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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(MARK ONE)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER: 0-15196
US FACILITIES CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 33-0097221
(STATE OR OTHER (IRS EMPLOYER
JURISDICTION OF IDENTIFICATION NO.)
INCORPORATION OR
ORGANIZATION)
650 TOWN CENTER DRIVE, SUITE 1600, COSTA MESA, CA 92626
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (714) 549-1600
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
NONE
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
COMMON STOCK, PAR VALUE $.01 PER SHARE
COMMON STOCK PURCHASE RIGHTS
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. YES X NO
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of the Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]
Aggregate Market Value of Voting Stock held by non-affiliates of the
Registrant as of March 21, 1996: $95,358,126 (5,261,138 shares at the closing
price of $18.125 per share). For this purpose, all shares held by officers and
directors of the Registrant are considered to be held by affiliates, but
neither the Registrant nor such persons concede that they are affiliates of
the Registrant.
Number of Shares of Common Stock of the Registrant outstanding as of March
21, 1996: 5,833,848
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant's 1995 Annual Report to Stockholders are
incorporated by reference into Part II of this Form 10-K. Portions of the
Registrant's definitive Proxy Statement to be filed within 120 days after
December 31, 1995, are incorporated by reference into Part III of this Form
10-K.
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<PAGE>
PART I
ITEM 1. BUSINESS
GENERAL INFORMATION
The Registrant, US Facilities Corporation (the "Company"), is a Delaware
holding company formed in 1982 which, through its subsidiaries, operates as a
specialty insurance group. The Company's two principal operating units are
USBenefits Insurance Services, Inc. ("USBenefits") and USF RE INSURANCE
COMPANY ("USF RE"). USBenefits underwrites, manages and markets medical stop-
loss coverage nationwide for The Continental Insurance Company
("Continental"), one of the CNA Insurance Companies ("CNA"), an unaffiliated
insurance company, in exchange for management fees. Medical stop-loss
insurance protects self-insured employers against the risk of exposure to
excessive losses by limiting their liability to a predetermined amount. Self-
insured plans permit employers to design employee benefit coverages structured
to meet their specific needs, allow employers to exercise more control over
their health insurance costs, and provide health coverages that might not
otherwise be available. USBenefits also markets other employee benefit related
products on behalf of several national life insurance companies.
USF RE is a property/casualty reinsurance company whose primary business is
the reinsurance of 50% of the medical stop-loss coverage underwritten by
USBenefits for Continental and the reinsurance of property/casualty accounts
produced by independent sources. Its subsidiary, USF Insurance Company
("USFIC"), writes excess and surplus lines insurance on a direct basis.
FINANCIAL INFORMATION RELATING TO BUSINESS SEGMENTS
The Company's operations are classified into two business segments: (1)
medical stop-loss and employee benefit products (which include the revenues
from commissions and fees of the Company, and from reinsurance of 50% of its
medical stop-loss business); and (2) property/casualty reinsurance and
insurance underwriting. The medical stop-loss and employee benefits segment
produced 73%, 80% and 81%, and the property/casualty segment produced 26%, 20%
and 18% of the Company's consolidated revenues for 1995, 1994 and 1993,
respectively.
See "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS" and also "Note 9 of Notes to CONSOLIDATED FINANCIAL
STATEMENTS," incorporated herein by reference from the Company's 1995 Annual
Report to Stockholders under Items 7 and 8 hereof, respectively.
MEDICAL STOP-LOSS AND EMPLOYEE BENEFIT PRODUCTS
GENERAL
Since 1980, USBenefits has had a mutually exclusive agreement to underwrite
and manage medical stop-loss coverage for Continental. Such agreement provides
that USBenefits is responsible for designing medical stop-loss products,
marketing the products, underwriting risks, collecting premiums, administering
coverage agreements, investigating and settling claims and making claim
payments within specified limits. While USBenefits participates in the setting
of rates and underwriting standards, which are the ultimate responsibility of
Continental, it does not insure any risks in its role as underwriting manager;
all insurance risks are borne by Continental and its reinsurers, including USF
RE. See "BUSINESS--MEDICAL STOP-LOSS AND EMPLOYEE BENEFIT PRODUCTS--MEDICAL
STOP-LOSS REINSURANCE" herein.
Under its current management agreement with Continental, USBenefits is paid
management fees for its services which are a percentage of premiums collected.
The management agreement may be terminated by either party at any December 31
upon 90 days prior notice, and can also be terminated upon the occurrence of
certain events. The management agreement provides that during its term and for
a period ranging from 12 to 18 months following termination, Continental will
not solicit or take away USBenefits' accounts or production sources, and
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that upon termination USBenefits has the right to the expirations and renewals
of the medical stop-loss business. The Company believes that these provisions
permit USBenefits to move the medical stop-loss business to another insurance
company if its relationship with Continental were to terminate. Alternatively,
USBenefits could write medical stop-loss coverage on a direct basis through
its affiliate, USF RE, which is currently licensed to issue such coverage in
44 states and the District of Columbia.
USBenefits also markets various employee benefit insurance products on
behalf of several large national life insurance companies. Other than
Continental, no one insurance company, third party administrator ("TPA") or
insurance producer accounts for 10% or more of USBenefits' revenues.
In mid-1992 the Company began development of a medical bill review business.
During 1995 the Company determined that the medical bill review business was
no longer viable and terminated its operations in May. Consolidated pre-tax
results for 1995, 1994 and 1993 include losses from this bill review operation
of $1,156,000, $1,136,000 and $1,492,000, respectively.
MARKETING
USBenefits markets and distributes its medical stop-loss products through a
network of TPAs, insurance agents, brokers and consultants (collectively
"Producers"). Producers have non-exclusive arrangements with USBenefits that
enable them to submit requests for stop-loss coverage quotations on behalf of
their self-insured clients. Continental may pay a fee or commission to
Producers for placing the coverage, the amount of which is based on a
percentage of the premium written and is negotiated on a case-by-case basis.
Additionally, USBenefits may pay an annual production bonus to Producers based
on the amount of new business and rate of retention of accounts during the
calendar year. USBenefits markets its products to a variety of employers,
which includes both large and small employee groups.
PRODUCTS
Medical Stop-Loss. USBenefits offers two types of medical stop-loss
products: specific excess and aggregate excess. Employers can elect to
purchase specific excess coverage only, or a combination of specific and
aggregate coverage. USBenefits does not offer aggregate coverage separately.
Generally, self-insured employers purchase a combination of specific and
aggregate medical stop-loss coverage in order to minimize their exposure.
Medical stop-loss coverage is written on a basic form which can be
customized to meet the employer's individual needs and ability to retain risk.
Medical stop-loss coverage indemnifies only the employer for its obligations
under its self-insured plan of medical benefits; no plan participant or
beneficiary is covered by the Continental medical stop-loss policy.
Provider Capitation. In 1994 USBenefits commenced the marketing,
underwriting and managing of a provider capitation product on behalf of
Continental. This product limits the exposure which providers of medical
services incur when they enter into capitated fee arrangements; it protects
these providers from excessive losses that can arise when expenses exceed a
predetermined level. Continental pays USBenefits management fees for its
services, which are a percentage of premiums collected.
UNDERWRITING MANAGEMENT
Under its agreement with Continental, USBenefits, with the assistance of USF
RE, provides the services necessary to underwrite and service the medical
stop-loss business, including, but not limited to: (i) selecting TPAs and
Producers; (ii) accepting medical stop-loss risks and issuing coverage
agreements on behalf of Continental within mutually agreed upon underwriting
and pricing guidelines; and (iii) processing employers' claims for
reimbursement under medical stop-loss agreements on behalf of Continental.
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MEDICAL STOP-LOSS REINSURANCE
USF RE reinsures a portion of the medical stop-loss business and the
provider capitation business underwritten by USBenefits. Under the reinsurance
agreement with Continental, USF RE is responsible for 50% of Continental's
liability under such contracts issued through USBenefits. Continental's
liability under medical stop-loss contracts varies per account, but in no
event can exceed $2,000,000 lifetime per individual self-insured plan
participant or $2,000,000 in the aggregate per agreement year for each self-
insured employer account. Continental's liability under provider capitation
contracts generally is limited to a maximum of $1,000,000 per individual
participant and up to a maximum of $5,000,000 for all participants. In
addition, USF RE is responsible for a proportionate share of loss adjustment
expenses and any liability incurred by Continental for extra-contractual or
punitive damages.
The amount of premium ceded by Continental to USF RE under the reinsurance
agreement is equal to a proportionate share of the original gross premiums
written by Continental, less a ceding commission paid by USF RE to Continental
which covers Continental's costs of acquiring and servicing such business.
PROPERTY/CASUALTY UNDERWRITING
GENERAL
USF RE underwrites property/casualty reinsurance which it secures from
numerous reinsurance intermediaries and directly from unaffiliated insurance
companies. USF RE is licensed to write various lines of insurance in 46 states
and the District of Columbia. USF RE and USFIC share a pooled A- (Excellent)
rating from A.M. Best Company ("A.M. Best"), which reflects A.M. Best's
evaluation that these companies have exhibited "excellent overall performance"
and have "a strong ability to meet obligations to their policyholders over a
long period of time." During the third quarter of 1995, USF RE ceased writing
plate glass insurance, which accounted for 3%, 5% and 5%, of USF RE's premium
earned in 1995, 1994 and 1993, respectively.
PROPERTY/CASUALTY REINSURANCE
Gross reinsurance premiums written by the Company's property/casualty
segment were $50,915,000 in 1995, an increase of 42% as compared to 1994
premiums written of $35,760,000, which was an increase of 38% over $25,952,000
in premiums written during 1993. The ceding companies of one client
organization accounted for a total for 27%, 17% and 13% of gross premiums
written in the property/casualty segment in 1995, 1994 and 1993, respectively.
General. USF RE offers a variety of reinsurance coverages in selected
property/casualty lines. In general, reinsurance coverage is provided on the
basis of the underwriter's evaluation of the acceptability of the risk to be
assumed, the adequacy of the premium, the potential exposure of the line of
business to be underwritten, the quality of the primary insurers' operations
and the ceding commission. USF RE's property/casualty premiums are generated
from writing facultative and treaty reinsurance. Facultative is the
reinsurance of one account at a time, while reinsurance treaties cover a
portion of all policies written by another insurer in a particular risk
category.
Product Lines. USF RE concentrates its casualty writings on three principal
lines: general liability, commercial automobile liability and products
liability. USF RE provides casualty reinsurance for primary as well as excess
policies, with the majority of its writings in low excess layers. USF RE
provides a broad range of reinsurance coverages for most types of property
exposures, subject to adequate underwriting information and proper rates and
forms. All Risk and Difference in Conditions coverages represent the majority
of property premiums written; other coverages include fire and extended
coverage, as well as allied lines and inland marine.
Retrocessions. USF RE has entered into retrocession (reinsurance) agreements
which mitigate USF RE's exposure to losses and therefore allow it to increase
the limits it can offer on each property/casualty account. Under its current
catastrophe retrocession arrangements, USF RE purchases approximately 95% of
$24,500,000
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of catastrophic protection in excess of a retention of $3,500,000 covering
property facultative and surplus lines losses. Within this cover, USF RE has
$6,500,000 of catastrophic protection in excess of the same retention of
$3,500,000 covering property treaty losses. Management believes this coverage
is adequate to protect the Company from excessive catastrophic losses.
USF RE evaluates the financial condition of potential retrocessionaires to
determine whether to cede retrocessional coverage to such companies. USF RE's
retrocession agreements are placed with unaffiliated companies which
management believes to be financially secure and experienced in this type of
business. Reinsurance recoverables are monitored continually, and any
retrocessionaire not qualified in USF RE's state of domicile, Massachusetts,
is requested to post security in the amount of its estimated liability to USF
RE.
Surplus Lines. USFIC, a Pennsylvania domiciled insurance company, is
eligible to offer surplus lines coverages in 29 states and the District of
Columbia and is also licensed as an admitted insurer in New York and Florida.
Since acquiring USFIC, USF RE has increased USFIC's policyholders' surplus to
over $15,000,000 at December 31, 1995. USFIC's business consists primarily of
writing commercial property/casualty coverages on a surplus lines basis.
USFIC's operations contributed 13%, 8% and 4% of the property/casualty
underwriting segment's premiums earned in 1995, 1994 and 1993, respectively.
STATUTORY FINANCIAL INFORMATION
COMBINED RATIO
The combined ratio is the traditional indicator of the potential
underwriting profitability of an insurance company's business. It reflects the
percentage of losses and loss adjustment expenses incurred to earned premiums
(the "loss ratio") plus the percentage of production and servicing expenses to
net written premiums (the "underwriting expense ratio"). The table below sets
forth USF RE's consolidated loss ratio, underwriting expense ratio and
combined ratio determined in accordance with statutory accounting practices
("SAP") for the years indicated. Management believes that USF RE's combined
ratio is generally better than the combined ratio for the reinsurance industry
as a whole and is well within the requirements of regulatory agencies.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------
1995 1994 1993
------- -------- --------
<S> <C> <C> <C>
Loss ratio............................................ 67.6 69.1 69.5
Underwriting expense ratio............................ 32.1 34.7 36.0
------- -------- --------
Combined ratio........................................ 99.7 103.8 105.5
======= ======== ========
</TABLE>
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES
Insurance and reinsurance companies are required to maintain reserves for
losses and loss adjustment expenses ("LAE") which are intended to cover the
ultimate cost of settling all losses incurred and unpaid, including an
estimate of those not yet reported to the insurer, in order to properly match
the expected losses incurred to the related earned premium.
Reserves for medical stop-loss reinsurance are established on the basis of
the most widely used techniques for determining loss reserves for this line of
business, such as trended cost per covered person and loss payment pattern
analysis. Property/casualty loss reserves are determined by customary industry
methods of evaluating reported claims on the basis of the type of loss
involved, knowledge of the circumstances surrounding the claim, policy
provisions relating to the type of loss, and by estimating the cost of
unreported claims on the basis of statistical information for occurrences
which have not yet been reported to the carrier.
Reserves are adjusted from time to time based on monitoring by the insurer.
USF RE conducts, on a quarterly basis, an in-depth analysis of its incurred
but not reported losses and bulk reserves relative to recent experience and
trends, and adjusts such reserves upward or downward as necessary to maintain
the reserves at a
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level which USF RE deems to be sufficient to provide for all claims incurred
through the reporting date. Such reserves are regularly reviewed by USF RE's
independent actuary and auditors.
Loss reserve estimates are not precise because they are based on predictions
of future events, as well as other variable factors, including changes in the
legal system which can affect the results of litigated claims. Reserves for
losses and LAE are estimates only. It is possible that an insurer's ultimate
liability may be greater or less than such estimates. At USF RE, no explicit
provisions are made for inflation, but inflationary trends are considered when
setting reserves. USF RE does not discount its reserves to their present
value. USF RE has no known pre-1986 environmental or asbestos exposures.
The loss settlement period for certain types of insurance claims, such as
casualty reinsurance, may be many years, and during such time it often becomes
necessary to adjust the estimate of liability on a claim either upward or
downward. In the last few years various factors (including escalation of
repair costs, the size and unpredictability of jury awards and inflation) have
necessitated periodic upward adjustments in reserves by most property/casualty
insurers, including USF RE. In addition, USF RE's relatively recent entry into
the assumed casualty reinsurance business in 1987 contributes to the level of
uncertainty associated with USF RE's estimates for loss and LAE reserves. Due
to USF RE's size, should any future adjustments of its reserves become
necessary, such adjustments could have a proportionately greater impact upon
its reported earnings and surplus than they would have upon the earnings and
surplus of a much larger insurance company.
LAE reserves are intended to cover the ultimate cost of investigating and
settling all losses. LAE reserves are estimated throughout each year based on
historical data and factors similar to those used in estimating loss reserves,
and are adjusted from time to time as management deems appropriate.
In 1987, USF RE established a liability for uncollectible reinsurance
related to adverse development in its discontinued general liability and
special multiple peril ("GL/SMP") liability lines of business to recognize
that certain amounts would not be recoverable from a former reinsurer. Under
generally accepted accounting principles ("GAAP"), that provision was recorded
as additional loss and LAE reserves, and has been adjusted periodically as
claims develop. USF RE has not experienced any other material unrecoverable
reinsurance.
In 1992 the Company adopted the Statement of Financial Accounting Standards
("SFAS") No. 113, "Accounting and Reporting for Reinsurance of Short-Duration
and Long-Duration Contracts," which changes certain GAAP accounting
presentation by insurance enterprises for reinsurance transactions. Under SFAS
No. 113, insurance receivables, such as ceded loss and LAE reserves, are
required to be reported as assets rather than reductions of gross liabilities.
The following table reconciles USF RE's consolidated reserve for losses and
LAE from SAP to amounts based on GAAP:
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------------
1995 1994 1993
------- ------- -------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
Statutory loss and LAE reserves........................ $62,420 $56,304 $51,358
Reserves ceded to reinsurers........................... 16,426 13,292 7,184
Provision for uncollectible reinsurance................ 48 51 228
------- ------- -------
GAAP loss and LAE reserves............................. $78,894 $69,647 $58,770
======= ======= =======
</TABLE>
Except for the foregoing, there is no difference in USF RE's reserves for
losses and LAE whether determined in accordance with GAAP or SAP.
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The table set forth below provides a reconciliation of beginning and ending
consolidated statutory liability balances as of December 31, 1995, 1994 and
1993. Management will continue to evaluate and monitor reserves on all of its
businesses, and management believes that USF RE's consolidated reserves at
December 31, 1995 are adequate to cover the ultimate cost of settlement of all
losses incurred through that date.
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------
1995 1994 1993
------- ------- -------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
Reserves for losses and
LAE at beginning of
period................... $56,304 $51,358 $45,483
Incurred losses and LAE:
Provision for losses and
LAE for claims occurring
in the current year..... 74,935 61,941 56,081
Increase in estimated
losses and
LAE for claims occurring
in prior years.......... 2,808 2,425 1,636
Payments:
Losses and LAE payments
for claims occurring
during:
The current year........ (39,511) (33,345) (29,652)
Prior years............. (32,116) (26,075) (22,190)
------- ------- -------
Reserve for losses and LAE
at end of period......... $62,420 $56,304 $51,358
======= ======= =======
</TABLE>
The table on the following page presents the development of USF RE's
consolidated statutory balance sheet liability for losses and LAE for 1983
through 1995. The top line of the table shows the estimated liability for
unpaid losses and LAE recorded at December 31 for each of the indicated years.
This liability represents the estimated amount of losses and LAE for claims
arising in all years that are unpaid at the balance sheet date, including
losses that had been incurred but not yet reported.
The upper portion of the table shows the re-estimated amount of the
previously recorded liability based on experience as of the end of each
succeeding year. The estimate is increased or decreased as more information
becomes known about the frequency and severity of claims for individual years.
The material increase in loss reserves beginning in 1986 is primarily
attributable to USF RE's commencement of and, thereafter, significant growth
in its reinsurance business. The cumulative redundancy or deficiency
represents the total change in reserves from the original balance sheet date
to December 31, 1995, and is a measure of the accuracy of the original
estimate. The significant deficiencies shown for years 1983 through 1987 are
related to the aforementioned discontinued GL/SMP lines of business. Such
increases related to losses incurred in 1983 through 1984, and therefore
affect reserve amounts in all years from 1983 through 1995.
The lower portion of the table on the following page shows the cumulative
amount paid with respect to the previously recorded liability as of the end of
each succeeding year, and a reconciliation of the gross and net amounts for
the latest two years.
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<TABLE>
<CAPTION>
1983 1984 1985 1986 1987 1988 1989 1990 1991
------ ------ ------ ------ ------ ------- ------- ------- -------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Liability
for Losses/LAE--End
of Year........ $3,010 $3,032 $2,684 $6,462 $8,623 $17,660 $28,697 $35,975 $36,481
Net Liability
re-estimated as of:
1 year later......... 3,501 3,748 3,747 8,736 11,143 17,003 29,715 33,871 37,528
2 years later......... 4,170 4,721 5,504 10,233 11,622 17,752 29,619 32,720 36,381
3 years later......... 5,043 6,467 7,085 10,788 12,370 18,290 29,694 31,654 36,037
4 years later......... 6,366 8,031 7,643 11,299 12,717 18,294 28,581 30,222 34,529
5 years later......... 7,174 8,532 8,112 11,702 12,154 18,063 27,392 29,610
6 years later......... 7,537 8,990 8,472 11,091 12,288 17,994 26,815
7 years later......... 7,873 9,291 7,861 11,205 12,326 17,707
8 years later......... 8,284 8,687 7,975 11,244 12,304
9 years later......... 7,772 8,803 8,014 11,222
10 years later......... 7,861 8,842 7,992
11 years later......... 7,900 8,820
12 years later......... 7,878
Net Cumulative
redundancy/(deficiency).. (4,868) (5,788) (5,308) (4,760) (3,681) (47) 1,882 6,365 1,952
Cumulative %.... (162)% (191)% (198)% (74)% (43)% (0)% 7% 18% 5%
Paid (cumulative) as of:
1 year later......... 946 1,244 1,354 5,616 6,988 9,373 14,255 13,918 14,516
2 years later......... 1,989 2,389 2,573 6,734 8,424 11,676 18,265 17,497 17,832
3 years later......... 3,088 3,578 3,586 7,881 9,638 14,959 21,095 19,946 20,164
4 years later......... 4,145 4,562 4,736 8,766 11,472 15,693 21,833 21,276 24,004
5 years later......... 5,013 5,660 5,578 10,509 11,741 15,927 22,653 22,868
6 years later......... 5,968 6,474 7,279 10,732 11,920 16,606 23,480
7 years later......... 6,658 8,105 7,502 10,899 12,028 16,122
8 years later......... 7,232 8,328 7,669 10,998 12,042
9 years later......... 7,417 8,495 7,768 11,012
10 years later......... 7,561 8,594 7,782
11 years later......... 7,660 8,608
12 years later......... 7,674
<CAPTION>
1992 1993 1994 1995
------ ------- ------- -------
<S> <C> <C> <C> <C>
Net Liability
for Losses/LAE--End
of Year........ $45,483 $51,358 $56,304 $62,420
Net Liability
re-estimated as of:
1 year later......... 47,119 53,783 59,112
2 years later......... 47,482 52,625
3 years later......... 46,786
4 years later.........
5 years later.........
6 years later.........
7 years later.........
8 years later.........
9 years later.........
10 years later.........
11 years later.........
12 years later.........
Net Cumulative
redundancy/(deficiency).. (303) (1,268) (2,808)
Cumulative %.... (1)% (2)% (5)%
Paid (cumulative) as of:
1 year later......... 22,190 26,075 32,116
2 years later......... 26,374 33,952
3 years later......... 31,747
4 years later.........
5 years later.........
6 years later.........
7 years later.........
8 years later.........
9 years later.........
10 years later.........
11 years later.........
12 years later.........
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
Gross Liability--End of Year..................... 51,803 58,542 69,597 78,846
Reinsurance Recoverable.......................... 6,320 7,184 13,293 16,426
Net Liability--End of Year....................... 45,483 51,358 56,304 62,420
Gross Re-Estimated Liability--Latest............. 52,987 61,095 74,107
Re-Estimated Recoverable--Latest................. 5,868 7,312 14,995
Net Re-Estimated Liability--Latest............... 47,119 53,783 59,112
Gross Cumulative Deficiency...................... (1,184) (2,553) (4,510)
</TABLE>
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INVESTMENTS
Investment income is an important source of revenue for the Company. The
return on its investment portfolio has a significant bearing on the Company's
results of operations. Funds of the Company's insurance company subsidiaries
available for investment arise from their capital and surplus, as well as from
the difference in timing between the receipt of premiums and the payment of
claims. Investment income is also generated from investments in short-term
securities of the premiums received and held in trust by USBenefits pending
payment to Continental and other insurance carriers and from investment of
commissions and fees received by USBenefits. In the fourth quarters of 1994
and 1995, the Company contributed $20,000,000 and $10,500,000, respectively,
to USF RE, bringing its policyholders' surplus to over $100,000,000 at
December 31, 1995.
The Company adopted SFAS No. 115, "Accounting for Certain Investments in
Debt and Equity Securities," effective as of January 1, 1994. This
pronouncement deals with the manner in which fixed maturity securities are
valued in financial statements. For further information, see "Note 1 of Notes
to CONSOLIDATED FINANCIAL STATEMENTS," incorporated by reference from the
Company's Annual Report to Stockholders under Item 8 herein.
The Company's investment policy is determined in accordance with guidelines
established by the Investment Committee of the Company's Board of Directors,
subject to state regulatory restrictions on the nature and extent of
investments of insurance companies. Generally speaking, the Company's policy
is to acquire investment grade bonds with maturities timed to meet the
liquidity needs of the business, a limited amount of high-grade equity
securities, certificates of deposit and short-term securities. This policy is
substantially more restrictive than applicable insurance laws or regulations,
because such laws and regulations permit some investment in high-yield bonds,
stocks, real estate, and other vehicles which may have substantially more
volatility and risk than USF RE's investments. At year-end 1995, approximately
99% of the fixed income portfolio was invested in securities rated A or
better, with maturity dates ranging from 1-30 years. Short-term investments
are comprised of bank certificates of deposit, tax-exempt auction rate
preferred stocks which are redeemable at par value every 7-270 days, and tax-
exempt money market funds. For further information, see "Note 2 of Notes to
CONSOLIDATED FINANCIAL STATEMENTS," incorporated by reference from the
Company's Annual Report to Stockholders under Item 8 herein.
COMPETITION
The insurance and reinsurance industries are highly competitive and consist
of a large number of companies, many of which have financial resources,
employees, facilities and experience substantially in excess of those of the
Company.
MEDICAL STOP-LOSS
The medical stop-loss business is highly competitive and involves a
diversified field of participants from small, start-up operations to large,
well-established organizations such as USBenefits. In recent years there has
been significant growth in the number of medical stop-loss providers.
Currently the Company believes that there are over 200 providers of medical
stop-loss coverage, as compared to approximately 120 providers in 1990. Based
on its over-15 years of experience in the medical stop-loss business, the
Company believes that it is the largest single issuer of medical stop-loss
coverage in the United States. However, other large and established companies
offer medical stop-loss products and services similar to those offered by
USBenefits, and have large, well-established sales forces and ample resources
at their disposal.
USBenefits currently relies primarily on its long-standing relationships
with independent TPAs as a source of business, as well as newer relationships
with insurance agents, brokers and consultants. USBenefits must compete for
its business by offering competitively priced products, providing high
quality, timely services and paying commissions which are competitive.
USBenefits believes that the financial strength of Continental and its A-
(Excellent) rating from A.M. Best are positive factors in USBenefits'
competitive position.
8
<PAGE>
PROPERTY/CASUALTY REINSURANCE
Competition in the reinsurance business is based on many factors, including
a reinsurer's perceived overall financial strength, premiums charged, A.M.
Best rating, services offered, claims handling, experience in the lines of
business written and the number of jurisdictions in which a reinsurer is
authorized to do business.
The reinsurance market has two basic segments: reinsurers that primarily
obtain their business directly from ceding insurance companies, and those that
primarily obtain business through reinsurance intermediaries. USF RE obtains
the majority of its property/casualty business through reinsurance
intermediaries. USF RE's competition in this field includes numerous major
international and domestic insurance and reinsurance companies and
underwriting syndicates. Management believes that while USF RE's competitive
position may have historically been negatively affected by its relatively
small surplus and the lack of an A.M. Best rating, as a result of the increase
of its surplus to over $100,000,000 and the A- (Excellent) rating from A.M.
Best, USF RE's competitive position has been improved.
The reinsurance marketplace has been and continues to be highly competitive.
Due to losses caused by various natural disasters during the latter half of
1992 and continuing through 1995, both demand and rates for some segments of
property reinsurance increased. This has caused a certain amount of relaxation
in the competitive environment in this line of business. However, the overall
reinsurance marketplace for property/casualty coverage continues to be highly
competitive.
SURPLUS LINES
The surplus lines insurance business has many participants, including small
companies such as USFIC and large, well-established organizations which create
a highly competitive environment. Competition in the surplus lines area
involves the same factors and considerations as with any insurance operation:
the financial strength of the carrier, the premiums charged, the A.M. Best
rating, the services offered, the timeliness of claims handling, experience in
the lines of business written, relationships with brokers and the number of
jurisdictions in which the carrier is authorized to do business. Based both
upon an evaluation of such factors and because of USFIC's focus on specialized
areas of the business, such as smaller commercial property and casualty
accounts and other multiple-account programs in certain states, management
believes that USFIC will be able to continue to grow in this field.
REGULATION
GENERAL
Insurance and reinsurance companies are subject to primary regulation and
supervision by the insurance departments of their states of domicile, as well
as by agencies of other states where they are licensed or authorized to
transact business. Such regulation and supervision is designed primarily to
protect policyholders, not stockholders. Although the extent of such
regulation varies from state to state, in general the insurance laws of states
provide such supervisory agencies with broad administrative powers. These
powers include the granting and revocation of licenses to transact business,
the licensing of agents, the approval of policy forms and rates, the
determination of reserve requirements, the monitoring of financial stability,
the form and content of required financial statements, and the type and
character of investments. Further, the National Association of Insurance
Commissioners ("NAIC") has proposed a variety of model laws and regulations
affecting insurance companies generally, including laws and regulations
relating to solvency standards for all insurance companies. Certain of these
model laws and regulations have been adopted by various states and others are
being considered for adoption.
USF RE and USFIC are required to file detailed annual financial and other
reports with the appropriate insurance regulatory agency in each state in
which they are admitted or authorized to do business. Their business and
accounts are subject to examination by such agencies at any time, and the laws
of Massachusetts and Pennsylvania and other states require periodic
examination of USF RE and USFIC. USF RE was examined by
9
<PAGE>
the Division of Insurance of the Commonwealth of Massachusetts during 1993 for
the four-year period ended December 31, 1992. USFIC was examined by the
Insurance Department of the Commonwealth of Pennsylvania during 1993 for the
three-year period ended December 31, 1992. The final reports of these
examinations did not indicate any concerns of a material nature or which were
significant to USF RE's or USFIC's surplus as regards policyholders.
PROPERTY/CASUALTY
Historically the property/casualty reinsurance business has not been subject
to extensive regulation. However, reinsurance is now under closer scrutiny by
state agencies, as evidenced by the recent promulgation by the NAIC of several
model laws and regulations. Additionally, legislative initiatives are being
considered at the federal level to regulate the solvency of insurance and
reinsurance companies. Management expects this trend toward greater regulation
of the insurance and reinsurance industries to continue. At this time
management cannot anticipate what impact, if any, such regulation would have
on the Company's operations.
USFIC is required by state laws governing surplus lines to be eligible to
write business as a surplus lines insurer in each state in which its products
are sold. Eligibility is based on a number of considerations, including size,
financial condition, experience in the insurer's state of domicile, expertise
of management and plan of operations. The writing of surplus lines is
constrained by laws that require that the business can be written in a state
only if coverage for the risk is not available from an insurer admitted in
such state. Furthermore, the business can only be written through a licensed
excess and surplus lines broker.
MEDICAL STOP-LOSS
Historically medical stop-loss coverage had not been subject to the high
degree of regulation characteristic of the fully-insured group health
business. State regulation of self-insured plans is preempted by the Employee
Retirement Income Security Act of 1974 ("ERISA"). However, as medical stop-
loss has grown in importance, states have attempted to circumvent ERISA's
preemption by seeking to assert their regulatory authority over insurance
companies writing medical stop-loss coverages and related service providers,
such as USBenefits. States have now taken legislative or regulatory action to
regulate policy and rate filings for this line of business. The Company and
Continental have filed policies and rates as required by the applicable state
laws.
The NAIC has adopted a model Managing General Agents Law, the substance of
which has been enacted in 49 states and the District of Columbia. This model
law requires the licensing of managing general agents that perform certain
functions on behalf of insurance companies, such as underwriting, together
with claims settlement and payment. It also imposes certain requirements with
respect to the content of agreements between insurance companies and managing
general agents. USBenefits is licensed or registered as a managing general
agent or third party administrator in various states where such licensing or
registration is required. It is also licensed directly, or through one or more
of its employees, in 42 states as a property/casualty insurance agent and in
47 states as an accident and health insurance agent.
STATE INSURANCE HOLDING COMPANY LAWS
The Company, its stockholders, and its insurance company subsidiaries are
subject to the Insurance Holding Company Acts of the Commonwealth of
Massachusetts where USF RE is domiciled, the State of California where USF RE
is deemed to be "commercially domiciled" and the Commonwealth of Pennsylvania
where USFIC is domiciled. Generally, these Insurance Holding Company Acts
prohibit any person from acquiring "control" of a domestic insurer, or of a
company controlling a domestic insurer, without prior approval of the
insurance commissioner of such insurer's state of domicile. Control is
presumed to exist through ownership or the right to acquire 10% or more of the
stock of the insurer; but this presumption may be rebutted. These Insurance
Holding Company Acts require holding companies and their insurance
subsidiaries to register and file on a regular basis reports which include
information concerning their capital structure, ownership and financial
condition. Certain transactions between members of the holding company group
are subject to fairness and
10
<PAGE>
reasonableness standards, and notice of such transactions must be given to the
Commissioners of Insurance of Massachusetts and Pennsylvania 30 days prior to
entering into such transactions, during which time the Commissioners of these
states may indicate their disapproval. Further, the California Holding Company
Act requires approval of material transactions of an extraordinary type.
The amount of dividends which USF RE is permitted to pay the Company is
limited by the insurance laws of Massachusetts and California. USF RE must
give notice to the Massachusetts and California Insurance Commissioners of all
dividends and other distributions to stockholders within five business days
after they are declared, and may not pay such dividends until ten business
days after receipt by both Commissioners of the required notices. Following
such dividends or distributions, USF RE's surplus to policyholders must be
reasonable in relation to its outstanding liabilities and adequate to its
financial needs. In addition, USF RE may not pay any "extraordinary" dividend
or distribution until 30 days after the Massachusetts and California Insurance
Commissioners have received notice of such dividend or distribution, and until
both Commissioners have either (i) not disapproved such payment within such
30-day period, or (ii) approved such payment within such 30-day period. For
1996, the amount which may be paid in dividends by USF RE without prior
regulatory approval is $10,057,000. The amount of dividends which USFIC may
pay to USF RE is subject to similar restrictions under the laws of
Pennsylvania. Since being acquired by the Company, neither USF RE nor USFIC
has paid any dividends.
LEGISLATIVE AND REGULATORY DEVELOPMENTS
Federal healthcare legislation, which was extensively considered but not
adopted by Congress during 1994, was again taken up by the Congress during
1995. As with prior efforts, such legislation concerns government regulation
and control of the financing and delivery of healthcare. Among the items being
considered are proposals concerning the scope of the present preemptive
provisions of ERISA. Some of these proposals would reinforce the ERISA
preemption of state regulation of self-insured plans, while others would
permit states the authority to regulate specific aspects of self-insured
plans.
Over the past several years various states have been initiating their own
healthcare reforms. With respect to the self-insured market, many of these
actions have focused primarily on the small group health insurance market,
generally plans with 50 employees or less. Other state efforts include
attempts to regulate self-insured plans indirectly by regulating companies
providing stop-loss coverage. Such efforts include prescribing policy terms
and establishing minimum attachment points; i.e., the amount of risk an
employer retains for itself. The Company believes these state initiatives have
not had, and are not expected to have, a significant effect on its medical
stop-loss business.
In addition, the NAIC proposed in September 1995 a model act that would
regulate medical stop-loss policies. The principal feature of the model act is
a recommendation that stop-loss policies contain a minimum specific attachment
point of $20,000. In order to be effective in any state, the NAIC model act
would have to be adopted by legislative action in such state. To management's
knowledge, no state has adopted the model act as of year end 1995. Management
does not believes that all states will adopt the model act, and that of those
states that may, some will adopt specific attachment point requirements lower
than the $20,000 level recommended by the model act. Furthermore, based upon
recent court decisions, the Company believes that if adopted by a state, the
model act will continue to be challenged on the basis that it is preempted by
ERISA. Accordingly, at this time the Company believes that the proposed model
act will not have a significant effect on its medical stop-loss business.
The Company cannot predict at this time the extent to which the federal or
state legislative or regulatory initiatives discussed above will be adopted,
or the extent of the impact they would have on the Company's business.
Management believes, however, that changes to the healthcare system which
ultimately may be adopted will continue to recognize employers' self-insurance
of healthcare benefits as a viable and cost effective method of financing
healthcare. Accordingly, management believes that there will be a continuing
need for medical stop-loss products and that such products will remain a
source of revenues to the Company.
11
<PAGE>
Some of the statements included within this Item 1. and in Management's
Discussion and Analysis of Financial Condition and Results of Operations, as
well as in the Consolidated Financial Statements and related Notes may be
considered to be forward looking statements (as that term is defined in the
Private Securities Litigation Reform Act of 1995), and which are subject to
certain risks and uncertainties. Among those factors which could cause the
actual results to differ materially from those suggested by such statements
are the following: catastrophe losses in the Company's insurance lines or a
material aggregation of losses; changes in federal or state law affecting an
employer's ability to self-insure; the availability of adequate retrocessional
insurance coverage at appropriate prices; stock and bond market volatility;
the effects of competitive market pressures within the stop-loss or
property/casualty marketplaces; the effect of changes required by generally
accepted accounting practices or statutory accounting practices; and other
risks which are described from time to time in the Company's filings with the
Securities and Exchange Commission.
EMPLOYEES
As of March 21, 1996, the Company had 148 full-time employees. No employees
are represented by labor unions, and management considers its employee
relations to be excellent.
EXECUTIVE OFFICERS OF THE COMPANY
The executive officers of the Company are:
<TABLE>
<CAPTION>
NAME AGE POSITION
---- --- --------
<S> <C> <C>
David L. Cargile........ 50 Chairman, President and Chief Executive Officer
Howard S. Singer........ 50 Executive Vice President--Corporate Finance and Investor Relations
John T. Grush........... 47 Senior Vice President
Mark Burke.............. 51 Senior Vice President, Chief Financial Officer and Treasurer
Jose A. Velasco......... 41 Senior Vice President, Secretary and General Counsel
Craig J. Kelbel......... 42 Senior Vice President
</TABLE>
All executive officers except Messrs. Cargile and Singer have been employed
by the Company for more than five years. There are no family relationships
among any of the executive officers of the Company. There have been no events
under bankruptcy or insolvency laws, no criminal proceedings and no judgments
or injunctions material to the evaluation of the ability and integrity of any
executive officer during the past five years.
The following information is provided for Messrs. Cargile and Singer:
Mr. Cargile joined the Company in December 1991 as a Senior Vice President,
was appointed President and Chief Operating Officer in August 1994, Chief
Executive Officer in March 1995 and Chairman of the Board in April 1995. Prior
to joining the Company he was employed by Reinsurance Facilities Corporation
for seventeen years and had served since 1984 as its President and Chief
Executive Officer. Mr. Cargile was employed by International Facultative
Company prior to commencing his employment with Reinsurance Facilities
Corporation and has served on the Board of Directors of a number of companies
engaged in the reinsurance business.
Mr. Singer has served as a director of the Company since its founding and
also serves as a director of a number of the Company's subsidiaries.
Commencing in the early 1970s Mr. Singer had been a securities broker-dealer
in Chicago, Illinois, including acting as the President of his own company.
From 1983 to November 30, 1991 he served in the capacity of financial
consultant to the Company. On December 1, 1991, Mr. Singer was employed by the
Company in the position of Executive Vice President.
12
<PAGE>
ITEM 2. PROPERTIES
The principal executive offices of the Company and its subsidiaries are
located in 40,281 square feet of leased office space at 650 Town Center Drive,
Costa Mesa, California. The lease on this facility was extended as of October
1, 1995 through March 31, 2007, with a five-year option to extend. Additional
offices are maintained in leased premises in Chicago, Illinois; Philadelphia,
Pennsylvania; Atlanta, Georgia; Tulsa, Oklahoma; and Phoenix, Arizona.
ITEM 3. LEGAL PROCEEDINGS
From time to time the Company is a party to legal proceedings incidental to
its business, none of which individually or in the aggregate is considered by
the Company to be material to its financial condition or results of
operations.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter was submitted to a vote of the stockholders during the fourth
quarter of 1995.
13
<PAGE>
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND
RELATED STOCKHOLDER MATTERS
During fiscal year 1995 the Company paid four quarterly cash dividends of
$.05 per share. No cash dividends were paid during fiscal year 1994. In
addition, material appearing under the captions "STOCKHOLDER INFORMATION" and
"STOCK PRICE INFORMATION" in the 1995 Annual Report to Stockholders of US
Facilities Corporation (the "Annual Report") is hereby incorporated by this
reference.
ITEM 6. SELECTED FINANCIAL DATA
Material appearing under the caption "SELECTED FINANCIAL DATA" in the
Company's Annual Report is hereby incorporated by this reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Material appearing under the caption "MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" in the Company's Annual
Report is hereby incorporated by this reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Material appearing under the captions "REPORT ON CONSOLIDATED FINANCIAL
STATEMENTS," and "INDEPENDENT AUDITORS' REPORT" and contained in the Company's
CONSOLIDATED FINANCIAL STATEMENTS and Notes thereto in the Company's Annual
Report are hereby incorporated by this reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH AUDITORS
ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The information regarding directors and executive officers of the Registrant
as required by Items 401 and 405 of Regulation S-K is set forth in Part I of
this report under the caption "EXECUTIVE OFFICERS OF THE COMPANY" and under
the caption "ELECTION OF DIRECTORS" in the Company's definitive Proxy
Statement for the Company's 1996 Annual Meeting of Stockholders scheduled to
be held on May 22, 1996, and which will be filed with the Securities and
Exchange Commission not later than 120 days after December 31, 1995 (the
"Proxy Statement"), and is hereby incorporated by this reference.
ITEM 11. EXECUTIVE COMPENSATION
The information required by Item 402 of Regulation S-K is set forth under
the caption "COMPENSATION OF EXECUTIVE OFFICERS" in the Company's Proxy
Statement, and is hereby incorporated by this reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT
The information required by Item 403 of Regulation S-K is set forth under
the captions "SECURITY OWNERSHIP OF MANAGEMENT" and "SECURITY OWNERSHIP OF
CERTAIN OTHER STOCKHOLDERS" in the Company's Proxy Statement, and is hereby
incorporated by this reference.
14
<PAGE>
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The information regarding certain relationships and related transactions as
required by Item 404 of Regulation S-K is set forth in the Company's Proxy
Statement under the captions "COMPENSATION OF EXECUTIVE OFFICERS" and "RELATED
TRANSACTIONS," and is hereby incorporated by this reference.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
AND REPORTS ON FORM 8-K
(a) The following documents are filed as part of this Form 10-K:
(i) The following is a list of financial statements, together with
reports thereon, filed as part of this Form 10-K, all of which have been
incorporated herein by reference to the material in the Company's Annual
Report as described under Item 8 of this Form 10-K:
Report on Consolidated Financial Statements
Consolidated Income Statements--Years ended December 31, 1995, 1994 and
1993
Consolidated Balance Sheets--December 31, 1995 and 1994
Consolidated Statements of Stockholders' Equity--Years ended December 31,
1995, 1994, and 1993
Consolidated Statements of Cash Flows--Years ended December 31, 1995,
1994 and 1993
Notes to Consolidated Financial Statements
Independent Auditors' Report
(ii) The following is a list of financial statement schedules filed with
this Form 10-K:
Index to Schedules
Independent Auditors' Report
Schedule I--Summary of Investments
Schedule II--Condensed Financial Information of Registrant
Schedule III--Supplementary Insurance Information
Schedule IV--Reinsurance
All other schedules to the Consolidated Financial Statements required by
Article 7 of Regulation S-X are not required under the related instructions or
are inapplicable and therefore have been omitted.
(iii) The following is a list of exhibits required to be filed as part of
this Form 10-K by Item 601 of Regulation S-K:
2. None.
3.1, 4.1 Restated Certificate of Incorporation, as amended, as presently in
effect. Filed as Exhibits 3.1 and 3.1.1 to the Company's Form S-1
Registration Statement declared effective by the Securities and
Exchange Commission ("Commission") on October 31, 1986 (the "S-1
Registration Statement"), and incorporated herein by this reference;
and as Exhibit 3 to the Company's Current Report on Form 8-K dated
May 24, 1990, and incorporated herein by this reference.
3.2, 4.2 Bylaws of the Company, as amended, as presently in effect. Filed as
Exhibit 4.2 to the Company's June 30, 1994 Quarterly Report on Form
10-Q, and incorporated herein by this reference.
4.3 Common Stock Certificate of the Company. Filed as Exhibit 4.1 to the
Company's S-1 Registration Statement, and incorporated herein by this
reference.
15
<PAGE>
4.4 Rights Agreement. Filed as Exhibit 2 to the Company's Current Report
on Form 8-K dated May 24, 1990, and incorporated herein by this
reference.
4.5 First Amendment to Rights Agreement. Filed as Exhibit 1 to the
Company's Current Report on Form 8-K dated January 16, 1992, and
incorporated herein by this reference.
4.6 Second Amendment to Rights Agreement. Filed as Exhibit 10.1 to the
Company's Current Report on Form 8-K dated April 29, 1994, and
incorporated herein by this reference.
4.7 Third Amendment to Rights Agreement. Filed on October 3, 1995, as
Exhibit 4 to the Company's Current Report on Form 8-K dated September
28, 1995, and incorporated herein by this reference.
9 None.
10 Material Contracts.
10.2(iii) Settlement Agreement and General Release between George Kadonada and
the Company dated March 10, 1995. Filed as Exhibit 10.2 to the
Company's March 31, 1995 Quarterly Report on Form 10-Q, and
incorporated herein by this reference.
10.3 Employment Agreement dated December 1, 1991 between the Company and
Howard S. Singer. Filed as Exhibit 10.3 to Company's Annual Report on
Form 10-K for the year ended December 31, 1991 ("1991 Form 10-K"),
and incorporated herein by this reference.
10.3(i) Amendment No. 1 to Employment Agreement between the Company and
Howard S. Singer effective as of August 4, 1994. Filed as Exhibit
10.4 to the Company's June 30, 1994 Quarterly Report on Form 10-Q,
and incorporated herein by this reference.
10.4 Agreement of Employment between the Company and David L. Cargile
dated August 4, 1994. Filed as Exhibit 10.2 to the Company's June 30,
1994 Quarterly Report on Form 10-Q, and incorporated herein by this
reference.
10.4(i)* Amendment to Agreement of Employment between the Company and David L.
Cargile dated July 21, 1995, with exhibits thereto.
10.9 Stock Option Agreement dated May 23, 1991 between the Company and
H.S. Singer Company, Inc. Filed as Exhibit 10.7(ii) to the Company's
Form S-2 Registration Statement declared effective by the Commission
on December 4, 1991 (the "S-2 Registration Statement"), and
incorporated herein by this reference.
10.10 Stock Option Agreement dated September 16, 1991 between the Company
and H.S. Singer Company, Inc. Filed as Exhibit 10.7(iii) to the
Company's S-2 Registration Statement, and incorporated herein by this
reference.
10.11 Stock Option Agreement dated December 18, 1991 between the Company
and H.S. Singer Company, Inc. Filed as Exhibit 10.10 to Company's
1991 Form 10-K, and incorporated herein by this reference.
10.12 Consulting Agreement dated June 24, 1991 between US Benefits, Inc.
and L. Steven Medgyesy. Filed as Exhibit 10.9 to the Company's S-2
Registration Statement, and incorporated herein by this reference.
10.14 Severance Agreement dated May 24, 1994 between the Company and David
L. Cargile. Filed as Exhibit 10.3 to the Company's June 30, 1994
Quarterly Report on Form 10-Q, and incorporated herein by this
reference.
10.14(i) Severance Agreement dated May 24, 1994 between the Company and Howard
S. Singer. Filed as Exhibit 10.2 to the Company's June 30, 1994
Quarterly Report on Form 10-Q, and incorporated herein by this
reference.
10.14(ii) Severance Agreement dated May 24, 1994 between the Company and John
T. Grush. Filed as Exhibit 10.4 to the Company's June 30, 1994
Quarterly Report on Form 10-Q, and incorporated herein by this
reference.
- --------
* Describes a document being filed with this Annual Report on Form 10-K for
year ended December 31, 1995.
16
<PAGE>
10.14(iii) Severance Agreement dated May 24, 1994 between the Company and Mark
Burke. Filed as Exhibit 10.5 to the Company's June 30, 1994
Quarterly Report on Form 10-Q, and incorporated herein by this
reference.
10.14(iv) Severance Agreement dated May 24, 1994 between the Company and Jose
A. Velasco. Filed as Exhibit 10.6 to the Company's June 30, 1994
Quarterly Report on Form 10-Q, and incorporated herein by this
reference.
10.14(v)* Severance Agreement dated May 24, 1994 between the Company and Craig
J. Kelbel.
10.15 Lease Agreement dated May 28, 1985 between Center Tower Associates
and US Benefits, Inc. Filed As Exhibit 10.13 to the Company's S-1
Registration Statement, and incorporated herein by this reference.
10.16 First Amendment dated November 24, 1986 to Lease Agreement between
Center Tower Associates and the Company as assignee of US Benefits,
Inc. Filed as Exhibit 10.26 to the Company's S-2 Registration
Statement, and incorporated herein by this reference.
10.17 Second Amendment dated July 8, 1992 to Lease Agreement between Center
Tower Associates and the Company. Filed as Exhibit 10.17 to the
Company's Annual Report on Form 10-K for the year ended December 31,
1992 ("1992 Form 10-K"), and incorporated herein by this reference.
10.18 Third Amendment dated May 4, 1993 to Lease Agreement between Center
Tower Associates and the Company. Filed as Exhibit 10.18 to the
Company's Annual Report on Form 10-K for the year ended December 31,
1993 ("1993 Form 10-K"), and incorporated herein by this reference.
10.18(i)* Fourth and Fifth Amendments dated August 29, 1994 and October 1,
1995, respectively, to Lease Agreement between Center Tower
Associates and the Company.
10.19 Management Agreement No. 1 dated October 3, 1994 (with Addendums)
between The Continental Insurance Company and USBenefits Insurance
Services, Inc. Filed as Exhibit 10.1 to the Company's September 30,
1994 Quarterly Report on Form 10-Q, and incorporated herein by this
reference.
10.19(i)* Additional Addendums to Management Agreement No. 1 between The
Continental Insurance Company and USBenefits Insurance Services,
Inc.
10.20 Quota Share Retrocession Agreement, as amended, dated July 11, 1986
between The Continental Insurance Company, as successor to Harbor
Insurance Company by assumption, and USF RE INSURANCE COMPANY. Filed
as Exhibit 10.47 to the Company's S-2 Registration Statement, and
incorporated herein by this reference.
10.21 Amendment dated January 16, 1991 to Quota Share Retrocession
Agreement between The Continental Insurance Company and USF RE
INSURANCE COMPANY. Filed as Exhibit 10.21 to the Company's 1993 Form
10-K, and incorporated herein by this reference.
10.21(i) Amendment dated October 3, 1994 to Quota Share Retrocession Agreement
between The Continental Insurance Company and USF RE INSURANCE
COMPANY. Filed as Exhibit 10.21(i) to the Company's Annual Report on
Form 10-K for the year ended December 31, 1994 ("1994 Form 10-K"),
and incorporated herein by this reference.
10.22 US Facilities Corporation 1988 Employee Stock Plan. Filed as Exhibit
A to the Company's Proxy Statement for the May 25, 1988 Annual
Meeting of Stockholders, and incorporated herein by this reference.
10.23 US Facilities Corporation 1991 Employee Stock Option Plan. Filed as
Exhibit A to the Company's Proxy Statement for the May 23, 1991
Annual Meeting of Stockholders, and incorporated herein by this
reference.
- --------
* Describes a document being filed with this Annual Report on Form 10-K for
year ended December 31, 1995.
17
<PAGE>
10.23(i) US Facilities Corporation Amended 1991 Employee Stock Option Plan.
Filed as Exhibit A to the Company's Proxy Statement for the May 24,
1995 Annual Meeting of Stockholders, and incorporated herein by this
reference.
10.24 US Facilities Corporation 1988 Directors Stock Option Plan. Filed as
Exhibit B to the Company's Proxy Statement for the May 25, 1988
Annual Meeting of Stockholders, and incorporated herein by this
reference.
10.24(i) US Facilities Corporation 1991 Directors Stock Option Plan Amended
and Restated as of December 18, 1991. Filed as Exhibit 10.27 to
Company's 1991 Form 10-K, and incorporated herein by this reference.
10.26* Amended US Facilities Corporation Incentive Compensation Program, as
in effect for 1995.
11* The US Facilities Corporation and Subsidiaries Computation of
Earnings Per Share.
12 None.
13* US Facilities Corporation 1995 Annual Report to Stockholders (filed
with the Commission only to the extent it is specifically
incorporated by reference in this 1995 Form 10-K).
16 None.
18 None.
21* Subsidiaries of US Facilities Corporation.
22 None.
23* Independent Auditors' Consent dated March 26, 1996.
24 None.
27* Financial Data Schedules.
28* Schedule P of 1995 Combined Annual Statement of USF RE INSURANCE
COMPANY and USF Insurance Company filed with the Divisions of
Insurance of the Commonwealths of Massachusetts and Pennsylvania.
99 None.
(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the fourth quarter of the year
ended December 31, 1995.
- --------
* Describes a document being filed with this Annual Report on Form 10-K for
year ended December 31, 1995.
18
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Date: March 26, 1996 US FACILITIES CORPORATION
By /s/ David L. Cargile
-----------------------------------
David L. Cargile
Chairman of the Board Chief
Executive Officer and President
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the Company
and in the capacities and on the dates indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>
/s/ John A. Allison Director March 26, 1996
____________________________________
John A. Allison
/s/ Mark Burke Senior Vice President, Chief March 26, 1996
____________________________________ Financial Officer and
Mark Burke Treasurer (Principal
Financial and Accounting
Officer)
/s/ David L. Cargile Chairman of the Board, Chief March 26, 1996
____________________________________ Executive Officer and
David L. Cargile President (Principal
Executive Officer)
Director March , 1996
____________________________________
Jonathan D. DuBois
/s/ John F. Kooken Director March 26, 1996
____________________________________
John F. Kooken
/s/ L. Steven Medgyesy Director March 26, 1996
____________________________________
L. Steven Medgyesy
/s/ Bernard H. Ross Director March 26, 1996
____________________________________
Bernard H. Ross
/s/ Charles L. Schultz Director March 26, 1996
____________________________________
Charles L. Schultz
/s/ Howard S. Singer Director and Executive March 26, 1996
____________________________________ Vice President--Corporate
Howard S. Singer Finance and Investor
Relations
/s/ Kenneth C. Tyler Director March 26, 1996
____________________________________
Kenneth C. Tyler
</TABLE>
19
<PAGE>
INDEX TO SCHEDULES
Independent Auditors' Report
<TABLE>
<S> <C>
Summary of Investments........................................... Schedule I
Condensed Financial Information of Registrant.................... Schedule II
Supplementary Insurance Information.............................. Schedule III
Reinsurance...................................................... Schedule IV
</TABLE>
20
<PAGE>
INDEPENDENT AUDITORS' REPORT
Under date of February 6, 1996, we reported on the consolidated balance
sheets of US Facilities Corporation and Subsidiaries as of December 31, 1995
and 1994, and the related consolidated income statements, statements of
stockholders' equity and cash flows for each of the years in the three-year
period ended December 31, 1995 as contained in the 1995 Annual Report to
Stockholders. These consolidated financial statements and our report thereon
are incorporated by reference in the annual report on Form 10-K for the year
1995. In connection with our audits of the aforementioned consolidated
financial statements, we also audited the related consolidated financial
statement schedules as listed in the accompanying index. These consolidated
financial statement schedules are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated
financial statement schedules based on our audits.
In our opinion, such schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present fairly, in all
material respects, the information set forth therein.
As discussed in Note 1 to the consolidated financial statements, the Company
changed its method of accounting for investments in 1994 to adopt the
provisions of the Financial Accounting Standards Board's Statement of
Financial Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities."
KPMG PEAT MARWICK LLP
Los Angeles, California
February 6, 1996
21
<PAGE>
US FACILITIES CORPORATION AND SUBSIDIARIES
SCHEDULE I--SUMMARY OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
AMOUNT AT
WHICH SHOWN
ON BALANCE
COST(1) VALUE(1) SHEET(1)
-------- -------- -----------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
Fixed maturities:
Bonds:
United States Government agencies and
authorities................................. $ 11,071 $ 11,793 $ 11,793
States, municipalities and political
subdivisions................................ 69,967 74,437 74,437
Foreign governments.......................... 557 622 622
All other corporate bonds.................... 45,982 49,894 49,894
-------- -------- --------
Total fixed maturities..................... 127,577 136,746 136,746
Equity securities:
Preferred stocks:
Industrial and miscellaneous................. 250 251 251
Common stocks:
Industrial and miscellaneous................. 14,685 16,440 16,440
-------- -------- --------
Total.......................................... 14,935 16,691 16,691
Other invested assets............................ 1,013 1,013 1,013
Short-term investments........................... 15,808 15,808 15,808
-------- -------- --------
Total investments.......................... $159,333 $170,258 $170,258
======== ======== ========
</TABLE>
- --------
(1) Cost represents the amortized cost of investments to the Company. Value
represents current market value. Amount at which investments are shown on
the balance sheet represents current market value as required by SFAS No.
115.
22
<PAGE>
US FACILITIES CORPORATION AND SUBSIDIARIES
SCHEDULE II--CONDENSED INCOME STATEMENTS
US FACILITIES CORPORATION
(PARENT COMPANY ONLY)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER
31,
-----------------------
1995 1994 1993
------- ------ ------
(DOLLARS IN
THOUSANDS)
<S> <C> <C> <C>
Revenues:
Dividends from subsidiaries......................... $ 6,000 $2,500 $4,000
Other............................................... 49 13 --
------- ------ ------
Total revenues.................................... 6,049 2,513 4,000
Operating expenses:
Other general and administrative.................... 1,723 648 826
Restructuring....................................... -- 654 --
Interest............................................ 2,259 48 48
------- ------ ------
Total operating expenses.......................... 3,982 1,350 874
Other expenses:
Unusual charges related to unsolicited takeover
proposal........................................... -- 2,029 --
------- ------ ------
Income (loss) before income taxes................... 2,067 (866) 3,126
Income tax benefits................................... (2,324) (1,008) (502)
------- ------ ------
Income before equity in earnings of subsidiaries.... 4,391 142 3,628
Equity in earnings of subsidiaries.................... 9,463 6,096 3,139
------- ------ ------
Net income.......................................... $13,854 $6,238 $6,767
======= ====== ======
</TABLE>
23
<PAGE>
US FACILITIES CORPORATION AND SUBSIDIARIES
SCHEDULE II--CONDENSED BALANCE SHEETS
US FACILITIES CORPORATION
(PARENT COMPANY ONLY)
ASSETS
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------
1995 1994
-------- -------
(DOLLARS IN
THOUSANDS)
<S> <C> <C>
Cash......................................................... $ 815 $ 2,540
Investment in and due from affiliates........................ 122,049 86,391
Other assets................................................. 2,425 1,735
-------- -------
Total assets............................................... $125,289 $90,666
======== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Note payable................................................. $ 35,000 $25,000
Accounts payable and accrued expenses........................ 2,228 2,587
-------- -------
Total liabilities.......................................... 37,228 27,587
-------- -------
Stockholders' equity:
Common stock............................................... 61 59
Paid-in capital............................................ 44,489 44,261
Net unrealized investment gain (loss)...................... 7,211 (2,637)
Retained earnings.......................................... 39,273 26,544
-------- -------
91,034 68,227
Less treasury stock, at cost............................... (2,973) (5,148)
-------- -------
Total stockholders' equity................................. 88,061 63,079
-------- -------
Total liabilities and stockholders' equity................. $125,289 $90,666
======== =======
</TABLE>
24
<PAGE>
US FACILITIES CORPORATION AND SUBSIDIARIES
US FACILITIES CORPORATION
(PARENT COMPANY ONLY)
SCHEDULE II--CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------
1995 1994 1993
-------- -------- -------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income........................................ $ 13,854 $ 6,238 $ 6,767
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Increase (decrease) in accounts payable and
accrued expenses............................... (359) 666 886
Increase in other assets........................ (690) (406) (124)
Equity in income of and change in due from
affiliates..................................... (15,310) (5,602) (6,179)
-------- -------- -------
Net cash provided by (used in) operating
activities.................................... (2,505) 896 1,350
-------- -------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on note payable.......................... -- -- (1,600)
Proceeds from note payable........................ 10,000 25,000 --
Proceeds from issuance of common stock............ 2,405 1,588 263
Dividends Paid.................................... (1,125) -- --
Purchase of 498,000 shares of treasury stock...... -- (5,000) --
-------- -------- -------
Net cash provided by (used in) financing
activities.................................... 11,280 21,588 (1,337)
-------- -------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in investment in affiliates.............. (10,500) (20,000) --
-------- -------- -------
Net (decrease) increase in cash.................. (1,725) 2,484 13
Cash at beginning of year........................ 2,540 56 43
-------- -------- -------
Cash at end of year.............................. $ 815 $ 2,540 $ 56
======== ======== =======
Supplemental Disclosures of Cash Flow Information:
Cash paid during the year for:
Interest......................................... $ 2,187 $ 19 $ 48
Income taxes..................................... $ 5,217 $ 1,350 $ 1,232
</TABLE>
25
<PAGE>
US FACILITIES CORPORATION AND SUBSIDIARIES
SCHEDULE III--SUPPLEMENTARY INSURANCE INFORMATION
<TABLE>
<CAPTION>
BENEFITS, AMORTIZATION
DEFERRED FUTURE POLICY CLAIMS, OF DEFERRED
POLICY BENEFITS, LOSSES, NET LOSSES AND POLICY OTHER NET
ACQUISITION CLAIMS AND UNEARNED PREMIUM INVESTMENT SETTLEMENT ACQUISITION OPERATING PREMIUMS
SEGMENT COSTS LOSS EXPENSES PREMIUMS REVENUE INCOME EXPENSES COSTS EXPENSES WRITTEN
------- ----------- ----------------- -------- ------- ---------- ---------- ------------ --------- --------
. (DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995
Medical stop-loss
and employee
benefit products.. $ -- 17,947 -- 81,546 3,269 54,563 27,069 12,025 81,546
Property/casualty.. 2,830 60,947 17,705 33,425 5,872 23,180 8,895 3,304 35,350
------ ------ ------ ------- ----- ------ ------ ------ -------
Total............. $2,830 78,894 17,705 114,971 9,141 77,743 35,964 15,329 116,896
====== ====== ====== ======= ===== ====== ====== ====== =======
1994
Medical stop-loss
and employee
benefit products.. $ -- 18,113 -- 72,517 2,273 48,356 23,647 13,772 72,517
Property/casualty.. 3,047 51,534 14,613 20,752 3,677 16,010 7,694 2,499 23,865
------ ------ ------ ------- ----- ------ ------ ------ -------
Total............. $3,047 69,647 14,613 93,269 5,950 64,366 31,341 16,271 96,382
====== ====== ====== ======= ===== ====== ====== ====== =======
1993
Medical stop-loss
and employee
benefit products.. $ -- 18,791 -- 66,931 2,225 47,667 22,265 13,695 66,931
Property/casualty.. 2,467 39,979 10,293 16,275 3,632 10,050 6,611 2,485 18,644
------ ------ ------ ------- ----- ------ ------ ------ -------
Total............. $2,467 58,770 10,293 83,206 5,857 57,717 28,876 16,180 85,575
====== ====== ====== ======= ===== ====== ====== ====== =======
</TABLE>
26
<PAGE>
US FACILITIES CORPORATION AND SUBSIDIARIES
SCHEDULE IV--REINSURANCE
USF RE INSURANCE COMPANY AND SUBSIDIARY
(WHOLLY-OWNED SUBSIDIARIES OF US FACILITIES CORPORATION)
<TABLE>
<CAPTION>
INSURANCE PREMIUMS EARNED 1995 1994 1993
------------------------- -------- ------ -------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
Gross amount (direct)............................... $ 12,218 $9,386 $ 6,289
Ceded to other companies............................ 14,398 10,690 5,781
Assumed from other companies........................ 117,151 94,573 82,698
Net amount.......................................... 114,971 93,269 83,206
Percentage of amount assumed to net................. 101.9% 101.4% 99.4%
</TABLE>
27
<PAGE>
EXHIBIT 10.4(i)
AMENDMENT TO AGREEMENT OF EMPLOYMENT
This Amendment to Agreement of Employment ("Amendment") is entered
into as of July 21, 1995, by and between US FACILITIES CORPORATION, a Delaware
corporation (the "Company"), and DAVID L. CARGILE ("Executive").
WHEREAS, Company and Executive are parties to an Employment Agreement,
entered into as of August 4, 1994 (the "Agreement"), which provides for the
employment of Executive as President and Chief Operating Officer on the terms
provided for therein; and
WHEREAS, on March 22, 1995, Executive was promoted to Chief Executive
Officer of the Company, with a need that Executive relocate his family in order
to permit him to undertake substantially all of his duties and responsibility at
the Company's corporate headquarters in Orange County, California; and
WHEREAS, the Company and Executive desire to amend the Agreement to
reflect Executive's change in duties and relocation to Orange County,
California;
NOW, THEREFORE, in consideration of the premises and the mutual
covenants set forth herein, the parties hereto agree as follows:
1. Position and Duties. Section 3 of the Agreement shall be amended
-------------------
to read in full as follows:
"The Executive shall serve the Company as its Chief Executive
Officer and President, with full responsibility for the day to day
management of the Company's business operations, and with such
additional duties, powers, responsibilities and authority as may be
delegated or assigned to Executive from time to time by the Company's
Board of Directors."
2. Place of Performance. Section 5 of the Agreement shall be
--------------------
amended to read in full as follows:
"Executive's duties and responsibilities shall be conducted
principally at the Company's corporate headquarters in Orange County,
California, except for such travel as may be required to be undertaken
on behalf of the Company's business. The Company may not relocate
Executive for purposes of his employment under this Agreement without
the express agreement of Executive to such relocation."
3. A new Section 7.07 shall be added to the Agreement, to read in
full as follows:
"7.07 Relocation Arrangements:
-----------------------
(a) Pursuant to Section 5 of the Agreement as in
effect prior to this Amendment, the Company agreed to pay for
reasonable relocation costs incurred by Executive should the Company
and the Executive mutually agree that Executive should relocate his
residence and
<PAGE>
family to the Southern California area. Since Executive is making such
a move at the request of the Company, the Company agrees to pay for,
or reimburse Executive for costs incurred in connection with, all
out-of-pocket costs in connection with such move, including without
limitation, moving costs for household effects, automobiles and other
personal property (including a horse owned by Executive), as well as
costs for the family's actual move to California (whether by car or
air), costs of house hunting trips for Executive and members of his
immediate family and reasonable temporary housing in advance of the
closing and occupancy of a home in Orange County.
(b) The Company agrees to purchase Executive's
Atlanta residence (or cause such residence to be purchased) at an
agreed upon price based upon the appraised value of Executive's
Atlanta residence. The Company shall absorb all transaction costs of
such purchase, including realtor, inspection, appraisal and escrow
fees.
(c) The Company shall pay all transaction costs
associated with the purchase by Executive of a principal residence in
Orange County, California, including without limitation escrow fees,
title insurance fees and other costs (excluding the purchase price
thereof) commonly paid for by purchasers of residences in Orange
County. In connection with the acquisition of such Orange County
principal residence, and in light of the substantial services to be
provided to the Company by Executive, the Company shall provide
financing to Executive (the "Loan") for the purchase of such residence
in an amount not to exceed the purchase price of the Orange County
residence, less the net proceeds (the "Atlanta Equity") of Atlanta
residence sale by Executive after satisfying the unpaid principal
balance of Executive's Atlanta mortgage loan. The Loan shall be
secured by a trust deed on Executive's Orange County residence.
(d) The Loan shall be a non-transferable loan with a
fixed monthly payment thereon for the first five years which shall
equal the monthly principal and interest payments of Executive on his
current Atlanta mortgage loan. All Loan payments shall be applied to
interest during the first five years. Following the expiration of such
five year period, or at such time as the unpaid principal balance
shall be reduced below the current balance of Executive's Atlanta
mortgage loan, the Loan shall be converted to a fully amortizing 15
year loan at a fixed interest rate equal to the current fixed rate on
Executive's Atlanta mortgage loan. In addition, the Loan shall become
due upon the earlier sale of the Orange County residence by Executive
or one year after the termination of Executive's employment with the
Company for any reason. Executive hereby certifies to the Company that
Executive reasonably expects to be entitled to and will itemize
deductions for federal income tax purposes for each year that the Loan
is outstanding.
(e) At the end of each calendar month or portion
thereof during which Executive is employed by the Company (to a
maximum of sixty (60) months) following the closing date of the
acquisition of his Orange County residence, Executive shall receive a
credit of $6,920.00 on the unpaid principal balance of the Loan. In
addition, should Executive die or become disabled (as defined in the
Agreement) while employed by the Company or should Executive be
terminated by the
2
<PAGE>
Company, he or his heirs shall be entitled at such time to the maximum
sixty (60) month credit on the unpaid principal balance of the Loan
notwithstanding that his actual employment period was less.
(f) While the Loan is outstanding and Executive is
employed by the Company, the Company agrees to provide monthly to
Executive as additional compensation an amount equal to the additional
state income taxes, net of any federal tax benefit, that are incurred
by Executive as a result of the taxation of his income during the year
(or a pro rata portion of such income if Executive is not employed by
the Company for the whole year) as a California resident as contrasted
with the taxation of such income as a Georgia resident. Furthermore,
the Company agrees to provide to Executive as additional compensation
an amount equal to the additional federal and state income taxes
incurred by Executive due to the applicable credits as described above
against the unpaid Loan balance. Such additional amount as set forth
in this Section 7(f) shall be "grossed-up" to reflect the additional
federal and state tax impact of such additional compensation and of
any imputed income resulting from the interest rate on the Loan and
the Company's payment of Executive's moving expenses."
5. Effect on Agreement. Except as modified by this Amendment to
-------------------
Agreement of Employment, the terms and provisions of the Agreement shall remain
in full force and effect throughout the term of the Agreement.
6. Counterparts. This Amendment may be executed in one or more
------------
counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have executed and delivered
this Amendment to Agreement of Employment as of the date first above written.
US FACILITIES CORPORATION EXECUTIVE
By: /s/ Jose A. Velasco /s/ David L. Cargile
------------------------- --------------------
Senior Vice President, David L. Cargile
Secretary and General Counsel
3
<PAGE>
PROMISSORY NOTE
SECURED BY DEED OF TRUST
LAGUNA HILLS, CALIFORNIA
$649,000 July 24 1995
FOR VALUE RECEIVED, the undersigned, DAVID L. CARGILE and ANN M. CARGILE,
husband and wife ("Borrower"), hereby promises to pay to US FACILITIES
CORPORATION, a Delaware corporation (which, together with any subsequent holder
of this Note, is referred to in this Note as "Lender"), or order, at 650 Town
Center Drive, Suite 1600, Costa Mesa, California, or such other place as Lender
may from time to time designate, the principal sum of Six Hundred Forty-nine
Thousand Dollars, ($649,000), together with interest from the date hereof,
principal and interest payable in accordance with Paragraph 1 below, beginning
on the first (1st) day of September, 1995 and continuing on the first (1st) day
of each and every month thereafter (each a "Payment Date") until July 31, 2015
or earlier (as described below) (the "Maturity Date"), on which date the entire
principal balance of this Note, all accrued but unpaid interest and all other
sums due under this Note shall be paid in full.
1. PAYMENTS
--------
All principal, interest and other sums due hereunder shall be paid in
lawful money of the United States. Interest payable with respect to any period
that is less than a full calendar month shall be calculated on the daily
outstanding principal balance according to the actual number of days in such
period as a fraction of a 360-day year/30-day month. This Note may be prepaid in
whole or in part at any time without penalty of premium.
Principal and interest hereunder are payable in arrears with such principal
and interest due to this Note in the amounts and at the times determined in
accordance with the provisions of Section 7.07(d) of July 21, 1995 Amendment to
the August 4, 1994 Agreement of Employment between Lender and David L. Cargile
("Employment Agreement"), as set forth in Subparagraphs A and B below. Borrower
shall have the right to offset against any amounts due by Borrower under this
Note, any amounts due to David L. Cargile under Section 7(f) of the Employment
Agreement.
A. Months 1 through 60. Commencing on the first Payment Date,
-------------------
and continuing thereafter on each Payment Date through and including the 60th
Payment Date, Borrower shall make payments of interest only in the amount of Two
Thousand Two Hundred Dollars ($2,200) per month (the "Initial Payment").
Notwithstanding the foregoing, in the event that during Months 1 through 60 of
the term hereof the unpaid principal balance of this Note shall be reduced below
the amount of Two Hundred Thirty-four Thousand Two Hundred Thirty-five Dollars
($234,235) (the "Early Change Date"), Borrower's right and obligation to pay the
Initial Payment shall terminate as of the next Payment Date and payments under
this Note as of such next Payment Date shall thereafter be governed by
Subparagraph B below.
<PAGE>
B. Months 61 through 240. Commencing on the earlier of the Early Change
---------------------
Date or the 61st Payment Date (the "Payment Change Date"), and continuing on
each Payment Date following and including the Payment Change Date through the
Maturity Date, the monthly payment amount due hereunder shall be adjusted to be
the amount that will amortize fully the entire principal balance of the Note
then outstanding along with all accrued but unpaid interest then outstanding in
approximate equal monthly installments of principal and interest over the period
commencing on the Payment Change Date and ending on the date which is one
hundred eighty (180) months after the Payment Change Date with interest from the
Payment Change Date on unpaid principal and interest balance at the rate of Nine
and Three-quarters Percent (9.75%) per annum. On or before thirty (30) days
prior to the Payment Change Date, Lender shall notify Borrower of the amount
thereafter due per month provided that Lender's failure to so notify Borrower
shall not relieve Borrower of its obligations to continue to make payments
hereunder. Borrower shall pay such amount on the Payment Change Date and on each
Payment Date thereafter until the earlier of the date this Note is paid in full
or the Maturity Date.
2. CREDITS
-------
Commencing on the date hereof, for so long as David L. Cargile is employed
by Lender, at the end of each calendar month of such employment (to a maximum of
sixty (60) months thereafter), Lender shall credit Borrower the amount of Six
Thousand Nine hundred Twenty Dollars ($6920) per month (the "Credit"), which
Credit shall be applied against and used to reduce the principal balance of this
Note. In addition, and notwithstanding the foregoing, if Borrower should die or
become disabled (as defined under the Employment Agreement) while employed by
Lender or should Borrower be terminated by Lender for any reason whatsoever on
or before the 60th Payment Date, he or his heirs (as the case may be) shall be
entitled to the maximum sixty (60) month Credit against the unpaid principal
balance of the Note despite the fact that David L. Cargile's employment was
terminated or interrupted prior to the end of such sixty (60) month period.
3. SECURITY: ACCELERATION UPON CERTAIN TRANSFERS
---------------------------------------------
This Note is secured by a Deed Of Trust With Assignment Of Rents And Leases
(the "Deed of Trust") of even date herewith given by Borrower to Lender, which
Deed of Trust constitutes a lien on certain real property (the "Property")
located in the County of Orange, State of California, as more particularly
described in the Deed of Trust. The Deed of Trust contains the following
provisions concerning acceleration of the indebtedness of this Note upon certain
events:
Transfers of Property or Termination of Borrower. Upon any sale,
-----------------------------------------------
encumbrance, hypothecation or other transfer of the Property or any part of
or interest in the Property, Beneficiary may, at its option, declare all of
the sums secured by this Instrument to be immediately due and payable. In
2
<PAGE>
addition, upon termination of David L. Cargile's employment with
Beneficiary for any reason whatsoever (a "Termination"), Beneficiary may,
at its option declare all sums due hereunder to be due and payable upon the
one (1) year anniversary of such Termination. In either event, if Trustor
fails to pay all principal and accrued but unpaid interest due under the
Note in accordance with the terms thereof, Trustor shall be in default
under this Instrument. Beneficiary may invoke all of the remedies available
under this Instrument or otherwise available at law or in equity.
4. DEFAULT
-------
The failure by Borrower in the due and punctual payment of interest or
principal due under this Note in accordance with the terms hereof (which is not
cured within 15 days after its occurrence) or an act of "Default" as defined in
the Deed of Trust shall constitute a "default" under this Note. In the event of
any default, Lender may elect, upon thirty (30) days written notice or demand to
Borrower, to declare all principal and accrued but unpaid interest under this
Note immediately due and payable. Any failure of Lender to make such election
following a default or defaults shall not constitute a waiver of Lender's right
to make the election in the event of any subsequent default.
5. COSTS OF COLLECTION
-------------------
Borrower and all endorsers jointly and severally promise to pay all costs
and expenses of collection, including without limitation, attorneys' fees,
incurred by the Lender in enforcing this Note or the Deed of Trust.
6. BALLOON PAYMENTS
----------------
As more particularly described in Paragraph 3 above, upon the termination
of David L. Cargile's employment with Lender/Beneficiary, this Note, at the
option of Lender, is due and payable upon the one (1) year anniversary of the
Termination. As a result, this Note is subject to Section 2966 of the Civil
Code, which provides that the holder of this Note shall give written notice to
the Trustor, or his successor in interest, of prescribed information at least 90
and not more than 150 days before any balloon payment is due.
7. MISCELLANEOUS PROVISIONS
------------------------
(i) This Note, the Deed of Trust and the Employment Agreement contain the
entire agreement of the parties with respect to the matters covered hereby, and
no other agreement, statement or promise made by any party hereto which is not
contained herein shall be binding or valid.
(ii) Borrower and all endorsers jointly and severally waive presentment for
payment, demand and protest and notice of nonpayment, and waive any right to be
released by reason of any extension of time or change in the terms of payment.
3
<PAGE>
(iii) No failure or delay on the part of Lender in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of power, right or privilege preclude any other
of further exercise of any such power, right or privilege. All powers, rights
and privileges hereunder are cumulative to, and not exclusive of, any powers,
rights or privileges otherwise available.
(iv) This Note may not be transferred or assigned by Borrower without the
express written consent of Lender, which consent shall not be unreasonably
withheld.
(v) The term "Borrower" as used herein in every instance shall include
the maker's successors and assigns and shall denote the singular and/or plural,
the masculine and/or feminine and natural and/or artificial persons whenever and
wherever the context so requires or admits.
BORROWER:
---------
/s/ David L. Cargile
--------------------
David L. Cargile
/s/ Ann M. Cargile
------------------
Ann M. Cargile
4
<PAGE>
Order No.
Escrow No.
Loan No.
RECORDING REQUESTED BY:
FIRST AMERICAN TITLE DOC # 95-0323368
WHEN RECORDED MAIL TO: 28-JUL-1995 02:44 PM
Recorded in Official Records
US Facilities Corporation Of Orange County, California
650 Town Center Drive Gary L. Granville, Clerk-Recorder
Suite 1600 Page 1 of 5 Fees: $ 26.00
Costa Mesa, CA 92626 Tax: $ 0.00
________________________________________________________________________________
SPACE ABOVE THIS LINE FOR RECORDER'S USE
OR-9500644-MT DEED OF TRUST WITH ASSIGNMENT OF RENTS
(SHORT FORM)
This DEED OF TRUST, made ,between
David L. Cargile and Ann M. Cargile, husband and wife herein called
TRUSTOR, whose address is 26231 Mount Diablo Road, Laguna Hills,
(Number and Street) (City)
California ,
(State)
FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called
TRUSTEE, and
US FACILITIES CORPORATION, a Delaware corporation
, herein called BENEFICIARY,
WITNESSETH: That Trustor grants to Trustee in trust, with power of sale, that
property in the
City of Laguna Hills County of Orange , State of
California, described as:
Lot 166 of Tract 9296 as per map recorded in Book 466, Pages 5-18 of
the Official Records of Orange County, California.
Such property is commonly known as 26231 Mount Diablo Road, Laguna
Hills, California (the "Property").
together with the rents, issues and profits thereof, subject, however, to the
right, power and authority hereinafter given to and conferred upon Beneficiary
to collect and apply such rents, issues and profits for the purpose of securing
(1) payment of the sum of $649,000.00 with interest thereon according to the
terms of a promissory note or notes of even date herewith made by Trustor,
payable to order of Beneficiary, and extensions or renewals thereof, (2) the
performance of each agreement of Trustor incorporated by reference or contained
herein and (3) payment of additional sums and interest thereon which may
hereafter be loaned to Trustor, or his successors or assigns, when evidenced by
a promissory note or notes reciting that they are secured by this Deed of Trust.
To protect the security of this Deed of Trust, and with respect to the property
above described, Trustor expressly makes each and all of the agreements, and
adopts and agrees to perform and be bound by each and all of the terms and
provisions set forth in subdivision A, and it is mutually agreed that each and
all of the terms and provisions set forth in subdivision B of the fictitious
deed of trust recorded in Orange County August 17, 1964, and in all other
counties August 18, 1964, in the book
(continued on reverse side)
1158 (1/94)
Page 1 of 4
<PAGE>
and at the page of Official Records in the office of the county recorder of the
county where said property is located, noted below opposite the name of such
county, namely:
<TABLE>
<CAPTION>
COUNTY BOOK PAGE COUNTY BOOK PAGE
<S> <C> <C> <C> <C> <C>
Alameda 1288 556 Kings 858 713
Alpine 3 130-31 Lake 437 110
Amador 133 438 Lassen 192 367
Butte 1330 513 Los Angeles T-3878 874
Calaveras 185 338 Madera 911 136
Colusa 323 391 Marin 1849 122
Contra Costa 4684 1 Mariposa 90 453
Del Norte 101 549 Mendocino 667 99
El Dorado 704 635 Merced 1660 753
Fresno 5052 623 Modoc 191 93
Glenn 469 76 Mono 69 302
Humboldt 801 83 Monterey 357 239
Imperial 1189 701 Napa 704 742
Inyo 165 672 Nevada 363 94
Kern 3756 690 Orange 7182 18
<CAPTION>
COUNTY BOOK PAGE COUNTY BOOK PAGE
<S> <C> <C> <C> <C> <C>
Placer 1028 379 Sierra 38 187
Plumas 166 1307 Siskiyou 506 762
Riverside 3778 347 Solano 1287 621
Sacramento 5039 124 Sonama 2067 427
San Benito 300 405 Stanisiaus 1970 56
San Bernardino 6213 768 Sutter 655 585
San Francisco A-804 596 Tehama 457 183
San Joaquin 2855 283 Trinity 108 595
San Luis Obispo 1311 137 Tulare 2530 108
San Mateo 4778 175 Tuolumme 177 160
Santa Barbara 2065 881 Ventura 2607 237
Santa Clara 6626 664 Yolo 769 16
Santa Cruz 1638 607 Yuba 398 693
Shasta 800 663
San Diego SERIES 5 Book 1964, Page 149774
</TABLE>
shall inure to and bind the parties hereto, with respect to the property above
described. Said agreements, terms and provisions contained in said subdivisions
A and B, (identical in all counties, and printed on pages 3 and 4 hereof) are by
the within reference thereto, incorporated herein and made a part of this Deed
of Trust for all purposes as fully as if set forth at length herein, and
Beneficiary may charge for a statement regarding the obligation secured hereby,
provided the charge therefor does not exceed the maximum allowed by law.
The undersigned Trustor, requests that a copy of any notice of default and any
notice of sale hereunder be mailed to him at his address hereinbefore set forth.
See Rider A attached hereto and incorporated herein
by this reference.
STATE OF GEORGIA }
COUNTY OF DEKALB }ss. Signature of Trustor
-----------
On JULY 24, 1995 before me, /s/ David L. Cargile
-------------------------- -------------------------------------
LINDA K. RICHARDS , David L. Cargile
- ------------------------------------- -------------------------------------
personally appeared DAVID L. CARGILE /s/ Ann M. Cargile
------------------ -------------------------------------
AND ANN M. CARGILE , Ann M. Cargile
- ------------------------------------- -------------------------------------
personally known to me (or proved to me
on the basis of satisfactory evidence)
to be the person(s) whose name(s)
is/are subscribed to the within
instrument and acknowledged to me that
he/she/they executed the same in
his/her/their authorized capacity(ies),
and that by his/her/their signature(s)
on the instrument the person(s) or the
entity upon behalf of which the
person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Signature /s/ Linda K. Richards
----------------------------
Notary Public, Gwinnett County, Georgia (This ares for official notarial seal)
My Commission Expires April 14, 1996
(continued on next page)
1158 (1/94)
Page 2 of 4
<PAGE>
DO NOT RECORD
The following is a copy of Subdivisions A and B of the fictitious Deed of Trust
recorded in each county in California as stated in the foregoing Deed of Trust
and incorporated by reference in said Deed of Trust as being a part thereof as
if set forth at length therein.
A. To protect the security of this Deed of Trust, Trustor agrees:
(1) To keep said property in good condition and repair; not to remove or
demolish any building thereon; to complete or restore promptly and in good and
workmanlike manner any building which may be constructed, damaged or destroyed
thereon and to pay when due all claims for labor performed and materials
furnished therefor; to comply with all laws affecting said property or requiring
any alterations or improvements to be made thereon; not to commit or permit
waste thereof; not to commit, suffer or permit any act upon said property in
violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all
other acts which from the character or use of said property may be reasonably
necessary, the specific enumerations herein not excluding the general.
(2) To provide, maintain and deliver to Beneficiary fire insurance
satisfactory to and with loss payable to Beneficiary. The amount collected under
any fire or other insurance policy may be applied by Beneficiary upon any
indebtedness secured hereby and in such order as Beneficiary may determine, or
at option of Beneficiary the entire amount so collected or any part thereof may
be released to Trustor. Such application or release shall not cure or waive any
default or notice of default hereunder or invalidate any act done pursuant to
such notice.
(3) To appear in and defend any action or proceeding purporting to affect
the security hereof or the rights or powers of Beneficiary or Trustee; and to
pay all costs and expenses, including cost of evidence of title and attorney's
fees in a reasonable sum, in any such action or proceeding in which Beneficiary
or Trustee may appear, and in any suit brought by Beneficiary to foreclose this
Deed.
(4) To pay; at least ten days before delinquency all taxes and assessments
affecting said property, including assessments on appurtenant water stock; when
due, all encumbrances, charges and liens, with interest, on said property or any
part thereof, which appear to be prior or superior hereto; all costs, fees and
expenses of this Trust.
Should Trustor fail to make any payment or to do any act as herein
provided, then Beneficiary or Trustee, but without obligation so to do and
without notice to or demand upon Trustor and without releasing Trustor form any
obligation hereof, may: make or do the same in such manner and to such extent as
either may deem necessary to protect the security hereof. Beneficiary or Trustee
being authorized to enter upon said property for such purposes; appear in and
defend any action or proceeding purporting to affect the security hereof or the
rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise
any encumbrance, charge or lien which in the judgement of either appears to be
prior or superior hereto; and, in exercising any such powers, pay necessary
expenses, employ counsel and pay his reasonable fees.
(5) To pay immediately and without demand all sums so expended by
Beneficiary or Trustee, with interest from date of expenditure at the amount
allowed by law in effect at the date hereof, and to pay for any statement
provided for by law in effect at the date hereof regarding the obligation
secured hereby any amount demanded by the Beneficiary not to exceed the maximum
allowed by law at the time when said statement is demanded.
B. It is mutually agreed:
(1) That any award of damages in connection with any condemnation for
public use of or injury to said property or any part thereof is hereby assigned
and shall be paid to Beneficiary who may apply or release such monies received
by him in the same manner and with the same effect as above provided for
disposition of proceeds of fire or other insurance.
(2) That by accepting payment of any sum secured hereby after its due
date, Beneficiary does not waive his right either to require prompt payment when
due of all other sums so secured or to declare default for failure so to pay.
(3) That at any time or from time to time, without liability therefor and
without notice, upon written request of Beneficiary and presentation of this
Deed and said note for endorsement, and without affecting the personal liability
of any person for payment of the indebtedness secured hereby, Trustee may:
reconvey any part of said property; consent to the making of any map or plat
thereof; join in granting any easement thereon; or join in any extension
agreement or any agreement subordinating the lien or charge hereof.
(4) That upon written request of Beneficiary stating that all sums secured
hereby have been paid, and upon surrender of this Deed and said note to Trustee
for cancellation and retention or other disposition as Trustee in its sole
discretion may choose and upon payment of its fees, Trustee shall reconvey,
without warranty, the property then held hereunder. The recitals in such
reconveyance of any matters or facts shall be conclusive proof of the
truthfulness thereof. The Grantee in such reconveyance may be described as "the
person or persons legally entitled thereto."
(5) That as additional security, Trustor hereby gives to and confers upon
Beneficiary the right, power and authority, during the continuance of these
Trusts, to collect the rents, issues and profits of said property, reserving
unto Trustor the right , prior to any default by Trustor in payment of any
indebtedness secured hereby or in performance of any agreement hereunder, to
collect and retain such rents, issues and profits as they become due and
payable. Upon any such default, Beneficiary may at any time without notice,
either in person, by agent, or by a receiver to be appointed by a court, and
without regard to the adequacy of any security for the indebtedness
hereby secured, enter upon and take possession of said property or any part
thereof, in his own name sue for or otherwise collect such rents, issues, and
profits, including those past due and unpaid, and apply the same, less costs and
expenses of operation and collection, including reasonable attorney's fees, upon
any indebtedness secured hereby, and in such order as Beneficiary may determine.
The entering upon and taking possession of said property, the collection of such
rents, issues and profits and the application thereof as aforesaid, shall not
cure or waive any default or notice of default hereunder or invalidate any act
done pursuant to such notice.
(6) That upon default by Trustor in payment of any indebtedness secured
hereby or in performance of any agreement hereunder, Beneficiary may declare all
sums secured hereby immediately due and payable by delivery to Trustee of
written declaration of default demand for sale and of written notice of default
and of election to cause to be sold said property, which notice Trustee shall
cause to be filed for record. Beneficiary also shall deposit with Trustee this
Deed, said note and all documents evidencing expenditures secured hereby.
After the lapse of such time as may then be required by law following the
recordation of said notice of default, and notice of sale having been given as
then required by law, Trustee, without demand on Trustor, shall sell said
property at the time and place fixed by it in said notice of sale, either as a
whole or in separate parcels, and in such order as it may determine, at public
auction to the highest bidder for cash in lawful money of the United States,
payable at time of sale. Trustee may postpone sale of all or any portion of said
property by public
(continued on reverse side)
1158 (1/94)
Page 3 of 4
<PAGE>
announcement at such time and place of sale, and from time to time thereafter
may postpone such sale by public announcement at the time fixed by the
preceding postponement. Trustee shall deliver to such purchaser its deed
conveying the property so sold, but without any covenant or warranty, expressed
or implied. The recitals in such deed of any matters or facts shall be
conclusive proof of the truthfulness thereof. Any person, including Trustor,
Trustee, or Beneficiary as hereinafter defined, may purchase at such sale.
After deducting all costs, fees and expenses of Trustee and of this Trust,
including cost of evidence of title in connection with sale, Trustee shall apply
the proceeds of sale to payment of: all sums expended under the terms hereof,
not then repaid, with accrued interest at the amount allowed by law in effect at
the date hereof; all other sums then secured hereby; and the remainder, if any,
to the person or persons legally entitled thereto.
(7) Beneficiary, or any successor in ownership of any indebtedness secured
hereby, may from time to time, by instrument in writing, substitute a successor
or successors to any Trustee named herein or acting hereunder, which instrument,
executed by the Beneficiary and duly acknowledged and recorded in the office of
the recorder of the county or counties where said property is situated, shall be
conclusive proof of proper substitution of such successor Trustee or Trustees,
who shall, without conveyance from the Trustee predecessor, succeed to all its
title, estate, rights, powers and duties. Said instrument must contain the name
of the original Trustor, Trustee and Beneficiary hereunder, the book and page
where this Deed is recorded and the name and address of the new Trustee.
(8) That this Deed applies to, inures to the benefit of, and binds all
parties hereto, their heirs, legatees, devisees, administrators, executors,
successors and assigns. The term Beneficiary shall mean the owner and holder,
including pledgees, of the note secured hereby, whether or not named as
Beneficiary herein. In this Deed, whenever the context so requires, the
masculine gender includes the feminine and/or neuter, and the singular number
includes the plural.
(9) That Trustee accepts this Trust when this Deed, duly executed and
acknowledged, is made a public record as provided by law. Trustee is not
obligated to notify any party hereto of pending sale under any other Deed of
Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee
shall be a party unless brought by Trustee.
DO NOT RECORD REQUEST FOR FULL RECONVEYANCE
- -------------
TO FIRST AMERICAN TITLE INSURANCE COMPANY, TRUSTEE:
The undersigned is the legal owner and holder of the note or notes, and of all
other indebtedness secured by the foregoing Deed of Trust. Said note or notes,
together with all other indebtedness secured by said Deed of Trust, have been
fully paid and satisfied; and you are hereby requested and directed, on payment
to you of any sums owing to you under the terms of said Deed of Trust, to cancel
said note or notes above mentioned, and all other evidences of indebtedness
secured by said Deed of Trust delivered to you herewith, together with the said
Deed of Trust, and to reconvey, without warranty, to the parties designated by
the terms of said Deed of Trust, all the estates now held by you under the same.
Dated ______________________________
________________________________________
________________________________________
Please mail Deed of Trust,
Note and Reconveyance to ______________________________________________________
Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both
- -------------------------------------------------------------------------------
must be delivered to the Trustee for cancellation before reconveyance will be
- -------------------------------------------------------------------------------
made.
- -----
DEED OF TRUST WITH POWER OF SALE
[LOGO OF FIRST AMERICAN TITLE INSURANCE COMPANY APPEARS HERE]
FIRST AMERICAN TITLE INSURANCE COMPANY TRUSTEE
1158 (1/94)
Page 4 of 4
<PAGE>
Rider A
TO
DEED OF TRUST WITH ASSIGNMENT OF RENTS
AND LEASES
Dated as of July 21, 1995 ("Deed Of Trust")
From: David L. Cargile and Ann M. Cargile, husband and wife, Trustor
To: First American Title Insurance Company, Trustee
Beneficiary: US Facilities Corporation, Beneficiary
The following additional provisions are made a part of the Deed of
Trust:
A. After the second full paragraph (commencing with the words
"Together with the rents...," the following is added:
and along with all of Trustor's right, title and interest in (all of
which together are referred to herein as the "Property") all buildings,
improvements and tenements now or hereafter erected on the Property, and all
easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights
and profits, water rights and stock, and all permanent fixtures, now or
hereafter located in, or on, or used or intended to be used in connection with
the Property, and all replacements and additions thereto, substitutions for any
of the foregoing and proceeds and products thereof.
B. Required Insurance. Paragraph (4) of this Deed of Trust is
------------------
modified to require that Trustor provide, maintain and keep in force the
following policies of insurance:
Trustor shall keep the improvement now existing or hereafter erected
on the Property insured by carriers at all times satisfactory to Beneficiary
against loss by fire, hazards included within the term "extended coverage," and
such other hazards, casualties, liabilities and contingences as Beneficiary
reasonably shall require and in such amounts and for such periods as Beneficiary
shall require. Trustor shall be relieved of its obligation to keep a coverage
in effect if such coverage is not generally available or if the price, terms or
conditions of such coverage would generally negate the benefit of having such
coverage in place.
All insurance policies and renewals thereof shall be in a form
acceptable to Beneficiary and shall include a standard mortgagee clause in favor
of and in form acceptable to Beneficiary. In the event of loss, Trustor shall
give immediate written notice to the insurance carrier and to Beneficiary.
<PAGE>
C. Delivery of Policies, Payment of Premiums. Paragraph A(2) of
-----------------------------------------
this Deed of Trust shall be further modified as follows:
All policies of insurance for liability shall name Beneficiary as an
additional insured party. All such policies shall contain a provision that such
policies will not be canceled or materially amended, which term shall include
any reduction in the scope or limits of coverage, without at least thirty (30)
days prior written notice to Beneficiary. In the event Trustor fails to
provide, maintain, keep in force or deliver and furnish to Beneficiary the
policies of insurance required by this paragraph, Beneficiary, may procure such
insurance or single-interest insurance for such risk covering Beneficiary's
interest, and Trustor will pay all premiums thereon promptly upon demand by
Beneficiary.
D. Events of Default. Paragraph B(6) of this Deed of Trust is
-----------------
modified to provide that the following events shall be deemed a "Default" under
this Deed of Trust entitling Beneficiary to remedies set forth in this Deed of
Trust:
(i) The occurrence of a breach of or default under that certain
Promissory Note Secured by Deed of Trust of even date herewith between the
parties.
(ii) The Failure by the Trustor to keep the Property insured as
required by this Deed of Trust, unless such failure is remedied within sixty
(60) days.
(iii) The failure by the Trustor to pay all taxes, assessments or fees
due with respect to the Property, unless such failure is remedied within sixty
(60) days.
E. Transfers of Property or Termination of Borrower. Upon any sale,
------------------------------------------------
encumbrance, hypothecation or other transfer of the Property or any part of or
interest in the Property, Beneficiary may, at its option, declare all of the
sums secured by this Instrument to be immediately due and payable. In addition,
upon termination of David L. Cargile's employment with Beneficiary for any
reason whatsoever (a "Termination"), Beneficiary may, at its option, declare all
sums due hereunder to be due and payable upon the one (1) year anniversary of
such Termination. In either event, if Trustor fails to pay all principal and
accrued but unpaid interest due under the Note in accordance with the terms
thereof, Trustor shall be in default under this Instrument. Beneficiary may
invoke all of the remedies available under this Instrument or otherwise
available at law or in equity.
Any party may at any time change its address for such notices by
delivering or mailing to the other parties hereto, as aforesaid, a notice of
such change.
TRUSTOR:
/s/ David L. Cargile
--------------------
David L. Cargile
/s/ Ann M. Cargile
------------------
Ann M. Cargile
2
<PAGE>
STATE OF GEORGIA )
) SS:
COUNTY OF Dekalb )
------
On July 24, 1995, before me, Linda K. Richards, a Notary Public in and for
-- -----------------
said State, personally appeared Ann M. Cargile, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person whose name
is subscribed to the within Deed of Trust and acknowledged to me that she
executed the same in her authorized capacity, and that here signature on the
Deed of Trust the person, or the entity upon behalf of which the person acted,
executed the Deed of Trust.
WITNESS my hand and official seal.
NOTARY PUBLIC, GWINNETT COUNTY, GEORGIA
/s/ Linda K. Richards MY COMMISSION EXPIRES APRIL 14, 1996
- ---------------------
(SEAL)
STATE OF GEORGIA )
) SS:
COUNTY OF Dekalb )
------
On July 24, 1995, before me, Linda K. Richards, a Notary Public in and for
-- -----------------
said State, personally appeared David L. Cargile, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person whose name
is subscribed to the within Deed of Trust and acknowledged to me that he
executed the same in his authorized capacity, and that by his signature on the
Deed of Trust the person, or the entity upon behalf of which the person acted,
executed the Deed of Trust.
WITNESS my hand and official seal.
NOTARY PUBLIC, GWINNETT COUNTY, GEORGIA
/s/ Linda K. Richards MY COMMISSION EXPIRES APRIL 14, 1996
- ---------------------
(SEAL)
3
<PAGE>
EXHIBIT 10.14(v)
Severance Agreement
_______________ __ _______________
This Agreement is made and entered into as of this 24th day of May,
1994, by and between US Facilities Corporation, a Delaware corporation (the
"Company"), and Craig J. Kelbel ("Executive").
RECITALS
Whereas, the Executive is currently employed by the Company and is
considered a key employee of the Company; and
Whereas, the Company desires to retain the services of the Executive;
and
Whereas, the Company and the Executive desire to set forth the amounts
payable and benefits to be provided by the Company to the Executive in the event
of a termination of the Executive's employment with the Company under the
circumstances set forth herein after the happening of a Change in Control (as
defined herein);
Now, Therefore, in consideration of the foregoing and the mutual
agreements contained herein, and intending to be legally bound hereby, the
parties agree as follows:
AGREEMENT
1. Continued Employment. In reliance upon the promises of the
--------------------
Company hereinafter contained, the Executive agrees that, for a period of not
less than six (6) months commencing on the date set forth above, and subject to
reasonable
<PAGE>
absences for illness, holiday and vacation or personal leave of absence in
accordance with the Company's policies and practices in effect on the date
hereof, the Executive will continue his employment with the Company and shall
devote his best efforts to such duties as may be assigned to him by the Company
from time to time; provided, however, that such duties shall not be inconsistent
with Executive's present duties unless he consents thereto in writing.
2. Other Severance Arrangements. Except to the extent specifically
----------------------------
set forth herein, in the event of the termination of the Executive's employment
with the Company, the Executive shall be entitled to receive any Company
benefits payable under any employee benefit plan, program, policy or arrangement
as such may then be in effect, including all such termination arrangements with
Executive that may be described in any employment agreement.
3. Effective Date. This Agreement shall be effective as of the date
--------------
first above written ("Effective Date") and shall continue and remain in full
force and effect until the termination of Executive's employment with the
Company, unless this Agreement is earlier terminated by the parties in writing.
The completion of six (6) months of employment with the Company by the Executive
as set forth in Section 1 shall not be a condition precedent to the
effectiveness of this Agreement or to the payments of amounts or provision of
benefits hereunder in the event the Executive's employment with the Company is
terminated under the circumstances described in Section 4(b).
4. Termination of Employment.
-------------------------
(a) Events Requiring No Payments Under Section 5: In the event the
Executive's employment with the Company is terminated under any of the
-2-
<PAGE>
following circumstances, no payments shall be or become due and owing, and the
Company shall have no other obligations under Section 5 of this Agreement:
(i) By either party for any reason prior to the happening of a
Change in Control;
(ii) By either party for any reason at any time more than two
(2) years after a Change in Control;
(iii) By the Company at any time, whether prior to,
contemporaneous with or subsequent to a Change in Control, for reason
of "Cause" (as hereinafter defined) or due to the request or demand of
any regulatory authority; or
(iv) By the Executive at any time, whether prior to,
contemporaneous with or subject to a Change in Control, upon his
retirement or resignation for reasons other than "Good Reason" (as
hereinafter defined).
Notwithstanding the foregoing, nothing contained in this Section 4(a) shall
prevent the Executive or his spouse, heirs, estate or personal representative
from receiving any amounts payable under any other plan, program, policy or
arrangement that is not a severance plan, program, policy or arrangement.
(b) Events Requiring Payments Under Section 5: In the event the
Executive's employment with the Company is terminated under any of the following
circumstances set forth in (i) and (ii) below, the Company shall make the
payments and provide the benefits as set forth in Section 5:
-3-
<PAGE>
(i) By the Company, contemporaneously with or within two (2)
years after the happening of a Change in Control, for any reason other
than (1) for Cause or (2) due to the request or demand of any
regulatory authority; or
(ii) By the Executive, contemporaneously with or within two
(2) years after a Change in Control, for Good Reason.
(c) For purposes of this Agreement, the term "Cause" shall mean (i)
the commission by Executive of any material act of fraud or dishonesty; (ii) a
final conviction of Executive of a felony in either a state or federal court
proceeding; (iii) intentional and willful failure by Executive to faithfully
carry out his duties and responsibilities as an employee of the Company, after
reasonable notice in writing to and discussion thereafter with Executive; and
(iv) Executive engaging in activities which place Executive in a direct or
indirect conflict with the Company or its interests. The decision as to the
existence of "Cause," as described in (i), (iii) and (iv) above, shall be
determined by a majority of the Company's nonemployee Directors; provided,
however, if there is a change in the composition of the Board such that those
persons who served as nonemployee Directors on the Effective Date of this
Agreement represent less than fifty percent (50%) of the total number of
nonemployee Directors, then "Cause" shall be determined by use of the Settlement
of Disputes provisions set forth in Section 8 of this Agreement.
(d) For purposes of this Agreement, the term "Good Reason" shall mean
the following five (5) events; provided, however, that Executive may waive in
writing his objection to the occurrence of any such event, in which case such
event will no longer constitute "Good Reason":
-4-
<PAGE>
(i) Any material breach by the Company of its obligations
contained in this Agreement;
(ii) The assignment to the Executive of any duties
inconsistent with the status of his position with the Company as such
duties and position existed on the day immediately preceding the
happening of a Change in Control, or an alteration in the nature or
status of the Executive's duties and responsibilities that renders the
Executive's position to be of less dignity, responsibility or scope
from that which existed on the day immediately preceding the happening
of a Change in Control; provided, however, it shall not be an event of
Good Reason if the Executive is assigned additional duties for the
Company or any affiliate or subsidiary of the Company which are not
inconsistent with the duties described in Section 1 hereof so long as
the aggregate of all duties assigned to the Executive in connection
with his service with the Company, its affiliates or subsidiaries do
not require the Executive to devote, on a consistent and sustained
basis, substantially more time than other senior level executives of
the Company are required to devote to their duties;
(iii) A reduction by the Company in the Executive's annual
base salary as was in effect on the day immediately preceding the
happening of a Change in Control or as the same may be increased from
time to time;
(iv) The failure of the Company to continue in effect of the
benefits enjoyed by the Executive under the Company's 1988 Employee
Stock Plan or its 1991 Employee Stock Option Plan or under the
-5-
<PAGE>
Company's Incentive Compensation Program, or any other compensation
plan, program or arrangement, or any of the Company's pension,
retirement, profit sharing, savings, life insurance, medical, health-
and-accident, disability or other employee benefit plans, programs or
arrangements as they existed on the day immediately preceding the
happening of a Change in Control, or the failure of the Company to
continue the Executive's participation therein; or the failure by the
Company to provide the Executive with the number of paid vacation days
to which he is entitled on the basis of years of service and position
with the Company in accordance with the Company's normal vacation
policy, or the failure of the Company to continue or if the Company
adversely changes or reduces other specific contractual benefits or
perquisites provided to Executive as they existed on the day
immediately preceding the happening of a Change in Control, including,
but not limited to, providing an automobile or an automobile allowance,
club memberships, and dues for professional associates for Executive;
(v) The assignment of the Executive to an office which is
located more than 50 miles from the office at which the Executive was
primarily performing his duties on the day immediately preceding the
happening of a Change in Control.
(e) For purposes of this Agreement, a "Change in Control" shall mean
the occurrence, after the Effective Date, of any of the following events:
(i) Any "person" (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934 (the "Exchange Act") and
-6-
<PAGE>
the regulations of the Securities and Exchange Commission (the "SEC")
thereunder, each as in effect on the Effective Date of this Agreement
and (including any such persons that may be deemed to be acting in
concert with respect to the Company or the acquisition, ownership or
voting of Company securities) becomes, directly or indirectly, the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act and
the regulations of the SEC thereunder, each as in effect on the
Effective Date of this Agreement) of outstanding securities of the
Company representing 10% or more of the combined voting power of the
Company's then outstanding securities;
(ii) At any time during the term of this Agreement the
composition of the Board of Directors of the Company is changed such
that persons who were directors of the Company as of the Effective
Date, or persons nominated or elected by a majority of such persons, do
not continue to comprise a majority of the members of such Board of
Directors of the Company;
(iii) At any time during the term of this Agreement the
stockholders of the Company approve a merger or consolidation of the
Company with, or a reorganization transaction involving the Company
and, any other entity, other than a merger, consolidation or
reorganization which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least 50% of the combined voting
power of the voting securities
-7-
<PAGE>
of the Company or such surviving entity outstanding immediately after
such merger or consolidation;
(iv) At any time during the term of this Agreement the
stockholders of the Company approve a plan of complete liquidation of
the Company or an agreement for the sale or disposition by the Company
of more than 50% of its consolidated assets; or
(v) At any time during the term of this Agreement any other
event, transaction or series of events or transactions occurs as a
result of which any person may be presumed to have "acquired control"
of the Company (as such term is defined in Section 1215 of the
Insurance Code of the State of California as in effect on the Effective
Date).
5. Obligations of the Company Upon Termination of Employment. Upon
---------------------------------------------------------
termination of Executive's employment with the Company under the circumstances
set forth in Section 4(b), the Executive shall be entitled to receive,
notwithstanding such termination, the following payments and to be provided the
following benefits:
(a) Salary and Bonus: Subject to the limitations set forth in Section
7 hereof, the Company shall pay to the Executive that amount which is equal to
his regular base salary, at the rate then in effect, for a period of one (1)
year, plus a bonus in an amount which shall be equal to the largest cash bonus
actually received by Executive during his term of employment with the Company.
-8-
<PAGE>
(b) Method of Payment: The payments due to Executive under
Section 5(a) of this Agreement shall be made as follows:
(i) The Company shall pay to the Executive his regular base
salary in installments consistent with the Company's payroll practices
then in effect, or in a single lump sum payment, whichever method is
selected by Executive, in his sole discretion;
(ii) The Company shall pay to Executive the bonus payments in
a single lump sum; and
(iii) Any lump sum payments due to Executive shall be paid to
Executive on the Effective Date of his termination of employment.
(c) Other Benefits: The Company shall continue in force for Executive
for a period of two (2) years after Executive's termination the life insurance,
medical, health-and-accident and disability benefit plans or programs then in
effect on the date of Executive's termination from the Company; provided,
however, that such Other Benefits as are set forth in this Section 5(c) shall
not be required to be available to Executive if subsequent employment by
Executive with another employer offers to Executive similar plans or programs in
which the benefits equal or exceed the benefits which Executive could receive
under the Company's plans or programs as provided herein.
6. No Duty to Mitigate. The Executive shall not be required to
-------------------
mitigate the amount of any payment required hereunder by seeking other
employment or otherwise, nor shall the amount paid hereunder be reduced or
offset by any compensa-
-9-
<PAGE>
tion earned or received by the Executive as a result of employment with another
employer, self-employment or any amount received from any other plan, program,
policy or arrangement of the Company.
7. Nonapplicability of Excise Tax. The parties intend that this
------------------------------
Agreement shall govern the rights an obligations of the parties with respect to
severance payments payable upon a termination of Executive's employment with the
Company, and that the excise tax as provided in Section 280G of the Internal
Revenue Code shall not be applicable to payments under this Agreement.
Accordingly, the parties agree that the aggregate amount which shall be paid to
Executive under this Agreement shall be $1.00 less than that amount which would
make such payment to Executive an "excess parachute payment" under the
provisions of Sections 280G of the Internal Revenue Code, and to which an excise
tax would be applicable.
8. Settlement of Disputes.
----------------------
(a) It is specifically agreed that any controversy or dispute between
the parties to this Agreement involving the construction, interpretation,
application, performance or breach of the terms, covenants or conditions of this
Agreement or in any way arising under this Agreement shall, on demand of one of
the parties by written notice hereto served on the other in the manner
prescribed in Section 9(a) hereof, be determined pursuant to the general
reference procedures prescribed by California Code of Civil Procedure Sections
638(1), et seq., as they may be amended from time to time, by a retired or
former judge of the Superior Court for the County of Orange, State of
California. The parties intend this general reference agreement to be
specifically enforceable in accordance with said Section 638(1).
-10-
<PAGE>
(b) The reference may be commenced by any party hereto by the filing
in the Superior Court of the State of California for the County of Orange of a
petition or a motion for a general reference proceeding.
(c) The petition or motion may designate as a sole referee a retired
judge working with JAMS who is acceptable to that party. If the parties to the
reference proceeding are unable to mutually agree upon a referee, the Presiding
Judge or any judge of the Orange County Superior Court to whom the matter is
assigned shall appoint a retired or former Orange County Superior Court Judge
from those listed with JAMS as available to act as a referee.
(d) The petition and any opposition or response thereto shall recite
in a clear and meaningful manner the factual basis of the controversy between
the parties and identify the issues to be submitted to the referee for decision.
(e) The parties acknowledge that this agreement is specifically
enforceable and that the decision by the referee is tantamount to a judgment by
a trial court (CCP (S) 644) and is subject to review in accordance with CCP (S)
645, and that any judgment rendered in the trial court is appealable in the same
manner as any other trial court judgment.
(f) The parties may agree on limited discovery. However, in the
absence of an agreement, each party may: (i) take up to three depositions not
totaling more than six hours cumulatively; (ii) propound one set of
interrogatories, not to exceed 20 single questions; (iii) serve not more than 10
requests for admissions; and (iv) propound not to exceed 15 requests to produce
documents, all as may be "reasonable," as measured by the circumstances and
amount in dispute between the
-11-
<PAGE>
parties. Any disagreements between the parties regarding discovery matters
shall be resolved by the referee.
(g) The hearing shall be held within 60 days after the referee is
selected. The referee shall issue a written memorandum of decision setting
forth his findings of fact and conclusions of law.
9. Miscellaneous.
-------------
(a) Notices: All notices and other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been duly given if delivered personally or sent by certified
mail, return receipt requested, first-class postage prepaid, to the parties to
this Agreement at the following addresses:
If to the Company: US Facilities Corporation
650 Town Center Drive, Suite 1600
Costa Mesa, California 92626
Attention: Chief Executive Officer
If to Executive: Craig J. Kelbel
56 Prairie Falcon
Aliso Viejo, California 92656
or to such other address as either party to this Agreement shall have last
designated by notice to the other party. All such notices and communications
shall be deemed to have been received on the earlier of the date of receipt or
the third business day after the date of mailing thereof.
-12-
<PAGE>
(b) Binding Effect; Benefits: This Agreement shall be binding upon
and inure to the benefit of the parties to this Agreement and their respective
successors and assigns. Nothing in this Agreement, express or implied, is
intended or shall be construed to give any person, other than the parties to
this Agreement or their respective successors or assigns, any legal or equitable
right, remedy or claim under or in respect of any agreement or any provision
contained herein.
(c) Waiver: Either party hereto may by written notice to the other
(i) extend the time for the performance of any of the obligations or other
actions of the other under this Agreement; (ii) waive compliance with any of the
conditions or covenants of the other contained in this Agreement; and (iii)
waive or modify performance of any of the obligations of the other under this
Agreement. Except as provided in the preceding sentence, no action taken
pursuant to this Agreement, including, without limitation, any investigation by
or on behalf of any party, shall be deemed to constitute a waiver by the party
taking such action of compliance with any representations, warranties, covenants
or agreements contained herein. The waiver by any party hereto of a breach of
any provision of this Agreement shall not operate or be construed as a waiver of
any preceding or succeeding breach and no failure by either party to exercise
any right or privilege hereunder shall be deemed a waiver of such party's rights
or privileges hereunder or shall be deemed a waiver of such party's rights to
exercise the same any subsequent time or times hereunder.
(d) Amendment: This Agreement may be terminated, amended, modified or
supplemented only by a written instrument executed by the Executive and the
Company.
-13-
<PAGE>
(e) Nonassignability: Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be
assignable by either the Company or the Executive without the prior written
consent of the other party.
(f) Governing Law: This Agreement shall be governed by and construed
in accordance with the laws of the State of California, regardless of the law
that might be applied under principles of conflict of laws.
(g) Section and Other Headings: The section and other headings
contained in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.
(h) Withholding of Taxes: The Company may withhold from amounts
required to be paid to the Executive hereunder any applicable federal, state,
local and other taxes with respect thereto; provided, however, that the Company
shall promptly pay over the amounts so withheld to the appropriate taxing bodies
and provide to the Executive appropriate statements on forms proscribed for such
purposes on the amounts so withheld.
(i) Severability: If, for any reason, any provision of this Agreement
is held invalid, such invalidity shall not affect any other provision of this
Agreement not held so invalid, and each such other provision shall, to the full
extent consistent with law, continue in full force and effect. If any provision
of this Agreement shall be held invalid in part, such invalidity shall in no way
affect the rest of such provision not held so invalid, and the rest of such
provision, together with all other provisions of this Agreement, shall to the
full extent consistent with law continue
-14-
<PAGE>
in full force and effect. If this Agreement is held invalid or cannot be
enforced, then to the full extent permitted by law, any prior agreement between
the Company (or any predecessor thereof) and the Executive shall be deemed
reinstated as if this Agreement had not been executed.
(j) Counterparts: This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original and all of which
together shall be deemed to be one and the same instrument.
In Witness Whereof, the Company has caused this Agreement to be
executed and its seal affixed hereunto by its officers thereunto duly
authorized, and the Executive has signed this Agreement, all as of the date
first above written.
Company: US Facilities Corporation
-------
By /s/ George Kadonada
-------------------------------
George Kadonada, Chairman
of the Board, President and
Chief Executive Officer
Executive:
---------
/s/ Craig J. Kelbel
----------------------------------
Craig J. Kelbel
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<PAGE>
EXHIBIT 10.18(i)
FOURTH AMENDMENT TO
OFFICE LEASE
-------------------
This FOURTH AMENDMENT to OFFICE LEASE (the "Amendment") is made and
entered into as of the 29th day of August, 1994 by and between CENTER TOWER
ASSOCIATES, a California general partnership ("Landlord"), and US FACILITIES
CORPORATION, a Delaware corporation ("Tenant"), with respect to the following:
RECITALS
--------
A. Landlord is the landlord and Tenant is the last assignee of the
tenant's interest pursuant to that certain office lease dated May 28, 1985
between Landlord and U.S. Benefits, Inc. (the "Original Lease"), as modified by
two (2) certain letter agreements each dated May 28, 1985 (the "Letters"), a
certain First Amendment to Office Lease dated November 24, 1986 (the "First
Amendment"), a certain Second Amendment to Office Lease dated July 8, 1992 (the
"Second Amendment") and a certain Third Amendment to Office Lease dated May 4,
1993 (the "Third Amendment"). The Original Lease, the Letters, the First
Amendment, the Second Amendment and the Third Amendment are herein sometimes,
collectively, referred to as the "Lease."
B. Pursuant to the Second Amendment and Third Amendment, Tenant
holds, among other spaces, a certain space consisting of approximately 3,309
square feet of Rentable Area and commonly known as Suite 1510 (the "Additional
Space"). The term of the Lease with respect to the Additional Space expired on
July 26,1994 (the "Second Expiration Date"). Tenant desires to further extend
the term of the Lease with respect to the Additional Space, and Landlord is
willing to consent to such extension. Landlord and Tenant enter into this
Amendment to set forth the terms and conditions upon which Tenant shall continue
to hold the Additional Space.
AGREEMENT
---------
IN CONSIDERATION of the foregoing recitals and the mutual promises and
covenants contained herein, Landlord and Tenant agree as follows:
1. Term. The term of the Lease with respect to the Additional Space
----
shall be extended for the period from July 27, 1994 through April 21, 1997 (the
"Second Extension Period").
2. Terms of Leasing. During the Second Extension Period, Tenant
----------------
shall continue to hold and occupy the Additional Space upon all of the terms and
conditions of the Second and Third Amendments, except that:
(a) The Commencement Date of the Second Extension Period shall
be the day following the Second Expiration Date.
(b) Basic Annual Rent for the Additional Space for the Second
Extension Period shall be $16.00 per square foot of Rentable Area. During the
Second Extension Period, Tenant shall also pay all Additional Rent provided for
in Paragraph 3 of the Original Lease with respect to the Additional Space. Basic
Annual Rent and Additional Rent shall be paid at the times and in the manner
provided in Paragraphs 2 and 3 of the Original Lease.
<PAGE>
(c) Landlord and Tenant each represents and warrants to the
other that it has not retained or dealt with any broker, finder or agent in
connection with the negotiation of this Amendment and the Second Extension
Period, and that there is no broker, finder or agent entitled to claim a fee or
commission through or under such warranting party. Each of Landlord and Tenant
agrees to indemnify, defend and hold the other harmless from and against all
claims for a fee or commission by any broker, finder or agent claiming through
or under such warranting party. Payment shall not be a condition precedent to
recovery upon the foregoing indemnification provision.
(d) The provisions of Basic Lease Provisions 4, 5, 6, 7, 8, 10
and 12 and Paragraphs 1, 6(a), 35, 44.1, 44.2, 44.5 and 44.6 of the Original
Lease, the Letters, the First Amendment, paragraphs 3(a), 3(b), 3(c) and 3(d) of
the Second Amendment and paragraphs 1 and 2(a) of the Third Amendment shall have
no application with respect to the Second Extension Period.
(e) Any provisions of the Lease which are superseded by or
inconsistent with the provisions of this Amendment shall have no application to
the Second Extension Period. In the event of any inconsistency between the
provisions of the Lease and the provisions of this Amendment, the provisions of
this Amendment shall control with respect to the Second Extension Period.
3. Other Matters. Landlord and Tenant also acknowledge and agree
-------------
that:
(a) Nothing contained in this Amendment shall affect in any way
the terms of the Lease with respect to the balance of the Premises.
(b) The parties hereto agree that the terms of this Amendment
are confidential and constitute proprietary information of the parties hereto.
Disclosure of the terms hereof could adversely affect the ability of Landlord to
negotiate with other tenants. Each of the parties hereto agrees that it and its
respective partners, officers, directors, employees and attorney shall not
disclose the terms and conditions of this Amendment to any other person without
the prior written consent of the other party hereto except pursuant to an order
of a court of competent jurisdiction; provided, however, that Landlord may
disclose the terms hereof to any lender now or hereafter having a lien on
Landlord's interest in the Building or any portion thereof, and either party may
disclose the terms hereto to its independent accountants who review its
financial statements or prepare its tax returns, to its counsel, bankers,
investment bankers, brokers and agents, governmental agencies or other persons
to whom disclosure is required as a matter of law or a requirement of diligent
inquiry imposed by law and in any action which is brought to prevent the breach
or continued breach of this Lease or to seek damages for any breach or alleged
breach. The foregoing non-disclosure covenant shall also not extend to
disclosure of the terms and conditions of this Amendment to any person or entity
with whom Tenant is negotiating the acquisition (however effected) of Tenant or
substantially all of Tenant's assets or to the lenders, legal counsel or other
professional advisors to such potential acquiror.
(c) Tenant currently holds the entire Additional Space and
accepts the same "AS IS." Landlord shall have no responsibility, either as to
performance or payment, to remodel or renovate the Additional Space for Tenant's
use. Any work of remodeling or renovation of the Additional Space required for
Tenant's use thereof shall (i) be the sole responsibility of Tenant, both as to
performance and payment of the costs thereof, (ii) comply with all applicable
requirements of the Lease and all governmental authorities having jurisdiction
of the Additional Space and (iii) be subject to the prior written approval of
Landlord. No remodeling or renovation by Tenant shall result in any abatement of
the rent payable by Tenant with respect to the Additional Space.
2
<PAGE>
4. Effective Date. This Amendment shall not be effective until
--------------
executed and delivered by both Tenant and Landlord. Upon such last execution and
delivery, this Amendment shall be effective as of July 27, 1994.
5. Counterparts. This Amendment may be executed in two or more
------------
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.
6. Defined Terms. All terms used herein with initial capital letters
-------------
and not defined herein shall have the meanings given to such terms in the Lease.
7. Lease in Effect. Landlord and Tenant acknowledge that the Lease,
---------------
as hereby amended and supplemented, remains in full force and effect in
accordance with its terms.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Fourth
Amendment to Lease to be effective as of the date specified in paragraph 4
hereof.
US FACILITIES CORPORATION, CENTER TOWER ASSOCIATES, a California
a Delaware Corporation general partnership
By /s/ Mark Burke By Tower Associates, a Partnership,
-------------------------- Managing Partner
Title Sr. Vice President
------------------------
By /s/ Chase McLaughlin
----------------------------
Partner
By /s/ John T. Grush
---------------------------
Title Sr. Vice President By /s/ Henry T. Segerstrom
------------------------ ----------------------------
"Tenant" Managing Partner
By /s/ Jeanette E. Segerstrom
----------------------------
Managing Partner
"Landlord"
3
<PAGE>
FIFTH AMENDMENT TO OFFICE LEASE
-------------------------------
This FIFTH AMENDMENT to OFFICE LEASE (the "Amendment") is made and entered
into as of the 1st day of October, 1995 by and between CENTER TOWER ASSOCIATES,
a California general partnership ("Landlord"), and US FACILITIES CORPORATION, a
Delaware corporation ("Tenant"), with respect to the following:
RECITALS
--------
A. Landlord is the landlord and Tenant is the last assignee of the
tenant's interest pursuant to that certain office lease dated May 28, 1985
between Landlord and US Benefits, Inc. (the "Original Lease"), as modified by
two (2) certain letter agreements each dated May 28, 1985 (the "Letters"), a
certain First Amendment to Office Lease dated November 24, 1986 (the "First
Amendment"), a certain Second Amendment to Office Lease dated July 8, 1992 the
("Second Amendment"), a certain Third Amendment to Office Lease dated May 4,
1993 (the "Third Amendment"), and a certain Fourth Amendment to Office Lease
dated August 29, 1994 (the "Fourth Amendment"). The Original Lease, the Letters,
the First Amendment, the Second Amendment, the Third Amendment, and the Fourth
Amendment are herein sometimes, collectively, referred to as the "Lease."
B. Landlord and Tenant desire to enter into this Amendment in order,
among other things, to extend the term of the Lease, to expand the size of the
Premises, to provide a renewal option and to provide a right of first offer. The
Premises currently consists of approximately thirty-six thousand four hundred
twelve (36,412) square feet of Rentable Area and the term is currently scheduled
to expire on April 21, 1997.
AGREEMENT
---------
IN CONSIDERATION of the foregoing recitals and the mutual promises and
covenants contained herein, Landlord and Tenant agree as follows:
1. Term. The term of the Lease with respect to the Premises, as
----
hereinafter expanded and as may be further expanded in the future pursuant to
the terms of this Amendment, shall be extended for the period from April 22,
1997 through March 31, 2007 (the "Extended Term").
2. Lease of Expansion Space. Landlord hereby leases to Tenant, and Tenant
------------------------
hereby hires from Landlord, upon the terms and conditions set forth in this
Amendment, that certain space in the Building located on the fifteenth (15th)
floor and commonly known as suite 1550 which contains approximately three
thousand eight hundred sixty-nine (3,869) square feet of Rentable Area (the
"Expansion Space") as depicted on Exhibit "A" attached hereto and made a part
hereof. The term of the Lease with respect to the Expansion Space shall commence
as of the date of this Amendment (the "Expansion Space Commencement Date") and
shall terminate as set forth in Paragraph 1 above. All terms and conditions of
the Lease shall apply to the Expansion Space as modified by this Amendment. The
Premises and Expansion Space are sometimes hereinafter referred to as the
Premises.
3. Payment of Rent. Basic Annual Rent shall be as follows:
---------------
(a) To and until September 30, 1995, Tenant shall continue to pay
Basic Annual Rent at the rate of $33.72 per square foot of Rentable Area ($2.81
per square foot per month). From the Expansion Space Commencement Date to and
until the Expansion Space Rent Commencement Date, as defined in Paragraph 6
below, Basic Annual Rent at the rate specified in Paragraph 3(b) below, shall be
based on the Rentable Area of the Premises as currently configured (36,412
square feet of Rentable Area); after the expansion Space Rent Commencement Date,
Basic Annual Rent at the rates specified in Paragraphs 3(b) and (c) below, shall
be based upon the Rentable Area of the Premises including the Expansion Space.
(b) For the period from October 1, 1995 through March 31, 2007, and
subject to the increase provided for in Paragraph 3(c) below, Basic Annual Rent
shall be at the rate of $18.60 per square foot of Rentable Area ($1.55 per
square foot per month) of the Premises.
-1-
<PAGE>
(c) The Basic Annual Rent shall be adjusted upward only on a one-time
basis as of October 1, 2000 to reflect any upward change in the cost of living.
The adjustment, if any, shall be calculated upon the basis of the United States
Department of Labor, Bureau of Labor Statistics Consumer Price Index of Urban
Wage Earners and Clerical Workers (Revised Series), subgroup "all items,"
entitled "Consumer Price Index of Urban Wage Earners and Clerical Workers
(Revised Series), Los Angeles-Anaheim-Riverside Average, 1982-1984 = 100)." The
Index for said subgroup published for the month of September, 1995 shall be
considered the initial "base." The then current Basic Annual Rent shall be
adjusted at the adjustment date by the percentage increase, if any, in the Index
published for the month of September, 2000 over the "base"; provided, however,
that in no event shall the Basic Annual Rent after any such adjustment be less
than the Basic Annual Rent in effect immediately prior to such adjustment,
notwithstanding the fact that the Index may, as of the adjustment date, be less
than the "base." Further, no such increase shall exceed seventeen and one-half
percent (17 1/2%). When the new Basic Annual Rent is determined, Landlord shall
give Tenant written notice to that effect indicating how the new Basic Annual
Rent figure was computed.
If, at the adjustment date, there shall not exist the Consumer
Price Index of Urban Wage Earners and Clerical Workers (Revised Series) in the
same format as recited in this Paragraph 3(c), Landlord shall substitute any
official Index published by the Bureau of Labor Statistics, or successor or
similar governmental agency, as may then be in existence and shall be most
nearly equivalent thereto. In effecting such substitution, Landlord shall
utilize any conversion table provided by the governmental agency which issues
such substitute index and shall make such adjustments as may be required so as
to achieve a functional equivalency between the substitute index and the
Consumer Price Index as of September 1995 both in terms of components and the
relative percentages each component contributes to the overall Consumer Price
Index.
If any adjustment provided for herein shall not have been made at
the commencement of the period for which applicable, Tenant shall continue to
pay Basic Annual Rent at the last rate applicable until the Tenant receives
Landlord's written notice as to such adjustment. Within ten (10) days after
Tenant's receipt of Landlord's notice, Tenant shall pay to Landlord an amount
equal to the new Basic Annual Rent divided by twelve (12) and multiplied by the
number of months from October 1, 2000 to the date of receipt of Landlord's
notice, less the aggregate amount paid by Tenant on account of Basic Annual Rent
for the same period. Thereafter, Tenant shall pay Basic Annual Rent at the new
rate set forth in Landlord's notice.
(d) In addition, prior to and following commencement of the Extended
Term, Tenant shall continue to pay all Additional Rent provided for in the
Lease. To and until the Expansion Space Rent Commencement Date, such Additional
Rent shall be based upon the Rentable Area of the Premises without regard for
the Expansion Space, or approximately 36,412 square feet; thereafter, such
Additional Rent shall be based upon the Rentable Area of the Premises including
the Expansion Space or approximately 40,281 square feet, subject to the
provisions of Exhibit "A-3" to the Lease.
(e) Tenant's security deposit as denominated in Item 9 of the Basic
Lease Provisions shall not be increased.
4. Expansion Space. As promptly as practicable following the execution
---------------
and delivery of this Amendment, Landlord shall deliver the Expansion Space to
Tenant and Landlord and Tenant shall diligently undertake and complete the
planning and construction of the Expansion Space.
5. Improvements to the Expansion Space. Immediately subsequent to
-----------------------------------
delivery of the Expansion Space to the Tenant, Tenant shall perform certain work
of remodeling or renovation in the Expansion Space (the "Tenant's Work") and
Landlord shall provide funding for such work but in no event to exceed $25.00
per square foot of Occupied Area or Seventy-Nine Thousand Eight Hundred
Seventy-Five Dollars ($79,875.00) (the "Allowance") including any fees for space
planning, design, engineering and permits, etc.
(a) Tenant's work shall consist of all work depicted on the space
plan (the "Plan") to be prepared by Tenant's planner (the "Planner"), which
shall be subject to approval by both Landlord and Tenant.
(b) Promptly following the execution and delivery of this Amendment,
Tenant shall cause the Planner to prepare and submit for approval by Landlord
and Tenant the Plan for Tenant's Work. Upon approval of the Plan by Landlord and
Tenant, Tenant shall cause the Planner to prepare the working drawings for
Tenant's Work and to apply for and obtain all governmental permits and approvals
required in connection with the performance of Tenant's Work. The working
drawings shall be subject to approval by both the Landlord and Tenant.
-2-
<PAGE>
(c) Promptly upon approval by Landlord and Tenant of the working
drawings for the Tenant's Work, Tenant shall cause three (3) tenant improvements
contractors mutually approved by both Tenant and Landlord to prepare and submit
to Tenant bids for the cost of construction of Tenant's Work. Tenant shall
provide a copy of each such bid to Landlord. Tenant shall select the contractor
to perform the Tenant's Work which selection shall be made by Tenant within ten
(10) business days of Tenant's receipt of the bids. Landlord shall be
responsible for the payment of the cost of construction up to twenty-five
dollars ($25.00) per square foot of Occupied Area and Tenant shall be
responsible for all additional costs, if any. In the event of any cost over
twenty-five dollars ($25.00) per square foot of Occupied Area or the addition of
any cost resulting from any change in or addition to Tenant's Work initiated by
Tenant, Tenant shall pay such amounts.
(d) Promptly following issuance of the governmental permits and
approvals necessary for the conduct of Tenant's Work, Tenant shall cause
Tenant's contractor to commence Tenant's Work and to diligently prosecute the
same to completion. Tenant shall cause Tenant's Work to be completed as promptly
as practicable; however, nothing herein shall require Tenant to utilize any
overtime or special rate labor. Landlord shall fund one-half (1/2) of the
Allowance to Tenant within three (3) business days of the date upon which all of
the following have been accomplished: (i) The Plan and the working drawings have
been fully approved by both Landlord and Tenant; (ii) Tenant has approved a bid,
selected a contractor from the three (3) bidders and executed a construction
contract for the Tenant's work with the selected contractor; and (iii) Tenant
has received validly issued permits from all applicable governmental agencies
having jurisdiction which are required for the Tenant Work in accordance with
the Plan and the approved working drawings. Landlord shall fund the remaining
one-half (1/2) of the Allowance (or so much thereof as may be necessary for
Tenant to satisfy outstanding invoices for the completion of the Tenant Work in
accordance with the Plan and the approved working drawings) to Tenant within
three (3) business days of the date which is the last to occur of: (1) The
Expansion Space Rent Commencement Date; (ii) the completion by Tenant of all of
Tenant's Work, including all punch-list items in conformance with the Plans and
the approved working drawings; and (iii) delivery to Landlord of a list of those
persons or entities retained by Tenant or Tenant's contractor to perform any of
Tenant's Work together with conditional lien releases or other documentary
evidence reasonably satisfactory to Landlord, demonstrating that upon payment to
such persons or entities, all rights of lien or actual liens shall be released.
Tenant shall be solely responsible to pay for all costs of design and
construction of Tenant's Work, subject to the Allowance specified in this
Paragraph 5. In no event shall Landlord be required to fund any portion of the
Allowance during the pendency of any default by Tenant.
(e) Tenant's Work shall comply with all applicable requirements of
all governmental authorities having jurisdiction of the Premises. All Tenant's
Work shall comply with all rules and regulations adopted by Landlord for the
safety of persons and property in and about the Building, for the care and
cleanliness of the Building and for the preservation of the normal operations of
the Building and its occupants, including but not limited to rules and
regulations regulating the usage of the Building elevators and loading docks,
the usage of staging areas outside of the Premises and the hours during which
operations involving noise, dust and odors may be performed. With respect to all
such matters, Tenant and its contractor shall comply with all directions of
Landlord's construction manager.
(f) Tenant may undertake such additional improvements as Tenant may
desire subject to the terms and limitations of the Lease.
(g) Tenant's Work shall be undertaken pursuant to the terms and
conditions of the Work Letter Agreement attached hereto as Exhibit "B" and made
a part hereof.
(h) Tenant agrees and understands that the review of the Plan and the
working drawings pursuant to this Amendment by Landlord is solely to protect the
interests of Landlord in the Building and the Premises, and Landlord shall not
be responsible for the correctness or accuracy of the Plan and/or working
drawings or compliance of the Plan and/or working drawings with applicable laws.
6. Completion of Expansion Space. Promptly following the completion of
-----------------------------
Tenant's Work in the Expansion Space, Tenant shall occupy same. The Expansion
Space Rent Commencement Date shall be April 1, 1996. Subject to securing a valid
certificate of occupancy for the Expansion Space, Tenant may occupy and use the
Expansion Space for the conduct of its normal business operations pursuant to
all of the terms and conditions of this Lease prior to the Expansion Space Rent
Commencement Date and Tenant shall not be responsible for the payment of Basic
Annual Rent or Additional Rent until the Expansion Space Rent Commencement Date.
Tenant's occupancy of the Expansion Space shall be the sole responsibility of
Tenant, both as to performance
-3-
<PAGE>
and payment of all costs thereof. Such occupancy shall be conducted at such
times and in such manner as shall be approved in advance by Landlord. Such
occupancy shall also be conducted in accordance with all reasonable instructions
or directions of Landlord's Building Manager for the purposes of protecting the
Building and its occupants and preventing interference with the operations of
the Building and its occupants. Such instructions or directions may include, but
shall not be limited to, hours of usage of Building elevators, padding of
elevators and methods of movement of large or heavy objects.
7. Modifications to Original Lease. From and after the Expansion Space
------------------------------
Commencement Date, Tenant shall hold and occupy the Premises including the
Expansion Space upon all of the terms and conditions of the Lease as amended by
the Letters, the First Amendment, the Second Amendment, the Third Amendment, the
Fourth Amendment and as hereby amended, except that:
(a) The following Basic Lease Provisions of the Lease shall be
amended to read, in their entireties, as follows:
"1. Building Name: The Center Tower
Floors: 16 and a portion of 15
Address: 650 Town Center Drive
Costa Mesa, CA 92626
Suites: 1600 and 1500 (portions of Suite
1500 were formerly referred to as
Suites 1510 and 1550)
2. Rentable Area: 16th Floor - 21,634 square feet
15th Floor - 18,647 square feet
3. Expense Percentage: 9.5498%
All portions of the Basic Lease Provisions of the Lease not
specifically restated in this Paragraph shall remain in
their original forms set forth in the Lease, and shall
apply, except where superseded by the provisions of this
Amendment, to both the Premises and the Expansion Space."
(b) Basic Lease Provisions 4, 5, 7, 8, 10 and 12 and Paragraphs
1,6(a), 35, 44.1, 44.2, 44.5, 44.6 of the Original Lease, the Letters,
Paragraphs 3(a), 3(b), 3(c), 3(d) and 4 of the First Amendment, Paragraphs 3(a),
3(b), 3(c) and 3(d) of the Second Amendment, Paragraphs 1 and 2(a) of the Third
Amendment and Paragraphs 1, 2(a) and 2(b) of the Fourth Amendment shall have no
application to the Premises including the Expansion Space for the existing term
and the Extended Term.
(c) The Basic Annual Rent and Additional Rent with respect to
the Premises including the Expansion Space shall be as provided in Paragraph 3
above.
(d) Those provisions of the Lease which are superseded by the
provisions of this Amendment shall have no application to the Premises including
the Expansion Premises for the existing term and the Extended Term. In the event
of any inconsistency between the Lease and this Amendment, the provisions of
this Amendment shall control as to the Premises including the Expansion Space
for the Extended Term.
(e) Upon execution of this Amendment and provided Tenant is
current with payment of all of its rental obligations, Tenant's obligations for
the payment of Basic Annual Rent and Additional Rent as calculated under the
Lease in effect prior to this Amendment shall cease to further accrue as of the
Expansion Space Commencement Date and Tenant's obligations for the payment of
Basic Annual Rent and Additional Rent as calculated under this Amendment shall
begin to accrue as of the Expansion Space Commencement Date.
8. Take-Down Space.
---------------
(a) As of April 24, 1996 (the "Take-Down Space Commencement Date"),
Tenant shall lease Suites 1520 and 1530, consisting of 1,600 square feet of
Rentable Area and 1,861 square feet of Rentable Area respectively, (the
"Take-Down Space") as depicted on Exhibit "C" attached hereto and made a part
hereof, for a term commencing on the Take-Down Space Commencement Date and
terminating upon the expiration or earlier termination of this Lease. In the
event that Landlord is reasonably able to deliver the Take-Down Space to Tenant
earlier than the Take-Down
-4-
<PAGE>
Space Commencement Date, then Landlord shall attempt to do so and the Take-Down
Space Commencement Date shall become the date of such delivery. Landlord shall
have no affirmative obligation to deliver the Take-Down Space early but shall
make reasonable attempts to do so without the necessity of spending any money or
making any agreements which are economically disadvantageous to Landlord.
(b) Effective on the Take-Down Space Commencement Date, this Lease,
without further act of either party hereto, shall be deemed amended in the
following respects:
(i) The Take-Down Space shall be added to the Premises, in its
then "as-is" condition and the term "Premises" as used in the
Lease shall be deemed to include the Take-Down Space;
(ii) The amount of Basic Annual Rent and Additional Rent which
Tenant is required to pay under this Lease shall be appropriately
increased at the same rate per square foot of Rentable Area as is
provided in the Lease for the Premises, to reflect the amount of
additional square feet of Rentable Area of the Take-Down Space;
(iii) Tenant's Expense Percentage shall be increased by .8205% to
reflect the addition of the Take-Down Space to the Premises demised
hereunder which shall result in a total Expense Percentage of
10.3703%; and
(iv) The expiration of the term of the Lease for the Take-Down
Space shall be the same as for the Premises.
Except as expressly otherwise provided herein, all of the terms, covenants,
conditions, provisions and agreements of the Lease shall apply to the Take-Down
Space.
(c) Tenant shall accept the Take-Down Space in its then "as-is"
condition. Tenant may construct improvements in the Take-Down Space in
accordance with the terms of the Lease. Tenant shall pay for any and all
improvements.
(d) The Take-Down Space Rent Commencement Date shall be the later of
(i) the date which is sixty (60) days after the Take-Down Space Commencement
Date, or (ii) June 24, 1996. Subject to securing a valid certificate of
occupancy for the Expansion Space, Tenant may occupy and use the Take-Down Space
for the conduct of its normal business operations pursuant to all of the terms
and conditions of this Lease prior to the Take-Down Space Rent Commencement Date
and Tenant shall not be responsible for the payment of Basic Annual Rent or
Additional Rent until the Take-Down Space Rent Commencement Date.
(e) Notwithstanding the provisions of Paragraph 8(d) above and in
lieu of any improvement allowance for the Take-Down Space, Basic Annual Rent
shall be abated for the Take-Down Space as described in the following sentence
and beginning on the first day of the first full calendar month following the
Take-Down Space Rent Commencement Date. Basic Annual Rent for the Take-Down
Space shall be abated in an amount equal to the cost of Tenant's Work (of the
same nature and scope as for the Expansion Space) for the Take-Down Space but in
no event to exceed an amount equal to $10.00 per square foot of Occupied Area
within the Take-Down Space or Twenty-Eight Thousand Five Hundred Eighty Dollars
($28,580.00).
(f) At the Take-Down Space Commencement Date, Landlord does not
guarantee that delivery of the Take-Down Space will not be delayed if the then
existing occupants of the Take-Down Space shall hold over, or for any other
reason beyond Landlord's reasonable control. In such event, Basic Annual Rent
and Additional Rent with respect to the Take-Down Space shall be abated until
landlord legally delivers the same to Tenant, as Tenant's sole resource. If
Landlord has not delivered the Take-Down Space to Tenant within five (5) months
of the Take-Down Space Commencement Date, Tenant shall have the option to
terminate its obligation to take the Take-Down Space by giving a five (5)
business day written notice to Landlord specifying that Tenant elects to
terminate its obligation concerning the Take-Down Space. If Landlord does not
deliver the Take-Down Space to Tenant prior to the expiration of five (5)
business days from the date of Landlord's receipt of Tenant's notice, Tenant's
obligation to take the Take-Down Space shall lapse and be of no further force or
effect with the Lease to otherwise remain fully operative.
-5-
<PAGE>
9. Right of First Offer.
--------------------
(a) Tenant shall be entitled to a continuous right, during the
existing term and the Extended Term, to lease additional space, on the
fourteenth (14th) and seventeenth (17th) floors of the Building (the "ROFO
Space") on a "right of first offer" basis as provided for in this Paragraph 9.
Upon written request from Tenant given at any time during the Lease term or
Additional Term, Landlord shall provide Tenant written notice (the "Availability
Notice") of ROFO space which is then available for lease, if any together with
the Basic Annual Rent and Additional Rent and other primary terms and conditions
upon which Landlord is willing to lease the ROFO Space to Tenant. Tenant shall
have ten (10) business days after its receipt of the Availability Notice (which
notice shall identify the location of the ROFO Space in question, if any) in
which Tenant may give Landlord written notice of Tenant's acceptance of the ROFO
Space on the terms and conditions set forth in the Availability Notice and in
this Paragraph 9 (the "Acceptance Notice"). After the expiration of such ten
(10) business day period, if Tenant has not given Landlord a timely Acceptance
Notice, then Landlord shall be free to lease the ROFO Space to any other person
or entity on any terms and conditions.
(b) Subject to Tenant submitting a written request to Landlord
regarding the availability of the ROFO Space as provided for in subparagraph (a)
above, commencing from the time such ROFO Space becomes available up until ten
(10) business days after Landlord provides Tenant an Availability Notice with
respect to such ROFO Space, Landlord shall not enter into any lease of the ROFO
Space in question with any other person. If during such ten (10) business day
period Tenant gives Landlord an Acceptance Notice, Landlord and Tenant shall
then promptly enter into a lease of the ROFO Space on the terms and conditions
specified in the Availability Notice and in subparagraph (c) below, which space
shall be delivered in its then "as is" condition. The term of the lease for the
ROFO Space shall commence on the "ROFO Space Commencement Date" (as defined in
subparagraph (e) below), and shall terminate upon the expiration or earlier
termination of this Lease.
(c) If Tenant duly elects to lease ROFO Space, then effective on the
ROFO Space Commencement Date, this Lease, without further act of either party
hereto, shall be deemed amended in the following respects:
(i) The ROFO Space shall be added to the Premises, in its then
"as is" condition and the term "Premises" as used in this Amendment shall be
deemed to include the ROFO Space;
(ii) The amount of Basic Annual Rent and Additional Rent which
Tenant is required to pay for the ROFO Space under this Lease shall be as
specified in the Availability Notice as determined by Landlord with reference to
the Fair Market Rental Rate as defined in Paragraph 9(d) below; and
(iii) Tenant's Expense Percentage shall be appropriately increased
to reflect the addition of the ROFO Space to the Premises demised hereunder.
Except as expressly otherwise provided herein, all of the terms, covenants,
conditions, provisions and agreements of the Lease, as amended, shall apply
to the ROFO Space.
(d) Basic Annual Rent and Additional Rent for the ROFO Space shall be
the "Fair Market Rental Rate" and shall be as determined pursuant to this clause
(d). The Availability Notice shall include Landlord's determination, in
Landlord's good faith judgment, of the Fair Market Rental Rate as established by
transactions of comparable space to the ROFO Space located in Center Tower
("Comparable Transactions"), including any periodic increase therein. In no
event, however, shall the Fair Market Rental Rate be less than the amount of
Basic Annual Rent Rate and Additional Rent then in effect under this Lease. If
Tenant gives Landlord an Acceptance Notice, Tenant shall be deemed to have
accepted Landlord's determination of the Fair Market Rental Rate, including any
periodic increases therein. If Tenant shall fail to deliver an Acceptance Notice
in the manner and within the time herein specified, then such failure shall
constitute a rescission of Tenant's exercise of its option for the ROFO Space
and, thereafter, Tenant's option shall have fully and forever lapsed and shall
be of no further force or effect. In the event that Tenant shall deliver an
Acceptance Notice in the manner and within the time herein specified, then the
Basic Annual Rental and Additional Rent for the ROFO Space shall be the Fair
Market Rental Rate so determined by Landlord, and all periodic increases, if
any,as finally determined shall be applicable in full.
(e) The ROFO Space Commencement Date shall be the earlier of (i) the
date which is five (5) business days after Landlord gives Tenant written notice
that the ROFO Space is
-6-
<PAGE>
ready for occupancy; or (ii) upon such earlier date as Tenant takes possession
of or commences use of the ROFO Space for any purpose, including construction.
(f) The option to lease ROFO Space (the "ROFO Option") is personal to
Tenant and may not be exercised or assigned, voluntarily or involuntarily, by,
or to, any person or entity other than Tenant. In the event that at the time
such ROFO Option is exercisable by Tenant, this Lease has been assigned, or a
sublease exists as to any portion of the Premises, the ROFO Option shall be
deemed null and void and Tenant, and any assignee or sublessee, shall not have
the right to exercise the ROFO Option.
(g) Tenant shall have no right to exercise the ROFO Option in the
event that at the time permitted for the exercise of such ROFO Option, or at any
time prior to the ROFO Space Commencement Date, Tenant is in default under any
material provisions of this Lease, as amended.
(h) If Tenant properly exercises the ROFO Option, Landlord and Tenant
shall execute and deliver appropriate documentation to evidence the addition of
the ROFO Space to the Premises hereunder and to reflect corresponding changes to
the Basic Lease Provisions and other Lease terms.
(i) Tenant shall have no rights with respect to any other leasable
space within the Building except as specifically provided in the Lease.
(j) Tenant's ROFO Option under this Paragraph 9 shall be subject and
subordinate to the rights of renewal, extension, first refusal, first right of
negotiation and expansion contained in existing leases within the Building.
(k) If Tenant shall exercise the right of first offer granted herein,
Landlord does not guarantee that the ROFO Space Commencement Date will not be
delayed if the then existing occupants of the ROFO Space shall hold over, or for
any other reason beyond Landlord's reasonable control. In the event, rent with
respect to the ROFO Space shall be abated until Landlord's reasonable control.
In such event, rent with respect to the ROFO Space shall be abated until
Landlord legally delivers the same to Tenant, as Tenant's sole recourse.
10. Option to Extend. In the event that Tenant is not in default
----------------
hereunder beyond any applicable grace or cure period, either at the date of
exercise or at the date upon which the Additional Term (as hereafter defined)
would otherwise commence, Tenant shall have the option to extend the term of
this Lease for one (1) additional term of five (5) years (the "Additional
Term"). Such option shall be exercised, if at all, by written notice from Tenant
to Landlord of Tenant's intention to exercise the option which shall be given
not more than fifteen (15) months and not less than twelve (12) months prior to
expiration of the term specified in this Amendment. Within sixty (60) days of
receipt of such notice, Landlord shall notify Tenant in writing of the terms
upon which Landlord is willing to extend the term of the Lease. Tenant shall
notify Landlord within sixty (60) days of its receipt of Landlord's notice if
Tenant accepts Landlord's terms and conditions for the extension of the Lease.
Failure of Tenant to deliver its notice to Landlord within the sixty (60) day
period shall be deemed a rejection of the Landlord's terms and conditions and
the term shall not be extended and Tenant shall have no further right to extend
the term. In the event that Tenant is not entitled to exercise the option, or is
entitled to exercise the option but fails to do so in the manner and within the
time herein specified, such option shall lapse and thereafter not be exercisable
by Tenant.
In the event that Tenant shall be entitled to exercise and shall
timely and properly exercise the option pursuant to this Paragraph 10, the
Additional Term shall be upon all of the terms and provisions of this Lease, as
amended, except that:
(a) The Additional Term shall commence immediately upon the
expiration of the Extended Term.
(b) The provisions of this Paragraph 10 shall not apply with
respect to Additional Term.
(c) The option to extend the term (the "Extension Option") is
personal to Tenant and may not be exercised or assigned, voluntarily or
involuntarily, by, or to, any person or entity other than Tenant. In the event
that at the time such Extension Option is exercisable by Tenant, this Lease has
been assigned, or a sublease exists as to more than ten percent (10%) of the
Premises any portion of the Premises, the Extension Option shall be deemed null
and void and Tenant and any assignee or sublessee, shall not have the right to
exercise the Extension Option.
-7-
<PAGE>
11. Original Premises Allowance. Within thirty (30) days of mutual
---------------------------
execution and delivery of this Amendment, Landlord shall provide Tenant with an
allowance of One Hundred Fifty Thousand Dollars ($150,000) to be used to
reconfigure, modify and/or improve the Premises. In addition, commencing on May
1, 1997, Basic Annual Rent shall be abated until such time as the aggregate
abatement of Base Annual Rent equals an additional One Hundred Fifty Thousand
Dollars ($150,000). At such time as Tenant has received the full economic
benefit of the foregoing through such abatement of Basic Annual Rent, Tenant's
payment of Basic Annual Rent shall commence again. Tenant shall have the right
to select its own contractor, subject to Landlord's reasonable approval, to
perform such reconfiguration, modification or improvements to the existing
Premises as is permitted by the Lease. Landlord shall not be entitled to any
management or supervision fee in connection with any work to be performed by
Tenant with respect to the Original Premises, the Expansion Space or the Take-
Down Space. Landlord shall cooperate with Tenant in connection with Tenant's
improvement of the Premises (including the Expansion Space and Take-Down Space)
and shall review and approve in a timely manner all plans and other documents
for which Landlord's approval is required hereunder. Landlord's approval where
required under this Amendment shall not be unreasonably withheld.
12. Confidentiality. The parties hereto agree that the terms of this
---------------
Amendment are confidential and constitute proprietary information of the parties
hereto. Disclosure of the terms hereof could adversely affect the ability of
Landlord to negotiate with other tenants. Each of the parties hereto agrees
that it and its respective partners, officers, directors, employees and
attorneys shall not disclose the terms and conditions of this Amendment to any
other person without the prior written consent of the other party hereto except
pursuant to an order of a court of competent jurisdiction; provided, however,
that Landlord may disclose the terms hereof to any lender now or hereafter
having a lien on Landlord's interest in the Premises or any portion thereof, and
either party may disclose the terms hereof including providing copies of or
filing this Amendment with its independent accountants who review its financial
statements or prepare its tax returns, to its counsel, bankers, investment
bankers, brokers, governmental agencies or other persons to whom disclosure is
required as a matter of law or a requirement of diligent inquiry imposed by law
and in any action which is brought to prevent the breach or continued breach of
the lease or to seek damages or any other available remedy for any breach or
alleged breach.
13. Brokers. Other than the Saywitz Company and PM Realty Group, each of
-------
Landlord and Tenant represents and warrants to the other that it has employed no
broker, finder or real estate agent in connection with this Amendment and the
transactions provided for herein, and that there is no broker, finder or real
estate agent who is entitled to a fee or commission from or through such
indemnifying party in connection with this Amendment or the transaction provided
for herein. Landlord shall be responsible for payment of commissions due to the
above named brokers in connection with this transaction. Each of Landlord and
Tenant agrees to indemnify, defend and hold the other harmless from and against
all claims for a fee or commission by any broker, finder or agent other than
those specified above, claiming through such indemnifying party with respect to
this Amendment or the transactions provided for herein. Payment shall not be a
condition precedent to recovery upon the foregoing indemnification provision.
The foregoing indemnification provision shall be deemed to include a covenant by
each indemnifying party to defend the indemnified party against claims covered
by such indemnification with legal counsel reasonably satisfactory to the
indemnified party.
14. Counterparts. This Agreement may be executed in two or more
------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
15. Defined Terms. All terms used in this Amendment with initial capital
-------------
letters and not defined herein shall have the meanings given to such terms in
the Lease.
16. Lease In Effect. Landlord and Tenant acknowledge and agree that the
---------------
Lease, as hereby modified and supplemented, remains in full force and effect in
accordance with its terms.
17. Access. Tenant shall have controlled access to the Premises and the
------
parking provided to Tenant twenty-four (24) hours per day, every day of the
year. The foregoing shall not extend to temporary interruptions of such access
as required for maintenance or repair or as a result of reconstruction or
restoration following a casualty or condemnation or resulting from force majeure
causes.
-8-
<PAGE>
IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this
Amendment to Lease as of the day and year first above written.
US FACILITIES CORPORATION, a CENTER TOWER ASSOCIATES, a California
Delaware corporation general partnership
By /s/ Henry T. Segerstrom
-----------------------------------
Managing Partner
By /s/ Jose A. Velasco By /s/ Jeanette E. Segerstrom
-------------------------------- -----------------------------------
Jose A. Velasco Managing Partner
Title Senior Vice President, Secretary
-----------------------------
and General Counsel By: Tower Associates, a partnership,
Managing Partner
By /s/ Mark Burke
--------------------------------
Mark Burke
Title Senior Vice President, Treasurer By /s/ Henry T. Segerstrom
----------------------------- -------------------------------
and Chief Financial Officer Managing Partner
"Tenant"
By /s/ Chase McLaughlin
-------------------------------
Managing Partner
"Landlord"
Approved as to Form
Pillsbury Madison & Sutro
By: /s/ T. Becket
-----------------------
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<PAGE>
EXHIBIT "A"
FLOOR PLAN OF 15TH FLOOR OF CENTER TOWER BUILDING APPEARS
HERE SHOWING LOCATION OF SUITE 1550 AND OF RESTROOMS,
ELEVATORS AND STAIRWELLS.
[LOGO OF CENTER TOWER APPEARS HERE] Floor 15
650 Town Center Drive Suite 1550
Costa Mesa, California 3,869 Rentable S.F. [KEY MAP APPEARS HERE]
Exhibit "A"
<PAGE>
EXHIBIT "B"
-----------
WORK LETTER AGREEMENT
[BUILD TO SUIT]
In connection with the lease to which this Work Letter is attached (the
"Lease"), Landlord and Tenant hereby agree to the terms and conditions set forth
in this Work Letter relating or the construction of the tenant improvements in
the Expansion Space, herein referred to as Premises (the "Tenant Improvements").
This Work Letter is essentially organized chronologically and addresses the
issues of the construction of the Premises, in sequence, as such issues will
arise during the actual construction of the Premises. All capitalized terms
used but not defined herein shall have the meanings given such terms in the
Lease.
SECTION I.
----------
CONSTRUCTION DRAWINGS FOR THE PREMISES
--------------------------------------
Landlord and Tenant shall approve the Plan including the working drawings
as provided in the Lease. The working drawings shall be referred to as the
"Approved Working Drawings." Tenant shall construct, at Tenant's cost (subject
to the Allowance), the Tenants Improvements pursuant to the Approved Working
Drawings. Tenant shall make no changes or modifications to the Plan or to the
Approved Working Drawings without the prior written consent of Landlord, which
consent shall not be unreasonably withheld. The construction shall be undertaken
in substantial compliance with the Plan and the Approved Working Drawings.
SECTION II.
-----------
SUBSTANTIAL COMPLETION
----------------------
The term "Substantial Completion" means that Tenant has completed the
Tenant Improvements and other work that it is obligated to perform pursuant to
this Work Letter, and that this work shall be deemed complete, notwithstanding
the fact that minor details of construction, mechanical adjustments or
decorations which do not materially interfere with Tenant's use of the Premises
remain to be performed (items normally referred to as "Punch-List Items"). The
Premises shall be deemed to have achieved Substantial Completion even though
Tenant's furniture, telephones, telexes, telecopies, photocopy machines,
computers and other business machines or equipment have not been installed, the
purchase and installation of which shall be Tenant's sole responsibility.
Landlord and Tenant shall conduct a walk-through of the Premises within
three (3) days of Substantial Completion for the purpose of preparing a record
of any Punch-List Items which need to be completed or corrected, and Tenant
shall cause such Punch-List Items to be completed or corrected within a
reasonable time thereafter.
SECTION III.
------------
CONTRACTOR'S WARRANTIES AND GUARANTIES
--------------------------------------
Tenant shall retain, for the mutual benefit of Landlord and Tenant, all
warranties and guaranties by the contractor who constructs the Tenant
Improvements (the "Contractor") relating to the Tenant Improvements, and Tenant
hereby waives all claims against Landlord relating to, or arising out of the
construction of, the Tenant Improvements. Such warranties and guaranties of
Contractor shall guarantee that the Tenant Improvements shall be free from
defects in workmanship and materials for a period of not less than one (1) year
from date of completion thereof, and Contractor shall be responsible for the
replacement and repair, without additional charge, of the Tenant Improvements
that shall become defective within one (1) year after Substantial Completion of
the Premises.
Exhibit "B"
Page 1 of 2
<PAGE>
SECTION IV.
-----------
MISCELLANEOUS
-------------
4.1 FREIGHT ELEVATORS. Landlord shall, consistent with its obligations to
-----------------
other tenants of the Building, and subject to the needs of Landlord with respect
to any construction or alteration of the Base, Shell and Core of the Building,
make the freight elevator reasonably available to Tenant in connection with
initial decorating, furnishing and moving into the Premises.
4.2 TENANT'S REPRESENTATIVE. Tenant has designated Nancy Darragh and Jose
-----------------------
A. Velasco as its sole representatives with respect to the matters set forth in
this Work Letter, either of whom, until further notice to Landlord, shall have
full authority and responsibility to act on behalf of the Tenant as required in
this Work Letter.
4.3 LANDLORD'S REPRESENTATIVE. Landlord has designated John Sterling as
-------------------------
its sole representative with respect to the matters set forth in this Work
Letter, who, until further notice to Tenant, shall have full authority and
responsibility to act on behalf of the Landlord as required in this Work Letter.
4.4 INSURANCE REQUIREMENTS. All of Tenant's contractors and agents shall
----------------------
carry excess liability and Products and Completed Operation Coverage insurance,
each in amounts not less than $500,000 per incident, $1,000,000 in aggregate,
and in form and with companies as are required to be carried by Tenant as set
forth in Paragraph 19 of the Lease, and the policies therefor shall insure
Landlord and Tenant, as their interests may appear, as well as the Contractor,
and shall name as additional insureds Center Tower Associates and all mortgagees
of the Project. Tenant's agents shall maintain the foregoing insurance coverage
in force until the Tenant Improvements are fully completed, except for Products
and Completed Operation Coverage insurance, which is to be maintained for ten
(10) years following completion of Contractor's work and acceptance by Landlord
and Tenant. All insurance maintained by Tenant's agents shall preclude
subrogation claims by the insurer against any one insured thereunder. Such
insurance shall provide that it is primary insurance as respects the Landlord
and that any other insurance maintained by Landlord is excess and not
contributing with the insurance required hereunder.
4.5 TIME OF THE ESSENCE IN THIS WORK LETTER. Unless otherwise indicated,
---------------------------------------
all references herein to a "number of days" shall mean and refer to calendar
days. Time is of the essence with respect of each provision hereof.
4.6 TENANT'S LEASE DEFAULT. Notwithstanding any provision to the contrary
----------------------
contained in this Lease, if an event of default as described in Paragraph 25 of
the Lease, or a material default by Tenant under this Work Letter, has occurred
at any time on or before the Substantial Completion of the Premises, then (i)
in addition to all other rights and remedies granted to Landlord pursuant to the
Lease, Landlord shall have the right to cause Contractor to cease the
construction of the Premises (in which case, Tenant shall be responsible for any
delay in the Substantial Completion of the Premises covered by such work
stoppage), any and all other obligations of Landlord under the terms of this
Work Letter shall be forgiven until such time as default is cured pursuant to
the terms of the Lease.
Exhibit "B"
Page 2 of 2
<PAGE>
EXHIBIT "C"
FLOOR PLAN OF 15TH FLOOR OF CENTER TOWER BUILDING
APPEARS HERE SHOWING LOCATION OF SUITES 1520 AND 1530,
AND OF RESTROOMS, ELEVATORS AND STAIRWELLS.
<TABLE>
<CAPTION>
<S> <C> <C>
[LOGO OF CENTER TOWER APPEARS HERE] Floor 15
650 Town Center Drive Suites 1520 and 1530
Costa Mesa, California 1,600 and 1,861 Rentable S.F., [KEY MAP APPEARS HERE]
respectively
</TABLE>
Exhibit "C"
<PAGE>
EXHIBIT 10.19 (i)
ADDENDUM SIX
to
MANAGEMENT AGREEMENT NO. 1
between
USBENEFITS INSURANCE SERVICES, INC.
and
THE CONTINENTAL INSURANCE COMPANY
AMENDED PROVISIONS
------------------
THIS AGREEMENT is hereby amended for any and all business covered by this
Agreement in the State of Indiana as set forth below. The parties ratify and
confirm all of the other provisions of this Agreement executed by the parties
effective as of January 1, 1994.
A. Section 3 - DUTIES AND RESPONSIBILITIES OF THE UNDERWRITING MANAGER
Add as 3.10: The Underwriting Manager shall not do any of the following:
(a) bind reinsurance or retrocessions on behalf of the
Company; (b) commit the Company to participate in insurance
or reinsurance syndicates; (c) appoint any producer without
assuring the Company that the producer is lawfully licensed
to transact the type of insurance which is the subject of
this Agreement; (d) without the prior approval of the
Company, commit the Company to pay a claim over a specified
amount, net of reinsurance, that shall exceed one percent
(1%) of the Company's policyholder surplus as of December 31
of the last completed calendar year before said payment or
commitment; (e) collect any payment from a reinsurer or
commit the Company to any claim settlement with a reinsurer
without the prior approval of the Company; (f) permit its
subproducer to serve on the Company's board of directors; (g)
jointly employ an individual who is employed with the
Company; or (h) appoint a sub-underwriting manager or sub-
managing general agent. In the event the Underwriting Manager
is given prior approval to commit the Company to any claim
settlement with a reinsurer, the Underwriting Manager shall
promptly forward to the Company a report of such claim
settlement.
<PAGE>
B. Section 4 - PREMIUMS is modified as follows:
4.3 Add to this subsection: The Underwriting Manager will render accounts
to the Company detailing all transactions and will remit all funds due
under this Agreement to the Company on not less than a monthly basis.
C. Section 7 - RECORDS AND REPORTS
7.1 Add to this subsection: The Company shall have access to and the right
to copy all accounts and records of the Underwriting Manager related
to the business of the Company which is the subject of this Agreement
in a form usable by the Company, and the Commissioner of the Indiana
Department of Insurance shall have access to all books, bank accounts,
and records of the Underwriting Manager in a form usable to the
Commissioner of the Indiana Department of Insurance.
D. Section 6 - MANAGEMENT OF CLAIMS AND LOSSES is amended as follows:
6.3 Add to this subsection: Any settlement authority granted to the
Underwriting Manager by the Company under this Agreement may be
terminated for cause upon the Company's written notice to the
Underwriting Manager or upon the termination of this Agreement. The
Company may suspend the settlement authority of the Underwriting
Manager during the pendency of any dispute regarding the cause for
termination of said authority.
E. ADDENDUM ONE
1. Type of Business Covered is amended by adding the following: The
maximum policy period is one (1) year.
8. Policy Cancellation Provisions is amended by adding the following: The
Company shall have the right to cancel or nonrenew any policy of
insurance issued pursuant to this Agreement subject only to policy
provisions and applicable state laws and regulations concerning those
actions.
-2-
<PAGE>
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
officers have caused this Addendum Six to be executed in triplicate this 20th
day of April, 1995.
The Continental Insurance Company
By: /s/ Renate Renfro
-----------------------------------
Witnessed: /s/ David Wachtel
----------------------------
USBenefits Insurance Services, Inc.
By: /s/ John T. Grush
-----------------------------------
John T. Grush, President and
Chief Executive Officer
Witnessed: /s/ Jose A. Velasco
----------------------------
Jose A. Velasco, Senior Vice
President, Secretary and
General Counsel
-3-
<PAGE>
ADDENDUM SIX
to
MANAGEMENT AGREEMENT NO.1
between
USBENEFITS INSURANCE SERVICES, INC.
and
THE CONTINENTAL INSURANCE COMPANY
AMENDED PROVISIONS
THIS AGREEMENT is hereby amended for any and all business covered by this
Agreement in the State of Montana as set forth below. The parties ratify and
confirm all of the other provisions of this Agreement executed by the parties
effective as of January 1, 1994.
A. Section 3 - DUTIES AND RESPONSIBILITIES OF THE UNDERWRITING MANAGER
Add as 3.10: The Underwriting Manager shall not (a) appoint any producer
without ensuring the Company that the producer it appoints is
lawfully licensed to transact the type of insurance which is
the subject of this Agreement; (b) permit any of its
subproducers to serve on the Company's board of directors; or
(c) jointly employ an individual who is also employed with
the Company.
B. ADDENDUM ONE
8. Policy Cancellation Provisions is amended by the addition of the
following: The Company may cancel or decline to renew any policy of
insurance, as provided by law.
C. ADDENDUM FOUR is amended as follows:
2. Crime Policy
The Underwriting Manager shall maintain a crime policy covering any losses
which may occur as a result of the Underwriting Manager's misuse or
improper investment of funds held by the Underwriting Manager on behalf of
the Company
<PAGE>
in an amount equal to the greater of $100,000 or five percent (5%) of the
gross direct written premium underwritten by the Underwriting Manager on
behalf of the Company.
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
officers have caused this Addendum Six to be executed in duplicate this 14th day
of June, 1995.
The Continental Insurance Company
By: /s/ Glenn A. Mateja
----------------------------------
Witnessed: /s/ M. A. McCarney
------------------------------
USBenefits Insurance Services, Inc.
By: /s/ John T. Grush
----------------------------------
Witnessed: /s/ Jose A. Velasco
------------------------------
<PAGE>
ADDENDUM SIX
------------
to
--
MANAGEMENT AGREEMENT NO. 1
--------------------------
between
-------
USBENEFITS INSURANCE SERVICES, INC.
-----------------------------------
and
---
THE CONTINENTAL INSURANCE COMPANY
---------------------------------
AMENDED PROVISIONS
------------------
STATE of MISSOURI
-----------------
THIS AGREEMENT is hereby amended for any and all business covered by this
Agreement in the State of Missouri as set forth below. The parties hereto ratify
and confirm all of the other provisions of this Agreement executed by the
parties effective as of January 1, 1994.
Attached hereto is a Managing General Agent's Contract ("Contract")
between The Continental Insurance Company ("Insurer") and USBenefits
Insurance Services, Inc. ("MGA") dated June 21, 1995 for the State of
Missouri in the form prescribed by the State of Missouri Department of
Insurance which complies with the requirements of the Missouri Managing
General Agents Act (Sections 375.147 to 375.153, RSMo). The parties hereto
agree that the terms and conditions of the Contract shall apply only with
respect to business written in the State of Missouri and that this
Agreement shall continue to govern the terms and conditions of the
relationship between The Continental Insurance Company and USBenefits
Insurance Services, Inc. If there is a conflict between the terms and
conditions of the Contract and this Agreement, the latter shall control
unless a contrary result is clearly required by applicable Missouri law,
in which event such result shall be applicable only with respect to
Missouri business.
<PAGE>
IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
officers have caused this Addendum Six to be executed in duplicate this 21st day
of June 1995.
The Continental Insurance Company USBenefits Insurance Services, Inc.
By: /s/ Glenn A. Mateja By: /s/ John T. Grush
--------------------------------- ---------------------------------
Witness: /s/ M. A. McCarney Witness: /s/ Jeffrey T. Gunckick
---------------------------- ----------------------------
2
<PAGE>
[SEAL STATE OF MISSOURI
APPEARS DEPARTMENT OF INSURANCE P.O. BOX 690
HERE] MANAGING GENERAL AGENTS (MGA) CONTRACT JEFFERSON CITY, MO 65102-0690
- --------------------------------------------------------------------------------
MANAGING GENERAL AGENT'S CONTRACT
Article - Preamble
- --------------------------------------------------------------------------------
(1) The parties to this agreement are:
- --------------------------------------------------------------------------------
(a) THE INSURER
The Continental Insurance Company ("Insurer")
- --------------------------------------------------------------------------------
and
- --------------------------------------------------------------------------------
(b) MANAGING GENERAL AGENT OR MGA
USBenefits Insurance Services, Inc. ("MGA")
- --------------------------------------------------------------------------------
(2) The promises and agreements made by the insurer in this managing general
agent's contract are made in consideration of the promises and agreements
made by the managing general agent. The promises and agreements made by the
managing general agent in this managing general's contract are made in
consideration of the promises and agreements made by the insurer.
(3) This written managing general agent's contract contains the entire
agreement of the insurer and the managing general agent.
(4) This managing general agent's contract will not become effective until
signed by the insurer and the managing general agent, and is filed with and
approved by the director of insurance of the state of Missouri.
Article II - Mandatory Provisions
Not withstanding any provision in this managing general agent's contract or
any other written, oral or parol agreement to the contrary, the following
provisions are binding upon the insurer and the managing general agent:
(1) The insurer may terminate the contract for cause upon written notice to the
managing general agent. The insurer may suspend the underwriting authority
of the managing general agent during the pendency of any dispute regarding
the cause for termination. Nothing in this section is intended to relieve
the managing general agent or insurer of any other contractual obligation;
(2) The managing general agent will render accounts to the insurer detailing
all transactions and remit all funds due under the contract to the insurer
on not less than a monthly basis;
(3) All funds collected for the account of an insurer will be held by the
managing general agent in a fiduciary capacity in a segregated account in a
bank which is a member of the Federal Reserve System. This account shall be
used for all payments on behalf of the insurer and for no other purpose.
The managing general agent may retain no more than three months' estimated
claim payments and allocated loss adjustment expenses;
(4) Separate records of business written by the managing general agent shall be
maintained. The insurer shall have access and right to copy all accounts
and records related to its business in a form usable by the insurer and the
director or insurance of the state of Missouri shall have access to all
books, bank accounts and records of the managing general agent in a form
usable to the director. Such records shall be retained for a minimum of
three years following the transactions to which the records relate;
(5) This contract may not be assigned in whole or in part by the managing
general agent.
(6) Appropriate underwriting guidelines are established in Article III of this
managing general agent's agreement;
- --------------------------------------------------------------------------------
MO 375-0038(8/91)
<PAGE>
- --------------------------------------------------------------------------------
(7) The insurer shall retain the right to cancel or not renew any policy of
insurance subject to the applicable laws and regulations concerning the
cancellation and nonrenewal of insurance policies;
(8) This managing general agent's contract [X] does [ ] does not permit the
managing general agent to settle claims on behalf of the insurer. If this
managing general agent's contract permits the managing general agent to
settle claims on behalf of the insurer.
(a) All claims must be reported to the insurer in a timely manner.
(b) A copy of the claim will be sent to the insurer at its request or as
soon as it becomes known that the claim:
a. Has the potential to exceed $24,000 or exceeds the limit set by
the insurer, ($ 50,000), whichever is less;
b. Involves a coverage dispute;
c. May exceed the managing general agent's claims settlement
authority;
d. Is open for more than six months; or
e. Is closed by payment of $24,000 or the amount set by the insurer,
whichever is less.
(c) All claim files will be the joint property of the insurer and
managing general agent. However, upon an order of liquidation of the
insurer such files shall become the sole property of the insurer or
its estate, but the managing general agent shall have reasonable
access to and the right to copy the files on a timely basis;
(d) Any settlement authority granted to the managing general agent may be
terminated for cause upon the insurer's written notice to the
managing general agent or upon the termination of the contract. The
insurer may suspend the settlement authority during the pendency of
the dispute regarding the cause of termination. Nothing in this
paragraph is intended to relieve the managing general agent or
insurer or any other contractual obligation.
(e) Article III contains other provisions relating to the settlement of
claims by the managing general agent on behalf of the insurer.
(9) Electronic claims files [ ] are [X] are not in existence. If such files
are in existence, Article III of this managing general agent's contract
will contain provisions which govern the timely transmission of the data
by the managing general agent to the insurer.
(10) This contract [ ] does [X] does not provide for a sharing of interim
profits by the managing general agent. If this contract does provide for
such sharing, then:
(a) provisions for such sharing are described in Article III of this
managing general agent's contract.
(b) If the managing general agent has the authority to determine the
amount of the interim profits by establishing loss reserves or
controlling claim payments, or in any other manner, interim profits
will not be paid to the managing general agent until one year after
they are earned for property insurance business and five years after
they are earned on casualty business and not until the profits have
been verified pursuant to the Missouri Managing General Agents Act.
(11) The managing general agent shall not:
(a) bind reinsurance or retrocessions on behalf of the insurer. The
managing general agent (however, [ ] may [X] may not) bind
facultative reinsurance contracts pursuant to obligatory facultative
agreements. If the managing general agent is permitted to bind
facultative reinsurance contracts, this managing general agent's
contract will contain in Article III reinsurance underwriting
guidelines, including, for both reinsurance assumed and ceded, a list
of reinsurers with which such automatic agreements are in effect, the
coverages and amounts or percentages that may be reinsured and
commission schedules;
- --------------------------------------------------------------------------------
MO 375-0038 (8/91)
<PAGE>
- --------------------------------------------------------------------------------
(b) Commit the insurer to participate in insurance or reinsurance
syndicates;
(c) Appoint any producer without assuring that the producer is lawfully
licensed to transact the type of insurance for which he is appointed;
(d) Without prior approval of the insurer, pay or commit the insurer to
pay a claim over a specified amount, net of reinsurance, which shall
not exceed one percent of the insurer's policyholder's surplus as of
December 31 of the immediately preceding calendar year.
(e) Collect any premium from a reinsurer or commit the insurer to any
claim settlement with a reinsurer; without prior approval of the
insurer. If prior approval is given, a report must be promptly
forwarded to the insurer;
(f) Permit its subproducer to serve on its board of directors;
(g) Jointly employ an individual who is employed with the insurer; or
(h) Appoint a subordinate managing general agent.
Article III - Optional Provisions
(1) The following are underwriting guidelines for the managing general agent
(see Article II(6)):
- --------------------------------------------------------------------------------
(A) THE MAXIMUM ANNUAL PREMIUM VOLUME
$200,000,000 of gross written premiums per calendar year.
- --------------------------------------------------------------------------------
(B) THE BASIS OF THE RATES TO BE CHARGED
Rating Guidelines are set forth in the MGA's Rating Manual on file with
the Insurer. The MGA shall promptly advise & provide the Insurer with any
amendment or modification to such Rating Manual.
- --------------------------------------------------------------------------------
(C) THE TYPES OF RISKS WHICH MAY BE WRITTEN
Medical stop-loss business, also known as excess or stop-loss insurance.
- --------------------------------------------------------------------------------
(D) MAXIMUM LIMITS OF LIABILITY
See Attached.
- --------------------------------------------------------------------------------
(E) APPLICABLE EXCLUSIONS
Excluded self-insured health benefit plans: (1) Multiple Employer Welfare
Association (MEWAs); (2) Multiple Employers Trusts (METs); and (3)
Associations
- --------------------------------------------------------------------------------
(F) TERRITORIAL LIMITATIONS
The United States of America, including the District of Columbia, but
excluding U.S. territories and possessions.
- --------------------------------------------------------------------------------
(G) POLICY CANCELLATION PROVISIONS
All policies issued by the MGA on behalf of the Insurer shall adhere to the
cancellation provisions contained in the policies, except for any
amendatory cancellation endorsements which may be required by the insurance
laws of the states where the policies are issued.
- --------------------------------------------------------------------------------
(H) THE MAXIMUM POLICY PERIOD
12-month period.
- --------------------------------------------------------------------------------
(I) OTHER UNDERWRITING GUIDELINES
None.
---------------------------------------------------------------------------
---------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MO 375 0038 (8/91)
<PAGE>
- --------------------------------------------------------------------------------
(2) The following provisions govern the settlement of claims by the managing
general agent on behalf of the insurer (see Article II (8)(c):
All claim files will be the joint property of the Insurer and the MGA.
---------------------------------------------------------------------------
However, upon an order of liquidation of the Insurer such files shall become
the sole property of the Insurer or its estate, but the MGA shall have
reasonable access to and the right to copy the files on a timely basis.
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(3) The following provisions govern the timely transmission of data in
electronic claims files by the managing general agent to the insurer
(see Article II (9)):
Where electronic claims files are in existence, any electronic transmission
---------------------------------------------------------------------------
of claims data shall be submitted by the MGA to the Insurer on a timely basis
no later than fifteen (15) days after the end of each calendar month.
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(4) The following provisions govern the sharing of interim profits by the
managing general agent (see Article II (10)):
If this Agreement is ever amended to provide for a sharing of interim profits
---------------------------------------------------------------------------
by the MGA, and the MGA has the authority to determine the amount of the
interim profits by establishing loss reserves or controlling claim payments,
---------------------------------------------------------------------------
or in any other manner, interim profits will not be paid to the MGA until one
(1) year after they are earned for property insurance business and five (5)
years after they are earned on casualty business, and not until the profits
---------------------------------------------------------------------------
have been verified.
---------------------------------------------------------------------------
---------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MO 375-0038 (8/91)
<PAGE>
(5) The following provisions govern reinsurance underwriting guidelines, for
both reinsurance assumed and ceded, for the binding by the managing
general agent of facultative reinsurance contracts (see Article II
(11)(b)):
The MGA shall not commit the Insurer to participate in insurance or
----------------------------------------------------------------------------
reinsurance syndicates.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) list of reinsurers with which obligatory facultative reinsurance
agreements are in effect:
None.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(b) the coverages and amounts or percentages that may be reinsured:
Not Applicable.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
MO 375-0038 (8/91)
<PAGE>
- --------------------------------------------------------------------------------
(c) commission schedules:
Not Applicable.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(d) other provisions relating to underwriting guidelines for facultative
reinsurance:
Not Applicable.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Article IV - Other Provisions
(1) The provisions of this Article IV are in addition to and not in lieu of the
provisions of Articles I, II, and III. The provisions of Articles I, II and
III shall be construed wherever possible as not in conflict and not in
place of this Article IV, but as minimum requirements in addition to this
Article IV only in the event of irreconcilable conflict, the provisions of
Articles I, II and III will prevail over the provisions of this Article IV.
None.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
SIGNATURE DATE
Glenn A. Mateja June 21, 1995
- --------------------------------------------------------------------------------
NAME TITLE
/s/ Glenn A. Mateja Group Vice President
- --------------------------------------------------------------------------------
INSURER
The Continental Insurance Company ("Insurer")
================================================================================
SIGNATURE DATE
/s/ John T. Grush June 21, 1995
- --------------------------------------------------------------------------------
NAME TITLE
John T. Grush President & Chief Executive Officer
- --------------------------------------------------------------------------------
MANAGING GENERAL AGENT
USBenefits Insurance Services, Inc. ("MGA")
- --------------------------------------------------------------------------------
MO 375-0038 (8/91)
<PAGE>
ATTACHMENT
----------
ITEM (D) - Maximum Limits of Liability
- --------
(1) Specific excess insurance: Reimbursement is limited to 100% of payments
-------------------------
made by the insured in excess of the specific attachment point specified in
the policy, subject to a specific lifetime maximum of $2,000,000; and (2)
Aggregate excess insurance: Reimbursement is limited to 100% of payments
--------------------------
made by the insurer in excess of the annual aggregate attachment point
specified in the policy, subject to a maximum of $2,000,000 per agreement
year.
<PAGE>
ADDENDUM SEVEN
--------------
to
--
MANAGEMENT AGREEMENT NO. 1
between
USBENEFITS INSURANCE SERVICES, INC., a California corporation having its
principal offices at 650 Town Center Drive, suite 1600 Costa Mesa, CA 92626
(herein referred to as the "Underwriting Manager")
and
THE CONTINENTAL INSURANCE COMPANY, (one of the CNA Insurance
Companies) a New Hampshire corporation
having its principal offices at 180 Maiden Lane, New York, New York 10038
(herein referred to as the "Company")
THIS AGREEMENT is hereby amended as set forth below, such amendments to
be effective as of May 10, 1995. The parties hereto ratify and confirm all of
the other provisions of this Agreement executed by the parties effective as of
January 1, 1994.
1. Section 1 amended to read in full as follows:
Section 1 - SCOPE OF AGREEMENT
The Company appoints the Underwriting Manager as the exclusive Underwriting
Manager of the Company with the authority to solicit, receive, negotiate,
underwrite, accept and manage medical stop-loss insurance business (which
business is defined in the Underwriting and Rating Guidelines, Methods and
Procedures ["Underwriting Guidelines"] attached as Addendum One hereto, and is
referred to herein as "Medical Stop-Loss Business"), subject to its compliance
with all of the terms of this Agreement. The Underwriting Manager acknowledges
and agrees that as of the date hereof other members of The CNA Insurance
Companies group are involved in the writing of medical stop-loss business on a
direct basis, and that activities such as those in existence on the date hereof
shall not be deemed to be a violation by the Company of the terms and conditions
of this Agreement.
<PAGE>
This Agreement is composed of Sections 1 through 20 and Addenda One through
Seven. The terms of the Sections and Addenda shall determine the rights and
obligations of the parties.
The Underwriting Manager shall solicit, receive, negotiate, underwrite, accept
and manage Medical Stop-Loss Business, subject to all the terms of this
Agreement. The Underwriting Manager will not act as a producer or provide
marketing or insurance management services for any other insurance company with
respect to Medical Stop-Loss Business, unless it has first obtained the prior
written approval of the Company. The Company agrees not to appoint any other
party to solicit, receive, underwrite, accept or manage Medical Stop-Loss
Business on its behalf without the prior written approval of the Underwriting
Manager. A willful violation of this provision by one party is grounds for
immediate termination of the Agreement by the other party.
2. Section 2 is amended to read in full as follows:
Section - PARTIES TO THE AGREEMENT
This Agreement is solely between the Company and the Underwriting Manager. No
third party shall have any rights or benefits under this Agreement, unless
otherwise provide herein. Except as permitted by this Agreement and with respect
to the activities of the CNA Insurance Companies as noted in Section 1 above,
the Company and the Underwriting Manager agree that neither party shall, without
prior notice to the other party, take any action to assist or facilitate in the
solicitation, negotiation, underwriting, acceptance or management of Medical
Stop-Loss Business during the term hereof by an affiliate, parent or controlling
person (as such terms are defined in the Securities Exchange Act of 1934) of
such party. A willful violation of this provision by one party is grounds for
immediate termination of the Agreement by the other party. The Underwriting
Manager shall not delegate any authority granted by this Agreement to any other
duly licensed party without the prior written approval of the Company subject to
a contract in a form acceptable to the Company. The Underwriting Manager shall
be responsible for all acts or omissions of any delegee and shall remain
responsible for performance of its duties under this Agreement. It shall
supervise all activities performed by any delegee on behalf of the Underwriting
Manager.
3. Section 3.4 is deleted in its entirety.
4. Paragraph (i) of Section 3.9 is amended to read in its entirety as follows:
<PAGE>
i. Insert any advertisements representing the Company in any
publications, or issue any circular or paper referring to the
Company, its logo, or any program written thereunder unless such
advertisement, circular or paper is first reviewed and approved in
writing by the Company. If the Company shall be subject to any loss
or expense arising out of such unauthorized action or statement,
the Underwriting Manager shall indemnify the Company for all costs
and damages arising therefrom.
5. Section 10.7 is amended in its entirety as follows:
10.7
(a) The Company agrees that during the term of this Agreement, and for
a period of time following the termination of this Agreement, it will not,
directly or indirectly, for itself or for others, call upon, solicit, take
away, quote or offer coverage to any customer of the Underwriting Manager.
The period of time during which this paragraph applies shall be:
(i) Termination as of December 31, 1995 - Twenty Four (24) months;
(ii) Termination as of December 31, 1996 - Eighteen (18) months; or
(iii) Termination as of December 31, 1997, or later - Twelve (12) months.
(b) Furthermore, the Company agrees that, during the term of this
Agreement and for the period of time specified in paragraph 10.7 (a)
above, it will not use any confidential information, trade secrets, or
property of the Underwriting Manager acquired by the Company through its
relationship with the Underwriting Manager to compete with the
Underwriting Manager. If following termination of this Agreement the
Underwriting Manager determines to discontinue its operations in the
Medical Stop-Loss Business, it will promptly notify the Company of such
decision and thereafter, the provisions of this Section 10.7 and of
Section 10.4 hereof shall be null and void and of no further effect.
<PAGE>
IN WITNESS WHEREOF, the parties hereto by their repective duly
authorized officers have caused this Addendum Seven to be executed in duplicate
this 9th day of August, 1995.
The Continental Insurance Company
By: /s/ Glenn A. Mateja
--------------------------
Glenn A. Mateja, Group Vice
President
Witnessed:
/s/ Michael A. McCarney
-------------------------------
Michael A. McCarney,
Assistant Secretary
USBenefits Insurance Services, Inc.
By: /s/ John T. Grush
--------------------------
John T. Grush, President and
Chief Executive Officer
Witnessed:
/s/ Jose A. Velasco
-------------------------------
Jose A. Velasco, Senior Vice
President, Secretary and General
Counsel
<PAGE>
EXHIBIT 10.26
[LOGO APPEARS HERE]
US FACILITIES CORPORATION
INCENTIVE COMPENSATION PROGRAM
US FACILITIES CORPORATION ("the Company") has established an Incentive
Compensation Program ("Program") for its employees. Only cash bonuses will be
paid under the program, and only with respect to calendar year periods, each
calendar year to be known herein as an "Incentive Period". This Program is
completely discretionary, no bonus is vested or earned. Set forth below are the
terms and conditions which it is anticipated will apply if the Company decides
to pay a bonus while this Program is in effect.
1. EARNINGS TARGET. The payment of bonuses under this Program is predicated on
the Company meeting a net earnings target for the Incentive Period. The net
earnings target shall be adopted by the Compensation Committee of the
Company's Board of Directors ("Compensation Committee"). If the net earnings
target is not achieved the Compensation Committee, in its sole discretion,
may nevertheless declare a bonus payable under this Program, and shall
identify the persons who should receive such bonus and the amount of bonus to
be paid to such persons. "Net earnings" means net earnings before
extraordinary items and bonuses, as reported in the Company's audited year-
end consolidated financial statements.
2. PARTICIPATION. Participation in this Program is open to certain employees of
the Company. The Program consists of separate components ("Components")
identified in Exhibit "A" attached hereto and incorporated herein. Employees
are eligible to participate in the Component which describes their position
with the Company, provided they meet all eligibility criteria of the Program
and the Component applicable to them. A bonus will be paid to eligible
participants for an Incentive Period on or before March 15 of the subsequent
year. Eligible participants must be regular employees of the Company on the
date the bonus is paid, not under written disciplinary action, and must have
been employed in a designated eligible position with at least six months of
continuous service during the Incentive Period.
3. EFFECTIVE DATE. This Program supersedes any and all previous incentive or
bonus programs. It is effective January 1, 1995 and, subject to the
Company's rights as described below to amend or modify it, it is anticipated
that the Program will remain in effect until the Company decides to
discontinue the Program.
<PAGE>
4. ADMINISTRATION. This Program is administered by the Compensation Committee
which has the sole authority and discretion to interpret the Program and to
make or nullify any rules and procedures necessary for the Program's
administration. Any determination of the Compensation Committee concerning
the Program will be final and binding on all participants. The Compensation
Committee may delegate certain of its administrative functions to the
Company's Chief Executive Officer ("CEO").
5. CHANGES OR DISCONTINUANCE. The Company reserves the right, in its sole
discretion and without advance notice, to add, amend, modify or discontinue
any of the terms or conditions of the Program at any time, or to terminate
the Program in its entirety.
6. PAYROLL TAXES. Program bonus payments will be reported as compensation in
the year paid and will be subject to withholding for required income and
other applicable taxes. The actual tax liability or any such payments
received will be the sole responsibility of the participants.
7. NEW HIRES, PROMOTIONS AND TRANSFERS. Participants who are not employed by
the Company at the beginning of an Incentive Period will receive a pro-rated
award based on length of employment, except that any person employed by the
Company after July 1 will not be eligible for an incentive bonus for that
Incentive Period.
An eligible participant who is promoted or transferred during an Incentive
Period from a position covered by one Component to a position covered by
another Component will participate in each Component on a pro-rata basis.
8. LEAVE OF ABSENCE. If an eligible participant is on leave of absence for a
period of ninety (90) days or more during an Incentive Period, his or her
bonus for the Incentive Period will be pro-rated so that no bonus shall be
awarded for the time the participant is on leave.
9. NO AGREEMENT OF EMPLOYMENT. This Program does not, and shall not be
construed to give any participant the right to be retained in the employ of
the Company, nor does this Program interfere with, nor shall it be construed
to interfere with, the Company's right to discharge any employee at any time,
with or without advance notice or cause. This Program does not alter, and
shall not be construed to alter, the participant's at-will employment
relationship with the Company.
2
<PAGE>
Exhibit A-1
HOLDING COMPANY EXECUTIVE INCENTIVE COMPENSATION
COMPONENT
Participation in this Component is limited to persons who hold any of the
following positions in US Facilities Corporation:
President and Chief Executive Officer
Executive Vice President
Senior Vice President
Vice President
Assistant Vice President
Controller
The amount of bonus payable to a participant will depend on the extent to
which the Company meets its net earnings target. If the net earnings target is
met the participant's bonus would be calculated at the target level for the
participant as indicated on Exhibit A-1.1 hereto, but the award can be adjusted
upward or downward to reflect personal performance, achievement of individual
job-related objectives and/or qualitative contributions to the Company. The
Company's CEO shall evaluate each participant's achievement of such job-related
objectives and/or qualitative contributions.
3
<PAGE>
Exhibit A-1.1
AWARD STRUCTURE
<TABLE>
<CAPTION>
POSITION ANNUAL TARGET
- -------------------------------------------------------------------
<S> <C>
Chair, President & CEO 40%
- -------------------------------------------------------------------
SVP (USRE) 35%
- -------------------------------------------------------------------
SVP (USBenefits) 35%
- -------------------------------------------------------------------
EVP, Corp. Finance 35%
- -------------------------------------------------------------------
SVP, Treasurer & CFO 30%
- -------------------------------------------------------------------
SVP, Secretary & General Counsel 30%
- -------------------------------------------------------------------
VP, Human Resources 25%
- -------------------------------------------------------------------
VP, IS 25%
- -------------------------------------------------------------------
VP, Government Affairs 25%
- -------------------------------------------------------------------
AVP, Controller 20%
- -------------------------------------------------------------------
Controller 20%
- -------------------------------------------------------------------
AVP, Associate General Counsel 20%
- -------------------------------------------------------------------
</TABLE>
Incentive awards may be below or above the target depending on management and
the Board Compensation Committee's evaluations of Company and individual
performance against pre-established criteria.
4
<PAGE>
Exhibit A-2
OFFICER/MANAGER/PROFESSIONAL INCENTIVE
COMPENSATION COMPONENT
The CEO, with input from the participant's supervisor will determine the
amount of bonus payable to each eligible participant. The CEO may award to each
participant a bonus of up to 20% of such participant's base earnings for the
Incentive Period. In awarding the bonus the CEO will take into account each
participant's performance. Performance will be tied to achievement of specific
job-related objectives as evaluated by the participant's supervisor who will
report his or her findings to the CEO.
5
<PAGE>
Exhibit A-3
TECHNICAL/CLERICAL INCENTIVE COMPENSATION COMPONENT
The Technical/Clerical Incentive Compensation Component is purely
discretionary on the part of the CEO. In the event a bonus is declared,
participants will be eligible to receive a bonus equal to 4% of their base
earnings for the Incentive Period.
6
<PAGE>
Exhibit A-4
US BENEFITS UNDERWRITING DEPARTMENT INCENTIVE
COMPENSATION COMPONENT
Bonus awards under the US Benefits Underwriting Department Incentive
Compensation Component are tied to underwriting results for the medical stop-
loss business measured by attainment of incurred risk loss ratio ("Loss Ratio")
and premium growth goals by each of the US Benefits Underwriting Department's
underwriting regions ("Region"). The Loss Ratio will be measured on an
"accident year" basis and determination of bonus payments will not be made until
two years after the close of each accident year. Thus, for example,
calculations for bonuses payable in 1994 will be based on the Loss Ratio for the
1992 accident year.
Participation in this Component is limited to the following positions in
the US Benefits Underwriting Department:
Senior Vice President
Assistant Vice President
Senior Underwriter
Underwriter
Incentive awards under this Component will be calculated with respect to
each Region, and the maximum amount which participants in any Region can receive
will be based on the Loss Ratio for the Region in accordance with the following
schedule:
<TABLE>
<CAPTION>
Accident Year Loss Ratio Maximum Incentive Amount
------------------------ ------------------------
<S> <C>
98% but less than 100% $10,000
96% but less than 98% $15,000
94% but less than 96% $20,000
92% but less than 94% $30,000
Less than 92% $40,000
</TABLE>
The Maximum Incentive Amount available for distribution to participants of
a Region that reduces its Loss Ratio by ten (10) percentage points or more from
the previous accident year will be increased by an additional $10,000, provided
that the Loss Ratio for the Region is below 100%. However, if the Region fails
to increase its production of stop-loss premium by at least 1.2 times the
preceding calendar year's total premium production, the Region's Maximum
Incentive Amount will be reduced by .5% for each $100,000 in premium by which
the Region fails to achieve such premium growth goal.
7
<PAGE>
Participants will be eligible for a bonus as follows:
Position Bonus
-------- -----
Vice President 50% of the Incentive Amount earned
by each Region, up to a maximum of
$100,000.
Assistant Vice President The Incentive Amount earned by the
Region in which he or she works.
Senior Underwriter and Underwriter Up to 20% of the Incentive Amount
earned by the Region in which he or she
works.
Examples of award calculations are set forth on Exhibit A-4.1 hereto.
8
<PAGE>
Exhibit A-4.1
US BENEFITS UNDERWRITING DEPARTMENT INCENTIVE
COMPENSATION COMPONENT
Example of Award Calculations
INDIVIDUAL REGIONS
<TABLE>
<CAPTION>
Loss Ratio* Maximum Incentive Amount
----------- -----------------------
<S> <C>
98% but less than 100% $10,000
96% but less than 98% $15,000
94% but less than 96% $20,000
92% but less than 94% $30,000
Less than 92% $40,000
</TABLE>
*Covers all reported claims, reserve changes, claim completion factor including
IBNR.
Position Incentive Award
-------- ---------------
Vice President 50% of Incentive Amount earned by
each region
Assistant Vice President According to payout scale for respective
region
Senior Underwriter Up to 20% of Incentive Amount earned
in respective region
Underwriter Up to 20% of Incentive Amount earned
in respective region
Growth Incentive
Performance in Region Adjustment Award
--------------------- ----------------
99% Loss Ratio $10,000
10% reduction from previous accident year +$10,000
-------
$20,000
Total Premium Growth less
than 120% of previous calendar year $20,000 x .05 - 1,000
TOTAL INCENTIVE EARNED IN REGION $19,000
9
<PAGE>
Exhibit A-5
USBENEFITS CLAIMS DEPARTMENT INCENTIVE
COMPENSATION COMPONENT
The USBenefits Claims Department Incentive Compensation Component is based
on the performance of the USBenefits Claims Department Auditors. Individual
performance is measured on achievement of specific job-related objectives.
Bonus payment is purely discretionary on the part of the CEO with input from the
supervisor.
Participation in this Component is limited to the following positions in
the USBenefits Claims Department:
Vice President
Assistant Manager
Supervisors
Claims Auditors
Additional Eligibility Requirements for Claims Auditors
- -------------------------------------------------------
In order to become eligible to participate in the USBenefits Claims
Department Incentive Compensation Component, a Claims Auditor must meet the
following minimum criteria during an entire calendar quarter:
. A quarterly average accuracy ratio of 98% on audited files.
. A quarterly average of 25 claims each week.
. No unpaid absences.
Incentive points will be calculated quarterly and averaged for each
calendar year.
10
<PAGE>
Participants will be eligible for a bonus as follows:
Position Bonus
-------- -----
Vice President Up to 180% of the average incentive
award earned by all Claims Auditors.
Assistant Manager Up to 120% of the average incentive
award earned by all Claims Auditors
Supervisors Up to 110% of the average incentive
award earned by their respective
Claims Auditors
Claims Auditors Up to 15% of year-end base earnings
for the Incentive Period
Examples of points, earnings schedules and award calculations are set forth on
Exhibit A-5.1 hereto.
11
<PAGE>
Exhibit A-5.1
USBENEFITS CLAIMS DEPARTMENT INCENTIVE
COMPENSATION COMPONENT
Example of Award Calculations
EARNINGS SCHEDULE
INCENTIVE AREAS
Quality = 7.5 Points (50%)
Quantity = 3.75 Points (25%)
Dependability = 3.75 Points (25%)
Maximum Available Incentive - 15 Points
*Each point is equal to 1% of year-end base earnings for the Incentive Period.
QUANTITY
<TABLE>
<CAPTION>
Performance Groups* Points Earned
<S> <C>
Top 20% 3.75
Second 20% 3.00
Third 20% 2.25
Fourth 20% 1.50
Bottom 20% .75
</TABLE>
QUALITY
Claims Auditors can earn 3.75 points for every 1% above the minimum
98% quality rating.
A penalty of .5 points will be subtracted for each full increment of
$1,000 in check errors. More than three check errors will disqualify all
quality points for that quarter.
DEPENDABILITY
A Claims Auditor who has no unpaid absences during the year
will be awarded 3.75 points.
12
<PAGE>
EXAMPLE OF AWARD CALCULATION
CLAIMS AUDITOR
<TABLE>
<CAPTION>
Performance
Factor Actual Results Points Earned
- ------ -------------- -------------
<S> <C> <C>
Quality: Quality Rating 99.4%
7.5 Points Less Minimum Percent 98.0%
-----
1.4%
Claim Payment Penalty 0
(i.e., no check errors)
Quality Points Earned: 1.4 x 3.75 = 5.25
Quantity:
3.75 Points Performance During Quarter: Second 20% = 3.00
Dependability:
3.75 Points No Unpaid Absences 3.75
Total Earned 12.00
</TABLE>
Assume: Claims Auditor averages 12.00 points each quarter during calendar year.
Annual incentive award of $3,600 (12% x $30,000)
13
<PAGE>
Exhibit A-6
USF RE INSURANCE COMPANY UNDERWRITING DEPARTMENT
INCENTIVE COMPENSATION COMPONENT
The USF RE INSURANCE COMPANY Underwriting Department Incentive
Compensation Component is based on individual performance of participants.
Individual performance is measured by achievement of specific job-related
objectives based on an evaluation by the participant's supervisor who will make
the appropriate recommendation to the Company's CEO for bonus consideration.
Four specific areas will be considered in evaluating each person's performance:
1. Individual Performance Goals: Underwriting, production, administration and
professional development goals.
2. USF RE Audit Results: Both internal annual underwriting audits and audits
performed by USF RE's property and casualty retrocessionaires. Audits focus
on adherence to USF RE underwriting guidelines, quality of risk selection,
and terms and conditions quoted. Internal audits are completed annually and
are approved by: Property-Senior Vice President, Executive Vice President
and President and Company CEO.
3. USF RE Growth: Property and Casualty performance to plan, adjusted for
market environment, as assessed by USF RE's President and Executive Vice
President.
4. USF RE Underwriting Profits: Defined as Property and Casualty combined
ratio, excluding medical stop loss results.
The CEO will determine the amount of bonus payable to each eligible participant.
The CEO may award to each participant a bonus of up to 40% of each participant's
base earnings for the subject fiscal year.
Participation in this Component is limited to the following positions:
Executive Vice President
Senior Vice President
Vice President, Underwriting
Assistant Vice President, Underwriting
Senior Underwriter
Underwriter
The Payment Schedule and an example of an award calculation are set forth in
Exhibit A-6.1 hereto.
14
<PAGE>
Exhibit A-6.1
USF RE INSURANCE COMPANY UNDERWRITING DEPARTMENT
INCENTIVE COMPENSATION COMPONENT
Example of Award Calculations
Combined Ratio* Percentage of Incentives
95% or lower 120%
97.5% or lower 110%
100% or lower 100%
102.5% or lower 90%
105% or lower 80%
107.5% or lower 70%
107.6% or lower At Corporate CEO's discretion
*Combined ratio is defined as the incurred loss ratio for all lines written
except medical stop-loss, plus the expense and commission ratios for those
lines.
ASSUMPTIONS
Current Annual Base Salary: $100,000
Target Incentive: 30% of base Salary
<TABLE>
<CAPTION>
Actual Performance:
<S> <C>
Individual Performance Goals: Achieved -- 80%
USF RE Audit Results: Compliance at -- 90%
USF RE Growth: Achieved -- 70%
USF RE UW Profit: 1992 Combined Ratio of 104% -- 80%
--
Average 1992 Performance 80%
USF RE UW Profit: 1996 Combined Ratio of 107% 70%
</TABLE>
AWARD CALCULATION
<TABLE>
<CAPTION>
<S> <C> <C> <C>
80% x 30% = 24% of Annual Base Salary or $24,000
</TABLE>
15
<PAGE>
Exhibit A-7
USBENEFITS MARKETING DEPARTMENT
INCENTIVE COMPENSATION COMPONENT
Bonus awards under the USBenefits Marketing Department Incentive
Compensation Component are tied to new business production from all sources
modified by retention and loss ratio rates for the Incentive Period.
Participation in this Component is limited to the following positions in
the USBenefits Marketing Department:
Senior Vice President
Vice President
Assistant Vice President
Incentive awards under this Component will be calculated with respect to
each region, based upon goals set for each region for each Incentive Period.
The goals set for the 1995 Incentive Period are as follows:
<TABLE>
<CAPTION>
REGION REGIONAL NEW BUSINESS
- ------ ---------------------
ANNUALIZED PREMIUM GOALS
------------------------
Products: Medical Stop-Loss,
Life Product Administered by
USBenefits, and Provider
Excess
<S> <C>
A $10,000,000
B $10,000,000
D $10,000,000
</TABLE>
The Incentive award payable is based upon the new business production from
all sources modified by the retention and loss ratio rates as follows:
NEW BUSINESS PRODUCTION ALL SOURCES
- -----------------------------------
Percent of Goal Percent of 1995 Paid Base Salary
- --------------- --------------------------------
90% - 94.9% 5%
95% - 99.9% 10%
100% - 104.9% 15%
105% - 109.9% 20%
110% - 119.9% 25%
16
<PAGE>
Above 120% - 1% of salary per each, full 1% of additional production. Overall
maximum Bonus with modifiers is 30% of salary.
MODIFIERS OF BONUS EARNED
- -------------------------
1) Retention of Policyholders Modifier to Bonus
-------------------------- -----------------
less than 75% 90%
75 - 79.9% 100%
80 - 81.9% 110%
82% - up 115%
2) Loss Ratio Modifier to Bonus
---------- -----------------
Greater than 72% 90%
71.9 - 70% 95%
69.9 - 68% 100%
less than 68% 110%
The bonus award for the Senior Vice President of Marketing will be determined by
the same method described above, based on a combination of results for all
Regions.
17
<PAGE>
Exhibit A-8
INCENTIVE COMPENSATION PLAN
---------------------------
USF INSURANCE COMPANY
The USF Insurance Company Incentive Compensation Component is based on
individual performance of participants and the attainment of Company and
Corporate goals. Individual performance is measured by achievement of specific
job related objectives based on an evaluation by the participant's supervisor
who will make the appropriate recommendation to the Company's CEO for
consideration.
The four areas to be considered and the relative weight placed on each in
evaluating each person's performance are:
Weight
1. Combined Ratio to Plan. 30%
2. Gross Written Premium Growth to Plan. 30%
3. Individual Performance Goals to Plan. 20%
4. Producer Expansion to Plan. 20%
The CEO will determine the amount of bonus payable to each eligible participant.
The CEO may award to each participant a bonus up to 40% of each participant's
base salary at the time of the award.
Participation in this Component is limited to the following positions:
Position Target Bonus Percent
President 35%
Vice President, Assistant Vice President 30%
Underwriter 25%
Controller 20%
18
<PAGE>
Exhibit A-8.1
EXAMPLE
USFIC achieves Plan Combined Ratio. 100% X 30% weight = 30%
Written premium growth was 80% of Plan. 80% X 30% weight = 24%
Underwriter achieved 90% of individual
performance goals. 90% X 20% weight = 18%
Producer expansion
equals 70% of Plan. 70% X 20% weight = 14%
-------------
86%
Underwriter Target Bonus Percent of 25% multiplied by 86% equals the
Underwriter's bonus payout of 21.5% of base salary.
19
<PAGE>
EXHIBIT 11
US FACILITIES CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
The computation of per share income is based upon the weighted average
number of common and common equivalent shares outstanding during each year
ended December 31, as follows:
<TABLE>
<CAPTION>
(000 OMITTED,
EXCEPT FOR PER SHARE
DATA)
---------------------
1995 1994 1993
------- ------ ------
<S> <C> <C> <C>
Net income.............................................. $13,854 $6,238 $6,767
======= ====== ======
Weighted average shares outstanding during the period... 5,602 5,810 5,712
Common stock equivalent shares.......................... 126 196 228
------- ------ ------
Common and common stock equivalent shares outstanding
for purposes of calculating income per share........... 5,728 6,006 5,940
Incremental shares to reflect full dilution............. 87 -- 38
------- ------ ------
Total shares for purpose of calculating fully diluted
income per share....................................... 5,815 6,006 5,978
======= ====== ======
Primary net income per share............................ $ 2.42 $ 1.04 $ 1.14
======= ====== ======
Fully diluted net income per share...................... $ 2.38 $ 1.04 $ 1.13
======= ====== ======
</TABLE>
<PAGE>
EXHIBIT 13
SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------------------------------------
(dollars in thousands, except per share data) 1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income Statement Data:
Revenues:
Premiums earned $114,971 $ 93,269 $ 83,206 $ 59,732 $ 42,588
Commissions and fees 25,994 23,583 21,736 18,403 15,492
Investment income 10,212 5,959 7,037 6,187 5,729
--------------------------------------------------------
Total revenues $151,177 $122,811 $111,979 $ 84,322 $ 63,809
========================================================
Income before income taxes $ 18,159 $ 7,382 $ 8,407 $ 6,222 $ 8,942
========================================================
Net income $ 13,854 $ 6,238 $ 6,767 $ 4,641 $ 7,020
========================================================
Per Share:
Net income $ 2.42 $ 1.04 $ 1.14 $ .78 $ 1.64
========================================================
Cash dividends $ .20 -- -- -- --
========================================================
Balance Sheet Data:
Total assets $249,872 $199,737 $154,723 $133,567 $121,114
--------------------------------------------------------
Notes payable $ 35,000 $ 25,000 -- $ 1,600 $ 5,000
--------------------------------------------------------
Stockholders' equity $ 88,061 $ 63,079 $ 63,333 $ 55,915 $ 50,619
--------------------------------------------------------
</TABLE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
BUSINESS OPERATIONS
US Facilities Corporation's (the "Company") operations are classified into two
business segments: (1) medical stop-loss and employee benefit products (which
includes the commissions and fees revenues of the Company, as well as
reinsurance of 50% of its medical stop-loss business); and (2) property/casualty
reinsurance and insurance underwriting.
Commissions and fees revenues are produced by the Company's wholly-owned
subsidiary, USBenefits Insurance Services, Inc. ("USBenefits"), which acts
primarily as the managing general underwriter and marketing organization for
medical stop-loss coverages issued by The Continental Insurance Company
("Continental"), an unaffiliated party. In May 1995 Continental became one
of the CNA Insurance Companies. The Company's wholly-owned subsidiary, USF RE
Insurance Company ("USF RE"), reinsures 50% of the medical stop-loss business
produced by USBenefits for Continental. USBenefits also markets other employee
benefit related products on behalf of several national life insurance companies.
Substantially all commissions and fees and approximately 71%, 79% and 81% of
premiums earned for 1995, 1994 and 1993, respectively, resulted from the
management agreement between USBenefits and Continental and the reinsurance
agreement between USF RE and Continental related to the medical stop-loss
business.
Medical stop-loss and employee benefit products are marketed through a
network of unaffiliated third party administrators, and insurance agents,
brokers and consultants ("Producers"). Producers have non-exclusive arrangements
with USBenefits that enable them to submit requests for stop-loss coverage
quotations on behalf of their self-insured clients.
Property/casualty insurance and reinsurance underwriting is conducted by
USF RE and its subsidiary USF Insurance Company ("USFIC"). Business lines
included in this segment are property/casualty reinsurance
12
--
<PAGE>
assumed by USF RE from unaffiliated insurance companies, primarily through
reinsurance intermediaries, and surplus lines insurance written by USFIC through
excess and surplus lines brokers. These subsidiaries share a pooled A-
(Excellent) rating from A.M. Best Company, which reflects A.M. Best Company's
evaluation that the companies have exhibited "excellent overall performance" and
"have a strong ability to meet their obligations to policyholders over a long
period of time." During the second quarter of 1995, USF RE ceased writing plate
glass insurance, which accounted for 3%, 5% and 5% of premiums earned in 1995,
1994 and 1993, respectively. The ceding companies of one client organization
accounted for a total of 27%, 17% and 13% of gross premiums written in the
property/casualty segment in 1995, 1994 and 1993, respectively.
RESULTS OF OPERATIONS
Consolidated Results
The table below presents certain consolidated financial information regarding
the Company's operations.
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------
(dollars in thousands) 1995 Change 1994 Change 1993
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues:
Operating revenues $140,965 21% $116,852 11% $104,942
Net Investment income 9,190 54% 5,950 2% 5,857
Realized investment gain 1,022 -- 9 -- 1,180
----------------------------------------------------------
Total revenues 151,177 23% 122,811 10% 111,979
----------------------------------------------------------
Expenses:
Other expenses 116,661 22% 95,765 10% 86,648
General and administrative 16,357 (4%) 16,981 -- 16,924
Unusual charges -- -- 2,683 -- --
----------------------------------------------------------
Total operating expenses 133,018 15% 115,249 11% 103,572
----------------------------------------------------------
Income before income taxes 18,159 146% 7,382 (12%) 8,407
Income tax expense 4,305 276% 1,144 (30%) 1,640
----------------------------------------------------------
Net income $ 13,854 122% $ 6,238 (8%) $ 6,767
==========================================================
</TABLE>
Increases in revenues for all periods presented are a result of expansion
in each business segment, reflecting continuing growth of medical stop-loss
premiums and the Company's success in increasing its property/casualty business.
The increase in 1995 net income as compared to 1994 reflects improvements
in profitability in each of the Company's business segments. The improvements
result from increased marketing efforts and the effect of the Company's cost
control programs which began during 1994. However, after tax net income was
reduced by $457,000 in connection with the March 1995 resignation of the
Company's former Chief Executive Officer.
Net income for 1994, as compared to 1993, declined due to several unusual
events. In April 1994, the Company became the target of an unsolicited takeover
proposal and was involved in a proxy contest. The expenses of responding to the
issues raised by these events reduced the Company's 1994 net income by
$1,217,000. The Company also posted a restructuring charge during the second
quarter of 1994 arising from the closings of branch marketing offices and
reductions in personnel, which decreased net income for the year by $392,000. No
similar events transpired during 1995 or 1993. Net income for 1994 was also
reduced by $1,400,000 due to claims incurred as a result of the Northridge,
California earthquake in January 1994. Although the Company incurred losses
related to catastrophic events during the regular course of business in 1995 and
1993, it did not incur a single loss of comparable magnitude in such periods.
13
--
<PAGE>
Consolidated net investment income in 1995 increased as compared to 1994,
reflecting continuing growth in USF RE's asset base and generally higher rates
of income earned on securities acquired between September 1994 and June 1995.
Additionally, during 1995 the Company invested new funds in taxable bonds rather
than tax-exempt bonds, which increased pre-tax investment income. Tax-exempt
bonds, however, continue to account for the major portion of the Company's
investment portfolio.
Consolidated general and administrative expenses decreased in 1995 as
compared to 1994 and were only nominally higher in 1994 as compared to 1993, as
a result of the Company's restructuring and cost control programs implemented in
1994. General and administrative expenses decreased to 10.8% of revenues in
1995, compared to 13.8% of revenues in 1994 and 15.1% of revenues in 1993.
Management continues to focus on cost control efforts as an element of its
strategy to maintain profitability.
Income taxes as a percentage of pre-tax income fluctuate depending on the
proportion of tax exempt investment income to total pre-tax income and the
proportion of total income subject to state income taxes.
BUSINESS SEGMENTS
The following tables present pre-tax operating information by business segment
and holding company operations (including realized gains) for the years ended
December 31, 1995, 1994 and 1993.
MEDICAL STOP-LOSS AND EMPLOYEE BENEFIT PRODUCTS
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------
(dollars in thousands) 1995 Change 1994 Change 1993
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Gross premiums written $ 81,546 12% $72,517 8% $66,931
Net premiums written 81,546 12% 72,517 8% 66,931
----------------------------------------------------------
Revenues:
Premiums earned 81,546 12% 72,517 8% 66,931
Commissions and fees 25,994 10% 23,583 8% 21,736
Net investment income 3,269 44% 2,273 2% 2,225
----------------------------------------------------------
Total revenues 110,809 13% 98,373 8% 90,892
----------------------------------------------------------
Expenses:
Losses and loss adjustment 54,563 13% 48,356 1% 47,667
Policy acquisition 27,069 14% 23,647 6% 22,265
General and administrative 12,025 (13%) 13,772 1% 13,695
----------------------------------------------------------
Total expenses 93,657 9% 85,775 3% 83,627
----------------------------------------------------------
Income before income taxes $ 17,152 38% $12,598 73% $ 7,265
==========================================================
</TABLE>
The medical stop-loss and employee benefit products segment continued to be
the primary source of the Company's revenues and profits during 1995. Medical
stop-loss production increased by 12% in 1995 over 1994 and by 8% in 1994 over
1993, which generated the increases in premiums earned and substantially all of
the commissions and fees revenues. The growth in medical stop-loss production
during such periods was primarily due to a substantial increase in new business
in 1995, strong retention of in-force accounts and modest rate increases during
the periods presented.
Increases in profitability in this segment in 1995 as compared to 1994 are
due to increased commissions and fees resulting from the additional production,
increased investment income and a reduction in general and administrative
expenses. Increases in profitability in this segment in 1994 as compared to 1993
are primarily due to improved underwriting and lower medical stop-loss claim
costs, resulting principally from
14
--
<PAGE>
widespread implementation of various cost control measures by self-insured
employers and the medical provider community. Increases in policy acquisition
expenses are primarily related to the additional revenues in the periods
presented.
The segment information presented in the table above includes losses before
income tax of $1,156,000, $1,137,000 and $1,492,000 for the years ended December
31, 1995, 1994 and 1993, respectively, from the Company's medical bill review
operations that were closed effective May 31, 1995.
PROPERTY/CASUALTY UNDERWRITING
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------
(dollars in thousands) 1995 Change 1994 Change 1993
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Gross premiums written $50,915 42% $35,760 38% $25,932
Net premiums written 35,350 48% 23,865 28% 18,644
----------------------------------------------------
Revenues
Premiums earned 33,425 61% 20,752 28% 16,275
Net investment income 5,872 60% 3,677 1% 3,632
----------------------------------------------------
Total revenues 39,297 61% 24,429 23% 19,907
----------------------------------------------------
Expenses
Losses and loss adjustment 23,180 45% 16,010 59% 10,050
Policy acquisition 8,895 15% 7,694 16% 6,611
General and administrative 3,304 32% 2,499 37% 2,485
----------------------------------------------------
Total expenses 35,379 35% 26,203 37% 19,146
----------------------------------------------------
Income (loss) before income taxes $ 3,918 321% $(1,774) -- $ 761
====================================================
</TABLE>
The increases each year in premiums earned primarily result from USF RE
expanding its customer base and through additional marketing efforts. These
efforts were supported by surplus contributions by the Company in 1995 and 1994
totaling $30,500,000 which, in combination with internally generated earnings,
brought USF RE's policyholders' surplus to over $100,000,000 by December 31,
1995. Management believes that opportunities in certain segments of the
reinsurance market have improved due to the increase in USF RE's policyholders'
surplus.
Changes in the relationship between gross and net premiums written were due
to changes in the Company's ceded reinsurance programs, as well as in the costs
of such retrocessional coverages. Retrocession (reinsurance) agreements mitigate
an insurance company's exposure to losses and, therefore, allow increases in the
limits which can be offered on each property/casualty account. Other
retrocession agreements protect against catastrophic losses. Under current
catastrophe retrocession arrangements, approximately 95% of $24,500,000 of
catastrophic protection in excess of a retention of $3,500,000 covering property
facultative and surplus lines losses is maintained. Within this cover, the
Company has $6,500,000 of catastrophic protection in excess of the same
retention of $3,500,000 covering property treaty losses. Management believes
this coverage is adequate to protect the Company from excessive catastrophic
losses.
The Company evaluates the financial condition of potential
retrocessionaires to determine whether to cede retrocessional coverage to such
companies. Retrocession agreements are placed with unaffiliated companies which
management believes to be financially secure and experienced in this type of
business. Reinsurance recoverables are monitored continually, and any
retrocessionaire not qualified in USF RE's state of domicile, Massachusetts, is
requested to post security in the amount of its estimated liability.
15
--
<PAGE>
Increases in losses and loss adjustment expenses and policy acquisition
expenses result primarily from increases in premiums earned and changes in the
mix of business. Trends in such expense categories are reflective of the
Company's 1995 withdrawal from the plate glass business which had high
acquisition costs and low losses during the periods presented, offset by strong
growth in casualty lines which are generally reserved at a higher loss ratio and
carry lower acquisition costs. Also, this segment incurred higher losses in 1994
principally due to catastrophe claims.
HOLDING COMPANY
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------
(dollars in thousands) 1995 Change 1994 Change 1993
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues:
Investment income $ 49 -- $ -- -- $ --
Realized gains 1,022 112% 9 (99%) 1,180
------------------------------------------------------
Total revenues 1,071 118% 9 (99%) 1,180
------------------------------------------------------
Expenses:
General and administrative 1,028 45% 710 (5%) 744
Expenses related to unsolicited
takeover proposal -- -- 2,029 -- --
Restructuring -- -- 654 -- --
Other 695 -- -- -- --
Interest 2,259 -- 58 5% 55
------------------------------------------------------
Total expenses 3,982 15% 3,451 -- 799
------------------------------------------------------
Income (loss) before
income taxes $(2,911) (16%) $(3,442) -- $ 381
======================================================
</TABLE>
Realized gains increased in 1995 as compared to 1994 and 1993 as the
Company repositioned its portfolio to enhance yields consistent with the
Company's investment guidelines. The 1995 expenses included $695,000, pre-tax,
pertaining to the resignation of the Company's former Chief Executive Officer in
March 1995. Interest expenses increased in 1995 as a result of a $25,000,000
bank loan funded in December 1994. As noted earlier, total expenses for 1994
increased significantly from 1993 primarily due to the costs of responding to an
unsolicited takeover proposal and subsequent proxy contest. In 1994 the Company
also posted a restructuring charge related to closings of branch marketing
offices and reductions in personnel.
ACCOUNTING POLICIES
See Footnote 1 to the Company's Consolidated Financial Statements appearing
elsewhere in this Annual Report for information regarding significant accounting
policies.
INFLATION
The healthcare marketplace has long been subject to the effects of increasing
costs for provider services. Such inflation in the costs of healthcare tends to
generate higher claims payments, resulting in increases in premiums for medical
stop-loss coverage, and in greater revenues. Management believes various cost
control initiatives and the trend to self-insured plans have stabilized the
price spiral and have caused a decline in the rate of increase in the cost of
healthcare.
Inflation can negatively impact insurance and reinsurance operations by
causing higher claims settlements than may have originally been estimated, while
not necessarily allowing an immediate increase in premiums to a level necessary
to maintain profit margins. Historically, the Company has made no explicit
provisions for
16
--
<PAGE>
inflation, but trends are considered when setting underwriting terms and claim
reserves. Such reserves are subjected to a continuing internal and external
review process to assess their adequacy and are adjusted as deemed appropriate.
Overall economic trends also affect interest rates, which in turn affect
investment income and the market value of the Company's investment portfolio.
LIQUIDITY AND CAPITAL RESOURCES
The Company utilizes cash from operations and maturing investments to meet its
insurance obligations to policyholders and claimants, as well as to meet
operating costs. Primary sources of cash from operations include premium
collections, investment income and commissions and fees. The principal uses of
cash from operations are for premium payments to insurance companies, payments
of claims under USF RE's and USFIC's reinsurance and insurance contracts, and
operating expenses such as salaries, commissions, taxes and general overhead.
The Company obtained a $25,000,000 bank loan in December 1994 which was
increased to $35,000,000 in November 1995. The Company has contributed
$30,500,000 to the surplus of its insurance group to support additional growth
in the medical stop-loss and property/casualty business lines. The Credit
Agreement with the Company's lender contains certain covenants, restrictions and
dividend payment limitations with which the Company was in compliance at
December 31, 1995. See Footnote 5 to the Company's Consolidated Financial
Statements appearing elsewhere in this Annual Report.
The Company anticipates that it will continue to generate sufficient cash
flow from operations to cover its short-term (1-18 months) and long-term (18
months to 3 years) liquidity needs. While the Company currently has no immediate
plans for significant capital outlays, from time to time it contemplates
acquisition opportunities that complement its business operations.
The Company currently invests primarily in the highest grades of bonds,
equities, certificates of deposit and short-term instruments. At year-end 1995,
99% of the fixed income portfolio was in securities rated A or better. All such
securities are carried at quoted market values at the latest balance sheet date.
The Company does not invest in real estate, derivatives or high yield bonds.
USF RE is restricted in the annual amount of dividends which it may pay to
the Company without receiving prior approval from the Massachusetts and
California Commissioners of Insurance. For 1996 the amount which may be paid
without such prior approval is $10,057,000. Since its acquisition by the Company
in 1983, USF RE has not paid any dividends. The Company principally receives
funds for its operations from its USBenefits subsidiary.
In December 1993 the National Association of Insurance Commissioners
formally approved risk-based capital ("RBC") requirements for property and
casualty insurance entities which are applicable to statutory filings beginning
with the year ending December 31, 1994. Application of the RBC formula to USF
RE's and USFIC's statutory financial information indicates that presently they
substantially exceed the capital level required under the RBC requirements.
LEGISLATIVE AND REGULATORY DEVELOPMENTS
Federal healthcare legislation, which was extensively considered but not adopted
by Congress during 1994, was again taken up by Congress during 1995. As with
prior efforts, such legislation concerns government regulation and control of
the financing and delivery of healthcare. Among the items being considered are
proposals concerning the scope of the present preemptive provisions of the
Employee Retirement Income Security Act of 1974 ("ERISA"). Some of these
proposals would reinforce the ERISA preemption of state regulation of self-
insured plans, while others would permit states the authority to regulate
specific aspects of self-insured plans.
17
--
<PAGE>
For the past several years, various states have been initiating their own
healthcare reforms. With respect to the self-insured market, many of these
actions have focused primarily on the small group health insurance market,
generally plans with 50 employees or less. Other state efforts include attempts
to regulate self-insured plans indirectly by regulating companies providing
stop-loss coverage. Such efforts include prescribing policy terms and
establishing minimum attachment points; i.e., the amount of risk an employer
retains for itself. The Company believes these state initiatives have not had,
and are not expected to have, a significant effect on its medical stop-loss
business.
In addition, the National Association of Insurance Commissioners ("NAIC")
proposed in September 1995 a model act that would regulate medical stop-loss
policies. The principal feature of the model act is a recommendation that stop-
loss policies contain a minimum specific attachment point of $20,000. In order
to be effective in any state, the NAIC model act would have to be adopted by
legislative action in such state. To management's knowledge, no state has
adopted the model act as of year end 1995. Management does not believe that all
states will adopt the model act, and that of those states that may, some will
adopt specific attachment point requirements lower than the $20,000 level
recommended by the model act. Furthermore, based upon recent court decisions,
the Company believes that if adopted by a state, the model act will continue to
be challenged on the basis that it is preempted by ERISA. Accordingly, at this
time the Company believes that the proposed model act will not have a
significant effect on its medical stop-loss business.
The Company cannot predict at this time the extent to which the federal or
state legislative or regulatory initiatives discussed above will be adopted, or
the extent of the impact they would have on the Company's business. Management
believes, however, that changes to the healthcare system which ultimately may be
adopted will continue to recognize employers' self-insurance of healthcare
benefits as a viable and cost effective method of financing healthcare.
Accordingly, management believes that there will be a continuing need for
medical stop-loss products and that such products will remain a source of
revenues to the Company.
Some of the statements included within Management's Discussion and Analysis
of Financial Condition and Results of Operations and the Consolidated Financial
Statements and related Notes may be considered to be forward looking statements
(as that term is defined in the Private Securities Litigation Reform Act of
1995), and which are subject to certain risks and uncertainties. Among those
factors which could cause the actual results to differ materially from those
suggested by such statements are the following: catastrophe losses in the
Company's insurance lines or a material aggregation of losses; changes in
federal or state law affecting an employer's ability to self-insure;
availability of adequate retrocessional insurance coverage at appropriate
prices; stock and bond market volatility; the effects of competitive market
pressures within the stop-loss or property/casualty marketplaces; the effect of
changes required by generally accepted accounting practices or statutory
accounting practices; and other risks which are described from time to time in
the Company's filings with the Securities and Exchange Commission.
18
--
<PAGE>
REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements were prepared by the Company,
which is responsible for their integrity and objectivity. The statements have
been prepared in conformity with generally accepted accounting principles,
appropriate in the circumstances, and necessarily include some amounts that are
based upon the Company's best estimates and judgment. Financial information
presented elsewhere in this Annual Report is consistent with these accompanying
consolidated financial statements.
The accounting systems and controls of the Company are designed to provide
assurance that transactions are executed in accordance with management's
authorization, that the financial records are reliable for preparing financial
statements and maintaining accountability for assets, and that assets are
safeguarded against losses from unauthorized use or disposition.
The Company's consolidated financial statements have been audited by KPMG
Peat Marwick LLP, independent certified public accountants, whose audits thereon
were made in accordance with generally accepted auditing standards and included
a review of internal accounting controls to the extent necessary to design audit
procedures aimed at gathering sufficient evidence to assess their opinion on the
fairness or presentation of the consolidated financial statements. The auditors
have full access to each member of management in conducting their audits, and
their report is contained elsewhere in this Annual Report.
The Audit Committee of the Board of Directors, comprised solely of non-
employee, independent directors meets regularly with management and the
independent accountants to review the work and procedures of each. The
independent accountants have free access to the Audit Committee, without
management being present, to discuss the results of their work and their
opinions on the adequacy of the Company's accounting controls and the quality of
the Company's financial reporting. The Board of Directors, upon the
recommendation of the Audit Committee, appoints the independent public
accountants, subject to annual stockholder approval.
/s/ David L. Cargile /s/ Mark Burke
David L. Cargile Mark Burke
Chairman of the Board, President Senior Vice President, Treasurer
and Chief Executive Officer and Chief Financial Officer
19
--
<PAGE>
CONSOLIDATED INCOME STATEMENTS
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------
(dollars in thousands, except per share data) 1995 1994 1993
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Revenues:
Premiums earned $114,971 $ 93,269 $ 83,206
Commissions and fees 25,994 23,583 21,736
Net investment income 9,190 5,950 5,857
Realized investment gains 1,022 9 1,180
--------------------------------
Total revenues 151,177 122,811 111,979
--------------------------------
Operating expenses:
Losses and loss adjustment expenses incurred 77,743 64,366 57,717
Policy acquisition expenses 35,964 31,341 28,876
General and administrative expenses 16,357 16,981 16,924
Other expense 695 -- --
Interest expense 2,259 58 55
--------------------------------
133,018 112,746 103,572
Unusual Charges:
Expenses related to unsolicited takeover proposal -- 2,029 --
Restructuring expenses -- 654 --
--------------------------------
Total operating expenses 133,018 115,429 103,572
Income before income taxes 18,159 7,382 8,407
Income tax expense 4,305 1,144 1,640
--------------------------------
Net income $ 13,854 $ 6,238 $ 6,767
================================
Net income per common and common equivalent share $ 2.42 $ 1.04 $ 1.14
================================
</TABLE>
See accompanying notes to consolidated financial statements
20
--
<PAGE>
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31,
-----------------------
(dollars in thousands) 1995 1994
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments:
Bonds, available for sale, at market (amortized cost
$127,577 in 1995 and $100,844 in 1994) $136,746 $ 97,684
Equity securities at market (cost $14,935 in 1995 and $11,521 in 1994) 16,691 10,684
Short-term and other investments, at cost which approximates market 16,821 24,707
-----------------------
Total investments 170,258 133,075
Cash and invested cash 8,165 4,502
Restricted cash and short-term investments 24,036 21,340
Accrued investment income 2,414 1,844
Receivables:
Reinsurance losses and reserves 18,597 14,301
Premiums 14,065 9,434
Prepaid reinsurance premiums 5,117 3,950
Deferred policy acquisition costs 2,830 3,047
Other assets 4,390 8,194
-----------------------
Total assets $249,872 $199,737
=======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Insurance liabilities:
Amounts due insurance companies $ 25,712 $ 20,418
Losses and loss adjustment expenses 78,894 69,647
Unearned premiums 17,705 14,613
Note payable 35,000 25,000
Accounts payable and accrued expenses 4,500 6,980
-----------------------
Total liabilities 161,811 135,658
-----------------------
Stockholders' equity:
Common stock, $.01 par value;
20,000,000 shares authorized;
6,074,000 and 5,946,000 issued shares in 1995 and 1994, respectively,
including 296,000 and 538,000 shares
held in treasury in 1995 and 1994, respectively. 61 59
Paid in capital 44,489 44,261
Net unrealized gain (loss) on securities 7,211 (2,637)
Retained earnings 39,273 26,544
-----------------------
91,034 68,227
Less treasury stock, at cost (2,973) (5,148)
-----------------------
Total stockholders' equity 88,061 63,079
-----------------------
Commitments and contingencies
Total liabilities and stockholders' equity $249,872 $199,737
=======================
</TABLE>
See accompanying notes to consolidated financial statements.
21
--
<PAGE>
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Net
Unrealized
Gain Total
Common Paid in (Loss) Retained Treasury Stockholders'
(dollars in thousands) Stock Capital on Securities Earnings Stock Equity
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1993 $59 $43,006 $ 55 $13,539 $ (774) $55,915
Net Income -- -- -- 6,767 -- 6,767
Exercise of stock options
(27,000 shares) -- 36 -- -- 113 149
Unrealized investment gain, net -- -- 388 -- -- 388
Issuance of 17,000 restricted
shares of common stock -- 114 -- -- -- 114
------------------------------------------------------------------------
Balance at December 31, 1993 59 43,156 443 20,306 (631) 63,333
Effect of adoption of SFAS
No. 115 on January 1, 1994 -- -- 3,838 -- -- 3,838
Net Income -- -- -- 6,238 -- 6,238
Exercise of stock options
(171,000 shares) -- 1,105 -- -- 483 1,588
Unrealized investment loss, net -- -- (6,918) -- -- (6,918)
Purchase of 498,000
shares of common stock -- -- -- -- (5,000) (5,000)
------------------------------------------------------------------------
Balance at December 31, 1994 59 44,261 (2,637) 26,544 (5,148) 63,079
Net Income -- -- -- 13,854 -- 13,854
Exercise of stock options
(280,700 shares) 2 228 -- -- 2,175 2,405
Dividends paid -- -- -- (1,125) -- (1,125)
Unrealized investment gain, net -- -- 9,848 -- -- 9,848
------------------------------------------------------------------------
Balance at December 31, 1995 $61 $44,489 $7,211 $39,273 $(2,973) $88,061
========================================================================
</TABLE>
See accompanying notes to consolidated financial statements.
22
--
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------
(dollars in thousands) 1995 1994 1993
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Flows From Operating Activities:
Net income $ 13,854 $ 6,238 $ 6,767
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of deferred policy acquisition costs 34,281 30,032 27,275
Deferred policy acquisition costs (34,064) (30,612) (27,939)
Depreciation and amortization 214 518 396
Realized investment gains (1,022) (9) (1,180)
Increase in premiums receivable (4,631) (1,351) (895)
Increase in reinsurance receivables (4,296) (6,283) (1,316)
Decrease (increase) in other assets 2,055 (2,176) (749)
Increase in losses and loss adjustment expenses 9,247 10,877 6,723
Increase in unearned premiums 3,092 4,322 3,876
Increase (decrease) in other liabilities (2,814) 5,071 4,739
Net transfers to restricted cash and short-term investments (2,696) (158) (5,099)
------------------------------------
Net cash provided by operating activities 13,220 16,469 12,598
------------------------------------
Cash Flows From Investing Activities:
Purchases of bonds (102,339) (30,129) (42,395)
Purchases of equity securities (12,790) (7,061) (2,686)
Proceeds from sales and maturities of investment securities 86,587 22,673 35,107
Net sales (purchases) of short-term investments 7,886 (21,586) 809
Purchases of property and equipment (181) (303) (628)
------------------------------------
Net cash used in investing activities (20,837) (36,406) (9,793)
------------------------------------
Cash Flows From Financing Activities:
Proceeds from note payable 10,000 25,000 --
Payments on note payable -- -- (1,600)
Purchase of treasury stock -- (5,000) --
Dividends paid (1,125) -- --
Proceeds from issuance of common stock 2,405 1,588 263
------------------------------------
Net cash provided by (used in) financing activities 11,280 21,588 (1,337)
------------------------------------
Net Increase in Cash and
Invested Cash: 3,663 1,651 1,468
Cash and invested cash at beginning of year 4,502 2,851 1,383
------------------------------------
Cash and invested cash at end of year $ 8,165 $ 4,502 $ 2,851
====================================
Supplemental Disclosures of Cash Flow Information:
Cash paid during the year for:
Interest $ 2,187 $ 19 $ 48
Income taxes $ 5,217 $ 1,350 $ 1,232
====================================
</TABLE>
See accompanying notes to consolidated financial statements.
23
--
<PAGE>
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) ORGANIZATION AND PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of US Facilities
Corporation, a Delaware corporation (the "Company"), and its wholly owned
subsidiaries. The Company's USBenefits Insurance Services, Inc. subsidiary acts
primarily as the managing general underwriter and marketing organization for
medical stop-loss coverages issued by The Continental Insurance Company, one of
the CNA Insurance Companies. Its USF RE INSURANCE COMPANY and USF Insurace
Company subsidiaries write property/casualty reinsurance and insurance. All
significant intercompany balances and transactions have been eliminated in
consolidation.
(B) RECOGNITION OF REVENUE
Management fees and brokerage commissions are primarily recognized as of the
effective date of the underlying insurance coverage. Insurance and reinsurance
premiums are generally recognized as revenues over the terms of the related
policies on a pro-rata basis, and are reported net of ceded earned premiums.
Substantially all commissions and fees and approximately 71%, 79% and 81% of
premiums earned for 1995, 1994 and 1993 respectively, result from contracts
between subsidiaries of the Company and The Continental Insurance Company. Such
contracts may be terminated as of any year-end.
(C) INVESTMENTS
Securities are purchased to support the investment strategies of the Company,
which are based on many factors including, but not limited to, rate of return,
maturity, credit risk, tax considerations, regulatory requirements and market
economics. The Company has the ability to hold all bonds to maturity. However,
securities in the portfolio may be sold from time to time based upon the
Company's investment strategies and market opportunities. Statement of Financial
Accounting Standards (SFAS) No. 115, "Accounting for Certain Investments in Debt
and Equity Securities," was adopted by the Company effective January 1, 1994.
Bonds are considered held as available for sale and carried at market value as
of the balance sheet date. Declines in the market value of any security below
cost that is deemed other than temporary will be charged to earnings. Unrealized
gains and losses net of income taxes are reported as a separate component of
stockholders' equity. The cumulative effect of adoption of SFAS No. 115
increased the carrying value of bonds by $5,838,000 and increased stockholders'
equity by $3,838,000 at January 1, 1994. Market values of bonds are primarily a
function of current interest rates, and vary from period to period.
Realized gains or losses on sales of investments are computed on a specific
identification basis.
(D) SHORT-TERM AND OTHER INVESTMENTS AND INVESTED CASH
Short-term and other investments are principally money market mutual funds and
variable rate municipal bonds which adjust weekly. Cash and invested cash
consists of bank deposits, certificates of deposit with original maturities of
less than 90 days and money market mutual funds.
Premiums collected but not yet remitted to insurance companies are
restricted by law as to use. Such amounts are reported as restricted cash and
short-term investments, which at December 31, 1995 and 1994 consisted primarily
of money market mutual funds, bank certificates of deposit, tax-free auction
rate preferred stocks which are redeemable at par value every 7 - 270 days, and
municipal bonds maturing in less than one year.
(E) POLICY ACQUISITION COSTS
The insurers' costs of acquiring new business are deferred to the extent
estimated to be recoverable from future income, including investment income, and
amortized to operations ratably over the terms of the related
24
--
<PAGE>
policies. Acquisition costs include commissions, premium taxes and certain
underwriting expenses related to production of insurance and reinsurance
business.
(F) LOSSES AND LOSS ADJUSTMENT EXPENSES
The liability for losses is determined on the basis of claim adjusters' and
ceding reinsurers' reports and other estimates, including those for incurred but
not reported losses. The liability for loss adjustment expenses is established
by estimating future expenses to be incurred in the settlement of claims
provided for in the liability for losses. Both estimates are dependent upon
future events, the outcomes of which can be affected by economic, legal,
political and social factors. The Company does not discount estimated future
expenses to their present values.
Management believes that the estimated liability for losses and loss
adjustment expenses at December 31, 1995 is adequate to cover the ultimate
liability; however, such estimates may be more or less than the amount
ultimately paid when the claims are settled.
(G) REINSURANCE
Reinsurance receivables (including amounts related to claims incurred, both
reported and not reported) and prepaid reinsurance premiums are reported as
assets. In the normal course of business, the Company seeks to reduce the loss
that may arise from events which may cause unfavorable underwriting results by
reinsuring certain levels of risk with other insurance enterprises. Amounts
recoverable from reinsurers are estimated in a manner consistent with the claim
liability associated with the reinsured policy. However, such estimates may be
more or less than the amount ultimately collected when claims are settled.
(H) VALUATION OF ASSETS, DEPRECIATION AND AMORTIZATION
In 1995, the Company adopted the provisions of SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of."
Adoption of this pronouncement did not have a material effect on the financial
statements of the Company. Depreciation and amortization are provided on the
straight-line basis over the estimated useful lives of the related assets.
Leasehold improvements are amortized over the lesser of the lease terms or
useful lives of the improvements. Intangibles are amortized over their estimated
useful lives of predominantly forty years.
(I) INCOME TAXES
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial reporting basis
and the tax basis of the Company's assets and liabilities, as well as expected
benefits of utilizing net operating loss carryforwards. The impact on deferred
taxes of changes in tax rates and laws, if any, are applied to the years during
which temporary differences are expected to be settled, and reflected in the
financial statements in the period of enactment.
(J) FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company has disclosed the fair value of financial instruments and the
methods and assumptions used to establish fair value, as required by SFAS No.
107, "Disclosures About the Fair Value of Financial Instruments" which was
adopted for the year ending December 31, 1995.
(K) INCOME PER COMMON SHARE
The computation of per share data is based upon 5,728,000, 6,006,000 and
5,940,000 weighted average shares outstanding during the years ended December
31, 1995, 1994 and 1993, respectively. Common stock equivalents, consisting of
outstanding stock options, have been included in the computation of primary
income per share, which approximated fully diluted income per share.
25
--
<PAGE>
(L) STOCK-BASED COMPENSATION
SFAS No. 123, "Accounting for Stock-Based Compensation," issued in October,
1995, will be adopted by the Company for the year ending December 31, 1996.
Presently, management expects to continue use of the accounting methods
prescribed by Accounting Principles Board Opinion No. 25 and expand its
disclosure of stock-based compensation as permitted by SFAS No. 123.
Accordingly, adoption of this pronouncement is not expected to have a material
effect on the financial statements of the Company.
NOTE 2 - INVESTMENTS
Bonds valued at approximately $4,260,000 were on deposit with various
governmental authorities at December 31, 1995.
The amortized cost and estimated market values of bonds, in thousands of
dollars, at December 31, 1995 and 1994 are as follows:
<TABLE>
<CAPTION>
December 31, 1995
-------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies $ 11,071 $ 722 $ -- $ 11,793
Foreign bonds 557 65 -- 622
Obligations of states and political
subdivisions 69,967 4,587 117 74,437
Corporate bonds 45,982 3,963 51 49,894
-------------------------------------------------
Total $ 127,577 $9,337 $ 168 $136,746
=================================================
</TABLE>
<TABLE>
<CAPTION>
December 31, 1994
-------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies $ 8,826 $ 20 $ 282 $ 8,564
Foreign bonds 1,560 15 47 1,564
Obligations of states and political subdivisions 75,724 495 2,657 73,562
Corporate bonds 14,734 18 758 13,994
-------------------------------------------------
Total $100,844 $ 584 $3,744 $ 97,684
=================================================
</TABLE>
The amortized cost and estimated market value of bonds at December 31, 1995, by
contractual maturity, are shown below in thousands of dollars. Expected
maturities will differ from contractual maturities because certain borrowers
have the right to call or prepay obligations with or without call or prepayment
penalties.
<TABLE>
<CAPTION>
Maturity Dates Amortized Cost Market Value
---------------------------------------------------
<S> <C> <C>
1996 $ 2,158 $ 2,224
1997-2000 14,576 15,173
2001-2005 63,934 68,367
2006-2024 46,909 50,982
---------------------------------------------------
Total $127,577 $136,746
===================================================
</TABLE>
26
--
<PAGE>
Information regarding bond sales (in thousands of dollars) follows:
<TABLE>
<CAPTION>
Year ended Proceeds Gross Gross
December 31, From sales Gains Losses
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1995 $77,373 $ 1,677 $ 522
1994 17,136 385 355
1993 33,259 1,074 249
==========================================================================================
</TABLE>
Information regarding equity dispositions (in thousands of dollars) follows:
<TABLE>
<CAPTION>
Year ended Proceeds Gross Gross
December 31, From sales Gains Losses
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1995 $ 9,214 $ 211 $ 344
1994 2,853 68 54
1993 1,347 72 --
==========================================================================================
</TABLE>
Information regarding gross unrealized gains and losses on equity securities (in
thousands of dollars) follows:
<TABLE>
<CAPTION>
Gross Gross
Year ended Unrealized Unrealized
December 31, Gains Losses
- ------------------------------------------------------------------------------------------
<S> <C> <C>
1995 $ 2,243 $ 487
1994 375 1,212
1993 671 --
==========================================================================================
</TABLE>
Net investment income in thousands of dollars consists of the following:
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------
1995 1994 1993
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest on bonds $ 8,134 $ 5,347 $5,517
Short-term investment interest 1,569 803 585
Dividends on equity securities 496 604 440
-----------------------------------------
10,199 6,754 6,542
Less: Investment expenses 1,009 804 685
-----------------------------------------
Net investment income $ 9,190 $ 5,950 $5,857
=========================================
</TABLE>
NOTE 3 - REINSURANCE
Reinsurance contracts do not relieve the Company from its obligations to
policyholders. A contingent liability exists for the amount of all reinsurance
deductions necessary in the event that any of the reinsuring companies are
unable to pay their portion of any losses; consequently, allowances are
established for amounts deemed uncollectible. The Company evaluates the
financial condition of its reinsurers and monitors concentrations of credit risk
arising from similar geographic regions, activities, or economic characteristics
of the reinsurers to minimize its exposure to significant losses from reinsurer
insolvencies. At December 31, 1995, reinsurance recoverables and prepaid
premiums of $13,603,000 were unsecured. The Company holds letters of credit
totaling approximately $6,470,000 under certain reinsurance agreements that can
be drawn on for amounts that remain unpaid for more than 120 days.
27
--
<PAGE>
The property and casualty insurance companies cede a portion of their business
to other insurance companies, under multiple reinsurance agreements. The effect
of reinsurance on premiums written and earned and the effect of ceding
arrangements, in thousands of dollars follows:
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------------------------
1995 1994 1993
--------------------------------------------------------------------------
Premiums Premiums Premiums Premiums Premiums Premiums
Written Earned Written Earned Written Earned
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Direct $ 11,260 $ 12,218 $12,004 $ 9,386 $ 7,338 $ 6,289
Reinsurance assumed 121,201 117,151 96,275 94,573 85,524 82,698
Reinsurance ceded (15,565) (14,398) (11,897) (10,690) (7,287) (5,781)
--------------------------------------------------------------------------
Net $116,896 $114,971 $96,382 $ 93,269 $85,575 $83,206
==========================================================================
Losses and loss adjustment expenses ceded $ 8,327 $ 10,141 $ 1,750
==========================================================================
Liabilities for losses and loss adjustment
expenses ceded $ 16,426 $ 13,343 $ 7,412
==========================================================================
Commissions ceded $ 2,441 $ 1,723 $ 884
==========================================================================
</TABLE>
NOTE 4 - RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES
The table below summarizes the activity for losses and loss adjustment expenses
(LAE), net of reinsurance recoverable, for the years ended December 31, 1995,
1994 and 1993, respectively. Reserves are established for losses that have
occurred but have not been reported as of each balance sheet date.
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------
1995 1994 1993
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Balance at beginning of period $ 69,647 $58,770 $52,047
Less reinsurance recoverables 13,343 7,412 6,564
--------------------------------------------------
Reserve for losses and LAE at beginning
of period, net 56,304 51,358 45,483
Incurred losses and LAE:
Provision for losses and LAE for claims
occurring in the current year 74,935 61,941 56,081
Increase in estimated losses and LAE for
claims occurring in prior years 2,808 2,425 1,636
Loss and LAE payments for claims occurring during:
The current year (39,511) (33,345) (29,652)
Prior years (32,116) (26,075) (22,190)
--------------------------------------------------
Reserve for losses and LAE at end of period, net 62,420 56,304 51,358
Plus reinsurance recoverables 16,474 13,343 7,412
--------------------------------------------------
Balance at end of period $ 78,894 $69,647 $58,770
==================================================
</TABLE>
28
--
<PAGE>
NOTE 5 - NOTE PAYABLE
On December 20, 1994 the Company entered into a $35,000,000 reducing, revolving,
variable interest rate bank Credit Agreement. Amounts borrowed bear interest at
LIBOR plus a margin, currently 2%. At December 31, 1995, $35,000,000 was
outstanding. Under its terms, the outstanding balance is to be reduced quarterly
beginning March 31, 1996, with aggregate annual reductions in thousands of
dollars as follows:
<TABLE>
<CAPTION>
Year Reductions
--------------------------------------
<S> <C>
1996 $ 2,500
1997 5,300
1998 6,800
1999 6,800
2000 6,800
2001 6,800
--------
Total $ 35,000
========
</TABLE>
Interest on amounts outstanding at December 31, 1995 is paid at an effective
rate of 7.6% through March 27, 1996.
The Credit Agreement also contains restrictive covenants which include
restrictions on other debt, mergers, acquisitions and investment portfolio
quality. Additionally, the Credit Agreement requires the Company to maintain
certain levels of financial ratios, statutory surplus and pretax statutory net
income, minimum consolidated tangible net worth, risk based capital ratio and
A.M. Best Company rating. The Credit Agreement is secured by a pledge of all the
capital stock of USF RE INSURANCE COMPANY. At December 31, 1995 the Company was
in compliance with all covenants.
NOTE 6 - INCOME TAXES
Income tax expense (benefit), in thousands of dollars consists of:
<TABLE>
<CAPTION>
Year Ended December 31, 1995:
---------------------------------------
Federal State Total
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Current $3,818 $312 $4,130
Deferred 121 54 175
---------------------------------------
Total $3,939 $366 $4,305
=======================================
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31, 1994:
---------------------------------------
Federal State Total
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Current $ 884 -- $ 884
Deferred 289 (29) 260
----------------------------------------
Total $ 1,173 $ (29) $ 1,144
========================================
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31, 1993:
---------------------------------------
Federal State Total
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Current $ 1,248 $ 566 $ 1,814
Deferred (193) 19 (174)
----------------------------------------
Total $ 1,173 $ 585 $ 1,640
=======================================
</TABLE>
29
--
<PAGE>
Actual tax expense differs from "expected" tax expense which is computed by
applying the federal statutory rate to income before taxes, in thousands of
dollars as follows:
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------
1995 1994 1993
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
"Expected" federal tax expense at 34% $ 6,174 $ 2,510 $ 2,858
Tax exempt interest - net (1,621) (1,615) (1,413)
Other (248) 249 195
---------------------------------------
Actual income tax expense $ 4,305 $ 1,144 $ 1,640
=======================================
</TABLE>
The tax effects of temporary differences that give rise to significant portions
of deferred tax assets and deferred tax liabilities at December 1995 and 1994
are presented below in thousands of dollars:
<TABLE>
<CAPTION>
December 31,
--------------------------
1995 1994
- -------------------------------------------------------------------------------------
<S> <C> <C>
Deferred tax assets:
Loss and loss adjustment expense reserves $ 3,111 $ 2,502
Unearned premiums 861 725
Net operating loss carryforwards 462 535
Alternative minimum tax -- 728
Net unrealized losses -- 1,451
Other 207 316
--------------------------
Total deferred tax assets 4,641 6,257
Less valuation allowance (1,020) (1,135)
--------------------------
Net deferred tax assets 3,621 5,122
Deferred tax liabilities:
Intangibles (560) (578)
Depreciation (145) (122)
Policy acquisition costs (968) (993)
Net unrealized gain (3,672) --
Other -- (152)
--------------------------
Total deferred tax liabilities (5,345) (1,845)
--------------------------
Deferred income taxes $(1,724) $ 3,277
==========================
</TABLE>
Based on the Company's current and historical earnings, management believes it
is more likely than not that the existing net deductible temporary differences
will reverse during periods in which the Company generates net taxable income.
However, there can be no assurance that the Company will generate any earnings
or any specific level of continuing earnings in future years. Certain tax
planning strategies could be implemented to supplement income from operations to
fully realize recorded tax benefits.
Net operating loss carryforwards of approximately $1,610,000 are available
to offset future federal taxable income of a subsidiary through 2005.
NOTE 7 - STOCKHOLDERS' EQUITY
The Company is authorized to issue 20,000,000 shares of common stock and
5,000,000 shares of preferred stock.
The Company has a Stockholder Rights Plan which provides that in the event any
person becomes the beneficial owner of 10% or more of the outstanding common
stock of the Company, each right (other than rights held
30
--
<PAGE>
by the 10% stockholder) will be exercisable at a predetermined price after the
close of business on the tenth business day following such event. Each right
entitles the holder thereof to purchase shares of common stock of the Company
which have a market value equal to two times the then established exercise price
($65.00 per share at December 31, 1995). The Plan further provides that if, on
or after the occurrence of the previously mentioned event, the Company is merged
with or into any other corporation, or 50% or more of the Company's assets or
earning power are sold, each right (other than rights held by the 10%
stockholder) will be exercisable to purchase shares of common stock of the
surviving corporation or purchaser which have a market value equal to two times
the exercise price. The rights expire on May 24, 2000, and can be redeemed by
the Board of Directors at $.001 per right at any time before the first date on
which they first become exercisable.
At December 31, 1995 and 1994, USF RE's statutory surplus was $100,568,000
and $77,367,000, respectively. Statutory net income for USF RE was $9,359,000,
$6,418,000 and $1,277,000 for the years ended December 31, 1995, 1994 and 1993,
respectively.
USF RE is limited in the amount of dividends it can pay to the Company
without prior approval of the Insurance Commissioners of Massachusetts and
California. Such limitation is the greater of net income or 10% of
policyholders' surplus of the preceding year. During 1996 USF RE may pay
dividends of $10,057,000 to the Company without such prior approval.
NOTE 8 - STOCK OPTIONS AND EMPLOYEE BENEFITS
The Company has four plans under which options to purchase shares of the
Company's common stock have been or may be granted. Options to purchase up to
300,000 and 600,000 shares have been authorized under the 1988 and 1991 Employee
Stock Option Plans. Options to purchase up to 35,000 and 50,000 shares have been
authorized under the 1988 and 1991 Director Stock Option Plans. Such plans allow
the Company to grant incentive stock options (ISO's), nonqualified stock options
(NQSO's), stock appreciation rights (SAR's) and restricted shares to key
employees and directors at prices not lower than the market value at date of
grant. Options are exercisable through periods ending December 17, 1996 to
August 31, 2003. No SAR's or restricted share grants were outstanding at
December 31, 1995 or 1994.
The status of all optioned shares is as follows:
<TABLE>
<CAPTION>
December 31,
----------------------
1995 1994
- ----------------------------------------------------------------------------------
<S> <C> <C>
Outstanding-beginning of year 648,900 828,400
Granted, at prices ranging from $13.38 to $20.00
(1995) and $9.00 to $11.25 (1994) 234,400 36,000
Exercised, at prices ranging from $3.25 to $12.38 (280,700) (171,000)
Canceled, at prices ranging from $9 to $14 (21,000) (44,500)
----------------------
Outstanding-end of year 581,600 648,900
======================
Options exercisable at prices ranging from $9.00
($3.25 in 1994) to $14.00 307,500 547,566
======================
</TABLE>
At December 31, 1995, the Company also has 30,000 options outstanding,
exercisable at prices ranging from $5.04 to $13.00. Such options were sold in
1991 at $1 per share to a corporation controlled by a current officer and
director of the Company, and expire at various dates in 1996.
31
--
<PAGE>
The US Facilities Corporation Employees Savings Plan is a voluntary
contributory 401(k) savings plan covering substantially all employees. Eligible
employees may contribute up to 15% of their compensation on a pre-tax basis. The
Company makes matching contributions to the plan on a pro-rata basis for all
participants up to a maximum of 6% of each individual's compensation. For 1995,
1994 and 1993 such matching contributions were $395,000, $321,000 and $316,000,
respectively.
NOTE 9 - SEGMENT INFORMATION
Certain information about the Company's operations by industry segment is
summarized as follows, in thousands of dollars:
<TABLE>
<CAPTION>
Year ending December 31,
--------------------------------------
1995 1994 1993
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Revenues:
Medical stop-loss and employee benefits $110,809 $ 98,373 $ 90,892
Property/casualty underwriting 39,297 24,429 19,907
Holding Company (including realized gains) 1,071 9 1,180
--------------------------------------
Total $151,177 $122,811 $111,979
======================================
Income before income taxes:
Medical stop-loss and employee benefits $ 17,152 $ 12,598 $ 7,265
Property/casualty underwriting 3,918 (1,774) 761
Holding Company (2,911) (3,442) 381
--------------------------------------
Total $ 18,159 $ 7,382 $ 8,407
======================================
Identifiable assets:
Medical stop-loss and employee benefits $ 75,529 $ 69,160 $ 59,400
Property/casualty underwriting 170,645 126,297 93,938
Holding Company 3,698 4,280 1,385
--------------------------------------
Total $249,872 $199,737 $154,723
======================================
</TABLE>
NOTE 10 - COMMITMENTS AND CONTINGENCIES
The Company leases certain facilities and equipment under long-term operating
leases which expire at various dates through 2007. Taxes, insurance and
maintenance are generally obligations of the Company. Total rent expense,
including month-to-month rentals, was $1,951,000 in 1995, $1,566,000 in 1994 and
$1,764,000 in 1993. Future minimum noncancelable lease commitments in thousands
of dollars are as follows:
<TABLE>
<CAPTION>
Year ending December 31,
--------------------------------------
<S> <C>
1996 $1,043
1997 1,053
1998 922
1999 927
2000 892
Thereafter 5,087
------
$9,924
======
</TABLE>
32
--
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
and Stockholders
US Facilities Corporation
We have audited the accompanying consolidated balance sheets of US Facilities
Corporation and subsidiaries as of December 31, 1995 and 1994 and the related
consolidated income statements, statements of stockholders' equity and cash
flows for each of the years in the three-year period ended December 31, 1995.
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of US
Facilities Corporation and subsidiaries at December 31, 1995 and 1994, and the
results of their operations and their cash flows for each of the years in the
three-year period ended December 31, 1995, in conformity with generally accepted
accounting principles.
As discussed in Note 1 to the consolidated financial statements, the
Company changed its method of accounting for investments in 1994 to adopt the
provisions of the Financial Accounting Standards Board's Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments in Debt and
Equity Securities."
February 6, 1996
Los Angeles, California
33
--
<PAGE>
QUARTERLY RESULTS OF OPERATIONS
Following is quarterly summary financial information for 1995, 1994 and 1993 in
thousands of dollars, except per share data.
<TABLE>
<CAPTION>
lst 2nd 3rd 4th
Quarter Quarter Quarter Quarter
----------------------------------------------
<S> <C> <C> <C> <C>
1995
Revenues $35,459 $39,932 $36,330 $39,456
Income before income taxes 3,732 5,023 4,606 4,798
Net Income 2,922 3,849 3,477 3,606
----------------------------------------------
Net income per share: $ .52 $ .67 $ .60 $ .61
==============================================
1994
Revenues $30,469 $32,185 $29,505 $30,652
Income before income taxes 424 697 2,832 3,429
Net income 600 761 2,107 2,770
----------------------------------------------
Net income per share: $ .10 $ .13 $ .35 $ .46
==============================================
1993
Revenues $26,014 $27,155 $29,014 $29,796
Income before income taxes 2,394 2,357 1,958 1,698
Net income 1,850 1,844 1,531 1,542
----------------------------------------------
Net income per share: $ .31 $ .31 $ .26 $ .26
==============================================
</TABLE>
STOCK PRICE INFORMATION
Following are the quarterly high and low prices from January 1, 1994 through
March 8, 1996. The Company believes that as of March 8, 1996 there were
approximately 1,600 holders of its common stock.
<TABLE>
<CAPTION>
1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter
High Low High Low High Low High Low
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 through
March 8 21 3/8 16 1/2
1995 14 1/2 9 3/4 16 1/4 13 1/8 20 3/8 16 23 3/8 17 1/2
1994 12 1/4 8 1/2 14 5/8 8 1/4 13 7/8 11 1/2 11 5/8 9 1/8
</TABLE>
34
--
<PAGE>
US FACILITIES CORPORATION
<TABLE>
<CAPTION>
BOARD OF DIRECTORS CORPORATE OFFICERS
<S> <C>
John A. Allison (2,4) David L. Cargile
Retired; Former Vice Chairman and Chairman of the Board, President and
Chief Marketing Officer, Chief Executive Officer
Occidental Life Insurance Company
of California, and Vice Chairman, Howard S. Singer
Transamerica Insurance Group Executive Vice President - Corporate Finance
and Investor Relations
Jonathan D. DuBois (2,5)
Partner, Member of Policy Committee, Mark Burke
Coudert Brothers Senior Vice President, Treasurer and
Chief Financial Officer
David L. Cargile (1,3,5)
Chairman, President and Chief John T. Grush
Executive Officer, Senior Vice President
US Facilities Corporation
Craig J. Kelbel
John F. Kooken (1,3) Senior Vice President
Retired; Director, Glendale Federal Savings Bank;
Former Vice Chairman and Chief Financial Officer, Jose A. Velasco
Security Pacific Corporation Senior Vice President,
Secretary and General Counsel
L. Steven Medgyesy, M.D. (3,4)
Retired; Former Director of Laboratories, Patricia S. Boisseranc
Lincoln West Medical Center Vice President
Bernard H. Ross (2,4) Barbara Fox Stoner
Chairman & Chief Executive Officer, Vice President
Fitness Horizons, Inc.; Former Partner and
National Director of Healthcare Services, Edward D. Jones, III
Touche Ross & Company. Vice President
Charles L. Schultz (2,3,4) Frank P. Van Buskirk
Retired; Director, Amwest Insurance Group; Vice President
Former Senior Vice President, Finance
and Chief Financial Officer,
Farmers Group, Inc.
Howard S. Singer (1,3,5)
Executive Vice President - Corporate Finance
and Investor Relations,
US Facilities Corporation
Kenneth C. Tyler (2,4)
Retired; Attorney at Law; Former
Vice Chairman and General Counsel,
Farmers Group, Inc.
</TABLE>
1995 Committee Assignments
(1) Member of Executive Committee
(2) Member of Audit Committee
(3) Member of Investment Committee
(4) Member of Compensation Committee
(5) Member of Nominating Committee
35
--
<PAGE>
STOCKHOLDER INFORMATION
ANNUAL MEETING
The 1996 Annual Meeting of Stockholders of US Facilities Corporation will be
held on May 22, 1996 at 9:00 a.m. Local Time, at the Westin South Coast Plaza
Hotel, 686 Anton Boulevard, Costa Mesa, California 92626.
ADDITIONAL INFORMATION
Stockholder inquiries and requests for additional copies of this Report and the
Company's 1995 Report on Form 10-K filed with the Securities and Exchange
Commission should be directed to: Howard S. Singer, Executive Vice President, US
Facilities Corporation, 6200 N. Hiawatha, Suite 400, Chicago, Illinois 60646,
(312) 545-3285.
BOOK VALUE
$15.24 per share at December 31, 1995.
REGISTRAR AND TRANSFER AGENT
American Stock Transfer & Trust Company, 40 Wall Street, New York, New York
10005.
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP, 725 So. Figueroa Street, Los Angeles, California 90017.
STOCK TRADING INFORMATION
The Company's common stock trades on The Nasdaq Stock Market under the symbol
USRE.
36
--
<PAGE>
EXHIBIT 21
US FACILITIES CORPORATION AND SUBSIDIARIES
As of December 31, 1995
US FACILITIES CORPORATION
A Delaware Corporation
100% 100%
US MEDCARE REVIEW, INC.
USBENEFITS INSURANCE SERVICES, An Illinois Corporation
INC. (INACTIVE)
A California Corporation
100%
USF RE INSURANCE COMPANY
A Massachusetts Corporation
100%
US HOLDINGS, INC.
A Delaware Corporation
100%
USF INSURANCE COMPANY
A Pennsylvania Corporation
<PAGE>
EXHIBIT 23
The Board of Directors
US Facilities Corporation
We consent to incorporation by reference in Registration Statements (No. 33-
41086 and No. 33-46841), both on Form S-8, of US Facilities Corporation of our
report dated February 6, 1996, relating to the consolidated balance sheets of
US Facilities Corporation and subsidiaries as of December 31, 1995 and 1994,
and the related consolidated income statements, statements of stockholders'
equity and cash flows for each of the years in the three-year period ended
December 31, 1995, and all related schedules, which report appears in the
December 31, 1995 annual report on Form 10-K of US Facilities Corporation and
subsidiaries.
Our report refers to the adoption of the Financial Accounting Standards
Board's Statement of Financial Accounting Standards No. 115, "Accounting for
Certain Investments in Debt and Equity Securities."
KPMG PEAT MARWICK LLP
Los Angeles, California
March 26, 1996
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS YEAR
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1995
<PERIOD-START> OCT-01-1995 JAN-01-1995
<PERIOD-END> DEC-31-1995 DEC-31-1995
<DEBT-HELD-FOR-SALE> 0 0
<DEBT-CARRYING-VALUE> 0 0
<DEBT-MARKET-VALUE> 0 0
<EQUITIES> 0 0
<MORTGAGE> 0 0
<REAL-ESTATE> 0 0
<TOTAL-INVEST> 0 170,258
<CASH> 0 32,201
<RECOVER-REINSURE> 0 18,597
<DEFERRED-ACQUISITION> 0 2,830
<TOTAL-ASSETS> 0 249,872
<POLICY-LOSSES> 0 78,894
<UNEARNED-PREMIUMS> 0 17,705
<POLICY-OTHER> 0 0
<POLICY-HOLDER-FUNDS> 0 0
<NOTES-PAYABLE> 0 35,000
0 0
0 0
<COMMON> 0 61
<OTHER-SE> 0 88,000
<TOTAL-LIABILITY-AND-EQUITY> 0 249,872
30,128 114,971
<INVESTMENT-INCOME> 2,286 9,190
<INVESTMENT-GAINS> 429 1,022
<OTHER-INCOME> 6,613 25,994
<BENEFITS> 20,981 77,743
<UNDERWRITING-AMORTIZATION> 9,157 35,964
<UNDERWRITING-OTHER> 3,885 16,357
<INCOME-PRETAX> 4,798 18,159
<INCOME-TAX> 1,192 4,305
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 3,606 13,854
<EPS-PRIMARY> 0.61 2.42
<EPS-DILUTED> 0.61 2.42
<RESERVE-OPEN> 0 56,304
<PROVISION-CURRENT> 0 74,935
<PROVISION-PRIOR> 0 2,808
<PAYMENTS-CURRENT> 0 39,511
<PAYMENTS-PRIOR> 0 32,116
<RESERVE-CLOSE> 0 62,420
<CUMULATIVE-DEFICIENCY> 0 2,808
</TABLE>
<PAGE>
EXHIBIT 28
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES
NOTES TO SCHEDULE P
1. The Parts of Schedule P:
Part 1 - detailed information on losses and loss expenses.
Part 2 - history of incurred losses and allocated expenses.
Part 3 - history of loss and allocated expense payments.
Part 4 - history of bulk and incurred but not reported reserves.
Part 5 - history of claims.
Part 6 - history of premiums earned.
Part 7 - history of loss sensitive contracts
Schedule P Interrogatories.
2. Lines of business A through M, R and S are groupings of the lines of
business used on the state page.
3. Reinsurance A, B, C, and D (Lines N to Q) are:
Reinsurance A = nonproportional property (1988 and subsequent)
Reinsurance B = nonproportional liability (1988 and subsequent)
Reinsurance C = financial lines (1988 and subsequent)
Reinsurance D = old Schedule O Line 30 (1987 and prior)
SCHEDULE P - PART 1 - SUMMARY
($000 Omitted)
<TABLE>
<CAPTION>
========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums -------------------------------------------------------------
Were Earned Direct and Ceded Net (5) (6) (7) (8)
and Losses Assumed (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ............ 11 .......... 6 .......... 23 ......... 16
2. 1986 ........ 19,531 ........... ......... 19,531 ......... 9,779 ............. ........... 2 ............
3. 1987 ........ 20,532 ....... 164 ......... 20,368 ........ 12,592 ......... 235 ......... 138 .......... 4
4. 1988 ........ 35,093 ..... 1,799 ......... 33,294 ........ 20,317 ......... 149 ......... 204 .......... 4
5. 1989 ........ 53,387 ..... 3,957 ......... 49,430 ........ 27,136 ......... 353 ......... 204 ......... (1)
6. 1990 ........ 52,298 .... 3,418 ......... 48,880 ........ 27,244 ......... 454 ......... 274 ........ (13)
7. 1991 ........ 46,643 ..... 3,989 ......... 42,654 ........ 25,879 ......... 941 ....... 2,523 ...... 1,065
8. 1992 ........ 63,156 ..... 3,426 ......... 59,730 ........ 40,922 ....... 1,215 ......... 701 ......... 84
9. 1993 ....... 102,044 .... 18,838 ......... 83,206 ........ 61,615 ....... 9,203 ....... 1,004 ........ 261
10. 1994 ....... 119,632 .... 26,362 ......... 93,270 ........ 69,013 ...... 13,380 ....... 1,690 ........ 716
11. 1995 ....... 150,926 .... 35,955 ........ 114,971 ........ 46,648 ....... 8,059 ......... 867 ........ 390
- ------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ....... 341,156 ...... 33,995 ....... 7,630 ...... 2,526
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===================================================================================
(1) (12)
Years in -------------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments +7 - 8 + 10) Assumed
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior .............. ............ 2 ........... 14 X X X
2. 1986 .............. .......... 278 ....... 10,059 X X X
3. 1987 .............. .......... 326 ....... 12,817 X X X
4. 1988 .............. .......... 675 ....... 21,043 X X X
5. 1989 .............. .......... 618 ....... 27,606 X X X
6. 1990 .............. .......... 641 ....... 27,718 X X X
7. 1991 .............. .......... 870 ....... 27,266 X X X
8. 1992 .............. ........ 1,021 ....... 41,345 X X X
9. 1993 .............. .......... 977 ....... 54,132 X X X
10. 1994 .............. ........ 1,042 ....... 57,649 X X X
11. 1995 .............. .......... 444 ....... 39,510 X X X
- ---------------------------------------------------------------------------------
12. TOTALS .............. ...... 6,894 ...... 319,159 X X X
- ---------------------------------------------------------------------------------
</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 and Direct and Direct and Direct and Ceded
Assumed Ceded Assumed Ceded Assumed Ceded Assumed
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 302 .......... 160 ........... 17 .......... 13 ........... 30 ........ 16 ......... 21 ......... 12
2. 1986 ............ .............. .............. ............. .............. ........... ............ ............
3. 1987 ............ .............. ........... 65 .......... 14 .............. ........... ............ ............
4. 1988 ........ 132 ........... 23 .......... 360 .......... 60 .............. ........... .......... 3 ............
5. 1989 ...... 1,053 .......... 152 ........ 2,205 ......... 505 .............. ........... .......... 8 .......... 1
6. 1990 ...... 1,059 .......... 418 ........ 3,224 ......... 505 .............. ........... ......... 15 .......... 2
7. 1991 ...... 1,834 ........ 1,194 ........ 3,844 ......... 749 .............. ........... ......... 22 .......... 3
8. 1992 ...... 1,667 .......... 477 ........ 2,992 ......... 796 ............ 8 ......... 5 ......... 63 .......... 8
9. 1993 ...... 2,255 .......... 569 ........ 3,531 ......... 784 ........... 47 ........ 14 ........ 106 ......... 14
10. 1994 ...... 8,923 ........ 6,101 ........ 6,688 ....... 1,608 .......... 207 ........ 69 ........ 401 ........ 106
11. 1995 ..... 14,846 ........ 3,458 ....... 32,694 ....... 9,468 .......... 327 ....... 191 ........ 727 ........ 326
- ----------------------------------------------------------------------------------------------------------------------------
12. TOTALS ..... 32,071 ....... 12,552 ....... 55,620 ...... 14,502 .......... 619 ....... 295 ...... 1,366 ........ 472
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=========================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding
Unpaid Unpaid - Direct &
Assumed
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior .............. .......... 60 ........ 229 X X X
2. 1986 .............. ............. ............ X X X
3. 1987 .............. ............. ......... 51 X X X
4. 1988 .............. ........... 3 ........ 415 X X X
5. 1989 .............. .......... 20 ...... 2,628 X X X
6. 1990 .............. .......... 26 ...... 3,399 X X X
7. 1991 .............. .......... 32 ...... 3,786 X X X
8. 1992 .............. .......... 32 ...... 3,476 X X X
9. 1993 .............. .......... 51 ...... 4,609 X X X
10. 1994 .............. .......... 81 ...... 8,416 X X X
11. 1995 .............. ......... 260 ..... 35,411 X X X
- -------------------------------------------------------------------------
12. TOTALS .............. ......... 565 ..... 62,420 X X X
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS EXPENSES INCURRED LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME
(Incurred/Premiums Earned) VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ....... 10,059 ............. ........ 10,059 ........ 51.5 ............... ........ 51.5 ............... ...............
3. 1987 ....... 13,121 ......... 253 ........ 12,868 ........ 63.9 ......... 154.3 ........ 63.2 ............... ...............
4. 1988 ....... 21,694 ......... 236 ........ 21,458 ........ 61.8 .......... 13.1 ........ 64.5 ............... ...............
5. 1989 ....... 31,244 ....... 1,010 ........ 30,234 ........ 58.5 .......... 25.5 ........ 61.2 ............... ...............
6. 1990 ....... 32,483 ....... 1,366 ........ 31,117 ........ 62.1 .......... 40.0 ........ 63.7 ............... ...............
7. 1991 ....... 35,004 ....... 3,952 ........ 31,052 ........ 75.0 .......... 99.1 ........ 72.8 ............... ...............
8. 1992 ....... 47,406 ....... 2,585 ........ 44,821 ........ 75.1 .......... 75.5 ........ 75.0 ............... ...............
9. 1993 ....... 69,586 ...... 10,845 ........ 58,741 ........ 68.2 .......... 57.6 ........ 70.6 ............... ...............
10. 1994 ....... 88,043 ...... 21,980 ........ 66,063 ........ 73.6 .......... 83.4 ........ 70.8 ............... ...............
11. 1995 ....... 96,815 ...... 21,892 ........ 74,923 ........ 64.1 .......... 60.9 ........ 65.2 ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -----------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ----------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X ........ 146 ............ 83
2. 1986 ............... ............ ...............
3. 1987 ............... ......... 51 ...............
4. 1988 ............... ........ 409 ............. 6
5. 1989 ............... ...... 2,601 ............ 27
6. 1990 ............... ...... 3,360 ............ 39
7. 1991 ............... ...... 3,735 ............ 51
8. 1992 ............... ...... 3,386 ............ 90
9. 1993 ......... 100.0 ...... 4,433 ........... 176
10. 1994 ......... 100.0 ...... 7,902 ........... 514
11. 1995 ......... 100.0 ..... 34,614 ........... 797
- ----------------------------------------------------------
12. TOTALS X X X ..... 60,637 ......... 1,783
- ----------------------------------------------------------
</TABLE>
74
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 2 - SUMMARY
<TABLE>
<CAPTION>
====================================================================================================================================
(1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
---------------------------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7)
Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... ..... 11,126 ..... 11,899 ..... 12,751 ..... 13,603 ..... 14,885 ..... 14,393 ..... 13,533 ..... 13,711 .... 13,681
2. 1986 ...... ...... 9,364 ...... 9,834 ...... 9,743 ...... 9,739 ...... 9,739 ...... 9,782 ...... 9,781 ...... 9,781 ..... 9,781
3. 1987 ...... X X X ..... 11,687 ..... 12,301 ..... 12,479 ..... 12,634 ..... 12,526 ..... 12,545 ..... 12,545 .... 12,543
4. 1988 ...... X X X X X X ..... 22,467 ..... 21,172 ..... 21,036 ..... 21,191 ..... 21,618 ..... 21,192 .... 21,082
5. 1989 ...... X X X X X X X X X ..... 32,695 ..... 32,811 ..... 32,088 ..... 32,030 ..... 31,066 .... 29,906
6. 1990 ...... X X X X X X X X X X X X ..... 34,501 ..... 32,306 ..... 30,908 ..... 30,866 .... 30,523
7. 1991 ...... X X X X X X X X X X X X X X X ..... 28,632 ..... 30,438 ..... 30,263 .... 31,188
8. 1992 ...... X X X X X X X X X X X X X X X X X X ..... 41,012 ..... 43,511 .... 43,992
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ..... 55,496 .... 57,240
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X .... 61,474
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===========================================================
(1) DEVELOPMENT
- -----------------------------------------------------------
Years in Which (11) (12) (13)
Losses Were
Incurred 1995 One Year Two Year
- -----------------------------------------------------------
<S> <C> <C> <C>
1. Prior ..... ..... 13,677 ......... (4) ......... (34)
2. 1986 ...... ...... 9,781 ............. ..............
3. 1987 ...... ..... 12,543 ............. .......... (2)
4. 1988 ...... ..... 20,780 ....... (302) ........ (412)
5. 1989 ...... ..... 29,598 ....... (308) ...... (1,468)
6. 1990 ...... ..... 30,450 ........ (73) ........ (416)
7. 1991 ...... ..... 30,150 ..... (1,038) ........ (113)
8. 1992 ...... ..... 43,768 ....... (224) ......... 257
9. 1993 ...... ..... 57,711 ........ 471 ....... 2,215
10. 1994 ...... ..... 64,937 ...... 3,463 X X X
11. 1995 ...... ..... 74,219 X X X X X X
- -----------------------------------------------------------
12. TOTALS ...... 1,985 ........... 27
- -----------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3 - SUMMARY
<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) (10)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ..... 10,530 ..... 10,945 ..... 11,154 ..... 12,151 ..... 13,286 ..... 13,385 ..... 13,470 .... 13,498
2. 1986 ...... ...... 9,503 ...... 9,646 ...... 9,742 ...... 9,738 ...... 9,738 ...... 9,782 ...... 9,782 ...... 9,782 ..... 9,782
3. 1987 ...... X X X ..... 11,491 ..... 11,945 ..... 12,201 ..... 12,437 ..... 12,476 ..... 12,491 ..... 12,490 .... 12,490
4. 1988 ...... X X X X X X ..... 14,946 ..... 16,785 ..... 17,700 ..... 19,114 ..... 19,465 ..... 19,463 .... 19,898
5. 1989 ...... X X X X X X X X X ..... 20,643 ..... 23,434 ..... 24,088 ..... 26,075 ..... 26,512 .... 26,699
6. 1990 ...... X X X X X X X X X X X X ..... 13,988 ..... 23,714 ..... 24,311 ..... 25,953 .... 26,366
7. 1991 ...... X X X X X X X X X X X X X X X ..... 12,036 ..... 22,686 ..... 23,444 .... 24,309
8. 1992 ...... X X X X X X X X X X X X X X X X X X ..... 18,672 ..... 37,242 .... 38,911
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ..... 29,285 .... 50,828
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X .... 32,891
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=================================================================
(1) (12) (13)
--------------
Years in Which (11) Number of Number of
Losses Were Claims Claims Closed
Incurred 1995 Closed With Without
Loss Payment Loss Payment
- -----------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ..... ..... 13,510 X X X X X X
2. 1986 ...... ...... 9,782 X X X X X X
3. 1987 ...... ..... 12,490 X X X X X X
4. 1988 ...... ..... 20,368 X X X X X X
5. 1989 ...... ..... 26,988 X X X X X X
6. 1990 ...... ..... 27,078 X X X X X X
7. 1991 ...... ..... 26,396 X X X X X X
8. 1992 ...... ..... 40,324 X X X X X X
9. 1993 ...... ..... 53,156 X X X X X X
10. 1994 ...... ..... 56,605 X X X X X X
11. 1995 ...... ..... 39,067 X X X X X X
- -----------------------------------------------------------------
</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 (2) (3) (4) (5) (6) (7) (8) (9) (10)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... ........ 671 ...... 1,554 ...... 1,090 ........ 898 ........ 788 ........ 741 ......... 31 ......... 23 ........ 23
2. 1986 ...... ...... 1,881 ........ 189 ............ ............ ............ ............ ............ ............ ...........
3. 1987 ...... X X X ...... 5,453 ........ 654 ........ 292 ........ 165 ......... 50 ......... 53 ......... 51 ........ 51
4. 1988 ...... X X X X X X ..... 13,034 ...... 3,152 ...... 2,740 ...... 1,209 ........ 697 ........ 845 ....... 590
5. 1989 ...... X X X X X X X X X ..... 12,994 ...... 7,879 ...... 6,541 ...... 4,747 ...... 3,910 ..... 2,259
6. 1990 ...... X X X X X X X X X X X X ..... 13,382 ...... 6,966 ...... 5,283 ...... 3,996 ..... 3,335
7. 1991 ...... X X X X X X X X X X X X X X X ...... 6,125 ...... 4,939 ...... 4,342 ..... 4,182
8. 1992 ...... X X X X X X X X X X X X X X X X X X ..... 12,642 ...... 4,079 ..... 3,005
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ..... 15,812 ..... 4,043
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X .... 15,821
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=================================
(1)
----------------
Years in Which (11)
Losses Were
Incurred 1995
- ---------------------------------
<S> <C>
1. Prior ..... ............ 15
2. 1986 ...... ...............
3. 1987 ...... ............ 51
4. 1988 ...... ........... 303
5. 1989 ...... ......... 1,707
6. 1990 ...... ......... 2,732
7. 1991 ...... ......... 3,114
8. 1992 ...... ......... 2,251
9. 1993 ...... ......... 2,839
10. 1994 ...... ......... 5,375
11. 1995 ...... ........ 23,627
- ---------------------------------
</TABLE>
75
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
($000 Omitted)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ---------------------------------------------------------------
Were Earned Direct and Ceded Net (5) (6) (7) (8)
and Losses Assumed (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------------
<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 ............... ........... ................ ............... ............. ............. .............
8. 1992 ............... ........... ................ ............... ............. ............. .............
9. 1993 ............... ........... ................ ............... ............. ............. .............
10. 1994 ............ 63 ........ 45 ............. 18 ........... 152 ......... 110 .......... 11 ........... 8
11. 1995 ........... 571 ....... 335 ............ 236 ........... 452 ......... 309 .......... 49 .......... 34
- -------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ........... 604 ......... 419 .......... 60 .......... 42
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================
(1) (12)
Years in -----------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------------
<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 .............. ............ 6 ........... 51 ........... 14
11. 1995 .............. ........... 16 .......... 174 .......... 134
- --------------------------------------------------------------------------------------
12. TOTALS .............. ........... 22 .......... 225 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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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 ............ .............. ........... 15 .......... 10 .............. ........... .......... 1 .......... 1
11. 1995 ........ 146 ........... 95 .......... 100 .......... 59 ........... 15 ........ 10 .......... 9 .......... 7
- ----------------------------------------------------------------------------------------------------------------------------
12. TOTALS ........ 146 ........... 95 .......... 115 .......... 69 ........... 15 ........ 10 ......... 10 .......... 8
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- --------------------------------------------------------------------------
<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 .............. ............. .......... 5 ..............
11. 1995 .............. ............. ......... 99 ........... 10
- --------------------------------------------------------------------------
12. TOTALS .............. ............. ........ 104 ........... 10
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME
EXPENSES INCURRED (Incurred/Premiums Earned) VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .............. ............. ............... ............. ............... ............. ............... ...............
8. 1992 .............. ............. ............... ............. ............... ............. ............... ...............
9. 1993 .............. ............. ............... ............. ............... ............. ............... ...............
10. 1994 .......... 185 ......... 129 ............ 56 ....... 293.7 ......... 286.7 ....... 311.1 ............... ...............
11. 1995 .......... 790 ......... 517 ........... 273 ....... 138.4 ......... 154.3 ....... 115.7 ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -----------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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 ......... 100.0 .......... 5 ...............
11. 1995 ......... 100.0 ......... 92 ............. 7
- ----------------------------------------------------------
12. TOTALS X X X ......... 97 ............. 7
- ----------------------------------------------------------
</TABLE>
76
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1B
PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
($000 Omitted)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------
Were Earned Direct and Ceded Net (5) (6) (7) (8)
and Losses Assumed (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------------
<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 ............... ........... ................ ............... ............. ............. .............
8. 1992 ............... ........... ................ ............... ............. ............. .............
9. 1993 ............... ........... ................ ............... ............. ............. .............
10. 1994 ............... ........... ................ ............... ............. ............. .............
11. 1995 ............... ........... ................ ............... ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............... ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=====================================================================================
(1) (12)
Years in ----------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Less Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- -------------------------------------------------------------------------------------
<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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding
Unpaid Unpaid Direct and
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 LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME
EXPENSES INCURRED (Incurred/Premiums Earned) VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .............. ............. ............... ............. ............... ............. ............... ...............
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>
===========================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -----------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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>
77
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1C
COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
($000 Omitted)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ----------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<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 ............... ........... ................ ............... ............. ............. .............
8. 1992 ............... ........... ................ ............... ............. ............. .............
9. 1993 ............... ........... ................ ............... ............. ............. .............
10. 1994 ............... ........... ................ ............... ............. ............. .............
11. 1995 ........... 189 ........ 25 ............ 164 ............ 34 ........... 4 ............. .............
- --------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............ 34 ........... 4 ............. ............
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=============================================================================
(1)
Years in ------------------------------------------- (12)
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- -----------------------------------------------------------------------------
<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 ........... 42 ........... 53
- -----------------------------------------------------------------------------
12. TOTALS .............. ........... 12 ........... 42 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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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 ......... 90 ........... 12 ........... 31 ........... 4 .............. ........... ............ ............
- ----------------------------------------------------------------------------------------------------------------------------
12. TOTALS ......... 90 ........... 12 ........... 31 ........... 4 .............. ........... ............ ............
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- --------------------------------------------------------------------------
<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 .............. ............. ........ 105 ........... 34
- --------------------------------------------------------------------------
12. TOTALS .............. ............. ........ 105 ........... 34
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .............. ............. ............... ............. ............... ............. ............... ...............
8. 1992 .............. ............. ............... ............. ............... ............. ............... ...............
9. 1993 .............. ............. ............... ............. ............... ............. ............... ...............
10. 1994 .............. ............. ............... ............. ............... ............. ............... ...............
11. 1995 .......... 167 .......... 20 ........... 147 ........ 88.4 .......... 80.0 ........ 89.6 ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -----------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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 ......... 100.0 ........ 105 ...............
- ----------------------------------------------------------
12. TOTALS X X X ........ 105 ...............
- ----------------------------------------------------------
</TABLE>
78
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
($000 Omitted)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------------
<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 ............... ........... ................ ............... ............. ............. .............
8. 1992 ............... ........... ................ ............... ............. ............. .............
9. 1993 ............... ........... ................ ............... ............. ............. .............
10. 1994 ............... ........... ................ ............... ............. ............. .............
11. 1995 ............. 6 ......... 1 .............. 5 ............. 1 ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............. 1 ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================
(1) (12)
Years in -----------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- ------------------------------------------------------------------------------------
<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 .............. .............. ............ 1 ............ 4
- ------------------------------------------------------------------------------------
12. TOTALS .............. .............. ............ 1 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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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 .......... 1 .............. ............ 1 ............. .............. ........... ............ ............
- ----------------------------------------------------------------------------------------------------------------------------
12. TOTALS .......... 1 .............. ............ 1 ............. .............. ........... ............ ............
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- --------------------------------------------------------------------------
<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 .............. ............. .......... 2 ............ 3
- --------------------------------------------------------------------------
12. TOTALS .............. ............. .......... 2 ............ 3
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .............. ............. ............... ............. ............... ............. ............... ...............
8. 1992 .............. ............. ............... ............. ............... ............. ............... ...............
9. 1993 .............. ............. ............... ............. ............... ............. ............... ...............
10. 1994 .............. ............. ............... ............. ............... ............. ............... ...............
11. 1995 ............ 3 ............. ............. 3 ........ 50.0 ............... ........ 60.0 ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -----------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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 ......... 100.0 .......... 2 ...............
- ----------------------------------------------------------
12. TOTALS X X X .......... 2 ...............
- ----------------------------------------------------------
</TABLE>
79
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1E - COMMERCIAL MULTIPLE PERIL
($000 Omitted)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ---------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<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 ............... ........... ................ ............... ............. ............. .............
8. 1992 ........... 131 ........ 87 ............. 44 ............ 35 .......... 20 ........... 9 ........... 8
9. 1993 ......... 1,639 ..... 1,209 ............ 430 ........... 496 ......... 361 ......... 179 ......... 124
10. 1994 ......... 3,792 ..... 2,898 ............ 894 ......... 1,801 ....... 1,367 ......... 415 ......... 319
11. 1995 ......... 6,766 ..... 4,790 .......... 1,976 ........... 939 ......... 555 ......... 143 .......... 96
- -------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ......... 3,271 ....... 2,303 ......... 746 ......... 547
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
============================================================================
(1)
Years in ------------------------------------------------ (12)
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior .............. ............ 1 ............ 1 X X X
2. 1986 .............. .............. .............. ..............
3. 1987 .............. .............. .............. ..............
4. 1988 .............. .............. .............. ..............
5. 1989 .............. .............. .............. ..............
6. 1990 .............. .............. .............. ..............
7. 1991 .............. .............. .............. ..............
8. 1992 .............. ........... 19 ........... 35 ............ 5
9. 1993 .............. ........... 53 .......... 243 ........... 60
10. 1994 .............. ........... 64 .......... 594 .......... 134
11. 1995 .............. ........... 21 .......... 452 .......... 153
- ----------------------------------------------------------------------------
12. TOTALS .............. .......... 158 ........ 1,325 X X X
- ----------------------------------------------------------------------------
</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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .......... 6 ............ 3 ............ 7 ........... 4 .............. ........... .......... 9 .......... 6
2. 1986 ............ .............. .............. ............. .............. ........... ............ ............
3. 1987 ............ .............. .............. ............. .............. ........... ............ ............
4. 1988 ............ .............. .............. ............. .............. ........... ............ ............
5. 1989 ............ .............. .............. ............. .............. ........... ............ ............
6. 1990 ............ .............. .............. ............. .............. ........... ............ ............
7. 1991 ............ .............. .............. ............. .............. ........... ............ ............
8. 1992 ......... 32 ........... 22 .............. ............. ............ 7 ......... 5 ............ ............
9. 1993 ......... 81 ........... 55 .............. ............. ........... 15 ........ 10 ............ ............
10. 1994 ........ 317 .......... 249 .......... 729 ......... 589 ........... 50 ........ 40 ......... 75 ......... 59
11. 1995 ...... 1,001 .......... 704 ........ 1,972 ....... 1,548 .......... 138 ........ 97 ........ 205 ........ 158
- --------------------------------------------------------------------------------------------------------------------------
12. TOTALS ...... 1,437 ........ 1,033 ........ 2,708 ....... 2,141 .......... 210 ....... 152 ........ 289 ........ 223
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior .............. .......... 20 ......... 29 ............ 1
2. 1986 .............. ............. ............ ..............
3. 1987 .............. ............. ............ ..............
4. 1988 .............. ............. ............ ..............
5. 1989 .............. ............. ............ ..............
6. 1990 .............. ............. ............ ..............
7. 1991 .............. ............. ............ ..............
8. 1992 .............. ............. ......... 12 ............ 1
9. 1993 .............. ............. ......... 31 ............ 3
10. 1994 .............. ............. ........ 234 ........... 22
11. 1995 .............. ............. ........ 809 ........... 64
- --------------------------------------------------------------------------
12. TOTALS .............. .......... 20 ...... 1,115 ........... 91
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .............. ............. ............... ............. ............... ............. ............... ...............
8. 1992 .......... 102 .......... 55 ............ 47 ........ 77.9 .......... 63.2 ....... 106.8 ............... ...............
9. 1993 .......... 824 ......... 550 ........... 274 ........ 50.3 .......... 45.5 ........ 63.7 ............... ...............
10. 1994 ........ 3,450 ....... 2,623 ........... 827 ........ 91.0 .......... 90.5 ........ 92.5 ............... ...............
11. 1995 ........ 4,420 ....... 3,158 ......... 1,262 ........ 65.3 .......... 65.9 ........ 63.9 ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X ............... ...............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ----------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X .......... 6 ............ 23
2. 1986 ............... ............ ...............
3. 1987 ............... ............ ...............
4. 1988 ............... ............ ...............
5. 1989 ............... ............ ...............
6. 1990 ............... ............ ...............
7. 1991 ............... ............ ...............
8. 1992 ............... ......... 10 ............. 2
9. 1993 ......... 100.0 ......... 26 ............. 5
10. 1994 ......... 100.0 ........ 208 ............ 26
11. 1995 ......... 100.0 ........ 721 ............ 88
- ----------------------------------------------------------
12. TOTALS X X X ........ 971 ........... 144
- ----------------------------------------------------------
</TABLE>
80
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1F - SECTION 1
MEDICAL MALPRACTICE - OCCURRENCE
($000 Omitted)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------------
<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 ............... ........... ................ ............... ............. ............. .............
8. 1992 ............... ........... ................ ............... ............. ............. .............
9. 1993 ............... ........... ................ ............... ............. ............. .............
10. 1994 ............... ........... ................ ............... ............. ............. .............
11. 1995 ............... ........... ................ ............... ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............... ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================
(1) (12)
Years in ------------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur Received Payments + 7 - 8 + 10) Assumed
- ------------------------------------------------------------------------------------
<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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
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 LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .............. ............. ............... ............. ............... ............. ............... ...............
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>
==========================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -----------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1F - SECTION 2
MEDICAL MALPRACTICE - CLAIMS-MADE
($000 Omitted)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ----------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------------
<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 ............... ........... ................ ............... ............. ............. .............
8. 1992 ............... ........... ................ ............... ............. ............. .............
9. 1993 ............... ........... ................ ............... ............. ............. .............
10. 1994 ............... ........... ................ ............... ............. ............. .............
11. 1995 ............... ........... ................ ............... ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............... ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================
(1) (12)
Years in --------------------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- ------------------------------------------------------------------------------------
<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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding
Unpaid Unpaid Direct and
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 LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME
EXPENSES INCURRED (Incurred/Premiums Earned) VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .............. ............. ............... ............. ............... ............. ............... ...............
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>
==========================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -----------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1G - SPECIAL LIABILITY
(OCEAN, MARINE, AIRCRAFT (ALL PERILS),
BOILER AND MACHINERY)
($000 Omitted)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- -------------------------------------------------------------------------------------------------------------------------
<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 ............... ........... ................ ............... ............. ............. .............
8. 1992 ............... ........... ................ ............... ............. ............. .............
9. 1993 ............... ........... ................ ............... ............. ............. .............
10. 1994 ............... ........... ................ ............... ............. ............. .............
11. 1995 ............... ........... ................ ............... ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............... ............. ............. .............
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================
(1) (12)
Years in ----------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------------
<S> <C> <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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
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 EXPENSES INCURRED LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME
(Incurred/Premiums Earned) VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .............. ............. ............... ............. ............... ............. ............... ...............
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>
==========================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -----------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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>
83
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1H - SECTION 1
OTHER LIABILITY - OCCURRENCE
($000 Omitted)
<TABLE>
<CAPTION>
========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -----------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ------------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ............ 11 .......... 6 ............. 23 .......... 16
2. 1986 ........... 203 ............ ...... 203 ........... 143 ............. ................. ..............
3. 1987 ........... 194 ............ ...... 194 ............ 74 ............. ................. ..............
4. 1988 ............ 25 ............ ....... 25 ................ ............. ................. ..............
5. 1989 ................ ............ ........... ................ ............. ................. ..............
6. 1990 ................ ............ ........... ................ ............. ................. ..............
7. 1991 ................ ............ ........... ................ ............. ................. ..............
8. 1992 ................ ............ ........... ................ ............. ................. ..............
9. 1993 ................ ............ ........... ................ ............. ................. ..............
10. 1994 ................ ............ ........... ................ ............. ................. ..............
11. 1995 ..........1,848 .......1,449 ...... 399 ............. 4 .......... 3 ............. 12 ........... 9
- ------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ........... 232 .......... 9 ............. 35 .......... 25
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in -------------------------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............. 1 ............. 13 X X X
2. 1986 ................ ............ 69 ............ 212 .......... 574
3. 1987 ................ ............ 14 ............. 88 .......... 300
4. 1988 ................ ............... ................ ..............
5. 1989 ................ ............... ................ ..............
6. 1990 ................ ............... ................ ..............
7. 1991 ................ ............... ................ ..............
8. 1992 ................ ............... ................ ..............
9. 1993 ................ ............... ................ ..............
10. 1994 ................ ............... ................ ..............
11. 1995 ................ ............. 4 .............. 8 ........... 34
- --------------------------------------------------------------------------------
12. TOTALS ................ ............ 88 ............ 321 X X X
- --------------------------------------------------------------------------------
</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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ............ 296 ......... 158 ........ 10 .............. 9 .......... 29 .............. 16 ........... 12 ........... 6
2. 1986 ................ ............. ........... ................ ............. ................. .............. .............
3. 1987 ................ ............. ........... ................ ............. ................. .............. .............
4. 1988 ................ ............. ........... ................ ............. ................. .............. .............
5. 1989 ................ ............. ........... ................ ............. ................. .............. .............
6. 1990 ................ ............. ........... ................ ............. ................. .............. .............
7. 1991 ................ ............. ........... ................ ............. ................. .............. .............
8. 1992 ................ ............. ........... ................ ............. ................. .............. .............
9. 1993 ................ ............. ........... ................ ............. ................. .............. .............
10. 1994 ................ ............. ........... ................ ............. ................. .............. .............
11. 1995 ............ 190 ......... 149 ..... 1,084 ............ 852 .......... 44 .............. 34 .......... 110 .......... 85
- -----------------------------------------------------------------------------------------------------------------------------------
12. TOTALS............ 486 ......... 307 ..... 1,094 ............ 861 .......... 73 .............. 50 .......... 122 .......... 91
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............ 40 ............ 198 ........... 13
2. 1986 ................ ............... ................ ..............
3. 1987 ................ ............... ................ ..............
4. 1988 ................ ............... ................ ..............
5. 1989 ................ ............... ................ ..............
6. 1990 ................ ............... ................ ..............
7. 1991 ................ ............... ................ ..............
8. 1992 ................ ............... ................ ..............
9. 1993 ................ ............... ................ ..............
10. 1994 ................ ............... ................ ..............
11. 1995 ................ ............... ............ 308 ........... 29
- -------------------------------------------------------------------------------
12. TOTALS ................ ............ 40 ............ 506 ........... 42
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ............ 212 ............. ....... 212 .......... 104.4 ............. ........... 104.4 .............. .............
3. 1987 ............. 88 ............. ........ 88 ........... 45.4 ............. ............ 45.4 .............. .............
4. 1988 ................ ............. ........... ................ ............. ................. .............. .............
5. 1989 ................ ............. ........... ................ ............. ................. .............. .............
6. 1990 ................ ............. ........... ................ ............. ................. .............. .............
7. 1991 ................ ............. ........... ................ ............. ................. .............. .............
8. 1992 ................ ............. ........... ................ ............. ................. .............. .............
9. 1993 ................ ............. ........... ................ ............. ................. .............. .............
10. 1994 ................ ............. ........... ................ ............. ................. .............. .............
11. 1995 .......... 1,448 ....... 1,132 ....... 316 ........... 78.4 ........ 78.1 ............ 79.2 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X ........... 139 ............. 59
2. 1986 ................ ............... ................
3. 1987 ................ ............... ................
4. 1988 ................ ............... ................
5. 1989 ................ ............... ................
6. 1990 ................ ............... ................
7. 1991 ................ ............... ................
8. 1992 ................ ............... ................
9. 1993 ................ ............... ................
10. 1994 ................ ............... ................
11. 1995 .......... 100.0 ........... 273 ............. 35
- ---------------------------------------------------------------
12. TOTALS X X X ........... 412 ............. 94
- ---------------------------------------------------------------
</TABLE>
84
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1H - SECTION 2
OTHER LIABILITY - CLAIMS-MADE
($000 Omitted)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums -------------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<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 ................ ............. ........... ................ ............. ................. ..............
8. 1992 ................ ............. ........... ................ ............. ................. ..............
9. 1993 ................ ............. ........... ................ ............. ................. ..............
10. 1994 ................ ............. ........... ................ ............. ................. ..............
11. 1995 ................ ............. ........... ................ ............. ................. ..............
- --------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ................ ............. ................. ..............
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in -------------------------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ................ ............. ........... ................ ............. ................. .............. .............
2. 1986 ................ ............. ........... ................ ............. ................. .............. .............
3. 1987 ................ ............. ........... ................ ............. ................. .............. .............
4. 1988 ................ ............. ........... ................ ............. ................. .............. .............
5. 1989 ................ ............. ........... ................ ............. ................. .............. .............
6. 1990 ................ ............. ........... NONE ............. ................. .............. .............
7. 1991 ................ ............. ........... ................ ............. ................. .............. .............
8. 1992 ................ ............. ........... ................ ............. ................. .............. .............
9. 1993 ................ ............. ........... ................ ............. ................. .............. .............
10. 1994 ................ ............. ........... ................ ............. ................. .............. .............
11. 1995 ................ ............. ........... ................ ............. ................. .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS................ ............. ........... ................ ............. ................. .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... ................ ..............
2. 1986 ................ ............... ................ ..............
3. 1987 ................ ............... ................ ..............
4. 1988 ................ ............... ................ ..............
5. 1989 ................ ............... ................ ..............
6. 1990 ................ .............NONE............... ..............
7. 1991 ................ ............... ................ ..............
8. 1992 ................ ............... ................ ..............
9. 1993 ................ ............... ................ ..............
10. 1994 ................ ............... ................ ..............
11. 1995 ................ ............... ................ ..............
- --------------------------------------------------------------------------------
12. TOTALS ................ ............... ................ ..............
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ................ ............. ........... ................ ............. ................. .............. .............
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>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1I - SPECIAL PROPERTY (FIRE, ALLIED
LINES, INLAND MARINE, EARTHQUAKE, GLASS, BURGLARY & THEFT)
($000 Omitted)
<TABLE>
<CAPTION>
================================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -------------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------------------
Were Earned Direct and Ceded Net (5) (6) (7) (8)
and Losses Assumed (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ............. 2 ........... 1 ............... 1 ..............
2. 1994 ........ 6,830 ........ 2,078 ...... 4,752 ......... 2,212 ....... 1,259 .............. 91 ........... 55
3. 1995 ........ 6,251 ........ 2,053 ...... 4,198 ........... 998 ......... 411 ............. 112 ........... 33
- --------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X ......... 3,212 ....... 1,671 ............. 204 ........... 88
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in ------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... .............. 2 X X X
2. 1994 ................ ........... 120 .......... 1,109 X X X
3. 1995 ................ ............ 16 ............ 682 X X X
- --------------------------------------------------------------------------------
4. TOTALS ................ ........... 136 .......... 1,793 X X X
- --------------------------------------------------------------------------------
</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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ................ ............. ........... ................ ............. ................. .............. .............
2. 1994 ................ ............. ........ 71 ............. 46 ............. ................. ............ 8 ........... 5
3. 1995 ............ 646 ......... 349 ....... 440 ............ 266 .......... 27 .............. 20 ........... 45 .......... 29
- ------------------------------------------------------------------------------------------------------------------------------------
4. TOTALS............ 646 ......... 349 ....... 511 ............ 312 .......... 27 .............. 20 ........... 53 .......... 34
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... ................ ..............
2. 1994 ................ ............... ............. 28 ........... 10
3. 1995 ................ ............. 5 ............ 499 .......... 108
- -------------------------------------------------------------------------------
4. TOTALS ................ ............. 5 ............ 527 .......... 118
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .......... 2,502 ........ 1,365 ...... 1,137 ....... 36.6 .......... 65.7 ............ 23.9 .............. .............
3. 1995 .......... 2,288 ........ 1,108 ...... 1,180 ....... 36.6 .......... 54.0 ............ 28.1 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X X X X X X X X X X .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X ............... ................
2. 1994 .......... 100.0 ............ 25 .............. 3
3. 1995 .......... 100.0 ........... 471 ............. 28
- ---------------------------------------------------------------
4. TOTALS X X X ........... 496 ............. 31
- ---------------------------------------------------------------
</TABLE>
86
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 1I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY & THEFT)
( 000 Omitted )
(For inhouse use only - Do not submit to NAIC)
<TABLE>
<CAPTION>
====================================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -----------------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ................ ............. ................. ..............
2. 1986 .......... 4,390 ............. ..... 4,390 .......... 1,067 ............. ................. ..............
3. 1987 .......... 4,980 .......... 49 ..... 4,931 .......... 1,153 ............. ................. ..............
4. 1988 .......... 5,146 .......... 45 ..... 5,101 .......... 1,249 ............. ................. ..............
5. 1989 .......... 5,362 ......... 216 ..... 5,146 .......... 1,219 .......... 37 ............... 3 ............ 2
6. 1990 .......... 5,579 ......... 525 ..... 5,054 .......... 1,193 .......... 62 ............... 6 ............ 5
7. 1991 .......... 5,532 ......... 612 ..... 4,920 .......... 1,303 ......... 235 .............. 32 ........... 23
8. 1992 .......... 5,379 ......... 729 ..... 4,650 .......... 2,021 ......... 292 .............. 24 ........... 19
9. 1993 .......... 5,917 ....... 1,567 ..... 4,350 ............ 963 ......... 243 .............. 15 ........... 13
10. 1994 .......... 6,830 ....... 2,078 ..... 4,752 .......... 2,212 ....... 1,259 .............. 91 ........... 55
11. 1995 .......... 6,251 ....... 2,053 ..... 4,198 ............ 998 ......... 411 ............. 112 ........... 33
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X .......... 3,212 ....... 1,671 ............. 204 ........... 88
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in -------------------------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... ................ X X X
2. 1986 ................ ........... 163 .......... 1,230 X X X
3. 1987 ................ ........... 119 .......... 1,272 X X X
4. 1988 ................ ............ 47 .......... 1,296 X X X
5. 1989 ................ ............ 54 .......... 1,237 X X X
6. 1990 ................ ............ 35 .......... 1,167 X X X
7. 1991 ................ ............ 41 .......... 1,118 X X X
8. 1992 ................ ............ 95 .......... 1,829 X X X
9. 1993 ................ ........... 107 .............829 X X X
10. 1994 ................ ........... 120 .......... 1,109 X X X
11. 1995 ................ ............ 16 ............ 682 X X X
- --------------------------------------------------------------------------------
12. TOTALS ................ ........... 136 .......... 1,793 X X X
- --------------------------------------------------------------------------------
</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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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 ................ ............. ........ 71 ............. 46 ............. ................. ............ 8 ........... 5
11. 1995 ............ 646 ......... 349 ....... 440 ............ 266 .......... 27 .............. 20 ........... 45 .......... 29
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS............ 646 ......... 349 ....... 511 ............ 312 .......... 27 .............. 20 ........... 53 .......... 34
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<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 ................ ............... ............. 28 ........... 10
11. 1995 ................ ............. 5 ............ 499 .......... 108
- -------------------------------------------------------------------------------
12. TOTALS ................ ............. 5 ............ 527 .......... 118
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .......... 1,230 ............. ..... 1,230 ........... 28.0 ............. ............ 28.0 .............. .............
3. 1987 .......... 1,272 ............. ..... 1,272 ........... 25.5 ............. ............ 25.8 .............. .............
4. 1988 .......... 1,296 ............. ..... 1,296 ........... 25.2 ............. ............ 25.4 .............. .............
5. 1989 .......... 1,276 .......... 39 ..... 1,237 ........... 23.8 ........ 18.1 ............ 24.0 .............. .............
6. 1990 .......... 1,234 .......... 67 ..... 1,167 ........... 22.1 ........ 12.8 ............ 23.1 .............. .............
7. 1991 .......... 1,377 ......... 259 ..... 1,118 ........... 24.9 ........ 42.3 ............ 22.7 .............. .............
8. 1992 .......... 2,133 ......... 304 ..... 1,829 ........... 39.7 ........ 41.7 ............ 39.3 .............. .............
9. 1993 .......... 1,085 ......... 256 ....... 829 ........... 18.3 ........ 16.3 ............ 19.1 .............. .............
10. 1994 .......... 2,502 ....... 1,365 ..... 1,137 ........... 36.6 ........ 65.7 ............ 23.9 .............. .............
11. 1995 .......... 2,288 ....... 1,108 ..... 1,180 ........... 36.6 ........ 54.0 ............ 28.1 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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 .......... 100.0 ............... ................
10. 1994 .......... 100.0 ............ 25 .............. 3
11. 1995 .......... 100.0 ........... 471 ............. 28
- ---------------------------------------------------------------
12. TOTALS X X X ........... 496 ............. 31
- ---------------------------------------------------------------
</TABLE>
86B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
($000 Omitted)
<TABLE>
<CAPTION>
================================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -------------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ............... ............. ................. ..............
2. 1994 ........ 1,284 ......... 937 ........ 347 ......... 1,158 ......... 836 ............. 205 .......... 149
3. 1995 ........ 2,471 ....... 1,672 ........ 799 ......... 1,445 ......... 973 ............. 244 .......... 170
- --------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X ......... 2,603 ....... 1,809 ............. 449 .......... 319
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in ------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... ................ X X X
2. 1994 ................ ............ 12 ............ 390 ............ 571
3. 1995 ................ ............ 44 ............ 590 ............ 903
- --------------------------------------------------------------------------------
4. TOTALS ................ ............ 56 ............ 980 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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ................ ............. ........... ................ ............. ................. .............. .............
2. 1994 ............. 81 .......... 59 ........... ................ ............. ................. .............. .............
3. 1995 ............ 488 ......... 337 ....... 104 ............. 57 .......... 32 .............. 21 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
4. TOTALS............ 569 ......... 396 ....... 104 ............. 57 .......... 32 .............. 21 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... ................ ..............
2. 1994 ................ ............... ............. 22 ............ 8
3. 1995 ................ ............... ............ 209 .......... 240
- -------------------------------------------------------------------------------
4. TOTALS ................ ............... ............ 231 .......... 248
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ......... 1,456 ........ 1,044 ...... 412 ........ 113.4 ......... 111.4 ......... 118.7 .............. .............
3. 1995 ......... 2,357 ........ 1,558 ...... 799 ........ 95.4 .......... 93.2 ......... 100.0 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X X X X X X X X X X .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X ............... ................
2. 1994 .......... 100.0 ............ 22 ................
3. 1995 .......... 100.0 ........... 198 ............. 11
- ---------------------------------------------------------------
4. TOTALS X X X ........... 220 ............. 11
- ---------------------------------------------------------------
</TABLE>
87
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
( 000 Omitted )
(For inhouse use only - Do not submit to NAIC)
<TABLE>
<CAPTION>
==========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums -------------------------------------------------------------------
Were Earned Direct and Ceded Net (5) (6) (7) (8)
and Losses Assumed (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<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 ................ ............ ............ ................ ............. ................. ..............
8. 1992 ................ ............ ............ ................ ............. ................. ..............
9. 1993 ............. 27 .......... 15 ........ 12 ............. 38 .......... 25 ............... 3 ............ 3
10. 1994 .......... 1,284 ......... 937 ....... 347 .......... 1,158 ......... 836 ............. 205 .......... 149
11. 1995 ...........2,471 ........1,672 ....... 799 .......... 1,445 ......... 973 ............. 244 .......... 170
- --------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X .......... 2,603 ....... 1,809 ............. 449 .......... 319
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in -------------------------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<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 ................ ............... ............. 13 ........... 19
10. 1994 ................ ............ 12 ............ 390 .......... 571
11. 1995 ................ ............ 44 ............ 590 .......... 903
- --------------------------------------------------------------------------------
12. TOTALS ................ ............ 56 ............ 980 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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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 ............. 81 .......... 59 ........... ................ ............. ................. .............. .............
11. 1995 ............ 488 ......... 337 ....... 104 ............. 57 .......... 32 .............. 21 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS............ 569 ......... 396 ....... 104 ............. 57 .......... 32 .............. 21 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<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 ................ ............... ............. 22 ............ 8
11. 1995 ................ ............... ............ 209 .......... 240
- -------------------------------------------------------------------------------
12. TOTALS ................ ............... ............ 231 .......... 248
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ................ ............. ........... ................ ............. ................. .............. .............
8. 1992 ................ ............. ........... ................ ............. ................. .............. .............
9. 1993 ............. 41 .......... 28 ........ 13 .......... 151.9 ....... 186.7 ........... 108.3 .............. .............
10. 1994 .......... 1,456 ....... 1,044 ....... 412 .......... 113.4 ....... 111.4 ........... 118.7 .............. .............
11. 1995 .......... 2,357 ....... 1,558 ....... 799 ........... 95.4 ........ 93.2 ........... 100.0 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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 .......... 100.0 ............... ................
10. 1994 .......... 100.0 ............ 22 ................
11. 1995 .......... 100.0 ........... 198 ............. 11
- ---------------------------------------------------------------
12. TOTALS X X X ........... 220 ............. 11
- ---------------------------------------------------------------
</TABLE>
87B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1K - FIDELITY / SURETY
($000 Omitted)
<TABLE>
<CAPTION>
================================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -------------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ............... ............. ................. ..............
2. 1994 .............. .............. ............ ............... ............. ................. ..............
3. 1995 ............ 6 ............ 1 .......... 5 ............... ............. ................. ..............
- --------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X ............... ............. ................. ..............
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in ------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ................ ............. ........... ................ ............. ................. .............. .............
2. 1994 ................ ............. ........... ................ ............. ................. .............. .............
3. 1995 ................ ............. ......... 3 ................ ............. ................. .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
4. TOTALS................ ............. ......... 3 ................ ............. ................. .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... ................ ..............
2. 1994 ................ ............... ................ ..............
3. 1995 ................ ............... .............. 3 ..............
- -------------------------------------------------------------------------------
4. TOTALS ................ ............... .............. 3 ..............
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .............. 3 .............. .......... 3 ....... 50.0 ............... ............ 60.0 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X X X X X X X X X X .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X ............... ................
2. 1994 ................ ............... ................
3. 1995 .......... 100.0 ............. 3 ................
- ---------------------------------------------------------------
4. TOTALS X X X ............. 3 ................
- ---------------------------------------------------------------
</TABLE>
88
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 1K - FIDELITY / SURETY
( 000 Omitted )
(For inhouse use only - Do not submit to NAIC)
<TABLE>
<CAPTION>
====================================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -----------------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ................ ............. ........... ................ ............. ................. ..............
8. 1992 ................ ............. ........... ................ ............. ................. ..............
9. 1993 ................ ............. ........... ................ ............. ................. ..............
10. 1994 ................ ............. ........... ................ ............. ................. ..............
11. 1995 .............. 6 ........... 1 ......... 5 ................ ............. ................. ..............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ................ ............. ................. ..............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in -------------------------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<S> <C> <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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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 ................ ............. ......... 3 ................ ............. ................. .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS................ ............. ......... 3 ................ ............. ................. .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<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 ................ ............... ...............3 ..............
- --------------------------------------------------------------------------------
12. TOTALS ................ ............... ...............3 ..............
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ................ ............. ........... ................ ............. ................. .............. .............
8. 1992 ................ ............. ........... ................ ............. ................. .............. .............
9. 1993 ................ ............. ........... ................ ............. ................. .............. .............
10. 1994 ................ ............. ........... ................ ............. ................. .............. .............
11. 1995 ...............3 ............. ..........3 ........... 50.0 ............. ............ 60.0 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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 .......... 100.0 ............. 3 ................
- ---------------------------------------------------------------
12. TOTALS X X X ............. 3 ................
- ---------------------------------------------------------------
</TABLE>
88B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1L - OTHER
(INCLUDING CREDIT, ACCIDENT AND HEALTH)
($000 Omitted)
<TABLE>
<CAPTION>
================================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -------------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ........... 416 .......... 54 .............. 38 .............5
2. 1994 ....... 83,396 ....... 10,878 ..... 72,518 ........ 55,259 ....... 7,208 ............. 516 ........... 67
3. 1995 ....... 93,778 ....... 12,232 ..... 81,546 ........ 40,376 ....... 5,267 ............. 213 ........... 28
- --------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X ........ 96,051 ...... 12,529 ............. 767 .......... 100
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in ------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated NetPaid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............ 2 ............ 397 X X X
2. 1994 ................ ........... 134 ......... 48,634 X X X
3. 1995 ................ ........... 122 ......... 35,416 X X X
- --------------------------------------------------------------------------------
4. TOTALS ................ ........... 258 ......... 84,447 X X X
- --------------------------------------------------------------------------------
</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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ............. 58 ........... 8 ........... ................ .......... 11 ............... 1 .............. .............
2. 1994 ............ 346 .......... 45 ........ 58 .............. 7 ......... 108 .............. 14 ........... 57 ........... 7
3. 1995 .......... 9,255 ....... 1,207 .... 10,461 .......... 1,365 .......... 53 ............... 7 .......... 173 .......... 23
- ------------------------------------------------------------------------------------------------------------------------------------
4. TOTALS.......... 9,659 ....... 1,260 .... 10,519 .......... 1,372 ......... 172 .............. 22 .......... 230 .......... 30
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... ............. 60 ............ 7
2. 1994 ................ ............. 1 ............ 497 .......... 151
3. 1995 ................ ............ 49 ......... 17,389 ........ 1,300
- -------------------------------------------------------------------------------
4. TOTALS ................ ............ 50 ......... 17,946 ........ 1,458
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ......... 56,479 ........ 7,348 ..... 49,131 ....... 67.7 .......... 67.5 ............ 67.8 .............. .............
3. 1995 ......... 60,702 ........ 7,897 ..... 52,805 ....... 64.7 .......... 64.6 ............ 64.8 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X X X X X X X X X X .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X ............ 50 ............. 10
2. 1994 .......... 100.0 ........... 352 ............ 145
3. 1995 .......... 100.0 ........ 17,144 ............ 245
- ---------------------------------------------------------------
4. TOTALS X X X ........ 17,546 ............ 400
- ---------------------------------------------------------------
</TABLE>
89
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
( 000 Omitted )
(For inhouse use only - Do not submit to NAIC)
<TABLE>
<CAPTION>
=====================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in --------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ---------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ................ ............. ................. ..............
2. 1986 ......... 14,938 ............. .... 14,938 .......... 8,569 ............. ............... 2 ..............
3. 1987 ......... 14,589 ............. .... 14,589 ......... 10,532 ............. ............. 120 ..............
4. 1988 ......... 18,896 ............. .... 18,896 ......... 14,575 ............. ............. 122 ..............
5. 1989 ......... 29,763 ............. .... 29,763 ......... 21,280 ............. ............. 129 ..............
6. 1990 ......... 31,039 ............. .... 31,039 ......... 21,237 ......... (8) ............. 230 ........... 1
7. 1991 ......... 27,497 ............. .... 27,497 ......... 20,055 ........ (38) ............. 375 ........... 4
8. 1992 ......... 46,152 ............. .... 46,152 ......... 32,754 ........ 253 ............. 475 ........... 28
9. 1993 ......... 76,971 ...... 10,040 .... 66,931 ......... 53,378 ...... 6,962 ............. 516 ........... 67
10. 1994 ......... 83,396 ...... 10,878 .... 72,518 ......... 55,259 ...... 7,208 ............. 516 ........... 67
11. 1995 ......... 93,778 ...... 12,232 .... 81,546 ......... 40,376 ...... 5,267 ............. 213 ........... 28
- ---------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ......... 96,051 ..... 12,529 ............. 767 .......... 100
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
===========================================================================
(1) LOSS AND LOSS EXPENSE PAYMENTS (12)
Years in --------------------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... ................ X X X
2. 1986 ................ ............ 46 .......... 8,617 X X X
3. 1987 ................ ........... 150 ......... 10,802 X X X
4. 1988 ................ ........... 159 ......... 14,856 X X X
5. 1989 ................ ........... 187 ......... 21,596 X X X
6. 1990 ................ ........... 237 ......... 21,711 X X X
7. 1991 ................ ........... 351 ......... 20,815 X X X
8. 1992 ................ ........... 223 ......... 33,171 X X X
9. 1993 ................ ........... 175 ......... 47,040 X X X
10. 1994 ................ ........... 134 ......... 48,634 X X X
11. 1995 ................ ........... 122 ......... 35,416 X X X
- ---------------------------------------------------------------------------
12. TOTALS ................ ........... 258 ......... 84,447 X X X
- ---------------------------------------------------------------------------
</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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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 ............. 58 ........... 8 ........... ................ .......... 11 ............... 1 .............. .............
10. 1994 ............ 346 .......... 45 ........ 58 .............. 7 ......... 108 .............. 14 ........... 57 ........... 7
11. 1995 .......... 9,255 ....... 1,207 .... 10,461 .......... 1,365 .......... 53 ............... 7 .......... 173 .......... 23
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS.......... 9,659 ....... 1,260 .... 10,519 .......... 1,372 ......... 172 .............. 22 .......... 230 .......... 30
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................ ............... ................ ..............
2. 1986 ................ ............... ................ ..............
3. 1987 ................ ............... ................ ..............
4. 1988 ................ ............... ................ ..............
5. 1989 ................ ............... ................ ..............
6. 1990 ................ ............... ................ ..............
7. 1991 ................ ............... ................ ..............
8. 1992 ................ ............... ................ ..............
9. 1993 ................ ............... ............. 60 ............ 7
10. 1994 ................ ............. 1 ............ 497 .......... 151
11. 1995 ................ ............ 49 ......... 17,389 ........ 1,300
- -------------------------------------------------------------------------------
12. TOTALS ................ ............ 50 ......... 17,946 ........ 1,458
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .......... 8,617 ............. ..... 8,617 ........... 57.7 ............. ............ 57.7 .............. .............
3. 1987 ......... 10,802 ............. .... 10,802 ........... 74.0 ............. ............ 74.0 .............. .............
4. 1988 ......... 14,856 ............. .... 14,856 ........... 78.6 ............. ............ 78.6 .............. .............
5. 1989 ......... 21,596 ............. .... 21,596 ........... 72.6 ............. ............ 72.6 .............. .............
6. 1990 ......... 21,704 ......... (7) .... 21,711 ........... 69.9 ............. ............ 69.9 .............. .............
7. 1991 ......... 20,781 ........ (34) .... 20,815 ........... 75.6 ............. ............ 75.7 .............. .............
8. 1992 ......... 33,452 ........ 281 .... 33,171 ........... 72.5 ............. ............ 71.9 .............. .............
9. 1993 ......... 54,138 ...... 7,038 .... 47,100 ........... 70.3 ........ 70.1 ............ 70.4 .............. .............
10. 1994 ......... 56,479 ...... 7,348 .... 49,131 ........... 67.7 ........ 67.5 ............ 67.8 .............. .............
11. 1995 ......... 60,702 ...... 7,897 .... 52,805 ........... 64.7 ........ 64.6 ............ 64.8 .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X X X X X X X X X X .............. .............
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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 .......... 100.0 ............ 50 ............. 10
10. 1994 .......... 100.0 ........... 352 ............ 145
11. 1995 .......... 100.0 ........ 17,144 ............ 245
- ---------------------------------------------------------------
12. TOTALS X X X ........ 17,546 ............ 400
- ---------------------------------------------------------------
</TABLE>
89B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1M - INTERNATIONAL
($000 Omitted)
<TABLE>
<CAPTION>
=================================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------------
<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 ............... ............... ............... ............... ............... ............... ...............
8. 1992 ............... ............... ............... ............... ............... ............... ...............
9. 1993 ............... ............... ............... ............... ............... ............... ...............
10. 1994 ............... ............... ............... ............... ............... ............... ...............
11. 1995 ............... ............... ............... ............... ............... ............... ...............
- ----------------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............... ............... ............... ...............
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==========================================================================
(1) (12)
Years in --------------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- --------------------------------------------------------------------------
<S> <C> <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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........... ........... ........... ........... ........... ........... ........... ...........
2. 1996 ........... ........... ........... ........... ........... ........... ........... ...........
3. 1997 ........... ........... ........... .
4. 1988 ........... ........... ........... .
5. 1989 ........... ........... ........... .
6. 1990 ........... ........... ........... .
7. 1991 ........... ........... ........... . N O N E
8. 1992 ........... ........... ........... .
9. 1993 ........... ........... ........... .
10. 1994 ........... ........... ........... .
11. 1995 ........... ........... ........... ........... ........... ........... ........... ...........
- --------------------------------------------------------------------------------------------------------------------------
12. TOTALS ........... ........... ........... ........... ........... ........... ........... ...........
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=====================================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ........... ........... ........... ...........
2. 1996 ........... ........... ........... ...........
3. 1997 ........... ........... ........... ...........
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 LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- -------------------------------------------------------------------------------------------------------------------------------
<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 .......... ........... ........... ........... ........... .......... .......... ..........
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>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X .......... ..........
2. 1986 .......... .......... ..........
3. 1987 .......... .......... ..........
4. 1988 .......... .......... ..........
5. 1989 .......... .......... ..........
6. 1990 .......... .......... ..........
7. 1991 .......... .......... ..........
9. 1993 .......... .......... ..........
10. 1994 .......... .......... ..........
11. 1995 .......... .......... ..........
- ---------------------------------------------------------------
12. TOTALS X X X .......... ..........
- ---------------------------------------------------------------
</TABLE>
90
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1N - REINSURANCE A
($000 Omitted)
<TABLE>
<CAPTION>
=================================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ----------------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ----------------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and Ceded
Were Incur. Assumed Ceded Assumed
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ...... 3,264 .......... 1,139 ........... 2,125 ........... 627 .............. 5 ............... 22 ............ 1
2. 1989 ...... 4,206 .......... 2,033 ........... 2,173 ......... 1,978 ............ 472 ............... 44 ........... 12
3. 1990 ...... 3,848 .......... 1,406 ........... 2,442 ......... 1,110 ............ 259 ............... 35 ............ 6
4. 1991 ...... 3,958 .......... 1,930 ........... 2,028 ......... 1,813 ............ 395 ............... 73 ........... 17
5. 1992 ...... 4,207 .......... 1,612 ........... 2,595 ......... 3,954 ............ 725 ............... 81 ........... 24
6. 1993 ..... 10,093 .......... 4,196 ........... 5,897 ......... 4,602 .......... 1,288 .............. 151 ........... 35
7. 1994 ..... 13,688 .......... 7,127 ........... 6,561 ......... 6,872 .......... 2,297 .............. 410 .......... 112
8. 1995 ..... 20,154 .......... 8,540 .......... 11,614 ......... 1,977 ............ 481 ............... 87 ........... 18
- ---------------------------------------------------------------------------------------------------------------------------------
9. TOTALS X X X X X X X X X ........ 22,933 .......... 5,922 .............. 903 .......... 225
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=========================================================================
(1) (12)
Years in ----------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 ............. ......... 202 ............. 845 X X X
2. 1989 ............. ......... 190 ........... 1,728 X X X
3. 1990 ............. ......... 167 ........... 1,047 X X X
4. 1991 ............. ......... 153 ........... 1,627 X X X
5. 1992 ............. ......... 411 ........... 3,697 X X X
6. 1993 ............. ......... 334 ........... 3,764 X X X
7. 1994 ............. ......... 454 ........... 5,327 X X X
8. 1995 ............. ......... 170 ........... 1,735 X X X
- -------------------------------------------------------------------------
9. TOTALS ............. ....... 2,081 .......... 19,770 X X X
- -------------------------------------------------------------------------
</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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ............ 1 ........... .............. .............. .............. .............. ............. .........
2. 1989 .............. ........... .............. .............. .............. .............. ............. .........
3. 1990 .............. ........... .............. .............. .............. .............. ............. .........
4. 1991 ........ 1,247 ..... 1,086 .......... 142 ........... 92 .............. .............. ........... 9 ....... 1
5. 1992 .......... 328 ....... 135 .......... 493 .......... 272 .............. .............. .......... 31 ....... 4
6. 1993 .......... 775 ....... 248 .......... 831 .......... 170 ............ 4 ............ 1 .......... 49 ....... 6
7. 1994 ........ 5,919 ..... 4,871 ........ 1,124 .......... 318 ........... 43 ........... 14 .......... 58 ....... 8
8. 1995 ........ 2,476 ....... 533 ........ 6,519 ........ 2,687 ............ 9 ............ 1 .......... 55 ....... 7
- --------------------------------------------------------------------------------------------------------------------------
9. TOTALS ....... 10,746 ..... 6,873 ........ 9,109 ........ 3,539 ........... 56 ........... 16 ......... 202 ...... 26
- --------------------------------------------------------------------------------- ----------------------------------------
<CAPTION>
===================================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 ................. ................ ................1 X X X
2. 1989 ................. ................ ................. X X X
3. 1990 ................. ................ ................. X X X
4. 1991 ................. .............. 5 ............. 224 X X X
5. 1992 ................. .............. 9 ............. 450 X X X
6. 1993 ................. ............. 26 ........... 1,260 X X X
7. 1994 ................. ............. 37 ........... 1,970 X X X
8. 1995 ................. ............ 123 ........... 5,954 X X X
- -----------------------------------------------------------------------------------
9. TOTALS ................. ............ 200 ........... 9,859 X X X
- -----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
===============================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ........... 852 ......... 6 .......... 846 ............. 26.1 ........ 0.5 ....... 39.8 ............ ..............
2. 1989 ......... 2,212 ....... 484 ........ 1,728 ............. 52.6 ....... 23.8 ....... 79.5 ............ ..............
3. 1990 ......... 1,315 ....... 268 ........ 1,047 ............. 34.2 ....... 19.1 ....... 42.9 ............ ..............
4. 1991 ......... 3,442 ..... 1,591 ........ 1,851 ............. 87.0 ....... 82.4 ....... 91.3 ............ ..............
5. 1992 ......... 5,307 ..... 1,160 ........ 4,147 ............ 126.1 ....... 72.0 ...... 159.8 ............ ..............
6. 1993 ......... 6,772 ..... 1,748 ........ 5,024 ............. 67.1 ....... 41.7 ....... 85.2 ............ ..............
7. 1994 ........ 14,917 ..... 7,620 ........ 7,297 ............ 109.0 ...... 106.9 ...... 111.2 ............ ..............
8. 1995 ........ 11,416 ..... 3,727 ........ 7,689 ............. 56.6 ....... 43.6 ....... 66.2 ............ ..............
- -------------------------------------------------------------------------------------------------------------------------------
9. TOTALS X X X X X X X X X X X X X X X X X X ............ ..............
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ---------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ---------------------------------------------------------------
<S> <C> <C> <C>
1. 1988 .............. ................ 1 .................
2. 1989 .............. .................. .................
3. 1990 .............. .................. .................
4. 1991 .............. .............. 211 .............. 13
5. 1992 .............. .............. 414 .............. 36
6. 1993 .........100.0 ............ 1,188 .............. 72
7. 1994 .........100.0 ............ 1,854 ............. 116
8. 1995 .........100.0 ............ 5,775 ............. 179
- ---------------------------------------------------------------
9. TOTALS X X X ............ 9,443 ............. 416
- ---------------------------------------------------------------
</TABLE>
91
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 10 - REINSURANCE B
($000 Omitted)
<TABLE>
<CAPTION>
===========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ----------------------------------------------------------------
Were Earned Direct and Ceded Net (5) (6) (7) (8)
and Losses Assumed (Cols. 2 - 3) Direct and Ceded Direct and Ceded
Were Incur. Assumed Assumed
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ....... 7,154 ........... 615 .......... 6,539 ......... 3,876 ............. 154 ............. 60 ......... 3
2. 1989 ...... 13,933 ......... 1,708 ......... 12,225 ......... 2,649 ............ (166) ............. 28 ....... (15)
3. 1990 ...... 11,832 ......... 1,487 ......... 10,345 ......... 3,704 ............. 141 .............. 3 ....... (25)
4. 1991 ....... 9,656 ......... 1,447 .......... 8,209 ......... 2,708 ............. 349 .......... 2,043 ..... 1,021
5. 1992 ....... 7,287 ........... 998 .......... 6,289 ......... 2,158 ............. (75) ............ 112 ......... 5
6. 1993 ....... 7,397 ......... 1,811 .......... 5,586 ......... 2,138 ............. 324 ............ 140 ........ 19
7. 1994 ...... 10,578 ......... 2,399 .......... 8,179 ......... 1,557 ............. 303 ............. 42 ......... 6
8. 1995 ...... 18,887 ......... 4,858 ......... 14,029 ........... 422 ............. 55 .............. 8 ......... 1
- ---------------------------------------------------------------------------------------------------------------------------
9. TOTALS X X X X X X X X X ........ 19,212 ........... 1,085 .......... 2,436 ..... 1,015
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================================
(1) (12)
Years in ----------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 .............. ........... 267 ........ 4,046 X X X
2. 1989 .............. ........... 187 ........ 3,045 X X X
3. 1990 .............. ........... 202 ........ 3,793 X X X
4. 1991 .............. ........... 325 ........ 3,706 X X X
5. 1992 .............. ........... 273 ........ 2,613 X X X
6. 1993 .............. ........... 308 ........ 2,243 X X X
7. 1994 .............. ........... 252 ........ 1,542 X X X
8. 1995 .............. ............ 38 .......... 412 X X X
- ------------------------------------------------------------------------
9. TOTALS .............. ......... 1,852 ....... 21,400 X X X
- ------------------------------------------------------------------------
</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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .......... 131 ........ 23 .......... 360 ........... 60 .............. .............. ........... 3 .........
2. 1989 ........ 1,053 ....... 152 ........ 2,205 .......... 505 .............. .............. ........... 8 ....... 1
3. 1990 ........ 1,059 ....... 418 ........ 3,224 .......... 505 .............. .............. ...........15 ....... 2
4. 1991 .......... 587 ....... 108 ........ 3,702 .......... 657 .............. .............. ...........13 ....... 2
5. 1992 ........ 1,307 ....... 320 ........ 2,499 .......... 524 ............ 1 .............. ...........32 ....... 4
6. 1993 ........ 1,342 ....... 258 ........ 2,700 .......... 614 ........... 16 ............ 2 .......... 59 ....... 8
7. 1994 ........ 2,260 ....... 877 ........ 4,691 .......... 638 ............ 6 ............ 1 ......... 201 ...... 26
8. 1995 .......... 553 ........ 72 ....... 11,979 ........ 2,630 ........... 10 ............ 1 ......... 129 ...... 17
- ---------------------------------------------------------------------------------------------------------------------------
9. TOTALS ........ 8,292 ..... 2,228 ....... 31,360 ........ 6,133 ........... 33 ............ 4 ......... 460 ...... 60
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
====================================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 ................. .............. 3 ............. 414 X X X
2. 1989 ................. ............. 20 ........... 2,628 X X X
3. 1990 ................. ............. 26 ........... 3,399 X X X
4. 1991 ................. ............. 27 ........... 3,562 X X X
5. 1992 ................. ............. 23 ........... 3,014 X X X
6. 1993 ................. ............. 25 ........... 3,260 X X X
7. 1994 ................. ............. 43 ........... 5,659 X X X
8. 1995 ................. ............. 83 .......... 10,034 X X X
- ------------------------------------------------------------------------------------
9. TOTALS ................. ............ 250 .......... 31,970 X X X
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
================================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME
EXPENSES INCURRED (Incurred/Premiums Earned) VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ......... 4,700 ....... 240 ........ 4,460 ............. 65.7 ....... 39.0 ....... 68.2 ............ .............
2. 1989 ......... 6,150 ....... 477 ........ 5,673 ............. 44.1 ....... 27.9 ....... 46.4 ............ .............
3. 1990 ......... 8,233 ..... 1,041 ........ 7,192 ............. 69.6 ....... 70.0 ....... 69.5 ............ .............
4. 1991 ......... 9,405 ..... 2,137 ........ 7,268 ............. 97.4 ...... 147.7 ....... 88.5 ............ .............
5. 1992 ......... 6,405 ....... 778 ........ 5,627 ............. 87.9 ....... 78.0 ....... 89.5 ............ .............
6. 1993 ......... 6,728 ..... 1,225 ........ 5,503 ............. 91.0 ....... 67.6 ....... 98.5 ............ .............
7. 1994 ......... 9,052 ..... 1,851 ........ 7,201 ............. 85.6 ....... 77.2 ....... 88.0 ............ .............
8. 1995 ........ 13,222 ..... 2,776 ....... 10,446 ............. 70.0 ....... 57.1 ....... 74.5 ............ .............
- --------------------------------------------------------------------------------------------------------------------------------
9. TOTALS X X X X X X X X X X X X X X X X X X ............ .............
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -------------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ----------------------------------------------------------------
<S> <C> <C> <C>
1. 1988 .............. .............. 408 .............. 6
2. 1989 .............. ............ 2,601 .............. 27
3. 1990 .............. ............ 3,360 .............. 39
4. 1991 .............. ............ 3,524 .............. 38
5. 1992 .............. ............ 2,962 .............. 52
6. 1993 ........ 100.0 ............ 3,170 .............. 90
7. 1994 ........ 100.0 ............ 5,436 ............. 223
8. 1995 ........ 100.0 ............ 9,830 ............. 204
- ----------------------------------------------------------------
9. TOTALS X X X ........... 31,291 ............. 679
- ----------------------------------------------------------------
</TABLE>
92
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1P - REINSURANCE C
($000 Omitted)
<TABLE>
<CAPTION>
===========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ............. ............... ................ ............... ................. ................. ...........
2. 1989 ............. ............... ................ ............... ................. ................. ...........
3. 1990 ............. ............... ................ ............... ................. ................. ...........
4. 1991 ............. ............... ................ ............... ................. ................. ...........
5. 1992 ............. ............... ................ ............... ................. ................. ...........
6. 1993 ............. ............... ................ ............... ................. ................. ...........
7. 1994 ............. ............... ................ ............... ................. ................. ...........
8. 1995 ............. ............... ................ ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
9. TOTALS X X X X X X X X X ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================================
(1) (12)
Years in ----------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- -------------------------------------------------------------------------
<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>
==========================================================================================================================
LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
---------------------------------------------------------------------------------------------------------------
CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
---------------------------------------------------------------------------------------------------------------
(13) (14) (15) (16) (17) (18) (19) (20)
Direct and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .............. ........... ..............
2. 1989 .............. ........... ..............
3. 1990 .............. ........... ..............
4. 1991 .............. ........... .............. N O N E
5. 1992 .............. ........... ..............
6. 1993 .............. ........... ..............
7. 1994 .............. ........... ..............
8. 1995 .............. ........... .............. .............. .............. .............. ............. .........
- --------------------------------------------------------------------------------------------------------------------------
9. TOTALS .............. ........... .............. .............. .............. .............. ............. .........
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==================================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 .............. ................ ................. X X X
1. 1988 .............. ................ ................. X X X
2. 1989 .............. ................ ................. X X X
3. 1990 .............. ................ ................. X X X
4. 1991 .............. ................ ................. X X X
5. 1992 .............. ................ ................. X X X
6. 1993 .............. ................ ................. X X X
7. 1994 .............. ................ ................. X X X
8. 1995 .............. ................ ................. X X X
- ----------------------------------------------------------------------------------
9. TOTALS .............. ................ ................. X X X
- ----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================================
TOTAL LOSSES AND LOSS EXPENSES INCURRED LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR TIME
(Incurred/Premiums Earned) VALUE OF MONEY
------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ............... ........... .............. .................. ............ ............ ............ .............
2. 1989 ............... ........... .............. .................. ............ ............ ............ .............
3. 1990 ............... ........... .............. .................. ............ ............ ............ .............
4. 1991 ............... ........... .............. .................. ............ ............ ............ .............
5. 1992 ............... ........... .............. .................. ............ ............ ............ .............
6. 1993 ............... ........... .............. .................. ............ ............ ............ .............
7. 1994 ............... ........... .............. .................. ............ ............ ............ .............
8. 1995 ............... ........... .............. .................. ............ ............ ............ .............
- ------------------------------------------------------------------------------------------------------------------------------
9. TOTALS X X X X X X X X X X X X X X X X X X ............ .............
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company --------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1Q - REINSURANCE D
($000 Omitted)
<TABLE>
<CAPTION>
============================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in -----------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ---------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ............... ................. ................. ...........
2. 1986 ............. ............... ................ ............... ................. ................. ...........
3. 1987 ......... 769 ........... 115 ............ 654 ........... 833 ............. 235 .............. 18 ......... 4
- ----------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X ........... 833 ............. 235 .............. 18 ......... 4
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================================
(1) (12)
Years in ----------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior .............. ............... ............... X X X
2. 1986 .............. ............... ............... X X X
3. 1987 .............. ............ 43 ........... 655 X X X
- ------------------------------------------------------------------------
4. TOTALS .............. ............ 43 ........... 655 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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .............. ........... .............. .............. .............. .............. ............. .........
2. 1986 .............. ........... .............. .............. .............. .............. ............. .........
3. 1987 .............. ........... ........... 65 ........... 14 .............. .............. ............. .........
- --------------------------------------------------------------------------------------------------------------------------
4. TOTALS .............. ........... ........... 65 ........... 14 .............. .............. ............. .........
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==================================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ................. ................ ................. X X X
2. 1986 ................. ................ ................. X X X
3. 1987 ................. ................ .............. 51 X X X
- -----------------------------------------------------------------------------------
4. TOTALS ................. ................ .............. 51 X X X
- -----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
===============================================================================================================================
TOTAL LOSSES AND LOSS EXPENSES INCURRED LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
(Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- -------------------------------------------------------------------------------------------------------------------------------
<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 ........... 959 ....... 253 .......... 706 ............ 124.7 ...... 220.0 ...... 108.0 ............ .............
- -------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X X X X X X X X X X ............ .............
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ------------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X .................. .................
2. 1986 .............. .................. .................
3. 1987 ........ 100.0 ............... 51 .................
- ---------------------------------------------------------------
4. TOTALS X X X ............... 51 .................
- ---------------------------------------------------------------
</TABLE>
94
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1R - SECTION 1
PRODUCTS LIABILITY - OCCURRENCE
($000 Omitted)
<TABLE>
<CAPTION>
===================================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ------------------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ----------------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<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 ............. ............... ................ ............... ................. ................. ...........
8. 1992 ............. ............... ................ ............... ................. ................. ...........
9. 1993 ............. ............... ................ ............... ................. ................. ...........
10. 1994 ............. ............... ................ ............... ................. ................. ...........
11. 1995 ............. ............... ................ ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================================
(1) (12)
Years in ---------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur Received Payments + 7 - 8 + 10) Assumed
- ------------------------------------------------------------------------
<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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding
Unpaid Unpaid Direct and
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 LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- -------------------------------------------------------------------------------------------------------------------------------
<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 .............. ........... .............. .............. .............. .............. ............. .............
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>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1R - SECTION 2
PRODUCTS LIABILITY - CLAIMS-MADE
($000 Omitted)
<TABLE>
<CAPTION>
===========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums ---------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<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 ............. ............... ................ ............... ................. ................. ...........
8. 1992 ............. ............... ................ ............... ................. ................. ...........
9. 1993 ............. ............... ................ ............... ................. ................. ...........
10. 1994 ............. ............... ................ ............... ................. ................. ...........
11. 1995 ............. ............... ................ ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================================
(1) (12)
Years in ----------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- -------------------------------------------------------------------------
<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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding
Unpaid Unpaid Direct and
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 LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
-------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Net Direct and Ceded Net Loss Loss
Assumed Ceded Assumed Expense
- -------------------------------------------------------------------------------------------------------------------------------
<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 .............. ........... .............. .............. .............. .............. ............. .............
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>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company ---------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 1S - FINANCIAL GUARANTY / MORTGAGE GUARANTY
($000 Omitted)
<TABLE>
<CAPTION>
===========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ---------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior X X X X X X X X X ............... ................. ................. ...........
2. 1994 ............. ............... ................ ............... ................. ................. ...........
3. 1995 ............. ............... ................ ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================================
(1) (12)
Years in ----------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- -------------------------------------------------------------------------
<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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .............. ........... ..............
2. 1994 .............. ........... .............. N O N E
3. 1995 .............. ........... ..............
- --------------------------------------------------------------------------------------------------------------------------
4. TOTALS .............. ........... .............. .............. .............. .............. ............. .........
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==================================================================================
(21) (22) (23) (24)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding -
Unpaid Unpaid Direct and
Assumed
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ............. ................ ................. ................
2. 1994 ............. ................ ................. ................
3. 1995 ............. ................ ................. ................
- ----------------------------------------------------------------------------------
4. TOTALS ............. ................ ................. ................
- ----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
===============================================================================================================================
TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- -------------------------------------------------------------------------------------------------------------------------------
<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 ............... ........... .............. .................. ............ ............ ............ .............
- -------------------------------------------------------------------------------------------------------------------------------
4. TOTALS X X X X X X X X X X X X X X X X X X ............ .............
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -----------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
Unpaid Unpaid
- ---------------------------------------------------------------
<S> <C> <C> <C>
1. Prior X X X .................. .................
2. 1994 .............. .................. .................
3. 1995 .............. .................. .................
- ---------------------------------------------------------------
4. TOTALS X X X .................. .................
- ---------------------------------------------------------------
</TABLE>
97
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 1S - FINANCIAL GUARANTY / MORTGAGE GUARANTY
( $000 Omitted )
(For inhouse use only - Do not submit to NAIC)
<TABLE>
<CAPTION>
===========================================================================================================================
(1) PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
Years in ----------------------------------------------------------------------------------------------------------------
Which (2) (3) (4) LOSS PAYMENTS ALLOCATED LOSS EXPENSE PAYMENTS
Premiums --------------------------------------------------------------
Were Earned Direct and Net (5) (6) (7) (8)
and Losses Assumed Ceded (Cols. 2 - 3) Direct and Direct and
Were Incur. Assumed Ceded Assumed Ceded
- ---------------------------------------------------------------------------------------------------------------------------
<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 ............. ............... ................ ............... ................. ................. ...........
8. 1992 ............. ............... ................ ............... ................. ................. ...........
9. 1993 ............. ............... ................ ............... ................. ................. ...........
10. 1994 ............. ............... ................ ............... ................. ................. ...........
11. 1995 ............. ............... ................ ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
12. TOTALS X X X X X X X X X ............... ................. ................. ...........
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================================
(1) (12)
Years in ----------------------------------------------
Which (9) (10) (11) Number of
Premiums Total Claims
Were Earned Salvage and Unallocated Net Paid Reported -
and Losses Subrogation Loss Expense (Cols. 5 - 6 Direct and
Were Incur. Received Payments + 7 - 8 + 10) Assumed
- -------------------------------------------------------------------------
<S> <C> <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 and Direct and Direct and Direct and
Assumed Ceded Assumed Ceded Assumed Ceded 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)
Salvage and Unallocated Total Net Number of
Subrogation Loss Losses and Claims
Anticipated Expenses Expenses Outstanding
Unpaid Unpaid Direct and
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 LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
EXPENSES INCURRED (Incurred/Premiums Earned) TIME VALUE OF MONEY
--------------------------------------------------------------------------------------------------------------------
(25) (26) (27) (28) (29) (30) (31) (32)
Direct and Ceded Net Direct and Ceded Net Loss Loss
Assumed Assumed Expense
- -------------------------------------------------------------------------------------------------------------------------------
<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 .............. ........... .............. .............. .............. .............. ............. .............
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>
===============================================================
(33) NET BALANCE SHEET
RESERVES AFTER DISCOUNT
Inter-Company -------------------------------
Pooling (34) (35)
Participation
Percentage Losses Loss Expenses
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>
97B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
====================================================================================================================================
(1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED ) DEVELOPMENT
- ------------------------------------------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 One Year Two Year
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <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 X X X ......... ......... ......... ......... ....... ......... .........
8. 1992 .... X X X X X X X X X X X X X X X X X X ......... ......... ......... ....... ......... .........
9. 1993 .... X X X X X X X X X X X X X X X X X X X X X ......... ......... ....... ......... .........
10. 1994 .... X X X X X X X X X X X X X X X X X X X X X X X X ...... 44 .... 50 ....... 6 X X X
11. 1995 .... X X X X X X X X X X X X X X X X X X X X X X X X X X X ... 257 X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS ... 6 ........
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2B
PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
====================================================================================================================================
<S> <C> <C> <C> <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 ......... NONE ......... ......... ......... ....... ......... .........
7. 1991 .... X X X X X X X X X X X X X X X ......... ......... ......... ......... ....... ......... .........
8. 1992 .... X X X X X X X X X X X X X X X X X X ......... ......... ......... ....... ......... .........
9. 1993 .... X X X X X X X X X X X X X X X X X X X X X ......... ......... ....... ......... .........
10. 1994 .... X X X X X X X X X X X X X X X X X X X X X X X X ......... ....... ......... X X X
11. 1995 .... X X X X X X X X X X X X X X X X X X X X X X X X X X X ....... X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS ..... ........
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2C
COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
====================================================================================================================================
<S> <C> <C> <C> <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 X X X ......... ......... ......... ......... ....... ......... .........
8. 1992 .... X X X X X X X X X X X X X X X X X X ......... ......... ......... ....... ......... .........
9. 1993 .... X X X X X X X X X X X X X X X X X X X X X ......... ......... ....... ......... .........
10. 1994 .... X X X X X X X X X X X X X X X X X X X X X X X X ......... ....... ......... X X X
11. 1995 .... X X X X X X X X X X X X X X X X X X X X X X X X X X X 135 X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS ..... ........
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2D - WORKERS' COMPENSATION
<TABLE>
====================================================================================================================================
<S> <C> <C> <C> <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 X X X ......... ......... ......... ......... ....... ......... .........
8. 1992 .... X X X X X X X X X X X X X X X X X X ......... ......... ......... ....... ......... .........
9. 1993 .... X X X X X X X X X X X X X X X X X X X X X ......... ......... ....... ......... .........
10. 1994 .... X X X X X X X X X X X X X X X X X X X X X X X X ......... ....... ......... X X X
11. 1995 .... X X X X X X X X X X X X X X X X X X X X X X X X X X X 3 X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS ..... ........
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2E - COMMERCIAL MULTIPLE PERIL
<TABLE>
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... 3,545 3,501 4,193 4,343 4,362 4,378 3,982 3,927 3,932 3,924 (8) (3)
2. 1986 .... ........ ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... .........
3. 1987 .... X X X ......... ......... ......... ......... ......... ......... ......... ......... ....... ......... .........
4. 1988 .... X X X X X X ......... ......... ......... ......... ......... ......... ......... ....... ......... .........
5. 1989 .... X X X X X X X X X ......... ......... ......... ......... ......... ......... ....... ......... .........
6. 1990 .... X X X X X X X X X X X X ......... ......... ......... ......... ......... ....... ......... .........
7. 1991 .... X X X X X X X X X X X X X X X ......... ......... ......... ......... ....... ......... .........
8. 1992 .... X X X X X X X X X X X X X X X X X X ...... 26 ...... 46 ...... 29 .... 28 ..... (1) .... (18)
9. 1993 .... X X X X X X X X X X X X X X X X X X X X X ..... 251 ..... 238 ... 221 .... (17) .... (30)
10. 1994 .... X X X X X X X X X X X X X X X X X X X X X X X X ..... 659 ... 763 .... 104 X X X
11. 1995 .... X X X X X X X X X X X X X X X X X X X X X X X X X X X . 1,241 X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
12. TOTALS ...78 ....(51)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
98
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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)
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 ............. ............. ............. .............
6. 1990 .............. X X X X X X X X X X X X ............. NONE .............
7. 1991 .............. X X X X X X X X X X X X X X X ............. .............
8. 1992 .............. X X X X X X X X X X X X X X X X X X .............
9. 1993 .............. X X X X X X X X X X X X X X X X X X X X X
10. 1994 .............. X X X X X X X X X X X X X X X X X X X X X
11. 1995 .............. X X X X X X X X X X X X X X X X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================================
(1) DEVELOPMENT
Years in --------------------------------------------------------------------
Which (9) (10) (11) (12) (13)
Losses Were
Incurred 1993 1994 1995 One Year Two Year
- ------------------------------------------------------------------------------------------------
<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 ............. ............. ............. X X X
11. 1995 .............. X X X X X X ............. 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>
1. Prior .......... .............. ............. ............. ............. ............. ............. .............
2. 1986 ........... .............. ............. ............. ............. ............. ............. .............
3. 1987 ........... X X X ............. ............. ............. ............. ............. .............
4. 1988 ........... X X X X X X ............. ............. ............. ............. .............
5. 1989 ........... X X X X X X X X X ............. ............. .............
6. 1990 ........... X X X X X X X X X X X X ............. NONE .............
7. 1991 ........... X X X X X X X X X X X X X X X ............. .............
8. 1992 ........... X X X X X X X X X X X X X X X X X X .............
9. 1993 ........... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........... X X X X X X X X X X X X X X X X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
===========================================================================================
<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 ............. ............. ............. X X X
11. 1995 ........... X X X X X X ............. 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>
1. Prior .......... .............. ............. ............. ............. ............. ............. .............
2. 1986 ........... .............. ............. ............. ............. ............. ............. .............
3. 1987 ........... X X X ............. ............. ............. ............. ............. .............
4. 1988 ........... X X X X X X ............. ............. ............. ............. .............
5. 1989 ........... X X X X X X X X X ............. ............. .............
6. 1990 ........... X X X X X X X X X X X X ............. NONE .............
7. 1991 ........... X X X X X X X X X X X X X X X ............. .............
8. 1992 ........... X X X X X X X X X X X X X X X X X X .............
9. 1993 ........... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........... X X X X X X X X X X X X X X X X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
===============================================================================================
<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 ............. ............. ............. X X X
11. 1995 ........... X X X X X X ............. 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>
1. Prior .......... ...... 3,132 ...... 3,949 ...... 4,109 ...... 4,811 ..... 6,074 ...... 5,566 ...... 5,102
2. 1986 ........... ........ 175 ........ 136 ........ 143 ........ 143 ....... 143 ........ 143 ........ 143
3. 1987 ........... X X X ........ 119 ........ 104 ......... 74 ........ 74 ......... 74 ......... 74
4. 1988 ........... X X X X X X ......... 15 ............. ............ ............. .............
5. 1989 ........... X X X X X X X X X ............. ............ ............. .............
6. 1990 ........... X X X X X X X X X X X X ............ ............. .............
7. 1991 ........... X X X X X X X X X X X X X X X ............. .............
8. 1992 ........... X X X X X X X X X X X X X X X X X X .............
9. 1993 ........... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
===========================================================================================
<S> <C> <C> <C> <C> <C>
1. Prior .......... ...... 5,335 ...... 5,305 ...... 5,304 ......... (1) ........ (31)
2. 1986 ........... ........ 142 ........ 143 ........ 143 ............. .......... 1
3. 1987 ........... ......... 74 ......... 74 ......... 74 ............. .............
4. 1988 ........... ............. ............. ............. ............. .............
5. 1989 ........... ............. ............. ............. ............. .............
6. 1990 ........... ............. ............. ............. ............. .............
7. 1991 ........... ............. ............. ............. ............. .............
8. 1992 ........... ............. ............. ............. ............. .............
9. 1993 ........... ............. ............. ............. ............. .............
10. 1994 ........... X X X ............. ............. ............. X X X
11. 1995 ........... X X X X X X ........ 312 X X X X X X
- -------------------------------------------------------------------------------------------
12. TOTALS .......... (1) ........ (30)
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2H - SECTION 2
OTHER LIABILITY - 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 ............. ............. ............. .............
6. 1990 ........... X X X X X X X X X X X X ............. NONE .............
7. 1991 ........... X X X X X X X X X X X X X X X ............. .............
8. 1992 ........... X X X X X X X X X X X X X X X X X X .............
9. 1993 ........... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
=============================================================================================
<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 ............. ............. ............. X X X
11. 1995 ........... X X X X X X ............. X X X X X X
- ---------------------------------------------------------------------------------------------
12. TOTALS .............. .............
- ---------------------------------------------------------------------------------------------
</TABLE>
99
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE,
ALLIED LINES, INLAND MARINE, EARTHQUAKE,
GLASS, BURGLARY, AND THEFT)
<TABLE>
========================================================================================================================
(1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END
---------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- ------------------------------------------------------------------------------------------------------------------------
<S> <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
3. 1995 .......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================================================================
(1) ($000 OMITTED) DEVELOPMENT
- --------------------------------------------------------------------------------------------------------
Years in Which (9) (10) (11) (12) (13)
Losses Were
Incurred 1993 1994 1995 One Year Two Year
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior ......... ...... 13,821 ...... 13,806 ...... 13,772 ........ (34) ........ (49)
2. 1994 ......... X X X ...... 1,062 ...... 1,016 ........ (46) X X X
3. 1995 .......... X X X X X X ...... 1,159 X X X X X X
- --------------------------------------------------------------------------------------------------------
4. TOTALS ........ (80) ........ (49)
- --------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE
<TABLE>
======================================================================================================================
<S> <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
3. 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 ......... ............ 16 .......... 13 ......... 13 ............. ......... (3)
2. 1994 .......... X X X ......... 377 ........ 400 .......... 23 X X X
3. 1995 .......... X X X X X X ........ 754 X X X X X X
- ----------------------------------------------------------------------------------------------
4. TOTALS .......... 23 ......... (3)
- ----------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2K - FIDELITY, SURETY
<TABLE>
=====================================================================================================================
<S> <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
3. 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. 1994 .......... X X X ............. ............. ............. X X X
3. 1995 .......... X X X X X X ........... 3 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>
1. Prior ......... X X X X X X X X X X X X X X X X X X X X X
2. 1994 .......... X X X X X X X X X X X X X X X X X X X X X
3. 1995 .......... X X X X X X X X X X X X X X X X X X X X X
- ----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
==================================================================================================
<S> <C> <C> <C> <C> <C>
1. Prior ......... ...... 176,154 .... 177,224 .... 177,139 ........ (85) ........ 985
2. 1994 .......... X X X ..... 47,177 ..... 48,994 ...... 1,817 X X X
3. 1995 .......... X X X X X X ..... 52,636 X X X X X X
- ------------------------------------------------------------------------------------------------
4. TOTALS ...... 1,732 ........ 985
- ------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2M - INTERNATIONAL
<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 ............. ............. ............. .............
6. 1990 .......... X X X X X X X X X X X X ............. NONE .............
7. 1991 .......... X X X X X X X X X X X X X X X ............. .............
8. 1992 .......... X X X X X X X X X X X X X X X X X X .............
9. 1993 .......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 .......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 .......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
=============================================================================
<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 .......... ............. ............. ............. X X X
11. 1995 .......... X X X ............. X X X X X X
- -----------------------------------------------------------------------------
12. TOTALS ............. ..............
- -----------------------------------------------------------------------------
</TABLE>
100
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY, AND THEFT)
(For inhouse use only - Do not submit to NAIC)
<TABLE>
<CAPTION>
====================================================================================================================================
(1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED )
------------------------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior...... ..........4,449 .......... 4,449 ......... 4,449 ........ 4,449 ........ 4,449 ........ 4,449 .......... 4,449
2. 1986 ...... ..........1,067 .......... 1,067 ......... 1,067 ........ 1,067 ........ 1,067 ........ 1,067 .......... 1,067
3. 1987 ...... X X X .......... 1,153 ......... 1,153 ........ 1,153 ........ 1,153 ........ 1,153 .......... 1,153
4. 1988 ...... X X X X X X ......... 1,249 ........ 1,249 ........ 1,249 ........ 1,249 .......... 1,249
5. 1989 ...... X X X X X X X X X ........ 1,201 ........ 1,198 ........ 1,181 .......... 1,182
6. 1990 ...... X X X X X X X X X X X X ........ 1,172 ........ 1,140 .......... 1,131
7. 1991 ...... X X X X X X X X X X X X X X X ........ 1,120 .......... 1,099
8. 1992 ...... X X X X X X X X X X X X X X X X X X .......... 1,689
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================
(1) DEVELOPMENT
-----------------------------------------------------------------------
Years in Which (9) (10) (11) (12) (13)
Losses Were
Incurred 1993 1994 1995 One Year Two Year
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior...... ........ 4,449 ......... 4,449 ........ 4,449 .......... ...........
2. 1986 ...... ........ 1,067 ......... 1,067 ........ 1,067 .......... ...........
3. 1987 ...... ........ 1,153 ......... 1,153 ........ 1,153 .......... ...........
4. 1988 ...... ........ 1,249 ......... 1,249 ........ 1,249 .......... ...........
5. 1989 ...... ........ 1,182 ......... 1,183 ........ 1,183 .......... ........ 1
6. 1990 ...... ........ 1,131 ......... 1,131 ........ 1,133 ....... 2. ........ 2
7. 1991 ...... ........ 1,077 ......... 1,078 ........ 1,078 .......... ........ 1
8. 1992 ...... ........ 1,749 ......... 1,738 ........ 1,735 ...... (3) ........(14)
9. 1993 ...... ........ 764 ......... 758 ........ 724 ..... (34) ........(40)
10. 1994 ...... X X X ......... 1,062 ........ 1,016 ..... (46) X X X
11. 1995 ...... X X X X X X ........ 1,159 X X X X X X
- --------------------------------------------------------------------------------------
12. TOTALS ........ (80) ......... (49)
- --------------------------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE
<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 ........... ........... ........... ............
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 ...... .......16 .......13 .....13 ......... ......(3)
10. 1994 ...... X X X ..... 377 ... 400 ...... 23 X X X
11. 1995 ...... X X X X X X ... 754 X X X X X X
- --------------------------------------------------------------------------------------
12. TOTALS ........... 23 ...........(3)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 2K - FIDELITY, SURETY
<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 ........... ............ ............ .............
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 ......... ....... ......... X X X
11. 1995 ........ X X X X X X ..... 3 X X X X X X
- --------------------------------------------------------------------------------------
12. TOTALS ......... .........
- --------------------------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior........ ............ ............ ............. ............ .............. ............ ...............
2. 1986 ........ ...... 8,122 ...... 8,631 ....... 8,533 ...... 8,529 ........ 8,529 ...... 8,572 ........ 8,571
3. 1987 ........ X X X ..... 10,019 ...... 10,311 ......10,380 ....... 10,676 ..... 10,636 ........ 10,652
4. 1988 ........ X X X X X X ...... 16,208 ..... 14,828 ....... 14,743 ..... 14,684 ........ 14,696
5. 1989 ........ X X X X X X X X X ..... 21,340 ........21,626 ......21,459 ........ 21,409
6. 1990 ........ X X X X X X X X X X X X ....... 24,297 ..... 22,509 ........ 21,520
7. 1991 ........ X X X X X X X X X X X X X X X ..... 19,241 .........20,743
8. 1992 ........ X X X X X X X X X X X X X X X X X X ........ 31,074
9. 1993 ........ X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........ X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........ X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
======================================================================================
<S> <C> <C> <C> <C> <C>
1. Prior....... ........... ........... ........... ........... ..........
2. 1986 ....... ..... 8,572 ..... 8,571 ..... 8,571 ........... ...... (1)
3. 1987 ....... .... 10,655 .... 10,655 .... 10,655 ........... ..........
4. 1988 ....... .... 14,697 .... 14,697 .... 14,697 ........... ..........
5. 1989 ....... .... 21,410 .... 21,410 .... 21,410 ........... ..........
6. 1990 ....... .... 21,475 .... 21,474 .... 21,474 ........... .......(1)
7. 1991 ....... .... 20,504 .... 20,471 .... 20,464 ....... (7) ......(40)
8. 1992 ....... .... 32,868 .... 32,981 .... 32,947 .......(34) ...... 79
9. 1993 ....... .... 45,973 .... 46,965 .... 46,922 .......(43) .... 949
10. 1994 ....... X X X .. ..47,177 .... 48,994 ..... 1,817 X X X
11. 1995 ....... X X X X X X .... 52,636 X X X X X X
- --------------------------------------------------------------------------------------
12. TOTALS ......... 1,732 ....... 985
- --------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2M - INTERNATIONAL
<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 ........... ........... ............. .............
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
- -----------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
======================================================================================
<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 ............ ........... ......... X X X
11. 1995 ......... X X X X X X ........... X X X X X X
- --------------------------------------------------------------------------------------
12. TOTALS .......... .........
- --------------------------------------------------------------------------------------
</TABLE>
100B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 2N - REINSURANCE A
<TABLE>
<CAPTION>
====================================================================================================================================
(1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED ) DEVELOPMENT
---------------------------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 One Year Two Year
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ..... X X X X X X ... 1,116 ..... 994 ..... 929 ..... 710 ..... 706 ..... 648 ..... 651 .... 644 ..... (7) ..... (4)
2. 1989 ..... X X X X X X X X X ... 2,256 ... 2,079 ... 1,865 ... 1,567 ... 1,607 ... 1,537 .. 1,539 ...... 2 .... (68)
3. 1990 ..... X X X X X X X X X X X X ... 1,539 ... 1,515 ... 1,087 ... 1,031 ..... 934 .... 880 .... (54) ... (151)
4. 1991 ..... X X X X X X X X X X X X X X X ... 1,762 ... 1,870 ... 1,830 ... 1,749 .. 1,693 .... (56) ... (137)
5. 1992 ..... X X X X X X X X X X X X X X X X X X ... 3,508 ... 3,808 ... 3,503 .. 3,727 .... 224 .... (81)
6. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ... 3,987 ... 4,511 .. 4,662 .... 151 .... 675
7. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ... 6,683 .. 6,807 .... 124 X X X
8. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .. 7,394 X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
9. TOTALS .. 384 .... 234
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2O - REINSURANCE B
<TABLE>
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ..... X X X X X X ... 3,879 ... 4,101 ... 4,115 ... 4,548 ... 4,967 ... 4,598 ... 4,485 .. 4,190 ... (295) .... (408)
2. 1989 ..... X X X X X X X X X ... 7,898 ... 7,908 ... 7,583 ... 7,872 ... 6,867 ... 5,776 .. 5,467 ... (309) .. (1,400)
3. 1990 ..... X X X X X X X X X X X X ... 7,493 ... 7,142 ... 7,170 ... 7,229 ... 6,985 .. 6,964 .... (21) .... (265)
4. 1991 ..... X X X X X X X X X X X X X X X ... 6,509 ... 6,726 ... 6,853 ... 7,889 .. 6,916 ... (973) ...... 63
5. 1992 ..... X X X X X X X X X X X X X X X X X X ... 4,715 ... 5,042 ... 5,742 .. 5,331 ... (411) ..... 289
6. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ... 4,506 ... 4,755 .. 5,169 .... 414 ..... 663
7. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ... 5,472 .. 6,907 .. 1,435 X X X
8. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X . 10,326 X X X X X X
- -----------------------------------------------------------------------------------------------------------------------------------
9. TOTALS ...(160) .. (1,058)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2P - REINSURANCE C
<TABLE>
===================================================================================================================================
<S> <C> <C> <C> <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 X X X ......... ......... ......... ........ .......... .........
5. 1992 ..... X X X X X X X X X X X X X X X N O N E ......... ......... ......... ........ .......... .........
6. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ......... ......... ........ .......... .........
7. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ......... ........ .......... X X X
8. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ........ X X X X X X
- -----------------------------------------------------------------------------------------------------------------------------------
9. TOTALS .......... .........
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2Q - REINSURANCE D
<TABLE>
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .... ......... ....... ....... ......... ......... ......... ......... ......... ......... ........ ........ ..........
2. 1986 ..... ......... ....... ........ ......... ......... ......... ......... ......... ......... ........ ........ ..........
3. 1987 ..... X X X .. 396 ... 733 .... 872 .... 731 .... 663 .... 666 .... 663 .....663 ....663 ........ .........
- -----------------------------------------------------------------------------------------------------------------------------------
4. TOTALS ........ .........
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
101
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------------------
<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 ............ ............ NONE ............ ............
6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ ............
7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ ............
8. 1992 ......... X X X X X X X X X X X X X X X X X X ............ ............
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X ............
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
============================================================================
(1) DEVELOPMENT
---------------------------------------------------------
Years in Which (10) (11) (12) (13)
Losses Were
Incurred 1994 1995 One Year Two Year
- ----------------------------------------------------------------------------
<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 ......... ............ ............ ............ X X X
11. 1995 ......... X X X ............ X X X X X X
- ----------------------------------------------------------------------------
12 TOTALS ............ ............
- ----------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2R - SECTION 2
PRODUCT LIABILITY - CLAIMS-MADE
<TABLE>
==============================================================================================================================
<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 ............ ............ NONE ............ ............
6. 1990 ......... X X X X X X X X X X X X ............ ............ ............ ............
7. 1991 ......... X X X X X X X X X X X X X X X ............ ............ ............
8. 1992 ......... X X X X X X X X X X X X X X X X X X ............ ............
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X ............
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
============================================================================
<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 ......... ............ ............ ............ 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 X X X X X X X X X X X X X X X X ............
2. 1994 ......... X X X X X X X X X X X X X X X NONE X X X X X X
3. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
==========================================================================
<S> <C> <C> <C> <C>
1. Prior ........ ............ ............ ............ ............
2. 1994 ......... ............ ............ ............ X X X
3. 1995 ......... X X X ............ X X X X X X
- --------------------------------------------------------------------------
4. TOTALS ............ ............
- --------------------------------------------------------------------------
</TABLE>
102
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
( $000 Omitted )
(For inhouse use only - Do not submit to NAIC)
<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
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------------------
<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 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
Incurred 1994 1995 One Year Two Year
- ----------------------------------------------------------------------------
<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 ......... ............ ............ ............ 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>
==============================================================================================================================
<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 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
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
============================================================================
<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 ......... ............ ............ ............ X X X
11. 1995 ......... X X X ............ X X X X X X
- ----------------------------------------------------------------------------
12 TOTALS ............ ............
- ----------------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 2S - FINANCIAL GUARANTY / MORTGAGE GUARANTY
<TABLE>
==============================================================================================================================
<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 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
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
============================================================================
<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 ......... ............ ............ ............ X X X
11. 1995 ......... X X X ............ X X X X X X
- ----------------------------------------------------------------------------
12 TOTALS ............ ............
- ----------------------------------------------------------------------------
</TABLE>
102B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
<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
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===========================================================================
(1) (12) (13)
------------------------- Number of Number of
Years in Which (10) (11) Claims Closed Claims Closed
Losses Were With Loss Without Loss
Incurred 1994 1995 Payment Payment
- ---------------------------------------------------------------------------
<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 ...... ........ 37 ........ 45 ........ 11 ......... 3
11. 1995 ...... X X X ....... 158 ........ 88 ........ 36
- ---------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3B
PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
===========================================================================
<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 3C
COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
===========================================================================
<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 ........ 30 ........ 11 ......... 8
- ---------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3D - WORKERS' COMPENSATION
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
===========================================================================
<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 ......... 1 ......... 1 ...........
- ---------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ..... 2,148 ..... 2,445 ..... 2,606 ..... 2,773 ...... 3,887 ..... 3,891 ..... 3,913
2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ........ 15
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ........ 53
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
===========================================================================
<S> <C> <C> <C> <C>
1. Prior ..... ..... 3,915 ..... 3,915 ....... 603 ....... 201
2. 1986 ...... ........... ........... ........... ...........
3. 1987 ...... ........... ........... ........... ...........
4. 1988 ...... ........... ........... ........... ...........
5. 1989 ...... ........... ........... ........... ...........
6. 1990 ...... ........... ........... ........... ...........
7. 1991 ...... ........... ........... ........... ...........
8. 1992 ...... ........ 15 ........ 16 ......... 1 ......... 2
9. 1993 ...... ....... 101 ....... 190 ........ 40 ........ 17
10. 1994 ...... ....... 170 ....... 530 ........ 70 ........ 42
11. 1995 ...... X X X ....... 431 ........ 54 ........ 35
- ---------------------------------------------------------------------------
</TABLE>
103
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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 (2) (3) (4) (5) (6) (7) (8) (9)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===========================================================================
(1) (12) (13)
------------------------- Number of Number of
Years in Which (10) (11) Claims Closed Claims Closed
Losses Were With Loss Without Loss
Incurred 1994 1995 Payment Payment
- ---------------------------------------------------------------------------
<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 3F - SECTION 2
MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
======================================================================
<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 3G - SPECIAL LIABILITY
(OCEAN MARINE, AIRCRAFT (ALL PERILS),
BOILER AND MACHINERY)
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
=======================================================================
<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
4. 1988 ...... ........... ........... X X X X X X
5. 1989 ...... ........... ........... X X X X X X
6. 1990 ...... ........... ........... X X X X X X
7. 1991 ...... ........... ........... X X X X X X
8. 1992 ...... ........... ........... X X X X X X
9. 1993 ...... ........... ........... X X X X X X
10. 1994 ...... ........... ........... X X X X X X
11. 1995 ...... X X X ........... X X X X X X
- -----------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3H - SECTION 1
OTHER LIABILITY - OCCURRENCE
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ..... 3,933 ..... 4,051 ..... 4,099 ..... 4,929 ..... 4,950 ..... 5,045 ..... 5,108
2. 1986 ...... ....... 109 ....... 134 ....... 147 ....... 143 ....... 143 ....... 143 ....... 143 ....... 143
3. 1987 ...... X X X ........ 54 ........ 74 ........ 74 ........ 74 ........ 74 ........ 74 ........ 74
4. 1988 ...... X X X X X X ........... ........... ........... ........... ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
======================================================================
<S> <C> <C> <C> <C>
1. Prior ..... ..... 5,134 ..... 5,146 ..... 1,182 ....... 261
2. 1986 ...... ....... 143 ....... 143 ....... 570 ......... 5
3. 1987 ...... ........ 74 ........ 74 ....... 297 ......... 3
4. 1988 ...... ........... ........... ........... ...........
5. 1989 ...... ........... ........... ........... ...........
6. 1990 ...... ........... ........... ........... ...........
7. 1991 ...... ........... ........... ........... ...........
8. 1992 ...... ........... ........... ........... ...........
9. 1993 ...... ........... ........... ........... ...........
10. 1994 ...... ........... ........... ........... ...........
11. 1995 ...... X X X ......... 4 ..........3 ......... 2
- ----------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3H - SECTION 2
OTHER LIABILITY - CLAIMS-MADE
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ...... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ...... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ...... X X X X X X ........... ........... ........... ..N O N E.. ........... ...........
5. 1989 ...... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ...... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ...... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ...... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ...... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ...... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ...... X X X X X X X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
===========================================================================
<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>
104
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 3I - SPECIAL PROPERTY (FIRE,
ALLIED LINES, INLAND MARINE, EARTHQUAKE,
GLASS, BURGLARY, AND THEFT)
<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
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- -----------------------------------------------------------------------------------------------------------------------------------
<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 X X X 0 0 0
2. 1994 .......... X X X X X X X X X X X X X X X X X X X X X X X X
3. 1995 .......... X X X X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
============================================================================
(12) (13)
----------------------------- Number of Number of
(10) (11) Claims Closed Claims Closed
With Loss Without Loss
1994 1995 Payment Payment
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ......... ...... 13,768 ...... 13,771 X X X X X X
2. 1994 .......... ......... 747 ......... 989 X X X X X X
3. 1995 .......... X X X ......... 666 X X X X X X
- -----------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE
<TABLE>
==================================================================================================================================
<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 X X X 0 0 0
2. 1994 .......... X X X X X X X X X X X X X X X X X X X X X X X X
3. 1995 .......... X X X X X X X X X X X X X X X X X X X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
=====================================================================================
<S> <C> <C> <C> <C>
1. Prior ......... .......... 13 .......... 13 .......... 12 ........... 4
2. 1994 .......... ......... 229 ......... 378 ......... 375 ......... 168
3. 1995 .......... X X X ......... 546 ..........471 ......... 192
- -------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3K - FIDELITY / SURETY
<TABLE>
==================================================================================================================================
<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 NONE X X X 0 0 0
2. 1994 .......... X X X X X X X X X X X X X X X X X X X X X
3. 1995 .......... X X X X X X X X X X X X X X X X X X X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
============================================================
<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>
SCHEDULE P - PART 3L - OTHER
(INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
==================================================================================================================================
<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 X X X 0 0 0
2. 1994 .......... X X X X X X X X X X X X X X X X X X X X X X X X
3. 1995 .......... X X X X X X X X X X X X X X X X X X X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------------
======================================================================
<S> <C> <C> <C> <C>
1. Prior ......... ........ 176,682 177,079 X X X X X X
2. 1994 .......... ......... 29,654 48,500 X X X X X X
3. 1995 .......... X X X 35,294 X X X X X X
- ----------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3M - INTERNATIONAL
<TABLE>
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... 0 0 0 .............. ............ ........... ............ ........... ............ ..............
2. 1986 .......... ........ .............. ............ ........... ............ ........... ............ ..............
3. 1987 .......... X X X .............. ............ ........... ............ ........... ............ ..............
4. 1988 .......... X X X X X X ............ ........... ............ NONE ............ ..............
5. 1989 .......... X X X X X X X X X ........... ............ ........... ............ ..............
6. 1990 .......... X X X X X X X X X X X X ............ ........... ............ ..............
7. 1991 .......... X X X X X X X X X X X X X X X ........... ............ ..............
8. 1992 .......... X X X X X X X X X X X X X X X X X X ............ ..............
9. 1993 .......... X X X X X X X X X X X X X X X X X X X X X ..............
10. 1994 .......... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 .......... X X X X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------------------
====================================================================================
<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
4. 1988 .......... ............... .............. X X X X X X
5. 1989 .......... ............... .............. X X X X X X
6. 1990 .......... ............... .............. X X X X X X
7. 1991 .......... ............... .............. X X X X X X
8. 1992 .......... ............... .............. X X X X X X
9. 1993 .......... ............... .............. X X X X X X
10. 1994 .......... ............... .............. X X X X X X
11. 1995 .......... X X X .............. X X X X X X
- ------------------------------------------------------------------------------------
</TABLE>
105
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 3I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY, AND THEFT)
(For inhouse use only - Do not submit to NAIC)
<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
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 0 0 0 ..... 4,449 ..... 4,449 ..... 4,449 ..... 4,449 ..... 4,449 ..... 4,449 ..... 4,449
2. 1986 ......... ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067 ..... 1,067
3. 1987 ......... X X X ..... 1,153 ..... 1,153 ..... 1,153 ..... 1,153 ..... 1,153 ..... 1,153 ..... 1,153
4. 1988 ......... X X X X X X ..... 1,249 ..... 1,249 ..... 1,249 ..... 1,249 ..... 1,249 ..... 1,247
5. 1989 ......... X X X X X X X X X ..... 1,180 ..... 1,181 ..... 1,182 ..... 1,182 ..... 1,182
6. 1990 ......... X X X X X X X X X X X X ..... 1,110 ..... 1,131 ..... 1,131 ..... 1,132
7. 1991 ......... X X X X X X X X X X X X X X X ....... 862 ..... 1,089 ..... 1,080
8. 1992 ......... X X X X X X X X X X X X X X X X X X ..... 1,286 ..... 1,733
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X ....... 639
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X X X X
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===============================================================================
(1) (12) (13)
-------------------------- Number of Number of
Years in Which (10) (11) Claims Closed Claims Closed
Losses Were With Loss Without Loss
Incurred 1994 1995 Payment Payment
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ........ ..... 4,449 ..... 4,449 X X X X X X
2. 1986 ......... ..... 1,067 ..... 1,067 X X X X X X
3. 1987 ......... ..... 1,153 ..... 1,153 X X X X X X
4. 1988 ......... ..... 1,247 ..... 1,249 X X X X X X
5. 1989 ......... ..... 1,183 ..... 1,183 X X X X X X
6. 1990 ......... ..... 1,134 ..... 1,134 X X X X X X
7. 1991 ......... ..... 1,080 ..... 1,080 X X X X X X
8. 1992 ......... ..... 1,732 ..... 1,735 X X X X X X
9. 1993 ......... ....... 723 ....... 723 X X X X X X
10. 1994 ......... ....... 747 ....... 989 X X X X X X
11. 1995 ......... X X X ....... 666 X X X X X X
- -------------------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE
<TABLE>
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ......... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ......... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ......... X X X X X X ........... ........... ........... ........... ........... ...........
5. 1989 ......... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ......... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ......... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ......... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X ........ 5
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------------
=========================================================================
<S> <C> <C> <C> <C>
1. Prior ........ ........... ........... ........... ...........
2. 1986 ......... ........... ........... ........... ...........
3. 1987 ......... ........... ........... ........... ...........
4. 1988 ......... ........... ........... ........... ...........
5. 1989 ......... ........... ........... ........... ...........
6. 1990 ......... ........... ........... ........... ...........
7. 1991 ......... ........... ........... ........... ...........
8. 1992 ......... ........... ........... ........... ...........
9. 1993 ......... ....... 13 ....... 13 ....... 14 ........ 5
10. 1994 ......... ...... 229 ...... 378 ...... 375 ...... 168
11. 1995 ......... X X X ...... 546 ...... 471 ...... 192
- ------------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 3K - FIDELITY / SURETY
<TABLE>
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ......... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ......... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ......... X X X X X X ........... ........... ........... ........... ........... ...........
5. 1989 ......... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ......... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ......... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ......... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------------
=========================================================================
<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
4. 1988 ......... ........... ........... X X X X X X
5. 1989 ......... ........... ........... X X X X X X
6. 1990 ......... ........... ........... X X X X X X
7. 1991 ......... ........... ........... X X X X X X
8. 1992 ......... ........... ........... X X X X X X
9. 1993 ......... ........... ........... X X X X X X
10. 1994 ......... ........... ........... X X X X X X
11. 1995 ......... X X X ........... X X X X X X
- ------------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ......... ..... 8,327 ..... 8,445 ..... 8,528 ..... 8,528 ..... 8,528 ..... 8,572 ..... 8,572 ..... 8,572
3. 1987 ......... X X X .... 10,252 .... 10,447 .... 10,670 .... 10,627 .... 10,636 .... 10,651 .... 10,651
4. 1988 ......... X X X X X X .... 13,555 .... 14,496 .... 14,741 .... 14,684 .... 14,696 .... 14,696
5. 1989 ......... X X X X X X X X X .... 19,272 .... 21,164 .... 21,404 .... 21,409 .... 21,409
6. 1990 ......... X X X X X X X X X X X X .... 12,692 .... 21,273 .... 21,470 .... 21,474
7. 1991 ......... X X X X X X X X X X X X X X X .... 11,099 .... 20,072 .... 20,453
8. 1992 ......... X X X X X X X X X X X X X X X X X X .... 16,048 .... 32,534
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X .... 27,616
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------------
=========================================================================
<S> <C> <C> <C> <C>
1. Prior ........ ........... ........... X X X X X X
2. 1986 ......... ..... 8,572 ..... 8,572 X X X X X X
3. 1987 ......... .... 10,651 .... 10,651 X X X X X X
4. 1988 ......... .... 14,697 .... 14,697 X X X X X X
5. 1989 ......... .... 21,408 .... 21,408 X X X X X X
6. 1990 ......... .... 21,475 .... 21,474 X X X X X X
7. 1991 ......... .... 20,464 .... 20,464 X X X X X X
8. 1992 ......... .... 32,940 .... 32,948 X X X X X X
9. 1993 ......... .... 46,475 .... 46,866 X X X X X X
10. 1994 ......... .... 29,654 .... 48,500 X X X X X X
11. 1995 ......... X X X .... 35,294 X X X X X X
- ------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3M - INTERNATIONAL
<TABLE>
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 0 0 0 ........... ........... ........... ........... ........... ........... ...........
2. 1986 ......... ........... ........... ........... ........... ........... ........... ........... ...........
3. 1987 ......... X X X ........... ........... ........... ........... ........... ........... ...........
4. 1988 ......... X X X X X X ........... ........... ........... ........... ........... ...........
5. 1989 ......... X X X X X X X X X ........... ........... ........... ........... ...........
6. 1990 ......... X X X X X X X X X X X X ........... ........... ........... ...........
7. 1991 ......... X X X X X X X X X X X X X X X ........... ........... ...........
8. 1992 ......... X X X X X X X X X X X X X X X X X X ........... ...........
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X ...........
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------------
=========================================================================
<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
4. 1988 ......... ........... ........... X X X X X X
5. 1989 ......... ........... ........... X X X X X X
6. 1990 ......... ........... ........... X X X X X X
7. 1991 ......... ........... ........... X X X X X X
8. 1992 ......... ........... ........... X X X X X X
9. 1993 ......... ........... ........... X X X X X X
10. 1994 ......... ........... ........... X X X X X X
11. 1995 ......... X X X ........... X X X X X X
- ------------------------------------------------------------------------
</TABLE>
105B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. 1988 .......... X X X X X X ........ 142 ......... 419 ......... 622 ......... 627 ......... 637 ......... 638
2. 1989 .......... X X X X X X X X X ......... 191 ......... 930 ....... 1,187 ....... 1,274 ....... 1,370
3. 1990 .......... X X X X X X X X X X X X ......... 186 ......... 790 ......... 821 ......... 872
4. 1991 .......... X X X X X X X X X X X X X X X .......... 75 ....... 1,234 ....... 1,333
5. 1992 .......... X X X X X X X X X X X X X X X X X X ....... 1,290 ....... 2,545
6. 1993 .......... X X X X X X X X X X X X X X X X X X X X X ......... 873
7. 1994 .......... X X X X X X X X X X X X X X X X X X X X X X X X
8. 1995 .......... X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==================================================================================
(1) (12) (13)
Number of Number of
Years in Which (10) (11) Claims Closed Claims Closed
Losses Were With Loss Without Loss
Incurred 1994 1995 Payment Payment
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 1988 .......... ......... 639 ......... 642 X X X X X X
2. 1989 .......... ....... 1,534 ....... 1,539 X X X X X X
3. 1990 .......... ......... 874 ......... 880 X X X X X X
4. 1991 .......... ....... 1,425 ....... 1,474 X X X X X X
5. 1992 .......... ....... 2,898 ....... 3,286 X X X X X X
6. 1993 .......... ....... 2,694 ....... 3,430 X X X X X X
7. 1994 .......... ....... 2,029 ....... 4,873 X X X X X X
8. 1995 .......... X X X ....... 1,564 X X X X X X
- ----------------------------------------------------------------------------------
</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 ........... ......... 621 ..... 1,088 ...... 2,554 ...... 2,883 ...... 2,882
2. 1989 .......... X X X X X X X X X ............. ....... 159 ........ 315 ...... 2,210 ...... 2,551
3. 1990 .......... X X X X X X X X X X X X ........... ........ 520 ........ 889 ...... 2,475
4. 1991 .......... X X X X X X X X X X X X X X X ............ ........ 291 ........ 578
5. 1992 .......... X X X X X X X X X X X X X X X X X X ......... 48 ........ 415
6. 1993 .......... X X X X X X X X X X X X X X X X X X X X X ......... 99
7. 1994 .......... X X X X X X X X X X X X X X X X X X X X X X X X
8. 1995 .......... X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
=================================================================================
<S> <C> <C> <C> <C>
1. 1988 .......... ....... 3,315 ....... 3,780 X X X X X X
2. 1989 .......... ....... 2,574 ....... 2,858 X X X X X X
3. 1990 .......... ....... 2,883 ....... 3,591 X X X X X X
4. 1991 .......... ....... 1,340 ....... 3,381 X X X X X X
5. 1992 .......... ....... 1,326 ....... 2,340 X X X X X X
6. 1993 .......... ......... 822 ....... 1,935 X X X X X X
7. 1994 .......... .......... 25 ....... 1,290 X X X X X X
8. 1995 .......... X X X ......... 374 X X X X X X
- ----------------------------------------------------------------------------------
</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 ............. NONE ............. .............
4. 1991 .......... X X X X X X X X X X X X X X X ............. ............. .............
5. 1992 .......... X X X X X X X X X X X X X X X X X X ............. .............
6. 1993 .......... X X X X X X X X X X X X X X X X X X X X X .............
7. 1994 .......... X X X X X X X X X X X X X X X X X X X X X X X X
8. 1995 .......... X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
==================================================================================
<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 ......... 0 0 0 ............ ............. ............. ............. ............. ............. .............
2. 1986 .......... ........... ............ ............. ............. ............. ............. ............. .............
3. 1987 .......... X X X ......... 32 ......... 271 ......... 304 ......... 583 ......... 613 ......... 613 ......... 612
- ------------------------------------------------------------------------------------------------------------------------------------
==================================================================================
<S> <C> <C> <C> <C>
1. Prior ......... ............ ............. X X X X X X
2. 1986 .......... ............ ............. X X X X X X
3. 1987 .......... ........ 612 ......... 612 X X X X X X
- ----------------------------------------------------------------------------------
</TABLE>
106
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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
Incurred 1986 1987 1988 1989 1990 1991 1992 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .......... 0 0 0 ............. ............ ............ ............. ............ ............. .............
2. 1986 ........... .......... ............. ............ ............ ............. ............ ............. .............
3. 1987 ........... X X X ............. ............ ............ ............. ............ ............. .............
4. 1988 ........... X X X X X X ............ ............ ............. ............ ............. .............
5. 1989 ........... X X X X X X X X X ............ ............. NONE ............. .............
6. 1990 ........... X X X X X X X X X X X X ............. ............ ............. .............
7. 1991 ........... X X X X X X X X X X X X X X X ............ ............. .............
8. 1992 ........... X X X X X X X X X X X X X X X X X X ............. .............
9. 1993 ........... X X X X X X X X X X X X X X X X X X X X X .............
10. 1994 ........... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........... X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==================================================================================
(1) (12) (13)
Number of Number of
Years in Which (10) (11) Claims Closed Claims Closed
Losses Were With Loss Without Loss
Incurred 1994 1995 Payment Payment
- ----------------------------------------------------------------------------------
<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 3R - SECTION 2
PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior .......... 0 0 0 ............. ............ ............ ............. ............ ............. .............
2. 1986 ........... .......... ............. ............ ............ ............. ............ ............. .............
3. 1987 ........... X X X ............. ............ ............ ............. ............ ............. .............
4. 1988 ........... X X X X X X ............ ............ ............. ............. .............
5. 1989 ........... X X X X X X X X X ............ ............. NONE ............. .............
6. 1990 ........... X X X X X X X X X X X X ............. ............ ............. .............
7. 1991 ........... X X X X X X X X X X X X X X X ............ ............. .............
8. 1992 ........... X X X X X X X X X X X X X X X X X X ............. .............
9. 1993 ........... X X X X X X X X X X X X X X X X X X X X X .............
10. 1994 ........... X X X X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........... X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
==================================================================================
<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 GUARANTY / MORTGAGE GUARANTY
<TABLE>
====================================================================================================================================
<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 NONE X X X 0 0 0
2. 1994 .......... X X X X X X X X X X X X X X X ..... X X X X X X
3. 1995 .......... X X X X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
==================================================================================
<S> <C> <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 X X X
- ----------------------------------------------------------------------------------
</TABLE>
107
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 3R - SECTION 1 PRODUCTS LIABILITY - OCCURRENCE
(For inhouse use only - Do not submit to NAIC)
<TABLE>
<CAPTION>
=======================================================================================================================
(1) CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
----------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 0 0 0 ............ ............ ............ ............ ............ ............
2. 1986 ......... ............ ............ ............ ............ ............ ............ ............
3. 1987 ......... X X X ............ ............ ............ ............ ............ ............
4. 1988 ......... X X X X X X ............ ............ ............ ............ ............
5. 1989 ......... X X X X X X X X X ............ ............ ............ ............
6. 1990 ......... X X X X X X X X X X X X ............ ............ ............
7. 1991 ......... X X X X X X X X X X X X X X X ............ ............
8. 1992 ......... X X X X X X X X X X X X X X X X X X ............
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================================
(1) (12) (13)
-------------------------------------------- Number of Number of
Years in Which (9) (10) (11) Claims Closed Claims Closed
Losses Were With Loss Without Loss
Incurred 1993 1994 1995 Payment Payment
- ------------------------------------------------------------------------------------------------
<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 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 0 0 0 ............ ............ ............ ............ ............ ............
2. 1986 ......... ............ ............ ............ ............ ............ ............ ............
3. 1987 ......... X X X ............ ............ ............ ............ ............ ............
4. 1988 ......... X X X X X X ............ ............ ............ ............ ............
5. 1989 ......... X X X X X X X X X ............ ............ ............ ............
6. 1990 ......... X X X X X X X X X X X X ............ ............ ............
7. 1991 ......... X X X X X X X X X X X X X X X ............ ............
8. 1992 ......... X X X X X X X X X X X X X X X X X X ............
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------
==============================================================================================
<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>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 3S - FINANCIAL GUARANTY / MORTGAGE GUARANTY
<TABLE>
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ 0 0 0 ............ ............ ............ ............ ............ ............
2. 1986 ......... ............ ............ ............ ............ ............ ............ ............
3. 1987 ......... X X X ............ ............ ............ ............ ............ ............
4. 1988 ......... X X X X X X ............ ............ ............ ............ ............
5. 1989 ......... X X X X X X X X X ............ ............ ............ ............
6. 1990 ......... X X X X X X X X X X X X ............ ............ ............
7. 1991 ......... X X X X X X X X X X X X X X X ............ ............
8. 1992 ......... X X X X X X X X X X X X X X X X X X ............
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------
==========================================================================================
<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>
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
=======================================================================================================================
(1) BULK AND INCURRED BUT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
----------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- -----------------------------------------------------------------------------------------------------------------------
<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 ............ ............ ............ ............
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 .......... 3 .......... 5
11. 1995 ......... X X X X X X ......... 43
- -----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4B
PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<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 ............ NONE ............ ............
6. 1990 ......... X X X X X X X X X X X X ............ ............ ............
7. 1991 ......... X X X X X X X X X X X X X X X ............ ............
8. 1992 ......... X X X X X X X X X X X X X X X X X X ............
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------
=================================================================
<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 4C
COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<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 ............ ............ ............ ............
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 ......... 27
- -----------------------------------------------------------------
</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 X X X ............ ............ ............ ............
6. 1990 ......... X X X X X X X X X X X X ............ ............ ............
7. 1991 ......... X X X X X X X X X X X X X X X ............ ............
8. 1992 ......... X X X X X X X X X X X X X X X X X X ............
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------
=================================================================
<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 .......... 1
- -----------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ ........ 155 ........ 605 ........ 138 ........ 236 ........ 121 ........ 283 ......... 11
2. 1986 ......... ............ ............ ............ ............ ............ ............ ............
3. 1987 ......... X X X ............ ............ ............ ............ ............ ............
4. 1988 ......... X X X X X X ............ ............ ............ ............ ............
5. 1989 ......... X X X X X X X X X ............ ............ ............ ............
6. 1990 ......... X X X X X X X X X X X X ............ ............ ............
7. 1991 ......... X X X X X X X X X X X X X X X ............ ............
8. 1992 ......... X X X X X X X X X X X X X X X X X X ......... 10
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- -----------------------------------------------------------------------------------------------------------------------
=================================================================
<S> <C> <C> <C>
1. Prior ........ .......... 8 .......... 8 .......... 8
2. 1986 ......... ............ ............ ............
3. 1987 ......... ............ ............ ............
4. 1988 ......... ............ ............ ............
5. 1989 ......... ............ ............ ............
6. 1990 ......... ............ ............ ............
7. 1991 ......... ............ ............ ............
8. 1992 ......... ......... 31 ............ ............
9. 1993 ......... ........ 124 ......... 78 ............
10. 1994 ......... X X X ........ 183 ........ 156
11. 1995 ......... X X X X X X ........ 471
- -----------------------------------------------------------------
</TABLE>
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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 (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 ........ ........ N O N E ........ ........
5. 1989 ........ X X X X X X X X X ........ ........ ........ ........
6. 1990 ........ X X X X X X X X X X X X ........ ........ ........
7. 1991 ........ X X X X X X X X X X X X X X X ........ ........
8. 1992 ........ X X X X X X X X X X X X X X X X X X ........
9. 1993 ........ X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........ X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........ X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<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>
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 ........ ........ N O N E ........ ........
5. 1989 ........ X X X X X X X X X ........ ........ ........ ........
6. 1990 ........ X X X X X X X X X X X X ........ ........ ........
7. 1991 ........ X X X X X X X X X X X X X X X ........ ........
8. 1992 ........ X X X X X X X X X X X X X X X X X X ........
9. 1993 ........ X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........ X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........ X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
===========================================================
<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 ........ ........ N O N E ........ ........
5. 1989 ........ X X X X X X X X X ........ ........ ........ ........
6. 1990 ........ X X X X X X X X X X X X ........ ........ ........
7. 1991 ........ X X X X X X X X X X X X X X X ........ ........
8. 1992 ........ X X X X X X X X X X X X X X X X X X ........
9. 1993 ........ X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........ X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........ X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
==============================================================
<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 ........ .....516 .....949 .....952 .....662 .....667 .....458 .....20
2. 1986 ........ ........ ........ ........ ........ ........ ........ ........
3. 1987 ........ X X X ........ ........ ........ ........ ........ ........
4. 1988 ........ X X X X X X ........ ........ ........ ........ ........
5. 1989 ........ X X X X X X X X X ........ ........ ........ ........
6. 1990 ........ X X X X X X X X X X X X ........ ........ ........
7. 1991 ........ X X X X X X X X X X X X X X X ........ ........
8. 1992 ........ X X X X X X X X X X X X X X X X X X ........
9. 1993 ........ X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........ X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........ X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------
==============================================================
<S> <C> <C> <C>
1. Prior ........ ......15 ......15 .......8
2. 1986 ........ ........ ........ ........
3. 1987 ........ ........ ........ ........
4. 1988 ........ ........ ........ ........
5. 1989 ........ ........ ........ ........
6. 1990 ........ ........ ........ ........
7. 1991 ........ ........ ........ ........
8. 1992 ........ ........ ........ ........
9. 1993 ........ ........ ........ ........
10. 1994 ........ X X X ........ ........
11. 1995 ........ X X X X X X .....257
- --------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4H - SECTION 2
OTHER LIABILITY - 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 ........ ........ N O N E ........ ........
5. 1989 ........ X X X X X X X X X ........ ........ ........ ........
6. 1990 ........ X X X X X X X X X X X X ........ ........ ........
7. 1991 ........ X X X X X X X X X X X X X X X ........ ........
8. 1992 ........ X X X X X X X X X X X X X X X X X X ........
9. 1993 ........ X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........ X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........ X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
=============================================================
<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>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 4I - SPECIAL PROPERTY (FIRE,
ALLIED LINES, INLAND MARINE, EARTHQUAKE,
GLASS, BURGLARY AND THEFT)
<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) (10) (11)
Losses 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 ........ X X X X X X X X X X X X X X X X X X X X X ........81 ........36 ..........
2. 1994 ........ X X X X X X X X X X X X X X X X X X X X X X X X .......155 ........28
3. 1995 ........ X X X X X X X X X X X X X X X X X X X X X X X X X X X .......190
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
<TABLE>
===================================================================================================================================
<S> <C> <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 .......... ..........
2. 1994 ........ X X X X X X X X X X X X X X X X X X X X X X X X ........21 ..........
3. 1995 ........ X X X X X X X X X X X X X X X X X X X X X X X X X X X ........47
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4K - FIDELITY / SURETY
<TABLE>
===================================================================================================================================
<S> <C> <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 X X X X X X X X X X X X X X X .........3
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4L - OTHER
(INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
===================================================================================================================================
<S> <C> <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 .....10.342 .......150 ..........
2. 1994 ........ X X X X X X X X X X X X X X X X X X X X X X X X .....9,365 .......101
3. 1995 ........ X X X X X X X X X X X X X X X X X X X X X X X X X X X .....9,247
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4M - INTERNATIONAL
<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 ........ ........ N O N E ........ ........
5. 1989 ........ X X X X X X X X X ........ ....... ........ ........
6. 1990 ........ X X X X X X X X X X X X ........ ........ ........
7. 1991 ........ X X X X X X X X X X X X X X X ........ ........
8. 1992 ........ X X X X X X X X X X X X X X X X X X ........
9. 1993 ........ X X X X X X X X X X X X X X X X X X X X X
10. 1994 ........ X X X X X X X X X X X X X X X X X X X X X
11. 1995 ........ X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
===============================================================
<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>
110
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 4I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,
EARTHQUAKE, GLASS, BURGLARY AND THEFT)
(For inhouse use only - Do not submit to NAIC)
<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)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ ............. ............. ............. ............. ............. ............. .............
2. 1986 ......... .......... 61 ............. ............. ............. ............. ............. .............
3. 1987 ......... X X X .......... 62 ............. ............. ............. ............. .............
4. 1988 ......... X X X X X X .......... 66 ............. ............. ............. .............
5. 1989 ......... X X X X X X X X X .......... 82 .......... 17 ............. .............
6. 1990 ......... X X X X X X X X X X X X ......... 104 ........... 8 .............
7. 1991 ......... X X X X X X X X X X X X X X X .......... 35 .......... 10
8. 1992 ......... X X X X X X X X X X X X X X X X X X ......... 311
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================================
(1) (9) (10) (11)
Years in Which 1993 1994 1995
Losses Were
Incurred
- ------------------------------------------------------------------------
<S> <C> <C> <C>
1. Prior ........ ............. ............. .............
2. 1986 ......... ............. ............. .............
3. 1987 ......... ............. ............. .............
4. 1988 ......... ............. ............. .............
5. 1989 ......... ............. ............. .............
6. 1990 ......... ............. ............. .............
7. 1991 ......... ............. ............. .............
8. 1992 ......... .......... 15 ............. .............
9. 1993 ......... .......... 66 .......... 36 .............
10. 1994 ......... X X X ......... 135 .......... 28
11. 1995 ......... X X X X X X ......... 190
- ------------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
<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 ............. ............. ............. .............
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 ......... ........... 2 ............. .............
10. 1994 ......... X X X .......... 21 .............
11. 1995 ......... X X X X X X .......... 47
- ----------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 4K - FIDELITY / SURETY
<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 ............. ............. ............. .............
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 ........... 3
- ----------------------------------------------------------------------
</TABLE>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........ ............. ............. ............. ............. ............. ............. .............
2. 1986 ......... ....... 1,820 ......... 189 ............. ............. ............. ............. .............
3. 1987 ......... X X X ....... 5,018 ......... 194 ............. ............. ............. .............
4. 1988 ......... X X X X X X ....... 8,546 ............. .......... 21 ............. .............
5. 1989 ......... X X X X X X X X X ....... 4,558 ......... 201 ............. .............
6. 1990 ......... X X X X X X X X X X X X ....... 4,965 ........... 4 .............
7. 1991 ......... X X X X X X X X X X X X X X X ......... 196 .......... 50
8. 1992 ......... X X X X X X X X X X X X X X X X X X ....... 7,172
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- -------------------------------------------------------------------------------------------------------------------------------
======================================================================
<S> <C> <C> <C>
1. Prior ........ ............. ............. .............
2. 1986 ......... ............. ............. .............
3. 1987 ......... ............. ............. .............
4. 1988 ......... ............. ............. .............
5. 1989 ......... ............. ............. .............
6. 1990 ......... ............. ............. .............
7. 1991 ......... ........... 1 ............. .............
8. 1992 ......... ........... 8 ........... 1 .............
9. 1993 ......... ...... 10,333 ......... 149 .............
10. 1994 ......... X X X ....... 9,365 ......... 101
11. 1995 ......... X X X X X X ....... 9,247
- ----------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4M - INTERNATIONAL
<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 ............. ............. ............. .............
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>
110B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991 1992
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ........ X X X X X X ........ 543 ........ 271 ........ 311 ......... 83 ......... 68
2. 1989 ......... X X X X X X X X X ........ 967 ........ 438 ........ 211 ......... 58
3. 1990 ......... X X X X X X X X X X X X ........ 965 ........ 618 ........ 223
4. 1991 ......... X X X X X X X X X X X X X X X ........ 689 ........ 331
5. 1992 ......... X X X X X X X X X X X X X X X X X X ........ 524
6. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
7. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
8. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
====================================================================
(1) (9) (10) (11)
Years in Which
Losses Were
Incurred 1990 1991 1992
- --------------------------------------------------------------------
<S> <C> <C> <C>
1. 1988 ........ ......... 15 ......... 12 ............
2. 1989 ......... ......... 57 .......... 1 ............
3. 1990 ......... ........ 154 ......... 55 ............
4. 1991 ......... ........ 217 ........ 108 ......... 58
5. 1992 ......... ........ 357 ........ 340 ........ 248
6. 1993 ......... ...... 1,339 ........ 811 ........ 703
7. 1994 ......... X X X ........ 992 ........ 856
8. 1995 ......... X X X X X X ...... 3,880
- --------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4O - REINSURANCE B
<TABLE>
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1. 1988 ........ X X X X X X ...... 3,879 ...... 2,881 ...... 2,408 ...... 1,126 ........ 637
2. 1989 ......... X X X X X X X X X ...... 7,387 ...... 7,223 ...... 6,330 ...... 4,689
3. 1990 ......... X X X X X X X X X X X X ...... 7,348 ...... 6,336 ...... 5,060
4. 1991 ......... X X X X X X X X X X X X X X X ...... 5,205 ...... 4,548
5. 1992 ......... X X X X X X X X X X X X X X X X X X ...... 4,625
6. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
7. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
8. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================
<S> <C> <C> <C>
1. 1988 ........ ........ 830 ........ 578 ........ 303
2. 1989 ......... ...... 3,853 ...... 2,258 ...... 1,707
3. 1990 ......... ...... 3,842 ...... 3,280 ...... 2,732
4. 1991 ......... ...... 4,124 ...... 4,074 ...... 3,056
5. 1992 ......... ...... 3,668 ...... 2,664 ...... 2,003
6. 1993 ......... ...... 3,948 ...... 2,969 ...... 2,136
7. 1994 ......... X X X ...... 5,102 ...... 4,229
8. 1995 ......... X X X X X X ...... 9,461
- --------------------------------------------------------------------
</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 X X X NONE ............. .............
4. 1991 ......... X X X X X X X X X X X X X X X ............. .............
5. 1992 ......... X X X X X X X X X X X X X X X X X X .............
6. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
7. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
8. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================
<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. 1986 ......... ............. ............. ............. ............. ............. ............. .............
3. 1987 ......... X X X ........ 373 ........ 460 ........ 292 ........ 165 ..........50 ......... 53
- --------------------------------------------------------------------------------------------------------------------------------
=================================================================
<S> <C> <C> <C>
1. Prior ........ ............. ............. .............
2. 1986 ......... ............. ............. .............
3. 1987 ......... ......... 51 ......... 51 ......... 51
- -----------------------------------------------------------------
</TABLE>
111
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 4R - SECTION 1
PRODUCTS LIABILITY - OCCURRENCE
<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)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991
- --------------------------------------------------------------------------------------------------------------------------------
<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>
====================================================================================
(1)
-----------------------------------------------------------------
Years in Which (8) (9) (10) (11)
Losses Were
Incurred 1992 1993 1994 1995
- ------------------------------------------------------------------------------------
<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>
SCHEDULE P - PART 4R - SECTION 2
PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ......... ......... ......... ...
2. 1986 ......... ......... ......... ...
3. 1987 ......... X X X ......... ...
4. 1988 ......... X X X X X X ... N O N E
5. 1989 ......... X X X X X X
6. 1990 ......... X X X X X X
7. 1991 ......... X X X X X X
8. 1992 ......... X X X X X X
9. 1993 ......... X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
====================================================================================
(1)
-----------------------------------------------------------------
Years in Which (8) (9) (10) (11)
Losses Were
Incurred 1992 1993 1994 1995
- ------------------------------------------------------------------------------------
<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>
SCHEDULE P - PART 4S - FINANCIAL GUARANTY / MORTGAGE GUARANTY
<TABLE>
====================================================================================================================================
<S> <C> <C> <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 X X X X X X ......... ......... .........
2. 1994 ......... X X X X X X X X X X X X X X X X X X X X X X X X ......... .........
3. 1995 ......... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
112
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
(For inhouse use only - Do not submit to NAIC)
<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)
Losses Were
Incurred 1986 1987 1988 1989 1990 1991
- ---------------------------------------------------------------------------------------------------------------------------------
<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>
=================================================================================================================================
(1)
-------------------------------------------------------------------------------------------------------------
Years in Which (8) (9) (10) (11)
Losses Were
Incurred 1992 1993 1994 1995
- ------------------------------------------------------------------------------------
<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>
SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
=================================================================================================================================
<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
- ---------------------------------------------------------------------------------------------------------------------------------
====================================================================================
<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>
10 YEAR BREAKOUT FOR
SCHEDULE P - PART 4S - FINANCIAL GUARANTY / MORTGAGE GUARANTY
<TABLE>
=================================================================================================================================
<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
- -------------------------------------------------------------------------------------------------------------------------------
====================================================================================
<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>
112B
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 5A - HOMEOWNERS / FARMOWNERS
SECTION 1
<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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ............ ............ ............ ...........
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)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 ............. 7 ............. 11
11. 1995 .......... X X X X X X ............. 88
- ---------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
====================================================================================================================================
(1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<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 ............ ............ ............ ...........
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)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 ............. 2 ................
11. 1995 .......... X X X X X X ............. 10
- ---------------------------------------------------------------------------
</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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <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 .......... X X X ............ ............ ............ ............ ............ ...........
4. 1988 .......... X X X X X X ............ ............ ............ ............ ...........
5. 1989 .......... X X X X X X X X X ............ ............ ............ ...........
6. 1990 .......... X X X X X X X X X X X X ............ ............ ...........
7. 1991 .......... X X X X X X X X X X X X X X X ............ ...........
8. 1992 .......... X X X X X X X X X X X X X X X X X X ...........
9. 1993 .......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 .......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 .......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===========================================================================
(1)
---------------------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
Incurred
- ---------------------------------------------------------------------------
<S> <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 .......... ............. ............... ................
8. 1992 .......... ............. ............... ................
9. 1993 .......... ............. ............... ................
10. 1994 .......... X X X ............. 9 ............. 14
11. 1995 .......... X X X X X X ............ 134
- ---------------------------------------------------------------------------
</TABLE>
113
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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 in Which (2) (3) (4) (5) (6) (7) (8)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <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
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)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 ................
- ---------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
====================================================================================================================================
(1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <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
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) CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
-----------------------------------------------------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
Incurred
- ---------------------------------------------------------------------------
<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 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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... X X X X X X ....
2. 1986 .......... ............ ............ ....
3. 1987 .......... X X X ............ .... N O N E
4. 1988 .......... X X X X X X ....
5. 1989 .......... X X X X X X X X X ............ ............ ............ ...........
6. 1990 .......... X X X X X X X X X X X X ............ ............ ...........
7. 1991 .......... X X X X X X X X X X X X X X X ............ ...........
8. 1992 .......... X X X X X X X X X X X X X X X X X X ...........
9. 1993 .......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 .......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 .......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===========================================================================================================
(1)
-----------------------------------------------------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
Incurred
- ---------------------------------------------------------------------------
<S> <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 .......... ............. ............... ................
8. 1992 .......... ............. ............... ................
9. 1993 .......... ............. ............... ................
10. 1994 .......... X X X ............... ................
11. 1995 .......... X X X X X X ................
- ---------------------------------------------------------------------------
</TABLE>
114
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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 in Which (2) (3) (4) (5) (6) (7) (8)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------
<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 ............ ............ ............ ............
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)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 ........ 11
- -----------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
=======================================================================================================================
(1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
--------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------
<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 ............ ............ ............ ............
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)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 ......... 34
- -----------------------------------------------------------------
</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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------
<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 ............ ............ ............ ............
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)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 ......... 53
- -----------------------------------------------------------------
</TABLE>
115
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 1
<TABLE>
<CAPTION>
=======================================================================================================================
(1) CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
----------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------
<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 ............ ............ ............ ............
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)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .......... 1
- -----------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
=======================================================================================================================
(1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
----------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------
<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 ............ ............ ............ ............
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)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .......... 4
- -----------------------------------------------------------------
</TABLE>
SECTION 3
<TABLE>
<CAPTION>
=======================================================================================================================
(1) CUMULATIVE NUMBER OF CLAIMS REPORTED AND ASSUMED AT YEAR END
----------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------
<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 ............ ............ ............ ............
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)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .......... 5
- -----------------------------------------------------------------
</TABLE>
116
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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 in Which (2) (3) (4) (5) (6) (7)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ ................ ................ ................ ............ 594 ............ 598 ............ 599
2. 1986 ......... ................ ................ ................ ................ ................ ................
3. 1987 ......... X X X ................ ................ ................ ................ ................
4. 1988 ......... X X X X X X ................ ................ ................ ................
5. 1989 ......... X X X X X X X X X ................ ................ ................
6. 1990 ......... X X X X X X X X X X X X ................ ................
7. 1991 ......... X X X X X X X X X X X X X X X ................
8. 1992 ......... X X X X X X X X X X X X X X X X X X
9. 1993 ......... X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
====================================================================================
(1)
-----------------------------------------------------------------
Years in Which (8) (9) (10) (11)
Premiums Were
Earned and 1993 1993 1994 1995
Losses Were
Incurred
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ....... ........... 599 .......... 603 ............ 603 ............ 604
2. 1986 ........ ............... .............. ................ ................
3. 1987 ........ ............... .............. ................ ................
4. 1988 ........ ............... .............. ................ ................
5. 1989 ........ ............... .............. ................ ................
6. 1990 ........ ............... .............. ................ ................
7. 1991 ........ ............... .............. ................ ................
8. 1992 ........ ............... ............ 2 .............. 2 .............. 2
9. 1993 ........ X X X ........... 19 ............. 30 ............. 40
10. 1994 ........ X X X X X X ............. 32 ............. 70
11. 1995 ........ X X X X X X X X X ............. 54
- ------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
==========================================================================================================================
(1) NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
-------------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991
Losses Were
Incurred
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ ............ 110 ............. 85 ............. 59 ............. 29 ............. 14 ............. 10
2. 1986 ......... ................ ................ ................ ................ ................ ................
3. 1987 ......... X X X ................ ................ ................ ................ ................
4. 1988 ......... X X X X X X ................ ................ ................ ................
5. 1989 ......... X X X X X X X X X ................ ................ ................
6. 1990 ......... X X X X X X X X X X X X ................ ................
7. 1991 ......... X X X X X X X X X X X X X X X ................
8. 1992 ......... X X X X X X X X X X X X X X X X X X
9. 1993 ......... X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
====================================================================================
(1)
-----------------------------------------------------------------
Years in Which (8) (9) (10) (11)
Premiums Were
Earned and 1993 1993 1994 1995
Losses Were
Incurred
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ........ .......... 10 .......... 2 ............. 2 ............. 1
2. 1986 ......... ............. ............. ................ ................
3. 1987 ......... ............. ............. ................ ................
4. 1988 ......... ............. ............. ................ ................
5. 1989 ......... ............. ............. ................ ................
6. 1990 ......... ............. ............. ................ ................
7. 1991 ......... ............. ............. ................ ................
8. 1992 ......... ........... 2 ........... 2 .............. 2 ............. 1
9. 1993 ......... X X X .......... 57 ............. 23 ............. 3
10. 1994 ......... X X X X X X ............. 78 ............ 22
11. 1995 ......... X X X X X X X X X ............ 64
- ------------------------------------------------------------------------------------
</TABLE>
SECTION 3
<TABLE>
=========================================================================================================================
(1) CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
-----------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------
<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. 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>
====================================================================================
(1)
----------------------------------------------------------------
Years in Which (8) (9) (10) (11)
Premiums Were
Earned and 1993 1993 1994 1995
Losses Were
Incurred
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior ........ X X X X X X X X X X X X
2. 1986 ......... .............. .............. ................ ................
3. 1987 ......... .............. .............. ................ ................
4. 1988 ......... .............. .............. ................ ................
5. 1989 ......... .............. .............. ................ ................
6. 1990 ......... .............. .............. ................ ................
7. 1991 ......... .............. .............. ................ ................
8. 1992 ......... ............ 4 ............ 5 .............. 5 .............. 5
9. 1993 ......... X X X ........... 47 ............. 57 ............. 60
10. 1994 ......... X X X X X X ............. 98 ............ 134
11. 1995.......... X X X X X X X X X ............ 153
- ------------------------------------------------------------------------------------
</TABLE>
117
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 1A
<TABLE>
=========================================================================================================================
(1) CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
-----------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------
<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 N O N E
6. 1990 ......... X X X X X X
7. 1991 ......... X X X X X X
8. 1992 ......... X X X X X X
9. 1993 ......... X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=========================================================================================
(1)
Years in Which (8) (9) (10) (11)
Premiums Were
Earned and 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------
<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>
SECTION 2A
<TABLE>
=========================================================================================================================
(1) CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
-----------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------
<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 N O N E
6. 1990 ......... X X X X X X
7. 1991 ......... X X X X X X
8. 1992 ......... X X X X X X
9. 1993 ......... X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=========================================================================================
(1)
Years in Which (8) (9) (10) (11)
Premiums Were
Earned and 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------
<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>
SECTION 3A
<TABLE>
=========================================================================================================================
(1) CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
-----------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ X X X X X X ....
2. 1986 ......... ................ ................ ....
3. 1987 ......... X X X ................ ....
4. 1988 ......... X X X X X X ....
5. 1989 ......... X X X X X X N O N E
6. 1990 ......... X X X X X X
7. 1991 ......... X X X X X X
8. 1992 ......... X X X X X X . . . . . . . . . . . .
9. 1993 ......... X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=========================================================================================
(1)
Years in Which (8) (9) (10) (11)
Premiums Were
Earned and 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------
<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>
118
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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 in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 ... N O N E . ........... ........... .........
5. 1989 ..... X X X X X X . ........... ........... .........
6. 1990 ..... X X X X X X . ........... ........... .........
7. 1991 ..... X X X X X X . ........... ........... .........
8. 1992 ..... X X X X X X . ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 ... N O N E . ........... ........... .........
5. 1989 ..... X X X X X X . ........... ........... .........
6. 1990 ..... X X X X X X . ........... ........... .........
7. 1991 ..... X X X X X X . ........... ........... .........
8. 1992 ..... X X X X X X . ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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. 1986 ..... ........... .......... ... . ........... ........... .........
3. 1987 ..... X X X .......... ... . ........... ........... .........
4. 1988 ..... X X X X X X ... N O N E . ........... ........... .........
5. 1989 ..... X X X X X X . ........... ........... .........
6. 1990 ..... X X X X X X . ........... ........... .........
7. 1991 ..... X X X X X X . ........... ........... .........
8. 1992 ..... X X X X X X . ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
119
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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 in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... ........... .......... .......... ..... 1,463 .... 1,463 ..... 1,463 ..... 1,463 ..... 1,463 ..... 1,466 ... 1,466
2. 1986 ..... ........... .......... .......... ....... 573 ...... 573 ....... 573 ....... 573 ....... 573 ....... 573 ..... 573
3. 1987 ..... X X X .......... .......... ....... 300 ...... 300 ....... 300 ....... 300 ....... 300 ....... 300 ..... 300
4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... .........
5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... .........
6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... .........
7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... .........
8. 1992 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ....... 2
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... ........... .......... .......... ........ 49 ....... 27 ........ 22 ........ 18 ........ 15 ........ 15 ...... 14
2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... .........
3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... .........
4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... .........
5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... .........
6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... .........
7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... .........
8. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ...... 29
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 X X X
2. 1986 ..... ........... .......... .......... ........574 ...... 574 ....... 574 ....... 574 ....... 574 ....... 574 ..... 574
3. 1987 ..... X X X .......... .......... ........300 .......300 ........300 ........300 ........300 ........300 ......300
4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... .........
5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... .........
6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... .........
7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... .........
8. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ...... 34
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
120
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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 in Which (2) (3) (4) (5) (6) (7) (8)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------------
<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 .... N O N E .
5. 1989 ......... X X X X X X .
6. 1990 ......... X X X X X X .
7. 1991 ......... X X X X X X .
8. 1992 ......... X X X X X X .
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================
(1)
--------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .........
- --------------------------------------------------------
</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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------------
<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 .... N O N E .
5. 1989 ......... X X X X X X .
6. 1990 ......... X X X X X X .
7. 1991 ......... X X X X X X .
8. 1992 ......... X X X X X X .
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================
(1)
--------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .........
- --------------------------------------------------------
</TABLE>
SECTION 3B
<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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... X X X X X X .... .
2. 1986 ......... ......... ......... .... .
3. 1987 ......... X X X ......... .... .
4. 1988 ......... X X X X X X .... N O N E .
5. 1989 ......... X X X X X X .
6. 1990 ......... X X X X X X .
7. 1991 ......... X X X X X X .
8. 1992 ......... X X X X X X .
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================
(1)
--------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
Incurred
- --------------------------------------------------------
<S> <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 ......... ......... ......... .........
8. 1992 ......... ......... ......... .........
9. 1993 ......... ......... ......... .........
10. 1994 ......... X X X ......... .........
11. 1995 ......... X X X X X X .........
- --------------------------------------------------------
</TABLE>
121
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 5R - OTHER LIABILITY - CLAIMS-MADE
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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------------
<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 N O N E .
6. 1990 ......... X X X X X X .
7. 1991 ......... X X X X X X .
8. 1992 ......... X X X X X X .
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================
(1)
--------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .........
- --------------------------------------------------------
</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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------------
<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 N O N E .
6. 1990 ......... X X X X X X .
7. 1991 ......... X X X X X X .
8. 1992 ......... X X X X X X .
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================
(1)
--------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .........
- --------------------------------------------------------
</TABLE>
SECTION 3A
<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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... X X X X X X .... .
2. 1986 ......... ......... ......... .... .
3. 1987 ......... X X X ......... .... .
4. 1988 ......... X X X X X X .... .
5. 1989 ......... X X X X X X N O N E .
6. 1990 ......... X X X X X X .
7. 1991 ......... X X X X X X .
8. 1992 ......... X X X X X X .
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
========================================================
(1)
--------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
Incurred
- --------------------------------------------------------
<S> <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 ......... ......... ......... .........
8. 1992 ......... ......... ......... .........
9. 1993 ......... ......... ......... .........
10. 1994 ......... X X X ......... .........
11. 1995 ......... X X X X X X .........
- --------------------------------------------------------
</TABLE>
122
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<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 N O N E .
6. 1990 ......... X X X X X X .
7. 1991 ......... X X X X X X .
8. 1992 ......... X X X X X X .
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==================================================================
(1)
-----------------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .........
- ------------------------------------------------------------------
</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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<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 .... N O N E .
5. 1989 ......... X X X X X X .
6. 1990 ......... X X X X X X .
7. 1991 ......... X X X X X X .
8. 1992 ......... X X X X X X .
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===================================================================
(1)
------------------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .........
- -------------------------------------------------------------------
</TABLE>
SECTION 3B
<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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... X X X X X X .... .
2. 1986 ......... ......... ......... .... .
3. 1987 ......... X X X ......... .... .
4. 1988 ......... X X X X X X .... .
5. 1989 ......... X X X X X X N O N E .
6. 1990 ......... X X X X X X .
7. 1991 ......... X X X X X X .
8. 1992 ......... X X X X X X .
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
===================================================================
(1)
------------------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
Incurred
- -------------------------------------------------------------------
<S> <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 ......... ......... ......... .........
8. 1992 ......... ......... ......... .........
9. 1993 ......... ......... ......... .........
10. 1994 ......... X X X ......... .........
11. 1995 ......... X X X X X X .........
- -------------------------------------------------------------------
</TABLE>
123
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... 0 0 0 ......... ......... ......... ......... ......... .........
2. 1986 ......... ......... ......... ......... ......... ......... ......... .........
3. 1987 ......... X X X ......... ......... ......... ......... ......... .........
4. 1988 ......... X X X X X X ......... ......... ......... ......... .........
5. 1989 ......... X X X X X X X X X ......... ......... ......... .........
6. 1990 ......... X X X X X X X X X X X X ......... ......... .........
7. 1991 ......... X X X X X X X X X X X X X X X ......... .........
8. 1992 ......... X X X X X X X X X X X X X X X X X X .........
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=====================================================================
(1)
--------------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 ......189
- ---------------------------------------------------------------------
</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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... 0 0 0 ......... ......... ......... ......... ......... .........
2. 1986 ......... ......... ......... ......... ......... ......... ......... .........
3. 1987 ......... X X X ......... ......... ......... ......... ......... .........
4. 1988 ......... X X X X X X ......... ......... ......... ......... .........
5. 1989 ......... X X X X X X X X X ......... ......... ......... .........
6. 1990 ......... X X X X X X X X X X X X ......... ......... .........
7. 1991 ......... X X X X X X X X X X X X X X X ......... .........
8. 1992 ......... X X X X X X X X X X X X X X X X X X .........
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==================================================================
(1)
----------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 .......25
- ------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... 0 0 0 ......... ......... ......... ......... ......... .........
2. 1986 ......... ......... ......... ......... ......... ......... ......... .........
3. 1987 ......... X X X ......... ......... ......... ......... ......... .........
4. 1988 ......... X X X X X X ......... ......... ......... ......... .........
5. 1989 ......... X X X X X X X X X ......... ......... ......... .........
6. 1990 ......... X X X X X X X X X X X X ......... ......... .........
7. 1991 ......... X X X X X X X X X X X X X X X ......... .........
8. 1992 ......... X X X X X X X X X X X X X X X X X X .........
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=====================================================================
(1)
----------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 ........6
- ---------------------------------------------------------------------
</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)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992
Losses Were
Incurred
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ......... 0 0 0 ......... ......... ......... ......... ......... .........
2. 1986 ......... ......... ......... ......... ......... ......... ......... .........
3. 1987 ......... X X X ......... ......... ......... ......... ......... .........
4. 1988 ......... X X X X X X ......... ......... ......... ......... .........
5. 1989 ......... X X X X X X X X X ......... ......... ......... .........
6. 1990 ......... X X X X X X X X X X X X ......... ......... .........
7. 1991 ......... X X X X X X X X X X X X X X X ......... .........
8. 1992 ......... X X X X X X X X X X X X X X X X X X .........
9. 1993 ......... X X X X X X X X X X X X X X X X X X X X X
10. 1994 ......... X X X X X X X X X X X X X X X X X X X X X
11. 1995 ......... X X X X X X X X X X X X X X X X X X X X X
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
=====================================================================
(1)
----------------------------------------
Years in Which (9) (10) (11)
Premiums Were
Earned and 1993 1994 1995
Losses Were
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 ........1
- ---------------------------------------------------------------------
</TABLE>
124
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... .......... ........... .......... ........... ........... ........... ........... .........
2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... .........
3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... .........
4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... .........
5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... .........
6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... .........
7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... .........
8. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ..... 1,639 ..... 1,639 ... 1,639
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ..... 3,792 ... 3,792
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ... 6,766
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... .......... ........... .......... ........... ........... ........... ........... .........
2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... .........
3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... .........
4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... .........
5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... .........
6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... .........
7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... .........
8. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ..... 1,209 ..... 1,209 ... 1,209
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ..... 2,898 ... 2,898
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ... 4,790
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... .......... ........... .......... ........... ........... ........... ........... .........
2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... .........
3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... .........
4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... .........
5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... .........
6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... .........
7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... .........
8. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ... 1,848
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... .......... ........... .......... ........... ........... ........... ........... .........
2. 1986 ..... ........... .......... .......... ........... .......... ........... ........... ........... ........... .........
3. 1987 ..... X X X .......... .......... ........... .......... ........... ........... ........... ........... .........
4. 1988 ..... X X X X X X .......... ........... .......... ........... ........... ........... ........... .........
5. 1989 ..... X X X X X X X X X ........... .......... ........... ........... ........... ........... .........
6. 1990 ..... X X X X X X X X X X X X .......... ........... ........... ........... ........... .........
7. 1991 ..... X X X X X X X X X X X X X X X ........... ........... ........... ........... .........
8. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ... 1,449
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
125
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS-MADE
SECTION 1B
<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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... ... .. ........... ........... .........
2. 1986 ..... ........... .......... ... .. ........... ........... .........
3. 1987 ..... X X X .......... ... .. ........... ........... .........
4. 1988 ..... X X X X X X ... N O N E .. ........... ........... .........
5. 1989 ..... X X X X X X .. ........... ........... .........
6. 1990 ..... X X X X X X .. ........... ........... .........
7. 1991 ..... X X X X X X .. ........... ........... .........
8. 1992 ..... X X X X X X .. ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
===================================================================================================================================
(1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED )
- -----------------------------------------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... ... .. ........... ........... .........
2. 1986 ..... ........... .......... ... .. ........... ........... .........
3. 1987 ..... X X X .......... ... .. ........... ........... .........
4. 1988 ..... X X X X X X ... N O N E .. ........... ........... .........
5. 1989 ..... X X X X X X .. ........... ........... .........
6. 1990 ..... X X X X X X .. ........... ........... .........
7. 1991 ..... X X X X X X .. ........... ........... .........
8. 1992 ..... X X X X X X .. ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 6M - INTERNATIONAL
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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... ... .. ........... ........... .........
2. 1986 ..... ........... .......... ... .. ........... ........... .........
3. 1987 ..... X X X .......... ... .. ........... ........... .........
4. 1988 ..... X X X X X X ... N O N E .. ........... ........... .........
5. 1989 ..... X X X X X X .. ........... ........... .........
6. 1990 ..... X X X X X X .. ........... ........... .........
7. 1991 ..... X X X X X X .. ........... ........... .........
8. 1992 ..... X X X X X X .. ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... ... .. ........... ........... .........
2. 1986 ..... ........... .......... ... .. ........... ........... .........
3. 1987 ..... X X X .......... ... .. ........... ........... .........
4. 1988 ..... X X X X X X ... N O N E .. ........... ........... .........
5. 1989 ..... X X X X X X .. ........... ........... .........
6. 1990 ..... X X X X X X .. ........... ........... .........
7. 1991 ..... X X X X X X .. ........... ........... .........
8. 1992 ..... X X X X X X .. ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
126
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 6N - REINSURANCE A
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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 X X X ........... ........... ........... ........... .........
5. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
6. 1993 ..... X X X X X X X X X X X X X X X X X X X X X .... 10,093 .... 10,093 .. 10,093
7. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X .... 13,688 .. 13,688
8. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .. 20,154
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 X X X ........... ........... ........... ........... .........
5. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
6. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ..... 4,196 ..... 4,196 ... 4,196
7. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ..... 7,127 ... 7,127
8. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ... 8,540
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 6O - REINSURANCE B
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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 X X X ........... ........... ........... ........... .........
5. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
6. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ..... 7,397 ..... 7,397 ... 7,397
7. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X .... 10,578 .. 10,578
8. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .. 18,887
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 X X X ........... ........... ........... ........... .........
5. 1992 ..... X X X X X X X X X X X X X X X X X X ........... ........... ........... .........
6. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ..... 1,811 ..... 1,811 ... 1,811
7. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ..... 2,399 ... 2,399
8. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X ... 4,758
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
127
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 6R - PRODUCTS 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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... ... . ........... ........... .........
2. 1986 ..... ........... .......... ... . ........... ........... .........
3. 1987 ..... X X X .......... ... . ........... ........... .........
4. 1988 ..... X X X X X X ... N O N E . ........... ........... .........
5. 1989 ..... X X X X X X . ........... ........... .........
6. 1990 ..... X X X X X X . ........... ........... .........
7. 1991 ..... X X X X X X . ........... ........... .........
8. 1992 ..... X X X X X X . ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... ... . ........... ........... .........
2. 1986 ..... ........... .......... ... . ........... ........... .........
3. 1987 ..... X X X .......... ... . ........... ........... .........
4. 1988 ..... X X X X X X ... N O N E . ........... ........... .........
5. 1989 ..... X X X X X X . ........... ........... .........
6. 1990 ..... X X X X X X . ........... ........... .........
7. 1991 ..... X X X X X X . ........... ........... .........
8. 1992 ..... X X X X X X . ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS-MADE
SECTION 1B
<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) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... ... . ........... ........... .........
2. 1986 ..... ........... .......... ... . ........... ........... .........
3. 1987 ..... X X X .......... ... . ........... ........... .........
4. 1988 ..... X X X X X X ... N O N E . ........... ........... .........
5. 1989 ..... X X X X X X . ........... ........... .........
6. 1990 ..... X X X X X X . ........... ........... .........
7. 1991 ..... X X X X X X . ........... ........... .........
8. 1992 ..... X X X X X X . ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
===================================================================================================================================
(1) CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED )
- -----------------------------------------------------------------------------------------------------------------------------------
Years in Which (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Premiums Were
Earned and 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Losses Were
Incurred
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ..... O O O .......... ... . ........... ........... .........
2. 1986 ..... ........... .......... ... . ........... ........... .........
3. 1987 ..... X X X .......... ... . ........... ........... .........
4. 1988 ..... X X X X X X ... N O N E . ........... ........... .........
5. 1989 ..... X X X X X X . ........... ........... .........
6. 1990 ..... X X X X X X . ........... ........... .........
7. 1991 ..... X X X X X X . ........... ........... .........
8. 1992 ..... X X X X X X . ........... ........... .........
9. 1993 ..... X X X X X X X X X X X X X X X X X X X X X ........... ........... .........
10. 1994 ..... X X X X X X X X X X X X X X X X X X X X X X X X ........... .........
11. 1995 ..... X X X X X X X X X X X X X X X X X X X X X X X X X X X .........
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
128
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
($000 OMITTED)
SECTION 1
<TABLE>
<CAPTION>
==============================================================================================================================
(1) (2) (3) (4) (5) (6) (7)
Net Losses
and Net
Expenses Loss Premiums Loss
Total Net Unpaid On Sensitive Written On Sensitive
Losses and Loss as Total Net Loss as
Expenses Sensitive Percentage Premiums Sensitive Percentage
Schedule P - Part 1 Unpaid Contracts of Total Written Contracts of Total
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Homeowners/Farmowners ................ ........ 104 ............ ............ ........ 398 ............ ............
2. Private Passenger Auto Liab./Medical . ............ ............ ............ ............ ............ ............
3. Commercial Auto/Truck Liab./Medical .. ........ 105 ............ ............ ........ 521 ............ ............
4. Workers' Compensation ................ .......... 2 ............ ............ ......... 11 ............ ............
5. Commercial Multiple Peril ............ ...... 1,115 ............ ............ ...... 2,137 ............ ............
6. Medical Malpractice - Occurrence ..... ............ ............ ............ ............ ............ ............
7. Medical Malpractice - Claims - made .. ............ ............ ............ ............ ............ ............
8. Special Liability .................... ............ ............ ............ ............ ............ ............
9. Other Liability - Occurrence ......... ........ 506 ............ ............ ........ 955 ............ ............
10. Other Liabilities - Claims - made .... ............ ............ ............ ............ ............ ............
11. Special Property ..................... ........ 528 ............ ............ ...... 2,167 ............ ............
12. Auto Physical Damage ................. ........ 230 ............ ............ ...... 1,105 ............ ............
13. Fidelity/Surety ...................... .......... 3 ............ ............ ......... 11 ............ ............
14. Other ................................ ..... 17,946 ............ ............ ..... 81,546 ............ ............
15. International ........................ ............ ............ ............ ............ ............ ............
16. Reinsurance A ........................ XXX XXX XXX XXX XXX XXX
17. Reinsurance B ........................ XXX XXX XXX XXX XXX XXX
18. Reinsurance C ........................ XXX XXX XXX XXX XXX XXX
19. Reinsurance D ........................ XXX XXX XXX XXX XXX XXX
20. Products Liability - Occurrence ...... ............ ............ ............ ............ ............ ............
21. Products Liability - Claims - made ... ............ ............ ............ ............ ............ ............
22. Financial Guaranty/Mortgage Guaranty . ............ ............ ............ ............ ............ ............
------------------------------------------------------------------------------------------------------------------------------
23. Totals ............................... ..... 20,539 ............ ............ ..... 88,851 ............ ............
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
============================================================================================================================
(1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
Years in Which ----------------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7) (8)
Issued
1986 1987 1988 1989 1990 1991 1992
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .............. .............. ..
2. 1986 ........ .............. .............. .. ...
3. 1987 ........ XXX .............. .. ...
4. 1988 ........ XXX XXX .. ...
5. 1989 ........ XXX XXX N O N E ...
6. 1990 ........ XXX XXX ...
7. 1991 ........ XXX XXX ...
8. 1992 ........ XXX XXX ...
9. 1993 ........ XXX XXX ... ... ... ... ...
10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX
11. 1995 ........ XXX XXX XXX XXX XXX XXX XXX
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================
(1)
Years in Which ----------------------------------------------
Policies Were (9) (10) (11)
Issued
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 ........ XXX .............. ..............
11. 1995 ........ XXX XXX ..............
- ----------------------------------------------------------------
</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 ----------------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7) (8)
Issued
1986 1987 1988 1989 1990 1991 1992
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .............. .............. .. ...
2. 1986 ........ .............. .............. .. ...
3. 1987 ........ XXX .............. .. ...
4. 1988 ........ XXX XXX .. ...
5. 1989 ........ XXX XXX N O N E ...
6. 1990 ........ XXX XXX ...
7. 1991 ........ XXX XXX ...
8. 1992 ........ XXX XXX ...
9. 1993 ........ XXX XXX XXX XXX XXX XXX XXX
10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX
11. 1995 ........ XXX XXX XXX XXX XXX XXX XXX
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================
(1)
Years in Which ----------------------------------------------
Policies Were (9) (10) (11)
Issued
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 ........ XXX .............. ..............
11. 1995 ........ XXX XXX ..............
- ----------------------------------------------------------------
</TABLE>
129
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
(continued)
SECTION 4
<TABLE>
<CAPTION>
============================================================================================================================
(1) NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED)
Years in Which ----------------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7) (8)
Issued
1986 1987 1988 1989 1990 1991 1992
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .............. .............. . ....
2. 1986 ........ .............. .............. . ....
3. 1987 ........ XXX .............. . ....
4. 1988 ........ XXX XXX . ....
5. 1989 ........ XXX XXX N O N E ....
6. 1990 ........ XXX XXX ....
7. 1991 ........ XXX XXX ....
8. 1992 ........ XXX XXX ....
9. 1993 ........ XXX XXX
10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX
11. 1995 ........ XXX XXX XXX XXX XXX XXX XXX
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================
(1)
Years in Which ----------------------------------------------
Policies Were (9) (10) (11)
Issued
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 ........ XXX .............. ..............
11. 1995 ........ XXX XXX ..............
- ----------------------------------------------------------------
</TABLE>
SECTION 5
<TABLE>
<CAPTION>
============================================================================================================================
(1) NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITTED)
Years in Which ----------------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7) (8)
Issued
1986 1987 1988 1989 1990 1991 1992
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... .............. .............. . .....
2. 1986 ........ .............. .............. . .....
3. 1987 ........ XXX .............. . .....
4. 1988 ........ XXX XXX . .....
5. 1989 ........ XXX XXX N O N E .....
6. 1990 ........ XXX XXX .....
7. 1991 ........ XXX XXX .....
8. 1992 ........ XXX XXX .....
9. 1993 ........ XXX XXX
10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX
11. 1995 ........ XXX XXX XXX XXX XXX XXX XXX
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================
(1)
Years in Which ----------------------------------------------
Policies Were (9) (10) (11)
Issued
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 ........ XXX .............. ..............
11. 1995 ........ XXX XXX ..............
- ----------------------------------------------------------------
</TABLE>
130
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
($000 Omitted)
SECTION 1
<TABLE>
============================================================================================================
(1) (2) (3) (4)
Net Losses
and
Expenses Loss
Total Net Unpaid On Sensitive
Losses and Loss as
Expenses Sensitive Percentage
Schedule P - Part 1 Unpaid Contracts of Total
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Homeowners/Farmowners ..................... .............. 104 .................... ...................
2. Private Passenger Auto Liab./Medical ...... .................. .................... ...................
3. Commercial Auto/Truck Liab./Medical ....... .............. 105 .................... ...................
4. Workers' Compensation ..................... ................ 2 .................... ...................
5. Commercial Multiple Peril ................. ............ 1,115 .................... ...................
6. Medical Malpractice - Occurrence .......... .................. .................... ...................
7. Medical Malpractice - Claims - made ....... .................. .................... ...................
8. Special Liability ......................... .................. .................... ...................
9. Other Liability - Occurrence .............. .............. 506 .................... ...................
10. Other Liabilities - Claims - made ......... .................. .................... ...................
11. Special Property .......................... .............. 528 .................... ...................
12. Auto Physical Damage ..................... .............. 230 .................... ...................
13. Fidelity/Surety ........................... ................ 3 .................... ...................
14. Other ..................................... ........... 17,947 .................... ...................
15. International ............................. .................. .................... ...................
16. Reinsurance A ............................. ............ 9,859 .................... ...................
17. Reinsurance B ............................. ........... 31,970 .................... ...................
18. Reinsurance C ............................. .................. .................... ...................
19. Reinsurance D ............................. ............... 51 .................... ...................
20. Products Liability - Occurrence ........... .................. .................... ...................
21. Products Liability - Claims - made ........ .................. .................... ...................
22. Financial Guaranty/Mortgage Guaranty ...... .................. .................... ...................
------------------------------------------------------------------------------------------------------------
23. Totals ................................ ............62,420 .................... ...................
------------------------------------------------------------------------------------------------------------
<CAPTION>
============================================================================================
(1) (5) (6) (7)
Net
Premiums Loss
Written On sensitive
Total Net Loss as
Premiums Sensitive Percentage
Schedule P - Part 1 Written Contracts of Total
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Homeowners/Farmowners ..................... ......... 398 ............. .............
2. Private Passenger Auto Liab./Medical ...... ............. ............. .............
3. Commercial Auto/Truck Liab./Medical ....... ......... 521 ............. .............
4. Workers' Compensation ..................... .......... 11 ............. .............
5. Commercial Multiple Peril ................. ....... 2,136 ............. .............
6. Medical Malpractice - Occurrence .......... ............. ............. .............
7. Medical Malpractice - Claims - made ....... ............. ............. .............
8. Special Liability ......................... ............. ............. .............
9. Other Liability - Occurrence .............. ......... 955 ............. .............
10. Other Liabilities - Claims - made ......... ............. ............. .............
11. Special Property .......................... ....... 2,168 ............. .............
12. Auto Physical Damage ..................... ....... 1,105 ............. .............
13. Fidelity/Surety ........................... .......... 11 ............. .............
14. Other ..................................... .......81,547 ............. .............
15. International ............................. ............. ............. .............
16. Reinsurance A ............................. ...... 13,152 ............. .............
17. Reinsurance B ............................. .......14,892 ............. .............
18. Reinsurance C ............................. ............. ............. .............
19. Reinsurance D ............................. XXX XXX XXX
20. Products Liability - Occurrence ........... ............. ............. .............
21. Products Liability - Claims - made ........ ............. ............. .............
22. Financial Guaranty/Mortgage Guaranty ...... ............. ............. .............
--------------------------------------------------------------------------------------------
23. Totals ................................ ..... 116,896 ............. .............
--------------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
(1) INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
Years in Which -------------------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7) (8)
Issued
1986 1987 1988 1989 1990 1991 1991
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....... ................ ................ ... ....
2. 1986 ........ ................ ................ ... ....
3. 1987 ........ XXX ................ ... ....
4. 1988 ........ XXX XXX ... ....
5. 1989 ........ XXX XXX N O N E ....
6. 1990 ........ XXX XXX ....
7. 1991 ........ XXX XXX ....
8. 1992 ........ XXX XXX ....
9. 1993 ........ XXX XXX
10. 1994 ........ XXX XXX XXX XXX XXX XXX XXX
11. 1995......... XXX XXX XXX XXX XXX XXX XXX
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------
(1)
Years in Which --------------------------------------------------
Policies Were (9) (10) (11)
Issued
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 ........ XXX ................ ................
11. 1995......... XXX XXX ................
- ---------------------------------------------------------------------
</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 ------------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7)
Issued
1986 1987 1988 1989 1990 1991
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ....... ................ ................ ...
2. 1986 ........ ................ ................ ...
3. 1987 ........ XXX ................ ...
4. 1988 ........ XXX XXX ...
5. 1989 ........ XXX XXX N O N E
6. 1990 ........ XXX XXX
7. 1991 ........ XXX XXX
8. 1992 ........ XXX XXX
9. 1993 ........ XXX XXX
10. 1994 ........ XXX XXX XXX XXX XXX XXX
11. 1995......... XXX XXX XXX XXX XXX XXX
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------
(1)
Years in Which --------------------------------------------------------------------
Policies Were (8) (9) (10) (11)
Issued
1992 1993 1994 1995
- -----------------------------------------------------------------------------------------
<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 ........ XXX XXX ................ .................
11. 1995......... XXX XXX XXX .................
- -----------------------------------------------------------------------------------------
</TABLE>
131
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
(continued)
SECTION 4
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
(1) NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED)
Years in Which -----------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7)
Issued
1986 1987 1988 1989 1990 1991
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ ................ ................ .
2. 1986 ......... ................ ................ .
3. 1987 ......... XXX ................ .
4. 1988 ......... XXX XXX .
5. 1989 ......... XXX XXX N O N E
6. 1990 ......... XXX XXX
7. 1991 ......... XXX XXX
8. 1992 ......... XXX XXX
9. 1993 ......... XXX XXX
10. 1994 ......... XXX XXX XXX XXX XXX XXX
11. 1995.......... XXX XXX XXX XXX XXX XXX
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------
(1)
Years in Which -------------------------------------------------------------------
Policies Were (8) (9) (10) (11)
Issued
1992 1993 1994 1995
- ------------------------------------ ---------------- ---------------- ----------------
<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 ......... XXX XXX ................ ................
11. 1995.......... XXX XXX XXX ................
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 5
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
(1) NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITTED)
Years in Which -----------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7)
Issued
1986 1987 1988 1989 1990 1991
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ ................ ................ .
2. 1986 ......... ................ ................ .
3. 1987 ......... XXX ................ .
4. 1988 ......... XXX XXX .
5. 1989 ......... XXX XXX N O N E
6. 1990 ......... XXX XXX
7. 1991 ......... XXX XXX
8. 1992 ......... XXX XXX
9. 1993 ......... XXX XXX
10. 1994 ......... XXX XXX XXX XXX XXX XXX
11. 1995.......... XXX XXX XXX XXX XXX XXX
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
(1)
Years in Which -------------------------------------------------------------------
Policies Were (8) (9) (10) (11)
Issued
1992 1993 1994 1995
- ------------------------------------ ---------------- ---------------- ----------------
<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 ......... XXX XXX ................ ................
11. 1995.......... XXX XXX XXX ................
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 6
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
(1) INCURRED ADJUSTABLE COMMISSIONS REPORTED AT YEAR END ($000 OMITTED)
Years in Which -----------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7)
Issued
1986 1987 1988 1989 1990 1991
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ ................ ................ .
2. 1986 ......... ................ ................ .
3. 1987 ......... XXX ................ .
4. 1988 ......... XXX XXX .
5. 1989 ......... XXX XXX N O N E
6. 1990 ......... XXX XXX
7. 1991 ......... XXX XXX
8. 1992 ......... XXX XXX
9. 1993 ......... XXX XXX
10. 1994 ......... XXX XXX XXX XXX XXX XXX
11. 1995.......... XXX XXX XXX XXX XXX XXX
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------
(1)
Years in Which -------------------------------------------------------------------
Policies Were (8) (9) (10) (11)
Issued
1992 1993 1994 1995
- ------------------------------------ ---------------- ---------------- ----------------
<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 ......... XXX XXX ................ ................
11. 1995.......... XXX XXX XXX ................
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 7
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
(1) NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED)
Years in Which -----------------------------------------------------------------------------------------------------
Policies Were (2) (3) (4) (5) (6) (7)
Issued
1986 1987 1988 1989 1990 1991
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........ ................ ................ .
2. 1986 ......... ................ ................ .
3. 1987 ......... XXX ................ .
4. 1988 ......... XXX XXX .
5. 1989 ......... XXX XXX N O N E
6. 1990 ......... XXX XXX
7. 1991 ......... XXX XXX
8. 1992 ......... XXX XXX
9. 1993 ......... XXX XXX
10. 1994 ......... XXX XXX XXX XXX XXX XXX
11. 1995.......... XXX XXX XXX XXX XXX XXX
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------
(1)
Years in Which -------------------------------------------------------------------
Policies Were (8) (9) (10) (11)
Issued
1992 1993 1994 1995
- ------------------------------------ ---------------- ---------------- ----------------
<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 ......... XXX XXX ................ ................
11. 1995.......... XXX XXX XXX ................
- ---------------------------------------------------------------------------------------
</TABLE>
132
<PAGE>
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE USF RE INSURANCE COMPANY COMBINED
SCHEDULE P INTERROGATORIES
1. Computation of excess statutory reserves over statement reserves.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
a. Auto Liability (private passenger and commercial)
1995 $ ( %) 1994 $ ( %) 1993 $ ( %) Total $
b. Other Liability and Products Liability
1995 $ ( %) 1994 $ ( %) 1993 $ ( %) Total $
c. Medical Malpractice
1995 $ ( %) 1994 $ ( %) 1993 $ ( %) Total $
d. Workers' Compensation
1995 $ ( %) 1994 $ ( %) 1993 $ ( %) Total $
e. Credit Total $
f. All Lines Total (Report here and Page 3) Total $
</TABLE>
2. What is the extended loss and expense reserve - direct and assumed - for the
following classes? An example of an extended loss and expense reserve is the
actuarial reserve for the free-tail coverage arising upon death, disability
or retirement in most medical malpractice policies. Such a liability is to be
reported here even if it was not reported elsewhere in Schedule P, but
otherwise reported as a liability item on Page 3. Show the full reserve
amount, not just the change during the current year.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Years in which premiums were (1) (2) (3)
earned and losses were incurred Medical Malpractice Other Liability Products Liability
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
a. 1987 ...........................
b. 1988 ...........................
c. 1989 ...........................
d. 1990 ...........................
e. 1991 ...........................
f. 1992 ...........................
g. 1993 ...........................
h. 1994 ...........................
i. 1995 ...........................
j. TOTALS
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
3. The term "Loss expense" includes all payments for legal expenses, including
attorney's and witness fees and court costs, salaries and expenses of
investigators, adjustors and field men, rents, stationery, telegraph and
telephone charges, postage, salaries and expenses of office employees, home
office expenses and all other payments under or on account of such injuries,
whether the payments are allocated to specific claims or are unallocated. Are
they so reported in this statement? Answer: Yes ( ) No ( )
4. The unallocated loss expense payments paid during the most recent calendar
year should be distributed to the various years in which losses were incurred
as follows: (1) 45% to the most recent year, (2) 5% to the next most recent
year, and (3) the balance to all years, including the most recent, in
proportion to the amount of loss payments paid for each year during the most
recent calendar year. If the distribution in (1) or (2) produces an
accumulated distribution to such year in excess of 10% of the premiums earned
for such year, disregarding all distributions made under (3), such
accumulated distribution should be limited to 10% of premiums earned and the
balance distributed in accordance with (3). Are they so reported in this
statement? Answer: Yes ( ) No ( )
5. Do any lines in Schedule P include reserves which are reported gross of any
discount to present value of future payments, but are reported net of such
discounts on Page 11? Yes ( ) No ( )
If yes, proper reporting must be made in the Notes to Financial Statements,
as specified in the Instructions. Also, the discounts must be reported in
Schedule P - Part 1, Columns 31 and 32. Schedule P must be completed gross of
non-tabular discounting. Work papers relating to discount calculations must
be available for examination upon request.
Discounting is allowed only if expressly permitted by the state insurance
department to which this Annual Statement is being filed.
6. What were the net premiums in force at the end of the year for: (in thousands
of dollars)
a. Fidelity $
b. Surety $
7. Claim count information is reported (check one): a. per claim ( )
b. per claimant ( )
If not the same in all years, explain in Question 8.
8. The information provided in Schedule P will be used by many persons to
estimate the adequacy of the current loss and expense reserves, among other
things. Are there any especially significant events, coverage, retention or
accounting changes which have occurred which must be considered when making
such analyses? (An extended statement may be attached.)
133
