,643. ........53,750. ........22,985.
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3K - FIDELITY/SURETY
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X.....
2. 1994 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... N O N E
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............. .....X X X..... ......000...... ............... ............... .....X X X..... .....X X X.....
2. 1994 ............... .....X X X..... .....X X X..... ............... ............... .....X X X..... .....X X X.....
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... ............... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT ADND HEALTH)
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X.....
2. 1994 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... N O N E
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............. .....X X X..... ......000...... ............... ............... .....X X X..... .....X X X.....
2. 1994 ............... .....X X X..... .....X X X..... ............... ............... .....X X X..... .....X X X.....
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... ............... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3M - INTERNATIONAL
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior............... ......000...... ............... ............... ............... ............... ...............
2. 1986................ ............... ............... ............... ............... ............... ...............
3. 1987................ .....X X X..... ............... ............... ............... ............... ...............
4. 1988................ .....X X X..... .....X X X..... ............... ............... ............... ...............
5. 1989................ .....X X X..... .....X X X..... .....X X X..... ...............
6. 1990................ .....X X X..... .....X X X..... .....X X X..... .....X X X.....
7. 1991................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... N O N E
8. 1992................ .....X X X..... .....X X X..... .....X X X..... .....X X X.....
9. 1993................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
10. 1994................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
11. 1995................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior............... ............... ............... ............... ............... .....X X X..... .....X X X.....
2. 1986................ ............... ............... ............... ............... .....X X X..... .....X X X.....
3. 1987................ ............... ............... ............... ............... .....X X X..... .....X X X.....
4. 1988................ ............... ............... ............... ............... .....X X X..... .....X X X.....
5. 1989................ ............... ............... ............... ............... .....X X X..... .....X X X.....
6. 1990................ ............... ............... ............... ............... .....X X X..... .....X X X.....
7. 1991................ ............... ............... ............... ............... .....X X X..... .....X X X.....
8. 1992................ ............... ............... ............... ............... .....X X X..... .....X X X.....
9. 1993................ .....X X X..... ............... ............... ............... .....X X X..... .....X X X.....
10. 1994................ .....X X X..... .....X X X..... ............... ............... .....X X X..... .....X X X.....
11. 1995................ .....X X X..... .....X X X..... .....X X X..... ............... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
105
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 3N - REINSURANCE A
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
-------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9
Losses Were 1986 1987 1988 1989 1990 1991 1992 1993
Incurred
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988......... ....X X X.... ....X X X.... ............. ............. ............. ............. ............. ...........
2. 1989......... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
3. 1990......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ........ .... ...........
4. 1991......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N O N E. ............. ...........
5. 1992......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
6. 1993......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ........ .... ...........
7. 1994......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
8. 1995......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1
-------------------------------------------------------
12 13
Number of Number of
Years in Which 10 11 Claims Claims
Losses Were 1994 1995 Closed Closed
Incurred With Loss Without Loss
Payment Payment
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988......... ............. ............. ....X X X.... ....X X X....
2. 1989......... ............. ............. ....X X X.... ....X X X....
3. 1990......... ............. ............. ....X X X.... ....X X X....
4. 1991......... ............. ............. ....X X X.... ....X X X....
5. 1992......... ............. ............. ....X X X.... ....X X X....
6. 1993......... ............. ............. ....X X X.... ....X X X....
7. 1994......... ............. ............. ....X X X.... ....X X X....
8. 1995......... ....X X X.... ............. ....X X X.... ....X X X....
----------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3O - REINSURANCE B
<TABLE>
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. ...........
2. 1989 ........ ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
3. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
4. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N O N E. ............. ...........
5. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
6. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............ ............. ...........
7. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
8. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 ........ ............. ............. ....X X X.... ....X X X....
2. 1989 ........ ............. ............. ....X X X.... ....X X X....
3. 1990 ........ ............. ............. ....X X X.... ....X X X....
4. 1991 ........ ............. ............. ....X X X.... ....X X X....
5. 1992 ........ ............. ............. ....X X X.... ....X X X....
6. 1993 ........ ............. ............. ....X X X.... ....X X X....
7. 1994 ........ ............. ............. ....X X X.... ....X X X....
8. 1995 ........ ....X X X.... ............. ....X X X.... ....X X X....
----------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3P - REINSURANCE C
<TABLE>
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. ...........
2. 1989 ........ ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
3. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
4. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N O N E. ............. ...........
5. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............ .............. ............. ...........
6. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............ .............. ............. ...........
7. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
8. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 ........ ............ ............. ....X X X.... ....X X X....
2. 1989 ........ ............ ............. ....X X X.... ....X X X....
3. 1990 ........ ............ ............. ....X X X.... ....X X X....
4. 1991 ........ ............ ............. ....X X X.... ....X X X....
5. 1992 ........ ............ ............. ....X X X.... ....X X X....
6. 1993 ........ ............ ............. ....X X X.... ....X X X....
7. 1994 ........ ............ ............. ....X X X.... ....X X X....
8. 1995 ........ X X X ............. ....X X X.... ....X X X....
-----------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3Q - REINSURANCE D
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ........... ............ ........... ..............
2. 1986 ....... ............. ............. ............. ............. ....N O N E.. ............ ..............
3. 1987 ....... ....X X X.... ............. ............. ............. ............ ........... ........... ...............
-----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ......... ............. ............. ....X X X.... ....X X X....
2. 1986 ......... ............. ............. ....X X X.... ....X X X....
3. 1987 ......... ............. ............. ....X X X.... ....X X X....
- - ---------------------------------------------------------------------------------
</TABLE>
106
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 3R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
-------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9
Losses Were 1986 1987 1988 1989 1990 1991 1992 1993
Incurred
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior........ .....000..... ............. ............. ............. ............. ............. ............. ...........
2. 1986 ........ ............. ............. ............. ............. ............. ............. ............. ...........
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. ...........
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ....N O N E. ............. ...........
5. 1999 ........ ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ...........
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ...........
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X... ....X X X.... ...........
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------------------------------------------------
12 13
Number of Number of
Years in Which 10 11 Claims Claims
Losses Were 1994 1995 Closed Closed
Incurred With Loss Without Loss
Payment Payment
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988......... ............. ............. ............. .............
2. 1989......... ............. ............. ............. .............
3. 1990......... ............. ............. ............. .............
4. 1991......... ............. ............. ............. .............
5. 1992......... ............. ............. ............. .............
6. 1993......... ............. ............. ............. .............
7. 1994......... ............. ............. ............. .............
8. 1995......... ....X X X.... ............. ............. .............
----------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior........ .....000..... ............. ............. ............. ............. ............. ............. ...........
2. 1986 ........ ............. ............. ............. ............. ............. ............. ............. ...........
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. ...........
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. ...........
5. 1999 ........ ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N O N E. ............. ...........
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ...........
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X... ............. ...........
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior........ ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. .............
3. 1987 ........ ............. ............. ............. .............
4. 1988 ........ ............. ............. ............. .............
5. 1989 ........ ............. ............. ............. .............
6. 1990 ........ ............. ............. ............. .............
7. 1991 ........ ............. ............. ............. .............
8. 1992 ........ ............. ............. ............. .............
9. 1993 ........ ............. ............. ............. .............
10. 1994 ........ ............. ............. ............. .............
11. 1995 ........ ....X X X.... ............. ............. .............
----------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3S - FINANCIAL GUAR|ANTY/MORTGAGE GUARANTY
<TABLE>
<CAPTION>
- - ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N O N E. ... 000...... ..........
2. 1994.......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............ ........... ....X X X.... ..........
3. 1995.......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............ ........... ....X X X.... ...X X X..
- - --------------------------------------------------------------------------------------------------------------------------------
- - ---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior............ ............. ...X X X.... ....X X X....
2. 1994............. ............. ...X X X.... ....X X X....
3. 1995............. ............. ...X X X.... ....X X X....
- - ---------------------------------------------------------------
</TABLE>
107
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
- - -------------------------------------------------------------------------------------------------------------------------
1 BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
--------------------------------------------------------------------------------------------------
Years in Which
Losses Were 2 3 4 5 6 7 8
Incurred 1986 1987 1988 1989 1990 1991 1992
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ..........54. ..........19. ............. ............. ............. ............. .............
2. 1986 ........ .........127. ..........37. ..........17. ............. ............. ............. .............
3. 1987 ........ ....X X X.... .........132. ..........33. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... .........114. ............. ..........10. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... .........129. ..........19. ...........9. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........68. ..........18. ...........8.
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........62. ..........15.
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........54.
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------
1
-----------------------------------------
Years in Which
Losses Were 9 10 11
Incurred 1993 1994 1995
- - ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............ ............. .............
2. 1986 ........ ............ ............. .............
3. 1987 ........ ............ ............. .............
4. 1988 ........ ............ ............. .............
5. 1989 ........ ............ ............. .............
6. 1990 ........ ............ ............. .............
7. 1991 ........ .........19. ............. ..........53.
8. 1992 ........ .........38. ..........51. .............
9. 1993 ........ ........155. .........103. .............
10. 1994 ........ ...X X X.... .........380. .........124.
11. 1995 ........ ...X X X.... ....X X X.... .........366.
- - ----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .......3,877. .......2,935. .......1,277. .........835. ............. ............. .............
2. 1986 ........ ......29,873. .......8,813. .......2,941. .......2,071. .........(12) ............. .............
3. 1987 ........ ....X X X.... ......47,187. .......8,834. .......3,222. .......2,071. .......1,037. .............
4. 1988 ........ ....X X X.... ....X X X.... ......64,968. ......12,915. .......5,084. .......2,892. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... ......67,175. ......12,210. .......3,712. .........267.
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ......53,293. .......9,331. .......1,655.
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ......47,436. .......6,854.
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ......34,167.
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
- - -----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ..........(5) ............. .............
6. 1990 ........ .........163. ..........52. .............
7. 1991 ........ .........340. .........156. ..........17.
8. 1992 ........ .......2,735. .........275. .........125.
9. 1993 ........ ......22,016. .........780. .........164.
10. 1994 ........ ....X X X.... ......25,130. .........193.
11. 1995 ........ ....X X X.... ....X X X.... ......29,574.
- - -----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .........385. .........281. .........133. .........120. ...........1. ............. .............
2. 1986 ........ .......3,005. .........986. .........418. .........313. ..........89. ...........3. ...........2.
3. 1987 ........ ....X X X.... .......4,419. .......1,102. .........685. .........385. .........149. ...........9.
4. 1988 ........ ....X X X.... ....X X X.... .......6,925. .......1,794. .......1,638. .........522. ..........23.
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... .......8,404. .......2,779. .......1,166. .........190.
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... .......7,030. .......1,811. .........554.
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .......4,719. .........987.
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .......2,985.
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
- - -----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ...........4. ..........11. ...........7.
4. 1988 ........ ..........18. ...........2. ...........4.
5. 1989 ........ ..........37. ..........17. ..........12.
6. 1990 ........ .........113. ..........64. ..........15.
7. 1991 ........ .........285. ..........51. ..........17.
8. 1992 ........ .......1,154. ..........41. ..........27.
9. 1993 ........ .......2,043. .........211. ..........16.
10. 1994 ........ ....X X X.... .......3,664. .........321.
11. 1995 ........ ....X X X.... ....X X X.... .......3,664.
- - -----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4D - WORKERS' COMPENSATION
<TABLE>
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ............ ............. ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... .... N O N E ....... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
- - -----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ............. ............. .............
8. 1992 ........ ............. ............. .............
9. 1993 ........ ............. ............. .............
10. 1994 ........ ....X X X.... ............. .............
11. 1995 ........ ....X X X.... ....X X X.... .............
- - -----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL
<TABLE>
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ..........43. ..........18. ............. ............. ............. ............. .............
2. 1986 ........ ..........99. ..........34. ..........18. ............. ............. ............. .............
3. 1987 ........ ....X X X.... .........119. ..........36. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... .........125. ............. ..........20. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... .........196. ..........39. ..........21. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... .........136. ..........43. ..........23.
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .........148. ..........47.
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .........166.
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
- - -----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ..........33. ............. .............
8. 1992 ........ ..........67. ..........42. .............
9. 1993 ........ .........234. ..........84. ..........60.
10. 1994 ........ ....X X X.... .........295. .........118.
11. 1995 ........ ....X X X.... ....X X X.... .........421.
- - -----------------------------------------------------------------
</TABLE>
108
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------
1 BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
-----------------------------------------------------------------------------------------------------
Years in Which
Losses Were 2 3 4 5 6 7 8
Incurred 1986 1987 1988 1989 1990 1991 1992
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... N O N E........ ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------
1
-----------------------------------------
Years in Which
Losses Were 9 10 11
Incurred 1993 1994 1995
- - ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............ ............. .............
2. 1986 ........ ............ ............. .............
3. 1987 ........ ............ ............. .............
4. 1988 ........ ............ ............. .............
5. 1989 ........ ............ ............. .............
6. 1990 ........ ............ ............. .............
7. 1991 ........ ............ ............. .............
8. 1992 ........ ............ ............. .............
9. 1993 ........ ............ ............. .............
10. 1994 ........ ...X X X.... ............. .............
11. 1995 ........ ...X X X.... ....X X X.... .............
- - ----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... .N O N E....... ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
- - -----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ............. ............. .............
8. 1992 ........ ............. ............. .............
9. 1993 ........ ............. ............. .............
10. 1994 ........ ....X X X.... ............. .............
11. 1995 ........ ....X X X.... ....X X X.... .............
- - -----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
(ALL PERILS), BOILER AND MACHINERY)
<TABLE>
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... N O N E........ ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
- - -----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ............. ............. .............
8. 1992 ........ ............. ............. .............
9. 1993 ........ ............. ............. .............
10. 1994 ........ ....X X X.... ............. .............
11. 1995 ........ ....X X X.... ....X X X.... .............
- - -----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
<TABLE>
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ..........21. ...........6. ............. ............. ............. ............. .............
2. 1986 ........ ..........48. ..........10. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ..........39. ............. ............. ...........7. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ..........14. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... ...........9. ............. ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...........1. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........30. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........33.
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
- - -----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ...........1. ............. .............
8. 1992 ........ ...........3. ...........1. .............
9. 1993 ........ .........353. ...........3. .............
10. 1994 ........ ....X X X.... ..........33. ..........42.
11. 1995 ........ ....X X X.... ....X X X.... ...........1.
- - -----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
<TABLE>
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .....000..... ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... ..N O N E...... ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
- - -----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ............. ............. .............
8. 1992 ........ ............. ............. .............
9. 1993 ........ ............. ............. .............
10. 1994 ........ ....X X X.... ............. .............
11. 1995 ........ ....X X X.... ....X X X.... .............
- - -----------------------------------------------------------------
</TABLE>
109
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 4I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
<TABLE>
<CAPTION>
- - ---------------------------------------------------------------------------------------------------------------------------
1 BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000
-----------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7
Losses Were
Incurred 1986 1987 1988 1989 1990 1991
- - ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
2. 1994 .............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
3. 1995 .............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
- - ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------------------------------
1 OMITTED)
------------------------------------------------------------
Years in Which 8 9 10 11
Losses Were
Incurred 1992 1993 1994 1995
- - ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ............. ..X X X..... ............34 ............19 .............7.
2. 1994 .............. ..X X X..... .....X X X.... ............35 ...........136.
3. 1995 .............. ..X X X..... .....X X X.... .....X X X.... ............33.
- - ----------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
2. 1994 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior .............. .....X X X..... .........1,594. ............... ...............
2. 1994 ............... .....X X X..... .....X X X..... .........2,416. ...........184.
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... .........3,213.
---------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4K - FIDELITY/SURETY
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............. .....X X X..... .....X X X..... .....X X X..... N O N E .....X X X.....
2. 1994 ............... .....X X X..... .....X X X..... .....X X X..... .............. .............. .....X X X.....
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior .............. .....X X X..... ............... ............... ...............
2. 1994 ............... .....X X X..... .....X X X..... ............... ...............
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... ...............
---------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT ADND HEALTH)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
2. 1994 ............... .....X X X..... .....X X X..... ............... ............... .....X X X..... .....X X X.....
3. 1995 ............... .....X X X..... .....X X X..... ...........N O N E............. .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior .............. .....X X X..... ............... ............... ...............
2. 1994 ............... .....X X X..... .....X X X..... ............... ...............
3. 1995 ............... .....X X X..... .....X X X..... .....X X X..... ...............
---------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4M - INTERNATIONAL
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior............... ............... ............... ............... ............... ............... ...............
2. 1986................ ............... ............... ............... ............... ............... ...............
3. 1987................ .....X X X..... ............... ............... ............... ............... ...............
4. 1988................ .....X X X..... .....X X X..... ............... ............... ............... ...............
5. 1989................ .....X X X..... .....X X X..... .....X X X..... ............... ............... ...............
6. 1990................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... ............... ...............
7. 1991................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... ...............
8. 1992................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
9. 1993................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
10. 1994................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
11. 1995................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior............... ............... ............... ............... ...............
2. 1986................ ............... ............... ............... ...............
3. 1987................ ............... ............... ............... ...............
4. 1988................ ............... ............... ............... ...............
5. 1989................ ............... ............... ............... ...............
6. 1990................ ............... ............... ............... ...............
7. 1991................ ............... ............... ............... ...............
8. 1992................ ............... ............... ............... ...............
9. 1993................ .....X X X..... ............... ............... ...............
10. 1994................ .....X X X..... .....X X X..... ............... ...............
11. 1995................ .....X X X..... .....X X X..... .....X X X..... ...............
---------------------------------------------------------------------------------------------
</TABLE>
110
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 4N - REINSURANCE A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9
Losses Were 1986 1987 1988 1989 1990 1991 1992 1993
Incurred
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ....... ...X X X... ...X X X... ........... ........... ........... ........... ........... ...........
2. 1989 ....... ...X X X... ...X X X... ...X X X... ........... ........... ........... ........... ...........
3. 1990 ....... ...X X X... ...X X X... ...X X X... ...X X X... ........... ........... ........... ...........
4. 1991 ....... ...X X X... ...X X X... ...X X X... ...X X N O N E ........... ........... ...........
5. 1992 ....... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ........... ...........
6. 1993 ....... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...........
7. 1994 ....... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X...
8. 1995 ....... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X... ...X X X...
- - ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ------------------------------------------------------
1
---------------------------------
Years in Which 10 11
Losses Were 1994 1995
Incurred
- - ------------------------------------------------------
<S> <C> <C> <C>
1. 1988.......... .............. .................
2. 1989.......... .............. .................
3. 1990.......... .............. .................
4. 1991.......... .............. .................
5. 1992.......... .............. .................
6. 1993.......... .............. .................
7. 1994.......... .............. .................
8. 1995.......... .....X X X.... .................
- - ------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4O - REINSURANCE B
<TABLE>
- - -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. 1988....... ...X X X.... ...X X X.... ............ ............ ............ ............ .............
2. 1989....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ .............
3. 1990....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ .............
4. 1991....... ...X X X.... ...X X X.... ...X X X.... N O N E ............ .............
5. 1992....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ....X X X... .............
6. 1993....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
7. 1994....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
8. 1995....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
- - -------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------
<S> <C> <C> <C>
1. 1988....... ............. ............. ............
2. 1989....... ............. ............. ............
3. 1990....... ............. ............. ............
4. 1991....... ............. ............. ............
5. 1992....... ............. ............. ............
6. 1993....... ............. ............. ............
7. 1994....... ....X X X.... ............. ............
8. 1995....... ....X X X.... ....X X X.... ............
- - -----------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4P - REINSURANCE C
<TABLE>
- - -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. 1988....... ...X X X.... ...X X X.... ............ ............ ............ ............ .............
2. 1989....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ .............
3. 1990....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ .............
4. 1991....... ...X X X.... ...X X X.... ...X X X.... N O N E ............ .............
5. 1992....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ....X X X... .............
6. 1993....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
7. 1994....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
8. 1995....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
- - -------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------
<S> <C> <C> <C>
1. 1988....... ............. ............. ............
2. 1989....... ............. ............. ............
3. 1990....... ............. ............. ............
4. 1991....... ............. ............. ............
5. 1992....... ............. ............. ............
6. 1993....... ............. ............. ............
7. 1994....... ....X X X.... ............. ............
8. 1995....... ....X X X.... ....X X X.... ............
- - -----------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4Q - REINSURANCE D
<TABLE>
- - -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior...... ............ ............ ............ ............ ............. ........... .............
2. 1989....... ............ ............ ............ ............ ............. ........... .............
3. 1990....... ...X X X.... ............ ............ ........ N O N E ........... .............
- - -------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------
<S> <C> <C> <C>
1. Prior...... ............. ............. ............
2. 1989....... ............. ............. ............
3. 1990....... ............. ............. ............
- - -----------------------------------------------------------
</TABLE>
111
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
--------------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9 10
Losses Were 1986 1987 1988 1989 1990 1991 1992 1993 1994
Incurred
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years in Which 11
Losses Were 1995
Incurred
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SCHEDULE P - PART 4S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
<TABLE>
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X... ....X X X... ............ ............
2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
3. 1995 ..... ....X X X... ....X X X... ....X X X... ...N O N E.. ....X X X... ....X X X... ....X X X... ....X X X... ............
- - -----------------------------------------------------------------------------------------------------------------------------------
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1994 ..... ............
3. 1995 ..... ............
- - ---------------------------
</TABLE>
112
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5A - HOMWOWNERS/FARMOWNERS
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... .........133 .........171 .........175 .........175 .........175 .........175
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........111 .........151 .........151 .........152 .........153
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........149 .........181 .........182 .........182
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........109 .........138 .........139
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........163 .........360
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........616
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... .........175
6. 1990 ..... .........153
7. 1991 ..... .........183
8. 1992 ..... .........139
9. 1993 ..... .........367
10. 1994 ..... .........733
11. 1995 ..... .........815
- - ---------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ...........3 ...........3 ............ ...........1 ............
2. 1986 ..... ............ ............ ............ ............ ...........1 ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ...........2 ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ...........6 ...........1 ............ ...........2 ...........1
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ...........4 ...........1 ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ...........5 ...........2 ...........1 ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ..........21 ...........2 ...........2 ...........2
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ..........20 ...........2 ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ..........81 ...........9
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........174
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ...........1
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ...........1
8. 1992 ..... ...........1
9. 1993 ..... ...........1
10. 1994 ..... ..........18
11. 1995 ..... .........272
- - ---------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSORTED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... .........139 .........177 .........180 .........180 .........180 .........181
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........120 .........163 .........163 .........163 .........163
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........183 .........198 .........200 .........200
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........145 .........159 .........160
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........289 .........464
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........911
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... .........181
6. 1990 ..... .........163
7. 1991 ..... .........200
8. 1992 ..... .........161
9. 1993 ..... .........168
10. 1994 ..... .........986
11. 1995 ..... .......1,351
- - ---------------------------
</TABLE>
113
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ....21,325.. ....30,076.. ....32,375.. ....33,102.. ....33,332.. ....33,415..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....17,575.. ....30,254.. ....32,342.. ....32,889.. ....33,092..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....16,649.. ....27,231.. ....29,026.. ....29,539..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....16,233.. ....26,749.. ....28,702..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....17,558.. ....28,705..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....19,983..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ....33,435..
6. 1990 ..... ....33,132..
7. 1991 ..... ....29,662..
8. 1992 ..... ....29,165..
9. 1993 ..... ....30,512..
10. 1994 ..... ....32,680..
11. 1995 ..... ....22,825..
- - ---------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .......588.. .......394.. .......175.. ........21.. .......101.. ........39.. ........13.. .........8.. .........3..
2. 1986 ..... .....1,806.. .......561.. .......227.. .......105.. .......230.. ........72.. ........25.. .........5.. .........1..
3. 1987 ..... ....X X X... .....2,487.. .......574.. .......238.. .......472.. .......166.. ........52.. ........14.. .........5..
4. 1988 ..... ....X X X... ....X X X... .....3,660.. .......852.. .....1,311.. .......521.. .......171.. ........49.. ........12..
5. 1989 ..... ....X X X... ....X X X... ....X X X... .....3,917.. .....3,501.. .....1,158.. .......402.. .......139.. ........30..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....15,794.. .....3,062.. .......924.. .......311.. ........81..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....13,369.. .....2,710.. .......792.. .......221..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....13,741.. .....2,798.. .......685..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....14,405.. .....2,592..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....16,865..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... .........3..
2. 1986 ..... .........2..
3. 1987 ..... .........3..
4. 1988 ..... .........6..
5. 1989 ..... ........10..
6. 1990 ..... ........25..
7. 1991 ..... ........75..
8. 1992 ..... ........67..
9. 1993 ..... .......642..
10. 1994 ..... .....3,280..
11. 1995 ..... ....19,068..
- - ---------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECTED AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ....45,960.. ....46,894.. ....47,045.. ....47,080.. ....47,091.. ....47,094..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....43,053.. ....46,426.. ....46,568.. ....46,589.. ....46,595..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....38,490.. ....40,918.. ....41,016.. ....41,031..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....37,953.. ....40,090.. ....40,159..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....40,569.. ....42,753..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....47,107..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ....47,096..
6. 1990 ..... ....46,596..
7. 1991 ..... ....41,036..
8. 1992 ..... ....40,168..
9. 1993 ..... ....42,803..
10. 1994 ..... ....49,454..
11. 1995 ..... ....53,731..
- - ---------------------------
</TABLE>
114
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... .....1,347.. .....1,627.. .....1,948.. .....2,022.. .....2,041.. .....2,057..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......779.. .....1,531.. .....1,672.. .....1,715.. .....1,735..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......760.. .....1,251.. .....1,354.. .....1,405..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......756.. .....1,215.. .....1,340..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......739.. .....1,320..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......947..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... .....2,077..
6. 1990 ..... .....1,735..
7. 1991 ..... .....1,405..
8. 1992 ..... .....1,342..
9. 1993 ..... .....1,326..
10. 1994 ..... .....1,344..
11. 1995 ..... .......778..
- - ---------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ........18.. .........8.. .........2.. .........2.. ............
2. 1986 ..... ............ ............ ............ ............ ........32.. .........9.. .........3.. .........3.. ............
3. 1987 ..... ....X X X... ............ ............ ............ ........64.. ........28.. ........11.. .........2.. ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ .......163.. ........76.. ........36.. ........12.. .........1..
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ .......295.. .......137.. ........43.. ........19.. ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......800.. .......243.. ........77.. ........26.. .........2..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......681.. .......182.. ........67.. .........4..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......612.. .......168.. ........26..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......579.. ........44..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......543..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... .........1..
5. 1989 ..... ............
6. 1990 ..... .........2..
7. 1991 ..... .........3..
8. 1992 ..... ........21..
9. 1993 ..... ........42..
10. 1994 ..... .......182..
11. 1995 ..... .......745..
- - ---------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... .....2,553.. .....2,553.. .....2,799.. .....2,802.. .....2,805.. .....2,807..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .....1,978.. .....2,386.. .....2,399.. .....2,404.. .....2,404..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,757.. .....1,888.. .....1,897.. .....1,903..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,641.. .....1,788.. .....1,796..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,585.. .....1,753..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,861..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... .....2,838..
6. 1990 ..... .....2,404..
7. 1991 ..... .....1,903..
8. 1992 ..... .....1,797..
9. 1993 ..... .....1,761..
10. 1994 ..... .....2,010..
11. 1995 ..... .....1,934..
- - ---------------------------
</TABLE>
115
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
<TABLE>
<CAPTION>
SECTION 1
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
116
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5E - COMMERCIAL MULTIPLE PERIL
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ........43.. ........81.. ........84.. ........87.. ........87.. ........87..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ........65.. ........83.. ........84.. ........84.. ........84..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........47.. ........64.. ........67.. ........71..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........66.. ........98.. .......104..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........82.. .......120..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........92..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ........86..
6. 1990 ..... ........84..
7. 1991 ..... ........71..
8. 1992 ..... .......106..
9. 1993 ..... .......127..
10. 1994 ..... .......144..
11. 1995 ..... .......122..
- - ---------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ........12.. .........2.. .........2.. .........1.. ............
2. 1986 ..... ............ ............ ............ ............ .........8.. .........3.. .........1.. ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ .........5.. .........2.. ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ .........2.. .........1.. .........1.. .........1.. ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ .........5.. .........3.. ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........9.. .........1.. .........1.. .........1.. ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........21.. .........8.. .........3.. ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........34.. ........11.. .........5..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........50.. ........17..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........71..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... .........1..
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... .........6..
9. 1993 ..... .........9..
10. 1994 ..... ........14..
11. 1995 ..... ........69..
- - ---------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ........53.. ........93.. ........94.. ........94.. ........95.. ........95..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ........76.. ........97.. ........98.. .......100.. .......100..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........84.. .......100.. .......101.. .......101..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......119.. .......141.. .......144..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......167.. .......196..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......212..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ........95..
6. 1990 ..... .......100..
7. 1991 ..... .......101..
8. 1992 ..... .......146..
9. 1993 ..... .......200..
10. 1994 ..... .......227..
11. 1995 ..... .......253..
- - ---------------------------
</TABLE>
117
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 3A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
118
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS-MADE
SECTION 1B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 3B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
119
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ .........1.. .........1.. .........1.. .........1..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........1.. .........1.. .........1..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........2.. .........2..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........1..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... .........1..
8. 1992 ..... .........1..
9. 1993 ..... .........2..
10. 1994 ..... .........1..
11. 1995 ..... .........1..
- - ---------------------------
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ .........4.. .........1.. .........3.. .........1.. .........1..
2. 1986 ..... ............ ............ ............ ............ .........2.. .........1.. ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ .........5.. .........1.. .........1.. ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........2.. ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 3A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... .........1.. .........1.. .........1.. .........1.. .........1.. .........1..
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........1.. .........1.. .........1.. .........1..
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........2.. .........2.. .........2..
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........4.. .........7.. .........9..
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........2..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... .........1..
6. 1990 ..... .........1..
7. 1991 ..... .........2..
8. 1992 ..... .........9..
9. 1993 ..... .........2..
10. 1994 ..... .........1..
11. 1995 ..... .........1..
- - ---------------------------
</TABLE>
120
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS-MADE
SECTION 1B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 3B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSURED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
121
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURENCE
SECTION 1A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
- - ---------------------------
</TABLE>
SECTION 3A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
122
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 1B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
- - ---------------------------
</TABLE>
SECTION 3B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N O N E ... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ....X X X...
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
123
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------
Years in
Which Premiums 2 3 4 5 6 7 8 9
Were Earned
and Losses
Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... .....000..... ............. ............. ............. ............. ............. ............. .............
2. 1986 .......... ............. ............. ............. ............. ............. ............. ............. .............
3. 1987 .......... ....X X X.... ............. ............. ............. ............. ............. ............. .............
4. 1988 .......... ....X X X.... ....X X X.... ............. ............. ............. ............. ............. .............
5. 1989 .......... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. .............
6. 1990 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. .............
7. 1991 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
8. 1992 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
9. 1993 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ......18,237.
10. 1994 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------------
1
---------------------------
Years in
Which Premiums 10 11
Were Earned
and Losses
Were Incurred 1994 1995
- - -----------------------------------------------
<S> <C> <C>
1. Prior ......... ............. ............
2. 1986 .......... ............. ............
3. 1987 .......... ............. ............
4. 1988 .......... ............. ............
5. 1989 .......... ............. ............
6. 1990 .......... ............. ............
7. 1991 .......... ............. ............
8. 1992 .......... ............. ............
9. 1993 .......... ......18,237. .....18,237.
10. 1994 .......... ......20,437. .....20,437.
11. 1995 .......... ....X X X.... .....22,120.
- - -----------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------
Years in
Which Premiums 2 3 4 5 6 7 8 9
Were Earned
and Losses
Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... .....000..... ............. ............. ............. ............. ............. ............. .............
2. 1986 .......... ............. ............. ............. ............. ............. ............. ............. .............
3. 1987 .......... ....X X X.... ............. ............. ............. ............. ............. ............. .............
4. 1988 .......... ....X X X.... ....X X X.... ............. ............. ............. ............. ............. .............
5. 1989 .......... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. .............
6. 1990 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. .............
7. 1991 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
8. 1992 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
9. 1993 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........40.
10. 1994 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------------
1
---------------------------
Years in
Which Premiums 10 11
Were Earned
and Losses
Were Incurred 1994 1995
- - -----------------------------------------------
<S> <C> <C>
1. Prior ......... ............. ............
2. 1986 .......... ............. ............
3. 1987 .......... ............. ............
4. 1988 .......... ............. ............
5. 1989 .......... ............. ............
6. 1990 .......... ............. ............
7. 1991 .......... ............. ............
8. 1992 .......... ............. ............
9. 1993 .......... ..........40. ............
10. 1994 .......... ...........1. .........40.
11. 1995 .......... ....X X X.... ..........1.
- - -----------------------------------------------
</TABLE>
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------
Years in
Which Premiums 2 3 4 5 6 7 8 9
Were Earned
and Losses
Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... .....000..... ............. ............. ............. ............. ............. ............. .............
2. 1986 .......... ............. ............. ............. ............. ............. ............. ............. .............
3. 1987 .......... ....X X X.... ............. ............. ............. ............. ............. ............. .............
4. 1988 .......... ....X X X.... ....X X X.... ............. ............. ............. .............
5. 1989 .......... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
6. 1990 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
7. 1991 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... N O N E ............. .............
8. 1992 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
9. 1993 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
10. 1994 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------------
1
---------------------------
Years in
Which Premiums 10 11
Were Earned
and Losses
Were Incurred 1994 1995
- - -----------------------------------------------
<S> <C> <C>
1. Prior ......... ............. .............
2. 1986 .......... ............. .............
3. 1987 .......... ............. .............
4. 1988 .......... ............. .............
5. 1989 .......... ............. .............
6. 1990 .......... ............. .............
7. 1991 .......... ............. .............
8. 1992 .......... ............. .............
9. 1993 .......... ............. .............
10. 1994 .......... ............. .............
11. 1995 .......... ....X X X.... .............
- - -----------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------
Years in
Which Premiums 2 3 4 5 6 7 8 9
Were Earned
and Losses
Were Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... .....000..... ............. ............. ............. ............. ............. ............. .............
2. 1986 .......... ............. ............. ............. ............. ............. ............. ............. .............
3. 1987 .......... ....X X X.... ............. ............. ............. ............. ............. ............. .............
4. 1988 .......... ....X X X.... ....X X X.... ............. ............. ............. .............
5. 1989 .......... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
6. 1990 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
7. 1991 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... N O N E ............. .............
8. 1992 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
9. 1993 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
10. 1994 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------------
1
---------------------------
Years in
Which Premiums 10 11
Were Earned
and Losses
Were Incurred 1994 1995
- - -----------------------------------------------
<S> <C> <C>
1. Prior ......... ............. .............
2. 1986 .......... ............. .............
3. 1987 .......... ............. .............
4. 1988 .......... ............. .............
5. 1989 .......... ............. .............
6. 1990 .......... ............. .............
7. 1991 .......... ............. .............
8. 1992 .......... ............. .............
9. 1993 .......... ............. .............
10. 1994 .......... ............. .............
11. 1995 .......... ....X X X.... .............
- - -----------------------------------------------
</TABLE>
124
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 6E - COMMERCIAL MULTIPLE PERIL
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ......5,427. ......5,427.
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ......6,976.
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ......5,427.
10. 1994 ..... ......6,976.
11. 1995 ..... ......8,169.
- - ---------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ......1,873. ......1,813.
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ......2,253.
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ......1,813.
10. 1994 ..... ......2,253.
11. 1995 ..... ......1,579.
- - ---------------------------
</TABLE>
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITtED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........293. ........293.
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........287.
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ........293.
10. 1994 ..... ........287.
11. 1995 ..... ........109.
- - ---------------------------
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........184. ........184.
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........14.
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ........184.
10. 1994 ..... .........14.
11. 1995 ..... ............
- - ---------------------------
</TABLE>
125
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS-MADE
SECTION 1B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($00 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
126
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. 1988 ..... ............
2. 1989 ..... ............
3. 1990 ..... ............
4. 1991 ..... ............
5. 1992 ..... ............
6. 1993 ..... ............
7. 1994 ..... ............
8. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years 2 3 4 5 6 7 8 9 10
in Which
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. 1988 ..... ............
2. 1989 ..... ............
3. 1990 ..... ............
4. 1991 ..... ............
5. 1992 ..... ............
6. 1993 ..... ............
7. 1994 ..... ............
8. 1995 ..... ............
- - ---------------------------
</TABLE>
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 1
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. 1988 ..... ............
2. 1989 ..... ............
3. 1990 ..... ............
4. 1991 ..... ............
5. 1992 ..... ............
6. 1993 ..... ............
7. 1994 ..... ............
8. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($00 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. 1988 ..... ............
2. 1989 ..... ............
3. 1990 ..... ............
4. 1991 ..... ............
5. 1992 ..... ............
6. 1993 ..... ............
7. 1994 ..... ............
8. 1995 ..... ............
- - ---------------------------
</TABLE>
127
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years 11
in Which
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($00 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS-MADE
SECTION 1B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($00 OMITED)
---------------------------------------------------------------------------------------------------------------------
Years
in Which 2 3 4 5 6 7 8 9 10
Premiums Were
Earned and
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years
in Which 11
Premiums Were
Earned and
Losses Were
Incurred 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
128
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
($000 OMITTED)
SECTION 1
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------
2 3 4 5
Net Losses
Total Net and Expenses Loss Sensitive Total Net
Schedule P - Part 1 Losses and Unpaid on as Percentage Premiums
Expenses Loss Sensitive of Total Written
Unpaid Contracts
- - ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Homeowners/Farmowners.................................... .............. ............... ............... ..............
2. Private Passenger Auto Liability/Medical................. .............. ............... ............... ..............
3. Commercial Auto/Truck Liability/Medical................. .............. ............... ............... ..............
4. Workers' Compensation.................................... .............. ............... ............... ..............
5. Commercial Multiple Peril................................ .............. ............... ............... ..............
6. Medical Malpractice - Occurrence......................... .............. ............... ............... ..............
7. Medical Malpractice - Claims-made........................ .............. ............... ............... ..............
8. Special Liability........................................ .............. ............... ............... ..............
9. Other Liability - Occurrence............................. .............. ............... ............... ..............
10. Other Liability - Claims-made........................N 0 N E ............. ............... ..............
11. Special Property......................................... .............. ............... ............... ..............
12. Auto Physical Damage..................................... .............. ............... ............... ..............
13. Fidelity/Surety.......................................... .............. ............... ............... ..............
14. Other.................................................... .............. ............... ............... ..............
15. International............................................ .............. ............... ............... ..............
16. Reinsurance A............................................ .....X X X.... .....X X X..... .....X X X..... ....X X X.....
17. Reinsurance B............................................ .....X X X.... .....X X X..... .....X X X..... ....X X X.....
18. Reinsurance C............................................ .....X X X.... .....X X X..... .....X X X..... ....X X X.....
19. Reinsurance D............................................ .....X X X.... .....X X X..... .....X X X..... ....X X X.....
20. Products Liability - Occurrence.......................... .............. ............... ............... ..............
21. Products Liability - Claims-made......................... .............. ............... ............... ..............
22. Financial Guaranty/Mortgage Guaranty..................... .............. ............... ............... ..............
- - ----------------------------------------------------------------------------------------------------------------------------
23. Totals................................................... .............. ............... ............... ..............
- - ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------------------------------------
6 7
Net Premiums Loss Sensitive
Schedule P - Part 1 Written on as Percentage
Loss Sensitive of Total
Contracts
- - ----------------------------------------------------------------------------------------------
<S> <C> <C>
1. Homeowners/Farmowners.................................... .............. ................
2. Private Passenger Auto Liability/Medical................. .............. ................
3. Commercial Auto/Truck Liability/Medical................. .............. ................
4. Workers' Compensation.................................... .............. ................
5. Commercial Multiple Peril................................ .............. ................
6. Medical Malpractice - Occurrence......................... .............. ................
7. Medical Malpractice - Claims-made........................ .............. ................
8. Special Liability........................................ .............. ................
9. Other Liability - Occurrence............................. .............. ................
10. Other Liability - Claims-made............................ .............. ................
11. Special Property......................................... .............. ................
12. Auto Physical Damage..................................... .............. ................
13. Fidelity/Surety.......................................... .............. ................
14. Other.................................................... .............. ................
15. International............................................ .............. ................
16. Reinsurance A............................................ .....X X X.... ......X X X.....
17. Reinsurance B............................................ .....X X X.... ......X X X.....
18. Reinsurance C............................................ .....X X X.... ......X X X.....
19. Reinsurance D............................................ .....X X X.... ......X X X.....
20. Products Liability - Occurrence.......................... .............. ................
21. Products Liability - Claims-made......................... .............. ................
22. Financial Guaranty/Mortgage Guaranty..................... .............. ................
- - ----------------------------------------------------------------------------------------------
23. Totals................................................... .............. ................
- - ----------------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
--------------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9 10
Policies were
Issued 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years in Which 11
Policies were
Issued 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
--------------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9 10
Policies were
Issued 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------
1
-------------
Years in Which 11
Policies were
Issued 1995
- - ----------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
129
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS (CONTINUED)
SECTION 4
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------
1 NET EARNED PREMIUMS AT YEAR END ($000 OMITED)
-----------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... N O N E........ ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------
1
-----------------------------------------
Years in Which 9 10 11
Losses Were
Incurred 1993 1994 1995
- - ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............ ............. .............
2. 1986 ........ ............ ............. .............
3. 1987 ........ ............ ............. .............
4. 1988 ........ ............ ............. .............
5. 1989 ........ ............ ............. .............
6. 1990 ........ ............ ............. .............
7. 1991 ........ ............ ............. .............
8. 1992 ........ ............ ............. .............
9. 1993 ........ ............ ............. .............
10. 1994 ........ ...X X X.... ............. .............
11. 1995 ........ ...X X X.... ....X X X.... .............
- - ----------------------------------------------------------------
</TABLE>
SECTION 5
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------------------
1 NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITED)
-------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- - ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... .N O N E....... ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------
1
-----------------------------------------
Years in Which 9 10 11
Losses Were
Incurred 1993 1994 1995
- - ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ............. ............. .............
8. 1992 ........ ............. ............. .............
9. 1993 ........ ............. ............. .............
10. 1994 ........ ....X X X.... ............. .............
11. 1995 ........ ....X X X.... ....X X X.... .............
- - -----------------------------------------------------------------
</TABLE>
130
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
($000 OMITTED)
SECTION 1
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------
2 3 4 5
Net Losses
Total Net and Expenses Loss Sensitive Total Net
Schedule P - Part 1 Losses and Unpaid on as Percentage Premiums
Expenses Loss Sensitive of Total Written
Unpaid Contracts
- - ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Homeowners/Farmowners.................................... .............. ............... ............... ..............
2. Private Passenger Auto Liability/Medical................. .............. ............... ............... ..............
3. Commercial Auto/Truck Liability/Medical................. .............. ............... ............... ..............
4. Workers' Compensation.................................... .............. ............... ............... ..............
5. Commercial Multiple Peril................................ .............. ............... ............... ..............
6. Medical Malpractice - Occurrence......................... .............. ............... ............... ..............
7. Medical Malpractice - Claims-made........................ .............. ............... ............... ..............
8. Special Liability........................................ .............. ............... ............... ..............
9. Other Liability - Occurrence............................. .............. ............... ............... ..............
10. Other Liability - Claims-made......................... N O N E ............... ............... ..............
11. Special Property......................................... .............. ............... ............... ..............
12. Auto Physical Damage..................................... .............. ............... ............... ..............
13. Fidelity/Surety.......................................... .............. ............... ............... ..............
14. Other.................................................... .............. ............... ............... ..............
15. International............................................ .............. ............... ............... ..............
16. Reinsurance A............................................ .............. ............... ............... ..............
17. Reinsurance B............................................ .............. ............... ............... ..............
18. Reinsurance C............................................ .............. ............... ............... ..............
19. Reinsurance D............................................ .............. ............... ............... ....X X X.....
20. Products Liability - Occurrence.......................... .............. ............... ............... ..............
21. Products Liability - Claims-made......................... .............. ............... ............... ..............
22. Financial Guaranty/Mortgage Guaranty..................... .............. ............... ............... ..............
- - ----------------------------------------------------------------------------------------------------------------------------
23. Totals................................................... .............. ............... ............... ..............
- - ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------------------------------------
6 7
Net Premiums Loss Sensitive
Schedule P - Part 1 Written on as Percentage
Loss Sensitive of Total
Contracts
- - ----------------------------------------------------------------------------------------------
<S> <C> <C>
1. Homeowners/Farmowners.................................... .............. ................
2. Private Passenger Auto Liability/Medical................. .............. ................
3. Commercial Auto/Truck Liability/Medical................. .............. ................
4. Workers' Compensation.................................... .............. ................
5. Commercial Multiple Peril................................ .............. ................
6. Medical Malpractice - Occurrence......................... .............. ................
7. Medical Malpractice - Claims-made........................ .............. ................
8. Special Liability........................................ .............. ................
9. Other Liability - Occurrence............................. .............. ................
10. Other Liability - Claims-made............................ .............. ................
11. Special Property......................................... .............. ................
12. Auto Physical Damage..................................... .............. ................
13. Fidelity/Surety.......................................... .............. ................
14. Other.................................................... .............. ................
15. International............................................ .............. ................
16. Reinsurance A............................................ .............. ................
17. Reinsurance B............................................ .............. ................
18. Reinsurance C............................................ .............. ................
19. Reinsurance D............................................ .....X X X.... ......X X X.....
20. Products Liability - Occurrence.......................... .............. ................
21. Products Liability - Claims-made......................... .............. ................
22. Financial Guaranty/Mortgage Guaranty..................... .............. ................
- - ----------------------------------------------------------------------------------------------
23. Totals................................................... .............. ................
- - ----------------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
--------------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9 10
Policies were
Issued 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ---------------------------
1
------------
Years in Which 11
Policies were
Issued 1995
- - ---------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------------------------------------------------------
1 BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
--------------------------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8 9 10
Policies were
Issued 1986 1987 1988 1989 1990 1991 1992 1993 1994
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
- - -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------
1
-------------
Years in Which 11
Policies were
Issued 1995
--------------------------
<S> <C>
1. Prior .... ............
2. 1986 ..... ............
3. 1987 ..... ............
4. 1988 ..... ............
5. 1989 ..... ............
6. 1990 ..... ............
7. 1991 ..... ............
8. 1992 ..... ............
9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
- - ---------------------------
</TABLE>
131
131
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
AFFILIATED COMPANIES
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS (CONTINUED)
SECTION 4
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------
1 NET EARNED PREMIUMS AT YEAR END ($000 OMITED)
-----------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- - -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... N O N E........ ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------
1
-----------------------------------------
Years in Which 9 10 11
Losses Were
Incurred 1993 1994 1995
- - ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............ ............. .............
2. 1986 ........ ............ ............. .............
3. 1987 ........ ............ ............. .............
4. 1988 ........ ............ ............. .............
5. 1989 ........ ............ ............. .............
6. 1990 ........ ............ ............. .............
7. 1991 ........ ............ ............. .............
8. 1992 ........ ............ ............. .............
9. 1993 ........ ............ ............. .............
10. 1994 ........ ...X X X.... ............. .............
11. 1995 ........ ...X X X.... ....X X X.... .............
- - ----------------------------------------------------------------
</TABLE>
SECTION 5
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------------------
1 NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITED)
-------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- - ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... .N O N E....... ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - ----------------------------------------------------------------
1
-----------------------------------------
Years in Which 9 10 11
Losses Were
Incurred 1993 1994 1995
- - ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ............. ............. .............
8. 1992 ........ ............. ............. .............
9. 1993 ........ ............. ............. .............
10. 1994 ........ ....X X X.... ............. .............
11. 1995 ........ ....X X X.... ....X X X.... .............
- - -----------------------------------------------------------------
</TABLE>
SECTION 6
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------------------
1 INCURRED ADJUSTABLE COMMISSIONS REPORTED AT YEAR END ($000 OMITED)
-------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- - ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... N O N E........ ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------------------------------
1
-----------------------------------------
Years in Which 9 10 11
Losses Were
Incurred 1993 1994 1995
- - ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ............. ............. .............
8. 1992 ........ ............. ............. .............
9. 1993 ........ ............. ............. .............
10. 1994 ........ ....X X X.... ............. .............
11. 1995 ........ ....X X X.... ....X X X.... .............
- - -----------------------------------------------------------------
</TABLE>
SECTION 7
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------------------
1 RESERVES FOR COMMISSION ADJUSTMENTS AT YEAR END ($000 OMITED)
-------------------------------------------------------------------------------------------------
Years in Which 2 3 4 5 6 7 8
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- - ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ............. ............. ............. ............. ............. ............. .............
2. 1986 ........ ............. ............. ............. ............. ............. ............. .............
3. 1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
4. 1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
5. 1989 ........ ....X X X.... ....X X X.... ....X X X.... N O N E........ ............. .............
6. 1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
7. 1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
8. 1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............
9. 1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
10. 1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
- - -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- - -----------------------------------------------------------------
1
-----------------------------------------
Years in Which 9 10 11
Losses Were
Incurred 1993 1994 1995
- - ----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ....... ............. ............. .............
2. 1986 ........ ............. ............. .............
3. 1987 ........ ............. ............. .............
4. 1988 ........ ............. ............. .............
5. 1989 ........ ............. ............. .............
6. 1990 ........ ............. ............. .............
7. 1991 ........ ............. ............. .............
8. 1992 ........ ............. ............. .............
9. 1993 ........ ............. ............. .............
10. 1994 ........ ....X X X.... ............. .............
11. 1995 ........ ....X X X.... ....X X X.... .............
- - -----------------------------------------------------------------
</TABLE>
132
